COMBATING

TERRORISM

FBI’s Use of Federal

Funds for

CounterterrorismRelated Activities

(FYs 1995-98)

United States General Accounting Office

GAO Report to the Chairman, Subcommittee

on Administrative Oversight and the

Courts, Committee on the Judiciary,

U.S. Senate

November 1998

GAO-GGD-99-7

United States

General Accounting Office

Washington, D.C. 20548

General Government Division

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Page 1 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

GAO

November 20, 1998

The Honorable Charles E. Grassley

Chairman, Subcommittee on Administrative

Oversight and the Courts

Committee on the Judiciary

United States Senate

Dear Mr. Chairman:

Since fiscal year 1995, in the wake of the bombings of a federal building in

Oklahoma City, the World Trade Center in New York City, and a U.S.

military facility in Saudi Arabia, Congress has provided increased federal

funding to help federal law enforcement officials fight terrorism.1

 From

fiscal years 1995 to 1998, the Federal Bureau of Investigation’s (FBI)

resources to carry out its roles as the lead agency for combating domestic

terrorism and a key support agency for combating international terrorism

have substantially increased. As agreed with your office, we focused on

determining the amount of funds that the FBI allocated and obligated for

fiscal years 1995 through 1998 (as of July 31, 1998), and plans for fiscal

year 1999 for domestic and international counterterrorism activities. We

also determined what methodology the FBI used to identify its overall

counterterrorism funding, including funds for classified activities. This

report, however, does not discuss the specifics of the FBI’s classified

counterterrorism activities.

The specific amount of funds allocated2

 and obligations incurred3 by the

FBI for counterterrorism is difficult to determine with precision because

(1) the FBI’s appropriation language had not specifically identified a

separate or total amount available to the FBI for counterterrorism and, for

 

1

As stated in our report Combating Terrorism: Federal Agencies’ Efforts to Implement National Policy

and Strategy (GAO/NSIAD-97-254, Sept. 26, 1997), federal agencies define “terrorism” differently and

use different terms to describe their programs and activities for combating terrorism. The FBI defines

terrorism as an unlawful act or threat of force or violence, committed by a group of two or more

individuals against persons or property to intimidate or coerce a government, the civilian population,

or any segment thereof, in furtherance of political or social objectives. The FBI uses

“counterterrorism” to refer to its full range of activities directed against terrorism, including preventive

and crisis management efforts.

2

As used in this report, “funds allocated” for fiscal years 1995 through 1998 refer to the amount of funds

determined by FBI officials to have been associated with various counterterrorism programs and

resources distributed among the FBI components.

3

Obligations incurred refer to the amounts of orders placed, contracts awarded, services received, and

similar transactions during a given period that will require payments during the same or a future

period.

Results in Brief
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most years, only established a minimum that must be spent on

counterterrorism-related activities, foreign intelligence, and national

security; (2) some of the funds provided to the FBI were allocated to

functions, such as training and forensic services, that support multiple FBI

missions, including counterterrorism; and (3) the FBI had not been

specifically required to identify or account separately for total funds used

for counterterrorism-related activities. However, the FBI has generally

tracked the obligation of funds allocated for counterterrorism based on

statutory direction or congressional guidance.

Moreover, in response to an Office of Management and Budget (OMB) data

request, which was implementing a statutory requirement,4

 the FBI began,

in fiscal year 1998, to estimate the amount of overall funds budgeted and

used to carry out its counterterrorism mission. Also, the Department of

Justice (DOJ) and the FBI took steps to link the allocation of budget

resources to annual and strategic plans, including linkages to specific

counterterrorism-related performance measures established for fiscal

years 1998 and 1999. In addition, DOJ and the FBI are planning to develop

a methodology to implement established federal managerial cost

accounting standards that, among other things, require federal agencies on

a regular basis to report the full cost of their activities.

Although the specific amount of funds allocated and obligated to

counterterrorism activities is difficult to determine with precision, our

review of financial accounting and budget data provided by the FBI,

including data derived by using a process similar to the one used to report

budget data to OMB, as well as related data obtained from DOJ, OMB, and

congressional source documents, permitted an estimate to be made. That

estimate showed that from fiscal years 1995 to 1998, the FBI more than

doubled its allocation of resources for combating terrorism, increasing

from about $256 million in fiscal year 1995 to about $581 million in fiscal

year 1998. In total, from fiscal years 1995 to 1998 (as of July 31, 1998), the

FBI had allocated an estimated $1.66 billion of its available funds5

 to carry 

4

Section 1051 of the National Defense Authorization Act for Fiscal Year 1998, P.L. 105-85, 111 Stat.

1629, 1889, required OMB to establish a reporting system for executive agencies on the budgeting and

expenditure of funds to combat terrorism. The act also required OMB to collect annual

governmentwide budget and expenditure data on counterterrorism. For more information on this

issue, see our report Combating Terrorism: Spending on Governmentwide Programs Requires Better

Management and Coordination (GAO/NSIAD-98-39, Dec. 1, 1997).

5

During this period, the FBI received about $11 billion in direct appropriations and other funding to

carry out its investigative mission and activities. This figure includes funding reimbursements made

available from the Attorney General’s Counterterrorism Fund, which is explained later. For fiscal year

1999, the FBI received an appropriation of about $3 billion to carry out its investigative mission and

activities. The Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999, P.L. 105-

277 (October 21, 1998).
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out its counterterrorism mission. The FBI expects to allocate about $609

million for its counterterrorism mission in fiscal year 1999, which includes

no-year funds carried forward from prior fiscal years.

As of July 31, 1998, our review of the FBI’s financial data showed that it

had incurred obligations of about $1.52 billion of the approximate $1.66

billion in funds allocated for counterterrorism mission-related activities,

since fiscal year 1995. Over one-half of the funds were obligated for

counterterrorism-related law enforcement and investigative activities. The

remaining funds were used in support of other counterterrorism activities,

including efforts to prepare for and respond to terrorist acts and to protect

the national infrastructure.

The FBI and DOJ have efforts under way to better identify resources used

by the FBI for counterterrorism-related activities. These include efforts to

(1) specifically track certain counterterrorism funds; (2) calculate the

overall amount of funds associated with counterterrorism-related

activities, including shared costs; and (3) link the allocation of budget

resources to annual and strategic plans, including specific

counterterrorism-related performance measures. In addition, the FBI and

DOJ are planning to develop a methodology for reporting full cost of

program activities in compliance with established managerial cost

accounting standards.

The government’s policy on combating terrorism has four major purposes.

These are to

• reduce the vulnerabilities of the United States to terrorism;

• prevent and deter terrorist acts before they occur;

• respond to terrorist acts that do occur, including apprehension and

punishment of terrorists and management of the consequence of terrorist

acts;6

 and

• develop effective capabilities to address the threat posed by nuclear,

chemical, or biological materials or weapons.

In June 1995, Presidential Decision Directive (PDD) 39 designated DOJ,

working through the FBI, as the lead agency responsible for responding to

 6

The federal government has responsibility for supporting state and local governments in managing the

consequences of domestic incidents and similarly assisting foreign governments in international

incidents.

Background
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domestic terrorist incidents.7 In 1996, Congress passed the Anti-Terrorism

and Effective Death Penalty Act (P.L. 104-132), which, among other things,

authorized additional funding for the FBI to conduct counterterrorism

activities. In May 1998, PDD 62 and 63 expanded upon the policy

enunciated in PDD 39, including the FBI’s role and responsibilities. PDD

62, among other things, articulated national policy to enhance the nation’s

capability to prevent and more effectively respond to terrorist events

involving weapons of mass destruction, whereas PDD 63 focuses on policy

aimed at enhancing the nation’s capability to protect the continuity and

viability of critical infrastructures.8

 Together, the two new Presidential

Directives divided combating terrorism into 10 areas: apprehension and

prosecution, disruptions abroad, international cooperation, preventing

weapons acquisition, crisis management, transportation security, critical

infrastructure, government continuity, countering foreign threats

domestically, and protection of Americans abroad.

As a principal investigative agency of the federal government for terrorism

matters, the FBI is to detect and investigate acts of terrorism against U.S.

persons and property, both in the United States and abroad. The FBI’s

investigative authority is broad. Its counterterrorism investigations have

included bombings or attempted bombings, hostage-takings, homicides or

attempted homicides of U.S. citizens overseas, sabotage, and extortion by

threatening to use weapons of mass destruction. These investigations may

begin as terrorism-related investigations, but may or may not end up being

categorized as counterterrorism cases or incidents.

FBI counterterrorism programs and activities may also include, among

other things, preventive and crisis management efforts; training and

preparedness exercises; forensic and other support functions, such as

hazardous material response, research and development projects; and

leadership of joint terrorism task forces and participation in interagency

working groups. Appendix II provides an overview of the FBI’s

unclassified counterterrorism activities and programs.

FBI funding is provided annually in the Departments of Commerce,

Justice, and State, the Judiciary, and Related Agencies Appropriations

 

7

The State Department has lead responsibility for combating international terrorism against Americans

or U.S. interests overseas. Depending on the nature of the threat or incident, numerous other agencies,

including the FBI, may be called upon to provide support as needed.

8

PDD 63 defines critical infrastructures as those physical and cyber-based systems that are so vital that

their incapacity or destruction would have a traumatic or debilitating impact on the United States.

These systems generally include electrical power, gas and oil, telecommunications, banking and

finance, transportation, vital government operations, emergency services, and water supply systems.
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Acts. The appropriation generally includes some specific requirements and

directions on the use of funds and, in some instances, specific funding for

a particular purpose. Most of the FBI’s funds are available for 1 year in its

salaries and expenses account and are not earmarked9

 for specific

investigative programs or purposes. During the years we examined, the

FBI also received some “no-year” funds, i.e., funds available until

expended. Since fiscal year 1995, committee reports accompanying

appropriation bills and the conference report have generally contained

guidance on the use of funds for specific counterterrorism initiatives.

