Treasury Forfeiture Fund

ACCOUNTABILITY REPORT

Fiscal Year 2021

DEPARTMENT OF THE TREASURY

WASHINGTON, D.C.
THIS PAGE INTENTIONALLY LEFT BLANK
Message from the Director

I am pleased to present the fiscal year (FY) 2021 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 2021 was another challenging year with a permanent rescission of $75 million as part of the 

Consolidated Appropriations Act of 2021 (P.L. 116-260). Also, $44.8 million was sequestered as part of the 

government-wide sequestration order. In terms of overall revenue, FY 2021 was another highly successful year 

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

revenues of $808 million 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 2021, our member bureaus exceeded the target with a 

performance level of 90 percent. 

In FY 2021, 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 

particular needs of 3PML investigations related to new technologies, analytical tools, and professional services. 

It also promotes collaborative use of the Fund’s resources by member agencies. 

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

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

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

Darknet marketplaces, and business email compromise and network intrusion. Due to the unanticipated nature 

of Covid-19 and the Delta variant, the agencies needed additional resources to support operational needs and 

procure necessary tools and services to mount a successful law enforcement response to Covid-19 related crimes. 

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 2022. 

 

September 30, 2021 

John Farley, Director 

 Treasury Executive Office for Asset Forfeiture

 U.S. Department of the Treasury
THIS PAGE INTENTIONALLY LEFT BLANK
 

Table of Contents

Section I: Overview

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

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

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

Program and Fund Highlights........................................................................................ 14 

Program Performance.................................................................................................... 15 

Financial Statement Highlights...................................................................................... 17 

Section II: Independent Auditor’s Report

Independent Auditor’s Report........................................................................................ 21 

Section III: Financial Statements and Notes

Financial Statements:

Balance Sheets......................................................................................................... 25 

Statements of Net Cost ............................................................................................ 26 

Statements of Changes in Net Position..................................................................... 27 

Statements of Budgetary Resources......................................................................... 28 

Notes to Financial Statements.................................................................................. 29 

Section IV:

Required Supplemental Information (Unaudited) ................................................................ 49 

Section V:

Other Accompanying Information (Unaudited) ................................................................... 51
THIS PAGE INTENTIONALLY LEFT BLANK
SECTION I - OVERVIEW 1 

Treasury Forfeiture Fund

FY 2021 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.
2 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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 2021 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

Joint case leads to a shutdown of an illegal Bitcoin ATM network that assisted in laundering millions 

of dollars in Bitcoin and Cash

Information included in the following forfeiture article is attributed to: DOJ news release dated July 22, 

2020, entitled “O.C. Man Admits Operating Unlicensed ATM Network that Laundered Millions of Dollars 

of Bitcoin and Cash for Criminals’ Benefit,” a DOJ news release dated May 28, 2021, entitled “Yorba Linda 

Man Sentenced to 2 Years in Prison for Operating Illegal ATM Network that Laundered Bitcoin and Cash 

for Criminals,” and from information provided by the HSI Liaison to TEOAF. 

TEOAF has made substantial investments in tools and technology to aid our federal law enforcement 

partners in combating money laundering using cryptocurrencies like Bitcoin (BTC). BTC is a decentralized 

internet-based currency that can be used to buy goods and services. Bitcoins are stored in virtual digital 

wallets and can be transferred from person to person without going through a financial institution. BTC and 

other virtual currencies have risen in popularity in recent years because people can buy and sell BTC 

anonymously and they are not controlled by a government or bank. 

Between December 2014 and November 2019, Kais Mohammad was the owner and operator of Herocoin, 

an illegal virtual-currency money service business. Mohammad, a former bank employee familiar with 

compliance matters, failed to register his money service business with the Treasury Department’s Financial 

Crimes Enforcement Network (FinCEN). Herocoin was advertised online as a BTC cash exchange service

in amounts up to $25,000. Mohammad would meet customers in and exchange currency for them. He did 

not conduct due diligence and inquire about the source of his customers funds and on many occasions, he 

knew that the source of the funds was proceeds of criminal activities. He later purchased a series of ATM 

style kiosks located in malls, convenience stores and gas stations throughout Los Angeles. Those kiosks 

allowed anyone to use cash to buy BTC or they could sell their BTC for cash minus the charging 

commission that would go to Mohammad.

Mohammad registered Herocoin in 2018 after being contacted by FinCEN. Even after registering, 

Mohammad failed to inquire about his customers source of funds, file suspicious activity and currency 

transaction reports, or develop an anti-money laundering program. As a money service business Mohammad 

was fully aware that he needed to develop and maintain an effective anti-money laundering program, file 

currency transaction reports for exchanges of currency over $10,000, and file suspicious activity reports for

transactions over $2,000 when he had a reason to suspect that the funds came from criminal activity. 
SECTION I - OVERVIEW 3 

This case was investigated by Homeland Security Investigations (HSI), Internal Revenue Criminal 

Investigations (IRS-CI), and the Los Angeles County Sheriff’s Department. Undercover agents met with 

Mohammad over the course of 6 months in 2019 and conducted multiple transactions in person to exchange 

cash for Bitcoin. The agent represented that the cash was proceeds from illegal activity, but Mohammad 

never filed a currency transaction or a suspicious activity report for those transactions. Agents also 

conducted several transactions at a Herocoin ATM kiosk that totaled over $10,000 and again Mohammad 

failed to file a currency transaction report. After Mohammad was arrested, he admitted that his business 

exchanged between $15 million to $25 million dollars. As part of a plea agreement, Mohammad agreed to 

forfeit cash, cryptocurrency, and the 17 BTC ATMs that he used for his business. On May 28, 2021, he was 

sentenced to 24 months imprisonment. 

Figure 1: A Herocoin Bitcoin ATM kiosk located at a store.
4 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

Figure 2: Several seized Bitcoin ATM kiosks.

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

the Treasury

Florida man buys mansion with COVID relief fraud

Information included in the following forfeiture article is attributed to: DOJ news release dated February 8, 

2021, entitled “Seminole County Man Charged With COVID Relief Fraud”; Russon, Gabrielle. “Couple 

buys mansion in Seminole County with fraudulent $7.2 million PPP loan, Feds say.” Orlando Sentinel, 

December 23, 2020. https://www.orlandosentinel.com/business/os-bz-ppp-fraud-house-seminole20201223-cswwnoyx4jedhbcntbpamqleb4-story.html; Associated Press. “Florida man charged in $7 

million coronavirus relief fraud arrested in Croatia,” Tampa Bay Times, April 14, 2021. 

https://www.tampabay.com/news/health/2021/04/14/florida-man-charged-in-7-million-coronavirus-relieffraud-arrested-in-croatia/, and from information provided by the IRS-CI liaison to TEOAF.

