United States Government Accountability Office

Washington, DC 20548 

December 3, 2009 

The Honorable Eliot L. Engel 

Chairman 

The Honorable Connie Mack 

Ranking Member 

Subcommittee on the Western Hemisphere 

Committee on Foreign Affairs 

House of Representatives 

Subject: Status of Funds for the Mérida Initiative 

Violence along the U.S.-Mexico border has escalated in recent years because of drug 

trafficking and related organized crime activities, with over 12,000 fatalities since 

2006. At the same time, gang activity in Central America has increased, further fueling 

the violence within the region. In an effort to confront the challenges posed by 

criminal violence, in October 2007, the United States and Mexico announced the 

Mérida Initiative, a $1.4 billion counternarcotics and anticrime assistance package for 

countries in the region. 

The Mérida Initiative brings a shift in both scale and scope to U.S. assistance to the 

region, particularly Mexico. For example, under Mérida, the average annual 

counternarcotics and related law enforcement assistance to Mexico increased from 

about $57 million from 2000 through 2006 to $400 million for fiscal year 2008. 

Similarly, collaboration between the United States and Mexico has intensified, 

providing an unprecedented opportunity to address the mutual threat of drug 

trafficking and organized crime affecting the region. 

GAO-10-253R Mérida Initiative Funding
In response to your concerns regarding the pace of assistance, we are providing 

information on the status of funding provided under the Mérida Initiative as of 

September 30, 2009. Specifically, we describe how much has been appropriated, 

obligated, and expended. We also identify factors affecting the delivery of major 

equipment, services, and training; and we provide a timeline of key events related to 

the initiative. On the basis of your request, we are also conducting a more 

comprehensive programmatic review of the Mérida Initiative to be completed in the 

summer of 2010.1 

To determine the status of the Mérida Initiative assistance funds, we reviewed the 

Department of State’s (State) spending plans for Mérida; State budget documents; 

bilateral agreements between the United States and Mexico, the United States and 

each of the Central American countries,2

 as well as with Haiti and with the Dominican 

Republic; and interagency agreements between State and other U.S. agencies 

implementing Mérida-related programs. We also interviewed officials at State and the 

U.S. Agency for International Development (USAID). We conducted our work from 

September 21, 2009, to December 3, 2009, in accordance with all sections of GAO’s 

Quality Assurance Framework that are relevant to our objectives. For a more 

complete description of our scope and methodology, see enclosure I. 

Summary 

State funds Mérida Initiative activities primarily from three appropriations accounts.3

 

As of September 30, 2009, State had planned to provide nearly $1.3 billion in 

appropriated funds to the initiative.4

 According to information provided by State, 

about two-thirds, or approximately $830 million, had been obligated by the end of 

 

1

In addition, GAO is currently conducting a review of U.S. efforts to combat gangs with connections to Central 

America and plans to issue its report early next year. 

2

The Central American countries include Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and 

Panama. 

3

These accounts are the International Narcotics Control and Law Enforcement (INCLE) account, the Economic 

Support Fund (ESF), and the Foreign Military Financing (FMF) account. 

4

According to State’s spending plans for the Mérida Initiative, State intends to provide all of these funds toward 

Mérida programs, even though, as of September 30, 2009, State had not yet allotted all of the Fiscal Year 2009 

Omnibus and Fiscal Year 2009 Supplemental appropriations toward Mérida programs. 

Page 2 GAO-10-253R Mérida Initiative Funding 
September, and about 2 percent, or $26 million, had been expended. We identified 

several factors that have affected the timing of the Mérida funding process and the 

delivery of assistance to Mexico and Central America: (1) statutory conditions on the 

funds, (2) challenges in fulfilling administrative procedures, and (3) the need to 

enhance institutional capacity on the part of both recipient countries and the United 

States to implement the assistance. Some equipment and technical assistance have 

been provided, but State could not provide us with a schedule of future assistance 

deliveries. 

Background 

Since the 1970s, the United States has collaborated with Mexican authorities and 

provided assistance to Mexico for counternarcotics programs and activities. 

Similarly, U.S. military and law enforcement agencies have provided assistance to 

Central American countries to combat drug trafficking through the region. The goal 

over the years has been to disrupt the operations of drug traffickers, making it more 

difficult for traffickers to produce and transport illicit drugs to the United States. 

In 2007, we reported that U.S. assistance had helped Mexican counternarcotics 

efforts, such as strengthening Mexico’s capacity to combat illicit drug production and 

trafficking; however, we also noted that significant quantities of illicit drugs 

continued to flow into the United States across the Southwest border.5

 According to 

a recent Congressional Research Service (CRS) report, Mexico continues to be a 

major producer and supplier to the U.S. market of heroin, methamphetamine, and 

marijuana and the major transit country for cocaine sold in the United States. 6

 A 

small number of Mexican drug trafficking organizations (DTO), often referred to as 

drug cartels, control the most significant drug distribution operations along the 

Southwest border. Mexican DTOs are increasingly expanding their operations into 

Central America, a region with less capacity than Mexico to combat these activities. 

 

5

GAO, Drug Control: U.S. Assistance Has Helped Mexican Counternarcotics Efforts, but Tons of Illicit Drugs 

Continue to Flow into the United States, GAO-07-1018 (Washington, D.C.: Aug. 17, 2007). 

6

CRS, Mérida Initiative for Mexico and Central America: Funding and Policy Issues, R40135 (Washington, 

D.C., Aug. 21, 2009). 

Page 3 GAO-10-253R Mérida Initiative Funding 
Since assuming power in December 2006, Mexican President Felipe Calderón has 

made the war on drugs a centerpiece of his administration, mobilizing the Mexican 

military and law enforcement in a series of large-scale counternarcotics operations 

throughout the country. These efforts have targeted areas, particularly along the U.S.-

Mexican border, where DTOs have exerted most influence. The Mexican 

government’s efforts to disrupt drug trafficking operations have generated increased 

violence against law enforcement and other security forces, and appears to have 

intensified conflicts among DTOs over access to lucrative trafficking routes to the 

United States. The result has been a record-breaking escalation of drug-related 

assassinations, kidnappings, and other violent crimes over the past 3 years. 

