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Introduction Performance and Accountability Report Fiscal Year 2016 2016 Performance and Accountability Report • U.S. Customs and Border Protection I This page intentionally left blank. Performance and Accountability Report Mission Statement: To safeguard America’s borders thereby protecting the public from dangerous people and materials while enhancing the Nation’s global economic competitiveness by enabling legitimate trade and travel Core Values Vigilance Service To Country Integrity Vigilance is how we ensure the safety Service to country is embodied in Integrity is our cornerstone. We are of all Americans. We are continuously the work we do. We are dedicated guided by the highest ethical and watchful and alert to deter, detect, to defending and upholding the moral principles. Our actions bring and prevent threats to our Nation. We Constitution and the laws of the honor to ourselves and our Agency. demonstrate courage and valor in the United States. The American people protection of our Nation. have entrusted us to protect the homeland and defend liberty. This page intentionally left blank. About This Report Introduction About This Report The U.S. Customs and Border Protection (CBP, or the agency) Fiscal Year (FY) 2016 Performance and Accountability Report (PAR) combines CBP’s Annual Performance Report with its audited financial statements, assurances on internal control, accountability reporting, and Agency assessments. CBP’s PAR provides program, financial, and performance information that enables Congress, the President, and the public to assess its performance as it relates to the CBP mission. The CBP PAR discusses the Agency’s strategic goals and objectives and compares its actual performance results to performance targets which align with the Department of Homeland Security (DHS) major missions established by the DHS Strategic Plan 2014-2018 and that support the requirements of the Government Performance and Results Act (GPRA) and the GPRA Modernization Act (GPRAMA) of 2010. The CBP PAR is also prepared in accordance with the provisions of the Office of Management and Budget (OMB) Circular No. A-136, with respect to the information presented in the Financial Section of this report. The Management’s Discussion and Analysis and the Performance sections of the PAR are prepared in accordance with certain provisions of the Reports Consolidation Act of 2000 (Public Law 106-531), GPRAMA, Chief Financial Officer’s (CFO) Act of 1990 (Public Law 101-576), and other financial management statutes and reports. This report summarizes the Agency’s major mission strategies (i.e., programs and initiatives) under its strategic goals and objectives as outlined in CBP’s current Strategic Plan – CBP Vision and Strategy 2020. Additional information related to specific programs, initiatives, tools, and resources to achieve Agency goals and objectives is contained in the FY 2016 DHS Congressional Budget Justification for the President’s Budget, which details information by DHS component. CBP’s FY 2016 PAR and the Summary of Performance and Financial Information is available online at https://www.cbp.gov/newsroom/publications. For more information: U.S. Customs and Border Protection Office of Finance 1331 Pennsylvania Avenue, NW, Suite 1555 Washington, DC 20004 Follow us on: https://twitter.com/CustomsBorder https://www.linkedin.com/company/customs-and-border-protection https://www.youtube.com/user/customsborderprotect https://www.flickr.com/photos/cbpphotos/ Email updates: https://public.govdelivery.com/accounts/USDHSCBP/subscriber/new 2016 Performance and Accountability Report • U.S. Customs and Border Protection 1 Introduction CBP At A Glance CBP At A Glance Established 2003 Ronald Reagan Building Headquarters 1300 Pennsylvania Avenue NW, Washington, DC 20229 Commissioner R. Gil Kerlikowske 2016 Total Employees Approximately 59,000 Net Budget Authority $15.1 billion Foreword CBP is part of DHS. OMB requires DHS to implement the CFO Act of 1990 and prepare consolidated financial statements, which include component agencies’ financial information. CBP consolidates key data and information and provides it to DHS for incorporation into its corresponding reports. Although not required, CBP also undergoes a standalone, independent audit of its annual financial statements, and prepares annual financial statements and a PAR using the same statutory and guidance framework used by DHS. CBP has undergone a standalone, independent audit of its annual financial statements, and produced its own PAR or Agency Financial Report since FY 2003. CBP’s FY 2016 PAR provides an overview of the Agency’s financial and performance data to help Congress, the President, and the public assess its performance and stewardship of resources. CBP strives to