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Cooperative Threat Reduction Program Annual Report (02-DEC-02,	 
GAO-03-341R).							 
                                                                 
Section 1308 of the National Defense Authorization Act for Fiscal
Year 2001 requires the Comptroller General to provide Congress	 
with an assessment of the Department of Defense's annual report  
on the Cooperative Threat Reduction (CTR) program within 90 days 
of the submission of the annual report to Congress. The 	 
Department of Defense submitted its CTR annual report for Fiscal 
Year 2002 to Congress on September 3, 2002 almost 19 months after
the submission date mandated by law. GAO found that the report	 
(1) did not clearly set forth future funding data required by	 
Congress, (2) did not include certain important planning	 
elements, (3) in some instances asserted the use of a more	 
rigorous methodology than was actually used, and (4) incorporated
some but not all prior GAO recommendations.			 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-03-341R					        
    ACCNO:   A05659						        
  TITLE:     Cooperative Threat Reduction Program Annual Report       
     DATE:   12/02/2002 
  SUBJECT:   Noncompliance					 
	     Program evaluation 				 
	     Reporting requirements				 
	     DOD Cooperative Threat Reduction Program		 

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GAO-03-341R

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report

United States General Accounting Office Washington, DC 20548

December 2, 2002 The Honorable Carl Levin Chairman The Honorable John
Warner Ranking Minority Member Committee on Armed Services United States
Senate

The Honorable Bob Stump Chairman The Honorable Ike Skelton Ranking
Minority Member Committee on Armed Services House of Representatives

Subject: Cooperative Threat Reduction Program Annual Report

Section 1308( e) of the National Defense Authorization Act for Fiscal Year
2001 (P. L. 106- 398) requires the Comptroller General to provide Congress
with an assessment of the Department of Defense*s annual report on the
Cooperative Threat Reduction (CTR) program within 90 days of the
submission of the annual report to Congress. The Department of Defense
submitted its CTR annual report for Fiscal Year 2002 to Congress on
September 3, 2002, almost 19 months after the submission date mandated by
law.

On November 22, 2002, we briefed members of your staff on our assessment
of the CTR annual report for Fiscal Year 2002. In summary, we found that
the report (1) did not clearly set forth future funding data required by
Congress, (2) did not include certain important planning elements, (3) in
some instances asserted the use of a more rigorous methodology than was
actually used, and (4) incorporated some but not all prior GAO
recommendations. We also noted that we had not assessed the validity of
the data contained in the annual report because the Department of Defense
had not updated most of that data prior to the report*s late submission.

We performed our work in Washington, D. C., from September 2002 through
November 2002 in accordance with generally accepted government auditing
standards.

We obtained comments on the information contained in the enclosure from
the Director of the Department of Defense*s CTR Policy Office. In general
he concurred with our findings.

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 2 -
- - - We

are sending copies of this report to the Honorable Donald Rumsfield,
Secretary of Defense, and interested congressional committees. The report
will also be available at no charge on GAO*s home page at http:// www.
gao. gov.

If you or your staff have any questions regarding this assessment, please
contact me at (202) 512- 8979. James Shafer, Beth Anne Hoffman Leon, Hynek
Kalkus, Pierre Toureille, and Lynn Cothern also made key contributions to
this report.

Sincerely, Joseph Christoff Director, International Affairs and Trade

Enclosure

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 3
Enclosure Enclosure

Cooperative Threat Reduction Annual Report for FY 2002

Briefing to the Staffs of the Armed Services Committees

November 22, 2002

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 4
Enclosure Enclosure

2

Overview

*Background  GAO Objectives Results

 Five Year Plan  Accountability Report

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 5
Enclosure Enclosure

3

 DOD*s Cooperative Threat Reduction (CTR) program helps former Soviet
states in reducing threat of weapons of mass destruction.

 In mid- 1990s, Congress directed DOD to report annually on CTR multiyear
planning and accountability efforts.

 Multiyear plan for DOD*s use of the amounts provided for CTR; intended
to guide preparation of annual budgets

 due with budget justification materials

 Report on efforts to ensure that CTR aid was being accounted for and
used as intended

 due January 31 st of each year

 GAO assessment required 30 days after report*s submission

Background Congress began requiring annual Cooperative Threat Reduction
reports on planning and accountability in the mid- 1990s

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 6
Enclosure Enclosure

4

Congress consolidated CTR reporting requirements in 2000 to facilitate
more timely submission of data

 DOD typically submitted CTR planning and accountability reports to
Congress months after they were due.