Although this guidance, unlike requirements contained in law, is not legally

binding, the FBI indicated that it follows such guidance in allocating its

resources during the fiscal year. In addition, the FBI has the authority to

reprogram funds (i.e., move funds between activities within a given

account) without notifying the relevant appropriations committees unless

a specific purpose is prohibited or the amount of the reprogramming

exceeds a dollar threshold ($500,000 or a 10-percent change in funding

level, whichever is less). Any other reprogramming action requires

notification to the relevant appropriations committee.10 In addition, funds

may be available to support the FBI’s counterterrorism programs and

activities from other congressionally appropriated funding sources

provided directly to DOJ, such as reimbursement the FBI may receive from

the Attorney General’s Counterterrorism Fund. This is a special fund

established by Congress in 1995, in response to the Oklahoma City

bombing incident, to be used by the Attorney General to fund

extraordinary counterterrorism-related expenses.

To achieve our objectives, we interviewed FBI, DOJ, OMB, and other

agency officials in Washington, D.C., and Chicago, IL, to collect and review

data on funds appropriated during fiscal years 1995 through 1998 to the

FBI, the FBI’s allocation and use of those funds for counterterrorismrelated activities, and the FBI’s fiscal year 1999 allocation plans. We did

some limited verification of fiscal year 1995 through 1998 allocation and

obligation data provided by FBI officials by reviewing supporting financial

documentation and comparing financial accounting and budget

 

9

Earmarked refers to dedicating an appropriation for a particular purpose. Legislative language may

designate any portion of a lump-sum amount for particular purposes (GAO/AFMD-2.1.1. Budget

Glossary, January 1993).

10The Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies

Appropriations Acts have annually required the FBI and other agencies that receive funding under

these acts to notify the Appropriations Committees of both Houses of Congress 15 days in advance of

such reprogrammings. DOJ requires that its components, including the FBI, wait to implement

reprogrammings until a response from Congress is received before expending any of the additional

funds being sought. These reprogrammings are usually documented in correspondence between the

appropriations committees and DOJ.

Scope and

Methodology
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information obtained from the FBI with related data obtained from DOJ

and OMB officials. We also consulted with FBI, DOJ’s Justice Management

Division (JMD), and OMB officials on procedures in place to track funds

specifically designated in accordance with statutory direction or

congressional guidance for counterterrorism programs and activities, and

the process used by the FBI and others to calculate the amount and use of

overall counterterrorism funds. We performed our work from October

1997 to August 1998 in accordance with generally accepted government

auditing standards. A detailed description of our objectives, scope, and

methodology is contained in appendix I. We requested comments on a

draft of this report from the Attorney General. Responsible FBI and DOJ

officials provided comments, which are discussed at the end of this letter.

The amount of total funds allocated by the FBI for counterterrorism

activities has more than doubled since fiscal year 1995, but, in any fiscal

year, the specific amount is not easily identifiable because (1) the FBI’s

appropriation language does not specifically identify a separate or total

amount available to the FBI for counterterrorism, and for most of the years

we reviewed, the appropriations act only established a minimum that must

be spent on counterterrorism-related activities, foreign intelligence, and

national security; (2) some of the funds provided to the FBI are allocated

to functions, such as training and forensic services, that support multiple

FBI missions, including counterterrorism; and (3) the FBI had not been

specifically required to identify or account separately for total funds used

for counterterrorism-related activities. However, the FBI generally tracks

the obligation of funds allocated for counterterrorism based on statutory

direction or congressional guidance. In addition, the FBI’s

counterterrorism program is generally supported by nearly every division

within the FBI, which are not all required to track allocation of their

division resources for counterterrorism-related activities.

Beginning in fiscal year 1998, the FBI, in conjunction with DOJ’s JMD,

OMB, and other federal agencies with a role in the U.S. effort to combat

terrorism, took steps in response to a statutory mandate to calculate and

categorize the amount of funds budgeted and used to combat terrorism.

Appendix III provides a more detailed description of the OMB guidance for

categorizing and reporting financial data on agency efforts to combat

terrorism.

Also, in connection with the requirements of the Government Performance

and Results Act of 1993 (GPRA), DOJ and the FBI also took steps to link

the allocation of budget resources to annual and strategic plans, including

linkages to specific counterterrorism-related performance measures

Resources Allocated

by the FBI for

Counterterrorism

Activities Have

Increased
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established for fiscal years 1998 and 1999.11 In addition, DOJ and the FBI

are planning to develop a methodology to implement established

managerial cost accounting standards that, among other things, require

federal agencies on a regular basis to report the full cost of its activities. In

this regard, Statement of Federal Financial Accounting Standards (SFFAS)

No. 4, Managerial Cost Accounting Concepts and Standards for the Federal

Government, defines full cost as the sum of (1) the costs of resources

consumed by the segment that directly or indirectly contribute to the

output and (2) the costs of identifiable supporting services provided by

other responsibility segments within the reporting entity, and by other

reporting entities.12 According to SFFAS No. 4, reliable information on the

cost of federal programs and activities is crucial for effective management

of government operations, and measuring costs is an integral part of

measuring performance against program objectives in terms of efficiency

and cost-effectiveness.

In response to our request, the FBI generally applied a process similar to

that used to respond to OMB’s data request to retrospectively determine

the amount of resources it allocated during fiscal years 1995 through 1998

(as of July 31, 1998) to carry out its counterterrorism mission. The FBI

included funds that were allocated for counterterrorism based on statutory

direction, congressional guidance, mission needs, and reimbursements

obtained from the Attorney General’s Counterterrorism Fund. In addition,

the FBI calculated the pro rata amount of shared costs attributable to

counterterrorism.

The FBI generally used a two-step process to determine the amount of

resources it allocated to counterterrorism-related activities. First, it

calculated the cost of personnel, equipment, travel, and other FBI services

that were specifically dedicated to counterterrorism during each fiscal

year. Second, it determined the percentage of time its field agents spent on

counterterrorism matters during each fiscal year13 and applied these

 

11The Government Performance and Results Act of 1993, commonly referred to as “GPRA” or “the

Results Act” (P.L. 103-62), requires federal agencies to prepare annual performance plans covering the

program activities set out in the agencies’ budgets, beginning with fiscal year 1999.

12The Federal Accounting Standards Advisory Board recommends accounting standards after

considering the financial and budgetary information needs of Congress, executive agencies, other users

of federal financial information, and comments from the public. Treasury, OMB, and GAO then decide

whether to adopt the recommended standards; if they do, the standards are published by OMB and

GAO and become effective. SFFAS No. 4 was issued on July 31, 1995, and was initially to be effective

for fiscal year 1997, but was delayed until fiscal year 1998.

13The FBI determined that 9 percent of its field agents’ time was spent on counterterrorism-related

cases in fiscal year 1995, 12 percent in fiscal years 1996 and 1997, and projected 14 percent for fiscal

year 1998.
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percentages to the cost of personnel, equipment, travel, training, and other

FBI services, such as forensic analysis, that were not specifically dedicated

to counterterrorism. Appendix III also provides a more detailed

description of the process used by the FBI to report financial data on

counterterrorism activities to OMB.

Our review of financial accounting and budget data obtained from the FBI,

including information derived by using the above process, and similar data

obtained from DOJ’s JMD, OMB, and congressional source documents

shows that, from fiscal years 1995 to 1998, an estimated $1.66 billion in

funds were allocated by the FBI to carry out its counterterrorism mission.

During this period, as figure 1 shows, funds allocated by the FBI to combat

terrorism more than doubled from about $256 million in fiscal year 1995 to

about $581 million in fiscal year 1998 (as of July 31, 1998). The FBI said

that it expects to allocate about $609 million for its counterterrorism

mission in fiscal year 1999.

a

Includes reprogrammings totaling about $20 million in no-year fiscal year 1995 funds.

b

As of 7/31/98.

c

Represents the FBI’s Proposed Allocation Plans for fiscal year 1999.

Source: Constructed by GAO based on FBI data.

Figure 1: Growth of Funds Allocated by

the FBI for Counterterrorism

Programs/Activities, Fiscal Years 1995-

1999
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These funds have generally come from the following sources.

1. Funds specifically designated by statute for FBI counterterrorism

initiatives. About $77.1 million in such funds were provided to the FBI

during fiscal year 1995 in an emergency supplemental appropriation. In

addition, for fiscal years 1996 through 1998, Congress established a

minimum amount the FBI must allocate for counterterrorism

investigations, foreign counterintelligence, and other activities related

to national security.

2. Funds allocated by the FBI to carry out specific counterterrorism

initiatives based on congressional guidance. Congressional guidance

has generally been provided to the FBI in conference or committee

reports or in committee correspondence, such as that relating to the

reprogramming of funds, from appropriations subcommittees. About

$346.7 million in such funds have been allocated by the FBI based on

congressional guidance.

3. Other appropriated funds that were allocated by the FBI based on a

cost allocation system used to retrospectively estimate the shared cost

of investigative and other multiple support functions that could be and

were used in support of counterterrorism-related activities during a

given fiscal year. Using data obtained from the FBI, which were based

on a similar methodology used by the FBI to estimate overall

counterterrorism funds for OMB, we estimated that about $1.2 billion

in such funds had been allocated for counterterrorism-related activities

for fiscal years 1995 through 1998, as of July 31, 1998.

4. Funding reimbursements for counterterrorism expenses from the

Attorney General’s Counterterrorism Fund. This fund was established

by Title III of the Emergency Supplemental Appropriations for

Additional Disaster Assistance, for Anti-Terrorism Initiatives, for

Assistance in the Recovery from the Tragedy that Occurred at

Oklahoma City, and Rescissions Act, 1995, P.L. 104-19. Additional

funds have been provided in subsequent appropriations acts for fiscal

years 1996, 1997, and 1998. As of July 31, 1998, the FBI had been

approved to receive reimbursements totaling about $55.5 million from

the Attorney General’s Counterterrorism Fund.14

 

14About $12.3 million of the $55.5 million was not for the FBI’s use but was to be passed through the

FBI to other federal state, and local agencies to reimburse them for expenses incurred in assisting the

FBI in investigating or responding to specific terrorist incidents or carrying out specific

counterterrorism activities.
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As shown in figure 2, about one-fourth of the funds allocated by the FBI for

counterterrorism-related activities and initiatives were based on statutory

direction or congressional guidance. FBI officials reported that they had

not received nor transferred any additional funds from other federal

agencies for counterterrorism-related investigations or activities.