raise the bar with top performance and financial accountability and help DHS and the Federal Government excel in providing high-quality services and products to American taxpayers. This report and reports from prior years are available on the CBP website at https://www.cbp.gov/newsroom/publications. Links to previous years’ PARs FY 2012 PAR FY 2013 PAR FY 2014 PAR FY 2015 PAR 2 U.S. Customs and Border Protection • 2016 Performance and Accountability Report Table of Contents Introduction Table of Contents 1 Introduction 95 Financial Section 1 About This Report 96 Message from the Chief Financial Officer 2 CBP At A Glance 97 Financial Statements 4 Message from the Commissioner 104 Notes to Financial Statements 132 Required Supplementary Information Management’s Discussion 137 Auditors' Report 5 and Analysis 6 Mission and Organizational Structure 163 Other Information 19 Performance Goals, Objectives, and Results 164 Combined Schedule of Spending 26 Financial Management 166 Petitioned and Protested Schedule 31 Management Assurances 167 Accounts Receivable with Public 168 Taxes, Duties and Trade Receivables 37 Performance Section 170 CBP Collections by Major Processing 38 Performance Summary Port Locations 39 Goal 1 - Counter Terrorism and 171 Summary of Financial Statement Audit and Management Assurances Transnational Crime 172 Improper Payments Information 53 Goal 2 - Advance Comprehensive Border Act of 2002 Security and Management 176 Freeze the Footprint 71 Goal 3 - Enhance U.S. Economic 177 Acknowledgments Competitiveness by Enabling Lawful Trade 178 Acronyms and Travel 81 Goal 4 - Promote Organizational Integration, Innovation, and Agility 2016 Performance and Accountability Report • U.S. Customs and Border Protection 3 Introduction Message from the Commissioner Message from the Commissioner Fiscal Year (FY) 2016 has been a productive and proud year for the men and women of U.S. Customs and Border Protection (CBP). Our daily operations fulfill our core mission of safeguarding America’s borders, protecting the public from dangerous people and materials, and enhancing the Nation’s global economic competitiveness by facilitating legitimate trade and travel. The FY 2016 Performance and Accountability Report (PAR) for CBP discusses our challenges, accomplishments, performance results, financial information, interesting facts, and noteworthy stories of success as the Nation’s premier law enforcement agency. CBP is the second largest revenue collection agency that collects more than $44 billion in revenue per year for the Federal Government; therefore, we owe the public total transparency in our stewardship responsibilities. Our PAR describes how we manage our resources and administer our programs, demonstrating our total commitment to responsible stewardship. It provides an opportunity to communicate to the public our programs, challenges, and accomplishments in achieving our mission. For example, the Management Assurances section contains information relating to the reliability and completeness of the financial and performance information and the actions CBP has taken to enhance its effectiveness and efficiency. We work hard to meet the public’s expectations and continue to make great strides by focusing on our four strategic goals: • Counter Terrorism and Transnational Crime • Advance Comprehensive Border Security and Management • Enhance U.S. Economic Competitiveness by Enabling Lawful Trade and Travel • Promote Organizational Integration, Innovation, and Agility As the guardians of our Nation’s borders, CBP serves in a crucial leadership role for America’s national security and trade interests, and sets the standard for excellence through the unifying tenets of collaboration, innovation, and integration. In FY 2016, CBP’s accomplishments have made important contributions to our Nation’s homeland security and economic vitality by protecting the United States and the American people from the entry of dangerous goods and people. Through the use of technology, personnel, and resources, CBP has made significant progress in border security efforts, including increases in illegal drug seizures and apprehensions of illegal border crossers. The goal of the PAR remains to provide Congress and the American public with timely, reliable, and useful financial information and to illustrate the value and impact of CBP’s contributions to U.S. prosperity and security. This same information enables CBP managers to make sound business decisions, improve our processes, and increase our efficiency and effectiveness as we execute our vital missions on a daily basis. Looking ahead to FY 2017, CBP will dedicate significant time and effort to making sound investments – in technology and the people who use it – while solidifying existing
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