Treasury Forfeiture Fund

ACCOUNTABILITY REPORT
 

Fiscal Year 2022
 

DEPARTMENT OF THE TREASURY
 

WASHINGTON, D.C.
 
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Message from the Director 

I am pleased to present the fiscal year (FY) 2022 Accountability Report for the Treasury Forfeiture Fund (the 

Fund). While highlighting the Fund’s financial and operational performance over the past year, this report also 

focuses on some of the significant investigative achievements of our participating law enforcement agencies this 

year. FY 2022 was another challenging year with a permanent rescission of $175 million as part of the 

Consolidated Appropriations Act of 2022 (P.L. 117-103). Also, $70.6 million was sequestered as part of the 

government-wide sequestration order. In terms of overall revenue, FY 2022 was another highly successful year 

for the law enforcement bureaus participating in the Treasury Forfeiture Fund, with total gross non-exchange 

revenues of $1.150 billion deposited to the Fund. 

The continued high-impact performance of the Fund reflects the ongoing hard work of our law enforcement 

bureaus as well as Fund management’s emphasis on major case initiatives, asset forfeiture program training, and 

a focused approach regarding our performance measure, which gauges revenue from high-impact cases. The 

mission of the Fund is to affirmatively influence the consistent and strategic use of asset forfeiture by our law 

enforcement bureaus to disrupt and dismantle criminal enterprises. It is our view that the greatest damage to 

criminal enterprises can be achieved through large forfeitures; hence we have set a target level of 80 percent of 

our forfeitures to be high impact, i.e., cash forfeitures equal to or greater than $100,000. This target level is up 

from 75 percent set for FY 2010 and prior years. For FY 2022, our member bureaus exceeded the target with a 

performance level of 91 percent. 

In FY 2022, we continued prioritizing the strategic use of forfeited funds to enhance our participating agencies’ 

infrastructure and capabilities while supporting high-impact financial investigations. These capabilities are 

particularly critical for highly complex Third-Party Money laundering (3PML) investigations aimed at 

dismantling the financial networks of major criminal enterprises. The Fund’s 3PML initiative supports the 

specific needs of 3PML investigations related to new technologies, cyber investigative capabilities, analytical 

tools, and professional services. Further, we also increased support for specific Southwest border initiatives to 

assist the affected member agencies in dealing with an unprecedented number of migrant families crossing the 

border throughout the year. 

This fiscal year, the Fund continued to support our member agencies’ efforts to combat criminal activities related 

to Covid-19. The agencies continued to face a spike in investigative work dealing with massive Covid-19 related 

fraud schemes and the sales of Covid-19 related counterfeit goods and pharmaceuticals online and via Darknet 

marketplaces. The Fund’s support of investigations into Covid-19 fraud and criminal activities spanned the 

entire year and will continue in the next fiscal year. 

This fiscal year, the Fund provided $96 million in Strategic Support funding to its member agencies for identified 

priority initiatives. This funding enables TFF agencies to advance operational capabilities, providing support for 

IT systems, cutting edge technology, data analysis tools, and for other critical law enforcement equipment 

needed to meet and respond to emerging criminal threats. 

The Treasury Forfeiture Fund continues in its capacity as a successful multi-Departmental Fund representing 

the interests of law enforcement components of the Departments of the Treasury and Homeland Security. 

Member bureaus include the Internal Revenue Service’s Criminal Investigation (IRS-CI), the U.S. Secret Service 

(USSS), Immigration and Customs Enforcement (ICE), and Customs and Border Protection (CBP). The U.S. 

Coast Guard (USCG) continues its close working relationship with the legacy Customs bureaus. We look 

forward to another successful year in FY 2023. 

September 30, 2022 

John Farley, Director 

Treasury Executive Office for Asset Forfeiture 

U.S. Department of the Treasury 
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Section I: Overview 

Table of Contents 

Profile of the Treasury Forfeiture Fund............................................................................1 

Strategic Mission and Vision...........................................................................................1 

Case Highlights...............................................................................................................2 

Program and Fund Highlights........................................................................................ 11 

Program Performance.................................................................................................... 12 

Financial Statement Highlights...................................................................................... 14 

Section II: Independent Auditor’s Report 

Independent Auditor’s Report........................................................................................ 19 

Section III: Financial Statements and Notes 

Financial Statements:
 

Balance Sheets......................................................................................................... 23 

Statements of Net Cost ............................................................................................ 24 

Statements of Changes in Net Position..................................................................... 25 

Statements of Budgetary Resources ......................................................................... 26 

Notes to Financial Statements.................................................................................. 27 

Section IV: 

Required Supplemental Information (Unaudited) ................................................................ 47 

Section V: 

Other Accompanying Information (Unaudited) ................................................................... 49
 
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Treasury Forfeiture Fund 

FY 2022 Management Overview 

Profile of the Treasury Forfeiture Fund 

The Treasury Forfeiture Fund (the Fund) is the receipt account for the deposit of non-tax forfeitures made 

pursuant to laws enforced or administered by law enforcement bureaus that participate in the Treasury 

Forfeiture Fund. The Fund was established in October of 1992 as the successor to the Forfeiture Fund of 

the United States Customs Service. The Fund is a “special receipt account.” This means the Fund can 

provide money to other federal entities toward the accomplishment of a specific objective for which the 

recipient bureaus are authorized to spend money and toward other authorized expenses. The use of Fund 

resources is governed by law, policy and precedent as interpreted and implemented by the Department of 

the Treasury, which manages the Fund. A key objective for management is the long-term viability of the 

Fund to ensure that there are ongoing resources to support member-bureau seizure and forfeiture activities 

well into the future. The emphasis of Fund management is on high impact cases that can do the most 

damage to criminal infrastructure. 

The Treasury Forfeiture Fund continues in its capacity as a multi-Departmental Fund, representing the 

interests of law enforcement components of the Departments of Treasury and Homeland Security. Our 

member bureaus include the Internal Revenue Service’s Criminal Investigation (IRS- CI), the U.S. Secret 

Service, Immigration and Customs Enforcement (ICE), and Customs and Border Protection (CBP). The 

U.S. Coast Guard continues its close working relationship with the legacy Customs bureaus and functions 

in a member-bureau capacity. 

The Treasury Executive Office for Asset Forfeiture (TEOAF), which provides management oversight of 

the Fund, falls under the auspices of the Under Secretary for Terrorism and Financial Intelligence. 

TEOAF’s organizational structure includes a Director, Deputy Director, Legal Counsel, and three Assistant 

Directors for: Financial Management, Policy & Administration, and Strategic Planning. Functional 

responsibilities are delegated to various team leaders. TEOAF is located in Washington, D.C., and currently 

has 27 authorized full time equivalent positions. 

Strategic Mission 

The mission of the Treasury Forfeiture Fund is to affirmatively influence the consistent and strategic use of 

asset forfeiture by law enforcement bureaus that participate in the Treasury Forfeiture Fund to disrupt and 

dismantle criminal enterprises. 

Strategic Vision 

Fund management works to focus the asset forfeiture program on strategic cases and investigations that 

result in high-impact forfeitures. Management believes this approach incurs the greatest damage to criminal 

organizations while accomplishing the ultimate objective – to disrupt and dismantle criminal enterprises. 

SECTION I - OVERVIEW 1 
 

 

 

 

 

 

Case Highlights 

The following case highlights are intended to give the reader an idea of the types of investigative cases 

worked by the Fund’s law enforcement bureaus during FY 2022 that resulted in the seizure and forfeiture 

of assets. Such cases as those profiled below are consistent with the Strategic Mission and Vision of the 

Treasury Forfeiture Program, which is to use high-impact asset forfeiture in investigative cases to disrupt 

and dismantle criminal enterprises. 

Homeland Security Investigations (HSI), Department of Homeland Security 

Violation of the Consumer Product Safety Act leads to criminal enforcement action totaling $91 

million dollars 

Information included in the following forfeiture article is attributed to: DOJ news release dated October 29, 

2021, entitled “Gree Appliance Companies Charged with Failure to Report Dangerous Dehumidifiers and 

Agree to $91 million Resolution,” and from information provided by the HSI Liaison to TEOAF. 

The Consumer Product Safety Act (CPSA) enacted in 1972 authorizes the Consumer Product Safety 

Commission to develop standards and product bans, and to pursue recalls under certain circumstances. In 

2016, Homeland Security Investigations (HSI) received information from the U.S. Department of Justice, 

Consumer Protection Branch (DOJCPB) that Gree Electric Appliances imported and sold approximately 

2.5 million defective dehumidifiers to US consumers. Gree Appliance, a global appliance manufacturer 

based in Zhuhai China, Hong Kong, Gree Electric Appliances Sales Co. Ltd, and their U.S. subsidiary Gree 

USA Inc, (collectively, the Gree Companies), sold the defective humidifiers fully knowing that their 

products failed to meet safety standards and were prone to catch fire. 

During their investigation, HSI special agents served multiple grand jury subpoenas issued by DOJCPB to 

various targets. They also conducted interviews and learned that the dehumidifiers went through burn safety 

tests and all the samples failed to meet industry standards. Gree Companies failed to report knowledge of 

the fires to CPSC and continued to sell the defective humidifiers for another six months. They did not report 

the defects in the dehumidifiers for nine months and only issued a recall after a year as consumer complaints 

of fires and physical harm soared. HSI interviewed victims of the fires and learned that the defective 

humidifiers caused severe lung damage, partial to total home loss, and monetary damages ranging up to 

four million dollars. “Inferior goods represent a serious threat to the integrity of the consumer product 

supply chain that the public needs to rely on with confidence,” said Los Angeles Special Agent in Charge 

David A. Prince, Homeland Security Investigations (HSI). “Defective products like these pose a dangerous 

threat to consumers, who assume the products they buy are safe and reliable. HSI will continue to work 

with our law enforcement partners to aggressively target and investigate those who knowingly jeopardize 

public safety in the name of profit.” 

On October 26, 2021, Gree Companies entered into a deferred prosecution agreement (DPA) and pled guilty 

to a criminal information that charged Gree Companies with failing to notify the Consumer Product Safety 

Commission. The resolutions were the first corporate criminal enforcement actions ever brought under the 

Consumer Product Safety Act. Under the terms of the DPA, Gree Companies agreed to a total monetary 

penalty of $91 million and agreed to provide restitution for any uncompensated victims of fires caused by 

the companies’ defective dehumidifiers. “Companies and executives that purposefully delay reporting to 

maintain profits will be prosecuted. The Department of Justice will continue to work closely with the CPSC 

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to ensure consumers’ safety,” said Acting Assistant Attorney General Brian M. Boynton of the Justice 

Department’s Civil Division. 

Figure1: Image of a defective dehumidifier 

Figure 2: Photo of fire damage caused by a defective dehumidifier 

SECTION I - OVERVIEW 3 
 

 

 

 

Internal Revenue Service, Criminal Investigation (IRS-CI), Department of the Treasury 

Multi-agency multi-year investigation nabs gold dealers for money laundering and firearm crimes 

Information included in the following forfeiture article is attributed to: DOJ news release dated December 

3, 2021, entitled “Gold Dealers Sentenced for Financial Crimes and Gun Crimes,” and from information 

provided by the IRS-CI liaison to TEOAF. 

Global Gold Exchange (GGEX) purchased and sold gold and other precious metals out of their San Diego 

office. GGEX and their managers also operated as a one stop shop for money laundering. Richard Owen, 

James Warren, and Jeffry Morrow laundered money from a number of illicit sources, including a Mexican 

cartel, and fraudulently documented the activity as gold transactions. IRS-CI working with the Border 

Crimes Task Force, FBI, and the United States Postal Inspection Service, unraveled millions of dollars of 

suspicious transactions at GGEX during a multi-year investigation. The defendants acted as an informal 

money transfer system, laundering money from a variety of sources with no regard to the legality of the 

funds and facilitated the transfer of money domestically and internationally. They also falsified invoices to 

mask the source of the funds from law enforcement and tax authorities. In one example, GGEX conducted 

a large cash transaction with a local cartel out of Mexico and, after taking their 10% fee, falsified the invoice 

to make the transaction look like a sale/purchase of precious metals. GGEX advised their clients to mail 

parcels filled with heavy substances to mimic the weight of gold to coincide with the false transaction 

records. 

Following the guilty pleas, Owen received a 24-month sentence for money laundering and as a felon-inpossession of a firearm. Warren and Morrow received custodial sentences of 6 and 8 months, respectively, 

for operating an unlicensed money transmitting business. The defendants agreed to forfeit approximately 

$2 million in assets involved in the crimes and to provide restitution of $3,682,063. The results represent 

the ongoing efforts by both IRS-CI and Border Crimes Task Force, a partnership targeting unlawful 

transactions through the financial system. The task force brings together the combined expertise of federal, 

state, and local law enforcement. “Today’s sentences demonstrate IRS Criminal Investigation’s 

commitment to disrupting professional enablers, who facilitate the commission and concealment of 

financial crimes by veiling them behind legitimate business services,” said Special Agent in Charge Ryan 

L. Korner of the Los Angeles Field Office. 

United States Secret Service (USSS), Department of Homeland Security Small office makes big 

impact in combatting Transnational Organized Crime 

Information was provided by the USSS liaison to TEOAF. 

The Tyler, Texas, Resident Office of the US Secret Service is a small office with just five agents, but it has 

made a significant impact against international and domestic money laundering, specifically in the use of 

cryptocurrency to launder proceeds of criminal activity. In 2019, this office started an operation that 

targeted subjects using US financial payment systems and cryptocurrencies to launder proceeds of a variety 

of criminal activities, including Business Email Compromise scams, online romance scams, advanced fee 

fraud and CARES Act fraud. The operation focused on domestic launderers and transnational organized 

crime groups. In addition, the information gleaned from the cases during this operation has given USSS 

investigators significant insight into the use of cryptocurrencies to launder money obtained from these 

crimes that normally fall within the Secret Service’s jurisdiction. 