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

and Economic Security (“CARES”) Act in March of 2020, which aided Americans suffering from the 

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

to small business 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. 
SECTION I - OVERVIEW 5 

In May 2020, Don Cisternino applied for a PPP loan for his company MagnifiCo and received a total of 

$7.2 million. Cisternino’s business, MagnifiCo, was a New York based business that claimed to offer a 

variety of professional services from software, marketing, consulting, and other services. Cisternino’s PPP 

loan application falsely claimed to have 441 employees and monthly payroll expenses of $2.8 million. In 

reality, MagnifiCo had very few employees, no reported wages to the IRS, and MagnifiCo’s public facing 

company website was inoperable. 

As soon as Cisternino received the $7.2 million, he transferred the funds to his personal account that 

previously held a balance of $89.44. An investigation into Cisternino’s loan application revealed several 

red flags that indicated a fraudulent filing. 108 of his employees were all paid $85,000 a year and had the 

same amount of taxes taken out. This information raised eyebrows because employees usually have 

different tax situations such as being married or single and claim dependents. In other instances, his 

application contained W-2s with wrong or incomplete social security numbers (SSN) and some of the SSNs 

he submitted belonged to people who were no longer living. Additionally, the profit and loss statements he 

submitted to the bank contained basic math errors. Investigators discovered that instead of using the PPP 

loan for the stated purposes of job retention, Cisternino used the $7.2 million on a spending spree of luxury 

items for himself and others. He brought a Mercedes Benz for $251,000, a Lincoln Navigator, and paid off 

the balance on a Maserati. He also spent $3.5 million on a 12-acre estate that has seven bedrooms, a movie 

theater, five-stall horse barn, and a four-car garage. In February 2021, Cisternino was charged with wire 

fraud, aggravated identity theft, and illegal monetary transactions.1 He then fled to Europe and was arrested 

two months later on the border of Croatia and Slovenia. If convicted, Cisternino can face up to more than 

70 years in prison. The real property was forfeited to the United States on June 30, 2021.

Figure 1: Aerial photo of the $3.5 million Florida estate.

1 An indictment is merely a formal change that a defendant has committed one or more violations of federal criminal law, and 

every defendant is presumed innocent unless, and until, proven guilty.
6 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

Figure 2: The estate featured a resort style pool, British style pub, and movie theater.

Figure 3: Aerial photo of the back of the 12-arce estate showing the tennis court, the resort style pool and 

5-stall barn.
SECTION I - OVERVIEW 7 

Figure 4: Photo inside of the 5-stall horse barn.
8 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

United States Secret Service (USSS), Department of Homeland Security

Kidnapping suspects indicted; ransom money returned to the victim. 

Information included in the following forfeiture article is attributed to: DOJ news release dated October 27, 

2020, entitled “Federal Grand Jury Indicts Two Individuals for Kidnapping”; other media press reports2, 

and from information provided by the USSS liaison to TEOAF.

This case highlights TEOAF’s significant investments over the years to enhance the Secret Service’s 

electronics tracking capabilities. Early one September morning, a seventy-five-year-old man, was awakened 

by two strangers and their two children in the house he was renting from a friend. The strangers were 

Matthew Burke and Tabatha Hodges and they told the victim that the house was theirs and that they had 

recently purchased it; but this was far from the truth. Burke and Hodges stayed in the home for several 

hours extorting the victim out of a truck, guns, several household items, and even took his Maserati sports 

car for a joy ride. During the time that Burke and Hodges were in the home, a sleep application on the 

victim’s phone recorded about two hours of the altercation. The recordings revealed the victim’s fear as he 

was being terrorized by Burke and Hodges. After several hours, they took him against his will back to their 

residence that was 45 minutes away. During the trip, the victim tried to escape, but was unsuccessful. Upon 

arriving at Burke and Hodges’ residence, the victim was held for more than eight hours and was only 

released after he wired $250,000 to Hodges’ bank account. As the victim was on the phone with the bank, 

Hodges could be heard in the background giving her account and routing number. After the money was 

deposited, the kidnappers returned the victim to the house, and threatened that his family would be killed if 

he called the police. 

After being released by Burke and Hodges the victim went to a friend’s house and called the police. Secret 

Service agents, along with the FBI, tracked down Burke and Hodges by using the GPS location information 

on the victim’s phone. After arriving at the suspect’s home, Hodges gave law enforcement consent to search 

the premises. Agents found the items that were taken from the victim’s home and his Maserati key in one 

of the suspects’ shoes. Additionally, Secret Service seized Hodges’ bank account, and in June 2021 returned 

the $250,000 as well as the other stolen items back to the victim. Burke and Hodges were charged with 

kidnapping, wire and bank fraud, and several state charges. 

2 The press reports are not cited because they identify the victim by name. TEOAF does not reveal the names of victims in this 

report. 
SECTION I - OVERVIEW 9 

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

Port Entry inspections prevent fraudulent COVID-19 test and counterfeit products from entering 

the US. 

Information was provided by the CBP liaison to TEOAF.

CBP plays a vital role in the front-line enforcement of Food and Drug Administration (FDA) violations. The 

importation of unregulated merchandise can threaten the health and safety of the American people. On January 15, 

2021, CPB officers working at the Seattle Port of Entry were conducting random examinations that arrived at the 

Custom Examination Station. Officers opened a box that was stated on the import manifest as “Doorbell”, but they 

discovered COVID-19 Rapid Test Kits. After further investigation, with the assistance of FDA Compliance Safety 

Officers, they determined that the entire shipment of 10 boxes containing 5002 retail test kits were non-FDA 

compliant and did not meet the provisions of the Emergency Use Authorization established by the FDA. With the 

rise in foreign trade, dishonest companies have made billions in profit shipping and selling unsafe goods in the US. 

