Audit Report 97-31A, Message From The Chief Financial Officer, Overview of the Reporting Entity

Overview of the Reporting Entity
DRUG ENFORCEMENT ADMINISTRATION
Fiscal Year 1996

The mission of the Drug Enforcement Administration (DEA) is to enforce the controlled substances laws and regulations of the United States and to bring to the criminal and civil justice system of the United States or any other competent jurisdiction, those organizations and principal members of organizations involved in the growing, manufacturing, or distribution of controlled substances appearing in or destined for illicit traffic in the United States; and to recommend and support non-enforcement programs aimed at reducing the availability of illicit controlled substances on the domestic and international markets. In carrying out its mission, the DEA is the lead agency responsible for the development of overall federal drug enforcement strategy, programs, planning, and evaluation. The DEA's primary responsibilities include:

The Drug Enforcement Administration (DEA) has a long and proud history. Today's DEA is built on the successful tradition established by the Federal drug agencies, depicted below, that preceded, and were ultimately united, as DEA in 1973. A more detailed discussion of this evolution is located in the Supplemental Financial and Management Information Section.

The Drug Enforcement Administration (DEA) is a component of the Department of Justice, like the FBI, U.S. Marshals Service, and Immigration and Naturalization Service. It is headed by an Administrator, who is appointed by the President, and confirmed by the Senate. The chart below depicts the Headquarters offices that report to the Deputy Administrator and the Administrator, and the individuals who head these offices. In the Supplemental Financial and Management Information Section are charts, maps and detailed lists which present the core of DEA in 20 Domestic Divisions, and 70 Foreign Offices in 51 countries throughout the world. DEA also has detailed Tables of Organization which show where every authorized position is in each of these offices.

DEA's resources, in both dollars and positions, have continued to grow over the last few years. Funds and the associated positions are coming from a wider variety of sources than in previous years, making tracking and accountability more challenging. Examples include appropriations for the Violent Crime Reduction Program (VCRP), the Drug Diversion Control Fund (DDCF), and the Interagency Crime and Drug Enforcement Task Force (ICDETF), and the Assets Forfeiture Fund (AFF). The chart below provides summary information:

Note: The Reimbursable amounts for FY 1994 through FY 1996 are actual signed agreements with DEA and other agencies.

DEA uses myriad approaches, in concert with other Federal, State, and local law enforcement agencies, to develop and implement enforcement programs that will ensure safer communities and neighborhoods throughout the United States. Our primary obligation, as the nation's lead drug law enforcement agency, is to protect American citizens from drug traffickers and the violence and disruption they inflict on society. We will incorporate programs that cover the entire drug trafficking continuum -- from producing countries, through the transit zones, major cities, and onto the streets of American communities.

We will concurrently investigate, arrest, and prosecute major organizational leaders, and violent drug gang members; and seize the assets of these criminals to deprive them of their ill-gotten gains. DEA will implement effective, cooperative drug law enforcement programs with all agencies sharing those responsibilities; unifying resources, avoiding duplication, and using imaginative techniques at all levels -- local, regional, national, and international. We will intensify our demand reduction program to combat the rise in teenage drug abuse and its associated escalating violent crime.

DEA will continue to provide drug law enforcement training programs with an emphasis on State and local participation. In addition, we are redesigning our infrastructure, especially our management and support systems.

DEA's FY 1994 Strategic Management Plan (SMP) provides the blueprint for accomplishing the agency's goals and objectives. The Administrator's Vision is a key component of this plan, followed by strategic goals and objectives, tied to budget resources to accomplish them, and performance measures to gauge progress. These components taken together form DEA's base for meeting the mandates of the CFO Act of 1990, and the Government Performance Result Act (GPRA) of 1993, for linking resource planning and performance measures.

STRATEGIC GOALS AND OBJECTIVES

The Southwest Border Project was one of the major initiatives highlighted in DEA's FY 1998 budget submission which included information on DEA's FY 1996 accomplishments. Some major performance measures for this objective which are performed jointly with other Federal, State and local law enforcement agencies follow.

Following are the major achievements resulting from the Southwest Border Project initiative.

Southwest Border Project Achievements (FY 1996)
Cases Developed	Arrests	Kilograms of cocaine seized	Kilograms of heroin seized	Kilograms of marijuana seized	Kilograms of methamphetamine seized	Clandestine laboratories seized	Title III Facility Intercepts ordered
3,312	5,142	7,711	51	136,574	264	136	227

The above-stated achievements of the SW Border initiative are incorporated in the overall FY 1996 domestic enforcement operations output and outcome results reported in the DEA Performance Measurement Table, which is included in the Supplemental Financial and Management Information Section.

Prevent the diversion of controlled substances and control the distribution of chemicals used to manufacture illicit drugs.

The following achievements of DEA's diversion program are incorporated in the overall FY 1996 diversion output and outcome results reported in the DEA Performance Measurement Table, which is part of Supplemental Financial and Management Information Section.

Diversion Program Achievements (FY 1996)
Registrations Processed	Arrests	Convictions
317,281	470	253

Cooperate and coordinate with other Federal, State, local, and foreign law enforcement and drug control officials:

The following achievements of DEA's foreign, Federal, and State and local cooperative programs are incorporated in the overall FY 1996 diversion output and outcome results reported in the DEA Performance Measurement Table, which is part of Supplemental Financial and Management Information Section.

