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Statement of John P. Walters
Director of National Drug Control Policy
Before the Senate Committee on Appropriations
Subcommittee on Treasury and General Government

"The Office of National Drug Control Policy's FY 2003 Budget Request"

April 24, 2002

IV. ONDCP's FY 2003 Budget Request

ONDCP is requesting $523.1 million in budget authority for FY 2003. ONDCP requested $519.1 million for FY 2002. The FY 2002 enacted level is $533.313 million. The budget request reflects four program accounts: Salaries and Expenses; the Counterdrug Technology Assessment Center (CTAC); the Special Forfeiture Fund; and the High Intensity Drug Trafficking Areas (HIDTA) program.

A. Salaries and Expenses: $25.458 million.

For FY 2003, ONDCP is requesting $25.458 million for salaries and expenses to support 115 Full-Time Equivalents (FTEs) and 30 non-reimbursable detailees. ONDCP requested $25.1 million for FY 2002. The FY 2002 enacted level is $25.263 million. This request is essential if ONDCP is to carry out its policy, budget, and programmatic responsibilities in a manner consistent with achieving measurable results. Major expenses include:

  • $24.108 million to provide compensation and benefits for all authorized FTEs including a full complement of Executive Level (EX) positions; contract services; rental payments to the General Services Administration; travel and transportation; communications and utilities; and equipment.
  • $1.35 million to continue and expand ONDCP's policy research program. For the past 10 years, ONDCP has conducted a program of research and produced a series of studies and reports on key policy issues surrounding drug demand and supply, law enforcement, and consequences of drug use. With each round of funding, ONDCP seeks to expand and improve the methodology used in producing these studies and reports to improve the precision and accuracy of the resulting estimates.

As you know, the President requested funds for this account in the consolidated appropriation for the Executive Office of the President. The preceding discussion is included only to facilitate the work of the Appropriations Committees.

B. Counterdrug Technology Assessment Center: $40.0 million.

For FY 2003, ONDCP is requesting $40 million to support the Counterdrug Technology Assessment Center (CTAC). ONDCP requested $40 million for FY 2002. The FY 2002 enacted level is $42.3 million. The aggregate request includes funding for two distinct components: Research and Development ($18 million) and the Technology Transfer program ($22 million).

Research and Development

Concerning demand reduction, CTAC's work, in conjunction with the National Institute on Drug Abuse (NIDA), to expand the understanding of substance abuse and addition is producing some of the most scientifically significant developments we have seen in this field. These funds enable CTAC to sponsor advanced neuroimaging technology, medical instrumentation, and facilities at leading academic medical research institutions. In order to receive CTAC sponsorship, research facilities must agree to use the equipment to concentrate on drug abuse research and commit to train other professionals who will continue to advance the body of knowledge on the scientific aspects of substance abuse. Deploying proven or promising technologies for imaging the human brain activity of a subject on drugs is providing invaluable data and dramatically increasing our understanding of the short- and long-term effect of drugs on the human brain. Finally, this program supports developing and evaluating therapeutic drugs for treating addiction with minimal physical side effects.

By the end of FY 2003, 12 of the nation's leading substance abuse research institutions will have benefited from CTAC's program. World-class medical expert teams at Massachusetts General Hospital, Emory University, the University of Pennsylvania, Harvard University, McLean Hospital, the University of Colorado, Oregon Health Science University, and UCLA have benefited. In most cases, their leading-edge drug abuse research efforts are sponsored by grants from NIDA. Two new centers will be started to advance our understanding of the genetics and phenotypes of the addicted brain.

It is time for these facilities be linked to form a central information exchange allowing the transfer and sharing of images, data, and research findings over a substance abuse research data backbone. This data exchange backbone will make it possible for scientific advances, achieved by individual applications of technology, to benefit all of the nation's premier substance abuse research teams and accelerate the rate at which research can progress.

