GAO

United States General Accounting Office

Financial Management Series

October 2000 SEIZED PROPERTY 

AND FORFEITED 

ASSETS SYSTEMS 

REQUIREMENTS

Checklist for 

Reviewing Systems 

Under the Federal 

Financial Management 

Improvement Act

GAO-01-99G
GAO-01-99G – Seized Property and Forfeited Assets Systems Checklist (10/00)

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CONTENTS

______________________________________________________________________________

Overview 5

Authoritative Guidance 6

How to Use This Checklist 7

Seized Property and Forfeited Assets Systems Requirements 9

Seizure Activities 11

Custody Activities 13

Forfeiture Activities 16

Disposition Activities 18

Reporting and Other Requirements 21

General Systems Requirements 25

Interfacing Systems 27

System Administration 30

Records Retention 31

Other General Systems Issues 32

Figure

Figure 1: Agency Systems Architecture 5

Abbreviations

CFO chief financial officer

FASAB Federal Accounting Standards Advisory Board

FFMIA Federal Financial Management Improvement Act of 1996

GPRA Government Performance and Results Act of 1993

JFMIP Joint Financial Management Improvement Program

OMB Office of Management and Budget

SFFAS Statement of Federal Financial Accounting Standards
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PREFACE

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October 2000

The Federal Financial Management Improvement Act (FFMIA) of 1996 requires, among

other things, that agencies implement and maintain financial management systems that

substantially comply with federal financial management systems requirements. These

requirements are detailed in the Financial Management Systems Requirements series

issued by the Joint Financial Management Improvement Program (JFMIP), in Office of

Management and Budget (OMB) Circular A-127, Financial Management Systems, and

OMB’s Implementation Guidance for the Federal Financial Management Improvement

Act (FFMIA) of 1996, issued September 9, 1997. JFMIP intends for the requirements to

promote understanding of key financial management systems concepts and requirements,

to provide a framework for establishing integrated financial management systems to

support program and financial managers, and to describe specific requirements of

individual types of financial management systems.

We are issuing this checklist that reflects JFMIP’s revised Seized Property and Forfeited

Assets Systems Requirements (December 1999) to assist (1) agencies in implementing

and monitoring their seized property and forfeited systems and (2) managers and auditors

in reviewing agency seized property and forfeited assets systems to determine if they

substantially comply with FFMIA. This checklist is not required to be used in assessing

the seized property and forfeited systems. It is provided as a tool for use by experienced

staff. This checklist, the JFMIP source document, and the two previously mentioned

OMB documents should be used concurrently. Experienced judgment must be applied in

the interpretation and application of this tool to enable a user to consider the impact of

the completed checklist on the entire seized property and forfeited systems and whether

the systems, as a whole, substantially comply with requirements.

Additional copies of the checklist can be obtained from U.S. General Accounting Office,

700 4th St. NW, Room 1100, Washington, D.C. 20548, or by calling (202) 512-6000, or TDD

(202) 512-2537. This checklist replaces GAO’s previously issued exposure draft of the

Seized/Forfeited Asset System Checklist (April 2000) and is available on the Internet on

GAO’s Home Page (www.gao.gov) under “Other Publications.”

Jeffrey C. Steinhoff

Managing Director

Financial Management and Assurance
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OVERVIEW

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The Federal Financial Management Improvement Act (FFMIA) of 1996 requires, among

other things, that agencies implement and maintain financial management systems that

substantially comply with federal financial management systems requirements. These

system requirements are detailed in the Financial Management Systems Requirements

series issued by the Joint Financial Management Improvement Program (JFMIP)1

and

Office of Management and Budget (OMB) Circular A-127, Financial Management Systems.

JFMIP requirements documents identify (1) a framework for financial management

systems, (2) core financial systems requirements, and (3) 16 other financial and mixed

systems supporting agency operations, not all of which are applicable to all agencies.

Figure 1 is the JFMIP model that illustrates how these systems interrelate in an agency's

overall systems architecture.