Domestic, Foreign, and State and Local Programs Achievements (FY 1996)
Domestic Arrests	State and Local Arrests	State and Local Cooperative Arrests	Foreign Cooperative Arrests	Marijuana Plants Eradicated	Clandestine Laboratories seized	Foreign Cooperative Law Enforcement Officers Trained	State and Local Law Enforcement Officers Trained
10,246	7,226	7,297	1,518	318,800,000	850	2,800	12,800

Enhance intelligence programs to facilitate information sharing and develop new methods to structure and define drug trafficking organizations.

Intelligence Program Achievements (FY 1996)
Briefings/Training	In-depth Reports/Studies	Electronic Queries/Updates
952	550	616,172

Under the requirements of the Government Performance and Results Act (GPRA) of 1993, DEA is required to develop a strategic plan prior to FY 1998; prepare annual plans setting specific performance goals beginning with FY 1999; and report annually on actual performance compared to goals. The first report is due in March 2000. The annual performance plan will cover each of DEA's program activities which are set forth in the budget. The performance plan will establish agency performance goals which define the level of performance to be achieved by program activity and will be expressed in quantifiable and qualitative measures. Through these performance measurements it will be easier to determine operational processes, capital, positions, skills, technology and other resources needed to accomplish performance goals. DEA Performance Measurement Tables and performance narratives submitted in DEA's FY 1998 budget submission as shown in the Supplemental Financial and Management Information Section reflect DEA's organizational goals, current performance indicators, and statistical information related to these performance indicators. These initial Performance Measurement Tables will be revised to mirror the agency goals stated in the revised Strategic Management Plan and in the FY 1999 budget.

In FY 1996, DEA's accomplishments were vast. In concert with other Federal, State, and local law enforcement agencies, DEA aggressively fought drug related violence; addressed the growing power and influence of international drug Mafias; sought solutions to the emerging drug threats of methamphetamine, marijuana, and rohypnol; and made a real difference in international law enforcement by expanding our overseas presence.

Advocates have long recognized that cooperative law enforcement provides for a synergy of action that not only conserves resources, but more effectively brings the fight against crime and drugs to the adversary. In 1996, DEA worked with its international partners to bring the world's most notorious drug traffickers to justice. Major drug trafficking organizations were dismantled in Colombia, Nigeria, Mexico, France, Thailand, and Cuba. As an example, the Colombian National Police (CNP), with assistance from the DEA, apprehended seven Cali Mafia Leaders.

DEA has identified emerging drug threats, such as methamphetamine; marijuana; and rohypnol, "the date rape drug". The surging menace of methamphetamine is quickly becoming the growth drug of the 1990's. Although methamphetamine has been illegally used for decades, the control and distribution of this illicit product has moved away from the outlaw biker gangs, historically dominant in the methamphetamine trade, and into the hands of ruthless Mexican polydrug organizations. These Mexican groups, cynically dubbed "The Federation", have quickly transformed methamphetamine from a regional threat into one of national significance.

To combat this surge, DEA continues to participate in special initiatives with agencies, such as the California Bureau of Narcotic Enforcement to intensify efforts to disrupt the flow of substantial amounts of methamphetamine being trafficked from bases in central Mexico, over the Southwest Border, to cities throughout the country. Marijuana use by the youth of our country has also increased at an alarming rate. This trend has sparked a renewed call by law enforcement to counter the ever increasing distribution of substantial quantities of the drug by highly organized crime groups. Rohypnol, the sedate-hypnotic drug flunitrazepam, has emerged as a significant abuse and trafficking problem in the U.S. It is known as the "date rape" drug. The drug impairs mental judgment, incapacitates the user and causes memory loss. DEA's Office of Diversion Control instituted a special enforcement program that provided funds for rohypnol investigations.

DEA, as the lead agency for domestic enforcement of Federal drug laws, also has the sole responsibility for coordinating and pursuing U.S. drug investigations abroad, and is dedicated to conceptualizing and implementing the most effective drug law enforcement strategy possible. This strategy complements and energizes our State and local counterparts, and charts the course for and harmonizes the efforts of all other Federal agencies with drug enforcement or drug intelligence responsibilities.

Highlights of DEA FY 1996 domestic and foreign program accomplishments are covered in the Supplemental Financial and Management Information Section.

The financial statements have been prepared for FY 1996 to report the financial position and results of operation of the DEA, pursuant to the requirements of the Chief Financial Officers (CFOs) Act of 1990 and the Government Management Reform Act (GMRA) of 1994. These include the Statement of Financial Position and Statement of Operations and Changes in Net Position. These statements include all Agency activities and 100 percent of the Agency's budget authority. While the statements have been prepared from the books and records of DEA, in accordance with formats prescribed by the Office of Management and Budget (OMB) Bulletin 94-01, the statements are different from the financial reports used to monitor and control budgetary resources which are prepared from the same books and records.

The statements should be read with the realization that they are for a sovereign entity, that liabilities not covered by budgetary resources cannot be liquidated without the enactment of an appropriation, and that payment of all liabilities, other than for contracts, can be abrogated by the sovereign entity.