Source: Constructed by GAO based on FBI, DOJ, OMB, and congressional documents.

Figure 2: Sources of Funds Allocated

by the FBI for Counterterrorism-Related

Activities and Initiatives, Fiscal Years

1995-1998 (as of July 31, 1998)
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For fiscal years 1995 through 1998 (as of July 31, 1998), Congress had

provided the FBI with about $77.1 million in direct appropriations for

specific counterterrorism initiatives and has provided guidance on the use

of about an additional $346.7 million in funds for specific counterterrorism

initiatives. In addition, for fiscal years 1996 through 1998, Congress set a

minimum amount that the FBI must allocate for counterterrorism

investigations, foreign counterintelligence, and other activities related to

national security.

Congress provided statutory direction through the appropriations acts and

provided guidance through conference or committee reports

accompanying the acts. In addition, there was follow-up correspondence

or discussions between the appropriations committees, DOJ, and the FBI,

either clarifying the conference report language or providing congressional

responses to reprogramming notifications. In identifying funds used for

counterterrorism, we include both statutory directives and congressional

guidance to provide a full picture of congressional action relating to FBI

counterterrorism funding. The following summarizes such action for fiscal

years 1995 to 1998.

• In fiscal year 1995, through Title III of the Emergency Supplemental

Appropriations Act, P.L. 104-19, Congress provided about $77.1 million in

funds for the FBI to use to pay for additional expenses resulting from the

bombing of a federal building in Oklahoma City and other

counterterrorism efforts, including the establishment of a Domestic

Counterterrorism Center.15 The FBI’s allocation of these funds for the

counterterrorism initiatives was based on this statutory direction and

subsequent reprogramming agreements.

• In fiscal year 1996, through the Departments of Commerce, Justice, and

State, the Judiciary, and Related Agencies Appropriations Act, 1996, P.L.

104-134, Congress directed the FBI to spend no less than $102,345,000 on

counterterrorism investigations, foreign counterintelligence, and other

activities related to national security. The FBI allocated about $158.8

million of its available resources for counterterrorism-related activities in

fiscal year 1996 based on their interpretation of guidance contained in

conference report H.R. Conf. Rep. 104-378 (1995) and in House report, H.R.

104-196 (1995). The conferees specified program increases for various

programs and that about $57 million be used for the construction of a new

 15The FBI’s Counterterrorism Center serves as a national clearinghouse for critical information about

terrorism and terrorist groups that can be coordinated and shared among the law enforcement and

intelligence communities.

Funds Allocated by the FBI

for Counterterrorism Based

on Statutory Direction and

Congressional Guidance
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FBI laboratory facility. These items were previously identified in the House

report as counterterrorism initiatives.

• In fiscal year 1997, through the Departments of Commerce, Justice, and

State, the Judiciary, and Related Agencies Appropriations Act, 1997, P.L.

104-208, Congress directed the FBI to spend no less than $147,081,000 on

counterterrorism investigations, foreign counterintelligence, and other

activities related to national security. In addition, congressional guidance

relating to counterterrorism initiatives was provided in the conference

report, H.R. Conf. Rep. 104-863 (1996), accompanying the 1997

Appropriations Act and subsequent reprogramming agreements between

the FBI and the Appropriations Committees. It was agreed that the FBI

should use about $133.9 million on certain counterterrorism initiatives.

This amount included about $83 million to increase the number of agent

and support staff positions by over 1,000.

• In fiscal year 1998, through the Departments of Commerce, Justice, and

State, the Judiciary, and Related Agencies Appropriations Act, 1998, P.L.

105-119, Congress directed the FBI to spend no less than $221,050,000 on

counterterrorism investigations, foreign counterintelligence, and other

activities related to national security. In addition, congressional guidance

for the use of these funds was provided in the conference report, H.R.

Conf. Rep. 105-405 (1997), accompanying the Fiscal Year 1998

Appropriations Act. The conferees indicated that the FBI should spend

about $143.5 million for certain counterterrorism initiatives, including

obtaining and enhancing hazardous materials equipment for handling

weapons of mass destruction. The FBI reported that about $77.6 million of

these funds were associated with the cost of annualizing new personnel

positions from fiscal year 1997 and that about $11.8 million was associated

with personnel positions to augment the National Infrastructure Protection

Center (NIPC)16 and staff field unit computer crime squads, which the FBI

had identified as a Technology Crimes initiative to support counterintelligence and other Criminal Investigative Division activities in its fiscal

year 1998 budget submission. The remaining $54 million was allocated by

the FBI based on congressional guidance.

 16The NIPC, which was created in February 1998, incorporated and expanded the mission and

personnel of the FBI’s Computer Investigations and Infrastructure Threat Assessment Center in June

1998. Led by the FBI, NIPC is composed of detailees from Department of Defense (DOD), the Central

Intelligence Agency, Department of Energy, National Security Agency, and local law enforcement

organizations. NIPC also collects data from a variety of sources, including the United States Secret

Service. NIPC’s principal mission is to detect, deter, warn of, respond to, and investigate unlawful acts

involving computer intrusions and unlawful acts that threaten or target our critical national

infrastructure.
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According to FBI officials, funds that are statutorily directed or for which

there is congressional guidance for specific counterterrorism initiatives

are generally tracked within the FBI under separate accounting codes.

Appendix IV provides details on funds allocated based on statutory

direction or congressional guidance.

The amount of other funds (i.e., funds not allocated based on statutory

direction or congressional guidance) that were allocated by the FBI for

counterterrorism activities in any given fiscal year is generally unknown

and not easily identifiable because (1) nearly every division within the

FBI—from forensic services to training—has had a role in supporting the

FBI’s counterterrorism program, according to FBI officials, and not all of

the FBI’s divisions are required to track allocation of resources or funds

for counterterrorism-related activities and (2) some of the funds provided

to the FBI are allocated to functions, such as training and forensic

services, that support multiple FBI missions, including counterterrorism.

Unlike certain funds allocated for counterterrorism on the basis of

statutory direction or congressional guidance or funds reimbursed from

the Attorney General’s Counterterrorism Fund, which the FBI is able to

more easily identify and track, the FBI, prior to fiscal year 1998, had not

been required to specifically identify or track total funds allocated for

counterterrorism. For example, each year the FBI receives a certain

amount of funds to maintain its fleet of automobiles and other vehicles

needed to carry out its investigative activities. While some of these

vehicles may be used for counterterrorism investigations, the FBI had not

been required to track or account for the costs associated with specific

types of investigations.

The FBI applied the process it used to report to OMB during fiscal year

1998 on the overall amount of counterterrorism-related funds to

retrospectively estimate for us the total amount of funds that were

allocated for counterterrorism-related activities during fiscal years 1995

through 1998. Based on our review of FBI data, we estimate that from

fiscal years 1995 to 1998 (as of July 31, 1998), about $1.2 billion in other

funds had been allocated to support the FBI’s counterterrorism mission.

We derived this figure by subtracting the amount of statutorily directed

funds appropriated, the amount of funds the FBI reported that it allocated

based on congressional guidance, and the amount of funds the FBI

received from the Attorney General’s Counterterrorism Fund during fiscal

years 1995 through 1998, from the approximately $1.66 billion that the FBI

estimated it allocated (as of July 31, 1998).

Other Funds Allocated by

the FBI to Carry Out its

Counterterrorism Mission
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As previously mentioned, in 1995, Congress established a special

counterterrorism fund to be used by the Attorney General to reimburse

DOJ components, including the FBI, for extraordinary expenses related to

countering, investigating, or prosecuting domestic or international

terrorism.17 Such expenses include police overtime pay; travel and per

diem; and goods and services procured, such as supplies, equipment, rent,

and leases. Regular pay and benefits for personnel who would normally be

on duty are not considered extraordinary expenses. The Attorney

General’s Counterterrorism Fund is managed by DOJ’s JMD budget staff,

who reviews all requests for reimbursements and makes recommendations

to the Attorney General for approval. As of July 31, 1998, the FBI had been

approved by the Attorney General to receive a total of $55.5 million in

reimbursements from this fund. About $12.3 million of the $55.5 million

was not for the FBI’s use but was to be passed through the FBI to other

federal, state, and local agencies to reimburse them for expenses incurred

in assisting the FBI in investigating and responding to specific terrorist

incidents or carrying out specific counterterrorism activities. Appendix V

provides information on the amount approved for the FBI to be

reimbursed from the fund; it also describes the extraordinary expenses

and counterterrorism-related events for which these funds were used.

For the same reasons previously noted for the amount of funds allocated,

the amount of funds obligated by the FBI from fiscal years 1995 to 1998 (as

of July, 31, 1998) to carry out its counterterrorism mission is difficult to

determine with precision. Nevertheless, our review of financial data

provided by FBI officials, who generally applied the same process used to

respond to OMB’s data request, shows that as of July 31, 1998, the FBI had

incurred obligations of about $1.52 billion of the approximate $1.66 billion

allocated for counterterrorism from fiscal years 1995 to 1998. Much of the

remaining about $140 million was associated with no-year funding projects

or pending fourth quarter fiscal year 1998 obligations at the time of our

field work. As table 1 shows, of the five categories of activities to combat

terrorism, as defined in OMB guidelines to executive branch agencies for

reporting on counterterrorism spending (see app. III), about 56 percent of

the FBI’s funds were used for counterterrorism-related law enforcement

and investigative activities.

 

17The statutory language establishing the Counterterrorism Fund does not provide for the direct

reimbursement to state and/or local law enforcement organizations. Instead, a reimbursement would

occur via an intergovernmental agreement once a Justice organization attests to the Department that it

is relying on the assistance provided by that state and/or local entity to counter, investigate, or

prosecute those responsible for an act of terrorism.