Figure 1: Agency Systems Architecture

Source: JFMIP Seized Property and Forfeited Assets Systems Requirements (December

1999).

1

JFMIP is a joint cooperative undertaking of OMB, the General Accounting Office, the

Department of the Treasury, and the Office of Personnel Management, working in

cooperation with each other and with operating agencies to improve financial

management practices throughout the government. The program was initiated in 1948 by

the Secretary of the Treasury, the Director of the Bureau of the Budget (now OMB), and

the Comptroller General and was given statutory authorization in the Budget and

Accounting Procedures Act of 1950. The Civil Service Commission, now the Office of

Personnel Management (OPM), joined JFMIP in 1966.
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To date, JFMIP has issued the framework and systems requirements for the core financial

system and 8 of the 16 systems identified in the architecture. (See figure 1.) 2

We are issuing this checklist that reflects JFMIP’s revised Seized Property and Forfeited

Assets Systems Requirements (December 1999) to assist (1) agencies in implementing

and monitoring their seized property and forfeited assets systems and (2) managers and

auditors in reviewing agency seized property and forfeited assets systems to determine if

they are in substantial compliance with FFMIA. This checklist is not required to be used

in assessing the seized property and forfeited assets systems. It is provided as a tool for

use by experienced staff. This checklist, the JFMIP source document, OMB Circular A127, Financial Management Systems, and OMB’s Implementation Guidance for the

Federal Financial Management Improvement Act (FFMIA) of 1996, issued September 9,

1997 should be used concurrently. Experienced judgment must be applied in the

interpretation and application of this tool to enable users to consider the impact of the

completed checklist on their entire seized property and forfeited assets systems and

whether the systems, as a whole, substantially comply with requirements.

Authoritative Guidance

OMB Circular A-127 and OMB’s implementation guidance provide the basis for assessing

compliance with the FFMIA requirements for agencies to implement and maintain

financial management systems that comply substantially with federal requirements. The

implementation guidance identifies various criteria that an agency must meet to

substantially comply with these requirements. One of the criteria listed in the OMB

guidance is the JFMIP systems requirements series.

The source of all the questions in this checklist is the JFMIP Seized Property and

Forfeited Assets Systems Requirements (JFMIP-SR-99-14, December 1999). This JFMIP

document is an update of the March 1993 JFMIP Seized/Forfeited Assets System

Requirements document. This update incorporates legislative changes and federal

accounting standards, including Federal Accounting Standards Advisory Board (FASAB)

Statement of Federal Financial Accounting Standards Standard Number 3, Accounting for

Inventory and Other Related Property (SFFAS No. 3). The new requirements document

has been expanded to include new sections on property seized for purposes other than

forfeiture and the corresponding system requirements. These requirements cover any

property, regardless of value, seized by the federal government as well as assets forfeited

to the federal government as a consequence of a law enforcement action or property

abandonment proceedings. The checklist is based on the existing published JFMIP

standards. Changes in laws, regulations, and standards and practices since the standards

were issued are not included in the checklist.

2

Thus far, the series includes the (1) Framework for Federal Financial Management

Systems, (2) Core Financial System Requirements, (3) Inventory System Requirements,

(4) Seized Property and Forfeited Assets System Requirements, (5) Direct Loan System

Requirements, (6) Guaranteed Loan System Requirements, (7) Travel System

Requirements, (8) Human Resources & Payroll Systems Requirements, (9) System

Requirements for Managerial Cost Accounting, and (10) Grant Financial System

Requirements. In early 1998, JFMIP decided to initiate projects to update system

requirements documents that were not current with regulations and legislation. JFMIP

also planned to initiate projects to complete the remaining systems requirements.
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The revised JFMIP document segregates functional requirements into two general

categories--mandatory and value added. The mandatory requirements describe what the

system must do and consist of the minimum acceptable functionality necessary to

establish a system or are based on federal laws and regulations. Mandatory requirements

are those against which agency heads evaluate their systems to determine substantial

compliance with system requirements under FFMIA. These requirements apply to

existing systems in operation and new systems planned or under development. The

checklist uses “(M)” immediately following the question to indicate that it is mandatory

for the system to do that.