Concerning supply reduction, CTAC R&D; concentrates on high priority scientific and technological needs of local, State, and federal law enforcement agencies. These efforts improve capabilities for conducting non-intrusive inspection of cargo and containers for illegal drugs and strengthen law enforcement capabilities to combat drug-related crime and violence. Tactical tools are under development to improve capabilities to intercept and process drug-related criminal communications and to improve law enforcement capabilities to communicate with each other. Advanced tactical repeaters and phone intercept systems developed under CTAC funding are being evaluated in the field by Federal, state, and local law enforcement agencies in the New York City and Baltimore/Washington areas.

CTAC also sponsors technology testbeds. Last August in the metropolitan Denver area, the wireless communications interoperability testbed project demonstrated the interoperability of radios used by the U.S. Customs Service, Drug Enforcement Administration, Lakewood Police Department, Front Range Task Force and the Aurora Police Department. Since the August 2001 demonstration hosted by the Lakewood Police Department, the system has been used on a regular basis. By this summer, a Colorado-wide capability will be demonstrated to law enforcement agencies from across the country. This model allows state and local police to continue using their existing radios inter-connected through off-the-shelf interoperable communications systems. The system used in Colorado is being added to the Technology Transfer Program this year. In FY 2003, CTAC plans to continue to develop near-term improvements to law enforcement communications interoperability and management of investigative data. These capabilities assist in preventing, thwarting and prosecuting drug-related crimes, as well as terrorist activities.

Technology Transfer Program

The Technology Transfer Program (TTP) provides technologies developed with Federal funding directly to state and local law enforcement agencies that may otherwise be unable to benefit from the developments due to limited budgets or lack of technological expertise. CTAC utilizes technology testbeds to test and evaluate new items before they are included in the program. The TTP is unique because it provides hands-on training and support with the delivery of the equipment to each recipient. The periodic follow-up evaluations (at 90, 180, and 270 days) assures proper employment of the technologies and helps the TTP to assess the effectiveness of both the program as a whole and the individual technologies transferred.

The $79.498 million appropriated since the TTP began in FY 1998 has made possible the delivery of 4,750 pieces of equipment to over 3,800 state and local law enforcement agencies (as of April 15, 2002). During FY 2003, the requested appropriation will allow the transfer of much-needed technology to more than 1,200 state and local law enforcement agencies across the country. By the end of FY 2003, TTP deliveries will have been made to over one-fourth of the 18,500 sheriffs and police departments across the nation.

C. Special Forfeiture Fund: $251.3 million.

ONDCP's FY 2003 budget requests $251.3 million for the Special Forfeiture Fund. ONDCP requested $247.6 million for FY 2002. The FY 2002 enacted level is $239.4 million. This account provides funds to a diverse group of ongoing programs: the National Youth Anti-Drug Media Campaign, the Drug-Free Communities Program, the United States Anti-Doping Agency, the Counterdrug Intelligence Executive Secretariat, the National Drug Court Institute, and the National Alliance for Model State Drug Laws. Furthermore, this account contains a request for two new initiatives: Performance Measures Development and World Anti-Doping Agency (WADA) Membership Dues.

The National Youth Anti-Drug Media Campaign: $180 million.

For FY 2003, ONDCP is requesting $180 million for the National Youth Anti-Drug Media Campaign. ONDCP requested $185 million for FY 2002. The FY 2002 enacted level is $180 million. The Media Campaign uses multi-media advertising and public communications strategies aimed at youth and parents to promote anti-drug attitudes and behavior. The Campaign is a comprehensive national effort that integrates paid advertising at national and local levels with public information outreach through a network of public and private partnerships.

Clearly, the goal of the Campaign is to reduce drug use among youth. A statistically significant decline was found in past month marijuana use among 12- to 13-year olds from 1.8% to 0.7% between Waves 1 and 3. For 14- to 15-year-olds, however, there was a statistically significant increase in past month use from 2.1% in Wave 1 to 5.6% in Wave 3.

During the past year, the Campaign reached 90 percent of America's youth at least four times a week in multiple languages to various ethnic groups. A multi-cultural sub-set of the Campaign delivers $38 million worth of drug prevention messages annually to diverse audiences, making it one of the largest multicultural communications efforts ever launched by the federal government, and rivaling that of most corporate efforts. The Campaign has just completed development of the government's first-ever Native American anti-drug television ads which, along with a strong print ad complement, are set to be launched soon in targeted markets.