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Tyler agents have partnered with multiple USSS field offices, USSS Criminal Investigative Division, the 

US Postal Inspection Service, and the State Department - Diplomatic Security Service, to further this 

operation. To date, the operation has seized over $3.6 million, issued 264 subpoenas, served 65 warrants, 

and conducted 223 interviews. More than $255 million in fraud losses have been prevented. 14 suspects 

have been indicted/arrested and some are currently awaiting sentencing. More than 150 victims have been 

identified in the cases currently. 

Figure 1: Photo of 365 silver coins 

Figure 2: Photo of $690k in victim’s funds checks 

SECTION I - OVERVIEW 5 
 

 

 

 

 

 

Figure 3: Photo of 2019 Bentley GT Coupe 

South Carolina lawyer charged in major SBA fraud 

Information was provided by the USSS liaison to TEOAF. 

In response the economic downturn from the Coronavirus, Congress passed the Coronavirus Aid, Relief, 

and Economic Security (“CARES”) Act in March of 2020 to provide aid to Americans suffering from the 

economic impact of the pandemic. The CARES Act authorized $350 billion in potentially forgivable loans 

to small businesses for job retention and certain other expenses. The loans were made through the Paycheck 

Protection Program (PPP) and were backed by the Small Business Administration (SBA). By April 2020, 

Congress authorized an additional $300 billion for businesses that were affected by COVID-19. Secret 

Service has been investigating individuals that took advantage of the program for personal benefit. 

The USSS Columbia, SC field office began an investigation based on information received from Allsouth 

Federal Credit Union, which began receiving COVID related loan deposits for “Little Mountain Farms” 

into an account that did not reflect that business name. The investigation revealed that a SC attorney was 

attempting to receive those funds. The SBA provided the USSS with the loan applications and determined 

that the attorney had applied for and received multiple loans for various businesses, including a law practice, 

a church, and an unnamed property management company. The attorney also applied for additional loans 

under his wife’s and adult daughter’s names. In total, between 2020-2021, the attorney received $1,483,550 

in SBA funded loans. Most of the fraudulent loan applications that were submitted were for the various 

fictitious businesses. 

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Under questioning by USSS agents, the attorney admitted that he knew he was using false information to 

create sham businesses to apply for SBA loans and overinflating his two legitimate businesses’ staff totals 

and revenue to receive larger loans. After accepting the funds, the attorney then started to transfer the 

money, in small dollar increments, from the fictious business accounts to his legitimate law firm’s account. 

The attorney surrendered a cashier check of $1,283,535.76 and pled guilty to 18 USC 1343, wire fraud. He 

is currently awaiting sentencing and is facing up to 30 months in federal prison. The $1.2 million was seized 

03/07/2022 and forfeited on 8/15/2022. Funds are expected to be returned to the Small Business 

Administration. 

Secret Service recovered $286M in Fraudulent Economic Injury Disaster loans 

Information included in the following forfeiture article is attributed to: USSS news release dated August 

26, 2022, entitled “U.S. Secret Service Returns $286M in Fraudulently Obtained Funds to the Small 

Business Administration,” and from information provided by the USSS liaison to TEOAF. 

The COVID-19 Economic Injury Disaster Loan (EIDL) program was established to provide small 

businesses with low interest loans to recover from the economic impacts of the pandemic. EIDL loans were 

used for working capital and normal operating expenses. Like other COVID related aid, EIDL loans were 

targeted by individuals and criminal organizations trying to exploit the EIDL program and obtain loans 

using fraudulent information. To combat the threat of thieves, the Financial Crimes Enforcement Network 

(FINCEN), a Treasury Department Bureau, issued advisories and alerts to financial institutions on fraud 

indicators. Additionally, in April 2020, USSS launched a nationwide investigation into pandemic-related 

fraud that included the mobilization of resources from numerous USSS field offices, and over 40 cybercrime 

tasks forces. 

Using the alerts from FINCEN, Green Dot Bank identified 15,325 potential fraudulent deposits which 

started an internal investigation. Green Dot then placed a voluntary hold on the accounts and contacted 

USSS for assistance. USSS launched a joint investigation with the SBA, Office of Inspector General, and 

confirmed that these deposits were fraudulent. USSS discovered that the deposits were EIDL loans based 

on fraudulent applications using synthetic identities, stolen Personal Identifiable Information (PII), and 

willing and unwilling money mules. During the investigation, USSS recovered $286 million in stolen EIDL 

loans and is continuing to investigate and reveal the owners of the accounts. “The Secret Service is dedicated 

to safeguarding the integrity of the nation’s financial systems against fraud and holding those responsible 

to account for their criminal activity,” said USSS Assistant Director of the Office of Investigations David 

Smith. All funds were returned to the Small Business Administration. 

Customs and Border Patrol (CBP), Department of Homeland Security 

Searches during the summer at the southwest border uncover large methamphetamine stashes 

Information was provided by the CBP liaison to TEOAF. 

In July 2022, Border Patrol Agents from the San Diego California Sector Predictive Intelligence Targeting 

Team received information on a narcotic load that had recently entered the United States through Otay 

Mesa, a small community in San Diego. After locating and following the vehicle, agents observed a 

swapping of drivers. CBP stopped and search the vehicle and recovered 148 packages of methamphetamine 

weighing 2,270 kilograms with an estimated street value of over $13 million. 

SECTION I - OVERVIEW 7 
Figure 1: Photo of 148 packages for methamphetamines found in the vehicle 

Several days after the find in Otay Mesa, Border Patrol Agents working operations in Nogales, AZ observed 

a vehicle being loaded up with backpacks. The vehicle departed the area at a high-speed rate with agents 

following from a distance. Agents discovered the vehicle flipped on its side and conducted a search. Within 

the vehicle, agents found 10 backpacks containing 90.72 kilograms of methamphetamines hidden in plastic 

food containers that had an estimated street value of $400,000. 

8 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

Figure 2: Photo of a single food container containing methamphetamines 

Figure 3: Photo of all the containers containing methamphetamines weighing 90.72 kilograms 

SECTION I - OVERVIEW 9 
 

 

United States Coast Guard (USCG), Department of Homeland Security Coast Guard offloads a 

billion dollars of seized drugs after a successful deployment 

Information included in the following forfeiture article is attributed to: Goodman, Joshua. “Coast Guard 

offloads 1 billion worth of cocaine, marijuana,” Associated Press, February 17, 2022. 

https://www.navytimes.com/news/your-navy/2022/02/17/coast-guard-offloads-1-billion-worth-ofcocaine-marijuana/, and information provided by the Coast Guard Liaison to TEOAF. 

After a months-long deployment at sea, the Coast Guard Cutter James off loaded more than 30 metric tons 

of cocaine and marijuana worth one $1 billion at Port Everglades in Fort Lauderdale, Florida. Cutter James 

spent its deployment off the coast of South America. The record haul was the culmination of several drug 

interdictions at sea of boats carrying cocaine and marijuana destined to the US from Colombia, Peru, and 

Bolivia. While at sea, Cutter James used an assortment of tools that included drones and special cameras 

that can detect small vessels carrying cocaine. These US Coast Guard interdictions help decrease regional 

destabilization from transnational criminal organizations and reduce the amount of illegal drugs entering 

the United States. 

Figure 1: Photo of federal officials and journalists standing along with members of the Coast Guard and 

other law enforcement agencies, as they view more than one billion dollars’ worth of seized cocaine and 

marijuana aboard Coast Guard Cutter James. 

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Program and Fund Highlights 

The Treasury Forfeiture Fund is a “special receipt account.” Such accounts represent federal fund 

collections earmarked by law for a specific purpose. The enabling legislation for the Treasury Forfeiture 

Fund (31 U.S.C. § 9705, Public Law 114-22) defines those purposes for which Treasury forfeiture revenue 

may be used. Once property or cash is seized, there is a forfeiture process. Upon forfeiture, seized currency, 

initially deposited into a suspense account, or holding account, is transferred to the Fund as forfeited 

revenue. Once forfeited, physical properties are sold, and the proceeds are deposited into the Fund as 

forfeited revenue. It is this forfeiture revenue that comprises the budget authority for meeting expenses of 

running Treasury’s forfeiture program. 

Expenses of the Fund are set in a relative priority so that unavoidable or “mandatory” costs are met first as 

a matter of policy. Expenses may not exceed revenue in the Fund. The Fund has several different spending 

authorities. Each of them is described below. 

Mandatory Authority 

The mandatory authority items are generally used to meet “business expenses” of the Fund, including 

expenses of storing and maintaining seized and forfeited assets, valid liens and mortgages, investigative 

expenses incurred in pursuing a seizure, information and inventory systems, and certain costs of local police 

agencies incurred in joint law enforcement operations. Following forfeiture, equitable shares are paid to 

state and local law enforcement agencies that contributed to the seizure activity at a level proportionate to 

their involvement. 

It is a strategic goal of the Fund to emphasize and monitor high impact forfeitures. To make significant 

forfeitures requires longer, more in-depth investigations. To this end, Fund management emphasizes the 

use of mandatory funding authorities that fuel large case initiatives. These authorities include the Purchase 

of Evidence and Information, expenses associated with Joint Operations, Investigative Expenses Leading 

to Seizure, and Asset Identification and Removal Groups. In recent years, funding provided to computer 

forensic investigative tools has yielded high impact results. 

Secretary’s Enforcement Fund 

The Secretary’s Enforcement Fund (SEF) is derived from equitable shares received from the Justice 

Department’s Forfeiture Fund for work done by law enforcement bureaus participating in the Treasury 

Forfeiture Fund leading to Justice forfeitures. SEF revenue is available for federal law enforcement 

purposes of any Treasury law enforcement organization or law enforcement bureau that participates in the 

Treasury Forfeiture Fund. In FY 2022, the Fund expensed just under a net amount of $9 million in SEF 

authority as compared to just under $13 million in FY 2021, a decrease of $4 million. 

Strategic Support 

Strategic Support represents the remaining unobligated balance after an amount is reserved for Fund 

operations in the next fiscal year. Strategic Support can be used for any federal law enforcement purpose. 

In FY 2022, the Fund expensed $96.1 million in Strategic Support authority as compared to $360.5 million 

in FY 2021. It should be noted that $87.1m and $455.7million in Strategic Support funding were returned 

to the Fund in FY 2022 and FY 2021, respectively, from CBP. 

SECTION I - OVERVIEW 11 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Program Performance 

Strategic View 

Fund management continues to focus on strategic cases and investigations that result in high-impact 

forfeitures. We believe this approach affects the greatest damage to criminal organizations while 

accomplishing the ultimate objective – to disrupt and dismantle criminal activity. Generally, significant 

forfeitures require longer, more in-depth investigations. To this end, Fund management emphasizes the use 

of mandatory funding authorities that fuel large case initiatives including Purchase of Evidence and 

Information, expenses associated with Joint Operations, Investigative Expenses Leading to Seizure, Asset 

Identification and Removal teams and state-of-the-art Computer Forensics capability. 

FY 2022 was a successful revenue year by our member bureaus and was another successful year in equitable 

share deposits received from the Department of Justice (DOJ) forfeiture fund for forfeitures in which one 

or more of our member bureaus played a role. Equitable shares received totaled $8.9 million in FY 2022 

as compared to $15.9 million in FY 2021. In addition, the Fund continues to support record levels of sharing 

of federal forfeitures with the state and local and foreign governments that contributed to the successful 

seizure and forfeiture activity of the Fund. The Fund expensed $86.1 million for state and local equitable 

sharing expenses in FY 2022, and the Fund shared $964 thousand with foreign governments in FY 2022. 

By comparison, the Fund expensed $104.9 million for state and local equitable sharing expenses in FY 

2021; the Fund did not share with foreign governments in FY 2021. These are important resources afforded 

by policy of the Treasury Forfeiture Fund to protect and preserve the valuable working relationships 

between our federal law enforcement bureaus and the critically important state, local and foreign law 

enforcement agencies that work with them in an investigative capacity day-in and day-out. 

Strategic Mission and Goal 

The mission of the Treasury Forfeiture Fund is to affirmatively influence the consistent and strategic use of 

asset forfeiture by law enforcement bureaus to disrupt and dismantle criminal enterprises. The goal of the 

Treasury Forfeiture Fund is to support the Department of the Treasury’s national asset forfeiture program 

in a manner that results in federal law enforcement’s continued and effective use of asset forfeiture as a 

high-impact law enforcement sanction to disrupt and dismantle criminal activity. To achieve our mission 

and goal, the program must be administered in a fiscally responsible manner that seeks to minimize the 

administrative costs incurred, thereby maximizing the benefits for law enforcement and the society it 

protects. 

Multi-Departmental Fund 

The Treasury Forfeiture Fund continued in its capacity as a multi-Departmental Fund in FY 2022, 

representing the interests of law enforcement components of the Departments of the Treasury and 

Homeland Security. FY 2022 posed continued management challenges including oversight of significant 

general property contract expenses associated with an increasingly complex forfeiture program. In 

addition, commensurate with the successful revenue year, there were significant expenses incurred by the 

bureaus to run their programs. During this period of growth and change, the Fund’s family of law 

enforcement bureaus continued their hard work of federal law enforcement and the application of asset 

forfeiture as a sanction to bring criminals to justice. 

12 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

 

 

FY 2022 was another robust year with regular revenue of $1.150 billion from all sources, as compared with 

FY 2021 revenue of $807.8 million. As we enter FY 2023, the Fund remains focused on support for strategic 

investigative initiatives that will have the greatest impact on national and international criminal enterprise 

including valuable training and investigative expense funding which emphasizes high-impact cases. 

