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Message from the Director

I am pleased to present the fiscal year (FY) 2015 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 2015 was another challenging year with a rescission of $944 million as part of the Consolidated 

Appropriations Act of 2015 (P.L. 113-235). Additionally, $399 million was sequestered as part of the 

government-wide sequestration order. In terms of overall revenue, FY 2015 was the highest revenue year since 

the inception of the Fund with income over $4.6 billion from forfeitures and recoveries, as compared to $807 

million in FY 2014. Among those forfeitures, one major case accounted for more than $3.8 billion in gross 

revenues, with the remaining $800 million coming from direct forfeitures, recoveries, interest, and equitable 

sharing received from the Department of Justice. 

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 2015, our member bureaus exceeded the target 

with a performance level of 98 percent. 

In FY 2015, the Fund continued prioritizing the support of law enforcement efforts targeting Third Party 

Money Laundering Networks (3PML). This is a critically important investigative area aimed at dismantling 

the financial infrastructure of Transnational Criminal Organizations. The Fund has continued to review the 

progress of identified 3PML cases being investigated by the Fund’s Treasury and Homeland Security member 

law enforcement agencies. The Fund continues to provide funding resources to enhance their analytical and 

operational needs. In union with this initiative, the Fund conducted a seminar on 3PML issues in Los Angeles, 

CA. The discussion included trade-based money laundering, black market peso exchange, virtual currency, 

and specific case studies illustrating investigative and prosecutorial best practices. The seminar also addressed 

resources available to support member agencies’ efforts targeting 3PML networks. 

Contributing to this year’s revenue levels were several investigations of note. An investigation of BNP Paribas 

(BNPP), a global financial institution headquartered in Paris, resulted in $3.8 billion being forfeited to the 

Fund. From at least 2004 to 2012, BNPP knowingly and intentionally violated laws by moving more than $8.8 

billion through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to 

economic sanctions. DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the 

U.S., agreed to pay $39 million to resolve claims that it violated the False Claims Act by paying kickbacks to 

induce referrals of patients to its dialysis clinics. United Medical Diagnostics was used by its proprietor to 

defraud Medicare and Medicaid for over $30 million in services that were not performed. The investigative 

agency was able to recover $6.7 million from the scheme which will go towards restitution. 

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 2016. 

 

 John Farley, Acting 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 Reports 

Independent Auditor’s Report on Financial Statements ....................................................16 

Independent Auditor’s Report on Internal Control over Financial Reporting ...................19 

Independent Auditor’s Report on Compliance and Other Matters ....................................21 

Section III: Financial Statements and Notes 

Financial Statements: 

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

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

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

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

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

Section IV: 

Required Supplemental Information ........................................................................................45 

Section V: 

Other Accompanying Information ...........................................................................................47

 
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SECTION I - OVERVIEW 1

Treasury Forfeiture Fund 

FY 2015 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 the Fund 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 26 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 2015 

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 2015 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. 

Internal Revenue Service, Criminal Investigation (IRS-CI) 

Department of the Treasury 

BNP Paribas Forfeits More Than $8.8 Billion 

Information included in the following article is attributed to US Attorney’s June 30, 2014 press release titled, BNP Paribas 

Pleads Guilty in Manhattan Federal Court to Conspiring to Violate U.S. Economic Sanctions; TEOAF records; and from the 

IRS-CI liaison to TEOAF. 

BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, agreed to forfeit a total of 

$8.83 billion and pay a criminal fine of $140 million. The bank conspired to violate the International 

Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA). BNPP 

knowingly and willfully moved more than $8.8 billion through the U.S. financial system on behalf of 

Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions from 2004 through 2012. 

BNPP admitted that the majority of illegal payments made on behalf of sanctioned entities in Sudan were 

based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses. 

One way in which BNPP processed illegal transactions on behalf of Sudanese sanctioned entities was 

through a sophisticated system of “satellite banks” set up to disguise both BNPP’s and the sanctioned 

entities’ roles in the payments to and from financial institutions in the United States. Similarly, BNPP 

provided Cuban sanctioned entities with access to the U.S. financial system by hiding the Cuban 

sanctioned entities’ involvement in payment messages. Wire messages for payments were stripped of 

references to Cuban entities and resubmitted as a lump sum in order to conceal from U.S. regulators the 

bank’s longstanding, and illicit, Cuban business. The illicit Iranian transactions were done on behalf of 

BNPP clients, including a petroleum company based in Dubai that was effectively a front for an Iranian 

petroleum company and an Iranian oil company. 

The $8.8 billion forfeiture was broken into four primary segments: 

 $3,838,800,000 was forfeited to the Treasury Forfeiture Fund 

 $508,000,000 was paid to the Federal Reserve 

 $2,243,400,000 was paid to the New York Department of Financial Services 

 $2,243,400,000 was paid to the New York County District Attorney 
SECTION I - OVERVIEW 3

Owner of Smoke Shops Forfeits Over $6 Million 

Information included in the following article is attributed to US Attorney’s May 15, 2014 press release titled, Owner Of Smoke 

Shops In Bakersfield, Fresno And Visalia Pleads Guilty To Fraud Relating To The Sale Of Synthetic Drugs; and TEOAF 

records. 

Victor Anthony Nottoli pleaded guilty to one count of conspiracy to defraud the United States by 

interfering with the lawful governmental regulatory and enforcement functions of FDA and DEA and one 

count of causing misbranded smokable synthetic cannabinoids (SSC) to be introduced into interstate 

commerce. Nottoli agreed to forfeit $6,487,984, as well as a truck and a high-end RV. 