The value-added requirements describe features or characteristics and may consist of any

combination of the following: (1) using state-of-the-art technology, (2) employing the

preferred or best business practices, or (3) meeting the special management needs of an

individual agency. Value-added, optional, and other similar terminology may be used to

describe this category of requirements. Agencies should consider value-added features

when judging systems options. The need for these value-added features in agency

systems is left to the discretion of each agency head. The checklist uses “(V)”

immediately following the question to indicate that the item is value added rather than

mandatory.

How to Use This Checklist

OMB’s 1997 implementation guidance provides chief financial officers (CFO) and

inspectors general with a means for determining whether their agencies’ financial

management systems substantially comply with federal financial management systems

requirements. The annual reporting required pursuant to section 4 of the Federal

Managers’ Financial Integrity Act (FMFIA) of 1982 is one of the means to assist agencies

in the determination of substantial compliance. Agencies can also use this checklist as a

tool to help determine compliance with federal financial management systems

requirements.3

Filling out this checklist will allow agencies to systematically determine whether specific

systems requirements are being met. In determining substantial compliance, agencies

should assess the results of the completed checklist on the seized property and forfeited

assets systems requirements taken as a whole.

3

In addition, the CFO Council has charged the Financial Systems Committee with

developing implementation guidance for performing FFMIA and other compliance

reviews. The CFO Council and JFMIP plan to jointly issue the guidance.

The checklist contains three columns with the first citing the question followed by either

“(M)” for mandatory requirements or “(V)” for value added. Use the second column to

answer each question “yes,” “no,” or “na.” Use the third column to explain your answer.

A “yes” answer should indicate that the agency’s seized property and forfeited assets

systems provide for the capability described in the question. For each “yes” answer, the

third column should contain a brief description of how the seized property and forfeited

assets systems satisfy that capability and should also refer to a source that explains or

shows the capability.

A “no” answer indicates that the capability does not exist. For a “no” answer, the third

column should provide an explanation and, where applicable, a reference to any related
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supporting documentation (e.g., the agency is working on modifying or implementing its

seized property and forfeited assets systems to have the capability available in

subsequent years; management believes the capability is not cost effective and will not

enhance the seized property and forfeited assets systems’ ability to manage operations).

Cost-benefit studies, or other reasoning, that supports a “no” answer should be identified

in the explanation column. If there are no cost-benefit studies or other support, a full

explanation should be provided.

“No” answers should not be viewed individually or taken out of context. Rather, “no”

answers should be assessed as to their impact on the overall seized property and forfeited

assets systems and the extent to which the “no” answers inhibit the entire seized property

and forfeited assets systems from being substantially compliant.

Certain questions within the checklist may not be applicable to the agency. Answer such

nonapplicable question(s) with “na” and provide an appropriate explanation in the third

column.
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SEIZED PROPERTY AND FORFEITED ASSETS SYSTEMS REQUIREMENTS

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JFMIP’s Seized Property and Forfeited Assets Systems Requirements defines mandatory

and value-added functional requirements for the following seized property and forfeited

assets elements that are described below: (1) seizure activities, (2) custody activities,

(3) forfeiture activities, (4) disposition activities, (5) reporting and other requirements,

(6) general systems requirements, (7) interfacing systems, (8) system administration,

(9) records retention, and (10) other general systems issues.

1. Seizure activities. When certain civil and criminal laws or regulations are

violated, enforcement agencies have the authority to seize the property. All

federal government seizures of private property must be made in accordance with

applicable laws and regulations and must be specifically authorized. This initial

authorization is the cornerstone of all subsequent activity. (The checklist

questions for this area are drawn from p. 15 of the JFMIP source document.)

