FINANCIAL STRUCTURE

The Department’s financial reporting structure is comprised of the following principal components (a complete listing is included in Appendix B):

• Assets Forfeiture Fund and Seized Asset Deposit Fund (AFF/SADF)
• Working Capital Fund (WCF)
• Offices, Boards and Divisions (OBDs)
• U.S. Marshals Service (USMS)
• Office of Justice Programs (OJP)
• Drug Enforcement Administration (DEA)
• Federal Bureau of Investigation (FBI)
• Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
• Bureau of Prisons (BOP)
• Federal Prison Industries, Inc. (FPI)

PERFORMANCE AND RESOURCE INFORMATION

The DOJ performance information is presented on the following pages.  The information is organized by strategic goal and is consistent with the Department’s Government Performance and Results Act (GPRA) performance plans and reports.  In FY 2004, the Attorney General issued a revised Strategic Plan for FY 2003-2008.  (The Strategic Plan is available on the Internet at DOJ’s website:  http://www.usdoj.gov.)  This new plan reduces the number of Strategic Goals from eight to four, thereby resulting in changes in expenditures across goals from FY 2003 to FY 2004.  Costs presented in this document for FY 2003 have been reclassified into the new goal structure for comparison purposes.  Table 1 and Table 2, along with associated graphs, provide an overview of the sources of resources and how they were spent.

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2004 FINANCIAL HIGHLIGHTS

The Department’s total assets as of September 30, 2004, were $27.1 billion, of which approximately 60 percent consists of the fund balance with the Treasury.  Total liabilities were approximately $6.9 billion, of which $4.5 billion (compared to $4.7 billion in FY 2003) were covered by budgetary resources.  The net cost of operations totaled $29.7 billion for the year ended September 30, 2004, an increase of approximately 26 percent over FY 2003.

A brief description of some of the major costs included in each Strategic Goal follows, along with an explanation of significant changes in expenditures from FY 2003 to FY 2004 for each goal.  As stated previously, costs presented in this document for FY 2003 have been reclassified into the new goal structure for comparison purposes.

• Strategic Goal 1, Prevent Terrorism and Promote the Nation’s Security, includes resources dedicated to counterterrorism initiatives as well as the costs of the United States Attorneys (USAs) and Criminal Division.

• Strategic Goal 2, Enforce Federal Laws and Represent the Rights and Interests of the American People, includes the ATF; DEA; FBI; USAs; the Criminal, Civil, Civil Rights, Tax, Antitrust, and Environmental Divisions; the United States Trustees; and the Assets Forfeiture Fund (AFF).  Net costs for this goal increased approximately 81 percent from FY 2003 to FY 2004.  This was largely due to an increase in the Victim Compensation Program.

• Strategic Goal 3, Assist State, Local, and Tribal Efforts to Prevent or Reduce Crime and Violence, includes OJP, COPS, as well as services to America’s crime victims and the AFF. 

• Strategic Goal 4, Ensure the Fair and Efficient Operation of the Federal Justice System, includes the USMS, the BOP (which includes FPI), the OFDT, the U.S. Parole Commission, EOIR, and Fees and Expenses of Witnesses program.

Management and administrative costs, including the Justice Management Division, the leadership offices, and the Wireless Management Office, among others, are allocated to each goal based on full-time equivalent (FTE) employment [1] .

COUNTERTERRORISM RESOURCES

Strategic Goal 1 applies a strict definition to the resources that are considered “counterterrorism” in nature:  it includes only those activities for which the primary mission is counterterrorism.  For the Department, this includes activities of the FBI, OJP, USAs’ offices and the Criminal Division.  However, many of the Department’s other activities support the counterterrorism mission in a variety of ways.  Using a broader definition of counterterrorism activities, to include providing homeland security, the Department incurred net costs of $ 3.3 billion [2] on the counterterrorism/homeland security effort in FY 2004.  This represents approximately 11 percent of the Department’s net costs in FY 2004, and includes the various activities.  For DEA, this includes special operations and physical/information security; for the FBI, this includes the components of the Office of Intelligence, Legal Attaches, the Dedicated Technical Program, and Cyber programs that support counterterrorism; for ATF, this includes joint terrorism task force initiatives and investigations of explosive and arson incidents that may be related to terrorist activities; for the USMS, this includes enhanced security for courthouses, protection of judges, prisoner custody related to terrorist trials and proceedings, and terrorist fugitives investigations; for OJP, this includes Domestic Terrorism Technology Development and Terrorism Prevention and Response Training; for the BOP, this includes increased care and maintenance cost of additional inmates as well as increased security; and for the OBDs this includes U.S. Attorneys and the legal activities of the Criminal Division.

DATA RELIABILITY AND VALIDITY

The Department views data reliability and validity as critically important in the planning and assessment of its performance.  As such, this document includes a discussion of data validation, verification, and any identified data limitations for each performance measure presented.  Each reporting component ensures that data reported meets the following criteria:

At a minimum, performance data are considered reliable if transactions and other data that support reported performance measures are properly recorded, processed, and summarized to permit the preparation of performance information in accordance with criteria stated by management.  Performance data need not be perfect to be reliable, particularly if the cost and effort to secure the best performance data possible will exceed the value of any data so obtained.

Additionally, when applicable, components identify data limitations regarding their performance reporting information and steps taken to reduce those limitations as appropriate.  At this time, the Department’s components have identified no significant limitations related to their performance data.

FY 2004 KEY PERFORMANCE MEASURES BY STRATEGIC GOAL

The Department’s Strategic Plan for FY 2003-2008 includes, for the first time, specific long-term outcome goals.  These outcome goals resulted from a significant effort by the Department to identify those key activities that are considered its highest priorities.  Annual measures addressing accomplishment toward these long-term outcome goals were developed and identified in the Department’s FY 2005 Budget and Performance Summary.  The Department’s full Performance Report for these measures is in Part II of this document. Each of the long-term outcome goals identified in the strategic plan is indicated in the performance report as an FY 2008 Outcome Goal.  The performance report represents the Department’s effort toward meeting the corresponding annual goals.  The summary chart below provides an overview of the Department’s FY 2004 performance.

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* ATF data lags two years due to time lag in publication of Uniform Crime Report.

** Measuring reduction in the drug supply is a complex process reflecting of a number of factors outside the control of drug enforcement. Moreover, the impact of enforcement efforts on drug supply and the estimated availability are currently not measurable in a single year. Accordingly, DOJ is unable to set interim goals; however, we remain focused on achieving a long-term reduction of 10%, when compared to the baseline supply of drugs available for consumption in FY 2002.

*** Data lags one year due to the requirement to audit data submitted by Trustees prior to reporting.  (FY 2003 Report due to data lag, FY 2003 Actuals: Chapter 7: 57%; Chapter 13: 85%)

[1] FTE employment means the total number of regular straight-time hours (i.e., not including overtime or holiday hours) worked by employees divided by the number of compensable hours applicable to each fiscal year.  Annual leave, sick leave, compensatory time off and other approved leave categories are considered "hours worked" for purposes of defining FTE employment.

[2] Net costs of operations are the gross costs incurred by the reporting entity less any exchange revenue earned from its activities.  The gross costs of a program consists of the full costs of the outputs produced by that program plus any non-production costs that can be assigned to the program.  Due to no year funding, timing of obligations, and other factors, these net costs will not directly reconcile with the annual amounts requested and appropriated in the same fiscal year. 

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