According to court documents, between April 1, 2011 and June 26, 2013, Nottoli generated more than 

$20 million by distributing SSC products commonly known as K2 or spice in retail outlets throughout the 

United States and from his six smoke shops. Nottoli and his co-conspirators manufactured and distributed 

SSC products containing hallucinogenic chemical compounds. They referred to the SSC products as 

herbal incense, spice, botanicals and potpourri and labeled, "Not for Human Consumption." Between 

August 1, 2012, and June 26, 2013, twenty-four tons of misbranded drugs intended for human 

consumption were packaged and sold without the labeling required by law and necessary to protect the 

user. 

DaVita Forfeits $39 Million as part of Settlement Agreement 

Information included in the following article is attributed to US Attorney’s October 22, 2014 press release titled, DaVita to Pay 

$350 Million to Resolve Allegations of Illegal Kickbacks. 

DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the United States, 

agreed to pay $350 million to resolve claims that it violated the False Claims Act by paying kickbacks to 

induce the referral of patients to its dialysis clinics. As part of the settlement agreement, DaVita also 

agreed to a civil forfeiture in the amount of $39 million, which was deposited in the Treasury Forfeiture 

Fund. 

According to court documents, between March 1, 2005 and February 1, 2014, DaVita identified 

physicians or physician groups that had significant patient populations suffering renal disease and offered 

them lucrative opportunities to partner with DaVita by acquiring and/or selling an interest in dialysis 

clinics to which their patients would be referred for dialysis treatment. 

DaVita further ensured referrals of these patients to the clinics through a series of secondary agreements 

with the physicians, including entering into agreements in which the physician agreed not to compete with 

the DaVita clinic and non-disparagement agreements that would have prevented the physicians from 

referring their patients to other dialysis providers. 

Immigration and Customs Enforcement (ICE) 

Department of Homeland Security 

 

San Diego Agents Break Open International Narcotics Money Laundering Ring 

Information included in the following forfeiture article is attributed to: Information provided by the HSI Liaison to TEOAF. 

In April of 2013, Immigration and Customs Enforcement (ICE) Homeland Security Investigations’ (HSI) 

agents began investigating a series of money laundering targets based in Culiacan and Tijuana, Mexico. 
4 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

The investigation led to a money laundering and logistics network with direct ties to the family and 

lieutenants of Ismael “`El Mayo” Zambado, one of the heads of the Sinaloa Cartel. 

The logistics network operated a sprawling multi-national cocaine acquisition, transportation and 

importation organization across Colombia, Panama, Guatemala, Costa Rica, Mexico, and the United 

States. In addition, the investigation revealed the targets oversaw a multi-ton methamphetamine and 

heroin precursor acquisition organization, some of which were seized in Guatemala. 

HSI agents worked with agents from the Drug Enforcement Agency (DEA) to target and investigate the 

leaders of the organization using a wide array of investigative methods, including warranted 

communication intercepts. The information gleaned by the investigation resulted in 42 interdictions 

around the country, totaling nearly $4 million of seized currency, 88 pounds of cocaine, 200 pounds of 

methamphetamine, 20 pounds of heroin, 700 pounds of marijuana. One such interdiction occurred on a 

courier attempting to smuggle bulk narcotics proceeds from Los Angeles, CA across the Mexican border 

to Tijuana. HSI agents had information this delivery was going to occur, stopped the car, and seized and 

eventually forfeited the $308,900 of narcotics proceeds hidden in the vehicle. 

Through the course of the investigation, agents arrested 30 individuals across the United States. The 

Southern District of California has indicted 21 additional operatives, most of whom are believed to be in 

Mexico, Colombia, and other foreign locations. 

United States Secret Service (USSS) 

Department of Homeland Security

Three Plead Guilty of Gambling and Money Laundering; Forfeit $20 Million 

Information included in the following forfeiture article was provided by the USSS Liaison to TEOAF, and by the Department 

of Justice Press Release dated December 2, 2014, titled, “Three Plead Guilty in Gambling Case and Forfeit $20 Million.” 

In August of 2012, the Secret Service opened a joint case with IRS-CI and local law enforcement 

agencies. The joint investigation revealed that Frontier Software Systems, LLC, was operating an illegal 

gambling business based out of Piedmont, South Carolina. The company distributed video gambling 

machines to businesses throughout South Carolina and shared a percentage of the machines’ winnings 

with business proprietors. 

In October 2013, federal search and seizure warrants were executed and agents seized several hundred 

gambling machines and other evidence. The investigation revealed 93 bank accounts and 75 shell 

companies as being used by the operation to aid in the laundering of illegal proceeds. 
SECTION I - OVERVIEW 5

Figure 1: Gambling machines which were distributed and operated illegally.

On December 1, 2014, Bobby Mosley, Sr., and Michael Caldwell pleaded guilty for their roles in the 

gambling operation. As part of their plea agreement, they, along with Frontier Software Systems, forfeited 

$20 million to the Treasury Forfeiture Fund. Of that sum, $12 million was forfeited to the Secret Service, 

and $8 million to IRS-CI. 

Secret Service Stops Medicare Fraud Scheme, Seizes $6.7 Million 

Information included in the following forfeiture article was provided by the USSS Liaison to TEOAF, and by the Department 

of Justice Press Release dated August 30, 2012, titled, “Individual Charged with Defrauding Medicare and Medicaid of More 

than $30 Million.” 

Secret Service agents, in conjunction with the Health and Human Services Office of the Inspector General 

(HHS-OIG) were able to stop a massive Medicare fraud scheme. Tian Huan “Warren” Tai had 

fraudulently billed Medicare and Medicaid for over $30 million of services which had never been 

performed. 

