For example, appropriations committee report  language states that the program should focus on “urgent, unanticipated  nonproliferation activities of immediate concern to the United States.”  Furthermore, the program funds a longer-term export control activity that  is designated in committee reports as being outside the scope of the  program’s expected activities. That export control activity has not been  integrated with State’s Export Control and Related Border Security  Assistance Program, which supports development of export control  capabilities in other countries. We reviewed the types of activities funded by the major programs in the  context of program authorizations and found that these programs engage in  activities that are in accord with their legislative authorizations. The Nonproliferation and Disarmament Fund Appears to Engage in Activities Beyond Expectations for the Scope of its Mission

The NDF preplans some activities and engages in longer-term activities,  including export control activities that, while authorized by law, appear to  be inconsistent with expectations for the scope of the program’s mission. Yet the NDF earmarked at least half  of its fiscal year 2004 request of $35 million for preplanned and longer-term,  multiyear activities to include (1) $8.75 million for a Biological Weapons  Terrorism Initiative to help countries develop laws and regulations,  inventory existing materials, track the movement of existing materials, and  secure existing stock and (2) $8.75 million for the expansion and  deployment of an automated export control system called Tracker, which  has been under development and deployment by the NDF since 1994. The fiscal year 2005 budget request includes another $7  million for the same effort. However, project implementation is generally performed by  experts from other U.S. government agencies who are also federal  employees, or by outside contractors. Recommendation

In this report, we are recommending that the Secretaries of State and  Commerce evaluate the extent to which the export control activities of the  Nonproliferation and Disarmament Fund and the Export Control and  Related Border Security Assistance Program are integrated and thus ensure  that recipient countries are receiving comprehensive assistance to improve  their export control systems. To determine the extent to which program management utilized outside  experts, we met with program officials responsible for implementing the  NADR programs to discuss, and obtain information and documentation on,  the composition of program management staff and the extent to which  programs utilized outside experts in project implementation. Nonproliferation Programs Funded through the Department of State’s NADR Account

The Department of State’s nonproliferation programs funded through the  Nonproliferation, Anti-terrorism, Demining, and Related Programs (NADR)  account are designed to help achieve U.S. national security interests by  preventing the spread of weapons of mass destruction, their delivery  systems, and related materials.
Why GAO Did This Study

The Department of State requested $415 million to fund programs in the Nonproliferation, Antiterrorism, Demining, and Related Programs (NADR) appropriations account for fiscal year 2005. Interest has been expressed in learning about whether programs are being implemented in accord with the law, and in the extent to which programs use experts hired on a contractual basis. GAO was asked to determine (1) the legal authorizations for the programs and the extent to which programs are implemented in accord with these authorizations and (2) the extent to which program management and implementation use outside experts.

What GAO Found

The seven major programs funded through the Department of State's Nonproliferation, Anti-terrorism, Demining, and Related Programs appropriations account are authorized by law and engage in activities that are in accord with their authority. However, the Nonproliferation and Disarmament Fund (NDF) engages in activities that, while authorized by law, appear to be inconsistent with expectations about the scope of the program's mission. Past appropriations committee reports and testimony by the Secretary of State indicated that the NDF is designed to respond to urgent, unanticipated nonproliferation events of immediate concern to the United States. However, at least half of the NDF's $35 million budget request for fiscal year 2004 and 57 percent of the $34.5 million request for fiscal year 2005 were designated for longer-term activities preplanned through the annual budget process, including expansion of an export control system called Tracker. Furthermore, the Tracker system has been developed and deployed independently of another Department of State program, the Export Control and Related Border Security Assistance Program, which supports the development of export control capabilities in foreign countries. Currently, the Tracker system is not integrated into the export control assessments and activities of this program or the export control activities of other Departments, such as the Department of Commerce. Program management offices, which range in size from 1 to 26 staff, average about 80 percent federal employees and 20 percent experts hired on a contractual basis. In contrast, projects funded by these programs are implemented by experts on contract from other U.S. government agencies (who may also be federal employees), outside contractors, or international and nongovernmental organizations. The Department of State concurred with the need to integrate export control activities, but took exception to other issues regarding the Nonproliferation and Disarmament Fund.