U.S. Department of Justice
Remarks of Attorney General John Ashcroft
The orchestrated terrorist attacks of September 11th forever changed our perception of our homeland security. With these attacks, terrorism ceased to be seen as a distant threat and became an imminent danger to our families, our institutions, and our freedoms. The first and overriding priority of the Department of Justice is to protect Americans against future acts of terrorism and to bring terrorists to justice. We are devoting all resources necessary to accomplish this critical mission.
In the year since the September 11th attacks the Department has worked vigorously to improve information sharing among all levels of law enforcement, enhance our capability to prevent terrorist incidents, and restructure our organizations and operations to accomplish our mission better.
To continue our pursuit against terrorism and to enforce vigorously the laws of the United States, the Department of Justice must operate with the highest levels of efficiency and effectiveness. Pursuant to that goal, I am pleased to present this Semiannual Management Report to accompany the Department of Justice Inspector General's Semiannual Report to Congress. As required by statute, this report summarizes the Department's management decisions, actions completed and actions in progress in response to audit reports issued by the Office of the Inspector General (OIG).
Taken together, these reports represent the Department of Justice's efforts to identify and correct weaknesses in current activities and provide a road map for improving management and operations. I am pursuing aggressively the implementation of management improvements in an atmosphere of cooperation with the Inspector General, and welcome the progress we have already made in many areas.
For example, as I previously reported, the Department of Justice achieved its first clean, unqualified opinion on all of its consolidated financial statements as well as unqualified opinions on all 10 of the reporting components' financial statements that support the consolidated report. The Department's components worked diligently for this unprecedented accomplishment and we are grateful for their efforts. The Department of Justice is committed to maintaining its unqualified opinion in future financial statement audits and to doing so in a way that is highly efficient. Early indications are that the Department will meet this challenge.
In addition, while the Department is continuing aggressively its efforts to adequately secure sensitive computer systems, the OIG did report improvement in the controls over these systems during the reviews it conducted pursuant to the Government Information Security Reform Act.
A primary component in the war on terrorism, the Federal Bureau of Investigation (FBI) is moving forward aggressively to reform the organization to elevate performance in all areas of mission accomplishment. The OIG highlighted its examination of selected activities of the FBI and has issued reports that identified weaknesses. The FBI has taken immediate action to address these weaknesses, and in some cases, began remediation prior to receiving the report and recommendations of the OIG..
In a special report, initiated by the OIG at my request, the OIG examined the INS's admission of two September 11th terrorists and the weaknesses in the INS process that allowed the two terrorists to gain admission. While the OIG found no evidence that INS policies and practices had been violated in this case, we are committed to improving the policies and procedures of the INS to ensure that no such incident will happen again. In fact, since September 11th substantial changes have been made to ensure adequate scrutiny of those seeking to enter the United States.
I am concerned that, in the same report on the INS, the OIG found the INS's 1) adjudication process to be untimely and flawed and 2) system for monitoring and tracking foreign students in the United States to be antiquated and inadequate. The INS is now taking steps to ensure that the adjudicators have complete information prior to making their determinations, and is developing an automated computer tracking system, the Student and Exchange Visitor Information System, to address many of the failings of its current manual system.
In two other reports related to the INS's efforts to control illegal immigration, the OIG examined the INS's control of nonimmigrant overstays and the institutional removal program. These reports examine issues that have been reviewed previously, making the OIG reports of continued difficulties in these areas especially troubling. With respect to overstays, the OIG reported that the INS does not have a reliable system to track overstays and cannot provide accurate data on overstays as required by the Visa Waiver Program. However, the INS has taken aggressive steps to strengthen the Visa Waiver Program.