The value of the test kits was $95,038 and officers were able to determine that the manufacturer listed the kits as 

“tests that should no longer be used”. Additionally, CBP is tasked to combat the illicit trade of counterfeit and pirated 

goods. The counterfeit market in the US is valued in the billions and can damage the U.S. economy. Based on 

information provided by the FDA, CBP officers examined a suspicious shipment at the El Paso Port of Entry. Upon 

inspection, they found 139 boxes of 3M masks that were manufactured in the Peru and shipped to the U.S. via Hong 

Kong. Working with HSI agents and CBP Import Specialists, CBP officers inspected the masks and determined that 

the masks were counterfeit. They removed the counterfeit masks and sent them to one of TEOAF’s warehouses. As 

of September 2021, TEOAF has over 13 million counterfeit masks in its warehouses. CBP plays a vital role in the 

front-line enforcement of intellectual property rights and violations. 

Figure 1: Non-FDA compliant COVID 19 rapid test kits.
10 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

Figure 2: A box filled with the non-FDA compliant test kits.

Figure 3: The back of the test kits showing the how to use instructions.
SECTION I - OVERVIEW 11 

Figure 4: Counterfeit 3M masks at the EL Paso Port of Entry. 

 

Figure 5: Several pallets of boxes of counterfeit 3M masks with an estimate value of $128,000. 
12 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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

Joint U.S. Coast Guard operations leads to largest illegal narcotic offload in Coast Guard history. 

Information included in the following forfeiture article is attributed to: Martinez, Peter. “U.S. Coast Guard 

offloads record $1.4 billion worth of cocaine and marijuana at Florida port,” CBS News, August 6, 2021. 

https://www.cbsnews.com/news/drug-bust-cocaine-marijuana-port-everglades-florida-coast-guard/ and 

from Coast Guard Multimedia release dated August 5, 2021 entitled “Coast Guard Cutter James conducts 

largest illegal narcotic offload in Coast Guard history worth more than $1.4 billion at Port Everglades,” and 

information provided by the Coast Guard Liaison to TEOAF.

The Coast Guard Cutter James offloaded the largest amount of cocaine and marijuana in Coast Guard 

history at the Port Everglades in Fort Lauderdale, Florida. The record shattering amount was valued at more 

than $1.4 billion dollars and was the outcome of the Coast Guard’s strong international partnership with 

Canada and the Netherlands. The illegal narcotics were seized in 27 interdictions of 10 vessels in 

international waters of the Eastern Pacific off the coasts of Mexico, Central and South America, and the 

Caribbean Sea. “Today's offload is a result of our combined efforts of our inter-agency partners and a 

dedicated international coalition,” said Vice Adm. Steven Poulin, Commander Atlantic Area.

The fight against drug cartels in the Eastern Pacific Ocean requires unity of interagency effort in all phases 

from detection, monitoring and interdictions, to criminal prosecutions by U.S. Attorneys in districts across 

the nation. The Departments of Defense, Justice and Homeland Security assisted in this effort to combat

transnational organized crime. The total amount of seized illegal drugs was approximately 59,700 pounds 

of cocaine and 1430 pounds of marijuana. “Every bale of cocaine on this flight deck that doesn't make it to 

our shores represents lives saved in New York City, Philadelphia, Chicago, Los Angeles or any town in the 

U.S. that's dealing with pandemic levels of drug overdoses this year,” said Captain Todd Vance, the 

commanding officer on the Cutter James.

Figure 1: Approximately 61,130 pounds of illegal narcotics is staged to be offloaded on board Coast 

Guard Cutter James at Port Everglades, Florida. 
SECTION I - OVERVIEW 13 

Figure 2: The Coast Guard Cutter James and Canadian Royal Navy Shawinigan crews pose with 

approximately 59,700 pounds of cocaine and 1,430 pounds at Port Everglades, Florida.

Figure 3: Coast Guard Crewman shrink wrap a pallet of illegal narcotics in Port Everglades, Florida.
14 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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 2021, the Fund expensed just under $13 million in SEF authority as 

compared to $21 million in FY 2020, a decrease of $8 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 2021, the Fund expensed $360.5 million in Strategic Support authority, whereas no Strategic Support

funds were expensed in FY 2020. It should be noted that $455.7million in Strategic Support funding was 

returned to the Fund in FY 2021 from CBP.
SECTION I - OVERVIEW 15 

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 2021 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 $15.9 million in FY 2021 

as compared to $20.3 million in FY 2020. 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 $104.9 million for state and local equitable 

sharing expenses in FY 2021; the Fund did not share with foreign governments in FY 2021. By comparison, 

the Fund expensed $110.4 million for state and local and foreign equitable sharing expenses in in FY 2020; 

The Fund also did not share with foreign governments in FY 2020. 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 2021, 

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

Homeland Security. FY 2021 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. 
16 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

FY 2021 was another robust year with regular revenue of $807.8 million from all sources, as compared with 

FY 2020 revenue of $529.9 million. As we enter FY 2022, 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 2021, the Fund measured performance through the use of 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 in excess of 

$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 2021 is as follows:

Performance Measure

FY 2020 

Actual 

FY 2021 

Target

FY 2021 

Actual

Percent of forfeited cash proceeds resulting from 

high-impact cases

83% 80% 90% 

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 2021 was 90 percent, exceeding 

the new target set in 2011. This compares with our FY 2019 and FY 2020 performance of 91 percent and 

83 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 17 

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, 2021. 

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 2021 and 2020. 

Net Position – End of Year. For FY 2021, 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 $1.4 billion versus $1.2 billion 

at the end of FY 2020. 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 2021, the Fund 

closed with $807.8 million in Gross Non-Exchange Revenues and a total of $529.9 million for FY 2020, 

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 2021, Treasury Forfeiture Fund bureaus earned a total of $15.9 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 $20.3 million during FY 2020. 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 2020 and FY 2021 was restricted by the need to 

meet enacted budget rescissions, sequestrations, and permanent reductions. 

Net Cost of Operations. For FY 2021, the Net Cost of Operations totaled $279.9 million, up from $236.7 

million in FY 2020. 
18 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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

September 30, 2021, investments totaled 4.7 billion as compared with $3 billion invested as of September 

30, 2020. During FY 2021, investment income totaled $1.5 million, as compared to $18.2 million in FY 

2020. This is because interest rates fell from a high of 1.7200% at the beginning of FY 2020 to a low of 

0.0450% at the end of 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 2021, the Fund shared a total 

of $157.1 million with other federal, state and local law enforcement agencies, and $0 with foreign 

countries. This compares with $114.0 million shared with other federal, state and local law enforcement 

agencies during FY 2020 and $0 with foreign countries. 