Performance Measure 

In FY 2022, the Fund measured performance using the following performance measure: Percent of forfeited 

cash proceeds resulting from high-impact cases. This measures the percentage of forfeited cash proceeds 

resulting from high-impact cases (those with currency seizures more than $100,000). Focusing on strategic 

cases and investigations which result in high-impact seizures will affect the greatest damage to criminal 

organizations while accomplishing the ultimate objective – to disrupt and dismantle criminal activity. 

Results 

The Fund performance measure and result for FY 2022 is as follows: 

Performance Measure 

FY 2021 

Actual 

FY 2022 

Target 

FY 2022 

Actual 

Percent of forfeited cash proceeds resulting from 

high-impact cases 

90% 80% 91% 

A target of 75 percent high-impact cases was set for FY 2010 and prior years since inception of the 

performance measure in FY 2002. However, for FY 2011, the target was increased to 80 percent, reflecting 

member bureaus’ prior success in meeting the previous target. This is a fixed target for the Fund designed 

to afford our law enforcement bureaus the opportunity to undertake smaller seizure activity that is important 

to the overall federal law enforcement mission. The final percentage for FY 2022 was 91 percent, exceeding 

the new target set in 2011. This compares with our FY 2020 and FY 2021 performance of 83 percent and 

90 percent, respectively. 

The performance of our member bureaus is excellent and reflects Fund management’s longstanding 

emphasis on high-impact forfeiture strategies as well as the use of Fund authorities to assist member bureaus 

with larger cases that may take longer or require additional resources not otherwise available. This measure 

was put into effect beginning with FY 2002, and in all but 3 years, member bureaus met the target for highimpact forfeitures. 

This measure is calculated by dividing the total amount of forfeited cash proceeds from cases greater than 

$100,000 by the total amount of forfeited cash proceeds for all cases. 

SECTION I - OVERVIEW 13 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Statement Highlights 

The following provides a brief explanation for each major section of the audited financial statements 

accompanying this report for the fiscal year ended September 30, 2022. 

These statements have been prepared to disclose the financial position of the Fund, its net costs, changes in 

net position, and budgetary resources, pursuant to the requirements of the Chief Financial Officers Act of 

1990 and the Government Management Reform Act of 1994 (GMRA). While the financial statements have 

been prepared from the books and records of the Fund in accordance with the formats prescribed by the 

Office of Management and Budget, the statements are different from the financial reports used to monitor 

and control budgetary resources that are prepared from the same books and records and are subsequently 

presented in federal budget documents. Further, the notes to the financial statements and the independent 

auditor’s opinion and reports on internal control over financial reporting, and compliance and other matters 

are also integral components to understanding fully the financial highlights of Fund operations described in 

this chapter. 

Statements: Changes in Net Position 

Follows are brief highlights from the Statements of Changes in Net Position for FY 2022 and 2021. 

Net Position – End of Year. For FY 2022, the Net Position for the Fund at the end of the year, an indicator 

of the future capability to support ongoing operations of the Fund, totaled $1.8 billion versus $1.4 billion 

at the end of FY 2021. Both years closed with a strong and viable net position with which to commence 

the next fiscal year’s operations. 

Total Gross Non-Exchange Revenues. This line item on the Statements of Changes in Net Position is the 

best indicator of regular “business-type” income of the account on an annual basis. For FY 2022, the Fund 

closed with $1.150 billion in Gross Non-Exchange Revenues and a total of $807.8 million for FY 2021, 

reflecting two, highly successful revenue years for the Treasury Forfeiture Fund. 

Proceeds from Participating with other Federal Agencies. This line item on the Statements of Changes 

in Net Position indicates revenue earned from the participation of Treasury Forfeiture Fund law 

enforcement bureaus in the seizures leading to forfeiture of bureaus that participate in the Department of 

Justice Assets Forfeiture Fund or with the forfeiture fund of the U.S. Postal Service (Postal Service). 

As of the close of FY 2022, Treasury Forfeiture Fund bureaus earned a total of $8.9 million in revenue from 

participation in the seizures leading to forfeiture of the Justice and Postal Service forfeiture funds as 

compared to a total of $15.9 million during FY 2021. Fund management continues to work with the 

Department of Justice to identify delays and/or explain downward adjustments to percentages associated 

with equitable sharing payments owed to the Treasury Forfeiture Fund. This revenue affords Treasury 

management significant funding flexibilities for our participating agencies as the authority is broad and not 

confined to funding program costs; it can be used for any law enforcement purpose of our participating 

bureaus. The allocation of this type of revenue for FY 2021 and FY 2022 was restricted by the need to 

meet enacted budget rescissions, sequestrations, and permanent reductions. 

Net Cost of Operations. For FY 2022, the Net Cost of Operations totaled $295.8 million, up from $279.9 

million in FY 2021. 

14 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Interest Income. The Fund is authorized to invest cash balances in Treasury securities. As of 

September 30, 2022, investments totaled $4.5 billion as compared with $4.7 billion invested as of 

September 30, 2021. During FY 2022, investment income totaled $26.4 million, as compared to $1.5 

million in FY 2021. 

Equitable Sharing with Federal, State and Local Governments, and Foreign Countries. Each year, 

the Fund pays tens of millions of dollars to state and local law enforcement agencies, and foreign 

governments, for their participation in seizures that lead to forfeitures of the Treasury Forfeiture Fund. State 

and local law enforcement agencies can use these resources to augment their law enforcement budgets to 

fight crime in their jurisdictions. Without these funds, budgets of the local municipalities would be taxed 

to provide these important resources, or the need would go unmet. During FY 2022, the Fund shared a total 

of $93.8 million with other federal, state, and local law enforcement agencies, and $964 thousand with 

foreign countries. This compares with $157.1 million shared with other federal, state, and local law 

enforcement agencies during FY 2021 and $0 with foreign countries. 

Victim Restitution. During FY 2022, the Fund paid $136.8 million in restitution to victims as compared 

to $180.4 million in FY 2021. This line item can fluctuate materially from one fiscal year to the next. 

Summary of Statements of Changes in Net Position. The Fund closed with a strong net position in FY 

2022. Management will continue to emphasize high-impact cases by participating law enforcement bureaus. 

The FY 2022 performance with forfeiture revenue earnings of $1.150 billion from all sources, while 

exceeding the new higher performance measure target rate of high-impact cases, is truly a credit to the 

dedicated law enforcement personnel of our participating law enforcement bureaus. 

Statements: Net Cost 

Costs of the Forfeiture Program – Intra-governmental. After revenue is applied toward policy mandates 

such as equitable sharing, shown in the Statements of Changes in Net Position as negative revenue or 

applied non-exchange revenue, the remaining financing supports the law enforcement activities of the Fund 

and pays for the storage of seized and forfeited property and sales associated with the disposition of forfeited 

property. 

On the Statements of Net Cost, the Net Cost of Operations totaled $295.8 million in FY 2022, up from 

$279.9 million in FY 2021. 

Intra-governmental. This cost category totaled $211.4 million in FY 2022, up from $202.2 million in FY 

2021. The amounts represent costs incurred by participating bureaus in running their respective forfeiture 

programs. 

National Seized Property Contracts and Other. One of the largest program costs of the Fund is the 

storage, maintenance, and disposal of real and personal property. During FY 2022, general property was 

maintained by Amentum Services Inc. Real property was maintained by the CWS Asset Management & 

Sales Group, both contracts of the Department of the Treasury. In FY 2022, expenses of these contracts, 

which comprised over 64% of the total expenses for this line, including other contracts, totaled $67.8 

million, up from $64.1 million expensed in FY 2021. 

SECTION I - OVERVIEW 15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statements: Budgetary Resources 

As of the end of FY 2022, the Fund has estimated future expenditures and commitments of $805.4 million 

(reductions) which may need to be paid in future years. These reductions relate to remissions, victim 

restitution and equitable sharing. These future obligations will be funded from the unobligated balance of 

$876.3 million as reported on the SF-133 ”Report on Budget Execution” for FY 2022. The unobligated 

balance less reductions would result in $70.9 million remaining at the end of FY 2022. 

Balance Sheet 

Assets, Liabilities and Net Position 

Total assets of the Fund in FY 2022 were $5.5 billion, approximating the same $5.5 billion in FY 2021. If 

seized currency and other monetary assets, which are assets in the custody of the government but not yet 

owned by the government, are backed out of both figures, the adjusted total assets of the Fund increased to 

$2.9 billion in FY 2022, up from $2.1 billion in FY 2021. During FY 2022, total liabilities of the Fund 

were $3.6 billion, as compared to the $4 billion in FY 2021. If seized currency and other monetary assets, 

which are also shown as a liability because they are not yet owned by the government, are backed out of 

both figures, the adjusted total liabilities of the Fund increased to $1.1 billion in FY 2022, compared to 

$672.3 million in FY 2021. 

With increasing asset amounts and increasing liabilities, the Cumulative Results of Operations, i.e., retained 

earnings, increased at the end of FY 2022 to a total of $1.8 billion, up from $1.4 billion at the end of FY 

2021. 

Financial and Program Performance - What is needed and planned. Office of Management and Budget 

(OMB) Circular A-136, Financial Reporting Requirements, requires that agencies include an explanation 

of what needs to be done and what is being planned to improve financial or program performance. In this 

regard, Fund management continues to work closely with member bureaus, through the financial planning 

process, to review revenue and expense projections during the operating year. 

Auditor’s Findings 

FY 2022 Audit. The Fund’s independent auditors have given the FY 2022 financial statements an 

Unmodified Opinion with no material weaknesses or significant deficiencies in internal control over 

financial reporting identified. The auditor’s report on compliance and other matters disclosed no instances 

of noncompliance or other matters that are required to be reported under Government Auditing Standards 

or OMB Bulletin No. 22-01, Audit Requirements for Federal Financial Statements. 

Summary of Financial Statement Highlights 

Net Position. To summarize, Fund management concluded a highly productive FY 2022 “in the black,” 

with the necessary resources to commence the business of the asset forfeiture program for FY 2023. Even 

though there was a rescission of $175 million and a sequestration of $70.6 million, Fund management was 

able to declare Strategic Support funding from FY 2022 operations and will work to recognize the work of 

our participating agencies in the allocation of these resources. 

16 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A Look Forward 

Fund management will continue to work with our large and diverse array of federal law enforcement 

bureaus as they undertake increasingly sophisticated methods and global efforts to secure the financial and 

commercial markets of the nation and the world given the interdependence of financial systems. Our 

bureaus support immigration enforcement that is designed to identify illegal smuggling to deter its impact 

on the nation’s financial infrastructure and to ensure that human smugglers do not harm unsuspecting 

victims keen on seeking a new if illegal start in the United States. Investigative initiatives intended to 

interrupt the financial support for terrorism remains a critical part of the work of federal law enforcement. 

Emphasis will continue to be placed on ever-evolving state-of-the-art investigative techniques, high-impact 

major case initiatives, and training to support these areas of emphasis. This has and will continue to be the 

key to the growing success and law enforcement reach of the Treasury Forfeiture Fund. 

Payment Integrity 

Our FY 2022 Payment Integrity reporting includes information required by the Payment Integrity 

Information Act of 2019 (PIIA), Executive Order 13520, Reducing Improper Payments and Eliminating 

Waste in the Federal Government; Appendix C to OMB Circular A-123, Requirements for Payment 

Integrity Improvement, and OMB Circular A-136. PIIA rescinded the Improper Payments Information Act 

of 2002 (IPIA), the Improper Payments Elimination and Recovery Act of 2010 (IPERA), and Improper 

Payments Elimination and Recovery Improvement Act of 2012 (IPERIA), however many of the 

requirements for reporting Payment Integrity information remain in place. 

Currently the Fund conducts an internal review and analysis for its major contracts. The contract activity is 

high dollar value for each payment with limited volume. This activity has low risk but based on the high 

dollar value requiring minimal resources, the Fund will continue to conduct these internal contract audits. 

Based on this analysis, the Fund has determined that performing recapture audit is not cost effective and 

will not be implementing them at this time. PIIA requires agencies to incorporate the Do Not Pay Initiative 

(DNP) to further reduce improper payments. The Fund uses the Death Master File and the System of Award 

Management as part of a continuous monitoring process and post payment review. During FY 2022 and 

2021, the Fund reviewed 13,865 and 11,836 payments totaling $836 million and $631 million, and reports 

less than 0.07% and 0.19% respectively, of IPERA or DNP reportable improper payments. 

Limitations of the Financial Statements. As required by OMB Circular A-136, Fund management makes 

the following statements regarding the limitations of the financial statements: 

•	 The financial statements have been prepared to report the financial position and results of operations of 

the entity, pursuant to the requirements of 31 USC § 3515(b). 

•	 While the statements have been prepared from the books and records of the entity in accordance with 

the formats prescribed by OMB, the statements are in addition to the financial reports used to monitor 

and control budgetary resources which are prepared from the same books and records. 

SECTION I - OVERVIEW 17 
•	 The statements should be read with the realization that they are for a component of the U.S. 

government, a sovereign entity. One implication of this is that liabilities cannot be liquidated without 

legislation that provides resources to do so. 

18 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
SECTION II
 

INDEPENDENT AUDITOR’S REPORT
 
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 Certified Public Accountants 

& Consultants Member of the American Institute of Certified Public Accountants 

Independent Auditor's Report 

Deputy Inspector General 

U.S. Department of the Treasury 

Director 

Treasury Executive Office for Asset Forfeiture 

Report on the Financial Statements 

Opinion 

In accordance with Government Auditing Standards, we have audited the accompanying financial 

statements of the Department of the Treasury Forfeiture Fund (the Fund), which comprise the balance 

sheets as of September 30, 2022 and 2021, and the related statements of net cost, changes in net 

position, and budgetary resources for the years then ended, and the related notes to the financial 

statements. 