In addition, significant strides have already been made in implementing a comprehensive Entry-Exit system. The INS has established a multi-agency Project Management Office to coordinate all activity associated with the establishment of an Entry-Exit program, to include a fully integrated automated system to be deployed at over 300 ports of entry. In addition to several components within the INS, the Project Office has membership from other Department of Justice components, the United States Customs Service, the Department of State's Visa and Passport Offices and the Department of Transportation. In addition, the INS is working with the Department of State and the National Institute of Standards and Technology to develop a technology standard that would allow for the use of biometrics in the Entry-Exit system. The first phase of the program was launched on September 11, 2002, with the National Security Entry Exit Registration System (NSEERS). The NSEERS focuses on a specific population and requires additional information including two live-scan fingerprints and a photograph. The NSEERS is deployed to all major airports and land border ports of entry. Both NSEERS and the systems established as part of the Visa Waiver Permanent Program will be integrated into the larger Entry-Exit System.
The INS also continues to take action to improve its Institutional Removal Program (IRP). The OIG had reported that the INS did not effectively manage the IRP resulting in some deportable foreign-born inmates being released without being identified by the INS. The INS has proposed to undertake a complete accounting of the resources required to address this population and has developed a multi-year plan to expand its Detention Officer positions. To enhance efficiency and minimize detention costs, the INS is developing an operation manual and appropriate training for the clear, consistent, and standardized procedures for IRP documentation and A-file organization and taking steps to ensure that its officers use authorized streamlined procedures for removal proceedings.
In a report on its review of the FBI's Counterterrorism Program, the OIG found that the FBI did not perform a comprehensive assessment of the threat and risk of terrorist attacks on U.S. soil nor did it incorporate such an assessment into its strategic plan. Further, the OIG stated that the FBI does not have sufficient performance measures and standards to hold managers accountable for achieving goals and objectives. The FBI has taken some important steps to improve its counterterrorism program, and continues to identify additional steps for constant improvement. It is improving its intelligence analyzing capabilities and is taking a "connect the dots" approach to analyzing disparate terrorism-related information flowing to it. Further, the FBI has established an Office of Intelligence and supplemented the staff with 25 experienced intelligence analysts. This should improve the FBI's ability to collect, analyze, and disseminate threat information. In addition, the FBI refocused its traditional crime-fighting orientation after September 11th placing its highest priority on, and shifting resources to, preventing terrorist acts.
Finally, I am deeply concerned about the OIG findings related to Department's controls over weapons and laptops. Any loss of sensitive equipment is troubling. As the components initiated immediate steps to inventory and account for all missing sensitive property, the Justice Management Division (JMD), as the oversight body for policy controls over sensitive equipment, took swift action to improve oversight of this equipment. The JMD proposed changes to policy that will 1) mandate the integration and reconciliation of the accounting and property management systems, 2) provide standards for securing weapons, 3) require annual physical inventories of laptops and weapons, and 4) establish standards for reporting losses of sensitive equipment.
As Attorney General, I have pledged to confront injustice by leading a professional Justice Department that is free from politics, defined by integrity and dedicated to upholding the rule of law. I am continuing to pursue aggressively a timely and efficient process of audit resolution, believing firmly that it is a valuable tool to elevating continually the performance of the Department and thus will help ensure that we serve all Americans with integrity and impartiality.