In addition to its primary effort against youth drug use, the Media Campaign also developed and, through its partnership with the Ad Council, operates a national multi-media public service advertising campaign promoting community anti-drug coalitions. The campaign seeks to expand community involvement against drugs by demonstrating the positive effect coalitions can have in their own communities.

Paid anti-drug advertising placed in key television and radio time slots and high readership publications is the foundation of the Campaign. An integrated advertising program focused on specific Campaign themes and messages is running nationally and in 102 local U.S. markets (through more than 2,250 media outlets nationwide during a five-year period). One unique aspect of the Campaign is that Congress mandated that media accepting advertisements must match the Campaign's purchases with an equal value of public service in the form of public service advertising time or space, or other activities related to youth drug use prevention. The Campaign has exceeded this ambitious "pro-bono match" goal. For the period beginning January 1998 through September 2002, the total value of the pro-bono match is projected to reach $659 million. The pro-bono match was negotiated using paid media valued at $614 million, and includes "in-kind" corporate contributions of $72 million, bringing the total value of the Anti-Drug Media Campaign to over $1.3 billion. Most of the match (86 percent) was PSAs. Eligible PSAs aid in drug prevention by encouraging activities such as mentoring, greater parental involvement, after-school programs, and other nationally relevant youth-related issues.

The Campaign is uniquely positioned to educate American youth and parents about the link between drug money and terror in the United States and around the world. In the aftermath of the terror attack of September 11, we realized that few Americans knew of the link between money spent for drugs and the support of terrorist organizations like Al Qaeda and the FARC. Twelve of the 28 international terrorist organizations recognized by the State Department engage in drug trafficking, and many other drug trafficking organizations engage in widespread acts of terror—kidnapping, torture, bombings, and the murder of innocents.

We subjected the ad concepts to an unprecedented level of testing to assure their effectiveness with target audiences. The ads were exposed to more than 1,300 individuals in 20 cities across the country. Youth that participated in the testing found that the ads significantly reduced their intent to use drugs in the future. Parents said the information gave them timely new information to use in talking to their children about drugs.

As the Subcommittee is aware, ONDCP launched the new ads during the Super Bowl program and they are still in use. Our anti-terror television, newspaper, and magazine ads are running currently and will continue through June.

The ads have generated a large response from across the country. Viewers are directed to, which is the Campaign's parenting Web site, where traffic surged after the ads were introduced. From the ads' launch on February 3 through February 27, page views on the site rose more than 21 percent. Visitors to the site doubled from an average 125,000 per month to 250,000, and the time spent at the site by visitors rose from an average 6 minutes to 10 minutes. During the same Feb. 3–Feb. 27 period, 1,282 parents signed up to receive a weekly parenting tips email.

ONDCP's FY 2003 request will also support continued public communications outreach which builds on and complements the advertising component. Significant efforts under this "non-advertising" component include a public information campaign that directly supports our advertising messages and builds credibility for the Campaign, a robust partnership initiative that expands the collective communications output of the Campaign by building relationships with a wide range of private sector media organizations and nonprofit organizations committed to the goals of the Campaign.

The Campaign makes extensive use of interactive media. The outreach component operates a family of Campaign Websites—the two most important of which are "", our youth site, and "", our parents site. The growth and popularity of the Internet, particularly among the nation's youth, enabled the Campaign to achieve more than 1.2 billion match impressions on as many as 50 consumer Web sites, including America Online. The efforts have led to more than 40.7 million page views on the Media Campaign Web sites, as of February 2002.

To further leverage the appropriated dollars allocated to the Campaign, ONDCP is pursuing aggressively a corporate participation plan. Pursuant to FY 2002 report language, ONDCP submitted to the Committee (on February 11th) a report summarizing the Media Campaign's corporate participation program, including its evolution, value to the Campaign, accomplishments to date, and promise for the future. This report focuses primarily on the corporate participation effort that was initiated four months ago to recruit and engage America's businesses in the Media Campaign. It also describes how corporate participation fits within the context of overall private sector involvement in the Campaign.