Tai operated United Medical Diagnostics, a practice that specialized in radiology. Agents discovered Tai 

had been using the provider number for a doctor who had left the practice, and was unaware of the 

fraudulent use of his identity. 

A Civil Complaint was filed on March 7, 2014 against all assets seized, which resulted in a default 

judgment and decree of forfeiture on September 24, 2014. In total, Secret Service seized and forfeited 

$6,777,527.23 of ill-gotten gains from the scheme. The funds were deposited into the Treasury Forfeiture 

Fund on October 27th, 2014. 

The forfeited funds are expected to go towards restitution.
6 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

Customs and Border Protection (CBP) 

Department of Homeland Security 

CBP Rescues 36 Undocumented Aliens, Seizes $72,500 

Information included in the following forfeiture article is attributed to: Information provided by the CBP Liaison to TEOAF; 

CBP news release, dated April 24, 2015, entitled: “Border Patrol Rescues 49 People in 24 Hours.” 

On April 24, 2014, CBP agents at a checkpoint on highway 281 in South Texas were able to rescue 38 

undocumented immigrants locked in a refrigerated tractor trailer. While at the checkpoint, a canine alerted 

to the vehicle, and the driver was referred to secondary inspection. 

After the driver was referred, agents discovered the immigrants trapped in unsafe conditions. The driver, 

who was a United States citizen, was arrested on alien smuggling charges, and $72,500 hidden in the 

vehicle was seized and forfeited. 

CBP Takes Posession of 2,513 pounds of Cocaine in Puerto Rico 

Information included in the following forfeiture article is attributed to: Customs and Border Protection (CBP) news release, 

dated March 18, 2015, entitled: “Operation Stonegarden Partnership Nets a $32 Million Cocaine Seizure.” 

In conjunction with Puerto Rican law enforcement, Customs and Border Protection (CBP) officials seized 

2,513 pounds of cocaine on board a wooden vessel off the coast of Puerto Rico. The cocaine was valued 

at an estimated $32 million. 

Operation Stonegarden is a program that provides enhanced border security coordination amongst 

partners at the local, tribal, state, and federal level. The program also provides grants to fund key law 

enforcement units at high risk locations, such as the Puerto Rico Police Department’s Joint Forces for 

Rapid Action, which made the initial seizure on the vessel. 

CBP agents provided the intelligence that led the Puerto Rican units to conduct their surveillance mission, 

which led to the seizure of the narcotics, as well as the arrest of 14 undocumented nationals of the 

Dominican Republic. CBP agents took custody of the suspects, as well as the narcotics. 

Coast Guard 

Department of Homeland Security 

Coast Guard Cutter Seizes $180 Million Worth of Cocaine During Deployment 

Information included in the following forfeiture article is attributed to: United States Coast Guard (USCG) news release, dated 

June 30, 2015, entitled: “Seattle-Based Cutter Returns After Seizing Nearly Six Tons of Cocaine.” 

On July 2, 2015, the Seattle-based Coast Guard Cutter Midgett returned to Seattle following a 71-day 

deployment off the coast of Central America. During that time, the Midgett seized over six tons of cocaine 

from seven different vessels, and apprehended 22 suspected drug smugglers. The cocaine’s street value 

was estimated at $180 million. 

“This is the most successful counter-drug patrol I’ve experienced in more than 26 years of service,” said 

Capt. Brendan C. McPherson, Midgett’s commanding officer. “Our success is a testament to our resolve 
SECTION I - OVERVIEW 7

to help defeat the illicit networks that fuel instability within the region and threaten our neighbors. I 

couldn’t be more proud of the extraordinary professionalism and tactical prowess demonstrated by the 

Midgett crew.” 

Figure 2: Coast Guard Cutter Midgett small boat crew returns to the cutter with 1,628 pounds of cocaine jettisoned by 

fleeing smugglers during a night-time pursuit in the Eastern Pacific Ocean near Central America May 26, 2015. 

Coast Guardsmen aboard the Midgett worked closely with various U.S. Navy, Customs and Border 

Protection and Coast Guard maritime patrol aircraft to locate and seize the drug shipments. 

“By interdicting these illegal drug loads far offshore, before it can get into the pipeline within Central 

America, we not only protect our own U.S. border but also the maritime borders of our Western 

Hemisphere neighbors,” McPherson said. 

On one interdiction, a patrol aircraft located a suspected drug smuggling vessel travelling quickly. The 

Midgett launched an armed helicopter along with two boats to intercept the vessel. The vessel’s crew 

threw bales of narcotics into the water and attempted to flee, until the helicopter used disabling fire to the 

outboard engines. The vessel was boarded and Coast Guard personnel recovered 1,628 pounds of cocaine 

and apprehended 3 smugglers. During this same time, a second vessel was spotted and intercepted, with 

the suspects similarly jettisoning bales of contraband. Three more suspected smugglers were apprehended, 

along with 264 more pounds of cocaine. 
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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 2015, the Fund expensed just over 21.1 million in SEF authority as 

compared to $16.3 million in FY 2014, an increase of $4.8 million. 

