CBP Issues its FY 2008 Performance and Accountability Report

This report combines CBP's Annual Performance Report with its audited financial statements, assurances on internal control, accountability reporting, and agency assessments. It provides financial and performance information that will enable Congress and the public to assess the performance of the agency as it relates to the CBP mission.

Highlights of this report, concerning certain CBP's material weaknesses and instances of nonconformance, CBP's progress in achieving six strategic goals, certain CBP budget information, etc., include the following (partial list):

Material Weaknesses, Instances of Nonconformance

CBP identified the following material weaknesses and instances of nonconformance for FY 2008:

1. drawback controls

(CBP notes that the Automated Commercial System (ACS) has inherent limitations in detecting and preventing excessive drawback claims; therefore, CBP relies on a risk-based approach to review drawback claims. Weaknesses relating to ACS include: deficiencies in controls to detect excessive drawback claims, deficiencies over the accumulation of claims against a drawback bond, limitation in the review of prior related drawback claims, and deficiencies in ACS selectivity for underlying consumption entries.

CBP continues to work with ACE developers to design and implement an automated system to address these weaknesses and provide improved automated controls. In addition, strengthening drawback controls depends on legislation to simplify the drawback process and to revise the document retention period for documents that support drawback claims. CBP can recommend a change to the recordkeeping requirements; however, support from the trade community is critical to proposing a statutory change.)

1. laptop computer security
2. implementation of management controls for the Secure Border Initiative Program Executive Office
3. information technology general and application controls
4. core financial systems
5. US VISIT technical security issues
6. business continuity

CBP also notes that all of these issues are carryovers from previous years and remain material weaknesses or instances of nonconformance except US VISIT technical security issues and business continuity, which are newly listed. (See ITT's Online Archives or 02/10/09 news, 09021025, for BP's summary KPMG LLP's independent audit that addresses the strengths and weaknesses of CBP's FY 2008 internal controls.)

Review of Progress in Achieving Six Strategic Goals

The report discusses CBP's FY 2008 progress in achieving the six strategic goals that are set forth in CBP's Strategic Plan for FYs 2005-2010.

CBP has previously stated that this Strategic Plan sets out a vision and outlines the specific goals and objectives that CBP must accomplish to successfully carry out its mission of preventing terrorists and terrorist weapons from entering the U.S. without stifling the flow of legitimate travel and trade.

CBP's progress in achieving two of the strategic goals- preventing terrorism at the ports of entry and facilitating legitimate trade and travel - is highlighted below.

(The remaining four strategic goals are - preventing terrorism between ports of entry, unifying as one border agency, protecting America and its citizens, and modernizing and managing. See report for details on these.)

Preventing Terrorism at the Ports of Entry

Over 86% of containers moved through CSI ports. CBP states that in FY 2008, 86.1% of worldwide U.S.-destined maritime containers (tracked via their respective bills of lading) were processed through Container Security Initiative (CSI) ports. The target for FY 2008 was 86%.

In FY 2008 CBP officers conducted operations in 58 CSI ports overseas (these ports constitute the 58 largest international shipping ports). As of September 30, 2008, 35 foreign administrations had joined or had committed to join the CSI program.

(The actual for FY 2007 was 86%; the actual for FY 2006 was 82%; and the actual for FY 2005 was 73%.)

13,009 exams resolved/mitigated with CSI. In FY 2008, the number of container examinations processed or mitigated by foreign customs officials that were identified by CBP as higher-risk and accepted as meeting CBP examination standards and requirements was 13,009. CBP's target for FY 2008 was 19,000.

For an explanation as to why CBP did not meet its target, CBP states that the reduction observed for this measure in FY 2008 was the result of further efficiency improvements to the Automated Targeting System (ATS) targeting algorithms and increased use of non-intrusive inspection (NII) or physical examinations to examine high-risk shipments. Because of these permanent improvements in effectiveness for this measure, CBP expects to maintain this level of activity on an on-going basis for the foreseeable future.

(The actual for FY 2007 was 18,438; the actual for FY 2006 was 30,332; and the actual for FY 2005 was 25,222.)

Facilitating Legitimate Trade and Travel

Over 38% of CBP staff uses ACE to manage information. This measure indicates that 38.3% of CBP staff members are using Automated Commercial Environment (ACE) functionality, which provides internal personnel with easier and quicker access to more complete, accurate, and sophisticated information than in the past, to manage trade information. CBP's target for FY 2008 was 40%.

CBP explains that it did not meet its target due to delays in ACE capability deployment. CBP adds that the planned releases that would have added to the universe of CBP employees using ACE were delayed but will be deployed in FY 2009.

(The actual for FY 2007 was 30%; the actual for FY 2006 was 23%; and the actual for FY 2005 was 8%.)

Over 15,000 ACE portal accounts. In FY 2008, there were 15,465 ACE Secure Data Portal trade accounts (importers, brokers, carriers, etc.) with access to ACE functionality. The target for FY 2008 was 14,000.

According to CBP, the growth in the number of ACE accounts is due in large part to the deployment of Entry Summary, Accounts, and Revenue (ESAR) A1, which, among other things, expanded the number of ACE account types to include virtually every entity doing business with CBP, provided enhanced ACE Secure Data Portal account management features, and established the foundation for a more integrated, account-based capability in ACE.

(The actual for FY 2007 was 11,950; the actual for FY 2006 was 3,737.)

99.9% compliance for C-TPAT validations performed.This measure indicates that the overall compliance rate achieved for all Customs-Trade Partnership Against Terrorism (C-TPAT) validations performed in FY 2008 was 99.9%. CBP's FY 2008 target was 95.5%.

CBP adds that over 80% of all C-TPAT members have been validated by CBP, with a total of 7,631 validations expected to be completed by the end of FY 2008.

CBP notes that new C-TPAT offices were opened in Buffalo, New York and in Houston, Texas, bringing the total number of U.S. regional offices to seven. CBP also implemented the Security and Accountability for Every (SAFE) Port Act of 2006 mandate to create a Third Party Verification Pilot Program for C-TPAT.

(The actual for FY 2007 was 98%; the actual for FY 2006 was 98%; the actual for FY 2005 was 97%.)

Comparison of CBP's FY 2008 and FY 2007 Budgets by Program

The report also presents a comparison of CBP's FY 2008 and FY 2007 budget by major program element as follows:

*For FY 2007, this included C-TPAT, FAST, NEXUS, and SENTRI

FY 2008 Statistical Highlights

In its report, CBP lists the following as statistical highlights for FY 2008 (partial list):

Ports of entry: 327 (includes 15 preclearance stations)

Trade entries processed: 29 million

Conveyances processed: 121 million

Total revenue collected: more than $34.5 billion (includes custodial and entity revenue)

Illegal narcotics seized: 3.1 million pounds (represents narcotics held by CBP until disposal or destruction)

Border Patrol Sectors: 20 (with 140 Border Patrol stations nationwide and 34 permanent checkpoints)

(See ITT's Online Archives or 01/25/08 news, 08012515, for BP summary of CBP's FY 2007 Performance and Accountability Report.

See ITT's Online Archives or 03/07/05 news, 05030705, for BP summary of CBP's draft 2005-2010 Strategic Plan.)

Questions and comments should be sent to CBP.PAR@dhs.gov

CBP's Performance & Accountability Report for FY 2008 (posted 02/17/09) available at http://www.cbp.gov/linkhandler/cgov/newsroom/publications/admin/par_fy08_pub.ctt/par_fy08.pdf