Evaluation Component

The evaluation of Phase III is designed to determine the extent to which changes in drug abuse-related knowledge, attitudes, beliefs, and behaviors can be attributed to exposure to the Campaign. Thus far, the evaluation has detected increases in awareness and some positive changes in perceptions and attitudes toward drugs. The parent findings are particularly positive, indicating changes in behavior among parents—slightly ahead of the expected timeframe of two to three years for behavioral change.

The Campaign has successfully exposed its target audience to anti-drug ads. Ninety percent of youth and parents recall seeing or hearing some form of general anti-drug advertising at least once per month. For recall of specific Campaign ads, 83% of youth recall seeing at least one of the Campaign ads in the past 2 months, and 44 % of parents recall seeing at least one of the parent-targeted ads in the past 2 months. Furthermore, a key aspect of the Phase III Campaign is the introduction of the branding concept to both youth and parent messages: about 60% of 12- to 18-year-olds recalled the youth brand, and about 46% of parents recalled the parent branding phrases. Parents are becoming more involved in addressing drugs with their children. Building on positive findings reported in the second semi-annual evaluation report, there was an increase in parent reports for four of five key outcomes, including talking to their children about drugs and monitoring their behavior. The most significant increases are among those with the highest levels of exposure to the Campaign ads.

Recognizing that the funds are authorized to be appropriated to the Campaign through FY 2002, ONDCP is committed to reauthorizing this program. With the support of members from both houses, we hope a reauthorization measure will be introduced in the next month.

The Drug-Free Communities Support Program: $60 million.

For FY 2003, ONDCP is requesting $60.0 million for the Drug-Free Communities Support Program (DFCSP). ONDCP requested $50.6 million for FY 2002. The FY 2002 enacted level is $50.6 million. The Administration is pleased that Congress recently reauthorized this program from FY 2003 through FY 2007.

The DFCSP provides matching federal grants directly to local community anti-drug coalitions to improve or expand their efforts to prevent substance use among children (including the underage use of alcohol and tobacco). The DFCSP truly serves communities throughout our nation, currently supporting 463 communities located in all fifty states, Puerto Rico, the U.S. Virgin Islands, and the District of Columbia. Furthermore, approximately twenty-five of the grants have been awarded to communities with predominately Native American and Native Alaskan populations. We anticipate awarding approximately 70 additional grants during the FY 2002 grant cycle (September, 2002).

Of the total $60.0 million ONDCP is requesting for this program, approximately $54.4 million will be granted directly to community anti-drug coalitions. We anticipate awarding approximately 166 new grants and approximately 12 mentoring grants in FY 2003, bringing the cumulative six-year total to more than 700 grants awarded to over 600 community anti-drug coalitions.1 The Drug-Free Communities Reauthorization Act of 2001 (Pub. L. 107-82) requires grant recipients to match their federal grant funds with other non-federal sources of support, including cash and in-kind contributions. Coalitions competing for new awards after completing their initial five-years of eligibility must meet an increased threshold for matching funds as a condition of eligibility for further awards.

ONDCP policy provides that grantees may receive a maximum award of $100,000 for years one, two, and three, and $75,000 for years four and five. The rationale for the funding reduction in years four and five is to encourage the coalitions to become less reliant on federal funds and more self-sufficient. The statutorily-created Advisory Commission has informed the ONDCP Director that this formulation is the most equitable and has the greatest chance of securing the long-term success of the coalitions.

Of the total $60.0 million request, $2.0 million, the maximum authorized amount, is to award a grant to support a National Community Anti-Drug Coalition Institute. The DFCSP Reauthorization Act requires ONDCP to award a grant to a national nonprofit organization that represents, provides technical assistance and training to, and provides expertise and broad national-level experience in, community anti-drug coalitions. ONDCP is working with the Center for Substance Abuse Prevention to create an Interagency Agreement for them to administer this grant. We anticipate awarding this initial grant in FY 2002.