Victim Restitution. During FY 2021, the Fund paid $180.4 million in restitution to victims as compared 

to $67.7 million in FY 2020. This line item can fluctuate materially from one fiscal year to the next. In FY 

2021, a large single refund amount of $83.5 million was approved by the Department of Justice to be 

returned to victims of a Ponzi scheme fraud perpetuated by Evolution Market Group, a Florida corporation. 

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

2021. Management will continue to emphasize high-impact cases by participating law enforcement bureaus. 

The FY 2021 performance with forfeiture revenue earnings of $807.8 million 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 $279.9 million in FY 2021, up from 

$236.7 million in FY 2020. 

Intra-governmental. This cost category totaled $202.2 million in FY 2021, up from $166.8 million in FY 

2020. 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 2021, 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 2021, expenses of these contracts, 

which comprised over 64% of the total expenses for this line, including other contracts, totaled $64.1 

million, up from $53.9 million expensed in FY 2020. 
SECTION I - OVERVIEW 19 

Statements: Budgetary Resources

As of the end of FY 2021, the Fund has estimated future expenditures and commitments of $590.7 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 

$877.3 million as reported on the SF-133” Report on Budget Execution” for FY 2021. The unobligated 

balance less reductions would result in $286.6 million remaining at the end of FY 2021. 

Balance Sheet

Assets, Liabilities and Net Position

Total assets of the Fund increased in FY 2021 to $5.5 billion, up from $3.4 billion in FY 2020, an increase 

in asset value of 59 percent. 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 $2.1 billion in FY 2021, up from $1.4 billion in FY 2020. During FY 2021, 

total liabilities of the Fund were $4 billion, as compared to the $2.2 billion in FY 2020. 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 $672.3 

million in FY 2021, compared to $205.6 million in FY 2020. In FY 2021, there was increased seizure and 

forfeiture activity involving major cases as compared to FY 2020. 

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

earnings, increased at the end of FY 2021 to a total of $1.4 billion, up from $1.2 billion at the end of FY 

2020. 

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 2021 Audit. The Fund’s independent auditors have given the FY 2021 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. 21-04, Audit Requirements for Federal Financial Statements. 

Summary of Financial Statement Highlights

Net Position. To summarize, Fund management concluded a highly productive FY 2021 “in the black,” 

with the necessary resources to commence the business of the asset forfeiture program for FY 2022. Even 

though there was a rescission of $75 million and a sequestration of $44.8 million, Fund management was 

able to declare Strategic Support funding from FY 2021 operations and will work to recognize the work of 

our participating agencies in the allocation of these resources. 
20 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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 2021 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 2021 and 

2020, the Fund reviewed 11,836 and 15,465 payments totaling $631 million and $501 million respectively, 

and reports less than 0.19% and 0.2% respectively, of 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.

• 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.
SECTION II

INDEPENDENT AUDITOR’S REPORT
THIS PAGE INTENTIONALLY LEFT BLANK
1920 L. Street, NW || Suite 425 || Washington, DC 20036 || (202) 857-1777 || www.gkacpa.com

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

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, 2021 and 2020, 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.

Management’s Responsibility for the Financial Statements

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

accordance with U.S. generally accepted accounting principles; this includes 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.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We 

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

America; 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. 21-04, Audit Requirements for Federal Financial 

Statements. Those standards and OMB Bulletin No. 21-04 require that we plan and perform the audit 

to obtain reasonable assurance about whether the financial statements are free from material 

misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures 

in the financial statements. The procedures selected depend on the auditor’s judgment, including the 

assessment of the risks of material misstatement of the financial statements, whether due to fraud or 

error.

 Certified Public Accountants 

& Consultants

 

Member of the American Institute of Certified Public Accountants
22 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

In making those risk assessments, the auditor considers internal control relevant to the Fund’s 

preparation and fair presentation 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. Accordingly, we express no such opinion. An audit also includes 

evaluating the appropriateness of accounting policies used and the reasonableness of significant 

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

financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 

our audit opinion.

Opinion on 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, 2021 and 

2020, 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. 

Other Matters

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, 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 auditing standards generally accepted in 

the United States of America, 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

Our audits were conducted for the purpose of forming an opinion on the basic financial statements 

taken as a whole. The information in the Message from the Director, and Section V: Other 

Accompanying Information is presented for the purposes of additional analysis and is not a required 

part of the basic financial statements. Such information has not been subjected to the auditing 

procedures applied in the audits of the basic financial statements, and accordingly, we do not express 

an opinion or provide any assurance on it.
 SECTION II –INDEPENDENT AUDITOR’S REPORT 23

Other Reporting Required by Government Auditing Standards

Internal Control over Financial Reporting

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

September 30, 2021, 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.

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 may exist that have not been identified.

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, 2021 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. 21-04. 
24 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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 29, 2021 
SECTION III 

FINANCIAL STATEMENTS AND NOTES
THIS PAGE INTENTIONALLY LEFT BLANK
SECTION III - FINANCIAL STATEMENTS AND NOTES 25 

Department of the Treasury Forfeiture Fund

BALANCE SHEETS

As of September 30, 2021, and 2020 

(Dollars in thousands) 

2021 2020 

Assets:

Intragovernmental:

 Fund balance with Treasury (Note 21) $ - $ 34,430 

 Investments and related interest receivable (Note 3) 4,707,570 2,990,759 

 Total Intragovernmental 4,707,570 3,025,189 

Other than intragovernmental/Public:

 Cash and other monetary assets (Note 5) 592,460 327,747 

 Accounts Receivable 1,029 2,734 

 593,489 330,481 

 Forfeited property (Note 6) 

 Held for sale, net of mortgages, liens and claims 156,684 86,620 

 To be shared with federal, state or local, or foreign governments 438 327

 Total forfeited property, net of mortgages, liens and claims 157,122 86,947 

 

Total Assets $5,458,181 $3,442,617 

Liabilities:

 Intragovernmental:

 Accounts payable (Note 21) $ 416,646 $ 81,333 

 Total Intragovernmental 416,646 81,333 

Other than intragovernmental/Public:

 Seized currency and other monetary instruments (Note 8) 3,371,198 2,020,170 

 Distributions payable (Note 10) 

 State and local agencies and foreign governments 91,793 32,601 

 Accounts payable 6,742 4,687 

 Deferred revenue from forfeited assets 157,122 86,947 

Total Liabilities 4,043,501 2,225,738 

Commitments and contingencies (Note 15) - - 

Net Position:

 Cumulative results of operations (Note 11) 1,414,680 1,216,879 

Total Liabilities and Net Position $5,458,181 $3,442,617 

The accompanying notes are an integral part of these financial statements.
26 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

Department of the Treasury Forfeiture Fund

STATEMENTS OF NET COST

For the years ended September 30, 2021 and 2020 

(Dollars in thousands)

2021 2020 

Program: 

ENFORCEMENT

 Intragovernmental: 

 Seizure investigative costs and asset management $ 121,390 $ 91,592 

 Other asset related contract services 22,125 7,374 

 Data systems, training and others 58,653 67,789 

 Total Intragovernmental 202,168 166,755 

 With the Public:

 National contract services seized property and other 64,132 53,933 

 Joint operations 13,628 16,017 

 Total with the Public 77,760 69,950 

Net Cost of Operations (Note 16) $ 279,928 $ 236,705 

The accompanying notes are an integral part of these financial statements.
SECTION III - FINANCIAL STATEMENTS AND NOTES 27 

Department of the Treasury Forfeiture Fund

STATEMENTS OF CHANGES IN NET POSITION

For the years ended September 30, 2021 and 2020 

(Dollars in thousands)

 2021 2020 

Net Position – Beginning of Year $ 1,216,879 $ 1,126,138 

Financing Sources (Non-Exchange Revenues): 

 Intragovernmental

 Investment interest income 

 Public

 1,520 18,193 

 Forfeited currency and monetary instruments 607,733 409,893 

 Sales of forfeited property net of mortgages and claims 162,690 64,649 

 Proceeds from participating with other federal agencies 15,903 20,306 

 Value of property transferred in equitable sharing 2,294 1,498 

 Payments in lieu of forfeiture, net of refunds (Note 19) 8,720 10,731 

 Reimbursed costs 6,467 4,270 

 Other 2,509 358 

 Total Gross Non-Exchange Revenues 807,836 529,898 

Less: Equitable Sharing

 Intragovernmental

 Federal (52,160) (3,573) 

 Public

 State and local agencies (104,921) (110,398) 

 Foreign countries - - 

 Victim restitution (180,387) (67,687) 

 (285,308) (178,085) 

 Total Equitable Sharing (337,468) (181,658) 

Total Non-Exchange Revenues, Net 470,368 348,240 

Transfers –In (Out) 

 Intragovernmental

 Strategic support (Note 13) 95,181 667 

 Secretary’s enforcement fund (Note 14) (12,820) (21,461) 

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

Total Transfers-In (Out) 7,361 (20,794) 

Total Financing Sources - Net 477,729 327,446 

Net Cost of Operations (279,928) (236,705) 

Net Results of Operations 197,801 90,741 

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

The accompanying notes are an integral part of these financial statements.
28 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

Department of the Treasury Forfeiture Fund

STATEMENTS OF BUDGETARY RESOURCES

For the years ended September 30, 2021 and 2020 

(Dollars in thousands)

2021 2020 

Budgetary Resources:

 

 Unobligated balance from prior year budget authority, net 

 (Note 17) 

$ 1,180,712 $ 641,990 

 Budget authority 696,035 537,504 

 

Total Budgetary Resources

 

$ 1,876,747 $ 1,179,494 

Status of Budgetary Resources:

 Obligations incurred $ 999,476 $ 488,041 

 Unobligated balances – apportioned 

 Unobligated balances – unapportioned 

$ 855,460 

 21,811 

$ 674,095 

 17,358 

 Unobligated balances – end of year (Note 17) $ 877,271 $ 691,453 

Total Budgetary Resources $ 1,876,747 $ 1,179,494 

Outlays, net

 

 

 Net Outlays $ 177,106 $ 437,049 

The accompanying notes are an integral part of these financial statements.
SECTION III - FINANCIAL STATEMENTS AND NOTES 29 

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.
30 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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 2020 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

The majority 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. 
SECTION III - FINANCIAL STATEMENTS AND NOTES 31 

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. 
32 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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, 

2021 and 2020. 
SECTION III - FINANCIAL STATEMENTS AND NOTES 33 

• 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.
34 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

• 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 

2022. 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).
SECTION III - FINANCIAL STATEMENTS AND NOTES 35 

• 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, 2021 and 2020, 

respectively (dollars in thousands):

Entity Assets

Description Cost Unamortized 

Discount

Investment, 

Net

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 

September 30, 2020 

Treasury Forfeiture Fund - 

35 days 0.075% U.S. Treasury Bills $1,218,277 ($89) $1,218,188 

Interest Receivable 37 

Total Investment, Net, and Interest Receivable $1,218,225 

Fair Market Value $1,218,192 
36 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

Non-entity Assets

Description Cost Unamortized 

Discount

Investment, 

Net

September 30, 2021 

Treasury Forfeiture Fund – 

Seized Currency Suspense Account

28 days 0.045% U.S. Treasury Bills $2,882,913 ($101) $2,882,812 

Fair Market Value $2,882,762 

September 30, 2020 

Treasury Forfeiture Fund – 

Seized Currency Suspense Account

35 days 0.075% U.S. Treasury Bills $1,772,663 ($129) $ 1,772,534 

Fair Market Value $ 1,772,539 

Note 4: Analysis of Non-Entity Assets

The following schedule presents the non-entity assets as of September 30, 2021 and 2020, respectively 

(dollars in thousands):

2021 2020

Seized currency:

Intragovernmental Investments (Note 3) $ 2,882,812 $ 1,772,534 

Cash and other monetary assets (Note 5) 488,386 247,636 

Total Non-Entity Assets 3,371,198 2,020,170 

Total Entity Assets 2,086,983 1,422,447 

Total Assets $ 5,458,181 $ 3,442,617 
SECTION III - FINANCIAL STATEMENTS AND NOTES 37 

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 $104.1 million and $80.1 million as of September 

30, 2021 and 2020, 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 $488.4 million and $247.6 

million as of September 30, 2021 and 2020, respectively.

Note 6: Forfeited Property/Deferred Revenue

The following summarizes the components of forfeited property (net), as of September 30, 2021 and 

2020, respectively (dollars in thousands):

2021 2020 

Held for sale $ 183,207 $ 91,203 

To be shared with federal, State or local, or foreign government 438 327 

 Total forfeited property (Note 7) 183,645 91,530 

Less: Allowance for liens and claims (26,523) (4,583) 

Total forfeited property, net $ 157,122 $ 86,947 
38 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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 39 

Note 7: FY 2020 Analysis of Changes in Forfeited Property and Currency 

The following schedule presents the changes in the forfeited property and currency balances from October 1, 2019 to September 30, 2020. 