Recognizing the threat posed by mounting criminal violence, at the Mérida Summit 

held in March 2007, Presidents George W. Bush and Felipe Calderón agreed on the 

need to expand bilateral and regional cooperation to combat crime in the region. The 

result was the development of the Mérida Initiative, a multiyear security assistance 

package for Mexico and Central America. Under the initiative, Mexico was set to 

receive $1.4 billion, but a specific dollar target was not set for Central America. 

Subsequently, Congress added funding for Haiti and the Dominican Republic to 

address concerns about increased drug trafficking in the Caribbean (see fig. 1). 

According to State, as part of the Mérida Initiative discussions, the United States 

agreed to do its part to reduce domestic demand for drugs and to interdict illicit arms 

trafficking and repatriation of drug proceeds. The initiative also complements 

broader efforts by the governments of Mexico and Central America, to engage on 

every front in the battle against organized crime. 

Page 4 GAO-10-253R Mérida Initiative Funding 
Figure 1: Countries Receiving Mérida Initiative Funding 

Dominican 

Republic

Guatemala

Mexico

United States of America

El Salvador

Costa Rica

Panama

Haiti

Honduras

Belize

Nicaragua

Sources: State Department data; Map Resources (Map).

Pacific Ocean

Gulf of Mexico

Caribbean Sea

Characteristics of the Mérida Initiative

The four primary goals of the Mérida Initiative are to (1) break the power and 

impunity of criminal organizations; (2) strengthen border, air, and maritime controls; 

(3) improve the capacity of justice systems in the region; and (4) curtail gang activity 

and diminish the demand for drugs in the region. 

Funding provided under the Mérida Initiative is planned to support 

• nonintrusive inspection equipment, ion scanners and canine units for Mexico 

and Central America to interdict trafficked drugs, arms, cash, and persons; 

• technologies to improve and secure communications systems that collect 

criminal information in Mexico; 

• technical advice and training to strengthen the institutions of justice in 

Mexico, including vetting for the new national police force, case management 

software to track investigations through the criminal system, new offices of 

citizen complaints and professional responsibility, and witness protection 

programs; 

• aircraft to support surveillance and interdiction activities, and rapid response 

of security forces for counternarcotics missions in Mexico; 

Page 5 GAO-10-253R Mérida Initiative Funding 
• equipment, training, and community action programs in Central American 

countries to implement antigang measures and expand the reach of these 

measures; and 

• equipment, training, and logistical support to Central American countries to 

increase maritime domain awareness and interdiction capacity. 

Approximately Two-Thirds of Appropriated Funds Have Been Obligated, but 

Little Has Been Delivered 

As of September 30, 2009, State had planned to provide $1.295 billion in appropriated 

funds to the Mérida Initiative.7 According to data provided by State, nearly twothirds, or $830.42 million, had been obligated and about 2 percent, or $26.27 million, 

had been expended (see table 1). Enclosure II provides the status of funds by 

appropriations account. Various factors have affected the timing of the Mérida 

funding process, including statutory conditions on the funds, challenges meeting 

administrative processes, and the need to build institutional capacity. These factors 

have also affected the delivery of goods and services, and State officials told us most 

programs and equipment obligated under Mérida had not been delivered as of the end 

of September. 

 

7

According to State’s spending plans for the Mérida Initiative, State intends to provide all of these funds toward 

Mérida programs, even though, as of September 30, 2009, State had not yet allotted all of the Fiscal Year 2009 

Omnibus and Fiscal Year 2009 Supplemental appropriations toward Mérida programs. 

Page 6 GAO-10-253R Mérida Initiative Funding 
Table 1: Mérida Funding Status as of September 30, 2009

(Dollars in millions)

Appropriateda

Obligated 

balanceb

Expended 

balance

Mexico 

FY08 Supplementalc$400.0 $375.1 $24.2 

FY09 Omnibus 300.0 41.0 0 

FY09 Supplemental 420.0 336.5 0 

Mexico total $1,120.0 $752.6 $24.2 

Central America 

FY08 Supplementalc$60.0 $57.92 $2.07 

FY09 Omnibus 105.0 14.9 0 

FY09 Supplemental - - - 

Central America total $165.0 $72.82 $2.07 

Caribbeand

FY08 Supplementalc$5.0 $5.0 $0 

FY09 Omnibus 5.0 0 0 

Caribbean total $10.0 $5.0 $0 

Mérida total $1,295.0 $830.42 $26.27 

Source: GAO analysis of State Department data. 

Note: Appropriated funds give budget authority to incur obligations and to make payments from the 

Treasury for specified purposes. Obligations are commitments that create a legal liability of the U.S. 

government for the payment of goods and services ordered or received. Expenditures are funds that 

have been spent. 

a

Includes amounts appropriated “to combat drug trafficking and related violence and organized crime, 

and for judicial reform, institution building, anti-corruption, rule of law activities” in these countries, 

amounts congressionally directed for programs in these countries, and amounts allocated by State to 

fund Mérida activities. For the purposes of this report, we consider “to combat drug trafficking and 

related violence and organized crime, and for judicial reform, institution building, anti-corruption, rule 

of law activities” to be Mérida activities. 

b

Although the Bureau for International Narcotics and Law Enforcement Affairs (INL) reports both its 

bulk obligations and sub-obligations to the Office of Management and Budget, its bulk obligations, as 

the first record of a legal liability to pay for goods and services, are what we are reporting as its 

obligations. Obligated balance refers to unliquidated obligations.

c

In the Fiscal Year 2008 Supplemental Appropriations Act (Pub. L. No. 110-252), Congress appropriated 

$352 million into various accounts “to combat drug trafficking and related violence and organized 

crime, and for judicial reform, institution building, anti-corruption, rule of law activities” in Mexico 

during the first year of the Mérida Initiative, in addition to $48 million for the same purposes during the 

second year of the Mérida Initiative, which is referred to as the Fiscal Year 2009 Supplemental Bridge. 

d

The Caribbean participants in the Mérida Initiative are Haiti and the Dominican Republic. 