Super Surplus 

Super Surplus represents the remaining unobligated balance after an amount is reserved for Fund 

operations in the next fiscal year. Super Surplus can be used for any federal law enforcement purpose. In 

FY 2015, there was no available Super Surplus funding, and after returns from prior years, the Fund 

‘transferred in’ $0.5 million, as compared to expensing (transferring out) $155.0 million in FY 2014, a 

decrease of approximately 100 percent. The allocation of Super Surplus resources to bureaus was 

restricted in FY 2015 by the need to meet enacted budget rescissions and sequestration. 
10 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

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 2015 was a banner revenue year by our member bureaus, highlighted by a spike in revenue due to a 

forfeiture on one case exceeding $3.8 billion. FY 2015 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 $18.8 million in FY 2015 as 

compared to $47.7 million in FY 2014. 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 $163.3 million for state and local and 

foreign equitable sharing expenses in FY 2015 as compared to $68.8 million in FY 2014. 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 2015, 

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

Homeland Security. FY 2015 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. In the midst of 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 2015 was a much higher than anticipated year, with regular revenue of $4.6 billion from all sources, 

as compared with FY 2014 revenue of $807 million. As we enter fiscal year 2016, 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 2015, 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 2015 is as follows: 

0BPerformance Measure 

1BFY 2014 

Actual 

2BFY 2015 

Target 

3BFY 2015 

Actual 

4BPercent of forfeited cash proceeds resulting from 

high-impact cases 

87% 5B 6B80% 7B9898% 

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 2015 was 

98 percent, exceeding the new target set in 2011. This compares with our FY 2013 and FY 2014 

performance of 95 percent and 87 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 high-impact 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 2015 

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, 2015. 

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 2015 and 2014. 

Net Position – End of Year. For FY 2015, 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 $6.1 billion versus 

$1.9 billion at the end of FY 2014. Both years closed with a strong and viable net position with which to 

commence the next fiscal year’s operations. It should be noted that the strong net position at the end of 

FY 2015 was aided by a $3.8 billion forfeiture, of which 100% is expected to be returned to victims. 

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 2015, the 

Fund closed with $4.6 billion in Gross Non-Exchange Revenues and a total of $806.6 million for FY 

2014, 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 2015, Treasury Forfeiture Fund bureaus earned a total of $18.8 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 $47.7 million during FY 2014. 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 2014 and FY 2015 was restricted by 

the need to meet enacted budget rescissions, sequestrations, and permanent reductions. 

Net Cost of Operations. For FY 2015, the Net Cost of Operations totaled $204.7 million, up from 

$188.0 million in FY 2014. 
SECTION I - OVERVIEW 13

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

of September 30, 2015, investments totaled $7.0 billion, the same amount invested as of September 30, 

2014. Given the almost identical investment balance, and with continued negligible interest rates on 

Treasury securities during FY 2015, investment income totaled $955 thousand in FY 2015, as compared 

to $806 thousand in FY 2014. 

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 2015, the 

Fund shared a total of $181.3 million with other federal, state and local law enforcement agencies, and 

another $4.6 million with foreign countries. This compares with $68.5 million shared with other federal, 

state and local law enforcement agencies during FY 2014, and $921 thousand with foreign countries. 

Victim Restitution. During FY 2015, the Fund paid $47.6 million in restitution to victims as compared 

to $93.9 million in FY 2014. 

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

2015. Management will continue to emphasize high-impact cases by participating law enforcement 

bureaus. The FY 2015 performance with forfeiture revenue earnings of $4.6 billion from all sources, 

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

the dedicated law enforcement personnel of our participating law enforcement bureaus. 

Statements: Net Cost 

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

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

revenue or applied non-exchange revenue, the remaining financing supports the law enforcement 

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

the disposition of forfeited property. 

On the Statements of Net Cost, the Net Cost of Operations totaled $204.7 million in FY 2015, up from 

$188.0 million in FY 2014. 

Intra-governmental. This cost category totaled $134.2 million in FY 2015, up from $128.2 million in FY 

2014. 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 2015, general property was 

maintained by URS. Real property was maintained by the CWS Asset Management & Sales Group, both 

contracts of the Department of the Treasury. In FY 2015, expenses of these contracts, which comprised 

over 99% of the total expenses for this line, including other contracts, totaled $57.1 million, up from 

$45.7 million expensed in FY 2014. 
14 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

Balance Sheet 

Assets, Liabilities and Net Position 

Total assets of the Fund increased in FY 2015 to $7.9 billion, up from $7.5 billion in FY 2014, an 

increase in asset value of slightly over 5 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 $6.3 billion in FY 2015, up from $2.2 billion in 

FY 2014. During FY 2015, total liabilities of the Fund decreased to $1.8 billion, down from $5.6 billion 

in FY 2014. 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 decreases to $273.1 million in FY 2015, down from $295.5 million in FY 2014. 

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

earnings, increased at the end of FY 2015 to a total of $6.1 billion, up from $1.9 billion at the end of FY 

2014. 

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 2015 Audit. The Fund’s independent auditors have given the FY 2015 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. 15-02, Audit Requirements for Federal Financial Statements. There was one 

management letter finding for FY 2015. 

Summary of Financial Statement Highlights 

Net Position. To summarize, Fund management concluded a highly productive FY 2015 “in the black,” 

with the necessary resources to commence the business of the asset forfeiture program for FY 2016. Due 

to the rescission of $944 million and the sequestration of $399 million, Fund management was not able to 

declare a Super Surplus from FY 2015 operations. 

 
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, highimpact 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. 

Improper Payments Elimination and Recovery Act (IPERA) and Improper Payments Elimination 

and Recovery Improvement Act (IPERIA) Reporting Detail 

The Improper Payments Elimination and Recovery Act of 2010 (IPERA) requires agencies to review their 

programs and activities increasing efforts to recapture improper payments by intensifying and expanding 

payment recapture audits. All agencies are required to develop a method of reviewing all programs to 

identify those that are susceptible to significant erroneous payments. “Significant” means that an 

estimated error rate and a dollar amount exceed the threshold of 2.5 percent of program outlays and $10 

million of total program or activity payments made during the fiscal year reported or $100 million 

regardless of the improper payment percentage of total program outlays. 