Number
of Reports |
Questioned Costs Classifications |
Percent | |
---|---|---|---|
Audit reports with management decisions on which final action had not been taken as of March 31, 2002 | 242 | $126,654,831 | |
Undocumented/Unapproved Costs | 26,955,641 | 21.3% | |
Non-compliance with law by grant and contract recipients | 60,070,444 | 47.4% | |
Supplanting | 17,880,736 | 14.1% | |
Redeployment | 14,418,533 | 11.4% | |
Non-compliance with law by DOJ components | 6,538 | 0.0% | |
Unnecessary or unreasonable expenditures | 81,602 | 0.1% | |
Other | 7,241,337 | 5.7% | |
Audit reports on which management decisions were made during the period | 33 | $12,656,402 | |
Undocumented/Unapproved Costs | 1,856,550 | 14.7% | |
Non-compliance with law by grant and contract recipients | 3,856,625 | 30.5% | |
Supplanting | -0- | 0.0% | |
Redeployment | -0- | 0.0% | |
Non-compliance with law by DOJ components | 898,018 | 7.1% | |
Unnecessary or unreasonable expenditures | 614 | 0.0% | |
Other | 6,044,595 | 47.8 % | |
Total audit reports pending final action during
the period |
275 | $139,311,233 | |
Undocumented/Unapproved Costs | 28,812,191 | 20.7% | |
Non-compliance with law by grant and contract recipients | 63,927,069 | 45.9% | |
Supplanting | 17,880,736 | 12.8% | |
Redeployment | 14,418,533 | 10.4% | |
Non-compliance with law by DOJ components | 904,556 | 0.6% | |
Unnecessary or unreasonable expenditures | 82,216 | 0.1% | |
Other | 13,285,932 | 9.5% | |
Final Actions |
53 | $20,639,524 | |
Collections/Recoveries | 1,489,327 | ||
Offsets & Property in Lieu of Cash | 216,496 | ||
Supporting documentation provided | 5,279,436 | ||
Brought into compliance | 5,532,906 | ||
Waived/Terminated | 362,537 | ||
Supplanting did not occur | 6,778,831 | ||
Questioned costs not sustained by DOJ management | 979,991 | ||
Audit reports needing final action as of September 30, 2002 |
$118,671,709 |
Number of Audit Reports |
Number of Recommendations |
|
---|---|---|
Audit reports with management decisions on which final action had not been taken as of March 31, 2002 | 407 | 1,426 |
Audit reports on which management
decisions were made during the period |
152 | 467 |
Total audit reports pending final
action during the period |
559 | 1,893 |
Final Actions: | ||
--Recommendations implemented | 106 | 289 |
--Recommendations that management concluded should not or could not be implemented or completed | 4 | 4 |
Total number of actions taken | 106 (1) | 293 |
Audit reports needing final action
as of September 30, 2002 |
453 | 1,600 |
Number of Audit Reports |
Dollar Value | ||
---|---|---|---|
FBU Values Reported
by the OIG |
Management
Position on Potential Savings |
||
Open Audit Reports:
|
|||
Audit reports from previous
reporting period for which final action had not been taken as of March 31, 2002 |
94 | $68,474,695 | $8,253,641 |
Audit reports on which management decisions were made on the report and recommendations to put funds to better use during the reporting period |
2 | 2,308,133 | 2,308,133 |
Audit reports on which management decisions were made during the reporting period but a decision is still pending on the recommendations to put funds to better use | 4 | 10,623,330 | -0- |
Total Open Audit Reports | 100 | 81,406,158 | 10,561,774 |
Closed Audit Reports:
|
|||
Audit reports on which final
action was completed during the reporting period |
14 | 3,758,622 | |
Audit reports that management concluded should/could not be implemented or completed |
9 |
-0- |
|
Total Closed Audit Reports | 22 (2) | 3,758,622 | |
Audit reports for which
final action had not been completed as of September 30, 2002 |
78 | $6,803,152 |
Report Number/ Date Issued |
Report Title | Management Improvements | Status of Final Action | |
---|---|---|---|---|
Recommended | Implemented | |||
COPS Various |
162 COPS Grantees | 536 | 221 | The Office of Community Oriented Policing Services (COPS) is working with the grantees to address the actual cost exceptions and to produce the required documentation on various issues, such as redeployment and retention planning. |
CRM GR-40-01-003 03/14/01 |
Use of Equitable Sharing Revenues by the Virgin Islands Police Department | 6 | 0 | The Asset Forfeiture and Money Laundering Section is coordinating with the grantee to address the audit recommendations and cost exceptions. |
DEA 92-14 08/14/92 |
Controlled Substances Act Registration Fees in the Drug Enforcement Administration | 6 | 1 | The Drug Enforcement Administration (DEA) will issue the final rule for registration fees when all of the fee issues are properly addressed. |