Page 7 GAO-10-253R Mérida Initiative Funding 
Funding Process 

The United States and Mexico issued a Joint Statement announcing the Mérida 

Initiative on October 22, 2007, and State first provided funding for the initiative from 

appropriations made available in the Supplemental Appropriations Act of 2008, 

signed on June 30, 20088

 (see fig. 2). This act appropriated $400 million for Mexico 

and $65 million for Central America, Haiti, and the Dominican Republic for Mérida 

activities. Subsequently, the 2009 Omnibus Appropriations Act,9

 signed on March 11, 

2009, appropriated for Mérida activities $300 million for Mexico and $105 million for 

Central America.10 Further, on June 24, 2009, the Supplemental Appropriations Act of 

2009 appropriated $420 million for Mérida activities in Mexico.11

 

Figure 2: Overall Timeline of the Mérida Initiative 

10/07 6/08 9/08 10/08 3/09 4/09 6/09 8/09 9/09

Mérida Initiative 

Joint Statement

Reports to Congress

Congressional actions

First 

appropriation

First funds 

available for 

obligation

Second 

appropriation

Third 

appropriation

Source: GAO analysis of Department of State data.

State’s first 

spending 

plan

First 

Mérida human 

rights report for 

Central America

State’s second 

and third 

spending plans

Second human 

rights report for 

Central America

First human rights 

report for Mexico

 

8

Pub. L. No. 110-252, 122 Stat. 2323. 

9

Omnibus Appropriations, 2009, Pub. L. No. 111-8, § 7045, 123 Stat. 524, 886-887. 

10Haiti and the Dominican Republic were also each allocated $2.5 million, as directed by the accompanying 

Explanatory Statement. 

11Supplemental Appropriations Act, 2009, Pub. L. No. 111-32, Title XI, 123 Stat. 1859, 1893. 

Page 8 GAO-10-253R Mérida Initiative Funding 
Funding for Mérida Initiative programs is derived from three appropriations—the 

International Narcotics Control and Law Enforcement (INCLE) account, the 

Economic Support Fund (ESF), and the Foreign Military Financing (FMF) account.12 

State administers these appropriations accounts and allocates these appropriations to 

different bureaus within State to administer. The Bureau for International Narcotics 

and Law Enforcement Affairs (INL) administers INCLE. The Bureau for Western 

Hemisphere Affairs administers ESF, although USAID manages the actual 

implementation of the account. Similarly, the Bureau for Political-Military Affairs 

administers the FMF account, although the Department of Defense (DOD) manages 

the actual implementation.13 State shares accountability with USAID and DOD for the 

administration of ESF and FMF funds, respectively. Enclosure III provides a 

summary of the planned procurement activity from each account for Mexico, Central 

America, Haiti, and the Dominican Republic under the Mérida Initiative. 

Tracking Mérida Funds Is Difficult 

Mérida assistance, including obligations and expenditures, is difficult to track 

because each of the three State bureaus has a different method for tracking Mérida 

funds. Each uses different budgeting terms as well as separate spreadsheets for the 

Mérida funds it administers, and State currently has no consolidated database for 

these funds. For example, each of the three accounts with funds for Mérida uses a 

different mechanism to reach obligation, and the three bureaus do not all refer to this 

stage of incurring legal liability to pay for services with the term “obligation.” INL 

officials, for instance, told us they consider legal liability incurred at two separate 

stages in their funding process. In the first of these stages, INL designates funds as 

“bulk obligated” once a Letter of Agreement, detailing planned activity and funding 

figures, has been signed with the recipient government. INL officials also told us that 

 

12State also allocated $6.2 million from the Fiscal Year 2008 Supplemental Appropriations Act Nonproliferation, Anti-terrorism, Demining, and Related Programs (NADR) account to fund activities for Mérida 

activities in Central American countries. We reflect this amount in table 1, but given the relatively small size of 

the appropriations and the fact that they did not receive any subsequent NADR appropriations for the Mérida 

Initiative, we are not including NADR in our description of the general funding process for Mérida. 

13While State develops and supervises the programs that provide security assistance to foreign governments, 

once Congress authorizes the programs and funds, DOD implements the programs through the Defense Security 

Cooperation Agency. This includes procuring and transferring military equipment and training. 

Page 9 GAO-10-253R Mérida Initiative Funding 
legal liability to pay is incurred when individual task orders or agreements between 

State and other U.S. agencies providing equipment or services are signed after the 

Letter of Agreement is in place, a stage INL designates as “sub-obligation.” 14 In 

contrast, FMF funds, by law, are considered obligated once they are apportioned to 

DOD.15 It is after obligation, then, that DOD and the recipient country sign a Letter of 

Offer and Acceptance. 

This lack of standardized budgeting terms and different obligation mechanisms 

makes comparing data across accounts difficult. In trying to compile these data, 

State could not provide us with a comprehensive document that contained an 

accurate status of Mérida funds across all accounts. Rather, we received separate 

spreadsheets and reconciled each to determine the status of Mérida funds overall. 

We are continuing to pursue this issue in our ongoing review, and we will report on it 

later. 

Factors Affecting the Timing of the Funding Process

State officials acknowledged that certain factors have affected the availability and 

delivery of funds under the Mérida Initiative, including statutory conditions, 

challenges meeting administrative procedures, and lack of institutional capacity. 

Statutory Conditions 

Congress requires State to submit reports before some of the funds used to finance 

Mérida activities in specific countries can become available for obligation. 