Of the total $60.0 million request, only $3.6 million will support "administrative costs." These activities include grants management and program evaluation, and program administration. We anticipate allocating $3.28 million to OJJDP for grants management and evaluation, up to $120,000 for grant management costs associated with the National Coalition Institute, and $200,000 to support the DFCSP Program Administrator and the Advisory Commission on Drug Free Communities.

United States Anti-Doping Agency: $1 million.

For FY 2003, ONDCP is requesting $1.0 million to support the United States Anti-Doping Agency (USADA). ONDCP requested $3.0 million for FY 2002. The FY 2002 enacted level is $4.8 million. ONDCP is proposing FY 2003 appropriation language to allow ONDCP to transfer the entire amount of funds to the USADA without restrictions on the type of transfer. This will ensure that the federal government can provide appropriate financial oversight and ensure accountability for these funds.

Now that the Salt Lake Games are concluded, the $1 million request would support research and administrative initiatives, educational programs, and efforts to inform athletes of the rules governing the use of performance enhancing substances, and the ethics of doping and its harmful health effects. Furthermore, USADA is developing an out of competition program that will occur during the off years of the Olympic and PanAm games.

Counterdrug Intelligence Executive Secretariat: $6 million.

For FY 2003, ONDCP is requesting $6.0 million for the administration and operations of the Counterdrug Intelligence Executive Secretariat (CDX). ONDCP requested $3.0 million for FY 2002. The FY 2002 enacted level is $3.0 million. The General Counterdrug Intelligence Plan (GCIP) created the CDX to implement the recommendations contained it. The GCIP originally contemplated a staff of approximately 35 people for the CDX. Current funding at $3 million can support only 5 management/administrative staff and limited substantive work to achieve GCIP action items. Of the total request, $1.8 million will support existing administrative staff and continuing efforts to complete GCIP action items. The remaining $4.2 million will support approximately 30 reimbursable detailees from other federal agencies. This increase is necessary as participating agencies have been unable to provide the number of non-reimbursable detailees necessary to ensure sufficient support to the CDX.

A fully-staffed CDX will continue to improve our nation's counterdrug intelligence architecture by enhancing information sharing, operational coordination, and technical connectivity among federal counterdrug components and their state and local law enforcement counterparts. CDX has reached a staff level of 16 (5 management and administrative staff, plus 11 full-time non-reimbursed professional detailees). Efforts are underway to address nearly all of the 73 action items. Approximately 33% have been completed, substantial progress has been made on approximately 30%, and some progress has been made on approximately 30%. Additionally, the member agencies have referred 16 interagency intelligence coordination or policy issues to the senior Counterdrug Intelligence Coordinating Group (CDICG) for review.

National Drug Court Institute: $1 million.

For FY 2003, ONDCP is requesting $1.0 million for the National Drug Court Institute (NDCI). ONDCP requested $1.0 million for FY 2002. The FY 2002 enacted level is $1.0 million. The NDCI's research program requires these funds to continue the expansion of its drug court training program for practitioners, to convene special advisory groups to develop curricula in new disciplines, to develop a national community probation initiative, and to expand and update the Institute's video instruction library.

Research conducted by the National Center on Addiction and Substance Abuse, Columbia University, June 1998, demonstrates that drug courts provide more comprehensive and closer supervision of the drug-using offender than other forms of community supervision. Drug courts have been tremendously successful in creating a comprehensive and coordinated environment among the criminal justice and public health systems and the community in which they operate. Furthermore, individuals graduating from a drug court have lower rates of additional criminal behavior and/or recidivism. In contrast to the traditional "revolving door" approach, drug courts provide an effective solution to drug addiction and drug-related crime through the innovative use of and sanctions and incentives, comprehensive supervision, drug testing, and judicial monitoring. Defendants who complete the program either have their charges dismissed (in a diversion or pre-plea model) or have their probation sentences reduced (in a post-plea model). Drug courts provide closer, more comprehensive supervision and much more frequent drug testing and monitoring during the program than other forms of community supervision.