99-25 09/20/99 |
Drug Enforcement Administration Annual Financial Statement Fiscal Year 1998 | 11 | 8 | The DEA is implementing corrective actions to strengthen the general controls over its information systems. |
00-22 09/22/00 |
Drug Enforcement Administration Annual Financial Statement Fiscal Year 1999 | 35 | 25 | The DEA is strengthening its policies and procedures related to system access controls to protect its computer resources from unauthorized modification, loss and disclosure. |
01-28 09/25/01 |
Drug Enforcement Administration Annual Financial Statement Fiscal Year 2000 | 29 | 3 | The DEA is implementing corrective actions to remedy weaknesses in financial management controls, financial reporting, information systems controls and organizational oversight. |
ENRD 01-19 08/14/01 |
Environmental and Natural Resources Division Network Computer Security and Case Management System Internal Control Audit | 8 | 7 | As recommended by the OIG, the Environmental and Natural Resources Division (ENRD) is testing its contingency plan. |
FBI 00-15 07/06/00 |
Federal Bureau of Investigation Annual Financial Statement Fiscal Year 1999 | 5 | 4 | The FBI is strengthening its procedures related to the timely and accurate recording, reconciliation and reporting of capital assets. |
01-31 09/28/01 |
Review of the Federal Bureau of Investigation Headquarters's Information Systems Control Environment Fiscal Year 2000 | 29 | 13 | The FBI is implementing corrective actions to address the weaknesses identified by the OIG. |
GR-90-00-019 07/31/00 |
Compliance with Standards Governing Combined DNA Index System Activities California Department of Justice Berkeley DNA Laboratory Berkeley, California | 3 | 0 | The FBI is working with the Berkeley, California DNA Laboratory to implement measures to ensure that the DNA casework files are complete, accurate and compliant with NDIS requirements and State legislation. |
FPI 01-27 09/20/01 |
Federal Prison Industries, Inc. Annual Financial Statement Fiscal Year 2000 | 18 | 12 | The Federal Prison Industries, Inc. (FPI) is taking action to improve controls over inventory management, accounts receivables management and cash reconciliation process. |
INS 97-10 03/31/97 |
Immigration and Naturalization Service Workforce Analysis Model | 7 | 5 | The INS is validating the reliability of the Workforce Analysis Model program to provide more accurate vehicle and passenger counting techniques. |
99-10 03/31/99 |
The Immigration and Naturalization Service's Timeliness in Inspecting Passengers Arriving at U.S. Airports | 11 | 2 | The INS is: (1) working to achieve total Federal Inspection Services Processing within 45 minutes and (2) adopting an automated system to measure and report the number of passengers inspected within the time standards. |
99-19 07/08/99 |
Follow-up Review - The Immigration and Naturalization Service Management of Automation Programs | 17 | 7 | The INS is implementing various initiatives to improve its information technology investment process. |
00-05 02/10/00 |
The Immigration and Naturalization Service Collection of Fees at Land Border Ports of Entry | 12 | 3 | The INS is completing follow-up verifications to ensure that the border ports-of-entry have implemented the revised fee collection procedures and a Quality Assurance plan. |
01-03 12/11/00 |
The Immigration and Naturalization Service's Airport Inspection Facilities | 4 | 0 | The INS is implementing several initiatives to strengthen the security and quality of its airport inspection facilities. |
01-09 03/21/01 |
Immigration and Naturalization Service Management of Property | 15 | 1 | The INS is implementing corrective actions to improve the accuracy and reliability of its property management system. |
01-11 03/20/01 |
The Immigration and Naturalization Service's System Data Pertaining to Secondary Inspections at Selected Preclearance Airports | 5 | 0 | The INS is strengthening its data collection procedures to improve the integrity and reliability of INS's secondary inspections data recorded in the Treasury Enforcement Communications System. |
01-17 08/03/01 |
Immigration and Naturalization Service Annual Financial Statement Fiscal Year 2000 | 16 | 13 | The INS is making improvements in the areas of financial management systems controls, systems access controls and methodologies for determining accounts payables. |
JMD 01-01 11/6/00 |