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

financial position of the Department of the Treasury Forfeiture Fund as of September 30, 2022 and 

2021, and its net costs, changes in net position, and budgetary resources for the years then ended in 

accordance with U.S. generally accepted accounting principles. 

Basis for Opinion 

We conducted our audits in accordance with auditing standards generally accepted in the United States 

of America (GAAS); the standards applicable to financial audits contained in Government Auditing 

Standards issued by the Comptroller General of the United States; and applicable provisions of Office 

of Management and Budget (OMB) Bulletin No. 22-01, Audit Requirements for Federal Financial 

Statements. 

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for 

the Audit of the Financial Statements section of our report. We are required to be independent of the 

Department of the Treasury Forfeiture Fund and to meet our other ethical responsibilities in accordance 

with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have 

obtained is sufficient and appropriate to provide a basis for our audit opinion. 

Responsibility of Management for the Financial Statements 

Management is responsible for the preparation and fair presentation of the financial statements in 

accordance with U.S. generally accepted accounting principles, and for the design, implementation, 

and maintenance of internal control relevant to the preparation and fair presentation of financial 

statements that are free from material misstatement, whether due to fraud or error. 

1920 L. Street, NW || Suite 425 || Washington, DC 20036 || (202) 857-1777 || www.gkacpa.com 
 

 

 

Auditor’s Responsibilities for the Audit of the Financial Statements 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 

includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance 

and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing 

standards will always detect a material misstatement or a material weakness when it exists. The risk of 

not detecting a material misstatement resulting from fraud is higher than for one resulting from error, 

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of 

internal control. Misstatements including omissions are considered material if there is a substantial 

likelihood that, individually or in the aggregate, they would influence the judgment made by a 

reasonable user based on the financial statements. 

In performing an audit in accordance with GAAS and Government Auditing Standards, we: 

•	 Exercise professional judgment and maintain professional skepticism throughout the audit. 

•	 Identify and assess the risks of material misstatement of the financial statements, whether due 

to fraud or error, and design and perform audit procedures responsive to those risks. Such 

procedures include examining, on a test basis, evidence regarding the amounts and disclosures 

in the financial statements in order to obtain audit evidence that is sufficient and appropriate to 

provide a basis for our opinion. 

•	 Obtain an understanding of internal control relevant to our audit of the financial statements in 

order to design audit procedures that are appropriate in the circumstances, but not for the 

purpose of expressing an opinion on the effectiveness of the Fund's internal control over 

financial reporting. Accordingly, no such opinion is expressed. 

•	 Evaluate the appropriateness of accounting policies used and the reasonableness of significant 

accounting estimates made by management, as well as evaluate the overall presentation of the 

financial statements. 

We are required to communicate with those charged with governance regarding, among other matters, 

the planned scope and timing of the audit, significant audit findings, and certain internal control related 

matters that we identified during the financial statement audit. 

20 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

Required Supplementary Information 

U.S. generally accepted accounting principles require that the information in Section I: Overview, and 

Section IV: Required Supplemental Information be presented to supplement the basic financial 

statements referred to in the first paragraph of this report. Such information is the responsibility of 

management and, although not a part of the basic financial statements, is required by the Federal 

Accounting Standards Advisory Board who considers it to be an essential part of financial reporting 

for placing the basic financial statements in an appropriate operational, economic, or historical context. 

We have applied certain limited procedures to the required supplementary information in accordance 

with GAAS, which consisted of inquiries of management about the methods of preparing the 

information and comparing the information for consistency with management’s responses to our 

inquiries, the basic financial statements, and other knowledge we obtained during our audits of the 

basic financial statements. We do not express an opinion or provide any assurance on the information 

because the limited procedures do not provide us with sufficient evidence to express an opinion or 

provide any assurance. 

Other Information 

Management is responsible for the other information included in the accountability report. The other 

information comprises the information in the Message from the Director, and Section V: Other 

Accompanying Information but does not include the basic financial statements and our auditor’s report 

thereon. Our opinion on the basic financial statements does not cover the other information, and we do 

not express an opinion or any form of assurance thereon. 

In connection with our audit of the basic financial statements, our responsibility is to read the other 

information and consider whether a material inconsistency exists between the other information and 

the basic financial statements, or the other information otherwise appears to be materially misstated. 

If, based on the work performed, we conclude that an uncorrected material misstatement of the other 

information exists, we are required to describe it in our report. 

Other Reporting Required by Government Auditing Standards 

Report on Internal Control over Financial Reporting 

In planning and performing our audit of the financial statements as of and for the year ended 

September 30, 2022, we considered the Fund’s internal control over financial reporting (internal 

control) as a basis for designing the audit procedures that are appropriate in the circumstances for the 

purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an 

opinion on the effectiveness of the Fund’s internal control. Accordingly, we do not express an opinion 

on the effectiveness of the Fund’s internal control. We did not test all internal controls relevant to 

operating objectives as broadly defined by the Federal Managers’ Financial Integrity Act of 1982. 

SECTION II –INDEPENDENT AUDITOR’S REPORT 21 
 

 

 

 

 

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, or 

detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a 

combination of deficiencies, in internal control, such that there is a reasonable possibility that a material 

misstatement of the entity’s financial statements will not be prevented or detected and corrected on a 

timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal 

control that is less severe than a material weakness, yet important enough to merit attention by those 

charged with governance. 

Our consideration of internal control was for the limited purpose described in the first paragraph of this 

section and was not designed to identify all deficiencies in internal control that might be material 

weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify 

any deficiencies in internal control that we consider to be material weaknesses. However, material 

weaknesses or significant deficiencies may exist that were not identified. 

Report on Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the Fund’s financial statements as of and for 

the year ended September 30, 2022, are free from material misstatement, we performed tests of the 

Fund’s compliance with certain provisions of laws, regulations, and contracts, noncompliance with 

which could have a direct and material effect on the determination of financial statement amounts. 

However, providing an opinion on compliance with those provisions was not an objective of our audit, 

and accordingly, we do not express such an opinion. 

The results of our tests disclosed no instances of noncompliance or other matters that are required to 

be reported under Government Auditing Standards or OMB Bulletin No. 22-01. 

Purpose of the Other Reporting Required by Government Auditing Standards 

The purpose of the communication described in the Other Reporting Required by Government Auditing 

Standards section of this report is solely to describe the scope of our testing of internal control and 

compliance and the result of that testing, and not to provide an opinion on the effectiveness of the 

Fund’s internal control or on compliance. This section is an integral part of an audit performed in 

accordance with Government Auditing Standards in considering the Fund’s internal control and 

compliance. Accordingly, this communication is not suitable for any other purpose. 

Washington, DC
 

October 31, 2022
 

22 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
SECTION III
 

FINANCIAL STATEMENTS AND NOTES
 
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Department of the Treasury Forfeiture Fund
 

BALANCE SHEETS
 

As of September 30, 2022, and 2021
 

(Dollars in thousands) 

2022 2021 

Assets: 

Intragovernmental: 

Fund balance with Treasury (Note 21) $ 44,718 $ -

Investments and related interest receivable (Note 3) 4,537,032 4,707,570 

Total Intragovernmental 4,581,750 4,707,570 

Other than intragovernmental/Public: 

Cash and other monetary assets (Note 5) 64,993 592,460 

Accounts Receivable 4,984 1,029 

69,977 593,489 

Forfeited property (Note 6) 

Held for sale, net of mortgages, liens and claims 837,710 156,684 

To be shared with federal, state or local, or foreign governments 697 438 

Total forfeited property, net of mortgages, liens and claims 838,407 157,122 

Total Assets $5,490,134 $5,458,181 

Liabilities: 

Intragovernmental: 

Accounts payable $ 193,303 $ 416,646 

Total Intragovernmental 193,303 416,646 

Other than intragovernmental/Public: 

Seized currency and other monetary instruments (Note 8) 2,541,477 3,371,198 

Distributions payable (Note 10) 

State and local agencies and foreign governments 66,703 91,793 

Accounts payable 5,634 6,742 

Deferred revenue from forfeited assets (Note 6) 838,407 157,122 

Total Liabilities 3,645,524 4,043,501 

Commitments and contingencies (Note 15) - -

Net Position: 

Cumulative results of operations (Note 11) 1,844,610 1,414,680 

Total Liabilities and Net Position $5,490,134 $5,458,181 

The accompanying notes are an integral part of these financial statements. 

SECTION III - FINANCIAL STATEMENTS AND NOTES 23 
 

 

 

 

 

 

 

 

 

 

 

Department of the Treasury Forfeiture Fund
 

STATEMENTS OF NET COST
 

For the years ended September 30, 2022 and 2021 

(Dollars in thousands) 

2022 2021
 

Program: 

ENFORCEMENT 

Intragovernmental: 

Seizure investigative costs and asset management $ 129,513 $ 121,390 

Other asset related contract services 9,279 22,125 

Data systems, training, and others 72,654 58,653 

Total Intragovernmental 211,446 202,168 

With the Public: 

National contract services seized property and other 67,835 64,132 

Joint operations 16,514 13,628 

Total with the Public 84,349 77,760 

Net Cost of Operations (Note 16) $ 295,795 $ 279,928 

The accompanying notes are an integral part of these financial statements. 

24 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Department of the Treasury Forfeiture Fund 

STATEMENTS OF CHANGES IN NET POSITION 

For the years ended September 30, 2022 and 2021 

(Dollars in thousands) 

2022 2021
 

Net Position – Beginning of Year $ 1,414,680 $ 1,216,879 

Financing Sources (Non-Exchange Revenues): 

Intragovernmental 

Investment interest income 26,405 1,520 

Public 

Forfeited currency and monetary instruments 929,773 607,733 

Sales of forfeited property net of mortgages and claims 167,782 162,690 

Proceeds from participating with other federal agencies 8,905 15,903 

Value of property transferred in equitable sharing (3,656) 2,294 

Payments in lieu of forfeiture, net of refunds (Note 19) 13,456 8,720 

Reimbursed costs 6,506 6,467 

Other 944 2,509 

Total Gross Non-Exchange Revenues 1,150,115 807,836 

Less: Equitable Sharing 

Intragovernmental 

Federal (7,608) (52,160) 

Public 

State and local agencies (86,142) (104,921) 

Foreign countries (964) -

Victim restitution (136,772) (180,387) 

(223,878) (285,308) 

Total Equitable Sharing (231,486) (337,468) 

Total Non-Exchange Revenues, Net 918,629 470,368 

Transfers –In (Out) 

Intragovernmental 

Strategic support (Note 13) (9,025) 95,181 

Secretary’s enforcement fund (Note 14) (8,878) (12,820) 

Transfer to the general fund (Note 9) (175,001) (75,000) 

Total Transfers-In (Out) (192,904) 7,361 

Total Financing Sources - Net 725,725 477,729 

Net Cost of Operations (295,795) (279,928) 

Net Results of Operations 429,930 197,801 

Net Position – End of Year $ 1,844,610 $ 1,414,680 

The accompanying notes are an integral part of these financial statements. 

SECTION III - FINANCIAL STATEMENTS AND NOTES 25 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Department of the Treasury Forfeiture Fund
 

STATEMENTS OF BUDGETARY RESOURCES
 

For the years ended September 30, 2022 and 2021 

(Dollars in thousands) 

2022 2021
 

Budgetary Resources: 

Unobligated balance from prior year budget authority, net $ 984,240 $ 1,180,712 

(Note 17) 

Budget authority 1,038,446 696,035 

Total Budgetary Resources $ 2,022,686 $ 1,876,747 

Status of Budgetary Resources: 

Obligations incurred $ 1,146,353 $ 999,476 

Unobligated balances – apportioned 

Unobligated balances – unportioned 

$ 693,673 

182,660 

$ 855,460 

21,811 

Unobligated balances – end of year (Note 17) $ 876,333 $ 877,271 

Total Budgetary Resources $ 2,022,686 $ 1,876,747 

Outlays, net 

Net Outlays $ 761,543 $ 177,106 

The accompanying notes are an integral part of these financial statements. 

26 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

 

 

Note 1: Reporting Entity 

The Department of the Treasury Forfeiture Fund (Treasury Forfeiture Fund or the Fund) was 

established by the Treasury Forfeiture Fund Act of 1992, Public Law 102-393 (the TFF Act), and is 

codified at 31 USC 9705. The Fund was created to consolidate all Treasury law enforcement bureaus 

under a single forfeiture fund program administered by the Department of the Treasury (Treasury). 

Treasury law enforcement bureaus fully participating in the Fund upon enactment of this legislation 

were the U.S. Customs Service (Customs); the Internal Revenue Service – Criminal Investigation (IRSCI); the United States Secret Service (Secret Service); the Bureau of Alcohol, Tobacco and Firearms 

(ATF); the Financial Crimes Enforcement Network (FinCEN); and the Federal Law Enforcement 

Training Center (FLETC). FinCEN and FLETC contribute no revenue to the Fund, however in FY 

2016, significant amounts of Strategic Support funds were allocated to FinCEN towards Bank Secrecy 

Act (BSA) Information Technology (IT) modernization, a tool used in the fight against money 

laundering and other criminal activity. The U.S. Coast Guard, formerly part of the Department of 

Transportation, now part of the Department of Homeland Security (DHS), also participates in the Fund. 

However, all Coast Guard seizures are treated as Customs seizures because the Coast Guard lacks 

forfeiture authority. 

With enactment of the Homeland Security Act of 2002 (Homeland Security Act), law enforcement 

bureaus currently participating in the Fund are: the Internal Revenue Service - Criminal Investigation 

(IRS-CI) of Treasury, Customs and Border Protection (CBP), Immigration and Customs Enforcement 

(ICE) and the U.S. Secret Service (USSS) of DHS. The U.S. Coast Guard of DHS joins these bureaus. 

The Fund continues in its capacity as a multi-departmental fund, representing the interests of law 

enforcement components of the Departments of Treasury and Homeland Security. 

