U. S. Department of Justice
Drug Enforcement Administration

www.dea.gov

JAN 28 2008

MEMORANDUM

TO:	Paul A. Price Assistant Inspector General for Evaluation and Inspections
FROM:	Gary W. Oetjen (Signature) Deputy Chief Inspector Office of Inspections
SUBJECT:	DEA's Response to the OIG's Report, Review of the Drug Enforcement Administration's Diversion Control Fee Account, January 2008

The Drug Enforcement Administration (DEA) has received your January 2008 report, Review of the Drug Enforcement Administration's Diversion Control Fee Account, and appreciates your efforts, and those of your staff, in conducting a thorough and well coordinated review. DEA concurs with the two recommendations resulting from this review and will take the necessary steps to implement the recommendations.

We are pleased to learn that the OIG's review did not substantiate any of the allegations contained in the April 10, 2007, letter from Senator Carl Levin, Chairman, Permanent Subcommittee on Investigations, that DEA misused Fee Account funds for non-diversion control activities. DEA is proud of the growth and accomplishments of the Diversion Control Program and also takes the fiscal responsibilities associated with maintaining the Diversion Control Fee Account very seriously.

DEA also appreciates the OIG's acknowledgement of DEA's Validation Unit, an independent entity designed and implemented to review and ensure that every Fee Account expense is related to a diversion control activity. The creation of this unit provides an additional level of oversight and increased management controls to the Diversion Control Fee Account. As you are aware from the OIG's 2006 review, the diversion and abuse of legal controlled substances remains an agency priority and DEA is committed to maintaining a comprehensive and effective Diversion Control Program. DEA is equally committed to the continued integration of Special Agents and Intelligence Analysts working alongside Diversion Investigators in order to protect the American public from the threat of controlled substances being diverted to the illicit market. Ensuring the prudent and judicious expenditure of Diversion Control Fee Account funds, and maintaining the integrity of the Fee Account, are essential to a full and balanced accounting of DEA' s efforts that will continue to contribute to effective diversion control. DEA provides the following response to the OIG audit 's recommendations:

Recommendation 1: Determine the total of actual and planned program costs, including salary costs, attributable to diversion control activities, especially for Special Agents, Intelligence Analysts, and Chemists, and include these costs in the Diversion Control Program's budget from this point forward.

DEA Response

DEA concurs with the recommendation. Since the Appropriations Act of 1993, which established the Diversion Control Fee Account CDCFA), DEA has expended considerable effort and achieved significant progress in measuring the scope of diversion control activities and determining the full cost of an evolving Diversion Control Program. DEA will continue to enhance these efforts by exploring and improving new and more effective methodologies, and using a variety of new and existing management tools (NFC, WRS, FFSIUFMS, STRIDE, CAST, and the ADSD database) to calculate the total actual cost of fee fundable activities, to include those that exceed congressional authorization, and ensure these costs are captured and included in the next budget submission. If current year costs are projected to exceed DCFA authority in any year, a reprogramming notification will be submitted to request a realignment to cover anticipated costs, similar to DEA's 2007 congressional reprogramming notification.

Recommendation 2: Provide more information to DEA personnel on the requirements governing the use of Fee Account funds, particularly for salary and other associated costs of Special Agents and Intelligence Analysts.

DEA Response

DEA concurs with the recommendation. As stated in the OIG's draft report, DEA has conveyed information to field division personnel pertaining to the appropriate use of Fee Account funds. This has been accomplished through presentations, lectures, and instruction at Diversion Program Manager (DPM) conferences, the Group Supervisor Institute, in-service training classes for Diversion Investigators, division management conferences, and on-site program reviews in DEA field offices. DEA will continue to educate its workforce regarding the appropriate use of Fee Account funds through these same methods and by incorporating additional Fee Account guidance and information in the Diversion Control Fee Account User's Guide, which is published on Webster and accessible to all DEA personnel.

Documentation detailing DEA's efforts to implement the attached action plan will be provided to the OIG on a quarterly basis until such time that all corrective actions have been completed. If you or members of your staff have any questions regarding DEA's response to the OIG's recommendations, please contact Senior Inspector Michael Stanfill at 202-307-8769.

Attachment

cc:	Michele M. Leonhart Deputy Administrator Richard P. Theis Director, Audit Liaison Group Management and Planning Staff

ACTION PLAN

Review of the Drug Enforcement Administration's Diversion Control
Fee Account (A-2007-005)

Recommendations	Action Planned	Projected Completion Date
1. Determine the total of actual and planned program costs, including salary costs, attributable to diversion control activities, especially for Special Agents, Intelligence Analysts, and Chemists, and include these costs in the Diversion Control Program's budget from this point forward.	Concur. Since the Appropriations Act of 1993, which established the Diversion Control Fee Account (DCFA), DEA has expended considerable effort and achieved significant progress in measuring the scope of diversion control activities and determining the full cost of an evolving Diversion Control Program. DEA will continue to enhance these efforts by exploring and improving new and more effective methodologies, and using a variety of new and existing management tools (NFC, WRS, FFS/UFMS, STRIDE, CAST, and the ADSD database) to calculate the total actual cost of fee fundable activities, to include those that exceed congressional authorization, and ensure these costs are captured and included in the next budget submission. If current year costs are projected to exceed DCFA authority in any year, a reprogramming notification will be submitted to request a realignment to cover anticipated costs, similar to DEA’s 2007 congressional reprogramming notification.	May 2008
2. Provide more information to DEA personnel on the requirements governing the use of Fee Account funds, particularly for salary and other associated costs of Special Agents and Intelligence Analysts.	Concur: As stated in the OIG's Draft Report, DEA has conveyed information to field division personnel pertaining to the appropriate use of Fee Account funds. This has been accomplished through presentations, lectures, and instruction at Diversion Program Manager (DPM) conferences, the Group Supervisor Institute, in-service training classes for Diversion Investigators, division management conferences, and on-site program reviews in DEA field offices. DEA will continue to educate its workforce regarding the appropriate use of Fee Account funds through these same methods and by incorporating additional Fee Account guidance and information in the Diversion Control Fee Account User's Guide, which is published on Webster and accessible to all DEA personnel.	June 2008