To date, there are over 1,100 drug courts operating in the community or are in various planning stages across the nation. These include approximately 167 juvenile courts and 37 family courts. Since their inception, almost 230,000 people have enrolled in drug court programs and almost 75,000 have graduated. For FY 2003, the Department of Justice is requesting $52 million for the Drug Court Program, an all-time high.

Performance Measures Development: $2 million.

For FY 2003, ONDCP is requesting $2.0 million for Performance Measures Development. This is a new initiative; no funds were requested or appropriated for FY 2002. ONDCP will use the requested funding to develop and implement data sources for performance measurement and management for counterdrug programs government-wide. Many measures are currently lacking or inadequate for informing policy decisions. Over the past four years, ONDCP identified such shortfalls in its annual Performance Measures of Effectiveness report, and described efforts through its Data Subcommittee to address these limitations. Additionally, last year, the results of the ONDCP-funded study from the National Research Council containing a review and recommendations on drug policy research were released. Both of these activities have highlighted, among other topics, (a) the need for improvement in estimates of the price and purity of illegal drugs, (b) the supply of drugs flowing to the United States, and the amount of drugs consumed in the United States; (c) evaluations of the effectiveness of prevention, treatment, and law enforcement programs; and (d) empirical study of drug markets. ONDCP will lead an interagency effort to address these research and data issues. As a result of this effort, ONDCP will make use of data generated to improve and refine program performance and consider new initiatives.

World Anti-Doping Agency Membership Dues: $0.8 million

For FY 2003, ONDCP is requesting $0.8 million for World Anti-Doping Agency (WADA) Membership Dues. This is a new initiative; no funds were requested or appropriated for FY 2002. WADA's mission is to promote and coordinate the effort against doping in sport at the international level. To accomplish this task, WADA cooperates with intergovernmental organizations, governments, public authorities, athletes, and other public and private bodies working against doping in sport. Furthermore, WADA coordinates a comprehensive anti-doping program, including out-of-competition controls.

The requested funds represent full membership dues for the United States in the WADA. The dues assessment is formula driven. The International Olympic Committee (IOC) pays fifty percent of the costs associated with WADA; participating governments and other agencies (which are divided into six geographic regions) pay the remaining fifty percent. The Americas' region is responsible for a twenty-eight percent share of the governments' and other agencies' fifty percent. The United States and Canada each pay one-third of the twenty-eight percent share ($0.8 million); the rest of the Americas pay the remaining one-third.

National Alliance for Model State Drug Laws: $0.5 million.

For FY 2003, ONDCP is requesting $0.5 million for the National Alliance for Model State Drug Laws (NAMSDL). ONDCP requested $1.0 million for FY 2002. The FY 2002 enacted level is $1.0 million. These funds will enable the NAMSDL to encourage states to adopt and implement laws, policies, and regulations to reduce drug use and its adverse consequences. The funding reduction is in no way reflective of dissatisfaction with the MSDL. However, the ONDCP appropriation has been the NAMSDL's only source of support since Fiscal Year 1997, and we believe NAMSDL should become less reliant on federal funds. We are working with NAMSDL to identify additional funding sources. This approach is consistent with the Administration's philosophy that federal dollars should not necessarily be the only source of funding for a program in perpetuity; these limited resources should be used to leverage additional funds, thereby making the organization/program able to survive even if federal funds are reduced or eliminated.

High Intensity Drug Trafficking Areas: $206.35 million.

For FY 2003, ONDCP is requesting $206.35 million for the HIDTA program. ONDCP requested $206.35 million for FY 2002. The FY 2002 enacted level is $226.35 million.

The ONDCP Director, in consultation with the Attorney General, Secretary of Treasury, heads of National Drug-Control Program agencies, and appropriate governors, designates the most critical regions in the United States as HIDTAs. The HIDTA Program enhances and helps coordinate efforts among state, local, and federal law enforcement entities in 28 designated areas to reduce the production, manufacturing, distribution, transportation and chronic use of illegal drugs and its consequences, as well as the attendant money laundering of drug proceeds. Resources are allocated to link local, state, and federal drug enforcement efforts and to optimize the investigative return on limited fiscal and personnel resources. ONDCP will work with all involved entities to ensure that HIDTA resources are properly targeted to offer maximum effectiveness. When HIDTA resources are appropriately targeted, drug law enforcement entities will have a greater chance of obtaining measurable results in their effort to disrupt the illegal drug market through cooperative investigations, intelligence sharing (coordinated at HIDTA Investigative Support Centers), and joint operations against drug-trafficking organizations.