The Fund is a special fund that is accounted for under Treasury symbol number 20X5697. From this 

no-year account, expenses may be incurred as authorized by Title 31 USC 9705, as amended. Expenses 

are limited only by the availability of resources in the Fund. The Fund is managed by Treasury's 

Executive Office for Asset Forfeiture (TEOAF). 

The mission of the Treasury Forfeiture Fund is to affirmatively influence the consistent and strategic 

use of asset forfeiture by law enforcement bureaus to disrupt and dismantle criminal enterprises. The 

goal of the Treasury Forfeiture Fund is to support the Treasury’s national asset forfeiture program in a 

manner that results in federal law enforcement’s continued and effective use of asset forfeiture as a 

high-impact law enforcement sanction to disrupt and dismantle criminal activity. Under a 

Memorandum of Understanding (MOU) with Treasury, CBP acts as the executive agent for certain 

operations of the Fund. Pursuant to that executive agent role, CBP’s National Finance Center (NFC) is 

responsible for accounting and financial reporting for the Fund, including timely and accurate reporting 

and compliance with Treasury, the Comptroller General and the Office of Management and Budget 

(OMB) regulations and reporting requirements. 

SECTION III - FINANCIAL STATEMENTS AND NOTES 27 
 

 

 

 

 

 

 

 

Note 2: Summary of Significant Accounting Policies 

Basis of Accounting and Presentation 

The Fund began preparing audited financial statements in Fiscal Year 1993 as required by the Fund’s 

enabling legislation, 31 USC 9705(f)(2)(H), and the Chief Financial Officers Act of 1990. Beginning 

with the Fiscal Year 1996 report, the Government Management Reform Act of 1994 (GMRA) requires 

executive agencies, including the Treasury, to produce audited consolidated accountability reports and 

related footnotes for all activities and funds. 

The financial statements have been prepared from the accounting records of the Fund in conformity 

with accounting principles generally accepted in the United States of America (GAAP) and specified 

by OMB in OMB Circular A-136, Financial Reporting Requirements (OMB Circular A-136). GAAP 

for federal entities is prescribed by the Federal Accounting Standards Advisory Board (FASAB), which 

is designated the official accounting standards setting body of the Federal Government by the American 

Institute of Certified Public Accountants. 

The preparation of financial statements in accordance with accounting principles generally accepted in 

the Unites States of America requires management to make estimates and assumptions that affect the 

reported amounts of assets, liabilities, disclosures of contingent assets and liabilities at the date of the 

financial statements, and the reported amounts of revenues and expenses during the reporting period. 

Actual results could differ from those estimates. 

Certain fiscal year 2021 balances may have been reclassified, retitled, or combined with other financial 

statement line items for consistency with the current year presentation. 

Accounting standards require all reporting entities to disclose that accounting standards allow certain 

presentations and disclosures to be modified, if needed, to prevent the disclosure of classified 

information. 

Allowable Fund Expenses 

Most of the revenue recorded by the Fund is utilized for operating expenses or distributed to state and 

local law enforcement agencies, other federal agencies, and foreign governments, in accordance with 

the various laws and policies governing the operations and activities of the Fund. Under the TFF Act, 

the Fund is authorized to pay certain expenses using discretionary or mandatory funding authorities of 

the Fund. 

Discretionary authorities include but may not be limited to: the payment of expenses for the purchase 

of awards for information or assistance leading to a civil or criminal forfeiture involving any law 

enforcement bureau participating in the Fund; purchase of evidence or information that meet the criteria 

set out in 31 USC 9705(a)(2)(B); payment for equipment for vessels, vehicles, or aircraft available for 

official use as described by 31 USC 9705(a)(2)(D) and (F); reimbursement of private persons for 

expenses incurred while cooperating with a Treasury law enforcement organization in investigations; 

publication of the availability of certain awards; and payment for training foreign law enforcement 

personnel with respect to seizure or forfeiture activities of the Fund. Discretionary expenses are subject 

to an annual, definite Congressional appropriation from revenue in the Fund. 

28 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

Expenses from the mandatory authorities of the Fund include but are not limited to: all proper expenses 

of the seizure, including investigative costs and purchases of evidence and information leading to 

seizure, holding costs, security costs, etc., awards of compensation to informers under section 619 of 

the Tariff Act (19 USC 1619); satisfaction of liens against the forfeited property, and claims of parties 

with interest in forfeited property; expenses incurred by state and local law enforcement agencies in 

joint law enforcement operations with law enforcement agencies participating in the Fund; and 

equitable sharing payments made to state and local law enforcement agencies in recognition of their 

efforts in a Fund seizure leading to forfeiture. These mandatory expenses are paid pursuant to the 

permanent indefinite authorities of the Fund; are only limited by revenue in the Fund each year and do 

not require additional Congressional action for expenditure. 

The Fund's expenses are either paid on a reimbursement basis or paid directly on behalf of a 

participating bureau. Reimbursable expenses are incurred by the respective bureaus participating in 

the Fund against their appropriation and then submitted to the Fund for reimbursement. The bureaus 

are reimbursed through Inter-Agency Transfers (SF-1081) or Intra-governmental Payments and 

Collection (IPAC) System. Certain expenses such as equitable sharing, liens, claims and state and local 

joint operations costs are paid directly from the Fund. 

Further, the Fund is a component unit of the Treasury with participating bureaus in the DHS. As such, 

employees of both Departments may perform certain operational and administrative tasks related to the 

Fund. Payroll costs of employees directly involved in the security and maintenance of forfeited 

property are also recorded as expenses in the financial statements of the Fund (included in the line item 

“seizure investigative costs and asset management” in the statement of net cost.) 

Revenue and Expense Recognition 

Revenue from the forfeiture of property is deferred until the property is sold or transferred to a state, 

local or federal agency. Revenue is not recorded if the forfeited property is ultimately destroyed or 

cannot be legally sold. 

Revenue from currency is recognized upon forfeiture. Payments in lieu of forfeiture (mitigated 

seizures) are recognized as revenue when the payment is received. Revenue received from participating 

with certain other federal agencies is recognized when the payment is received. Operating costs are 

recorded as expenses and related liabilities when goods are received, or services are performed. Certain 

probable equitable sharing liabilities existing at year end are accrued based on estimates. 

As provided for in the TFF Act, the Fund invests seized and forfeited currency that is not needed for 

current operations. Treasury’s Bureau of Fiscal Service invests the funds in obligations of, or 

guaranteed by, the United States Government. Interest is reported to the Fund and recorded monthly 

as revenue in the general ledger. 

Funds from Dedicated Collections 

Funds from dedicated collections are financed by specifically identified revenues, often supplemented 

by other financing sources, which remain available over time. These specifically identified revenues 

and other financing sources are required by statute to be used for designated activities, benefits, or 

purposes, and must be accounted for separately from the Government’s general revenues. In 

accordance with SFFAS 43, Funds from Dedicated Collections, all of the TFF’s revenue meets these 

criteria and constitutes funds from dedicated collections. 

SECTION III - FINANCIAL STATEMENTS AND NOTES 29 
 

 

 

 

 

 

 

 

 

 

 

The Federal Government does not set aside assets to pay future benefits or other expenditures 

associated with funds from dedicated collections. The cash collected from funds from dedicated 

collections is deposited in the U.S. Treasury, which uses the cash for general government purposes. 

Treasury securities are issued to the TFF as evidence of its receipts. Treasury securities are an asset to 

the TFF and a liability to the U.S. Treasury. Because the TFF and U.S. Treasury are both parts of the 

government, these assets and liabilities offset each other from the standpoint of the government as a 

whole. For this reason, they do not represent an asset or a liability in the U.S. Government-wide 

financial statements. Treasury securities provide the TFF with authority to draw upon the U.S. Treasury 

to make future benefit payments or other expenditures. When the TFF requires redemption of these 

securities to make expenditures, the government finances those expenditures out of accumulated cash 

balances, by raising taxes or other receipts, by borrowing from the public or repaying less debt or by 

curtailing other expenditures. This is the same way that the government finances all other expenditures. 

Equitable Sharing (Assets Distributed) 

Forfeited property, currency, or proceeds from the sales of forfeited property may be shared with 

federal, state and local law enforcement agencies or foreign governments, which provided direct or 

indirect assistance in the related seizure. In addition, the Fund may transfer forfeited property to other 

federal agencies, which would benefit from the use of the item. A class of asset distribution was 

established for victim restitution in 1995. These distributions include property and cash returned to 

victims of fraud and other illegal activity. Upon approval by Fund management to share or transfer the 

assets, both revenue from distributed forfeited assets and distributions are recognized for the net 

realizable value of the asset to be shared or transferred, thereby resulting in no gain or loss recognized. 

Revenue and /or expenses are recognized for property and currency, which are distributed to or shared 

with non-federal agencies, per SFFAS No. 7, Accounting for Revenue and Other Financing Sources. 

Entity Assets 

Entity assets are used to conduct the operations and activities of the Fund. Entity assets comprise 

intragovernmental and non-intragovernmental assets. Intragovernmental balances arise from 

transactions among federal agencies. These assets are claims of a federal entity against another federal 

entity. Entity assets consist of cash or other assets, which could be converted into cash to meet the 

Fund's current or future operational needs. Such other assets include investments of forfeited balances, 

accrued interest on seized balances, receivables, and forfeited property, which are held for sale or to be 

distributed. 

•	 Fund Balance with Treasury – This represents amounts on deposit with Treasury. 

•	 Investments and Related Interest Receivable – This includes forfeited cash held by the Fund and 

seized currency held in the Customs Suspense Account that had been invested in short term U.S. 

Government Securities. 

•	 Accounts Receivables – The values reported for other receivables are primarily funds due from 

the national seized property contractor for properties sold; the proceeds of which have not yet been 

deposited into the Fund. No allowance has been made for uncollectible amounts as the accounts 

recorded as a receivable at year end were considered to be fully collectible as of September 30, 

2022 and 2021. 

30 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

•	 Cash and Other Monetary Assets – This includes forfeited currency on hand not yet deposited 

and forfeited currency held as evidence. 

•	 Forfeited Property and Currency – Forfeited property and currency is recorded in the respective 

seized property and forfeited asset tracking systems at the estimated fair value at the time of seizure. 

However, based on historical sales experiences for the year, properties are adjusted to reflect the 

market value at the end of the fiscal year for financial statement reporting purposes. Direct and 

indirect holding costs are not capitalized for individual forfeited assets. Forfeited currency not 

deposited into the Fund is included as part of Entity Assets - Cash and Other Monetary Assets. 

Further, mortgages and claims on forfeited assets are recognized as a valuation allowance and a 

reduction of deferred revenue from forfeited assets when the asset is forfeited. The allowance includes 

mortgages and claims on forfeited property held for sale and a minimal amount of claims on forfeited 

property previously sold. Mortgages and claims expenses are recognized when the related asset is sold 

and is reflected as a reduction of sales of forfeited property. 

Additionally, SFFAS No. 3, Accounting for Inventory and Related Property, requires certain additional 

disclosures in the notes to the financial statements, including an analysis of changes in seized and 

forfeited property and currency, for both carrying value and quantities, from that on hand at the 

beginning of the year to that on hand at the end of the year. These analyses are disclosed in Notes 7 

and 8. 

Non-entity Assets 

Non-entity assets held by the Fund are not available for use by the Fund. Non-entity assets comprise 

intragovernmental and other assets. Intragovernmental balances arise from transactions among federal 

agencies. These assets are claims of a federal entity against another federal entity. Non-entity assets 

are not considered as financing sources (revenue) available to offset operating expenses, therefore, a 

corresponding liability is recorded and presented as governmental liabilities in the balance sheet to 

reflect the custodial/fiduciary nature of these activities. 

•	 Seized Currency and Property – Seized Currency is defined as cash or monetary instruments that 

are readily convertible to cash on a dollar-for-dollar basis. SFFAS No. 3 requires that seized 

monetary instruments (cash and cash equivalents) be recognized as an asset in the financial 

statements and a liability be established in an amount equal to the seized asset value due to: (i) the 

fungible nature of monetary instruments, (ii) the high level of control that is necessary over these 

assets; and (iii) the possibility that these monies may be returned to their owner in lieu of forfeiture. 

Seized property is recorded at its appraised value at the time of seizure. The value is determined 

by the seizing entity and is usually based on a market analysis such as a third-party appraisal, 

standard property value publications or bank statements. Seized property is not recognized as an 

asset in the financial statements, as transfer of ownership to the government has not occurred as of 

September 30. Accordingly, seized property other than monetary instruments is disclosed in the 

footnotes in accordance with SFFAS No. 3. 

SECTION III - FINANCIAL STATEMENTS AND NOTES 31 
 

 

 

 

 

 

 

 

•	 Investments and Related Interest Receivable – This balance includes seized cash on deposit in 

the Fund’s suspense account held by Treasury, which has been invested in short term U.S. 

Government Securities. 

•	 Cash and Other Monetary Assets – This balance represents the aggregate amount of the Fund’s 

seized currency on deposit in the Fund’s suspense account held by Treasury, seized cash on deposit 

held with other financial institutions and, cash on hand in vaults held at field office locations. 

Liabilities Covered by Budgetary Resources 

Liabilities covered by budgetary resources represent liabilities incurred, which are covered by available 

budgetary resources. The components of such liabilities for the Fund are as follows: 

•	 Distributions Payable – Distributions payable to federal and non-federal agencies is primarily 

related to equitable sharing payments and payments to be made by the Fund to the victims of fraud. 

•	 Accounts Payable – Amounts reported in this category include accrued expenses authorized by 

the TFF Act (See "Allowable Fund Expenses") for which payment was pending at year end. 

•	 Seized Currency – Amounts reported in this category represent the value of seized currency that 

is held by the Fund which equals the amount of seized currency reported as an asset. 