Attorney General’s

Counterterrorism Fund

FBI’s Obligation of

Resources Allocated

for Counterterrorism

Activities
B-276818

Page 15 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Dollars in thousands

Type of counterterrorism

activity

Estimated amounts

obligated fiscal years

1995-98

Percent of

counterterrorism-related

funds obligated

Law enforcement & investigative

activities

$ 858,798 56

Preparing for & responding to

terrorist acts

563,962 37

Physical security of government

facilities & employees

56,824 4

Physical protection of national

populace and national

infrastructure

30,421 2

Research & development 10,840 1

Total $1,520,845 100

Source: Constructed by GAO based on FBI data.

Appendix VI provides an overview by fiscal year of the FBI’s obligation of

funds for counterterrorism-related programs or activities. Additional

details on the FBI’s obligation of funds allocated for counterterrorism

based on statutory direction or congressional guidance and funds obtained

from the Attorney General’s Counterterrorism Fund are provided below.

The FBI has generally tracked the obligation of funds allocated based on

statutory direction or congressional guidance from fiscal years 1995 to

1998. These funds totaled about $423.8 million between fiscal years 1995

and 1998. The FBI generally tracked such obligations incurred as

personnel or nonpersonnel items. As table 2 shows, FBI officials reported

that as of July 31, 1998, the FBI had obligated about $353.2 million of the

$423.8 million allocated based on statutory direction or congressional

guidance. According to the FBI, the remaining $70.6 million was not yet

obligated generally because (1) some of the funds allocated based on

congressional guidance in fiscal year 1996 were associated with the

ongoing construction of the new FBI laboratory facility and (2) some of

the FBI’s fiscal year 1998 funds were associated with pending obligations

for aviation equipment as of July 31, 1998.

Table 1: Information on the FBI’s

Obligation of Funds for

Counterterrorism-Related Activities,

Fiscal Years 1995-1998 (as of July 31,

1998)

FBI’s Obligation of Funds

Allocated for

Counterterrorism Based on

Statutory Direction and

Congressional Guidance
B-276818

Page 16 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Dollars in thousands

Fiscal year

New funds allocated

for specific

counterterrorism

initiativesa

Obligations

incurred Amount unobligated

1995 $ 77,140 $ 74,649 $ 2,491

1996 158,759 118,189 40,570

1997 133,886 132,906 980

1998 54,020 27,434 26,586

Total $423,805 $353,178 $70,627

a

Figures refer to no-year funds made available to the FBI until expended.

Source: Constructed by GAO based on data provided by FBI, DOJ, OMB, and congressional source

documents.

While some of the FBI’s assets and resources have been allocated for

counterterrorism-related activities based on statutory direction or

congressional guidance, their use may not be limited to such activities

depending on what crises the FBI faces or its investigative needs at any

given time. For example, although the FBI’s new forensic laboratory

facility was identified as a counterterrorism initiative, when completed, it

would be used to support other FBI investigative efforts or respond to

various crises, including counterterrorism, according to FBI officials.

Similarly, although the FBI obligated over $83 million provided by

Congress in fiscal year 1997 to hire over 1,000 additional counterterrorism

agents and support personnel, some of these resources were and may be

used for activities not related to counterterrorism, according to FBI

officials. It would be difficult, however, to determine the exact portion of

these assets and resources used for counterterrorism versus other

investigative efforts, given that the FBI’s accounting system is not

currently structured to specifically track counterterrorism-related use of

resources.

Appendix IV also provides a detailed listing by fiscal year of the FBI’s

obligation of funds allocated for counterterrorism based on statutory

direction and congressional guidance, as of July 31, 1998.

The FBI is reimbursed from the Counterterrorism Fund for its

expenditures, not obligations. From fiscal years 1995 to 1998, as of July 31,

1998, the FBI had received about $38.2 million of the $55.5 million in

reimbursements approved from the Attorney General’s Counterterrorism

Fund. About $11.5 million of the $38.2 million in funds received was passed

through the FBI to other federal, state, and local agencies to reimburse

them for assistance they had provided to the FBI. However, DOJ’s Office

of the Inspector General (OIG), which at the time of our review was

conducting a detailed audit of the FBI’s use of the Attorney General’s

Table 2: Status of the FBI’s Obligation

of Funds Allocated Based on Statutory

Direction or Congressional Guidance for

Counterterrorism-Related Programs and

Activities, Fiscal Years 1995-1998 (as of

July 31, 1998)

FBI’s Use of the Attorney

General’s Counterterrorism

Fund
B-276818

Page 17 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Counterterrorism Fund, raised some concerns with the FBI’s use of some

of these funds, including funds that were approved by JMD to be passed

through the FBI to other federal agencies and state and local

governments.18

Appendix V also provides detailed information on the FBI’s use of the

Attorney General’s Counterterrorism Fund, as of July 31, 1998, and on the

activities for which the funds were used.

From fiscal years 1995 to 1998, available data show that the amount of

funds allocated and obligated by the FBI for counterterrorism-related

activities and initiatives more than doubled. During this period, Congress

has directed or provided guidance to the FBI on the use of about a quarter

of these funds, and the FBI has generally followed this direction and

guidance in obligating these funds. Because of various factors previously

discussed, including the lack of available information on the FBI’s use of

funds not allocated based on statutory direction or congressional

guidance, neither we nor the FBI could readily determine with precision

the amount of overall funds allocated and obligated by the FBI to carry out

its counterterrorism mission. However, the FBI and DOJ have undertaken

efforts to (1) specifically track funds allocated for counterterrorism on the

basis of statutory direction and congressional guidance and the FBI’s use

of funds from the Attorney General’s Counterterrorism Fund; (2) calculate,

in response to OMB’s annual data request, the overall amount of funds

associated with counterterrorism-related activities, including shared costs;

and (3) link the allocation of budget resources to annual and strategic

plans, including specific counterterrorism-related performance measures.

In addition, the FBI and DOJ are planning to develop a methodology for

reporting full cost of program activities in compliance with established

managerial cost accounting standards. We believe these efforts on the part

of the FBI and DOJ are important steps toward more precisely identifying

resources used by the FBI for counterterrorism-related activities,

particularly given the recent continuing growth in funding for

counterterrorism and the growing public and congressional interest in this

area.

We requested comments on a draft of this report from the Attorney

General. On October 28, 1998, a representative of DOJ’s Office of the

Assistant Attorney General for Administration informed us by fax and

telephone that the report had been reviewed by FBI officials, DOJ’s Justice

Management Division, and the Office of the Inspector General. She stated

 

18DOJ’s OIG anticipates releasing a final report on their findings during fiscal year 1999.

Conclusions

Agency Comments
B-276818

Page 18 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

that as a result of the review, DOJ had only minor technical comments and

generally concurred with the report’s findings and conclusion. We have

incorporated the technical changes throughout the report as appropriate.

As agreed with your office, unless you publicly announce its contents

earlier, we plan no further distribution of this report until 10 days from the

date of this letter. At that time, we will send copies of this report to the

Ranking Minority Member of the Subcommittee; the Chairmen and

Ranking Minority Members of the congressional committees with

jurisdiction over the FBI and counterterrorism activities; the Attorney

General; the FBI Director; the Director of OMB; and other interested

parties. Also, copies will be made available to others upon request.

The major contributors to this report are listed in appendix VII. If you have

any questions about this report, please call me on (202) 512-8777.

Sincerely yours,

Norman J. Rabkin

Director, Administration

 of Justice Issues
Page 19 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism
Page 20 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Contents

1 Letter

Appendix I 24

Objectives, Scope, and

Methodology

26

Preventive and Crisis Management Efforts 26

Training and Preparedness Exercises 32

Forensic and Other Support Functions 33

Research and Development Projects 34

Leadership of Joint Terrorism Task Forces and

Participation in Interagency Working Groups

34

Appendix II

FBI’s Unclassified

Counterterrorism

Programs and

Activities

36

OMB Guidelines for Executive Branch Agencies to

Report on Spending to Combat Terrorism

36

Process Used by the FBI to Report on Funds Allocated

and Used for Counterterrorism

38

Appendix III

OMB Guidelines and

the FBI’s Process for

Calculating Funds

Budgeted and Used for

Counterterrorism

Appendix IV 39

FBI’s Obligation of

Funds Allocated for

Counterterrorism

Based on Statutory

Direction or

Congressional

Guidance
Contents

Page 21 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Appendix V

Schedule of the FBI’s

Use of Federal Funds

From the Attorney

General’s

Counterterrorism

Fund (FY 1995-FY

1998)

43

Appendix VI 45

Summary of Funds

Obligated by the FBI to

Carry Out Its

Counterterrorism

Mission, FY 1995-FY

1998 (as of July 31,

1998)

Appendix VII 46

Major Contributors to

This Report

Table 1: Information on the FBI’s Obligation of Funds for

Counterterrorism-Related Activities, Fiscal Years 1995-

1998 (as of July 31, 1998)

15

Table 2: Status of the FBI’s Obligation of Funds

Allocated Based on Statutory Direction or

Congressional Guidance for Counterterrorism-Related

Programs and Activities, Fiscal Years 1995-1998 (as of

July 31, 1998)

16

Table III.1: FBI’s Reporting Process 38

Table IV.1: Fiscal Year 1995 FBI Obligations 39

Table IV.2: Fiscal Year 1996 FBI Obligations 39

Tables

Table IV.3: Fiscal Year 1997 FBI Obligations 40
Contents

Page 22 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Table IV.4: Fiscal Year 1998 FBI Obligations 42

Figure 1: Growth of Funds Allocated by the FBI for

Counterterrorism Programs/Activities, Fiscal Years

1995-1999

8

Figure 2: Sources of Funds Allocated by the FBI for

Counterterrorism-Related Activities and Initiatives,

Fiscal Years 1995-1998 (as of July 31, 1998)

10

Figure II.1: FBI Crisis Management Organization

Structure/Terrorism

28

Figure II.2: FBI’s Joint Operations Center Organization

Structure

30

Figures

Abbreviations

ANSIR Awareness of National Security Issues and Response Program

CIRG Critical Incident Response Group

DEST Domestic Emergency Support Team

DOD Department of Defense

DOE Department of Energy

DOJ Department of Justice

EPA Environmental Protection Agency

FBI Federal Bureau of Investigation

FEMA Federal Emergency Management Agency

GPRA Government Performance and Results Act of 1993

HHS Department of Health and Human Services

JMD Justice Management Division

NIPC National Infrastructure Protection Center

NLETS National Law Enforcement Telecommunications System

OIG Office of the Inspector General

OMB Office of Management and Budget

PDD Presidential Decision Directive

R&D research and development

SFFAS Statement of Federal Financial Accounting Standard

TURK Time Utilization Record Keeping System
Page 23 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism
Appendix I

Objectives, Scope, and Methodology

Page 24 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

In response to the request of the Chairman of the Subcommittee on

Administrative Oversight and the Courts, Senate Committee on the

Judiciary, that we review the FBI’s use of its increased counterterrorism

funds, our objectives were to determine the amount of funds that the FBI

allocated and obligated for fiscal years 1995 through 1998 (as of July 31,

1998), and requested for fiscal year 1999 to combat domestic and

international terrorism. We also determined what methodology the FBI

used to identify its overall counterterrorism funds.