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 recapture audits are not necessary and will 

not be implementing them at this time. 

The Improper Payments Elimination and Recovery Improvement Act of 2012 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 2015 and 2014, the Fund reviewed 17,404 and 19,622 payments totaling 

$537.4 million and $886.2 million respectively, and reports no IPERA or DNP reportable improper 

payments.

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

makes the following statements regarding the limitations of the financial statements: 

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

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

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

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

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

 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. 
THIS PAGE INTENTIONALLY LEFT BLANK 

 
SECTION II 

INDEPENDENT AUDITOR’S REPORTS
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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 

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, 2015 and 

2014, and its net costs, changes in net position, and budgetary resources for the years then ended in 

accordance with accounting principles generally accepted in the United States of America. 

Other Matters 

Required Supplementary Information 

Accounting principles generally accepted in the United States of America 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. 
18 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our reports dated January 

29, 2016, on our consideration of the Fund’s internal control over financial reporting and on our tests 

of its compliance with certain provisions of laws, regulations, contracts and other matters. The 

purpose of these reports is to describe the scope of our testing of internal control over financial 

reporting and compliance and the results of that testing, and not to provide an opinion on internal 

control over financial reporting or on compliance. Those reports are an integral part of an audit 

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

control over financial reporting and compliance. 

 

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20 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

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. 

Purpose of this Report 

The purpose of this report is solely to describe the scope of our testing of internal control and the 

result of that testing, and not to provide an opinion on the effectiveness of the Fund’s internal control. 

This report is an integral part of an audit performed in accordance with Government Auditing 

Standards in considering the Fund’s internal control. Accordingly, this communication is not 

suitable for any other purpose. 

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22 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015

This report is an integral part of an audit performed in accordance with Government Auditing 

Standards in considering the Fund’s compliance. Accordingly, this communication is not suitable for 

any other purpose.

 /s/ 

Washington, DC 

January 29, 2016 
THIS PAGE INTENTIONALLY LEFT BLANK 

 
SECTION III 

FINANCIAL STATEMENTS AND NOTES 

 
THIS PAGE INTENTIONALLY LEFT BLANK 

SECTION III - FINANCIAL STATEMENTS AND NOTES 23

Department of the Treasury Forfeiture Fund 

BALANCE SHEETS 

As of September 30, 2015 and 2014 

(Dollars in thousands) 

2015 2014

Assets: 

Intragovernmental:

 Fund balance with Treasury $ 27,618 $ 28,721

 Investments and related interest receivable (Note 3) 7,000,074 7,021,883

 Advances 2 1

 Total Intragovernmental 7,027,694 7,050,605

 Cash and other monetary assets (Note 5) 790,970 426,746

 Accounts Receivable 1,254 1,926

 792,224 428,672

 Forfeited property (Note 6) 

 Held for sale, net of mortgages, liens and claims 84,008 67,687

 To be shared with federal, state or local, or foreign governments 492 1,423

 Total forfeited property, net of mortgages, liens and claims 84,500 69,110

 

Total Assets $7,904,418 $7,548,387

Liabilities: 

 Intragovernmental:

 Accounts payable $ 98,135 $ 155,536

 Total Intragovernmental 98,135 155,536

 Seized currency and other monetary instruments (Note 8) 1,563,506 5,349,315

 Distributions payable (Note 10) 

 State and local agencies and foreign governments 77,666 65,477

 Accounts payable 12,758 5,327

 Deferred revenue from forfeited assets 84,500 69,110

Total Liabilities 1,836,565 5,644,765

 

Commitments and contingencies (Note 15) - -

Net Position: 

 Cumulative results of operations (Note 11) 6,067,853 1,903,622

Total Liabilities and Net Position $7,904,418 $7,548,387

The accompanying notes are an integral part of these financial statements.
24 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

Department of the Treasury Forfeiture Fund 

STATEMENTS OF NET COST 

For the years ended September 30, 2015 and 2014 

(Dollars in thousands) 

2015 2014

Program: 

ENFORCEMENT

   

 Intragovernmental: 

   

 Seizure investigative costs and asset management $ 98,543 $ 89,378

 Other asset related contract services 8,953 10,037 

 Data systems, training and others 26,721 28,749

 Total Intragovernmental 134,217 128,164

 With the Public:

 National contract services seized property and other 57,127 45,688

 Joint operations 13,389 14,154

 Total with the Public 70,516 59,842 

Net Cost of Operations $ 204,733 $ 188,006

   

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

Department of the Treasury Forfeiture Fund 

STATEMENTS OF CHANGES IN NET POSITION 

For the years ended September 30, 2015 and 2014 

(Dollars in thousands)

 2015 2014

   

Net Position – Beginning of Year $ 1,903,622 $ 2,486,628

Financing Sources (Non-Exchange Revenues): 

 Intragovernmental

 Investment interest income 

 Public

 955 806

 Forfeited currency and monetary instruments 4,540,079 664,625

 Sales of forfeited property net of mortgages and claims 55,654 71,906

 Proceeds from participating with other federal agencies 18,801 47,722 

 Value of property transferred in equitable sharing 1,694 1,375 

 Payments in lieu of forfeiture, net of refunds (Note 19) 4,450 7,208

 Reimbursed costs 2,942 3,453

 Other (1,470) 9,463

 Total Gross Non-Exchange Revenues 4,623,105 806,558

Less: Equitable Sharing 

 Intragovernmental 

 Federal (22,569) (609)

