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Treasury Forfeiture Fund

ACCOUNTABILITY REPORT 

Fiscal Year 2020

DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C. 

 Member of the American Institute of Certified Public Accountants

 

Certified Public Accountants 

& Consultants

 
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Message from the Director

I am pleased to present the fiscal year (FY) 2020 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 2020 was another challenging year whereas $30.3 million was sequestered as part of the governmentwide sequestration order. In terms of overall revenue, FY 2020 was another highly successful year for the law 

enforcement bureaus participating in the Treasury Forfeiture Fund, with total gross non-exchange revenues of 

$530 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 2020, our member bureaus exceeded the target with a 

performance level of 83 percent. 

In FY 2020, 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 was also able to support our member agencies’ efforts to combat criminal activities 

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

fraud schemes, the sales of counterfeit pharmaceuticals online and via Darknet marketplaces, and business email 

compromise and network intrusion. Due to the unanticipated nature of Covid-19, 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 2021. 

 

November 16, 2020 

John Farley, Director 

 Treasury Executive Office for Asset Forfeiture 

 U.S. Department of the Treasury
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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 ..............................................................................................9 

Program Performance ........................................................................................................10

Financial Statement Highlights ..........................................................................................12

Section II: Independent Auditor’s Report

Independent Auditor’s Report ............................................................................................17 

Section III: Financial Statements and Notes 

Financial Statements: 

Balance Sheets .............................................................................................................21

Statements of Net Cost.................................................................................................22

Statements of Changes in Net Position ........................................................................23

Statements of Budgetary Resources.............................................................................24

Notes to Financial Statements ......................................................................................25

Section IV: 

Required Supplemental Information (Unaudited) ...................................................................45

Section V: 

Other Accompanying Information (Unaudited) .......................................................................47
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SECTION I - OVERVIEW 1 

Treasury Forfeiture Fund 

FY 2020 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 28 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 2020 

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 2020 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 

Airbus agrees to pay billions in global penalties after investigation reveals worldwide bribery 

scheme. Results in $55 million forfeiture. 

Information included in the following forfeiture article is attributed to: DOJ news release dated January 31, 2020 

entitled: “Airbus Agrees to Pay over $3.9 Billion in Global Penalties to Resolve Foreign Bribery and ITAR Case”; 

and from information provided by the HSI Liaison to TEOAF. 

Airbus, a France based aerospace company, entered into a three-year deferred prosecution agreement (DPA) 

with the Department of Justice resulting in a $55 million forfeiture. The DPA was a part of a $4 billion 

global settlement with the United States, France, and the United Kingdom to resolve charges that Airbus 

violated the anti-bribery provisions of the Foreign Corrupt Practice Act (FCPA). Along with the anti-bribery 

charges, Airbus was charged with conspiracy to violate the Arms Export Control Act (AECA) and the 

International Traffic in Arms Regulation (ITAR). The conclusion of the case was the largest bribery 

resolution in FCPA history. 

Homeland Security Investigations began looking into Airbus after they discovered possible fraud, bribery, 

and corruption. During the investigation, HSI was able to determine that Airbus engaged in and facilitated 

a scheme to offer and pay bribes to persons that had influence or to foreign officials to obtain improper 

business advantages. Airbus engaged in this scheme to win business from state owned entities and private 

business. In China, Airbus used third parties to conceal payments intended to be used for bribes to 

government officials. Those Chinese officials were connected to the approval of the purchase and sale of 

Airbus aircraft to state- owned and state-controlled airlines in China. Airbus bribed officials and decision 

makers in various countries around the globe to include Malaysia, Taiwan, Ghana, Sri Lanka and Indonesia. 

Additionally, the HSI New York Counter Proliferation Task Force discovered fraud that violated the ITAR. 

Under the AECA and the ITAR, the U.S. Department of State’s Directorate of Defense Trade Controls 

(DDTC) regulates the export and import of U.S. defense services and articles and requires companies to 

obtain the correct licenses and DDTC approval to export overseas. In Airbus’ applications to sell U.S. 

defense services and articles to foreign governments, they knowingly violated the ITAR by failing to 

provide accurate information to the DDTC on commissions paid to third party brokers who were hired to 

secure the sale to foreign armed services. HSI New York’s Special Agent in Charge said of the case, 

“Airbus’s fraud and bribery in commercial aircraft transactions strengthened corrupt airlines and bad actors 

worldwide, at the expense of straightforward enterprises. Additionally, the bribery of government officials, 

specifically those involved in the procurement of U.S. military technology, posed a national security threat 
SECTION I - OVERVIEW 3 

to both the U.S. and its allies. The global threats facing the U.S. have never been greater than they are 

today, and HSI New York is committed to working with our federal and international partners to assure 

sensitive U.S. technologies are not unlawfully and fraudulently acquired. As this investigation reflects, 

national security continues to be a top priority not just for Department of Homeland Security, but for HSI 

New York.”

On January 31, 2020, the DPA was announced in U.S. District Court for the District of Columbia between 

Department of Justice and Airbus. As part of the DPA, Airbus agreed to pay the United States Government 

$527 million for FCPA and ITAR violations. They also agreed to a civil forfeiture of approximately $55 

million to HSI for violations tied to the ITAR related conduct. At the DPA announcement, the U.S. Attorney 

of the District of Columbia, Jessie K. Liu, said “This case exemplifies the ability of our prosecutors and law 

enforcement to work with our foreign counterparts to ensure that corruption around the world is prevented 

and punished at the highest levels.”

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

the Treasury 

HSBC pays penalty after helping to hide over $1 Billion in U.S. clients’ assets from the IRS.

Information included in the following forfeiture article is attributed to: DOJ news release dated December 10, 2019 

entitled “Justice Department Announces Deferred Prosecution Agreement with HSBC Private Bank (Suisse) SA”; 

Voreacos, David, and Jonathan Levin. “HSBC Agrees to Pay $192 Million to Resolve U.S. Tax Probe.” Bloomberg, 

December 10, 2019. https://www.bloomberg.com/news/articles/2019-12-10/hsbc-agrees-to-pay-192-million-toresolve-u-s-tax-probe. ; and from information provided by the IRS-CI Liaison to TEOAF. 