(Dollar value is in thousands)

10/1/19 Financial 

Statement Balance Adjustments

10/1/19 

Carrying Value Forfeitures Deposits/Sales Disposals/Transfers

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

Currency $61,393 - $- - $61,393 - $397,807 - $(394,056) - $ (105) - 

Other Monetary 

Instruments 2,565 - - - 2,565 - 3 - - - - - 

Subtotal 63,958 - - - 63,958 - 397,810 - (394,056) - (105) - 

Real Property 62,477 173 12,101 - 74,578 173 18,908 48 (34,474) (78) (1,384) (2) 

General Property 21,407 11,914 25,915 - 47,322 11,914 44,361 20,874 (9,894) (1,568) (2,532) (903) 

Vessels 2,066 98 764 - 2,830 98 2,566 234 (733) (30) (25) (1) 

Aircraft 414 8 290 - 704 8 6,295 18 (104) (3) - - 

Vehicles 11,479 2,332 10,437 - 21,916 2,332 41,571 9,161 (24,067) (5,712) (2,041) (177) 

Subtotal 97,843 14,525 49,507 - 147,350 14,525 113,701 30,335 (69,272) (7,391) (5,982) (1,083) 

Grand Total $161,801 14,525 $49,507 - $211,308 14,525 $511,511 30,335 $(463,328) (7,391) $(6,087) (1,083) 

Victim Restitution Destroyed

Other

Adjustments Value Change 2020 Carrying Value

Fair Market Value

Adjustment 

9/30/20 Financial 

Statement Balance

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

Currency $- - $- - $12,868 - $(339) - $77,568 - $- - $77,568 - 

Other Monetary 

Instruments - 

- 

- 

(25) - - - 2,543 - - - 2,543 - 

Subtotal - - - - 12,843 - (339) - 80,111 - - - 80,111 - 

Real Property - - - - (7,494) 1 770 - 50,904 142 (7,483) - 43,421 142 

General Property - - (20,678) (10,998) 8,279 (1,207) (5,591) - 61,267 18,112 (33,431) - 27,836 18,112 

Vessels - - (129) (94) 102 (14) (6) - 4,605 193 (530) - 4,075 193 

Aircraft - - (3,140) (5) - - - - 3,755 18 (65) - 3,690 18 

Vehicles - - (3,512) (1,479) (9,786) (983) (522) - 23,559 3,142 (11,051) - 12,508 3,142 

Subtotal - - (27,459) (12,576) (8,899) (2,203) (5,349) - 144,090 21,607 (52,560) - 91,530 21,607 

Grand Total $- - $(27,459) (12,576) $3,944 (2,203) $(5,688) - $224,201 21,607 $(52,560) - $171,641 21,607 
40 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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 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 41 

Note 8: FY 2020 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, 2019 to September 30, 2020. (Dollar value is in thousands)

10/1/19 Financial

Statement Balance Seizures

 

Remissions

 

Forfeitures Adjustments Value 

Changes 

9/30/20 Financial 

Statement Balance

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

.

Value No.

Currency $1,639,822 - $1,329,437 - $(79,202) - $(397,807) - $(487,487) - $(1,373) - $2,003,390 - 

Other 

Monetary 

Instruments 12,754 - 13,436 - - - (3) - (9,407) - - - 16,780

- 

Subtotal 1,652,576 - 1,342,873 - (79,202) - (397,810) - (496,894) - (1,373) - 2,020,170 - 

Real Property 202,835 380 195,516 109 (18,836) (30) (18,908) (48) 11,357 (34) (7,987) - 363,977 377

General 

Property

385,432 31,854 299,733 27,827 (31,651) (4,621) (44,361) (20,874) (9,091) (1,955) 11,172 - 611,234 32,231

Vessels 94,197 152 6,247 255 (956) (14) (2,566) (234) (489) (12) (674) - 95,759 147

Aircraft 20,753 44 8,866 26 (1,859) (6) (6,295) (18) (120) (10) (45) - 21,300 36

Vehicles 56,533 6,491 131,779 15,074 (63,125) (4,644) (41,571) (9,161) (19,842) (1,644) (259) - 63,515 6,116

Subtotal 759,750 38,921 642,141 43,291 (116,427) (9,315) (113,701) (30,335) (18,185) (3,655) 2,207 - 1,155,785 38,907

Grand Total $2,412,326 38,921 $1,985,014 43,291 $(195,629) (9,315) $(511,511) (30,335) $(515,079) (3,655) 834 - $3,175,955 38,907
42 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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 2021 permanently cancelled 

$75 million. This permanent reduction or cancellation means that the amount will never be used for its 

intended purposes. In fiscal year 2020, there was not a permanent reduction or cancellation. The 

cancelled funds for fiscal year 2021 were transferred to the General Fund on September 30, 2021. 

Note 10: Distributions Payable

Distributions Payable (state and local agencies and foreign governments) amounted to $91.8 million

and $32.6 million as of September 30, 2021 and 2020, 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 final stages of approval on September 30, 2021 and 2020, 

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, 2021 

and 2020, respectively (dollars in thousands):

2021 2020 

Retained Capital $ 829,348 $ 713,889 

Unliquidated Obligations 387,531 412,249 

Net Results of Operations 197,801 90,741 

 $ 1,414,680 $ 1,216,879 

Unliquidated Obligations

The following summarizes the components of unliquidated obligations as of September 30, 2021 and 

2020 respectively (dollars in thousands):

2021 2020 

Equitable Sharing $ 266,582 $ 216,863 

Mandatory 120,949 195,386 

 $ 387,531 $ 412,249 
SECTION III - FINANCIAL STATEMENTS AND NOTES 43 

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 $361 million in fiscal year 2021, while no amount was distributed in fiscal 

year 2020. 

The following summarizes Strategic Support payments, net of Transfers-In for the years ended

September 30, 2021 and 2020, respectively, (dollars in thousands):

 2021 2020 

Transfers - Out $ (360,531) $ - 

Transfers - In

 

455,712 667 

Total $ 95,181 $ 667 

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. 

Amounts distributed for federal law enforcement purposes of Treasury law enforcement organizations 

amounted to $12.8 million and $21.5 million in fiscal years 2021 and 2020, respectively.