The philosophy underlying the HIDTA Program is to allow each region the flexibility to address its unique drug threat in an appropriately tailored manner. An Executive Board (the "Board"), which consists of an equal number of local/State and federal law enforcement agency leaders, is the governing body of each individual HIDTA. The Board develops and implements the HIDTA Threat Assessment, Strategy, and Initiatives, as well as the fiscal administration operations of the HIDTA. The Board hires a HIDTA Director to administer the day-to-day operations of the HIDTA, implement appropriate oversight controls, and remain in contact with ONDCP. In contrast to the administrative management functions, the participating law enforcement agencies maintain sole operational control of initiatives.

The FY 2003 HIDTA request includes $2.1 million to continue auditing services and associated activities, and at least $0.5 million shall be used to develop and implement a data collection system to measure the performance of the HIDTA Program. ONDCP contracted with Klynveld, Peat, Marwick, Goerdeler (KPMG) to perform external financial audits on the HIDTA grantees and federal agencies. Thus far, KPMG has conducted 13 full-scope audits and 16 limited-scope reviews. With regard to the 13 full-scope audits, the HIDTAs grantees received all unqualified "clean" opinions. With regard to the limited-scope audits, the HIDTAs grantees and federal agencies received no major findings. In addition to issuing the final audit reports, KPMG will prepare a Best Practices Report which will be shared with all of the HIDTAs.

Internally, ONDCP has begun a review process that includes on-site visits to HIDTAs by ONDCP staff, as well as members from the Departments of Justice and Treasury. The on-site reviews help strengthen management at the individual HIDTAs and at ONDCP. To date, we have reviewed 13 HIDTAs and we plan to conduct an additional 5 to 6 program reviews in FY 2002 and an additional 5 to 6 in FY 2003. The program reviews have proven beneficial to the HIDTAs and ONDCP as best practices are identified and shared.

Concerning the allocation of the $20 million in FY 2002 funding, having obtained the concurrence of the Department of Defense, ONDCP will be transferring $5 million to the Department of Defense for National Guard counterdrug enforcement efforts. We believe that this transfer is a high priority to maintain current operational levels for the National Guard Bureau, and it will not affect current funding for existing HIDTAs. ONDCP will prioritize the remaining $15 million based on program priorities and other issues specific to the HIDTAs.

Since January 1990, counties in the following 28 areas have been designated as HIDTAs: Houston; Los Angeles; South Florida; New York; and the Southwest Border, which includes South Texas, West Texas, New Mexico, Arizona and Southern California (in 1990); Baltimore/Washington, DC; and Puerto Rico/U.S. Virgin Islands (in 1994); Atlanta; Chicago; and Philadelphia/Camden (in 1995); Gulf Coast (Alabama, Louisiana, and Mississippi); Lake County (Indiana); the Midwest (Iowa, Kansas, Missouri, Nebraska, North Dakota, and South Dakota); Northwest (Washington); and Rocky Mountains (Colorado, Utah, and Wyoming) (in 1996); Northern California (San Francisco Bay Area); and Southeastern Michigan (in 1997); Appalachia (Kentucky, Tennessee, and West Virginia); Central Florida; Milwaukee; and North Texas (in 1998); Central Valley California; Hawaii; New England (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont); Ohio; and Oregon (in 1999); and Northern Florida; and Nevada (in 2001). HIDTA designated counties comprise approximately 10 percent of United States counties; they are present in 41 States, Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.

1A number of community coalitions that received their initial award in FY 1998 have completed the five-year period of eligibility contemplated under the original DFCSP authorization. As the reauthorization permits these coalitions to reapply as a "new" grantee at the completion of the initial five-year period, some coalitions will begin receiving their second "new" award in FY 2003.

Last Updated: April 24, 2002

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