2. Custody activities. Organizations that have custody of seized property and

forfeited assets must have adequate policies and procedures to ensure that all

property and assets are properly received, recorded, valued, maintained, and

controlled throughout the legal process underlying the seizure. (The checklist

questions for this area are drawn from p. 16 of the JFMIP source document.)

3. Forfeiture activities. As a consequence of certain legal proceedings, title to

property, real or personal, is transferred to the United States. (The checklist

questions for this area are drawn from p. 17 of the JFMIP source document.)

4. Disposition activities. A key component of effective property seizure and asset

forfeiture processes is disposing of the property in an orderly fashion after

determining that disposition is appropriate. If asset disposition is perceived to be

unfair or inefficient, the effectiveness of the entire process could be called into

question. In some cases, the property may be returned to an entity outside of the

federal government as a result of the law enforcement action. It is particularly

important to account for all costs, revenues, and proceeds from disposition. (The

checklist questions for this area are drawn from p. 18 of the JFMIP source

document.)

5. Reporting and other requirements. All seized property and asset forfeiture

systems must be able to support management’s objectives for efficiency and

quality in order to ensure compliance with Government Performance and Results

Act (GPRA) of 1993 requirements. They must fully disclose the financial results of

the program. (The checklist questions for this area are drawn from p. 19 of the

JFMIP source document.)

6. General systems requirements. This section covers general requirements not

found in other sections. (The checklist questions for this area are drawn from

p. 20 of the JFMIP source document.)
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7. Interfacing systems. Agency financial management systems fall into four

categories: core financial systems, other and mixed systems (including inventory

systems), shared systems, and departmental executive information systems

(systems that provide management information to all levels of managers). These

systems must be linked together electronically to be effective and efficient. (The

checklist questions for this area are drawn from p. 21 of the JFMIP source

document.)

8. System administration. System administration provides centralized control over a

seized property and forfeited assets system. (The checklist questions for this area

are drawn from p. 22 of the JFMIP source document.)

9. Records retention. Federal government records may be destroyed only with

proper approval. (The checklist questions for this area are drawn from p. 23 of

the JFMIP source document.)

10. Other general systems issues. This section covers other general requirements not

found in other sections. (The checklist questions for this area are drawn from

p. 24 of the JFMIP source document.)

The checklist questions follow the JFMIP source document. It should be noted that not

all questions will apply in all situations and, as with the use of any checklist, professional

judgment should be exercised. Using the JFMIP source document and its “Appendix B:

Glossary,” which defines terms used, along with OMB Circular A-127, Financial

Management Systems, and OMB Implementation Guidance for the Federal Financial

Management Improvement Act (FFMIA) of 1996, issued September 9, 1997, will help

ensure that the user is cognizant of the background information necessary to fully

understand the questions.
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Seizure activities

Yes/no/

na Explanation

1. Are all federal government

seizures of private property

made in accordance with

applicable laws and regulations,

and are they specifically

authorized? (M)

2. Does the seized property system

provide a unique identifier for

the property that will facilitate

tracking through seizure,

holding, and disposition? (M)

3. Does the seized property system

provide for the timely recording

of the date of seizure, the type

of property, the location where

it was seized, the storage

location, owner(s) if known,

and any other entity involved in

the seizure? (M)

4. Does the seized property system

provide for the timely and

accurate recording of the

originally assigned value and

any subsequent updates to the

valuation? (M)

5. Does the seized property system

provide for the timely recording

of any mortgage and claim

liabilities against each asset

seized for forfeiture or Internal

Revenue Code enforcement?

(M)

6. Does the seized property system

provide the capability to obtain

current information on the

processing status of any seized

property in the database with

the use of an automated query

mechanism? (M)
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Seizure activities

Yes/no/

na Explanation

7. Does the seized property system

provide the information

necessary to enable routine

verification of the legal

authority for the seizure,

including the ability to verify

that the agency seizure or

forfeiture criteria have been

observed? (M)

8. Does the seized property system

allow for the correction,

amendment, and cancellation of

the seizure authorization for the

property under seizure and

provide reports to responsible

program officials on this

activity? (M)

9. Does the seized property system

provide the information

necessary to allow for the

prompt payment of properly

authorized and billed services?