HSBC Switzerland, a private bank headquartered in Geneva, entered into a deferred prosecution agreement 

(DPA) with the Department of Justice in the U.S. District Court for the Southern District of Florida. HSBC 

admitted to conspiring with their U.S. account holders to hide their assets abroad from the IRS and evade 

U.S. taxes. Don Fort, Chief of IRS-CI, said of the case, “Taxpayers and financial institutions each have the 

most basic responsibilities to pay taxes and report suspicious activity regarding financial transactions. When 

financial institutions devise a massive tax evasion scheme and actually facilitate the activity, they not only 

must be held accountable, they must take actions to ensure this behavior will not happen again.” 

From 2000 to 2010, HSBC Switzerland worked with third party and wholly owned fiduciaries, bank 

employees, and approximately 720 U.S. clients to conceal up to $1.26 billion in undeclared assets. The 

bank used a variety of methods to include using code names, numbered accounts, and hold-mail agreements. 

They used third parties to serve as directors or trustees of shell companies in tax haven countries to hide the 

true owners of the accounts and relied on Swiss bank secrecy to prevent disclosure to U.S. authorities. 

Throughout the ten years, HSBC Switzerland bankers would come to the U.S. to meet with and recruit new 

clients who wanted to hide income and assets. In 2008, the U.S. began to crackdown on offshore tax evasion 

and HSBC started to close the undeclared accounts, but some bankers assisted in closing those accounts in 

a way that still concealed those assets. After an internal investigation in 2008, HSBC contacted the U.S. 

Department of Justice and reported the misconduct. 

According to the terms of the DPA, HSBC Switzerland agreed to pay $192.35 million in three parts. The 

first part was $60.6 million to the IRS for restitution on unpaid taxes for the undeclared assets. Second, they 

forfeited $71.8 million, which represented the gross fees they charged clients, and finally HSBC 

Switzerland agreed to pay a $59.9 million penalty. The DPA also required that HSBC cooperate fully with 

the Tax Division and the IRS. The DPA did not provide any protection for any of the individuals involved. 

At the announcement of the DPA, Don Fort stated “The integrity of our nation’s tax system depends on 
4 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

voluntary compliance and fair, consistent enforcement of the law. We owe it to all Americans to hold 

financial institutions accountable just as we hold individual taxpayers accountable. Today’s DPA shows 

that engaging in this type of behavior has consequences.”

Largest Health Care Fraud Scheme in Mississippi. 

Information included in the following forfeiture article is attributed to: DOJ news release dated August 9, 2018 

entitled “Pharmacy Owner Pleads Guilty As Part Of Largest Health Care Fraud Case Ever In Mississippi”; and 

from information provided by the IRS-CI Liaison to TEOAF. 

Pharmacy owner Thomas Edward Spell Jr. pled guilty to his role in a more than $240 million scheme to 

defraud TRICARE, the health care benefit program for the military, veterans, and their families. The case 

was the largest health care fraud scheme ever investigated and prosecuted in the State of Mississippi. It was 

a part of a multi-agency investigation into health care fraud that spanned several states including California, 

Arkansas, Connecticut, and Tennessee. Agents from IRS-CI, FBI, and the Defense Criminal Investigative 

Service participated in this investigation that was related to drug compounding fraud. Drug compounding 

is combining or mixing of more than two drugs to tailor a medication to an individual patient’s need. This 

happens when a patient cannot be treated by a FDA-approved medication. Compound drugs are not FDAapproved, but they can serve an important medical need for a patient. For example, if a child cannot swallow 

a capsule, they can use drug compounding to make a liquid form of the drug. 

Thomas Edward Spell Jr. owned and operated pharmacies in Mississippi and several other states. From 

2014 to 2016, he directed his co-conspirators to market compounded medications at his pharmacies. Instead 

of tailoring the medication based on individualized needs patients, they selected compound medications 

that provided the highest reimbursements from TRICARE to maximize profits. Spell’s pharmacies 

submitted fraudulent claims to TRICARE resulting in reimbursements of over $243 million. Of the $243 

million, Spell personally profited $29 million which he used to buy investments. After Spell pleaded guilty, 

he agreed to forfeit over $22 million and several properties. He was later sentenced to 10 years in federal 

prison and ordered to pay over $243 million in restitution. The day Spell pleaded guilty, IRS-CI Acting 

Special Agent in Charge Thomas J. Holloman stated, "Thomas Spell was a leader and organizer in this farreaching fraud and his guilty plea today is a win for all taxpayers. The special agents of IRS – Criminal 

Investigation will continue to seek justice on behalf of this nation’s taxpayers, and will pursue the 

prosecution of wrong doers at the highest levels of these criminal organizations." 

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

Final Forfeitures in Johnny Lee ET AL case, an International Counterfeit Currency Ring responsible 

for distributing over $70 million in fake bills. 

Information included in the following forfeiture article is attributed to: DOJ news release dated September 18, 2015 

entitled “Leader of International Counterfeit Currency Ring Sentenced to 15 years in Prison”; Wilber, Del Quentin. 

“Fantastic Fakes: Busting a $70 Million Counterfeiting Ring.” Bloomberg Businessweek, April 27, 2016. 

https://www.bloomberg.com/features/2016-counterfeit-money/. ; and from information provided by the USSS 

liaison to TEOAF. 

In May 2020, the final order of forfeiture was signed forfeiting properties that were associated with a largescale counterfeiting ring. From 2004 to 2014, Itzhak Loz was the head of international counterfeiting ring 

that was producing high quality $50 and $100 dollar bills in Israel and in the United States. These 

counterfeit bills imitated several of the real security features that are in US currency. Because of the high 

quality, it was difficult for retailers to spot the notes during cash transactions with customers. At the height 
SECTION I - OVERVIEW 5 

of the operation, the organization smuggled in $3 million of counterfeit bills every three months into the 

United States. The fake bills were hidden within shipping containers that contained printing equipment. 