•	 Deferred Revenue from Forfeited Assets – At year end, the Fund held forfeited assets, which had 

not yet been converted into cash through a sale. The amount reported here represents the value of 

these assets, net of mortgages and claims. 

Liabilities Not Covered by Budgetary Resources 

The Fund does not currently have liabilities not covered by available budgetary resources. 

Net Position 

The components of net position are classified as follows: 

•	 Retained Capital – There is no cap on amounts that the Fund can carry forward into Fiscal Year 

2023. The cap was removed by the Fiscal Year 1997 Omnibus Appropriations Act (PL 104-208). 

•	 Unliquidated Obligations – This category represents the amount of undelivered purchase orders, 

contracts and equitable sharing requests which have been obligated with current budget resources 

or delivered purchase orders and contracts that have not been invoiced. An expense and liability 

are recognized, and the corresponding obligations are reduced as goods are received or services are 

performed. A portion of the equitable sharing requests that were in final stages of approval are 

recognized as liabilities at year end. Prior experience with the nature of this account indicated that 

a substantial portion of these requests were certain liabilities at year end. (See also Distributions 

Payable at Note 10). 

32 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

 

 

•	 Net Results of Operations – This category represents the net difference, for the activity during the 

year, between: (i) financing sources including transfers, and revenues; and (ii) expenses. 

Note 3: Investments and Related Interest Receivable 

All investments are intragovernmental short-term (35 days or less) non-marketable par value federal 

debt securities issued by, and purchased through Treasury's Bureau of the Fiscal Service, Federal 

Investments Branch. Investments are always purchased at a discount and are reported at acquisition 

cost, net of discount. The discount is amortized into interest income over the term of the investment. 

The investments are always held to maturity. They are made from cash in the Fund and from seized 

currency held in the Customs Suspense Account. The Customs Suspense Account became the 

depository for seized cash for the Fund following enactment of the TFF Act. 

The following schedule presents the investments on hand as of September 30, 2022 and 2021, 

respectively (dollars in thousands): 

Entity Assets 

Description 

September 30, 2022 

Cost Unamortized 

Discount 

Investment, 

Net 

Treasury Forfeiture Fund -

28 days 2.425% U.S. Treasury Bills $2,047,941 ($3,863) $2,044,078 

Interest Receivable 306 

Total Investment, Net, and Interest Receivable $2,044,384 

Fair Market Value $2,044,350 

September 30, 2021 

Treasury Forfeiture Fund -

28 days 0.045% U.S. Treasury Bills $1,824,822 ($64) $1,824,758 

Interest Receivable -

Total Investment, Net, and Interest Receivable $1,824,758 

Fair Market Value $1,824,726 

SECTION III - FINANCIAL STATEMENTS AND NOTES 33 
 

 

 

 

 

 

 

 

 

 

 

 

Non-entity Assets 

Description 

September 30, 2022 

Cost Unamortized 

Discount 

Investment, 

Net 

Treasury Forfeiture Fund – 

Seized Currency Suspense Account 

28 days 2.425% U.S. Treasury Bills $2,497,358 ($4,710) $2,492,648 

Fair Market Value $2,492,980 

September 30, 2021 

Treasury Forfeiture Fund – 

Seized Currency Suspense Account 

28 days 0.045% U.S. Treasury Bills 

Fair Market Value 

$2,882,913 ($101) $ 2,882,812 

$ 2,882,762 

Note 4: Analysis of Non-Entity Assets 

The following schedule presents the non-entity assets as of September 30, 2022 and 2021, respectively 

(dollars in thousands): 

2022 2021 

Seized currency: 

Intragovernmental Investments (Note 3) $ 2,492,648 $ 2,882,812 

Cash and other monetary assets (Note 5) 48,829 488,386 

Total Non-Entity Assets 2,541,477 3,371,198 

Total Entity Assets 2,948,657 2,086,983 

Total Assets $ 5,490,134 $ 5,458,181 

34 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

Note 5: Cash and Other Monetary Assets 

Entity Assets 

Cash and Other Monetary Assets held on hand included forfeited currency not yet deposited, as well 

as forfeited currency held as evidence, amounting to $16.2 million and $104.1 million as of September 

30, 2022 and 2021, respectively. 

Non-Entity Assets 

Cash and Other Monetary Assets included seized currency not yet deposited, as well as deposited seized 

currency, which is not invested in order to pay remissions, amounted to $48.8 million and $488.4 

million as of September 30, 2022 and 2021, respectively. 

Note 6: Forfeited Property/Deferred Revenue 

The following summarizes the components of forfeited property (net), as of September 30, 2022 and 

2021, respectively (dollars in thousands): 

2022 2021 

Held for sale $ 982,035 $ 183,207 

To be shared with federal, State or local, or foreign government 697 438 

Total forfeited property (Note 7) 982,732 183,645 

Less: Allowance for liens and claims (144,325) (26,523) 

Total forfeited property, net $ 838,407 $ 157,122 

SECTION III - FINANCIAL STATEMENTS AND NOTES 35 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note 7: FY 2022 Analysis of Changes in Forfeited Property and Currency 

The following schedule presents the changes in the forfeited property and currency balances from October 1, 2021 to September 30, 2022. 

(Dollar value is in thousands) 

10/1/21 Financial 

Statement Balance Adjustments 

10/1/21 

Carrying Value Forfeitures Deposits/Sales Disposals/Transfers 

Value No. Value No. Value No. Value No. Value No. Value No. 

Currency $99,998 - $- - $99,998 - $805,069 - $(1,020,682) - $ - -

Other Monetary 

Instruments 4,076 - - - 4,076 - 3,697 - (3,532) - - -

Subtotal 104,074 - - - 104,074 - 808,766 - (1,024,214) - - -

Real Property 39,241 100 1,413 - 40,654 100 51,464 132 (30,013) (56) - -

General Property 114,955 17,494 43,244 - 158,199 17,494 1,124,746 15,942 (45,551) (1,854) (7,369) (1,296) 

Vessels 3,818 217 1,283 - 5,101 217 3,964 405 (4,310) (47) - -

Aircraft 2,800 17 277 - 3,077 17 2,216 19 (2,655) (15) (1) (1) 

Vehicles 22,831 4,256 9,808 - 32,639 4,256 71,144 10,862 (32,411) (7,433) (2,906) (220) 

Subtotal 183,645 22,084 56,025 - 239,670 22,084 1,253,534 27,360 (114,940) (9,405) (10,276) (1,517) 

Grand Total $287,719 22,084 $56,025 - $343,744 22,084 $2,062,300 27,360 $(1,139,154) (9,405) $(10,276) (1,517) 

Victim Restitution Destroyed 

Other 

Adjustments Value Change 2022 Carrying Value 

Fair Market Value 

Adjustment 

9/30/22 Financial 

Statement Balance 

Value No. Value No. Value No. Value No. Value No. Value No. Value No. 

Currency $- - $- - $128,600 - $(1,062) - $11,923 - $- - $11,923 -

Other Monetary 

Instruments -

-

-

- - - - 4,241 - - - 4,241 -

Subtotal - - - - 128,600 - (1,062) - 16,164 - - - 16,164 -

Real Property - - - - 4,546 (17) (625) - 66,026 159 1,316 - 67,342 159 

General Property - - (28,014) (11,946) 8,892 358 (3,178) - 1,207,725 18,698 (327,035) - 880,690 18,698 

Vessels - - (388) (298) 1,074 (3) (1,210) - 4,231 274 (1,501) - 2,730 274 

Aircraft - - (52) (2) 14 - (381) - 2,218 18 (97) - 2,121 18 

Vehicles - - (4,098) (1,265) (22,708) (1,805) (956) - 40,704 4,395 (10,855) - 29,849 4,395 

Subtotal - - (32,552) (13,511) (8,182) (1,467) (6,350) - 1,320,904 23,544 (338,172) - 982,732 23,544 

Grand Total $- - $(32,552) (13,511) $120,418 (1,467) $(7,412) - $1,337,068 23,544 $(338,172) - $998,896 23,544 

36 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note 7: FY 2021 Analysis of Changes in Forfeited Property and Currency 

The following schedule presents the changes in the forfeited property and currency balances from October 1, 2020 to September 30, 2021. 

(Dollar value is in thousands) 

10/1/20 Financial 

Statement Balance Adjustments 

10/1/20 

Carrying Value Forfeitures Deposits/Sales Disposals/Transfers 

Value No. Value No. Value No. Value No. Value No. Value No. 

Currency $77,568 - $- - $77,568 - $440,292 - $(589,738) - $ (34) -

Other Monetary 

Instruments 2,543 - - - 2,543 - 1,706 - (114) - - -

Subtotal 80,111 - - - 80,111 - 441,998 - (589,852) - (34) -

Real Property 43,421 142 7,483 - 50,904 142 25,661 57 (37,077) (99) (499) (2) 

General Property 27,836 18,112 33,431 - 61,267 18,112 57,501 16,141 (18,667) (3,023) (6,264) (907) 

Vessels 4,075 193 530 - 4,605 193 3,423 253 (2,408) (59) (62) (1) 

Aircraft 3,690 18 65 - 3,755 18 2,544 14 (2,176) (11) (657) (3) 

Vehicles 12,508 3,142 11,051 - 23,559 3,142 52,759 10,613 (25,445) (6,370) (2,893) (294) 

Subtotal 91,530 21,607 52,560 - 144,090 21,607 141,888 27,078 (85,773) (9,562) (10,375) (1,207) 

Grand Total $171,641 21,607 $52,560 - $224,201 21,607 $583,886 27,078 $(675,625) (9,562) $(10,409) (1,207) 

Victim Restitution Destroyed 

Other 

Adjustments Value Change 2021 Carrying Value 

Fair Market Value 

Adjustment 

9/30/21 Financial 

Statement Balance 

Value No. Value No. Value No. Value No. Value No. Value No. Value No. 

Currency $- - $- - $188,146 - $(16,236) - $99,998 - $- - $99,998 -

Other Monetary 

Instruments -

-

-

(59) - - - 4,076 - - - 4,076 -

Subtotal - - - - 188,087 - (16,236) - 104,074 - - - 104,074 -

Real Property - - - - 1,790 2 (125) - 40,654 100 (1,413) - 39,241 100 

General Property - - (24,805) (12,118) 91,170 (711) (2,003) - 158,199 17,494 (43,244) - 114,955 17,494 

Vessels - - (244) (164) (12) (5) (201) - 5,101 217 (1,283) - 3,818 217 

Aircraft - - (172) (1) (217) - 3,077 17 (277) - 2,800 17 

Vehicles - - (4,455) (1,701) (10,423) (1,134) (463) - 32,639 4,256 (9,808) - 22,831 4,256 

Subtotal - - (29,504) (13,983) 82,353 (1,849) (3,009) - 239,670 22,084 (56,025) - 183,645 22,084 

Grand Total $- - $(29,504) (13,983) $270,440 (1,849) $(19,245) - $343,744 22,084 $(56,025) - $287,719 22,084 

SECTION III - FINANCIAL STATEMENTS AND NOTES 37 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note 8: FY 2022 Analysis of Changes in Seized Property and Currency 

Seized property and currency result primarily from enforcement activities. Seized property is not legally owned by the Fund until judicially or 

administratively forfeited. Because of the fungible nature of currency and the high level of control necessary over these assets and the possibility that 

these monies may be returned to their owners in lieu of forfeiture, seized currency is reported as a custodial asset upon seizure. Seized property other 

than currency is reported as a custodial asset upon forfeiture. The following schedule presents the changes in the seized property and currency balances 

from October 1, 2021 to September 30, 2022. (Dollar value is in thousands) 

10/1/21 Financial 

Statement Balance Seizures Remissions Forfeitures Adjustments Value 

Changes 

9/30/22 Financial 

Statement Balance 

Value No. Value No. Value No. Value No. Value No. Value N 

o 

. 

Value No. 

Currency $3,342,351 - $652,682 - $(118,136) - $(805,069) - $(572,021) - $15,175 - $2,514,982 -

Other 

Monetary 

Instruments 28,847 - 690 - (46) - (3,697) - 701 - - - 26,495 

-

Subtotal 3,371,198 - 653,372 - (118,182) - (808,766) - (571,320) - 15,175 - 2,541,477 -

Real Property 294,305 421 338,758 250 (19,290) (43) (51,464) (132) (22,869) (58) (181,555) - 357,885 438 

General 

Property 

1,928,826 32,115 8,161,937 24,820 (44,422) (8,494) (1,124,746) (15,942) (1,227,184) (4,973) (162,873) - 7,531,538 27,526 

Vessels 97,363 212 12,772 493 (2,355) (28) (3,964) (405) (844) (16) (2,277) - 100,695 256 

Aircraft 16,184 39 13,555 53 (2,150) (7) (2,216) (19) (343) (13) 4,740 - 29,770 53 

Vehicles 83,278 7,295 194,558 16,762 (87,530) (4,820) (71,144) (10,862) (32,506) (1,599) 13,887 - 100,543 6,776 

Subtotal 2,419,956 40,082 8,721,580 42,378 (155,747) (13,392) (1,253,534) (27,360) (1,283,746) (6,659) (328,078) - 8,120,431 35,049 

Grand Total $5,791,154 40,082 $9,374,952 42,328 $(273,929) (13,392) $(2,062,300) (27,360) $ (1,855,066) (6,659) $(312,903) - $10,661,908 35,049 

38 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022
 
 

 

 

 

 

 

 

 

 

 

 

 

 

Note 8: FY 2021 Analysis of Changes in Seized Property and Currency 

Seized property and currency result primarily from enforcement activities. Seized property is not legally owned by the Fund until judicially or 

administratively forfeited. Because of the fungible nature of currency and the high level of control necessary over these assets and the possibility that 

these monies may be returned to their owners in lieu of forfeiture, seized currency is reported as a custodial asset upon seizure. Seized property other 

than currency is reported as a custodial asset upon forfeiture. The following schedule presents the changes in the seized property and currency balances 

from October 1, 2020 to September 30, 2021. (Dollar value is in thousands) 

10/1/20 Financial 

Statement Balance Seizures Remissions Forfeitures Adjustments Value Changes 

9/30/21 Financial 

Statement Balance 

Value No. Value No. Value No. Value No. Value No. Value No 

. 