(M)

10. Does the seized property system

interact with the core financial

system to accomplish the task

described in the prior question?

(M)

11. Does the seized property system

allocate and record all

appropriate costs of the seizure

on a basis consistent with the

type of property and the nature

of the seizure? (M)
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Custody activities

Yes/no/

na Explanation

1. Does the organization having

custody of seized property and

forfeited assets have adequate

policies and procedures to

ensure that all seized property

and forfeited assets are properly

received, recorded, valued,

maintained, and controlled

throughout the legal process

underlying the seizure? (M)

2. Does the custody system

component have the capability

to capture, record, and maintain

accurate information on the

current legal status, geographic

location, responsible custodian,

and current recorded value of

seized property and forfeited

assets in custody? (M)

3. Does the custody system

component have the capability

to provide a record

documenting that advertising

and the issuance of notice of

property seized have been

accomplished, if required? (M)

4. Does the custody system

component have the capability

to provide information to enable

seized cash to be deposited

promptly into cash holding

accounts, if required? (M)

5. Does the custody system

component have the capability

to track and promptly record

the deposit of revenue

generated by seized businesses

and cash on a basis consistent

with the nature of the property?

(M)
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Custody activities

Yes/no/

na Explanation

6. Does the custody system

component have the capability

to segregate forfeited assets

from property in a seized or

detained status? (M)

7. Does the custody system

component have the capability

to allocate and record all

appropriate costs and revenues

on a basis consistent with the

type of property and the nature

of the custodial action? (M)

8. Does the custody system

component have the capability

to record and account for all

theft, loss, and damage

expenses by identification

number? (M)

9. Does the custody system

component have the capability

to provide accurate and timely

reconciliations between the

seizing agency’s seizure records

and property records of

custodians being used to

maintain, store, and dispose of

seized property? (M)

10. Does the custody system

component have the capability

to provide information to allow

the independent verification

that each item of seized

property or each forfeited asset

is in the physical or constructive

custody of the government and

that the recorded quantity, legal

status, geographic location, and

value are accurate? (M)

11. Does the custody system

component have the capability

to provide information to allow
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Custody activities

Yes/no/

na Explanation

an independent verification that

all billed contractor or vendor

services were actually

performed? (M)

12. Does the custody system

component have the capability

to record and track cost bonds,

as appropriate? (M)

13. Does the custody system

component have the capability

to provide information to pay

promptly all contractors or

vendors performing

maintenance or management

services and to interact with the

core financial system to

accomplish this task? (M)

14. Does the custody system

component have the capability

to record the forfeiture, as

appropriate? (M)

15. Does the custody system

component have the capability

to record information on the

legal authority for forfeiture, as

appropriate? (M)
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Forfeiture activities

Yes/no/

na Explanation

1. Does the abandoned property

and forfeited assets system

provide a unique identifier for

the property that will facilitate

tracking through seizure,

holding, and disposition? (M)

2. Does the abandoned property

and forfeited assets system

provide for the timely recording

of the date of seizure, the type

of property, the location where

it was seized, the storage

location, owner(s) if known,

and any other entity involved in

the seizure? (M)

3. Does the abandoned property

and forfeited assets system

provide for the timely and

accurate recording of the

originally assigned value and

any subsequent updates to the

valuation? (M)

4. Does the abandoned property

and forfeited assets system

provide for the timely recording

of any mortgage and claim

liabilities against each asset

seized for forfeiture? (M)

5. Does the abandoned property

and forfeited assets system

provide the capability to obtain

current information on the

processing status of any

abandoned property or forfeited

assets in the database by use of

an automated query

mechanism? (M)

6. Does the abandoned property

and forfeited assets system

provide the information
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Forfeiture activities

Yes/no/

na Explanation

necessary to enable routine

verification of the legal

authority for the seizure? (M)