To address these objectives, the scope of our work focused on collecting

and analyzing information on the overall amount of funds allocated and

obligations incurred by the FBI for counterterrorism programs and

activities during fiscal years 1995 through 1997. In addition, we collected

and analyzed similar data for fiscal year 1998 (as of July 31, 1998),

reviewed congressional action on the FBI’s budget submission for fiscal

year 1999, and reviewed the FBI’s process for calculating

counterterrorism-related funds.

We conducted our work primarily in the Washington, D.C., Metropolitan

Area at the FBI’s Headquarters and Washington Field Office in accordance

with generally accepted government auditing standards. In carrying out

this review, we consulted with officials from DOJ’s JMD, which is

responsible for overseeing the FBI’s funds; DOJ’s OIG, which at the time of

our review was doing a detailed audit of the Attorney General’s

Counterterrorism Fund, including examining vouchers; and OMB, which in

implementing a statutory provision had requested federal agencies to

report information on overall counterterrorism funding.

To identify the amount of funds allocated to the FBI for fiscal years 1995 to

1998, the amount of associated obligations incurred during this same

period, and the President’s budget request for the FBI and FBI plans for

fiscal year 1999, we interviewed and collected information from officials in

the FBI’s Finance, National Security, and Laboratory Divisions; as well as

DOJ’s JMD and OIG; and OMB. Specifically, we obtained and reviewed

classified and unclassified information on funds available to, allocated, and

obligated by the FBI. We also reviewed congressional hearings, conference

and committee reports, appropriation acts, reprogramming notifications,

and other correspondences between congressional committees and DOJ;

DOJ budget books for fiscal years 1997 through 1999, pertinent reports and

other documents previously published by us and the Congressional

Research Service; and information available on the FBI, DOJ, and other

Internet sites.
Appendix I

Objectives, Scope, and Methodology

Page 25 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

To verify the FBI’s statement that no funds had been transferred from the

FBI to any other agency, we judgmentally selected two federal agencies

that have a role in assisting the FBI in its crisis management efforts—

Health and Human Services (HHS) and the Environmental Protection

Agency (EPA)—and interviewed relevant officials from these agencies to

verify whether the FBI had transferred funds to, as well as received funds

from, these agencies.

We did some limited verification of the funding and obligation data

provided by FBI officials by reviewing supporting financial documentation

and consulting with JMD, OMB, and FBI Washington Field Office officials

on procedures in place to track obligations of the FBI’s funds for

counterterrorism-related programs and activities. In addition, we did some

comparative analysis of financial information obtained from the FBI, DOJ,

and OMB.

To verify the information provided by the FBI on funds allocated by the

FBI based on statutory direction or congressional guidance, we reviewed

and prepared a summary analysis of congressional action taken on the

FBI’s budget requests for fiscal years 1995 through 1998 to enhance the

FBI’s counterterrorism program. In doing so, we identified and reviewed

relevant congressional hearings, conference and committee reports,

appropriation acts, and reviewed reprogramming notifications and other

relevant correspondence between the appropriations committee and DOJ

that were obtained from the FBI or DOJ’s JMD.

We did not verify the FBI’s reimbursements from the Attorney General’s

Counterterrorism Fund. Rather, we relied on information from the DOJ

OIG’s ongoing audit, which included an examination of the supporting

records for each FBI reimbursement.

Through interviews with FBI budget analysts, and JMD and OMB officials,

we obtained information on and reviewed the process used by the FBI to

calculate the amount of overall counterterrorism-related resources that

were allocated by the FBI and obligations that had been incurred for fiscal

years 1995 to 1998 (as of July 31, 1998). We also reviewed supporting

documentation that was used by the FBI to calculate the estimated amount

of counterterrorism-related resources, including field workload analysis

data.
Appendix II

FBI’s Unclassified Counterterrorism

Programs and Activities

Page 26 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Since 1982, the FBI has been responsible for responding to terrorist acts

that occur domestically1

 and monitoring the activities of terrorist groups

operating within the United States.2

 In carrying out its role as a principal

investigative agency of the federal government, the FBI’s counterterrorism

programs and activities include (1) preventive and crisis management

efforts, (2) training and preparedness exercises, (3) forensic and other

support functions, (4) research and development projects, and (5)

leadership of joint terrorism task forces and participation in interagency

working groups.

When the FBI receives information on a terrorist threat, particularly one

involving the use of weapons of mass destruction,3

 the FBI is responsible

for (1) assessing (investigating) the credibility of the threat through

coordination with other federal agencies—including the Department of

Energy (DOE), HHS, EPA, DOD, and the Federal Emergency Management

Agency (FEMA) and (2) directing an operational response, if warranted,

based on the assessment. The FBI manages the federal government’s

Terrorist Threat Warning System, which communicates terrorism-related

information to other law enforcement agencies. As we previously

reported,4

 the FBI disseminates unclassified terrorism threat and warning

information to law enforcement agencies nationwide through its teletype

National Law Enforcement Telecommunications System (NLETS).

Thirteen such messages were delivered in 1996. The FBI also transmits

information to U.S. businesses on the potential for terrorism through its

Awareness of National Security Issues and Response Program (ANSIR).

Established in 1996, this program is an E-mail network linking the FBI’s 56

field offices to more than 40,000 businesses. At the time of our review, the

FBI had disseminated eight separate information cables via the Terrorist

Threat Warning System, NLETS, and ANSIR concerning the bombings in

East Africa and related events.

 1

In aircraft hijackings, the Federal Aviation Administration is to coordinate law enforcement activity

affecting the safety of passengers aboard aircraft within the special aircraft jurisdiction of the United

States. Federal Aviation Administration’s air marshals have counterterrorism responsibilities aboard an

aircraft. On the ground in U.S. territory, once the door of the aircraft is open, the FBI is responsible for

the resolution of terrorist hijackings.

2

The Central Intelligence Agency is responsible for gathering intelligence overseas.

3

The FBI has two Weapons of Mass Destruction units at FBI Headquarters. One unit addresses

operations, cases, and threats, which reportedly tripled in 1997 over 1996 figures. In 1997, the FBI

investigated over 100 weapons of mass destruction cases. The other unit implements the FBI’s

countermeasures program, which coordinates exercises, deployments, and the FBI’s role in training

first responders.

4

Combating Terrorism: Federal Agencies’ Efforts to Implement National Policy and Strategy

(GAO/NSIAD-97-254, Sept. 26, 1997).

Preventive and Crisis

Management Efforts
Appendix II

FBI’s Unclassified Counterterrorism Programs and Activities

Page 27 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

When a domestic terrorist act occurs, the FBI is to provide a rapid onscene response, typically in coordination with local law enforcement

authorities or other federal agencies to investigate the terrorist act. The

FBI’s on-scene commander is to establish a command post or interagency

Joint Operations Center to manage the crisis based upon the premise of a

graduated and flexible response. When necessary, the FBI’s Critical

Incident Response Group (CIRG)—which was established in 1994

expressly to deal with domestic hostage-taking, barricade, and terrorist

situations, such as the 1996 Freeman standoff in Montana—will deploy

additional resources needed to assist the local FBI field office responsible

for handling the crisis. CIRG tactical assets include the Hostage Rescue

Team and other tactical assistance resources. The Hostage Rescue Team,

which is staffed with nearly 100 agents, is expected to deploy rapidly upon

notice of the FBI Director’s authorization to rescue individuals who are

held illegally by a hostile force or to engage in other law enforcement

activities as directed. Figure II.1 depicts the organization structure for the

FBI’s crisis management operations.
Appendix II

FBI’s Unclassified Counterterrorism Programs and Activities

Page 28 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Source: FBI.

Figure II.1: FBI Crisis Management Organization Structure/Terrorism
Appendix II

FBI’s Unclassified Counterterrorism Programs and Activities

Page 29 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Based on a preliminary threat assessment, the FBI Director, through the

Attorney General, may authorize the deployment of a Domestic Emergency

Support Team (DEST) composed of those agencies that can provide advice

or assistance to the FBI on-scene commander. The FBI is responsible for

determining the team’s composition and communicating its needs to the

appropriate agencies. Once the DEST has been assembled, the FBI

command post can be converted to a Joint Operations Center for decisions

involving the interagency response to the incident. As shown in figure II.2,

the center is composed of four groups (command, operations,

consequence management, and support) that are responsible for providing,

respectively, on-scene decisionmaking, tactical and negotiations skills,

advice on dealing with destruction and mass casualties, and logistical and

administrative services, among others.
Appendix II

FBI’s Unclassified Counterterrorism Programs and Activities

Page 30 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Source: FBI.