The following summarizes Secretary’s Enforcement Fund payments, net of Transfers-In for the years 

ended September 30, 2021 and 2020, respectively, (dollars in thousands):

 2021 2020 

Transfers - Out $ (14,677) $ (22,830) 

Transfers - In 1,857 1,369 

Total $ (12,820) $ (21,461) 
44 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

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, 2021, the Fund had future expenditures of $590.7 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 in light of 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.

The Fund has two litigation items to report concerning the Fund for U.S. Victims of State Sponsored 

Terrorism (USVSST Fund) that could have a future material impact. The civil lawsuits were filed on 

September 16, 2020 and May 24, 2021 against the Departments of Justice and Treasury, and against

the USVSST Fund. Both lawsuits seek, among other things, to have the court determine that legislation 

Congress passed on November 21, 2019 (‘The Clarification Act’), is retroactive to December 2015.

The ‘Clarification Act’ increased the mandatory percentage of deposits into the USVSST Fund from

eligible civil forfeitures, fines, and penalties from 50% to 75%. The additional 25% translates into 

approximately $228 million in previously forfeited funds which likely have been spent in accordance 

with Title 31 U.S.C. 9705. The lawsuits also seek other remedies based on claims pertaining to DOJ’s 

management of the USVSST Fund and distributions from it. In one matter, the government prevailed 

at the district court level and the case is now under appeal. In the latter-filed suit, the case is still in the 

motion to dismiss stage in district court. The government is vigorously contesting the lawsuits. The 

likelihood of loss is reasonably possible and ranges from $0 to $228 million. 
SECTION III - FINANCIAL STATEMENTS AND NOTES 45 

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:

 

2021 2020 

Gross Costs $ 279,928 $ 236,705 

Earned Revenues - - 

Net Costs $ 279,928 $ 236,705 

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 2021 and 2020 consist of 

the following (in thousands):

 

2021 2020 

Recoveries of Prior Year Unpaid Obligations $ 33,811 $ 32,358 

Other Changes in Unobligated Balance 455,448 - 

Total $ 489,259 $ 32,358 

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, 2021 unobligated balance. 
46 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

The following shows anticipated reductions to the unobligated balances of budget authority resulting 

from these future expenditures and commitments for fiscal years 2021 and 2020. 

2021 2020 

Unobligated balance $ 877,271 $ 691,453 

Future expenditures (Note 15):

Refund and remissions (421,329) (386,604) 

Equitable sharing (169,385) (126,161) 

Total future expenditures (590,714) (512,765) 

Commitments (Note 15) - - 

Total reductions to unobligated balance (590,714) (512,765) 

Unobligated balance net of future expenditures, and 

commitments $ 286,557 $ 178,688 

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, 2021 and 2020, respectively (dollars in thousands):

2021 2020 

Payments in Lieu of Forfeiture $ 9,430 $ 11,713 

Refunds (710) (982) 

Total $ 8,720 $ 10,731 
SECTION III - FINANCIAL STATEMENTS AND NOTES 47 

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, 2021 

Federal NonFederal Total 

Net Cost $202,168 $77,760 $279,928 

Increase/(decrease) in assets: 

 Investments and interest receivables 1,716,811 - 1,716,811 

 Cash, foreign currency, and other monetary assets - 263,180 263,180 

 Taxes, interest, and other receivables, net - (1,704) (1,704) 

 Other assets - 71,707 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 

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 
48 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

September 30, 2020 

IntraGovernmentalIntraDepartmental With the 

Public

Total 

Net Cost $110,221 $56,534 $69,950 $236,705 

(Increase)/decrease in assets: 

 Investments - (371) - (371) 

(Increase)/decrease in liabilities:

 Accounts payable 

 

 (2,443) 

 

(5,232) (6,335) 

 

 (14,010) 

 Other liabilities 10,981 298 - 11,279 

Other financing sources

 Transfers out (in) without reimbursement

 

 14,589 

 

 6,205 - 20,794 

Total components of Net Cost not part of Net Outlays 23,127 

 

900 

 

(6,335) 17,692 

Components of Net Outlays that are not part of Net 

Cost:

 

 Other - 372 182,280 182,652 

Total components of Net Outlays that are not part of 

Net Costs - 372 

 

182,280 

 

 182,652 

Net Outlays $133,348 $57,806 $245,895 $437,049 

Note 21: Fund Balance with Treasury 

An over investment of funds on September 30, 2021, resulted in a negative fund balance with Treasury. 

Consequently, an adjustment in the amount of $38,731 million was made to the Fund balance with 

Treasury and Intragovernmental Accounts payable line items.
SECTION IV

REQUIRED SUPPLEMENTAL INFORMATION

(UNAUDITED)
 

THIS PAGE INTENTIONALLY LEFT BLANK
SECTION IV – REQUIRED SUPPLEMENTAL INFORMATION (UNAUDITED) 49 

Intragovernmental Amounts – Assets (Dollars in thousands) 2021 2020 

Partner Agency

Fund 

Balance 

with 

Treasury Investments

Fund 

Balance 

with 

Treasury Investments

Treasury - - $ - $ 34,430 $ - 

Bureau of the Fiscal 

Service - 4,707,570 - 2,990,759 

Totals $ - $ 4,707,570 $ 34,430 $ 2,990,759 

Intragovernmental Amounts – Liabilities (Dollars in thousands) 

Partner Agency

2021 

Accounts 

Payable 

2020 

Accounts 

Payable 

Treasury Bureau of the Fiscal 

Service (Fund Balance with 

Treasury) $ 38,731 $ - 

Department of Justice - 16,389 

Department of Homeland Security 345,290 47,815 

Departmental Offices 850 614 

Treasury Office of the Inspector 

General 137 134 

 

Tax and Trade 1,022 870 

Financial Crimes Enforcement 

Network 6,728 - 

Internal Revenue Service 23,888 15,511 

Totals $ 416,646 $ 81,333 

Intragovernmental Amounts – Revenues and Costs (Dollars in thousands)

2021 2020 

Budget Functions

Cost to Generate 

Exchange 

Intragovernmental 

Revenue

Costs to Generate 

Non-Exchange 

Intragovernmental 

Revenue

Cost to Generate 

Exchange 

Intragovernmental 

Revenue

Costs to Generate 

Non-Exchange 

Intragovernmental 

Revenue

Administration of 

Justice $ - $ 202,168 $ - $ 166,755 
50 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

Intragovernmental Amounts – Non-exchange Revenue (Dollars in thousands): 