Specifically, some of the funds are not available for obligation until State meets a 

statutory requirement to submit a report detailing Mexican and Central American 

 

14Although INL reports both its bulk obligations and sub-obligations to the Office of Management and Budget, 

its bulk obligations, as the first record of a legal liability to pay for goods and services, are what we are 

reporting as its obligations. 

15See, e.g., Pub. L. No. 111-8, 123 Stat. 856. Funds are apportioned by the Office of Management and Budget 

when it distributes the amounts available for obligation to the fund account. In this case, FMF funds are 

apportioned directly to DOD. 

Page 10 GAO-10-253R Mérida Initiative Funding 
government progress in several human rights areas.16 For example, in the 

Supplemental Appropriations Act for fiscal year 2008, 15 percent of the funds made 

available to Mexico under the INCLE and FMF accounts are not available for 

obligation until State reports on various issues, including whether the government of 

Mexico is ensuring that members of the federal police and military forces who have 

been credibly alleged to have committed violations of human rights are appropriately 

investigated and prosecuted. These human rights reports are sometimes referred to 

as the 15 percent reports, as 15 percent of certain INCLE and FMF funds may not be 

obligated until State submits the reports.17

 

Under other conditions, State may have to comply with notification requirements 

regarding planned uses of appropriations as established by law. For example, under 

22 U.S.C. § 2413(a), State is required to notify Congress regarding the type of 

assistance and level of funding to be provided to individual countries and 

international organizations. This is commonly known as the 653(a) consultation 

process.18 Similarly, in the Supplemental Appropriations Act for fiscal year 2008, 

Congress required State to submit a spending plan for funds appropriated or 

otherwise made available for Mexico within 45 days of enactment of the 

appropriations act.19 To comply with this particular requirement, State must submit a 

detailed spending plan that shall include a strategy with concrete goals, actions to be 

taken, budget proposals, and anticipated results. 

 

16See, e.g., Pub. L. No. 110-252, §§ 1406-07. 

17In the Fiscal Year 2009 Omnibus Appropriations Act, ESF funds for Mexico are also subject to the human 

rights conditionality. In the Fiscal Year 2009 Supplemental Appropriations Act, none of the funds are statutorily 

subject to the human rights conditionality. 

18This process is named after Section 653(a) of the Foreign Assistance Act of 1961, now codified at 22 U.S.C. 

§2413(a). This section states that no later than 30 days after the enactment of a law appropriating funds to carry 

out a provision of this act (other than section 451 or 637 of the Arms Export Control Act), the President shall 

notify Congress of each foreign country and international organization to which the U.S. government intends to 

provide any portion of the funds under such law and the amount of funds under that law, by category of 

assistance, that the U.S. government intends to provide to each. 

19Pub. L. No. 110-252, § 1406. 

Page 11 GAO-10-253R Mérida Initiative Funding 
Administrative Procedures 

Administrative requirements have also affected the pace of delivery of Mérida 

funding. Administrative procedures such as negotiating agreements with beneficiary 

governments, reaching understanding with other U.S. agencies on implementation 

logistics, and putting contracts for equipment out to bid can require considerable 

time. For example, a State official told us it typically takes between 3 to 6 months to 

negotiate and sign a contract for the provision of aircraft. Furthermore, once a 

contract has been signed, the aircraft are then built to the beneficiary country’s 

specification. According to this State official, helicopters typically take 12 to 18 

months to be built, and airplanes require 18 to 24 months. 

U.S. officials have taken some steps to try to expedite some administrative 

procedures for the Mérida Initiative. For example, Administration officials have 

taken measures to expedite the procurement of five Bell helicopters for Mexico to be 

purchased with Fiscal Year 2008 Supplemental funds appropriated to the FMF 

account. According to State, high-level State officials interceded with DOD to 

expedite the process. As a result, the contract negotiation took approximately 3 

weeks. Furthermore, while some manufacturers do not build aircraft until a contract 

is in place, State told us Bell tends to build helicopters prior to contracts and has 

stock available. DOD was able, therefore, to have Bell modify premade stock, cutting 

down the typical construction time. The Letter of Offer and Acceptance for the five 

Bell helicopters was implemented April 22, 2009; the contract was signed on June 1, 

2009; and State officials estimate the helicopters will be delivered by the end of 

December, 2009 (see fig. 3). Thus, instead of a possible 2-year wait from the 

beginning of contract negotiations to the delivery of the helicopters, State officials 

anticipate delivery of the five Bell helicopters will take approximately 8 months. 

However, while the Bell helicopters are an expedited case, the time lapse between 

funds being appropriated and a deliverable on the ground will still be about 18 

months. 

Page 12 GAO-10-253R Mérida Initiative Funding 
Figure 3: Mexico Case Study Timeline for Bell Helicopters 

10/07 6/08 9/08 10/08 4/09 6/09 9/09 12/09

Mérida Initiative 

Joint Statement

Funds 

obligated for 

helicopters

Letter of 

Offer and 

Acceptance 

implemented

Helicopter 

contract 

signed

Source: GAO analysis of Department of State data.

State’s 

first 

spending 

plan

Estimated 

delivery

First 

appropriation 

for $400 million 

to Mexico

Furthermore, State officials told us that in recognition of the lengthy procurement 

and other administrative processes for aircraft, Congress appropriated more than 

what was requested by the Administration for the Fiscal Year 2009 Supplemental 

Appropriations Act so that State would have the funds available to start those 

processes sooner. The Obama administration requested $66 million in INCLE 

assistance for Mexico under Mérida, yet Congress appropriated $420 million for 

Mexico. Of this, $160 million is INCLE funding, which State plans to use in part to 

fund Black Hawk helicopters, and $260 million is FMF funding for expedited aviation 

assistance to the Mexican Navy. 