Figure II.2: FBI’s Joint Operations

Center Organization Structure
Appendix II

FBI’s Unclassified Counterterrorism Programs and Activities

Page 31 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism
Appendix II

FBI’s Unclassified Counterterrorism Programs and Activities

Page 32 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Over the last few years, the FBI’s preventive and investigative efforts

resulted in, among other things, the discovery and prevention of plots to

bomb the Holland and Lincoln tunnels and the George Washington Bridge

in New York, and a federal building and the subway system in New York

City.

The FBI provides counterterrorism-related training to FBI personnel and

local law enforcement personnel who will work with the FBI at special

events; foreign police; and, in conjunction with the DOD, law enforcement

officials, judges, and prosecutors from the former Soviet Union and

Eastern Europe. During fiscal year 1998, the FBI spent about $1 million

coordinating crisis management training exercises in Denver, Philadelphia,

San Francisco, Honolulu, Miami, San Juan, Chicago, Portland, Minneapolis,

and Norfolk.

Title XIV of P.L. 104-201 (1996), 50 U.S.C. 2311, commonly known as the

Nunn-Lugar-Domenici Act, established the Domestic Preparedness

Program to prevent and respond to terrorist activities involving weapons

of mass destruction. While DOD is primarily responsible for implementing

this program, the FBI has participated in Nunn-Lugar-Domenici training

events, which are designed to enhance federal, state, and local responders’

capability to deal with incidents involving weapons of mass destruction.5

As of June 30, 1998, the FBI had participated in such training for 26 U.S.

cities and had plans to accommodate an additional 94 cities.

From October 1994 through March 1997, the FBI participated in 30

interagency exercises. These exercises involved conventional, chemical,

biological, and nuclear incident scenarios. For example, the FBI conducted

weapons of mass destruction counterterrorism exercises in preparing for

the 1996 Summer Olympic Games in Atlanta, Georgia. The FBI sponsored

10 of the 30 exercises. As of September 1998, 25 more exercises are

scheduled through March 1999.

The exercises helped the FBI and other agencies identify needed

improvements in interagency coordination and intelligence flow,

interagency coordination of forensic matters, and information

management and technical support. FBI officials also said that they revised

their crisis management plans accordingly and took other steps based on

the lessons learned from the exercise. For example, CIRG implemented a

 5

We recently issued a report that provides additional details on the FBI’s involvement in Nunn-LugarDomenici training events entitled Combating Terrorism: Opportunities to Improve Domestic

Preparedness Program Focus and Efficiency (GAO/NSIAD-99-3, Nov. 12, 1998).

Training and

Preparedness

Exercises
Appendix II

FBI’s Unclassified Counterterrorism Programs and Activities

Page 33 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

crisis management training program for senior FBI officials that

emphasized the Joint Operations Center concept.

The FBI’s Laboratory Division supports the counterterrorism efforts of the

FBI and other law enforcement, including state and local agencies. The

laboratory’s Explosive Unit and Bomb Data Center, for example, trains

bomb technicians and investigators throughout the United States and its

territories and maintains an information clearinghouse about terrorists and

bombing incidents. Similarly, the laboratory’s Forensic Science Research

and Training Center, located at the FBI Academy, provides forensic

training to approximately 1,500 forensic scientists and officers from crime

laboratories and law enforcement agencies annually. During fiscal year

1996, the FBI took steps to establish an International Terrorism Forensic

Database that will allow participating nations to share forensic information

from terrorism cases.

When a terrorist incident occurs, FBI forensic and evidence specialists can

be deployed with CIRG to help gather the forensic evidence necessary to

bring the perpetrators to justice. For example, forensic investigators may

use debris from a terrorist site to develop the bomber’s “signature,” or

individualized choice of materials and details of construction, to link

multiple bombings to a single individual or terrorist group. Similarly, the

FBI laboratory can make available portable trace detection equipment

capable of providing positive on-site identification of explosive materials.

In addition, FBI field offices have Evidence Response Teams that are

trained and equipped to respond to domestic terrorist events and terrorist

attacks abroad.

In fiscal year 1996, the FBI Laboratory Division established a Hazardous

Materials Response Unit to provide direct technical assistance to FBI

investigators and to coordinate the various federal scientific, technical,

and medical assets responding to chemical/biological/nuclear terrorism.

From fiscal years 1990 to 1997, the FBI’s Laboratory Division participated

in over 3,900 counterterrorism-related cases and conducted over 300,000

counterterrorism-related examinations, according to FBI laboratory

officials.6

In addition to forensic and evidence support, FBI communications experts

and language specialists can also be deployed to help respond to

counterterrorism-related incidents. The FBI also has an investigative

support element—Rapid Start Team—that specializes in information

 

6

A single case can involve numerous examinations, according to FBI officials.

Forensic and Other

Support Functions
Appendix II

FBI’s Unclassified Counterterrorism Programs and Activities

Page 34 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

management. The Rapid Start Team consists of computer specialists and

data-input personnel who organize information for on-scene commanders

and investigative personnel.

The FBI is a member of the Technical Support Working Group,7

 whose

mission is to conduct the national research and development (R&D)

program for combating terrorism through rapid research, development,

and prototyping of counterterrorism technologies. The FBI cochairs the

Weapons of Mass Destruction Countermeasures Subgroup, which is

charged with providing an interagency forum for coordinating R&D

counterterrorism requirements, sponsoring R&D not addressed by

individual agencies, and promoting the transfer of information. According

to subgroup officials, program successes include the development of a

system to facilitate the dispersal of chemical/biological terrorist devices,

and the development of a database that can assist law enforcement

officials in identifying the perpetrators of chemical/biological/radiationrelated terrorist incidents.

In fiscal year 1998, the FBI’s laboratory division, through its Forensic

Science Research Unit, initiated 30 new counterterrorism research and

development projects totaling more than $5 million. Eighteen of these

projects are being conducted in cooperation with DOE under a new

science and technology memorandum of understanding signed in May

1998, according to FBI officials.

The FBI manages standing Joint Terrorism Task Forces that exist in 18

cities across the nation to facilitate an exchange of intelligence and

coordinate activities across the law enforcement community within

specific geographic areas. Given the success of the Joint Terrorism Task

Force concept, the FBI plans to develop additional task forces in cities

around the country. The FBI is also a member of the Interagency

Intelligence Committee on Terrorism, which was established to enhance

the processing, analysis, and distribution of foreign intelligence

information. Members include more than 40 federal agencies, bureaus, and

offices. They share information on the activities of terrorist groups and

assess indications of terrorist threats.

The FBI also participated in the Commission on Critical Infrastructure

Protection, which President Clinton established to develop a national

strategy to protect the country’s critical infrastructures from a spectrum of

 

7

Technical Support Working Group members include, among others, the DOD, DOE, the Treasury,

Central Intelligence Agency, and the Nuclear Regulatory Commission.

Research and

Development Projects

Leadership of Joint

Terrorism Task Forces

and Participation in

Interagency Working

Groups
Appendix II

FBI’s Unclassified Counterterrorism Programs and Activities

Page 35 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

threats, including terrorism.8 In October 1997, the commission issued a

report assessing the vulnerability of the country’s critical infrastructures

and proposing a strategy for protecting them. The FBI also operates the

Infrastructure Vulnerability/Key Asset Protection Program, which is

designed to maintain information on critical facilities throughout the

United States to assist in contingency planning should these facilities

become terrorist targets.

 

8

Executive Order 13010, Critical Infrastructure Protection, July 15, 1996.
Appendix III

OMB Guidelines and the FBI’s Process for

Calculating Funds Budgeted and Used for

Counterterrorism

Page 36 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

In the fall of 1997, in response to a statutory requirement,1 the Office of

Management and Budget (OMB) established a reporting system for

executive branch agencies to assess governmentwide spending and

programmatic priorities for combating terrorism. The following describes

OMB’s methodology for establishing such a system.

(A) Defining the Terms:

The first step in establishing a baseline for spending to combat terrorism is

defining what activities are considered terrorist-related and how these

activities should be categorized. OMB staff drafted definitions using

parameters set by Presidential Decision Directive-39 (PDD-39, “U.S. Policy

on Combating Terrorism”) and definitions used by the Departments of

Defense, State, Justice, and the Treasury. The next step in the process was

defining the difference between “counterterrorism” and “antiterrorism.”

Proposed definitions were discussed with all relevant agencies. After

reaching consensus with the agencies, the following definitions were

agreed upon:

• Terrorism: The calculated use of unlawful violence or threat of unlawful

violence to inculcate fear, intended to coerce, intimidate, or retaliate

against governments, the population as a whole, or foreign societies in the

pursuit of goals that are political, religious, or ideological.

• Antiterrorism: Defensive measures used to combat terrorism.

• Counterterrorism: Offensive measures used to combat terrorism.

• Terrorism spending is further defined by the following five categories:

1. Law enforcement and investigative activities: Activities to reduce the

ability of groups or individuals to commit terrorist acts, and

investigation and prosecution of terrorist acts when they occur

(include antiterrorist and counterterrorist activities);

2. Preparing for and responding to terrorist acts: Activities to plan, train,

and equip personnel directed at incident response (includes

antiterrorist and counterterrorist activities);

 

1

Section 1051 of the National Defense Authorization Act for Fiscal Year 1998, P.L. 105-85, 111 Stat.

1629, 1889, required OMB to establish a reporting system for executive agencies on the budgeting and

expenditure of funds to combat terrorism. The act also required OMB to collect annual

governmentwide budget and expenditure data on counterterrorism.

OMB Guidelines for

Executive Branch

Agencies to Report on

Spending to Combat

Terrorism
Appendix III

OMB Guidelines and the FBI’s Process for Calculating Funds Budgeted and Used for

Counterterrorism

Page 37 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

3. Physical security of government facilities and employees: Activities to

protect federally owned, leased, or occupied facilities and federal

employees, including high ranking officials, from terrorist acts. Also

includes protection activities for embassies, dignitaries, and other

persons as authorized by federal law or executive order (includes

antiterrorist activities only);

4. Physical protection of national populace and national infrastructure:

Activities to protect the national infrastructure, including air traffic,

railroad, highway, maritime, and electronic distribution systems;

energy production, distribution, and storage facilities (electrical,

natural gas, petroleum); vital services, including banking and finances,

water, and emergency services; and telecommunications systems

(includes antiterrorist activities only);

5. Research and development: Research and development activities to

develop technologies to deter, prevent, or mitigate terrorist acts

(includes antiterrorist activities only).

