Wherever that mule is, it will be honored and protected by the Department of Homeland Security. The editorial in today's Daily News: ]More terror funds? Let us bray Every year, Columbia, Tenn., holds Mule Day, which is not merely a day but "an almost week-long celebration of the mule." This year, it began with a canasta tournament, ended with a concert of gospel music and in between featured "pickin' and grinnin'," a knife auction, ham and biscuit breakfasts and a liars' contest. Surely a good time was had by all, and perhaps, verily, the Mule Day festivities are indeed in danger from Islamic terrorists. But somehow we doubt it. Nevertheless, Mule Day is listed as a potential target in the Department of Homeland Security's National Asset Database, along with, to name a few: a Bean Fest, the Groundhog Zoo (which best we can tell, is a tank at the Punxsutawney, Pa., public library), something called Trees of Mystery, Mail Boxes Etc., a landfill and - even more mysterious than the trees - a "Beach at End of [a] Street." All things being possible, Osama Bin Laden could, at this very moment, be sending his minions to destroy the "Beach at End of [a] Street," provided he has figured out which beach and which street. But somehow we doubt that, too. As apparently does the Office of Inspector General for Homeland Security, which this week issued an embarrassing report on the above-mentioned National Asset Database, which shows, for instance, that Indiana has 50% more at-risk assets than does New York. Is it any wonder that Homeland Security has stiffed New York in terror funding? No, there is no wonder because the agency under Michael Chertoff is a blundering behemoth of a bureaucracy with less sense than a mule or a groundhog. In this case, Congress ordered up an inventory of America's most critical potential targets, and Homeland Security responded by asking states to submit lists - without telling anyone what kind of targets were appropriate for listing. Some states then submitted everything bigger than a carpool, and Homeland Security duly recorded every entry. The folks in Indiana appear to have gotten passionately enthusiastic, while New York officials played it a bit safe listing, for another example, only 2% of the nation's banking and finance-sector assets. Indeed, the IG's report notes that the large number of "out-of-place" assets listed in the database are the result of both the states' "unfamiliarity with identifying" targets anda "lack of direction." All this could be amusing, except that the database is a critical tool in doling out anti-terror funding. Chertoff and his underlings had better put massive database revision on their immediate to-do list. As for the department spokesman who was quoted as saying of the database, "We don't find it embarrassing. The list is a valuable tool," well, this guy should head down to Columbia, Tenn., for the next Mule Day festival liars' contest. Later