The Drug Enforcement Administration (DEA) provides the following response to your December 12, 2002 request for comments regarding the audit cited above. The audit contained 10 recommendations. Four of these-Recommendations 1, 7, 9 and 10-apply to the DEA. The DEA concurs with all of the OIG's recommendations and is working to implement corrective actions to address the OIG's findings. The DEA's response to each of these recommendations appears below.

Recommendations

We recommend that the DEA Administrator, DEA, in conjunction with the Office of National Drug Control Policy (ONDCP):

1. Ensure that the estimates used to report the Demand Reduction Section obligations to the ONDCP are reasonable and supported.
   
   DEA Response. Concur; corrective action completed. The DEA revised its methodology to ensure that it more accurately reflects the DEA's financial obligations for its demand reduction programs. The FY 2002 attestation narrative includes language that reflects this revision.
   
   "Prevention Function. FY 2002 obligations associated directly with the DEA's demand reduction efforts include actual payroll and program funds and estimated overhead for headquarters and field offices..."
   
   The attestation will also note the methodology change by comparing the old and new methods of spreading obligations for the Prevention Function. The Management Assertion Statement submission to the ONDCP is pending approval by the Department of Justice (DOJ). The DEA will provide documentation to the OIG once the statement is approved by the DOJ for release.

We recommend that the Administrator, DEA:

7. Ensure that verifiable and measurable performance indicators are developed for its drug demand reduction programs.
   
   DEA Response. Concur; corrective actions initiated. The OIG noted that "the DEA has not established any performance indicators for its drug demand reduction programs, even though drug demand reduction is one of the DEA's strategic objectives." The DEA Strategic Plan objective states that the DEA will work "to educate local audiences with aggressive drug demand reduction programs." The OIG notes that only a small percentage of the DEA's funding is devoted to this program. Corrective actions by the DEA's Office of Resource Management (FR) are currently underway to better define verifiable measures. These performance measures are included in the Performance Plan under Strategic Objective 2.2 as reflected on the Performance Measurement Table (attached). The DEA Is continuing to work to identify the appropriate indicators to measure the effectiveness of the program that recognize the limited size of the program, place the program in the context of the DEA's Strategic Plan, and meet the requirements of the GPRA.

We recommend that the Director, BOP; the Administrator, DEA; and the Assistant Attorney General, OJP:

9. Work with the Office of Legal Policy (OLP) to develop a formalized mechanism for coordinating and sharing information related to drug demand reduction activities among the components.
   
   DEA Response. Concur. The DEA supports this initiative and will fully participate in efforts to enhance information sharing for demand reduction. The DEA welcomes the opportunity to work with the OLP to develop a mechanism to coordinate and share information related to demand reduction with other DOJ components.

10. Evaluate what impact it can achieve on its stated objective "to educate local audiences with aggressive drug demand reduction programs" with such a small percentage of its funding devoted to drug demand reduction activities.
    
    DEA Response. Concur; corrective actions initiated. The FR currently evaluates the frequency with which the DRCs conduct presentations to communities. The desired outcome is to identify the contribution to reduction in drug use and availability. The evaluation of the degree to which the strategic objective can be achieved will be assessed in the context of existing resources, i.e., performance efficiency and effectiveness will be evaluated within the scope and size of the resources allocated to DEA's demand reduction activities.

The DEA will continue to track these recommendations and provide status reports to your office until all corrective actions are completed. If you have any questions regarding this response, please contact Marjorie Snider, Audit Liaison, at 202-307-4119.

Attachment

Data Definition: Disruption occurs when the normal and effective operation of an identified organization is significantly impacted so that it is unable to conduct criminal operations for a significant period of time. This disruption must be the result of an affirmative law enforcement action including, but not limited to the arrest, indictment, and conviction of the organization's leadership or a substantial seizure of the organization's assets. Dismantlement occurs when an identified organization is incapacitated and no longer capable of operating as a coordinated criminal enterprise. This dismantlement must be the result of an affirmative law enforcement action including, but not limited to, the arrest, indictment, end conviction of all or most of the principal leadership, the elimination of its criminal enterprises and supporting networks and the seizure of its assets. The organization must be impacted to the extent that it is incapable of reforming.

Data Collection and Storage: Each Special Agent-In-Charge (SAC) nominates organizations to qualify as priority targets (based on Intelligence information). Headquarters staff will ensure that the nominated targets are tracked, as all nominations wit be supported by data and information stored in the Priority Target Activity end Resource Reporting System (PTARRS).

Data Validation and Verification: The treat assessment of these nominated organizations wit be forwarded to the Headquarters, Chief, Operations Division, who will validate the selections. Headquarters staff will ensure that the approved targets are tracked, as all disruptions and dismantlements will be supported by data and information stored in the Priority Target Activity end Resource Reporting System (PTARRS).

Data Limitations: DEA is currently working to capture the actual direct costs of investigating, disrupting, and dismantling Priority Drug Trafficking Organization (PDTO). Currently, DEA is focusing on improving reporting systems that capture investigative hours and cost data. DEA also recently initiated a Managerial Cost Accounting Study that will eventually allow the agency to capture actual full costs of investigating, disrupting, and dismantling PDTOs. DEA anticipates that actual direct costs will be reported during FY 2002, and that actual full costs could be reported during FY 2004.