In 2004, Loz, with the help of brothers Arkadiy Bangiyev and Eduard Bangiyev, jewelry storeowners who 

assisted in financing the counterfeiting enterprise, began using offset and lithography printing machines to 

manufacture the $50 and $100 counterfeit bills. The bills that they manufactured used two sheets of lowgrade paper glued together to mimic the thickness and feel of genuine US currency. After the counterfeits 

were created, the Bangiyev brothers passed them to a network of distributers that used the counterfeits along 

the east coast. Over the course of ten years, Loz’s organization was able to pass over $70 million in 

counterfeit bills into the U.S. financial system. 

Figure 1: Offset printing press seized at a warehouse in Cherry Hill, N.J. 

One of the bills that was passed to a business in Northern Virginia in 2012 led to a 2-year investigation by 

the United States Secret Service. During the course of the investigation, USSS agents were able to chart out 

Loz’s entire organization. By August 2014, Loz and 12 co-conspirators were indicted by a federal grand 

jury. Loz was sentenced to 15 years and had to forfeit $20 million and several assets. From 2015 to 2020 

those assets were forfeited and deposited into the Treasury Forfeiture Fund. “The conclusion of this case 

highlights the Secret Service’s investigative prowess and ability to detect one of the most prolific counterfeit 

notes in history,” said Special Agent in Charge James M. Murray of the U.S. Secret Service’s Washington 

Field Office. “This investigation joins a long list of successful counterfeit suppressions over our 150 year 

history. We will continue to work closely with our network of law enforcement partners to combat criminal 

enterprises and protect the nation’s financial infrastructure.” 
6 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

Figure 2: A stack of the counterfeit currency that was seized at the Cherry Hill warehouse. 

Figure 3: Various counterfeiting equipment from the warehouse in Cherry Hill. 
SECTION I - OVERVIEW 7 

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

Border Patrol Bike Unit arrest two men smuggling 165 pounds of suspected methamphetamine 

through drainage tunnel. 

Information included in the following forfeiture article is attributed to: CBP news release dated January 24, 2020 

entitled “Agents Rope in more than 165 Pounds of Meth” and from information provided by the CBP liaison to 

TEOAF. 

On January 17, 2020, agents from the Nogales Border Patrol Bike Unit received intelligence that narcotics 

were being smuggled though storm drains that originated in Mexico and extended approximately 20 miles 

into the United States. Based off the intelligence, agents waited in the tunnel for the suspects. These types 

of tunnels are unlit and flow under the DeConcini port of entry in Arizona. Using night vision goggles, 

agents observed two adult men floating 70 packages through the storm drain. The packages were tied 

together with rope to prevent them from free floating down the drainage system. Agents then observed them 

pulling the packages through grates on the Mexico side into the United States and stuffing the packages 

into duffle bags. The two men were apprehended as they began to walk through the tunnel carrying the 

duffle bags. Agents were able to determine through interviews that an additional individual was waiting for 

the narcotics in a car which they quickly located. In the Nogales area, exploiting the unlit subterranean 

tunnels has become a growing trend for transnational criminal organizations to smuggle narcotics. 

Figure 1: (Left): Duffle bags with several packages inside along with the rope that was used to tie together the packages of 

suspected methamphetamine. 

Figure 2: (Right): 65 out of 70 packages of suspected methamphetamine that was seized.
8 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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

Two month long Coast Guard operation nets 20,000 pounds of cocaine. 

Information included in the following forfeiture article is attributed to: Madani, Doha. “Coast Guard seizes 20,000 

pounds of cocaine and offloads it in San Diego.” NBC News, February 10, 2020. 

https://www.nbcnews.com/news/military/coast-guard-seizes-20-000-pounds-cocaine-offloads-it-san-n1134431; and 

from information provided by the Coast Guard Liaison to TEOAF. 

The Coast Guard offloaded approximately $338 million worth of cocaine on February 10, 2020. The seizure 

of cocaine resulted from a months-long operation in the Pacific Ocean. Four crews seized nearly 20,000 

pounds of cocaine from “known drug transit zones” off the coast of Mexico, Central America, and South 

America. Coast Guard cutters Thetis, Resolute, Tampa, and Munro took part in the operation from midNovember to mid-January. 

The offload was the latest in a number of high volume drug seizures the Coast Guard has made in recent 

months. According to Rear Admiral Peter Gautier, commander of the 11th Coast Guard District, the cocaine 

was heading towards Central America to be diluted by other chemicals. After the cocaine is diluted, it is 

smuggled into the United States. Admiral Gautier stated that an operation like this provides “invaluable 

information” to stop drug cartels’ supply chain. 

“By disrupting the profits of these cartels, we are reducing their effectiveness and helping our partner 

nations maintain their stability,” Gautier said. Crewmembers of the cutters talked about the bust with one 

unnamed member calling it “exhilarating “. The crewmember continued by saying, “We’re out here doing 

this great job, helping people out, stopping the bad guys. It is an honor being aboard this boat and with the 

Coast Guard doing this.” 

Figure 1: Crew of the Coast Guard cutter Munro gather before offloading the bales of cocaine.
SECTION I - OVERVIEW 9 

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 2020, the Fund expensed just over $21 million in SEF authority as 

compared to $23 million in FY 2019, a decrease of $2 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 2020, no Strategic Support funds were expensed due to available funding and unanticipated Covid19 expenses. 
10 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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 2020 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 $20.3 million in FY 2020 

as compared to $10.3 million in FY 2019. 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 $110.4 million for state and local equitable 

sharing expenses in FY 2020; the Fund did not share with foreign governments in FY 2020. By comparison, 

the Fund expensed $62.7 million for state and local and foreign equitable sharing expenses in in FY 2019, 

with $314 thousand of the total amount going to foreign governments. 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 2020, 

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

Homeland Security. FY 2020 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. 
SECTION I - OVERVIEW 11

FY 2020 was another robust year with regular revenue of $529.9 million from all sources, as compared with 

FY 2019 revenue of $891.3 million. As we enter fiscal year 2021, 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 2020, 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 2020 is as follows: 

0BPerformance Measure 

1BFY 2019 

Actual 

2BFY 2020

Target 

3BFY 2020

Actual

4BPercent of forfeited cash proceeds resulting from 

high-impact cases 

5B9491% 6B80% 7B83% 

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 2020 was 83 percent, exceeding 

the new target set in 2011. This compares with our FY 2018 and FY 2019 performance of 94 percent and 

91 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. 
12 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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, 2020. 