Value No. 

Currency $2,003,390 - $2,139,776 - $(118,442) - $(440,292) - $(242,462) - $381 - $3,342,351 -

Other 

Monetary 

Instruments 16,780 - 3,539 - (72) - (1,706) - 10,306 - - - 28,847 

-

Subtotal 2,020,170 - 2,143,315 - (118,514) - (441,998) - (232,156) - 381 - 3,371,198 -

Real Property 363,977 377 84,187 208 (14,679) (36) (25,661) (57) (21,354) (71) (92,165) - 294,305 421 

General 

Property 

611,234 32,231 1,534,344 23,360 (188,430) (4,104) (57,501) (16,141) 24,278 (3,231) 4,901 - 1,928,826 32,115 

Vessels 95,759 147 8,748 354 (2,032) (15) (3,423) (253) (488) (21) (1,201) - 97,363 212 

Aircraft 21,300 36 7,372 34 (7,617) (17) (2,544) (14) 27 - (2,354) - 16,184 39 

Vehicles 63,515 6,116 193,414 20,396 (100,633) (7,279) (52,759) (10,613) (22,444) (1,325) 2,185 - 83,278 7,295 

Subtotal 1,155,785 38,907 1,828,065 44,352 (313,391) (11,451) (141,888) (27,078) (19,981) (4,648) (88,634) - 2,419,956 40,082 

Grand Total $3,175,955 38,907 $3,971,380 44,352 $(431,905) (11,451) $(583,886) (27,078) $(252,137) (4,648) $(88,253) - $5,791,154 40,082 

SECTION III - FINANCIAL STATEMENTS AND NOTES 39 
 

 

 

 

 

 

 

 

 

 

 

 

Note 9: Permanent Reduction/Transfer to the General Fund 

The unobligated balance is usually available to cover costs related to seizures and forfeitures and certain 

other law enforcement activities. The Consolidated Appropriations Act of 2022 permanently cancelled 

$175 million. This permanent reduction or cancellation means that the amount will never be used for 

its intended purposes. In fiscal year 2021, there was a permanent reduction of $75 million. The 

cancelled funds for fiscal year 2022 were transferred to the General Fund on August 31, 2022. 

Note 10: Distributions Payable 

Distributions Payable (state and local agencies and foreign governments) amounted to $66.7 million 

and $91.8 million as of September 30, 2022 and 2021, respectively. Fund management recognizes as 

a liability a portion (based on the average of historical pay-out percentage) of the equitable sharing 

requests, that were approved or in the final stages of approval on September 30, 2022 and 2021, 

respectively. Prior experience with the nature of this account indicated that a substantial portion of 

these requests were certain to be paid out by the Fund during the following fiscal year. 

Note 11: Net Position 

Cumulative Results of Operations 

The following summarizes components of cumulative results of operations as of September 30, 2022 

and 2021, respectively (dollars in thousands): 

2022 2021 

Retained Capital $ 538,497 $ 829,348 

Unliquidated Obligations 876,183 387,531 

Net Results of Operations 429,930 197,801 

Cumulative Results of Operations $ 1,844,610 $ 1,414,680 

Unliquidated Obligations 

The following summarizes the components of unliquidated obligations as of September 30, 2022 and 

2021 respectively (dollars in thousands): 

2022 2021 

Equitable Sharing $ 239,687 $ 266,582 

Mandatory 636,496 120,949 

Unliquidated Obligations $ 876,183 $ 387,531 

40 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note 12: Related Party Transactions 

The Fund reimbursed agencies for the purchase of certain capital assets. These assets are reported by 

the participating agencies in their financial statements. 

Note 13: Strategic Support 

31 USC 9705 (g)(4)(B) allows for the expenditure, without fiscal year limitation, after the reservation 

of amounts needed to continue operations of the Fund. This “Strategic Support” balance may be used 

for law enforcement activities of any federal agency. 

Amounts distributed to other federal agencies for law enforcement activities under “Strategic Support” 

requirements amounted to $96.1 million and $361 million in fiscal years 2022 and 2021, respectively. 

The following summarizes Strategic Support payments, net of Transfers-In for the years ended 

September 30, 2022 and 2021, respectively, (dollars in thousands): 

2022 2021 

Transfers - Out $ (96,083) $ (360,531) 

Transfers - In 87,058 455,712 

Total $ (9,025) $ 95,181 

Note 14: Secretary’s Enforcement Fund 

31 USC 9705(b)(5) is another category of permanent indefinite authority. These funds are available to 

the Secretary, without further action by Congress and without fiscal year limitation, for federal law 

enforcement purposes of Treasury law enforcement organizations. The source of Section 9705(b)(5) 

funds is equitable sharing payments received from the Department of Justice and the U.S. Postal 

Service (USPS) representing Treasury's share of forfeiture proceeds from Justice and USPS cases. 

The net amounts distributed for federal law enforcement purposes of Treasury law enforcement 

organizations amounted to $8.9 million and $12.2 million in fiscal years 2022 and 2021, respectively. 

The following summarizes Secretary’s Enforcement Fund payments, net of Transfers-In for the years 

ended September 30, 2022 and 2021, respectively, (dollars in thousands): 

2022 2021 

Transfers - Out $ (10,803) $ (14,677) 

Transfers - In 1,925 1,857 

Total $ (8,878) $ (12,820) 

SECTION III - FINANCIAL STATEMENTS AND NOTES 41 
 

 

 

 

 

 

 

 

 

Note 15: Commitments and Contingencies 

COMMITMENTS 

The Fund is subject to equitable sharing claims from participating state and local law enforcement 

agencies. A portion of these claims that were in final stages of approval have been recognized as 

liabilities as of September 30 (See Note 10). 

In addition to the amounts estimated above, there are other amounts, which may ultimately be shared, 

that are not identified at this time. 

CONTINGENCIES 

As of September 30, 2022, the Fund had future expenditures of $805.4 million (see Note 17) for refunds 

and equitable sharing matters, which are reasonably estimable. The future expenditures are based upon 

the best estimate of costs to be incurred for refunds considering the progress made by seizing agencies 

and the relevant United States Attorney’s Offices in achieving a resolution to forfeitures. Additionally, 

part of the amount will soon be equitably shared with the Department of Justice pursuant to a longstanding memorandum of agreement. 

In FY 2021, The Fund reported two litigation items concerning the Fund for U.S. Victims of State 

Sponsored Terrorism (USVSST Fund) that could have had a future material impact of $228 million. 

As of today, the risk of loss is $0. While one case is still pending, it no longer involves valid 

TFF/Treasury claims and no longer poses a financial risk to the TFF or Treasury, and the risk of loss 

is now categorized as remote. 

There is a reportable matter concerning a prior IRS-CI forfeiture, in which it is expected that the civil 

branch of the IRS will seek a levy against the TFF for approximately $485,480.33. This amount was 

deposited to the Fund in 2019 pursuant to valid civil forfeiture order that the U.S. Attorney’s Office 

(USAO) sought and obtained in the civil case, evidently unaware that the forfeiture order conflicted 

with a prior (May 2017) plea agreement that the USAO had entered into with a taxpayer/defendant 

in a tax case, which had no forfeiture, and in which the USAO agreed to use these funds towards the 

defendant’s tax liability. The defendant’s attorney recently realized the tax debt had not yet been 

satisfied and contacted the USAO to seek the funds. The IRS civil side has inquired with the TFF and 

USAO as well. TFF’s Counsel is working with the USAO, TFF management, and IRS-CI to explore 

options to remedy the situation, and it is probable that the civil branch of the IRS will issue the levy, 

which would provide the only mechanism for the TFF to release the $485,480.33. 

42 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note 16: Disclosures Related to the Statements of Net Cost 

Gross costs and earned revenue related to Law Enforcement Programs administered by the Fund are 

presented in Treasury’s budget functional classification (in thousands) as set out below: 

Gross Costs 

Earned Revenues 

2022 

$ 295,795 

-

2021 

$ 279,928 

-

Net Costs $ 295,795 $ 279,928 

The Fund falls under the Treasury’s budget functional classification related to Administration of 

Justice. 

Note 17: Disclosures Related to the Statements of Budgetary Resources 

The Fund’s budgetary obligations are fully covered by cash on hand in the Fund and Entity Investments. 

The Fund does not have borrowing or contract authority and, therefore, has no repayment requirements, 

financing sources for repayment, or other terms of borrowing authority. There are no legal 

arrangements, outside of normal government wide restrictions, specifically affecting the Fund’s use of 

unobligated balances of budget authority. 

Adjustments to budgetary resources available at the beginning of fiscal years 2022 and 2021 consist of 

the following (in thousands): 

2022 2021 

Recoveries of Prior Year Unpaid Obligations $ 22,136 $ 33,811 

Other Changes in Unobligated Balance 84,833 455,448 

Adjustments to Budgetary Resources Available $ 106,969 $ 489,259 

Adjusted unobligated balances available at the beginning of fiscal years 2022 and 2021 are as follows 

(in thousands): 

2022 2021 

Prior Year Ending Unobligated Balance $ 877,271 $ 691,453 

Adjustments to Budgetary Resources Available 106,969 489,259 

Unobligated Balance from Prior Year Budget 

Authority, Net $ 984,240 $1,180,712 

The Fund was required to change its methodology for recognizing remissions and equitable sharing 

obligations beginning in FY 2016. Under the newly adopted method, an obligation for refunds or 

remissions will be created only upon receipt of a Ruling Letter from the Department of Justice for 

judicial forfeiture cases or from Fund member agencies for administrative forfeitures. Additionally, 

obligations related to equitable sharing will be recognized upon TEOAF’s approval of Fund member 

agencies’ request for transfers and related distribution percentages and amounts on the Decision Form. 

Consequently, the Fund has future expenditures and commitments from remissions and equitable 

sharing that will be funded from the September 30, 2022 unobligated balance. 

SECTION III - FINANCIAL STATEMENTS AND NOTES 43 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following shows anticipated reductions to the unobligated balances of budget authority resulting 

from these future expenditures and commitments for fiscal years 2022 and 2021. 

2022 2021 

Unobligated balance $ 876,333 $ 877,271 

Future expenditures (Note 15): 

Refund and remissions (588,132) (421,329) 

Equitable sharing (217,286) (169,385) 

Total future expenditures (805,418) (590,714) 

Commitments (Note 15) - -

Total reductions to unobligated balance (805,418) (590,714) 

Unobligated balance net of future expenditures, and 

commitments $ 70,915 $ 286,557 

Note 18: Dedicated Collections 

The Fund is classified as a special fund. All its activities are reported as dedicated collections held for 

later use. 

Note 19: Payments in Lieu of Forfeiture, Net of Refunds 

The following summarizes Payments in Lieu of Forfeiture, Net of Refunds for the years ended 

September 30, 2022 and 2021, respectively (dollars in thousands): 

2022 2021 

Payments in Lieu of Forfeiture $ 14,094 $ 9,430 

Refunds (638) (710) 

Total $ 13,456 $ 8,720 

44 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note 20: Reconciliation of Net Cost of Operations to Net Budgetary Outlays 

The reconciliation of Net Cost of Operations to Net Budgetary Outlays demonstrates the relationship 

between the Fund’s proprietary (net cost of operations) and budgetary accounting (net outlays) 

information (in thousands): 

September 30, 2022 

Net Cost 

Federal 

$211,446 

NonFederal 

$84,349 

Total 

$295,795 

Increase/(decrease) in assets: 

Investments and interest receivables 

Cash, foreign currency, and other monetary assets 

Other receivables, net 

Other assets 

(170,538) 

-

-

-

-

(527,634) 

3,955 

681,451 

(170,538) 

(527,634) 

3,955 

681,451 

(Increase)/decrease in liabilities: 

Other payables 

Other intra-governmental liabilities 

Other liabilities 

184,612 

26,199 

148,436 

26,199 

184,612 

148,436 

Total components of Net Cost not part of Net 

Outlays 14,074 332,407 346,481 

Components of the Budget Outlays that are not part 

of Net Costs 

Other financing sources 

Public debt investments 

Transfers out (in) without reimbursement 

170,538 

17,903 

-

-

170,538 

17,903 

Total components of Net Outlays that are not part of 

Net Costs 188,441 - 188,441 

Other Reconciling Items (26,099) (43,075) (69,174) 

Net Outlays $387,862 $373,681 $761,543 

SECTION III - FINANCIAL STATEMENTS AND NOTES 45 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2021 

Net Cost 

Federal 

$202,168 

NonFederal 

$77,760 

Total 

$279,928 

Increase/(decrease) in assets: 

Investments and interest receivables 

Cash, foreign currency, and other monetary 

Other receivables, net 

Other assets 

1,716,811 

assets 

-

- 263,180 

- (1,704) 

- 71,707 

1,716,811 

263,180 

(1,704) 

71,707 

(Increase)/decrease in liabilities: 

Other liabilities (296,582) (1,482,449) (1,779,031) 

Total components of Net Cost not part of Net Outlays 1,420,229 (1,149,266) 270,963 

Components of the Budget Outlays that are not part 

of Net Costs 

Other financing sources 

Public debt investments (1,716,811) - (1,716,811) 

Transfers out (in) without reimbursement (82,361) 339,660 257,299 

Total components of Net Outlays that are not part of 

Net Costs (1,799,172) 339,660 (1,459,512) 