Departmental Critical Infrastructure - Planning for the Protection of Computer Based Infrastructure | 4 | 0 | The JMD provided the OIG documentation supporting the completion of corrective actions; however, the OIG did not deem it sufficient to close the report. |
01-15 07/03/01 |
Office of Debt Collection Management's Implementation of the Collection Litigation Automated Support System | 3 | 3 | The JMD has completed corrective actions to address the audit recommendations, but it has not completed final action for the cost exceptions. |
OJP Various |
53 OJP Grantees | 147 | 33 | The Office of Justice Programs (OJP) is working with the grantees to address deficiencies and cost exceptions identified by the OIG. |
USMS 94-07 11/26/93 |
United States Marshals Service's Responsibilities Under the Witness Security Program | 28 | 26 | The United States Marshals Service (USMS) is implementing a new computer system for the management of the Witness Security Program. |
99-31 09/30/99 |
United States Marshals Service Annual Financial Statement Fiscal Year 1998 | 15 | 9 | The USMS is implementing various initiatives to improve the accuracy and effectiveness of its financial management system. |
00-25 09/25/00 |
United States Marshals Service Annual Financial Statement Fiscal Year 1999 | 10 | 5 | The OIG will close the audit report when financial statement audit testing confirms the effective implementation of corrective actions. |
VAR 99-13 03/31/99 |
Fingerprint and Biographical Check Services Provided by the Federal Bureau of Investigation to the Immigration and Naturalization Service | 9 | 5 | The INS is implementing a fingerprint billing and reconciliation system to provide for the reconciliation of INS fingerprint check requests with FBI check results and billings. |
00-19 08/09/00 |
Offices, Boards and Divisions Annual Financial Statement Fiscal Year 1999 | 9 | 6 | The Offices, Boards and Divisions are implementing the Financial Management Information Systems 2 that will provide management with current financial information necessary for external reporting requirements. |
01-07 02/28/01 |
U.S. Department of Justice Annual Financial Statement Fiscal Year 2000 | 7 | 5 | The Department is making modifications to the Department's financial management system to improve the accuracy and reliability of the data. |
01-12 03/21/01 |
Federal Cost Recovery and Program Monitoring in the Equitable Sharing Program | 3 | 2 | The Department is conducting a comprehensive cost recovery study to assess the Equitable Sharing Program's costs and recovery practices. |
01-26 09/17/01 |
The Combined DNA Index System | 3 | 2 | The FBI is reviewing options that would allow it to routinely verify the integrity of the profiles in the national DNA index. |
Report Number | Title | Questioned Costs |
BASIS FOR QUESTIONED COSTS | |||||
---|---|---|---|---|---|---|---|---|
Unsupported | Noncompliance | Supplanting | Redeployment | Unnecessary | Other | |||
94-7 | United States Marshals Service Responsibilities Under the Witness Security Program |
$610,815
|
$610,815
|
$
|
$
|
$
|
$
|
$
|
01-26 | The Combined DNA Index System |
459,282
|
459,282
|
|||||
GR-30-96-007 | United States Marshals Service Intergovernmental Service Agreement for Detention Facilities with the City of Central Falls, Rhode Island |
1,860,529 |
1,860,529 |
|||||
GR-40-01-003 | Use of Equitable Sharing Revenues by the Virgin Islands Police Department |
137,822 |
137,822 |
|||||
GR-50-98-012 | Use of Department of Justice Funds by Calumet Park, Illinois Police Department |
82,098 |
12,633 |
31,965 |
37,500
|
|||
Various | 119 COPS Grantees |
52,449,096
|
13,257,988
|
20,276,484
|
9,879,759
|
8,964,821
|
70,044
|
|
Various | 17 OJP Grantees |
8,864,537
|
5,421,546
|
3,356,870
|
86,121
|
|||
Various | 26 Single Audit Act Reports |
5,255,973
|
2,347,280
|
2,850,639
|
58,054
|
|||
TOTAL |
$69,720,152
|
$21,788,084
|
$ 28,835,769
|
$9,879,759
|
$8,964,821
|
$70,044
|
$ 181,675
|
|
PERCENT OF TOTAL |
100%
|
31.25%
|
41.36%
|
14.17%
|
12.86%
|
0.10%
|
0.26%
|
CLOSED AUDIT REPORTS
REPORTED IN PREVIOUS
SEMIANNUAL MANAGEMENT REPORTS
The following audit reports were reported in the Attorney General's Semiannual Management Report to Congress: October 1, 2001 - March 31, 2002 in the chart entitled "Management Decisions on Audit Reports Not Implemented Within One Year." During the reporting period ending September 30, 2002, the Department completed the corrective actions necessary to close these reports.