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 2020 and 2019. 

Net Position – End of Year. For FY 2020, 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 $1.2 billion versus $1.1 billion 

at the end of FY 2019. 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 2020, the Fund 

closed with $529.9 million in Gross Non-Exchange Revenues and a total of $891.3 million for FY 2019, 

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 2020, Treasury Forfeiture Fund bureaus earned a total of $20.3 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 $10.3 million during FY 2019. 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 2019 and FY 2020 was restricted by the need to 

meet enacted budget rescissions, sequestrations, and permanent reductions. 

Net Cost of Operations. For FY 2020, the Net Cost of Operations totaled $236.7 million, up from $226.2 

million in FY 2019. 
SECTION I - OVERVIEW 13

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

September 30, 2020, investments totaled $3 billion as compared with $2.1 billion invested as of September 

30, 2019. During FY 2020, investment income totaled $18.2 million, as compared to $70.4 million in FY 

2019.

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 2020, the Fund shared a total 

of $114 million with other federal, state and local law enforcement agencies, and $0 with foreign countries. 

This compares with $68 million shared with other federal, state and local law enforcement agencies during 

FY 2019 and $314 thousand with foreign countries. 

Victim Restitution. During FY 2020, the Fund paid $67.7 million in restitution to victims as compared 

to $83.2 million in FY 2019. 

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

2020. Management will continue to emphasize high-impact cases by participating law enforcement bureaus. 

The FY 2020 performance with forfeiture revenue earnings of $529.9 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 $236.7 million in FY 2020, up from 

$226.2 million in FY 2019. 

Intra-governmental. This cost category totaled $166.8 million in FY 2020, up from $158.7 million in FY 

2019. 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 2020, 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 2020, expenses of these contracts, 

which comprised over 76% of the total expenses for this line, including other contracts, totaled $53.9 

million, up from $51.5 million expensed in FY 2019.
14 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

Statements: Budgetary Resources 

As of the end of FY 2020, the Fund has estimated future expenditures and commitments of $512.8 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 

$691.5 million as reported on the SF-133” Report on Budget Execution” for FY 2020. The unobligated 

balance less reductions would result in $178.7 million remaining at the end of FY 2020. 

Balance Sheet 

Assets, Liabilities and Net Position 

Total assets of the Fund increased in FY 2020 to $3.4 billion, up from $3.0 billion in FY 2019, an increase 

in asset value of 13 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 $1.4 billion in FY 2020, up from $1.3 billion in FY 2019. During FY 2020, 

total liabilities of the Fund were $2.2 billion, comparable to the $1.9 billion in FY 2019. 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 decreased to $205.6 

million in FY 2020, down from $209.1 million in FY 2019. 

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

earnings, increased at the end of FY 2020 to a total of $1.2 billion, up from $1.1 billion at the end of FY 

2019. 

Financial and Program Performance - What is needed and planned. 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 2020 Audit. The Fund’s independent auditors have given the FY 2020 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. 19-03, Audit Requirements for Federal Financial Statements. 

Summary of Financial Statement Highlights 

Net Position. To summarize, Fund management concluded a highly productive FY 2020 “in the black,” 

with the necessary resources to commence the business of the asset forfeiture program for FY 2021. There 

was no permanent rescission in FY 2020, but the Fund had $30.3 million sequestered. Due to unanticipated 

Covid-19 expenses, the Fund was not able to declare Strategic Support funding for FY 2020. The Fund does 

anticipate that there will be Strategic Support funding for the agencies in FY 2021. 
SECTION I - OVERVIEW 15

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 2020 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 2020 and 

2019, the Fund reviewed 15,465 and 13,482 payments totaling $501 million and $1.638 billion respectively, 

and reports less than .09% and .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. 
16 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

• 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, 2020 and 2019, 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. 19-03, Audit Requirements for Federal Financial 

Statements. Those standards and OMB Bulletin No. 19-03 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 
18 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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, 2020 and 

2019, 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 19

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, 2020, we considered the Fund’s internal control over financial reporting (internal control) to 

determine 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, 2020 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. 19-03. 
20 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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. 

/s/ 

Washington, DC 

November 16, 2020 
SECTION III 

FINANCIAL STATEMENTS AND NOTES 
THIS PAGE INTENTIONALLY LEFT BLANK 
SECTION III - FINANCIAL STATEMENTS AND NOTES 21

Department of the Treasury Forfeiture Fund 

BALANCE SHEETS 

As of September 30, 2020, and 2019 

(Dollars in thousands) 

2020 2019

Assets: 

Intragovernmental:

 Fund balance with Treasury $ 34,430 $ 34,013 

 Investments and related interest receivable (Note 3) 2,990,759 2,135,047 

 Total Intragovernmental 3,025,189 2,169,060 

 Cash and other monetary assets (Note 5) 327,747 724,091 

 Accounts Receivable 2,734 1,454 

 330,481 725,545 

 Forfeited property (Note 6) 

 Held for sale, net of mortgages, liens and claims 86,620 92,551 

 To be shared with federal, state or local, or foreign governments 327 617 

 Total forfeited property, net of mortgages, liens and claims 86,947 93,168 

 

Total Assets $3,442,617 $2,987,773 

Liabilities: 

 Intragovernmental:

 Accounts payable $ 81,333 $ 84,938 

 Total Intragovernmental 81,333 84,938 

 Seized currency and other monetary instruments (Note 8) 2,020,170 1,652,576 

 Distributions payable (Note 10) 

 State and local agencies and foreign governments 32,601 22,957 

 Accounts payable 4,687 7,996 

 Deferred revenue from forfeited assets 86,947 93,168 

Total Liabilities 2,225,738 1,861,635 

Commitments and contingencies (Note 15) - - 

Net Position: 

 Cumulative results of operations (Note 11) 1,216,879 1,126,138 

Total Liabilities and Net Position $3,442,617 $2,987,773 

The accompanying notes are an integral part of these financial statements. 
22 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

Department of the Treasury Forfeiture Fund 

STATEMENTS OF NET COST 

For the years ended September 30, 2020 and 2019 

(Dollars in thousands) 

2020 2019

Program: 

ENFORCEMENT

 Intragovernmental: 

 Seizure investigative costs and asset management $ 91,592 $ 98,383 

 Other asset related contract services 7,374 7,118 

 Data systems, training and others 67,789 53,230 

 Total Intragovernmental 166,755 158,731 

 With the Public:

 National contract services seized property and other 53,933 51,526 

 Joint operations 16,017 15,974 

 Total with the Public 69,950 67,500 

Net Cost of Operations (Note 16) $ 236,705 $ 226,231 

The accompanying notes are an integral part of these financial statements. 
SECTION III - FINANCIAL STATEMENTS AND NOTES 23

Department of the Treasury Forfeiture Fund 

STATEMENTS OF CHANGES IN NET POSITION 

For the years ended September 30, 2020 and 2019 

(Dollars in thousands)

2020 2019

Net Position – Beginning of Year $ 1,126,138 $ 1,435,756 

Financing Sources (Non-Exchange Revenues): 

 Intragovernmental

 Investment interest income 

 Public

 18,193 70,360 

 Forfeited currency and monetary instruments 409,893 742,856 

 Sales of forfeited property net of mortgages and claims 64,649 59,210 

 Proceeds from participating with other federal agencies 20,306 10,259 

 Value of property transferred in equitable sharing 1,498 593 

 Payments in lieu of forfeiture, net of refunds (Note 19) 10,731 7,058 

 Reimbursed costs 4,270 4,171 

 Other 358 (3,224) 

 Total Gross Non-Exchange Revenues 529,898 891,283 

Less: Equitable Sharing

 Intragovernmental

 Federal (3,573) (5,577) 

 Public 

 State and local agencies (110,398) (62,427) 

 Foreign countries -- (314) 

 Victim restitution (67,687) (83,206) 

 (178,085) (145,947) 

 Total Equitable Sharing (181,658) (151,524) 

Total Non-Exchange Revenues, Net 348,240 739,759 

Transfers –In (Out) 

 Intragovernmental

 Strategic support (Note 13) 667 (599,718) 

 Secretary’s enforcement fund (Note 14) (21,461) (23,428) 

 Transfer to the general fund (Note 9) -- (200,000) 

Total Transfers Out (20,794) (823,146) 

Total Financing Sources - Net 327,446 (83,387) 

Net Cost of Operations (236,705) (226,231) 

Net Results of Operations 90,741 (309,618) 

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

The accompanying notes are an integral part of these financial statements.
24 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

Department of the Treasury Forfeiture Fund 

STATEMENTS OF BUDGETARY RESOURCES 

For the years ended September 30, 2020 and 2019 

(Dollars in thousands) 

2020 2019

Budgetary Resources: 

 

 Unobligated balance from prior year budget authority, net 

 (Note 17) 

$ 641,990 $ 860,599 

 Budget authority 537,504 771,717 

 

Total Budgetary Resources

 

$ 1,179,494 $ 1,632,316 

Status of Budgetary Resources: 

 Obligations incurred $ 488,041 $ 1,022,684 

 Unobligated balances – apportioned 

 Unobligated balances – unapportioned 

$ 674,095 

 17,358 

$ 596,206 

 13,426 

 Unobligated balances – end of year (Note 17) $ 691,453 $ 609,632 

Total Budgetary Resources $ 1,179,494 $ 1,632,316 

Outlays, net 

 

 

 Net Outlays $ 437,049 $ 1,072,955 

The accompanying notes are an integral part of these financial statements.
SECTION III - FINANCIAL STATEMENTS AND NOTES 25

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 consistent with 31 USC 9705, as amended. A portion of 

these expenses, referred to as discretionary expenses, are subject to annual appropriation limitations. 

Others, referred to as non-discretionary (mandatory) expenses, are limited only by the availability of 

resources in the Fund. Both expense categories are limited in total by the amount of revenue 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. 
26 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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 2019 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 27

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.
28 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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, 

2020 and 2019. 
SECTION III - FINANCIAL STATEMENTS AND NOTES 29

• 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. 
30 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

• 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 

2021. 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 31

• 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, 2020 and 2019, 

respectively (dollars in thousands):

Entity Assets 

Description Cost Unamortized 

Discount 

Investment, 

Net 

September 30, 2020 

Treasury Forfeiture Fund - 

35 days .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

September 30, 2019 

Treasury Forfeiture Fund - 

35 days 1.7200% U.S. Treasury Bills $1,144,108 ($1,913) $1,142,195

Interest Receivable 409

Total Investment, Net, and Interest Receivable $1,142,604

Fair Market Value $1,142,421
32 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

Non-entity Assets 

Description Cost Unamortized 

Discount 

Investment, 

Net 

September 30, 2020 

Treasury Forfeiture Fund –

Seized Currency Suspense Account

35 days .075% U.S. Treasury Bills $1,772,663 ($129) $1,772,534

Fair Market Value $1,772,539

September 30, 2019 

Treasury Forfeiture Fund –

Seized Currency Suspense Account 

35 days 1.7200% U.S. Treasury Bills $994,105 ($1,662) $ 992,443

Fair Market Value $ 992,639

Note 4: Analysis of Non-Entity Assets 

The following schedule presents the non-entity assets as of September 30, 2020 and 2019, respectively 

(dollars in thousands): 

2020 2019

Seized currency: 

 Intragovernmental Investments (Note 3) $ 1,772,534 $ 992,443

 Cash and other monetary assets (Note 5) 247,636 660,133

Total Non-Entity Assets 2,020,170 1,652,576

Total Entity Assets 1,422,447 1,335,197

Total Assets $ 3,442,617 $ 2,987,773
SECTION III - FINANCIAL STATEMENTS AND NOTES 33

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 $80.1 million and $64.0 million as of September 

30, 2020 and 2019, 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 $247.6 million and $660.1 

million as of September 30, 2020 and 2019, respectively. 