Other Reconciling Items - 1,085,727 1,085,727 

Net Outlays $(176,775) $353,881 $177,106 

Note 21: Fund Balance with Treasury 

The Fund Balance with Treasury as of September 30, 2022 and 2021 consisted of the following (in 

thousands): 

Status of Fund Balance with Treasury: 2022 2021 

(1) Unobligated Balance 

(a) Available $ 693,673 $ 855,460 

(b) Unavailable 253,300 66,586 

(2) Obligated Balance not yet Disbursed 1,141,823 863,981 

(3) Non-Budgetary FBWT (2,044,078) (1,786,027) 

Total $ 44,718 $ -

46 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
SECTION IV
 

REQUIRED SUPPLEMENTAL INFORMATION
 

(UNAUDITED)
 
 

THIS PAGE INTENTIONALLY LEFT BLANK
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intragovernmental Amounts – Assets (Dollars in thousands) 

2022 2021 

Fund 

Balance 

with Fund Balance with 

Partner Agency Treasury Investments Treasury Investments 

Treasury $ 44,718 - $ - $ - $ -

Bureau of the Fiscal 

Service - 4,537,032 - 4,707,570 

Totals $ 44,718 $ 4,537,032 $ - $ 4,707,570 

Intragovernmental Amounts – Liabilities (Dollars in thousands) 

2022 2021 

Accounts Accounts 

Partner Agency Payable Payable 

Treasury Bureau of the Fiscal 

Service (Fund Balance with 

Treasury) $ - $ 38,731 

Department of Justice 3,556 -

Department of Homeland Security 139,706 345,290 

Departmental Offices 776 850 

Treasury Office of the Inspector 

General - 137 

Tax and Trade 975 1,022 

Financial Crimes Enforcement 

Network 16,423 6,728 

Internal Revenue Service 31,867 23,888 

Totals $ 193,303 $ 416,646 

Intragovernmental Amounts – Revenues and Costs (Dollars in thousands) 

2022 2021 

Cost to Generate Costs to Generate Cost to Generate Costs to Generate 

Exchange Non-Exchange Exchange Non-Exchange 

Intragovernmental Intragovernmental Intragovernmental Intragovernmental 

Budget Functions Revenue Revenue Revenue Revenue 

Administration of 

Justice $ - $ 211,446 $ - $ 202,168 

SECTION IV – REQUIRED SUPPLEMENTAL INFORMATION (UNAUDITED) 47 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intragovernmental Amounts – Non-exchange Revenue (Dollars in thousands): 

2022 2021 

Partner Agency 

Transfers 

In 

Transfers 

Out 

Net 

Transfers 

In (Out) 

Transfers 

In 

Transfers 

Out 

Net 

Transfers 

In (Out) 

Department of Homeland 

Security $ 88,626 $ (56,569) $ 32,057 $457,319 $ (345,788) $ 111,531 

Internal Revenue Service 352 (26,980) (26,628) 250 (21,605) (21,355) 

Tax and Trade 5 (838) (833) - (1,087) (1,087) 

Financial Crimes Enforcement 

Network - (22,500) (22,500) - (6,728) (6,728) 

Department of Justice - - - - - -

General Fund - (175,000) (175,000) - (75,000) (75,000) 

$ 88,983 $ (281,887) ($ 192,904) $457,569 $(450,208) $ 7,361 

48 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022
 
SECTION V
 

OTHER ACCOMPANYING INFORMATION
 

(UNAUDITED)
 
THIS PAGE INTENTIONALLY LEFT BLANK
 
 

 

 

 

TREASURY FORFEITURE FUND 

Equitable Sharing Summarized by State and U.S. Territories 

For the Year Ended September 30, 2022 

(Dollars in Thousands) 

(Unaudited) 

State/U.S. Territories Currency Value Property Value 

Alabama $ 111 $ -

Alaska - -

Arizona 1,151 349 

Arkansas 124 -

California 6,902 3,551 

Colorado 1,550 29 

Connecticut 594 -

D.C. Washington - -

Delaware 96 20 

Florida 6,449 1,120 

Georgia 915 24 

Guam 4 -

Hawaii 905 3 

Idaho - -

Illinois 5,677 312 

Indiana 948 -

Iowa 10 -

Kansas 551 1,078 

Kentucky 310 23 

Louisiana 68 -

Maine 31 165 

Maryland 711 737 

Massachusetts 515 26 

Michigan 1,783 156 

Minnesota 330 6 

Mississippi 378 -

Missouri 804 30 

Montana - -

Nebraska 5,940 -

Nevada 149 -

New Hampshire 107 141 

New Jersey 516 160 

New Mexico - -

New York 7,198 5,364 

North Carolina 7,587 38 

North Dakota 290 6 

Northern Marianas 6 -

Ohio 1,475 10,979 

Oklahoma 483 4 

Oregon 4,649 188 

Pennsylvania 4,423 210 

Puerto Rico 552 -

Rhode Island 90 10 

South Carolina 796 -

South Dakota - -

Tennessee 245 96 

Texas 13,768 3,473 

Subtotal carried forward $ 79,191 $ 28,298 

TREASURY FORFEITURE FUND
 

SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 49 
 

 

 

 

 

 

Equitable Sharing Summarized by State and U.S. Territories
 

For the Year Ended September 30, 2022
 

(Dollars in Thousands)
 

(Unaudited)
 

State/U.S. Territories Currency Value Property Value 

Subtotal brought forward $ 79,191 $ 28,298 

Utah 166 -

Vermont 223 -

Virgin Islands - -

Virginia 1,734 -

Washington 830 993 

West Virginia 66 112 

Wisconsin 16 -

Wyoming 57 -

Totals $ 82,283 $ 29,403 

Summarized above are the currency and property values of assets forfeited and shared with state and 

local agencies and U.S. Territories participating in the seizure. This supplemental schedule is not a 

required part of the financial statement of the Department of the Treasury Forfeiture Fund. Information 

presented on this schedule represents assets physically transferred during the year and, therefore, does 

not agree with total assets shared with state and local agencies in the financial statements. In addition, 

the above numbers do not include the adjustment to present property distributed at net realizable value. 

50 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

TREASURY FORFEITURE FUND
 

Uncontested Seizures of Currency and Monetary Instruments Valued Over
 

$100 Thousand Taking More Than 120 Days from Seizure to Deposit in Fund
 

For the Year Ended September 30, 2022
 

(Dollars in Thousands)
 

31 U.S.C. 9705(f)(2)(E) requires the Secretary of the Treasury to report annually to Congress uncontested 

seizures of currency or proceeds of monetary instruments over $100 thousand which were not deposited in 

the Department of the Treasury Forfeiture Fund within 120 days of the seizure date. There were 29 

administrative seizures over $100 thousand over 120 days old totaling $7,294 that had not been transferred 

from the Seized Currency Suspense Account to the Treasury Forfeiture Fund as of the end of FY 2022. 

SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 51 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TREASURY FORFEITURE FUND
 

Analysis of Revenue and Expenses and Distributions
 

For the Year Ended September 30, 2022
 

(Dollars in Thousands)
 

Revenue, Expenses and Distributions by Asset Category: 

Expenses and 

Revenue Distributions 

Vehicles $ 34,304 $ 156,713 

Vessels 9,529 199,669 

Aircraft 9,529 64,326 

General Property 30,493 633,761 

Real Property 106,725 24,824 

Currency and monetary instruments 961,427 72,714 

1,152,007 1,152,007 

Less: 

Mortgages and claims (1,254) (1,254) 

Refunds (638) (638) 

Add: 

Excess of net revenues and financing sources over total program - -

expenses 

Total $ 1,150,115 $ 1,150,115 

Revenue, Transfers, Expenses and Distributions by Type of 

Disposition: 

Sales of property and forfeited currency and monetary instruments $ 914,015 $ 218,881 

Reimbursed storage costs 6,506 115,201 

Assets shared with state and local agencies 86,142 86,142 

Assets shared with other federal agencies 7,608 7,608 

Assets shared with foreign countries 964 964 

Victim Restitution 136,772 136,772 

Destructions - 138,241 

Pending disposition - 448,198 

1,152,007 1,152,007 

Less: 

Mortgages and claims (1,254) (1,254) 

Refunds (638) (638) 

Add: 

Excess of net revenues and financing sources over total program - -

expenses 

Grand Total $ 1,150,115 $ 1,150,115 

The revenue amount of $1,150,115 is from the Statement of Changes in Net Position. This supplemental 

schedule “Analysis of Revenues, Expenses and Distributions” is required under the Treasury Forfeiture Fund 

Act of 1992. 

52 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

TREASURY FORFEITURE FUND 

Information Required by 31 U.S.C. 9705(f) 

For the Year Ended September 30, 2022 

(Dollars in Thousands) 

The Treasury Forfeiture Fund Act of 1992, 31 U.S.C. 9705(f), requires the Secretary of the Treasury to 

transmit to Congress, no later than February 1, of each year, certain information. The following 

summarizes the required information. 

(1) A report on: 

(A) The estimated total value of property forfeited with respect to which funds were not deposited in the 

Department of the Treasury Forfeiture Fund during the preceding fiscal year under any law enforced 

or administered by the Department of the Treasury law enforcement organizations or the United States 

Coast Guard, in the case of fiscal years beginning after 1993. 

As reported in the audited financial statements, at September 30, 2022, the Fund had forfeited 

property held for sale of $982,035. The realized proceeds will be deposited in the Fund when 

the property is sold. 

Upon seizure, currency and other monetary instruments not needed for evidence in judicial 

proceedings are deposited in a Customs and Border Protection (CBP) suspense account. Upon 

forfeiture, it is transferred to the Treasury Forfeiture Fund. On September 30, 2022, there was 

$16,164 of forfeited currency and other monetary instruments that had not yet been transferred 

to the Fund. This is reported as a part of “Cash and Other Monetary Assets” in the audited 

financial statements. 

(B) The estimated total value of all such property transferred to any state or local law enforcement agency. 

The estimated total value of all such property transferred to any state or local law enforcement 

bureau is summarized by state and U.S. territories. Total currency transferred was $82,283 

and total property transferred was $29,403 at appraised value. 

(2) A report on: 

(A) The balance of the Fund at the beginning of the preceding fiscal year. 

The total net position of the Treasury Forfeiture Fund on September 30, 2021 which became 

the beginning balance for the Fund on October 1, 2021, as reported in the audited financial 

statements is $1,414,680. 

SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 53 
 

 

 

 

TREASURY FORFEITURE FUND 

Information Required by 31 U.S.C. 9705(f) 

For the Year Ended September 30, 2022 

(Dollars in Thousands) 

(B) Liens and mortgages paid and the amount of money shared with federal, state, local and foreign law 

enforcement bureaus during the preceding fiscal year. 

Mortgages and claims expense, as reported in the audited financial statements, was $1,254. The 

amount actually paid on a cash basis was not materially different. 

The amount of forfeited currency and property shared with federal, and distributed to state, 

local and foreign law enforcement bureaus as reported in the audited financial statements was 

as follows: 

State and local 

Foreign countries 

Other federal agencies 

Victim restitution 

Amount 

$86,142 

964 

7,608 

136,772 

(C) The net amount realized from the operations of the Fund during the preceding fiscal year, the amount 

of seized cash being held as evidence, and the amount of money that has been carried over into the 

current fiscal year. 

The net cost of operations of the Fund as shown in the audited financial statements is $295,795. 

The amount of seized currency not on deposit in the Fund’s suspense account at September 30, 

2022, was $48,829. This amount includes some funds in the process of being deposited at yearend, cash seized in August or September 2022 that is pending determination of its evidentiary 

value from the U.S. Attorney, and the currency seized for forfeiture being held as evidence. 

On a budgetary basis, unobligated balances as originally reported on the Office of Management 

and Budget Reports, SF-133, “Report on Budget Execution” was approximately $876,333 for 

fiscal year 2022. A permanent rescission of $175 million was declared for FY 2022. 

54 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2022 
 

 

 

 

 

 

 

 

 

 

 

TREASURY FORFEITURE FUND 

Information Required by 31 U.S.C. 9705(f) 

For the Year Ended September 30, 2022 

(Dollars in Thousands) 

(D) Any defendant’s property not forfeited at the end of the preceding fiscal year, if the equity in such 

property is valued at $1 million or more. 

The total approximate value of such property for the Treasury Forfeiture Fund, at estimated 

values determined by bureau and contractor’s officials, and the number of seizures is as follows: 

Bureau Amount Number 

CBP $ 456,974 107 seizures 

IRS 7,029,697 49 seizures 

U.S. Secret Service 96,500 28 seizures 

(E) The total dollar value of uncontested seizures of monetary instruments having a value of over $100 

thousand which, or the proceeds of which, have not been deposited into the Fund within 120 days 

after the seizure, as of the end of the preceding fiscal year. 

The total dollar value of such seizures is $7,294. This is also documented on page 51. 

(F) The balance of the Fund at the end of the current fiscal year. 

The total net position of the Fund at September 30, 2022, as reported in the audited financial 

statements is $1,844,610. 

(G) The net amount, if any, of the excess unobligated amounts remaining in the Fund at the end of the 

preceding fiscal year and available to the Secretary for Federal law enforcement related purposes. 

There is no cap on amounts that can be carried forward into Fiscal Year 2023 per the fiscal 

year 1997 Omnibus Appropriations Act (PL 104-208). 

(H) A complete set of audited financial statements prepared in a manner consistent with the requirements 

of the Chief Financial Officers Act of 1990. 

The audited financial statements, including the Independent Auditor’s Report, are found in 

Sections II and III. 

(I)	 An analysis of income and expense showing revenue received or lost: (i) by property category (such 

as general property, vehicles, vessels, aircraft, cash, and real property); and (ii) by type of disposition 

(such as sale, remission, cancellation, placement into official use, sharing with state and local 

agencies, and destruction). 

A separate schedule is presented on page 52. 

SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 55