REPORTING REQUIREMENTS
The Inspector General Act Amendments of 1988 (the Act), Section 106(b), sets forth the reporting requirements for this semiannual report. The table below cross-references the prescribed reporting requirements to the specific pages in the report where they are addressed.
Section
Reference |
Requirement | Page
Number |
---|---|---|
5(b)(1) | Attorney General's Comments | 1 |
5(b)(2) | Statistical Table Showing Total Number of Audit Reports and Dollar Value of Disallowed Costs | 5 |
5(b)(3) | Statistical Table Showing Total Number of Audit Reports and Dollar Value of Recommendations That Funds Be Put To Better Use By Management Agreed to in Management Decision | 7 |
5(b)(4) | Statement with Respect to Audit Reports for Which Management Decisions Have Been Made But Final Action Has Not Been Completed Within One Year | 8 |
As required by the Act, the statistical tables and supporting schedules in this report reflect the actions taken by the Department to resolve and implement OIG audit recommendations during the reporting period. The Department considers an audit report resolved when the Department and the OIG have agreed upon every recommendation and cost exception in the audit report. An audit report is closed when the Department completes every agreed-upon action for the audit report. This semiannual report is consistent with the Act in that audit reports and the associated potential benefits are included in the ending balance of the appropriate table and supporting schedules until final action is completed for every audit recommendation.
Audit Reports Issued: Reports of audits completed by the OIG and those processed by the OIG but completed by other Federal auditors; State, institutional and other non-Federal governmental auditors; and independent public accountants. The OIG's processing of audit reports completed by auditors outside of the OIG includes assessing the quality of work performed and transmitting the report to the Departmental component responsible for the audited program.
Management Decision: The evaluation by management of the findings and recommendations included in an audit report and the issuance of a final decision by management concerning its response to such findings and recommendations, including planned corrective actions to remedy weaknesses identified in the report.
Audit Reports Resolved: Reports on which DOJ management made a written, final determination of the actions to be taken to address the audit report recommendations and the OIG concurred with the planned corrective actions.
Questioned Costs: Costs questioned by the OIG as a result of:
Disallowed Costs: Questioned costs that DOJ management in a management decision sustained or agreed should not be charged to the Government.
Recommendation that Funds be Put to Better Use: A recommendation by the OIG that funds could be used more efficiently if management took action to implement and complete the recommendations, including:
Final Action: The completion of all actions that DOJ management concluded in its management decision were necessary with respect to the findings and recommendations included in the audit report. In the event that DOJ management concluded no action was necessary final action occurred when the management decision was made.
Management Actions - Questioned Costs: The following is a list of the different management actions used by DOJ management to resolve address questioned costs in an audit report.
COPS Office of Community Oriented Policing Services
CRM Criminal Division
DEA Drug Enforcement Administration
ENRD Environment and Natural Resources Division
FBI Federal Bureau of Investigation
FPI Federal Prison Industries, Inc.
FY Fiscal Year
INS Immigration and Naturalization Service
IRP Institutional Removal Program
JMD Justice Management Division
NSEERS National Security Entry Exit Registration System
OIG Office of the Inspector General
OJP Office of Justice Programs
USMS United States Marshals Service
VAR Various
1. This figure reflects the total number of audit reports for which final action was taken during the reporting period. The Department took multiple actions on several audit reports; thus, this total does not represent the sum of the two preceding figures.
2. Several audit reports had more than one recommendation to put funds to better use; therefore, this total does not represent the total of the two preceding figures in this column.