Institutional Capacity 

In preliminary discussions with U.S. officials, they pointed to the initial lack of 

institutional capacity on the part of both recipient countries and the United States as 

another factor affecting the availability and delivery of funds under Mérida. For 

example, State officials noted that capacity limitations in Central America have 

played a role in the ability to provide funding. Some of these countries have weak 

institutions that may not effectively be able to implement the assistance. Given the 

political situations in Honduras and Nicaragua, for example, some funding has been 

reprogrammed to other countries for non-Mérida programs. With regard to Mexico, 

State officials said that they have worked with the Mexican government to develop a 

more solid foundation for U.S. assistance to be implemented within the country, 

given the significant increase in the size and scope of assistance and the 

unprecedented bilateral nature of program implementation. According to State, U.S. 

assistance, as implemented in Mexico, represents strategic value-added to existing 

Mexican efforts. Further, State maintains that the need to coordinate U.S. inputs with 

Page 13 GAO-10-253R Mérida Initiative Funding 
Mexican programs is being met with the development of implementation working 

groups. This process is intended to improve bilateral and interagency coordination. 

In addition, according to U.S. officials, when the Mérida Initiative was launched, there 

were not sufficient personnel to effectively manage the seven-fold increase in U.S. 

law enforcement related assistance to Mexico on both the U.S. and Mexican sides. 

For example, the U.S. Embassy in Mexico added personnel to handle the day-to-day 

administrative activities of implementing the initiative, and Mexican counterpart 

agencies were required to do the same. Similarly, The Department of Homeland 

Security placed a Customs and Border Protection staff member in Mexico in advance 

of receiving funds under Mérida so its programs could be implemented more quickly 

when the funds are available. However, U.S. officials note that additional time 

required to improve institutional capacity was critical for developing a sound 

framework to provide assistance in the future, and work through changes in both the 

scale and scope of U.S. assistance envisioned under Mérida. We plan to pursue these 

issues in our ongoing review. 

Deliverables Have Been Affected by the Time Frames of the Funding Process 

Because of the factors affecting the funding process described above, few programs 

have been delivered and limited funding has been expended to date. State officials 

told us that as of the end of September 2009, most of the equipment and programs 

that have been obligated under Mérida have not been delivered. While major pieces 

of equipment, such as helicopters, have not reached recipient countries, some 

progress has been made (see encl. IV for the status of selected Mérida Initiative 

deliverables). Approximately 30 vehicles and ion scanners, used to detect the 

presence of drugs, have been delivered to Mexico. In addition, a broad range of 

training, exchange, and technical assistance programs have been completed or 

initiated with the aim of strengthening the capacity of law enforcement and justice 

sector institutions. Further, five Bell helicopters are expected to be delivered to 

Mexico by the end of December 2009, and a purchase order for a set of Black Hawk 

helicopters, which typically take 12-18 months to build, was signed in September 

Page 14 GAO-10-253R Mérida Initiative Funding 
2009.20 Almost all assistance so far has gone to Mexico. While some equipment and 

training have been delivered to Central America, most has not yet been delivered. 

Beyond the few estimations for some helicopters and other equipment listed in 

enclosure IV, State officials could not tell us when they planned to deliver the 

majority of Mérida goods and services. Although State has submitted spending plans 

as required by each of the three Appropriations Acts that provide funding for Mérida, 

none of the plans contain estimated delivery time frames. We cannot, therefore, at 

this point and time determine when most Mérida goods and services will be 

delivered. State officials did tell us, however, that Mérida funding requests to date 

have been focused more on equipment, since the procurement process for equipment 

can be lengthy. Going forward, they said they anticipate funding requests would 

focus more on institution building, particularly law enforcement training. 

Agency Comments 

We provided the Department of State with a draft of this report for its review and 

comment. The agency provided written comments, which are reproduced in 

enclosure V. State also provided additional information on deliverables to Central 

America as well as other technical comments that we incorporated as appropriate. 

In commenting on our report, State emphasized that while Mérida expenditures may 

be below expectations, they have spent considerable time laying the groundwork 

with their Mexican and Central American partners to ensure effective coordination 

and future disbursement of assistance. State also commented that using 

expenditures as a performance measure for U.S.-funded programs in general does not 

take into account the nuances and delays in the procurement and billing cycles, and 

therefore does not fully capture program activity. We agree that laying the 

groundwork for coordination and effective disbursement of assistance is important, 

and we plan to look at the effectiveness of these efforts in our ongoing programmatic 

review of the Mérida Initiative. We also plan to look at State’s performance measures 

 

20The purchase order is for three Black Hawk helicopters with INCLE funds. 

Page 15 GAO-10-253R Mérida Initiative Funding 
for the initiative and their implementation in that review. Our purpose in this report, 

however, was to report on the status of Mérida Initiative funding as of September 30, 

2009. We did not evaluate any performance measures; rather, we reported what State 

had expended and what had been delivered as of the end of September. 

As agreed with your office, we are sending copies of this report to the Secretary of 

State and interested congressional committees. In addition, the report will be 

available at no charge on GAO’s Web site at http://www.gao.gov. 

If you or your staff have any questions about this report, please contact me at 

(202) 512-4268 or fordj@gao.gov. Contact points for our offices of Congressional 

Relations and Public Affairs may be found on the last page of this report. GAO staff 

who made major contributions to this report are listed in enclosure VI. 