(B) Collecting the Data:

In September 1997, a data call was issued to all agencies based on the

definitions above. Since most agencies do not have programs and activities

solely devoted to combating terrorism, agencies were allowed to prorate

spending for each of the five categories. To facilitate this process, OMB

staff agreed upon a general framework for assessing an agency’s level of

terrorism-related funding and worked with agencies to determine

appropriate attributions for funding of these activities. Nonetheless, the

two physical security categories raised a difficult analytical problem: how

to differentiate between those physical security measures that combat

terrorism and those that protect against other, nonterrorism-related

threats (e.g., criminal and environmental). Most agencies prorated

expenses for physical security threats based on the likelihood of a terrorist

threat. However, DOD included all of its physical security expenditures as

relevant. OMB will work with DOD, and other agencies, to refine reporting

methodologies for future reports.
Appendix III

OMB Guidelines and the FBI’s Process for Calculating Funds Budgeted and Used for

Counterterrorism

Page 38 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Type of counterterrorism activity Description of the FBI’s criteria and methodology for calculating funding for each

category of activity.

Law enforcement and investigative activities This category includes: 100 percent of FBI field and headquarter investigative terrorism

resources, 100 percent of Nightstalker and other helicopter resources received in 1998,

and 46 percent of the Critical Incident Response Group’s funding. Also included are the

percentages of the total construction and carrier compliance funds appropriated based

on the percentage of FBI resources dedicated to counterterrorism operations each

year, as noted below.

Preparing for and responding to terrorist acts Total funding figures under this category were derived by first calculating the

percentage of time FBI agents generally spent working on counterterrorism cases,

based on information reported in the FBI Time Utilization Record Keeping (TURK)a

System by FBI field agents, and then applying the percentage to the total amount of

resources made available and used by the following FBI Law Enforcement Support

Programs that were identified as used in supporting the FBI’s terrorism investigation

efforts: Training, Recruitment, and Applicant; Forensic Services; Technical Field

Support Services; Information Services; Management and Administration Oversight

less the level captured below under (Physical Security of Government Facilities and

Employees); and Criminal Justice Information Services. The FBI applied the following

percentages, which were derived from analyses of TURK system workload data on the

number of field personnel working terrorism matters compared with total field

personnel, in calculating fiscal years 1995 through 1998 FBI resources dedicated to

counterterrorism under this category:

1995- 9 percent

1996- 12 percent

1997- 12 percent

1998- 14 percent

Physical security of government facilities and

employees

This category includes the associated cost of security equipment and supplies, FBI

guards, and contract guard services.

Physical protection of national populace and

national infrastructure

This category includes the portion of the FBI’s operation of the National Infrastructure

Protection Center and field resources that are used to investigate computer intrusions

in support of the FBI’s role to protect national infrastructures.

Research and development The funding in this category is represented by enhancements for special projects

received in the 1996 and 1997 counterterrorism appropriation amendments. a

The TURK System is used by the FBI to record the proportion of time spent by field agents on

various types of investigative matters such as organized crime, white-collar crime, violent crime, and

counterterrorism. The TURK system is used by the FBI to track and project the use of field resources.

Data derived from the TURK system are only as valid as the information recorded by FBI field agents.

Process Used by the

FBI to Report on

Funds Allocated and

Used for

Counterterrorism

Table III.1: FBI’s Reporting Process
Appendix IV

FBI’s Obligation of Funds Allocated for

Counterterrorism Based on Statutory

Direction or Congressional Guidance

Page 39 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Dollars in thousands

Counterterrorism initiatives Funds allocated

Funds

reprogrammed

Adjusted funds

allocated

Funds

obligated (as of

July 31, 1998)

Remaining

balance (as of

July 31, 1998)

Personnel items

Counterterrorism Center staff $1,905 (742) $1,163 $1,163 $0

Special Surveillance Groups 26,388 0 26,388 26,388 0

Intelligence research specialists 5,373 (2.562) 2,811 2,811 0

General support 963 0 963 950 13

Tactical operation specialists 2,100 (1,181) 919 919 0

Digital telephony support 6,375 (1,315) 5,060 5,025 35

Police officers 4,936 (2,425) 2,511 2,511 0

Total personnel funds $48,040 (8,225) $39,815 $39,767 $48

Nonpersonnel items

Headquarter Command Center

(construction)

10,000 0 10,000 8,722 1,278

Digital telephony equipment 6,500 0 6,500 6,500 0

Tactical operations support 6,600 0 6,600 6,445 155

Forensic Services:

Evidence Response Team

Equipment modernization

2,900

2,100

0

0

2,900

2,100

2,772

1,938

128

162

Hostage/barricade database 1,000 0 1,000 865 135

Computer Investigation and Infrastructure

Threat Assessment Center

7,500 7,500 7,463 37

International Terrorism Travel 725 725 177 548

Total nonpersonnel funds $29,100 $8,225 $37,325 $34,882 $2,443

Total personnel and nonpersonnel

funds

$77,140 0 $77,140 $74,649 $2,491

Note: Congress provided $77,140,000 in no-year funding for the FBI to use to pay for additional

expenses resulting from the April 1995, bombing of a federal building in Oklahoma City and other

counterterrorism efforts, including the establishment of a Domestic Counterterrorism Center through

the Emergency Supplemental Appropriations for Additional Disaster Assistance, for Anti-terrorism

Initiatives, for Assistance In the Recovery from the Tragedy That Occurred at Oklahoma City, and

Rescissions Act, 1995, P.L. 104-19. The FBI’s allocation of these funds for the counterterrorism

initiatives noted was based on this statutory direction and congressional approval of the

reprogramming (effective May 1997) of $7.5 million in funds initially targeted for personnel initiatives

to fund nonpersonnel items for the Computer Investigation and Infrastructure Threat Assessment

Center and (effective June 1996), $725,000 for International Terrorism Travel.

Source: FBI data and congressional source documents.

Dollars in thousands

Counterterrorism initiatives Funds allocated

Funds obligated

(as of July 31, 1998)

Remaining balance

(as of July 31, 1998)

Personnel items

Counterterrorism Center agents $520 $520 $0

Command Center position 1,400 1,400 0

Lab technicians 2,600 2,600 0

Field counterterrrorism

investigation agents

7,950 7,950 0

Total personnel funds $12,470 $12,470 $0

Table IV.1: Fiscal Year 1995 FBI Obligations

Table IV.2: Fiscal Year 1996 FBI Obligations
Appendix IV

FBI’s Obligation of Funds Allocated for Counterterrorism Based on Statutory Direction or

Congressional Guidance

Page 40 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Dollars in thousands

Counterterrorism initiatives Funds allocated

Funds obligated

(as of July 31, 1998)

Remaining balance

(as of July 31, 1998)

Nonpersonnel items

Headquarter Command Center

(construction)

10,000 8,450 1,550

Critical Incident Response Group 1,500 1,123 377

Aviation support 3,000 2,940 60

Forensic Services:

Evidence Response Team

Equipment modernization

Laboratory building (construction)

2,900

9,900

57,089

2,433

9,900

18,973

467

0

38,116

Digital telephony equipment 33,400 33,400 0

Tactical operations 25,000 25,000 0

National Crime Information Center 2000

violent gang/terrorism database

3,500 3,500 0

Total nonpersonnel funds $146,289 $105,719 $40,570

Total personnel and nonpersonnel

funds

$158,759 $118,189 $40,570

Note: Congressional guidance for the use of these funds was provided in the conference report, H.R.

Conf. Rep. 104-378 (1995), as incorporated by reference in H.R. Conf. Rep. 104-537 (1995),

accompanying the Departments of Commerce, Justice, and State, the Judiciary, and Related

Agencies Appropriations Act, 1996, P.L. 104-134. The FBI allocated $158.8 million of its available

resources for the counterterrorism-related initiatives noted above based on their interpretation of

guidance contained in conference report H.R. Conf. Rep. 104-378 (1995) and in House report, H.R.

Rep. 104-196 (1995). The conferees specified program increases for various programs and that about

$57 million be used for the construction of a new FBI laboratory facility. These items were previously

identified in the House report as counterterrorism initiatives.

Source: FBI data and congressional source documents.