Partner Agency

2021 2020 

Transfers 

In

Transfers

Out

Net

Transfers

In (Out)

Transfers

In

Transfers

Out

Net

Transfers

In (Out)

Department of Homeland 

Security $ 457,319 $ (345,788) $ 111,531 $ 1,163 $ (15,751) $ (14,588) 

Internal Revenue Service 250 (21,605) (21,355) 872 (6,728) (5,856) 

Tax and Trade - (1,087) (1,087) - (350) (350) 

Financial Crimes Enforcement 

Network - (6,728) (6,728) - - - 

Department of Justice - - - - - - 

General Fund - (75,000) (75,000) - - - 

$ 457,569 $ (450,208) $ 7,361 $ 2,035 $(22,829) $ (20,794) 
SECTION V

OTHER ACCOMPANYING INFORMATION

(UNAUDITED)
THIS PAGE INTENTIONALLY LEFT BLANK
SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 51 

TREASURY FORFEITURE FUND

Equitable Sharing Summarized by State and U.S. Territories

For the Year Ended September 30, 2021 

(Dollars in Thousands)

(Unaudited)

State/U.S. Territories Currency Value Property Value

Alabama $ 326 $ 48 

Alaska - - 

Arizona 1,318 523 

Arkansas 1,326 403 

California 7,706 84 

Colorado 711 - 

Connecticut 246 - 

D.C. Washington 3 - 

Delaware 143 - 

Florida 1,321 210 

Georgia 287 149 

Guam - - 

Hawaii 219 - 

Idaho 9 - 

Illinois 6,119 82 

Indiana 1,800 28 

Iowa 42 - 

Kansas - 6 

Kentucky 302 24 

Louisiana 1,116 34 

Maine 18 - 

Maryland 404 - 

Massachusetts 553 99 

Michigan 1,184 307 

Minnesota 577 - 

Mississippi 1,069 - 

Missouri 1,477 35 

Montana - - 

Nebraska 3,427 42 

Nevada 244 234 

New Hampshire 378 - 

New Jersey 553 165 

New Mexico -22 - 

New York 2,051 161 

North Carolina 6,774 7 

North Dakota 115 8 

Northern Marianas - - 

Ohio 908 - 

Oklahoma 506 13 

Oregon 1,274 9 

Pennsylvania 690 373 

Puerto Rico 1,291 54 

Rhode Island 57 - 

South Carolina 1,471 38 

South Dakota 26 - 

Tennessee 1,150 149 

Texas 7,419 1,490 

Subtotal carried forward $56,588 $4,775 
52 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

TREASURY FORFEITURE FUND

Equitable Sharing Summarized by State and U.S. Territories

For the Year Ended September 30, 2021 

(Dollars in Thousands)

(Unaudited)

State/U.S. Territories Currency Value Property Value

Subtotal brought forward 56,588 4,775 

Utah 106 57 

Vermont 9 - 

Virgin Islands 876 - 

Virginia 142 - 

Washington 113 45 

West Virginia 3 5 

Wisconsin 4 4 

Wyoming 16 - 

Totals $57,857 $ 4,886

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.
SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 53 

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, 2021 

(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 96 

administrative seizures over $100 thousand over 120 days old totaling $25,271 that had not been 

transferred from the Seized Currency Suspense Account to the Treasury Forfeiture Fund as of the end of 

FY 2021. 
54 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

TREASURY FORFEITURE FUND

Analysis of Revenue and Expenses and Distributions

For the Year Ended September 30, 2021 

(Dollars in Thousands) 

Revenue, Expenses and Distributions by Asset Category:

Revenue 

Expenses and 

Distributions

Vehicles $ 32,864 $ 96,862 

Vessels 9,129 123,412 

Aircraft 9,129 39,759 

General Property 29,213 391,716 

Real Property 102,243 15,342 

Currency and monetary instruments 627,450 142,937 

810,028 810,028 

Less:

 Mortgages and claims (1,482) (1,482) 

 Refunds (710) (710) 

Add: 

 Excess of net revenues and financing sources over total program 

expenses

 - - 

Total $807,836 $ 807,836 

Revenue, Transfers, Expenses and Distributions by Type of 

Disposition: 

Sales of property and forfeited currency and monetary instruments $ 466,093 $ 153,904 

Reimbursed storage costs 6,467 81,003 

Assets shared with state and local agencies 104,921 104,921 

Assets shared with other federal agencies 52,160 52,160 

Assets shared with foreign countries - - 

Victim Restitution 180,387 180,387 

Destructions - 97,204 

Pending disposition - 140,449 

810,028 810,028 

Less:

 Mortgages and claims (1,482) (1,482) 

 Refunds (710) (710) 

Add: 

 Excess of net revenues and financing sources over total program 

expenses

 - - 

Grand Total $ 807,836 $ 807,836 

The revenue amount of $807,836 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. 
SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 55 

TREASURY FORFEITURE FUND

Information Required by 31 U.S.C. 9705(f)

For the Year Ended September 30, 2021 

(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, 2021, the Fund had forfeited 

property held for sale of $183,207. 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. At September 30, 2021, there was 

$104,074 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 $57,857 

and total property transferred was $4,886 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, 2020 which became 

the beginning balance for the Fund on October 1, 2020, as reported in the audited financial 

statements is $1,216,879. 
56 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2021

TREASURY FORFEITURE FUND

Information Required by 31 U.S.C. 9705(f)

For the Year Ended September 30, 2021 

(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 $1,482. 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: 

Amount

State and local $104,921 

Foreign countries - 

Other federal agencies 52,160 

Victim restitution 180,387 

 

(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 $279,928. 

The amount of seized currency not on deposit in the Fund’s suspense account at September 30, 

2021, was $488,386. This amount includes some funds in the process of being deposited at yearend, cash seized in August or September 2021 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 $877,271 for 

fiscal year 2021. A permanent rescission of $75 million was declared for FY 2021. 
SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 57 

TREASURY FORFEITURE FUND

Information Required by 31 U.S.C. 9705(f)

For the Year Ended September 30, 2021 

(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 $ 232,640 54 seizures

IRS 1,180,126 44 seizures

U.S. Secret Service 254,093 30 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 $25,271. This is also documented on page 53. 

 

(F) The balance of the Fund at the end of the current fiscal year.

The total net position of the Fund at September 30, 2021, as reported in the audited financial 

statements is $1,414,680. 

(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 2022 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 54.