 Congress consolidated CTR reporting requirements in 2000.

 Cited need for more timely submission of data

 Required that the new CTR annual report include

 plan setting forth amount and purpose of funding to be provided over
next 5 years; to guide preparation of annual budgets

 section describing efforts to ensure that CTR aid is being accounted for
and used as intended

 Required that annual report be submitted first Monday of February

 Congress also required GAO to provide Congress with its assessment of
the five- year plan and the accountability section within 90 days of the
annual report*s submission.

Background

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 7
Enclosure Enclosure

5

First consolidated CTR annual report submitted 19 months late

 First consolidated CTR annual report (for fiscal year 2002) was due
February 5, 2001.

 DOD submitted the FY 2002 annual report on September 3, 2002.

 Information generally not updated beyond January 2001 information cut
off date

 According to DOD officials, late submission was result of

 Questions regarding out year budgets and program scope, due in part to
new administration*s review of CTR program

 Absence of confirmed DOD officials during the transition

 Relatively low priority

 September 11 aftermath

Background

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 8
Enclosure Enclosure

6

GAO Objectives

 Determine whether five- year plan addresses congressional requirements
and federal strategic planning guidance

 Determine whether accountability section addresses congressional
requirements and past GAO recommendations

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 9
Enclosure Enclosure

7

Results in Brief

 FY 2002 five- year plan

 does not clearly address all congressional requirements (does not
clearly not set forth the amount of CTR funding to be provided over 5
years)

 does not include important planning elements

 Accountability section

 addresses the elements required by Congress

 asserts use of more rigorous methodology than actually used

 incorporates some but not all prior GAO recommendations

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 10
Enclosure Enclosure

8

Plan does not clearly set forth amount of CTR funding

 Plan does not clearly set forth the amount of funding that DOD planned
to provide over the five- year term of the plan.

 Amount must be deduced from summary table; $2. 173 billion was planned
to have been provided over FY 2003- 2007.

 Previous CTR multiyear plan (FY 2001) had clearly presented fiveyear
funding amount by fiscal year.

 According to DOD officials, DOD comptroller was unwilling to endorse a
clearer presentation in the FY 2002 five- year plan, due to uncertainty
regarding program*s out year budgets and scope.

Results: Five-Year Plan

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 11
Enclosure Enclosure

9

Plan does not systematically incorporate key federal strategic planning
elements

 Government Performance and Results Act (GPRA) strategic plans should
include

 Description of external factors beyond the agency*s control that could
affect its achievement of program goals

 Annual performance goals that are based on objective measures of results
and linked to long- term goals

 Plans for evaluations to help establish or revise program goals

 Such elements could help guide preparation of annual CTR budgets but are
not systematically incorporated in the five- year CTR plan sent to
Congress.

 GPRA- related plan is being developed for internal use by CTR
implementing agency (Defense Threat Reduction Agency).

Results: Five-Year Plan

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 12
Enclosure Enclosure

10

Addresses the elements required by Congress

 Describes the condition and location of CTR- furnished equipment

 Discusses the status of contracts and services and methods to ensure
intended use

 Determines whether assistance provided has been used for the purpose
intended

 Describes the audits and examinations and other such efforts planned for
the next year

Results: Accountability Section

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 13
Enclosure Enclosure

11

Asserts use of more rigorous methodology than actually used

 Asserts the use of a statistically significant sample on an audit and
examination (A& E) visit

 Statistically significant sample not used on A& E visit

Results: Accountability Section

GAO- 03- 341R Cooperative Threat Reduction Program Annual Report Page 14
Enclosure Enclosure

(320156)

12

The report incorporates some, but not all, prior GAO recommendations

 Recommendations regarding the completeness of information provided (from
GAO*s 2000 report) have been incorporated

 Listing of services included in report

 Listing of assistance is cumulative from start of program

 Recommendations regarding the planning and scope of A& Es (from GAO*s
2001 report) are not reflected

Results: Accountability Section
*** End of document. ***
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