Note 6: Forfeited Property/Deferred Revenue

The following summarizes the components of forfeited property (net), as of September 30, 2020 and 

2019, respectively (dollars in thousands): 

2020 2019

Held for sale $ 91,203 $ 97,226

To be shared with federal, State or local, or foreign government 327 617

 Total forfeited property (Note 7) 91,530 97,843

Less: Allowance for liens and claims (4,583) (4,675) 

Total forfeited property, net $ 86,947 $ 93,168
34 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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 
SECTION III - FINANCIAL STATEMENTS AND NOTES 35

Note 7: FY 2019 Analysis of Changes in Forfeited Property and Currency 

The following schedule presents the changes in the forfeited property and currency balances from October 1, 2018 to September 30, 2019. 

(Dollar value is in thousands) 

10/1/18 Financial 

Statement Balance Adjustments 

10/1/18 

Carrying Value Forfeitures Deposits/Sales Disposals/Transfers 

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

Currency $39,486 - $- - $39,486 - $690,315 - $(719,548) - $ - - 

Other Monetary 

Instruments 7,248 - - - 7,248 - 70 - - - - - 

Subtotal 46,734 - - - 46,734 - 690,385 - (719,548) - - - 

Real Property 48,648 185 11,805 - 60,453 185 53,908 106 (61,468) (171) - (2) 

General Property 19,969 16,042 22,433 - 42,402 16,042 47,164 14,006 (12,592) (2,183) (1,669) (3,169) 

Vessels 1,038 113 648 - 1,686 113 2,073 160 (853) (42) (37) (26) 

Aircraft 852 7 1,056 - 1,908 7 399 5 (214) (3) - - 

Vehicles 8,171 2,362 7,352 - 15,523 2,362 39,395 8,052 (19,628) (4,923) (9,809) (1,161) 

Subtotal 78,678 18,709 43,294 - 121,972 18,709 142,939 22,329 (94,755) (7,322) (11,515) (4,358) 

Grand Total $125,412 18,709 $43,294 - $168,706 18,709 $833,324 22,329 $(814,303) (7,322) $(11,515) (4,358) 

Victim Restitution Destroyed 

Other 

Adjustments Value Change 2019 Carrying Value

Fair Market Value 

Adjustment 

9/30/19 Financial 

Statement Balance 

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

Currency $- - $- - $51,827 - $(687) - $61,393 - $- - $61,393 - 

Other Monetary 

Instruments - 

- 

- 

(4,753) - - - 2,565 - - - 2,565 - 

Subtotal - - - - 47,074 - (687) - 63,958 - - - 63,958 - 

Real Property - - - - 24,259 55 (2,574) - 74,578 173 (12,101) - 62,477 173

General Property - - (23,499) (12,555) 3,252 (227) (7,736) - 47,322 11,914 (25,915) - 21,407 11,914 

Vessels - - (114) (111) 126 4 (51) - 2,830 98 (764) - 2,066 98

Aircraft - - - - (1,337) (1) (52) - 704 8 (290) - 414 8 

Vehicles - - (4,796) (2,227) 1,663 229 (432) - 21,916 2,332 (10,437) - 11,479 2,332 

Subtotal - - (28,409) (14,893) 27,963 60 (10,845) - 147,350 14,525 (49,507) - 97,843 14,525 

Grand Total $- - $(28,409) (14,893) $75,037 60 $(11,532) - $211,308 14,525 $(49,507) - $161,801 14,525 
36 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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 N

o

.

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
SECTION III - FINANCIAL STATEMENTS AND NOTES 37

Note 8: FY 2019 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, 2018 to September 30, 2019. (Dollar value is in thousands) 

10/1/18 Financial 

Statement Balance Seizures 

 

Remissions 

 

Forfeitures Adjustments Value 

Changes 

9/30/19 Financial 

Statement Balance 

Value No. Value Value No. Value No. Value No. Value N

o

.

Value No.

Currency $1,678,309 - $1,314,497 - $(585,130) - $(690,315) - $(76,967) - $(572) - $1,639,822 - 

Other 

Monetary 

Instruments 12,567 - 245 - (2) - (70) - 15 - (1) - 12,754 

- 

Subtotal 1,690,876 - 1,314,742 - (585,132) - (690,385) - (76,952) - (573) - 1,652,576 - 

Real Property 257,608 488 50,860 102 (6,715) (46) (53,908) (106) (34,685) (58) (10,325) - 202,835 380 

General 

Property 

415,623 30,431 98,910 31,542 (69,795) (5,460) (47,164) (14,006) (5,856) (10,653) (6,286) - 385,432 31,854 

Vessels 6,386 130 91,378 209 (702) (18) (2,073) (160) (768) (9) (24) - 94,197 152 

Aircraft 13,731 35 6,378 20 (1,224) (10) (399) (5) 3,801 4 (1,534) - 20,753 44

Vehicles 47,124 4,949 124,864 15,576 (55,873) (4,342) (39,395) (8,052) (18,403) (1,640) (1,784) - 56,533 6,491 

Subtotal 740,472 36,033 372,390 47,449 (134,309) (9,876) (142,939) (22,329) (55,911) (12,356) (19,953) - 759,750 38,921 

Grand Total $2,431,348 36,033 $1,687,132 47,449 $(719,441) (9,876) $(833,324) (22,329) $(132,863) (12,356) (20,526) - $2,412,326 38,921 
38 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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. A permanent reduction or cancellation means that the cancelled 

amount cannot be used for those purposes. In fiscal year 2020, there was not a permanent reduction or 

cancellation. In fiscal year 2019, the Consolidated Appropriations Act of 2019 permanently cancelled 

$200 million. The cancelled funds were transferred to the General Fund on September 27, 2019. 