7. If the answer to the above

question is yes, does the

information include the ability

to verify that the agency seizure

or forfeiture criteria have been

observed? (M)

8. Does the abandoned property

and forfeited assets system

provide the information

necessary for prompt payment

of properly authorized and

billed services and interact with

the core financial system to

accomplish this task? (M)

9. Does the abandoned property

and forfeited assets system

support the recording and

capture of all appropriate costs

of the forfeiture process on a

basis consistent with the type of

property? (M)
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Disposition activities

Yes/no/

na Explanation

1. Does the asset disposition

system component have the

capability to record each

disposition, including the unique

identifier of the property or

asset, type of property or asset,

type of disposition, the

individuals responsible for

authorizing and executing the

actions, the value at time of

disposition or the gross

proceeds generated from the

disposition, and to whom the

asset or property was released

or transferred? (M)

2. Does the asset disposition

system component have the

capability to accurately record a

partial distribution of an asset?

(M)

3. Does the asset disposition

system component have the

capability to record all

appropriate costs and revenues

on a basis consistent with the

type of property and the nature

of the disposal action? (M)

4. Does the asset disposition

system component have the

capability to verify that proper

authorization exists for all

dispositions? (M)

5. Does the asset disposition

system component have the

capability to record and account

accurately for all distributions

of excess revenues over

expenses? (M)

6. Does the asset disposition

system component have the
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Disposition activities

Yes/no/

na Explanation

capability to provide a complete

accounting for both the

applicable central fund balances

and any related deposit fund

balance? (M)

7. Does the asset disposition

system component have the

capability to provide an audit

trail for assets distributed to

other entities? (M)

8. Does the asset disposition

system component have the

capability to record the deposit

into the applicable account of

all proceeds from the sale of

forfeited or abandoned assets?

(M)

9. Does the asset disposition

system component have the

capability to record transfers of

cash from the applicable deposit

fund to the applicable central

fund account? (M)

10. Does the asset disposition

system component have the

capability to support the

payment of contractors,

innocent owners, or approved

claimants? (M)

11. Does the asset disposition

system component have the

capability to flag low-value and

time-sensitive assets to ensure

their timely recording and

liquidation? (V)

12. Does the asset disposition

system component have the

capability to periodically test

asset disposition transactions to
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Disposition activities

Yes/no/

na Explanation

ensure that the process is not

being victimized by insider4

transactions? (V)

13. Does the asset disposition

system component have the

capability to ensure that all

billed contractor services were

actually performed? (V)

4

Most federal agencies have specific prohibitions or outright bans on certain employees

and contractors (1) participating in the disposal of property and (2) subsequently

acquiring that property.
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Reporting and other

requirements

Yes/no/

na Explanation

1. Are the seized property and

asset forfeiture systems able to

support management’s

objectives for efficiency and

quality in order to ensure

compliance with GPRA

requirements? (M)

2. Are the seized property and

asset forfeiture systems able to

fully disclose the financial

results of the program? (M)

3. Are the seized property and

asset forfeiture systems able to

support performance measures

that management can use to

assess the efficiency and quality

of the financial management

process? (M)

4. Are the seized property and

asset forfeiture systems able to

support performance

measurement for specific

program components, such as

property disposal? (M)

5. Is management able to assess

performance from a variety of

perspectives, including

programwide or agencywide

levels? (V)

6. Do the seized property and

asset forfeiture systems provide

reports for accounting and

payment history purposes that

are adapted to meet agency

needs? (M)

7. Efficiency and quality

performance indicators may

include the periodic calculation

of the time elapsed for each
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Reporting and other

requirements

Yes/no/

na Explanation

seizure to proceed through the

asset forfeiture process and a

comparison of the time elapsed

to established management

goals. At a minimum, both the

time necessary to complete the

entire process and the time

intervals between the following

key processing steps should be

measurable, on a average, for

any individual seizure and for

each asset type. Do the seized

property and asset forfeiture

systems have the following

features:

• cash seizure to deposit into

holding account, if

appropriate? (V)

• seizure to noticing? (V)

• petition receipt to petition

ruling? (V)

• seizure to forfeiture? (V)

• forfeiture to disposal? (V)

• equitable sharing request to

sharing decision? (V)

• forfeiture to equitable

sharing disbursement? (V)

• periodic recording of the

results of individual contract

compliance audits of

valuation, custodial,

disposition, and

maintenance activities? (V)

• periodic comparisons

between the date that each

seizure or forfeiture event is

captured in the system and
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Page 23 GAO-01-99G – Seized Property and Forfeited Assets Systems Checklist (10/00)

Reporting and other

requirements

Yes/no/

na Explanation

the date the event actually

occurred and comparisons

of results to established

management data entry

goals? (V)

• periodic calculation of

trends in theft, loss, or

damage to seized property

or forfeited assets? (V)

• record of preliminary

estimates of the timing and

the financial results (net

dollar value realized, the

percentage of the currently

recorded appraised value

realized, and the percentage

of value lost) for each

forfeited asset? (V)

• periodic calculation of

trends in the ratio of

property management and

disposal costs to gross sales

proceeds for all assets sold

and comparisons of results

to established management

goals? (V)

• periodic calculation of

trends in the ratio of gross

sales proceeds to appraised

or market value of all assets

sold by asset type and

comparison to established

management goals? (V)

• periodic assessment of

management control

structure to ensure, to the

extent possible, that seized

property and forfeited assets

are safeguarded against loss

from unauthorized use or

disposition and that
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Page 24 GAO-01-99G – Seized Property and Forfeited Assets Systems Checklist (10/00)

Reporting and other

requirements

Yes/no/

na Explanation

transactions are executed in

accordance with

management’s authorization

and recorded properly to

permit the preparation of

financial statements? (V)

• accumulate performance

information on all vendors

and contractors (both

private and government)

that perform custodial or

maintenance services? (V)
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Page 25 GAO-01-99G – Seized Property and Forfeited Assets Systems Checklist (10/00)

General systems requirements

Yes/no/

na Explanation

1. The JFMIP Framework for

Federal Financial Management

Systems contains information

on internal controls, systems

architecture, software

documentation, and other

matters related to seized

property and forfeited assets

systems development,

operations, and maintenance. Is

supporting documentation

maintained throughout the

editing and processing activity

of the system? (M)

2. Is the system able to accept,

process, and report on

transactions with other internal

and external systems? (M)

3. Is the system able to record and

track these transactions and

related information in order to

provide the basis for control?

(M)

4. The requirements for software

documentation are listed in the

Core Financial System

Requirements. The information

provided is meant to identify the

scope and intent of the

documentation requirements

rather than to state them

definitively. Are the software

and documentation maintained

under configuration

management in order to

maintain system integrity and

ensure internal controls? (M)

5. Are transactions reviewed to

make sure that they are

processed correctly and that the

data produced are reliable after
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Page 26 GAO-01-99G – Seized Property and Forfeited Assets Systems Checklist (10/00)

General systems requirements

Yes/no/

na Explanation

the seized property and

forfeited asset system is

implemented? (V)

6. Is the testing conducted with

structure test data and with

actual production data? (M)

7. Are daily, monthly, quarterly,

and fiscal year-end reports

reviewed prior to dissemination,

whenever possible, to ensure

that the data have been updated

correctly? (V)
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Page 27 GAO-01-99G – Seized Property and Forfeited Assets Systems Checklist (10/00)

Interfacing systems

Yes/no/

na Explanation

1. Agency financial management

systems fall into four

categories: core financial

systems, other and mixed

systems (including inventory

systems), shared systems, and

departmental executive

information systems (systems

to provide management

information to all levels of

managers). Are these systems

linked together electronically in

order to be effective and

efficient? (M)

2. Are summary data transfers

provided from agency systems

to central systems to permit

summaries of management

information and agency

financial performance

information governmentwide?