 Public 

 State and local agencies (158,754) (67,859)

 Foreign countries (4,570) (921)

 Victim restitution (47,634) (93,867)

 (210,958) (162,647)

 Total Equitable Sharing (233,527) (163,256)

 

Total Non-Exchange Revenues, Net 4,389,578 643,302

Transfers –Out 

 Intragovernmental 

 Super surplus (Note 13) 496 (155,041) 

 Secretary’s enforcement fund (Note 14) (21,110) (16,261)

 Transfer to the general fund (Note 9) - (867,000) 

Total Transfers Out (20,614) (1,038,302)

 

Total Financing Sources - Net 4,368,964 (395,000)

Net Cost of Operations (204,733) (188,006)

 

Net Results of Operations 4,164,231 (583,006)

 

Net Position – End of Year $ 6,067,853 $ 1,903,622

The accompanying notes are an integral part of these financial statements.
26 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

Department of the Treasury Forfeiture Fund 

STATEMENTS OF BUDGETARY RESOURCES 

For the years ended September 30, 2015 and 2014 

(Dollars in thousands) 

2015 2014

Budgetary Resources: 

   

 

 Unobligated balances- beginning of year $ 144,147 $ 888,109 

 Recoveries of prior year unpaid obligations 

 Unobligated balance from prior year budget authority, net 

 25,567 

169,714 

 49,309 

937,418

 Budget authority 4,251,378 (5,422)

 

Total Budgetary Resources

 

$ 4,421,092 $ 931,996 

Status of Budgetary Resources: 

 Obligations incurred $ 765,340 $ 787,849

 

 Unobligated balances – apportioned 

 Unobligated balances – unapportioned 

 $ 3,655,752 

 -

$ 69,874 

 74,273

 Unobligated balances – end of year 3,655,752 $ 144,147

Total Status of Budgetary Resources $ 4,421,092 $ 931,996 

Change in Obligated Balance: 

 Obligated balance, net-beginning of year $ 982,686 $ 924,445

 Obligations incurred 765,340 787,849

 Less: Gross outlays (502,428) (680,299)

 Less: Recoveries of prior year unpaid obligations, actual (25,567) (49,309)

Obligated balance, net – end of year $ 1,220,031 $ 982,686

Budget Authority and Outlays 

 

 Budget authority, net $ 4,251,378 $ (5,422) 

 Net outlays $ 502,428 $ 680,299 

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

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 

(IRS-CI); 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 recent years, significant amounts of Super Surplus funds have been 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 agency 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. 
28 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

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. 

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. 

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 
SECTION III - FINANCIAL STATEMENTS AND NOTES 29

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. 

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 
30 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

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. 

 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, 2015 and 

2014. 

 Advances – This primarily represents cash transfers to Treasury or law enforcement bureaus 

participating in the Fund for orders to be delivered. 
SECTION III - FINANCIAL STATEMENTS AND NOTES 31

 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. Nonentity 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. 

 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. 
32 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

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 

2016. 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). 

 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. 

 
SECTION III - FINANCIAL STATEMENTS AND NOTES 33

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, 2015 and 2014, 

respectively (dollars in thousands):

Entity Assets 

Description Cost Unamortized 

Discount 

Investment, 

Net

September 30, 2015 

 

Treasury Forfeiture Fund - 

35 days 0.0000% U.S. Treasury Bills $2,042,987 ($0) $2,042,987

Interest Receivable 0

Total Investment, Net, and Interest Receivable $2,042,987

Fair Market Value $2,042,987

September 30, 2014 

Treasury Forfeiture Fund - 

35 days 0.0000% U.S. Treasury Bills $2,059,035 ($0) $2,059,035

Interest Receivable 0

Total Investment, Net, and Interest Receivable $2,059,035

Fair Market Value $2,059,002

 
34 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

Description Cost Unamortized 

Discount 

Investment, 

Net

September 30, 2015 

 

Treasury Forfeiture Fund - 

28 days 0.0000% U.S. Treasury Bills $4,148,469 ($0) $4,148,469

Interest Receivable 0

Total Investment, Net, and Interest Receivable $4,148,469

Fair Market Value $4,148,469

This account did not exist as at September 30, 2014.

 

Non-entity Assets 

Description Cost Unamortized 

Discount 

Investment, 

Net

September 30, 2015 

 

Treasury Forfeiture Fund – 

Seized Currency Suspense Account 

35 days 0.0000% U.S. Treasury Bills $808,618 $0 $808,618

Fair Market Value $808,618

September 30, 2014 

 

Treasury Forfeiture Fund – 

Seized Currency Suspense Account 

35 days 0.0000% U.S. Treasury Bills $4,962,848 $0 $ 4,962,848

Fair Market Value $ 4,962,776

 
SECTION III - FINANCIAL STATEMENTS AND NOTES 35

Note 4: Analysis of Non-Entity Assets 

The following schedule presents the non-entity assets as of September 30, 2015 and 2014, 

respectively, (dollars in thousands): 

2015 2014

Seized currency: 

 Intragovernmental Investments (Note 3) $ 808,618 $ 4,962,848

 Cash and other monetary assets (Note 5) 754,888 386,467

Total Non-Entity Assets 1,563,506 5,349,315

Total Entity Assets 6,340,912 2,199,072

Total Assets $ 7,904,418 $ 7,548,387

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 $36.1 million and $40.3 million as of September 

30, 2015 and 2014, 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 $754.9 million and 

$386.4 million as of September 30, 2015 and 2014, respectively. 