Note 10: Distributions Payable 

Distributions Payable (state and local agencies and foreign governments) amounted to $32.6 million 

and $23 million as of September 30, 2020 and 2019, 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, 2020 and 2019, 

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, 2020 

and 2019, respectively (dollars in thousands): 

2020 2019 

Retained Capital $ 713,889 $ 1,039,438 

Unliquidated Obligations 412,249 396,318 

Net Results of Operations 90,741 (309,618) 

$ 1,216,879 $ 1,126,138 

Unliquidated Obligations 

The following summarizes the components of unliquidated obligations as of September 30, 2020 and 

2019 respectively (dollars in thousands): 

2020 2019

Equitable Sharing $ 216,863 $ 190,164 

Mandatory 195,386 206,154 

 $ 412,249 $ 396,318 
SECTION III - FINANCIAL STATEMENTS AND NOTES 39

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. 

No amount was distributed to other federal agencies for law enforcement activities under “Strategic 

Support” requirements in fiscal year 2020, while $599.7 million was distributed in fiscal year 2019. 

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

September 30, 2020 and 2019, respectively, (dollars in thousands): 

 2020 2019

Transfers - Out $ - $(602,972) 

Transfers - In 667 3,254

Total $ 667 $(599,718) 

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 $21.5 million and $23.4 million in fiscal years 2020 and 2019, respectively. 

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

ended September 30, 2020 and 2019, respectively, (dollars in thousands): 

 2020 2019

Transfers - Out $ (22,830) $ (24,615) 

Transfers - In 1,369 1,187

Total $ (21,461) $ (23,428) 
40 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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, 2020, the Fund had future expenditures of $512.8 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 a litigation to report that could have a future material impact. A civil lawsuit was filed 

on September 16, 2020, against the Departments of Justice and Treasury, and against a fund set up for 

the U.S. Victims of State Sponsored Terrorism (USVSST). The lawsuit seeks 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. Though the government plans to contest this 

lawsuit, it is too early to assess the likelihood of loss. 

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: 

 

2020 2019

Gross Costs $ 236,705 $ 226,231 

Earned Revenues - - 

Net Costs $ 236,705 $ 226,231 

The Fund falls under the Treasury’s budget functional classification related to Administration of 

Justice. 
SECTION III - FINANCIAL STATEMENTS AND NOTES 41

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 2020 and 2019 consist of 

the following (in thousands): 

 

2020 2019

Recoveries of Prior Year Unpaid Obligations $ 32,358 $ 35,426

Other Changes in Unobligated Balance - - 

Total $ 32,358 $ 35,426

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, 2020 unobligated balance. 

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

from these future expenditures and commitments for fiscal years 2020 and 2019.

2020 2019

Unobligated balance $ 691,453 $ 609,632

Future expenditures (Note 15):

Refund and remissions (386,604) (341,355) 

Equitable sharing (126,161) (131,961) 

Total future expenditures (512,765) (473,316) 

Commitments (Note 15) - - 

Total reductions to unobligated balance (512,765) (473,316) 

Unobligated balance net of future expenditures, and 

commitments $ 178,688 $ 136,316
42 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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, 2020 and 2019, respectively (dollars in thousands): 

2020 2019

Payments in Lieu of Forfeiture $ 11,713 $ 8,337

Refunds (982) (1,279)

Total $ 10,731 $ 7,058 
SECTION III - FINANCIAL STATEMENTS AND NOTES 43

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, 2020 

IntraGovernmental IntraDepartmental 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 
44 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

September 30, 2019

IntraGovernmental IntraDepartmental With the 

Public 

Total 

Net Cost $111,545 $47,186 $67,500 $226,231 

(Increase)/decrease in liabilities:

 Accounts payable (1,597) 154 20,804 19,361 

 Other liabilities 32,429 17,274 49,703 

Other financing sources 

 Transfers out (in) without reimbursement 

 

 613,427

 

 9,719 623,146 

Total components of Net Cost not part of Net Outlays 644,259

 

27,147 

 

20,804 692,210 

Components of Net Outlays that are not part of Net 

Cost: 

 Other 154,514 154,514 

Total components of Net Outlays that are not part of 

Net Costs

 

 154,514

 

 154,514 

Net Outlays $755,804 $74,333 $242,818 $1,072,955 
SECTION IV 

REQUIRED SUPPLEMENTAL INFORMATION 

(UNAUDITED) 
 

THIS PAGE INTENTIONALLY LEFT BLANK 
SECTION IV – REQUIRED SUPPLEMENTAL INFORMATION (UNAUDITED) 45

Intragovernmental Amounts – Assets (Dollars in thousands) 

2020 2019 

Partner Agency 

Fund 

Balance 

with 

Treasury Investments 

Fund 

Balance 

with 

Treasury Investments 

Treasury $ 34,430 - $ - $ 34,013 $ - 

Bureau of the Fiscal 

Service - 2,990,759 - 2,135,047 

Totals $ 34,430 $ 2,990,759 $ 34,013 $ 2,135,047 

Intragovernmental Amounts – Liabilities (Dollars in thousands) 

Partner Agency 

2020 

Accounts 

Payable 

2019 

Accounts 

Payable 

Department of Justice $ 16,389 $ 15,693 

Department of Homeland Security 47,815 57,050 

Departmental Offices 614 813 

Treasury Office of the Inspector 

General 134 139 

 

Tax and Trade 870 677 

Internal Revenue Service 15,511 10,566 

Totals $ 81,333 $ 84,938 

Intragovernmental Amounts – Revenues and Costs (Dollars in thousands) 