Jess T. Ford 

Director 

International Affairs and Trade 

Page 16 GAO-10-253R Mérida Initiative Funding 
Enclosure I: Scope and Methodology

To describe the status of the Mérida Initiative funding, we reviewed the three laws 

that appropriated funds that the Department of State (State) allocated to the 

initiative, primarily from three accounts—the International Narcotics Control and 

Law Enforcement (INCLE) account, the Economic Support Fund (ESF), and the 

Foreign Military Financing (FMF) account.1

 We collected data from each bureau at 

State that administers those accounts—International Narcotics and Law 

Enforcement, Western Hemisphere Affairs, and Political-Military Affairs. We also 

collected data from the U.S. Agency for International Development (USAID), which 

actually implements ESF. Each bureau administers the accounts separately using its 

own spreadsheets and budgeting terms. Although this made it difficult, we took 

several steps to attempt to gather complete, accurate, and comparable data on the 

status of funds. First, we interviewed officials in each bureau on their budgeting 

processes and terms to determine the best method for collecting comparable data 

across each account. Second, we carefully reviewed the data, including detailed line 

item information by project, and consulted with State officials on the accuracy and 

completeness of the information. When we found discrepancies, such as data entry 

errors, we brought them to State’s attention and worked with State officials to 

correct the discrepancies. Finally, where possible, we checked the data against other 

information such as budget spreadsheets arranged either by project or by country, 

project plans detailing estimated expenses, and implementation agreements between 

State and other U.S. agencies. Furthermore, to describe the funding process and 

factors affecting the timing of the process as well as of delivery of goods and services 

under the initiative, we interviewed State and USAID officials, analyzed data provided 

to us, and reviewed several documents. 

 

1

State also allocated $6.2 million from the Fiscal Year 2008 Supplemental Appropriations Act Nonproliferation, Anti-terrorism, Demining, and Related Programs (NADR) account to fund activities for Mérida 

activities in Central American countries. We reflect this amount in table 1, but given the relatively small size of 

the appropriations and the fact that they did not receive any subsequent NADR appropriations for the Mérida 

Initiative, we are not including NADR in our description of the general funding process for Mérida. 

Page 17 GAO-10-253R Mérida Initiative Funding 
As mentioned above, trying to compare data across accounts from separate 

spreadsheets was difficult. The various steps we took, however, led us to determine 

the data were sufficiently reliable for our purpose. 

We conducted our work from September 21, 2009, to December 3, 2009, in 

accordance with all sections of GAO’s Quality Assurance Framework that are 

relevant to our objectives. The framework requires that we plan and perform the 

engagement to obtain sufficient and appropriate evidence to meet our stated 

objectives and to discuss any limitations in our work. We believe that the 

information and data obtained, and the analysis conducted, provide a reasonable 

basis for any findings and conclusions. 

Page 18 GAO-10-253R Mérida Initiative Funding 
Enclosure II: Funding Tables by Country and Account 

Table 2: Mérida Funding Status for Mexico, by Account, as of September 30, 

2009 

(Dollars in millions)

Appropriateda

Obligated 

balanceb

Expended 

balance

Mexico 

International Narcotics Control and Law Enforcement (INCLE) 

FY08 Supplementalc$263.5 $252.6 $10.2

FY09 Omnibus 246.0 0 0

FY09 Supplemental 160.0 76.5 0

Total INCLE $669.5 $329.1 $10.2

Economic Support Fund (ESF) 

FY08 Supplementalc $20.0 $19.3 $0.7

FY09 Omnibus 15.0 2.0 0

FY09 Supplemental 0 0 0

Total ESF $35.0 $21.3 $0.7

Foreign Military Financing (FMF) 

FY08 Supplementalc$116.5 $103.2 $13.3

FY09 Omnibus 39.0 39.0 0

FY09 Supplemental 260.0 260.0 0

Total FMF $415.5 $402.2 $13.3

Mexico total $1,120.0 $752.6 $24.2

Source: GAO analysis of State Department data. 

Note: Appropriated funds give budget authority to incur obligations and to make payments from the 

Treasury for specified purposes. Obligations are commitments that create a legal liability of the U.S. 

government for the payment of goods and services ordered or received. Expenditures are funds that 

have been spent.

a

Includes amounts appropriated “to combat drug trafficking and related violence and organized crime, 

and for judicial reform, institution building, anti-corruption, rule of law activities” in these countries, 

amounts congressionally directed for programs in these countries, and amounts allocated by State to 

fund Mérida activities. For the purposes of this report, we consider “to combat drug trafficking and 

related violence and organized crime, and for judicial reform, institution building, anti-corruption, rule 

of law activities” to be Mérida activities. 

b

Although the Bureau for International Narcotics and Law Enforcement Affairs reports both its bulk 

obligations and sub-obligations to the Office of Management and Budget, its bulk obligations, as the 

first record of a legal liability to pay for goods and services, are what we are reporting as its 

obligations. Obligated balance refers to unliquidated obligations. 

c

In the Fiscal Year 2008 Supplemental Appropriations Act (Pub. L. No. 110-252), Congress appropriated 

$352 million into various accounts “to combat drug trafficking and related violence and organized 

crime, and for judicial reform, institution building, anti-corruption, rule of law activities” in Mexico 

during the first year of the Mérida Initiative in addition to $48 million for the same purposes during the 

second year of the Mérida Initiative, which is referred to as the Fiscal Year 2009 Supplemental Bridge. 

Page 19 GAO-10-253R Mérida Initiative Funding 
Table 3: Mérida Funding Status for Central America, by Account, as of 

September 30, 2009

(Dollars in millions)

Appropriateda

Obligated 

balanceb

Expended 

balance

Central America 

International Narcotics Control and Law Enforcement (INCLE) 

FY08 Supplemental $24.8 $23.2 $1.7

FY09 Omnibus 70.0 0 0

Total INCLE $94.8 $23.2 $1.7

Economic Support Fund (ESF) 

FY08 Supplemental $25.0 $24.85 $0.05

FY09 Omnibus 18.0 0 0

Total ESF $43.0 $24.85 $0.05

Foreign Military Financing (FMF) 

FY08 Supplemental $4.0 $3.98 $0.02

FY09 Omnibus 17.0 14.9c0

Total FMF $21.0 $18.88 $0.02

Non-proliferation, Anti-terrorism, Demining, and Related Programs (NADR) 

FY08 Supplemental $6.2 $5.89 $0.3

FY09 Omnibus 0 0 0

Total NADR $6.2 $5.89 $0.3

Central America total $165.0 $72.82 $2.07

Source: GAO analysis of State Department data. 