Note 6: Forfeited Property/Deferred Revenue

The following summarizes the components of forfeited property (net), as of September 30, 2015 and 

2014, respectively, (dollars in thousands): 

2015 2014 

Held for sale $ 88,427 $ 71,621 

To be shared with federal, State or local, or foreign government 492 1,423 

 Total forfeited property (Note 7) 88,919 73,044 

Less: Allowance for liens and claims (4,419) (3,934)

Total forfeited property, net $ 84,500 $ 69,110 
36 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

Note 7: FY 2015 Analysis of Changes in Forfeited Property and Currency The following schedule presents the changes in the forfeited property and currency balances from October 1, 2014 to Se

(Dollar value is in thousands.)

10/1/14 Financial 

Statement Balance Adjustments 

10/1/14 

Carrying Value Forfeitures Deposits/Sales Dispos

 Value No. Value No. Value No. Value No. Value No. VaCurrency $26,263 - $- - $26,263 - $4,520,028 - $(4,540,760) - $ Other Monetary Instruments 14,016 - - - 14,016 - 546 - (500) - (3,4Subtotal 40,279 - - - 40,279 - 4,520,574 - (4,541,260) - (3,4Real Property 46,941 246 21,535 - 68,476 246 26,307 137 (32,359) (124) (1,2General Property 13,330 17,091 34,873 - 48,203 17,091 52,679 27,090 (24,694) (3,342) (1,4Vessels 960 133 694 - 1,654 133 2,206 133 (1,817) (99) Aircraft 1,203 6 711 - 1,914 6 448 5 (2,066) (7) Vehicles 10,610 2,451 6,488 - 17,098 2,451 34,938 7,736 (30,866) (7,144) (6,1Subtotal 73,044 19,927 64,301 - 137,345 19,927 116,578 35,101 (91,802) (10,716) (8,8Grand Total $113,323 19,927 $64,301 - $177,624 19,927 $4,637,152 35,101 $(4,633,062) (10,716) $(12,3

Victim Restitution Destroyed 

Other 

Adjustments Value Change 2015 Carrying Value

Fair M

Ad

 Value No. Value No. Value No. Value No. Value No. VaCurrency $- - $- - $20,077 - $(615) - $24,993 - Other Monetary Instruments - 

- 

- 

520 - (2) - 11,090 - 

Subtotal - - - - 20,597 - (617) - 36,083 - Real Property - - - - 4,707 46 (145) - 65,765 299 (10,3General Property - - (232) (18,317) 2,728 (284) (6,067) - 71,119 21,037 (47,3Vessels - - (3) (65) (24) (1) (76) - 1,940 101 (9Aircraft - - - (2) 21 1 - - 317 3 (1Vehicles - - (6) (177) 732 231 (372) - 15,364 2,020 (6,7Subtotal - - (241) (18,561) 8,164 (7) (6,660) - 154,505 23,460 (65,5Grand Total $- - $(241) (18,561) $28,761 (7) $(7,277) - $190,588 23,460 $(65,5
SECTION III - FINANCIAL STATEMENTS AND NOTES 

Note 7: FY 2014 Analysis of Changes in Forfeited Property and Currency The following schedule presents the changes in the forfeited property and currency balances from October 1, 2013 to Se

(Dollar value is in thousands.)

10/1/13 Financial 

Statement Balance Adjustments 

10/1/13 

Carrying Value Forfeitures Deposits/Sales Dispos

 Value No. Value No. Value No. Value No. Value No. VaCurrency $11,536 - $- - $11,536 - $622,658 - $(650,437) - $ Other Monetary Instruments 5,610 - - - 5,610 - 8,570 - - Subtotal 17,146 - - - 17,146 - 631,228 - (650,437) - Real Property 44,818 253 18,384 - 63,202 253 22,438 86 (49,807) (139) (1,20General Property 12,571 13,996 31,013 - 43,584 13,996 22,394 26,476 (19,404) (2,742) (3,35Vessels 1,245 84 1,052 - 2,297 84 2,021 169 (1,052) (68) (1,19Aircraft 1,324 9 763 - 2,087 9 1,778 6 (3,255) (7) Vehicles 8,490 1,969 5,617 - 14,107 1,969 36,210 8,704 (28,734) (7,194) (6,94Subtotal 68,448 16,311 56,829 - 125,277 16,311 84,841 35,441 (102,252) (10,150) (12,69Grand Total $85,594 16,311 $56,829 - $142,423 16,311 $716,069 35,441 $(752,689) (10,150) $(12,70

Victim Restitution Destroyed 

Other 

Adjustments Value Change 2014 Carrying Value

Fair M

Ad

 Value No. Value No. Value No. Value No. Value No. VaCurrency $- - $- - $42,522 - $(16) - $26,263 - Other Monetary Instruments - 

- 

- 

(159) - - - 14,016 - 

Subtotal - - - - 42,363 - (16) - 40,279 - Real Property - - - - 34,168 51 (317) - 68,476 246 (21,5General Property - - (181) (19,197) 7,338 961 (2,177) - 48,203 17,091 (34,87Vessels - - - (47) (360) 4 (58) - 1,654 133 (69Aircraft - - - - 1,328 (2) (24) - 1,914 6 (7Vehicles - - (54) (196) 2,625 228 (112) - 17,098 2,451 (6,4Subtotal - - (235) (19,440) 45,099 1,242 (2,688) - 137,345 19,927 (64,30Grand Total $- - $(235) (19,440) $87,462 1,242 $(2,704) - $177,624 19,927 $(64,30
38 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

Note 8: FY 2015 Analysis of Changes in Seized Property and Currency Seized property and currency result primarily from enforcement activities. Seized property is not legally owned badministratively forfeited. Because of the fungible nature of currency and the high level of control necessary over thes

these monies may be returned to their owners in lieu of forfeiture, seized currency is reported as a custodial asset upon than currency is reported as a custodial asset upon forfeiture. (Dollar value is in thousands.) 