2020 2019 

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 $ - $ 166,755 $ - $ 158,731 
46 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

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

Partner Agency 

2020 2019

Transfers 

In

Transfers 

Out 

Net 

Transfers 

In (Out) 

Transfers 

In

Transfers 

Out 

Net 

Transfers 

In (Out) 

Department of Homeland 

Security $ 1,163 $ (15,751) $ (14,588) $ 3,738 $ (617,205) $ (613,467)

Internal Revenue Service 872 (6,728) (5,856) 663 (9,782) (9,119)

Tax and Trade - (350) (350) - (600) (600)

Department of Justice - - - 40 - 40

General Fund - - - - (200,000) (200,000)

$ 2,035 $ (22,829) $ (20,794) $ 4,441 $(827,587) $ (823,146)
SECTION V 

OTHER ACCOMPANYING INFORMATION 

(UNAUDITED) 

THIS PAGE INTENTIONALLY LEFT BLANK 

SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 47

TREASURY FORFEITURE FUND 

Equitable Sharing Summarized by State and U.S. Territories 

For the Year Ended September 30, 2020 

(Dollars in Thousands) 

(Unaudited) 

State/U.S. Territories Currency Value Property Value 

Alabama $ 2,148 $ - 

Alaska - 2 

Arizona 433 18

Arkansas 127 100

California 5,069 102

Colorado 209 8 

Connecticut 822 - 

D.C. Washington 10 - 

Delaware 131 - 

Florida 2,916 1,406 

Georgia 1,997 - 

Guam - - 

Hawaii 118 4 

Idaho - - 

Illinois 5,341 26

Indiana 5,776 - 

Iowa 7 - 

Kansas 530 225

Kentucky 448 1 

Louisiana 295 - 

Maine 6 - 

Maryland 1,711 - 

Massachusetts 311 185

Michigan 147 161

Minnesota 838 26

Mississippi 588 - 

Missouri 2,917 125

Montana - - 

Nebraska 6,365 5 

Nevada 412 2 

New Jersey 1,025 - 

New Hampshire 149 - 

New Mexico - - 

New York 14,660 1,418 

North Carolina 5,467 - 

North Dakota 4 - 

Northern Marianas 3 - 

Ohio 3,122 11

Oklahoma 1,647 8 

Oregon 3,651 - 

Pennsylvania 2,383 36

Puerto Rico 2,301 20

Rhode Island 214 - 

South Carolina 626 533

South Dakota 19 - 

Tennessee 924 242

Texas 15,931 2,417 

Subtotal carried forward $91,798 $7,081 
48 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

TREASURY FORFEITURE FUND 

Equitable Sharing Summarized by State and U.S. Territories 

For the Year Ended September 30, 2020 

(Dollars in Thousands) 

(Unaudited) 

State/U.S. Territories Currency Value Property Value 

Subtotal brought forward 91,798 7,081 

Utah 11 11

Vermont 43 - 

Virgin Islands - - 

Virginia 829 7 

Washington 1,057 5 

West Virginia 3 11

Wisconsin 50 16

Wyoming - 38

Totals $93,791 $ 7,169 

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) 49

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, 2020 

(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 35 

administrative seizures over $100 thousand over 120 days old totaling $19,878 that had not been 

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

FY 2020. 
50 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

TREASURY FORFEITURE FUND 

Analysis of Revenue and Expenses and Distributions 

For the Year Ended September 30, 2020

(Dollars in Thousands) 

Revenue, Expenses and Distributions by Asset Category: 

Revenue 

Expenses and 

Distributions 

Vehicles $ 14,783 $ 62,114

Vessels 4,106 79,140

Aircraft 4,106 25,496

General Property 13,140 251,193

Real Property 45,991 9,839

Currency and monetary instruments 449,892 104,236

532,018 532,018

Less: 

 Mortgages and claims (1,138) (1,138) 

 Refunds (982) (982) 

Add: 

 Excess of net revenues and financing sources over total program 

 expenses 

 - - 

Total $529,898 $ 529,898

Revenue, Transfers, Expenses and Distributions by Type of 

Disposition: 

Sales of property and forfeited currency and monetary instruments $ 346,090 $ 101,083

Reimbursed storage costs 4,270 53,202

Assets shared with state and local agencies 110,398 110,398

Assets shared with other federal agencies 3,573 3,573

Assets shared with foreign countries - - 

Victim Restitution 67,687 67,687

Destructions - 63,843

Pending disposition - 132,232

532,018 532,018

Less: 

 Mortgages and claims (1,138) (1.138) 

 Refunds (982) (982) 

Add: 

 Excess of net revenues and financing sources over total program 

 expenses 

 - - 

Total $ 529,898 $ 529,898

The revenue amount of $529,898 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) 51

TREASURY FORFEITURE FUND 

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

For the Year Ended September 30, 2020 

(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, 2020, the Fund had forfeited 

property held for sale of $91,203. 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, 2020, there was 

$80,111 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 $93,791 

and total property transferred was $7,169 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, 2019 which became 

the beginning balance for the Fund on October 1, 2019, as reported in the audited financial 

statements is $1,126,138.
52 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2020 

TREASURY FORFEITURE FUND 

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

For the Year Ended September 30, 2020 

(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 $1,138. 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 $110,398

Foreign countries - 

Other federal agencies 3,573

Victim restitution 67,687

(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 $236,705. 

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

2020, was $247,636. This amount includes some funds in the process of being deposited at yearend, cash seized in August or September 2020 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 $691,453 for 

fiscal year 2020. There was no rescinded authority that was classified as “permanent”.
SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 53

TREASURY FORFEITURE FUND 

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

For the Year Ended September 30, 2020 

(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 $ 271,821 50 seizures 

IRS 1,145,131 134 seizures 

U.S. Secret Service 125,966 18 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 $19,878. This is also documented on page 49.

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

The total net position of the Fund at September 30, 2020, as reported in the audited financial 

statements is $1,216,879.

(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 2021 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 50.