Note: Appropriated funds give budget authority to incur obligations and to make payments from the 

Treasury for specified purposes. Obligations are commitments that create a legal liability of the U.S. 

government for the payment of goods and services ordered or received. Expenditures are funds that 

have been spent. 

a

Includes amounts appropriated “to combat drug trafficking and related violence and organized crime, 

and for judicial reform, institution building, anti-corruption, rule of law activities” in these countries, 

amounts congressionally directed for programs in these countries, and amounts allocated by State to 

fund Mérida activities. For the purposes of this report, we consider “to combat drug trafficking and 

related violence and organized crime, and for judicial reform, institution building, anti-corruption, rule 

of law activities” to be Mérida activities. 

b

Although the Bureau for International Narcotics and Law Enforcement Affairs reports both its bulk 

obligations and sub-obligations to the Office of Management and Budget, its bulk obligations, as the 

first record of a legal liability to pay for goods and services, are what we are reporting as its 

obligations. Obligated balance refers to unliquidated obligations. 

c

Given the political situations in Honduras and Nicaragua, approximately $2.1 million of appropriate 

funds has been reprogrammed to other countries for non-Mérida programs.

Page 20 GAO-10-253R Mérida Initiative Funding 
Table 4: Mérida Funding Status for Haiti and the Dominican Republic, by 

Account, as of September 30, 2009 

(Dollars in millions) 

Appropriateda

Obligated 

balanceb

Expended 

balance

Caribbeanc

International Narcotics Control and Law Enforcement (INCLE) 

FY08 Supplemental $5.0 $5.0 $0

FY09 Omnibus 5.0 0 0

Caribbean total $10.0 $5.0 $0

Source: GAO analysis of State Department data. 

Note: Appropriated funds give budget authority to incur obligations and to make payments from the 

Treasury for specified purposes. Obligations are commitments that create a legal liability of the U.S. 

government for the payment of goods and services ordered or received. Expenditures are funds that 

have been spent. 

a

Includes amounts appropriated “to combat drug trafficking and related violence and organized crime, 

and for judicial reform, institution building, anti-corruption, rule of law activities” in these countries, 

and amounts congressionally directed for programs in these countries to fund Mérida activities. For 

the purposes of this report, we consider “to combat drug trafficking and related violence and 

organized crime, and for judicial reform, institution building, anti-corruption, rule of law activities” to 

be Mérida activities. 

b

Although the Bureau for International Narcotics and Law Enforcement Affairs reports both its bulk 

obligations and sub-obligations to the Office of Management and Budget, its bulk obligations, as the 

first record of a legal liability to pay for goods and services, are what we are reporting as its 

obligations. Obligated balance refers to unliquidated obligations.

c

The Caribbean participants in the Mérida Initiative are Haiti and the Dominican Republic.

Page 21 GAO-10-253R Mérida Initiative Funding 
Enclosure III: Summary of Planned Procurement by Account 

Table 5: Planned Procurement, Mexico 

Account Major area of focus 

International 

Narcotics 

Control and 

Law 

Enforcement 

(INCLE) 

INCLE funds will support the development of the government of Mexico’s 

(GOM) institutional capacity to detect and interdict illicit drugs, explosives 

and weapons, trafficked/smuggled persons, and individuals seeking to enter 

the United States to conduct criminal activities. For example, INCLE funds 

will be used to acquire three Black Hawk helicopters for Mexico’s civilian 

Public Security Secretariat (SSP) to improve air capacity to deploy federal 

police agents quickly. INCLE funds will also be used to expand and 

modernize information system capacity. For instance, INCLE funding will be 

used to improve inspection and security systems for key mail facilities, 

provide secure communications for law enforcement agencies, and enhance 

data management and analysis capabilities of the Mexican intelligence 

service (CISEN). Furthermore, INCLE will be used to purchase mobile 

nonintrusive inspection equipment to improve overall law enforcement 

infrastructure. 

Foreign 

Military 

Financing 

(FMF) 

FMF funds will be used to improve surveillance and land and maritime 

interdictions. FMF funds will purchase up to four CASA 235 maritime patrol 

aircraft, up to five Black Hawk helicopters, and up to eight Bell Helicopters 

to support efforts of the Mexican Navy (SEMAR) and Mexican Army/Air 

Force (SEDENA) to control their national territory. Funding for the aircraft 

also includes transition training (training for experienced pilots to fly a new 

type of aircraft) for Mexican pilots, and initial spare parts and maintenance 

packages. FMF funds will also purchase ion scanners to help detect illicit 

drug and arms trafficking through remote areas of Mexico and support 

GOM’s effort to mount effective interdiction operations on land routes. 

Economic 

Support 

Fund (ESF) 

ESF funds will be used to promote rule of law and human rights by 

supporting Mexico’s justice sector reforms and respect for human rights. 

For example, to assist in implementing the justice sector reforms, ESF 

funding will support professional peer exchanges between Mexican and U.S. 

judges at the federal and state levels. Funding will also support technical 

assistance to help Mexican prosecutors’ offices as they implement justice 

sector reforms at the state and federal levels. In addition, funding will 

provide training and technical support to justice sector personnel (judges, 

prosecutors, and public defenders) and human rights nongovernmental 

organizations (NGO) to expand the use of alternative case resolutions such 

as first offender’s programs, mediation, and restorative justice. Moreover, 

funding will provide training to human rights NGOs and civil society on the 

code of criminal procedures, as well as on international, regional, and 

national laws protecting human rights in order to build NGO capacity to 

properly monitor and document human rights violations. 

Source: State Department data. 