(M)

3. Does the interface system’s

physical design consider the

agency’s organizational

philosophy, the technical

capabilities available, and the

most appropriate manner to

achieve the necessary single,

integrated financial

management system for the

agency? (V)

4. Is the system able to process

transactions from other external

systems and record and track

such transactions and related

information to provide the basis

for central control? (V)

5. Is a customized interface

provided to properly identify
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Page 28 GAO-01-99G – Seized Property and Forfeited Assets Systems Checklist (10/00)

Interfacing systems

Yes/no/

na Explanation

and format the transactions?

(V)

6. Does the system provide the

flexibility to accept data input

from multiple media that

recognize user agencies’ unique

data input requirements? (V)

7. Does the system provide the

capability to customize data

input, processing rules, and edit

criteria and to give agencies

flexibility in defining internal

operational procedures and

supporting agency

requirements? (V)

8. Does the system provide the

capability, if necessary, to

identify and process

transactions from other systems

that enter and update the

standard seized property and

forfeited assets system? (V)

9. Does the system provide the

capability to subject all

transactions from interfacing

systems to the standard seized

property and forfeited assets

system edits, validations, and

error correction procedures?

(V)

10. Does the system provide the

capability to upload and

download data in an interface

environment? (V)

11. Does the system provide the

flexibility to provide multiplemedia output reports and

recognize user agencies’ unique

data output requirements? (V)
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Page 29 GAO-01-99G – Seized Property and Forfeited Assets Systems Checklist (10/00)

Interfacing systems

Yes/no/

na Explanation

12. Does the system provide the

capability to allow users to

customize output for reporting

and provide interfaces to other

systems necessary to link

financial and program results

and meet agency requirements

for external processing (e.g.,

general ledger posting, budget

reconciliation and execution,

cost accumulation)? (V)

13. Does the system provide the

capability to transmit

information on the results of

seizure transactions and

forfeiture transactions to the

core financial system

requirements itemized in the

Core Financial System

Requirements for such purposes

as generating requests for

disbursements, updating the

standard general ledger,

generating obligation records,

generating requests for funds

transfer, and updating funds

control? (V)
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Page 30 GAO-01-99G – Seized Property and Forfeited Assets Systems Checklist (10/00)

System administration

Yes/no/

na Explanation

1. Do the systems administration

support personnel maintain an

adequately skilled work force?

(M)

2. Do the systems administration

support personnel maintain

effective financial systems

interfaces? (M)

3. Do the systems administration

support personnel monitor and

respond to user needs for

information? (M)

4. Do the systems administration

support personnel support and

maintain an effective system of

internal controls? (M)

5. Do the systems administration

support personnel maintain

general system information and

documentation? (M)

6. Do the systems administration

support personnel maintain an

effective record retention

process? (M)

7. Do the systems administration

support personnel provide the

capability to interact directly

with other system users and to

develop an automated exchange

of information, where feasible?

(M)

8. Do the systems administration

support personnel maintain

system security? (M)
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Records retention

Yes/no/

na Explanation

1. Are all agency-created records

destroyed only with the

approval of the National

Archives and Records

Administration (NARA), per

36 CFR Part 1228? For

questions regarding the

disposition of federal records,

contact:

National Archives and Records

Administration

Life Cycle Management Division

7th Street and Pennsylvania

Avenue NW

Washington, DC 20408. (M)
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Page 32 GAO-01-99G – Seized Property and Forfeited Assets Systems Checklist (10/00)

Other general systems issues

Yes/no/

na Explanation

1. Is the system in compliance

with the general systems

requirements (e.g., data

stewardship, systems

architecture, systems

integration, and internal

control) contained in the

Framework for Federal

Financial Management Systems,

Federal Financial Management

System Requirements (FFMSR)

0, JFMIP, January 1995? (M)

The framework document,

along with all other JFMIP

requirements documents, can be

found at

www.financenet.gov/financenet/

fed/jfmip/jfmip.htm.

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