Dollars in thousands

Counterterrorism initiatives Funds allocated

Funds obligated

(as of July 31, 1998)

Remaining balance

(as of July 31, 1998)

Personnel items

Counterterrorism staff (headquarters) $463 $463 $0

Infrastructure vulnerability/key assets 16,245 16,245 0

Emerging domestic groups 25,090 25,090 0

Chemical/biological/nuclear

investigations

22,087 22,087 0

Counterterrorism Investigations (field) 14,158 14,158 0

Lookouts (surveillance) 448 448

Computer Investigation and

Infrastructure Threat Assessment Center

2,275 2,275 0

Crisis management unit/ Critical

Incident Response Group

418 418 0

Hazardous Material/Chemical,

Biological, Nuclear Unit laboratory

846 846 0

Explosives unit/laboratory 655 655 0

Washington Field Office police officers 194 194 0

Total personnel funds $82,879 $82,879 0

Nonpersonnel items

Arson/bombing profiling/Critical

Incident Response Group

370 370 0

Table IV.3: Fiscal Year 1997 FBI Obligations
Appendix IV

FBI’s Obligation of Funds Allocated for Counterterrorism Based on Statutory Direction or

Congressional Guidance

Page 41 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Dollars in thousands

Counterterrorism initiatives Funds allocated

Funds obligated

(as of July 31, 1998)

Remaining balance

(as of July 31, 1998)

Counterterrorism Special Operations

Group services

1,000 1,000 0

Crisis management training/Critical

Incident Response Group

1,680 1,680 0

Hostage Rescue Team clothing 1,888 1,888 0

Computer Investigation and

Infrastructure Threat Assessment Center

equipment/ travel/training/contract

support

2,738 2,738 0

Joint Terrorism Task Forces 2,700 2,092 608

Lookout operations (surveillance) 300 300 0

Counterterrorism case-related travel 2,000 2,000 0

Counterterrorism undercover operations 250 250 0

Counterterrorism regional

conference/training

500 500 0

Infrastructure vulnerability database 2,000 2,000 0

Counterterrorism special projects 2,420 2,420 0

Field translation centers 4,780 4,773 7

INTELINK workstations 3,800 3,800 0

State/local participation/

Counterterrorism Center

1,500 1,418 82

X-ray machines/magnetometers 1,350 1,350 0

Computer Analysis Response Teams 1,180 1,180 0

Hazardous Devices School/

Bomb Data Center

735 735 0

Laboratory hazardous material/

chemical, biological, nuclear equipment

6,000 6,000 0

Forensic database development 1,400 1,400 0

Mobile deployable laboratories 1,200 1,085 115

Crisis response radios 400 400 0

Emergency Response Team training 2,000 1,879 121

Advance Render Safe Team equipment 3,000 2,999 1

Evidence Response Team training 400 354 46

FBI academy contract security 416 416 0

Replacement closed circuit

television systems

3,000 3,000 0

Contract guard services - Field 2,000 2,000 0

Total nonpersonnel funds $51,007 $50,027 $980

Total personnel and nonpersonnel

funds

$133,886 $132,906 $980

Note: Congressional guidance for the use of these funds was provided in the conference report, H.R.

Conf. Rep. 104-863 (1996), accompanying the Departments of Commerce, Justice, and State, the

Judiciary, and Related Agencies Appropriations Act, 1997, P.L. 104-208 and subsequent

reprogramming agreements between the FBI and the Appropriations Committees.

Source: FBI data, congressional source documents, and reprogramming agreements.
Appendix IV

FBI’s Obligation of Funds Allocated for Counterterrorism Based on Statutory Direction or

Congressional Guidance

Page 42 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Dollars in thousands

Counterterrorism initiatives Funds allocated

Funds obligated

(as of July 31, 1998)

Remaining balance

(as of July 31, 1998)

Personnel items

Total personnel funds $0 $0 $0

Nonpersonnel items

Computer Analysis Response Teams 900 623 277

Lab weapons of mass destruction 2,000 76 1,924

Bomb technician equipment 1,600 118 1,482

National Security Division (weapons of

mass destruction)

2,500 1,076 1,424

Hostage rescue team weapons of

mass destruction

3,500 748 2,752

Nightstalker replacement 10,000 0 10,000

Hostage rescue team tactical

helicopters

23,200 22,022 1,178

New York aviation surveillance 5,000 0 5,000

Hostage rescue team/SWAT mobility

equipment

2,000 950 1,050

Helicopter pilot training 1,500 501 999

Advance aircraft lease 320 0 320

DOD aircraft lease/training missions 1,500 1,320 180

Total nonpersonnel funds $54,020 $27,434 $26,586

Total personnel and nonpersonnel

funds

$54,020 $27,434 $26,586

Note: Congressional guidance for the use of these funds was provided in the conference report, H.R.

Conf. Rep. 105-405 (1997), accompanying the Departments of Commerce, Justice, and State, the

Judiciary, and Related Agencies Appropriations Act, 1998, P.L. 105-119.

Source: FBI data and congressional source documents.

Table IV.4: Fiscal Year 1998 FBI Obligations
Appendix V

Schedule of the FBI’s Use of Federal Funds

From the Attorney General’s

Counterterrorism Fund (FY 1995-FY 1998)

Page 43 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Fiscal

year Extraordinary event Use of funds

FBI expenditures

as of 7/31/98

Amount of

reimbursement

authorized

1995 Oklahoma City Bombing Overtime $1,485,759 $1,277,000

Travel 2,670,500 2,160,000

Supplies 339,182 350,000

Equipment 1,777,399 1,800,000

Miscellaneousa 752,973 1,438,813

Fiscal year 1995 total $7,025,813 $7,025,813

1996 Oklahoma City Bombing Personnel compensation $1,229,544 $1,600,000

Travel and transportation of

persons

3,470,860 3,385,700

Transportation of things 7,469 21,000

Rent, communications, and

utilities

529,251 1,094,581

Printing and reproduction 483 150,000

Other services 598,111 627,300

Supplies and materials 126,397 165,000

Equipment 145,968 250,000

Total $6,108,083 $7,293,581

Atlanta Olympics Personnel compensation $611,009 $216,000

Travel and transportation of

things

4,436,780 4,060,613

Rent, communications, and

utilities

320,752 509,422

Other services 469,999 184,552

Supplies and materials 222,623 275,000

Equipment 2,430,414 3,299,412

X-ray machine and

two disposal robots

157,928 130,000

Subtotal $8,649,505 $8,674,999

Reimbursement of state and

local law enforcement

(Georgia)

$2,000,000 $2,000,000

Reimbursement of federal

agencies (Agriculture,

Treasury, Drug Enforcement

Administration, Immigration

and Naturalization Service,

and Department of the

Interior)

2,567,626 3,000,000

Subtotal $4,567,626 $ 5,000,000

Total $13,217,131 $13,674,999

Republican National Convention Personnel compensation $45,236 $27,000

Travel and transportation of

persons

85,597 35,000

Rent, communications, and

utilities

1,607 69,000

Other services 15,301 36,000

Supplies and materials 66,352 25,000

Equipment 22,303 138,000

Total $236,396 $330,000
Appendix V

Schedule of the FBI’s Use of Federal Funds From the Attorney General’s Counterterrorism

Fund (FY 1995-FY 1998)

Page 44 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Fiscal

year Extraordinary event Use of funds

FBI expenditures

as of 7/31/98

Amount of

reimbursement

authorized

1996

Cont.

Democratic National Convention Personnel compensation $6,000 $6,000

Travel and transportation of

persons

113,809 11,000

Rent, communications, and

utilities

103 5,000

Supplies and materials 21,802 10,000

Equipment 107,544 169,000

Total $249,258 $201,000

Combating Middle

Eastern terrorism

Mandated by the 1996

Conference Report

 (P.L.104-537)

$3,678,895 $4,000,000

Total $3,678,895 $4,000,000

Fiscal year 1996 total $23,489,763 $25,499,580

1997 State Olympics Law Enforcement

Command

Reimbursement of state and

local law enforcement

(Georgia)

419,887 $814,406

TWA Flight 800 Reimbursement of state and

local law enforcement

(New York)

6,361,000 6,361,000

Oklahoma City Bombing support Reimbursement of state and

local law enforcement

(Denver)

112,000 112,000

Fiscal year 1997 total $6,892,887 $7,287,406

1998 CT Technology Research &

Development

Services 758,902 $10,500,000

Bomb Technician Training at

Hazardous Devices School

Equipment, Services and

Travel

9,675 5,200,000

Fiscal year 1998 totalb$768,577 $15,700,000

Grand total (1995 through 1998) $38,177,040 $55,512,799c

a

Miscellaneous includes rental of space, aircraft-military transport, aircraft fuel, and other services or

equipment.

b

The FBI was subsequently approved to receive an additional $15.9 million in reimbursements from

the Attorney General’s Counterterrorism Fund. About $5.2 million was associated with extraordinary

expenses associated with the Southeast Bombing Task Force, including personnel compensation and

travel; about $2.6 million for additional Oklahoma City Bombing expenses; and about $8.1 million for

extraordinary expenses associated with the bombings in Africa, which occurred in August of 1998.

c

Of this total, $12.3 million was not for the FBI’s use but was passed through the FBI to other federal,

state, and local agencies to reimburse them for expenses incurred in investigating or responding to

specific terrorist incident or carryout specific counterterrorism activities.

Source: Constructed by GAO based on information provided by DOJ’s OIG and verified by FBI and

DOJ’s JMD officials.
Appendix VI

Summary of Funds Obligated by the FBI to

Carry Out Its Counterterrorism Mission, FY

1995-FY 1998 (as of July 31, 1998)

Page 45 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Dollars in thousands

Type of counterterrorism activity

Fiscal year

1995 funds

Fiscal year

1996 funds

Fiscal year

1997 funds

Fiscal year

1998 fundsa

Total

1995-1998

Law enforcement and investigative activitiesb $133,049 $189,683 $233,059 $303,007 $858,798

Preparing for and responding to terrorist acts 62,596 121,257 180,820 199,289 563,962

Physical security of government facilities and

employees

10,359 11,354 22,772 12,339 56,824

Physical protection of national populace and

infrastructure

0 0 11,378 19,043 30,421

Research and development 2,000 2,000 2,420 4,420 10,840

Total $208,004 $324,294 $450,449c538,098 $1,520,845 a

Fiscal year 1998 figures are as of July 31, 1998.

b

Includes construction and carrier compliance funding associated with counterterrorism initiatives.

c

Includes reprogrammings totaling about $20 million in no-year funding from fiscal year 1995.

Source: Constructed by GAO based on FBI data.
Appendix VII

Major Contributors to This Report

Page 46 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism

Daniel C. Harris, Assistant Director

Charles Michael Johnson, Evaluator-in-Charge

Lou V.B. Smith, Evaluator

Michael H. Little, Communications Analyst

Thelma Jones, Writer-Editor

Jena Sinkfield, Administrative Assistant

Denise M. Fantone, Assistant Director

Jan B. Montgomery, Assistant General Counsel

Ann H. Finley, Senior Attorney

General Government

Division, Washington,

D.C.

Accounting and

Information

Management Division,

Washington, D.C.

Office of the General

Counsel, Washington,

D.C.
Page 47 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism
Page 48 GAO-GGD-99-7 FBI’s Use of Federal Funds for Counterterrorism
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