Page 22 GAO-10-253R Mérida Initiative Funding 
Table 6: Planned Procurement, Central America, Haiti, and the Dominican 

Republic 

Account Major area of focus 

International 

Narcotics 

Control and 

Law 

Enforcement 

(INCLE) 

INCLE funds will strengthen the ability of law enforcement institutions to 

fight crime, violence, and trafficking in drugs and arms. For instance, it will 

support developing law enforcement units, such as vetted units and drug 

information systems, to fight drug trafficking organizations. INCLE funds 

will also support an expansion of a prison management initiative, technical 

assistance to enhance prosecutorial capacity, and encourage cooperation 

among prosecutors, judges, and police. In addition, INCLE funds will fund a 

pilot program in Panama and Guatemala for mobile inspection x-ray units in 

vans equipped with disassembly tools and other inspectional equipment to 

intercept smuggled narcotics, weapons, bulk cash, and other contraband. 

INCLE funds will also support the Haitian and Dominican Republic national 

police as they transition to professional civilian law enforcement agencies as 

well as capabilities for interdicting illegal trafficking across their borders. In 

addition, these funds will support the Dominican Republic’s recent transition 

into a new judicial system with training and assistance in criminal 

investigation and procedures. 

Foreign 

Military 

Financing 

(FMF) 

FMF funds will strengthen the maritime interdiction capabilities of Central 

American countries. FMF funds will be used for new interceptor boats, 

refurbishing existing patrol and interdiction boats, and communication 

equipment, and related training and ancillary equipment, and initial 

maintenance packages, including spare parts. For example, for Costa Rica 

FMF funding will be used to purchase maritime operations and maintenance 

training, radios, and other communications equipment that will facilitate 

better communication among Costa Rican Coast Guard entities, but would 

also facilitate combined operations with U.S. and regional forces. 

Economic 

Support 

Fund (ESF) 

ESF funds will be used to promote economic and social development and 

good governance in targeted low-income areas, including rural communities 

vulnerable to drug trafficking, gang violence, and organized crime. ESF 

funds in Central America will contribute to breaking the power and impunity 

of criminal organizations, strengthening border controls, improving the 

capacity of justice systems and curtailing gang activity, and reducing the 

demand for drugs. 

Nonproliferation, 

Antiterrorism, 

Demining, 

and Related 

Programs

(NADR) 

NADR funds will be used to deter and detect drug smuggling, bulk currency 

smuggling, and other transborder criminal activity. For example, NADR 

funds will train and equip personnel and border crossing in all seven Central 

American countries as part of the Mérida Initiative and provide two mobile 

inspection points per country. In addition, to counter arms trafficking in the 

region, funds will support the implementation of the Spanish-language 

version of eTrace software that will enable law enforcement officials to trace 

suspects to firearms and identify patterns in international arms trafficking. 

Source: State Department data. 

Page 23 GAO-10-253R Mérida Initiative Funding 
Enclosure IV: Status of Selected Mérida Initiative Deliverables, by Strategic 

Objective, as of September 2009 

 

Mérida strategic 

objective 

Deliverable status 

Equipment 

26 armored vehicles, delivered May 2009 

30 ion scanners, delivered September 2009

5 x-ray vans, delivered August 2009

5 Bell helicopters, estimated delivery December 2009

Training 

Break the power 

and impunity of 

criminal 

organizations 

6 canine trainers trained October 2009

Equipment 

Document verification software, delivered September 2009 

Rescue communication equipment, estimated delivery October 2009

Training 

Assist the 

governments of 

Mexico and Central 

America in 

strengthening 

border, air, and 

maritime controls 

Workshop to Combat Illicit Trafficking in Arms, conducted July 2009a

Equipment 

Forensic lab equipment delivered

14 drug test kits delivereda 

Range of police equipment procured, estimated delivery between now 

and February 2010a

Training 

Various types of training provided to law enforcement and 

correctional officials 

Example: 1,300 Mexican Secretariat of Public Security (SSP) 

investigators trained 

Judicial reform 

Various types of judicial exchanges, training, and technical assistance 

conducted 

Example: technical assistance provided to the Mexican Office of the 

Attorney General in the design and implementation of a modern and 

efficient case management and court administration system 

Human rights 

Improve the 

capacity of justice 

systems in the 

region 

United Nation’s human rights project, inaugurated July 2009 

Drug demand reduction 

Various types of training and agreements finalized 

Example: pledge of funds to certify drug counselors and strengthen 

the national accreditation board of Mexico. 

3 Vice-Ministerial conferencesa 

Installation of Automated Fingerprint Identification System in El 

Salvadora

Exchange 

Curtail gang activity 

in Mexico and 

Central America 

and diminish the 

demand for drugs in 

the region 

52 students selected for U.S. study, Summer 2009a

Source: GAO analysis of State Department data. 

Note: Unless otherwise noted, Mexico is the recipient of all deliverables. 

a

Applies to Central America.

Page 24 GAO-10-253R Mérida Initiative Funding 
Enclosure V: Comments from the Department of State 

Page 25 GAO-10-253R Mérida Initiative Funding 
See 

comment 1. 

Page 26 GAO-10-253R Mérida Initiative Funding 
See 

comment 2. 

Page 27 GAO-10-253R Mérida Initiative Funding 
GAO Response to Agency Comments 

The following are GAO’s comments on the Department of State’s letter. 

1. We discuss in our report the details of the progress that has been made toward the 

procurement of the Bell helicopters. The contract, however, is in the process of 

being executed and the helicopters have not yet been delivered. We were asked 

to report on the status of Mérida funding as of September 30, 2009. 

2. In our report, we note both the delivery of nonintrusive inspection equipment and 

training provided. 

Page 28 GAO-10-253R Mérida Initiative Funding 
Page 29 GAO-10-253R Mérida Initiative Funding 

Enclosure VI: Contact and Staff Acknowledgments 

GAO Contact 

Jess T. Ford (202) 512-4268 or fordj@gao.gov. 

Acknowledgments 

In addition to the contact named above, Juan Gobel, Assistant Director; Marc 

Castellano; Grace Lui; Jacqueline Nowicki; Marisela Perez; Erin Saunders Rath; and 

Judith Williams made key contributions to this report. 

(320715) 
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