9/30/14 Financial 

Statement Balance Seizures Remissions Forfeitures Adjustments 

 Value No. Value No. Value No. Value No. Value No. Currency $5,341,935 - $888,930 - $(150,108) - $(4,520,028) - $(1,799) - Other Monetary Instruments 7,380 - 12 - (155) - (546) - (2,115) - Subtotal 5,349,315 - 888,942 - (150,263) - (4,520,574) - (3,914) - Real Property 189,444 675 63,222 188 (33,712) (104) (26,307) (137) 13,286 19 General Property 

333,232 31,825 87,189 33,276 (48,561) (4,003) (52,679) (27,090) (18,317) (5,739) 

Vessels 5,199 135 4,415 165 (1,233) (24) (2,206) (133) (806) (15) Aircraft 11,646 24 7,938 30 (1,975) (7) (448) (5) (3,382) (3) Vehicles 68,452 4,941 88,836 12,458 (59,812) (4,403) (34,938) (7,736) (7,350) (577) Subtotal 607,973 37,600 251,600 46,117 (145,293) (8,541) (116,578) (35,101) (16,569) (6,315) Grand Total $5,957,288 37,600 $1,140,542 46,117 $(295,556) (8,541) $(4,637,152) (35,101) $(20,483) (6,315) 
SECTION III - FINANCIAL STATEMENTS AND NOTES 

Note 8: FY 2014 Analysis of Changes in Seized Property and Currency Seized property and currency result primarily from enforcement activities. Seized property is not legally owned badministratively forfeited. Because of the fungible nature of currency and the high level of control necessary over thes

these monies may be returned to their owners in lieu of forfeiture, seized currency is reported as a custodial asset upon than currency is reported as a custodial asset upon forfeiture. (Dollar value is in thousands.) 

9/30/13 Financial 

Statement Balance Seizures Remissions Forfeitures Adjustments 

 Value No. Value No. Value No. Value No. Value No. Currency $1,432,731 - $4,845,738 - $(331,022) - $(622,658) - $13,226 - Other Monetary Instruments 18,133 - 3,146 - (45) - (8,570) - (6,783) - Subtotal 1,450,864 - 4,848,884 - (331,067) - (631,228) - 6,443 - Real Property 219,491 609 74,106 292 (44,398) (121) (22,438) (86) (37,315) (19) General Property 

341,854 28,535 80,308 37,841 (46,228) (4,427) (22,394) (26,476) (16,334) (3,648) 

Vessels 5,648 162 2,612 172 (194) (20) (2,021) (169) (725) (10) Aircraft 8,160 15 9,614 20 (1,267) (4) (1,778) (6) (2,500) (1) Vehicles 70,681 5,238 96,132 13,246 (56,290) (4,446) (36,210) (8,704) (5,429) (393) Subtotal 645,834 34,559 262,772 51,571 (148,377) (9,018) (84,841) (35,441) (62,303) (4,071) Grand Total $2,096,698 34,559 $5,111,656 51,571 $(479,444) (9,018) $(716,069) (35,441) $(55,860) (4,071) 
40 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

Note 9: Permanent Reduction/Transfer to the General Fund 

The unobligated balance in the Fund at the end of FY 2013 was approximately $888.1 million. This 

balance is usually available to cover costs related to seizures and forfeitures and certain other law 

enforcement activities. The Bipartisan Budget Act of 2013 permanently cancelled $867.0 million of 

this balance. This permanent reduction or cancellation means that the amount will never be used for 

its intended purposes. 

 

The cancelled funds were transferred to Receipt Account 020 3231 on April 15, 2014, but remained 

on the TFF’s books throughout the remainder of the FY 2014. On September 30, 2014, Treasury 

‘swept’ the cash out of the Receipt Account and into the General Fund, effectively zeroing out the 

account. 

Note 10: Distributions Payable (state and local agencies and foreign governments)

Distributions Payable (state and local agencies and foreign governments) amounted to $77.7 million 

and $65.5 million as of September 30, 2015 and 2014, 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, 2015 and 2014, 

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 and for the years 

ended September 30, 2015 and 2014, respectively, (dollars in thousands): 

2015 2014 

Retained Capital $ 871,901 $ 1,730,212 

Unliquidated Obligations 1,031,721 756,416 

Net Results of Operations 4,164,231 (583,006) 

 $ 6,067,853 $ 1,903,622 

Unliquidated Obligations 

The following summarizes the components of unliquidated obligations as of September 30, 2015 and 

2014 respectively, (dollars in thousands): 

2015 2014 

Equitable Sharing $ 400,408 $ 342,616 

Mandatory 631,313 413,800 

 $1,031,721 $ 756,416 
SECTION III - FINANCIAL STATEMENTS AND NOTES 41

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: Super Surplus 

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 “Super Surplus” balance may be used 

for law enforcement activities of any federal agency. 

Amounts distributed to other federal agencies for law enforcement activities under “Super Surplus” 

requirements amounts to ($0.5) million and $155.0 million in fiscal years 2015 and 2014, 

respectively. 

The following summarizes Super Surplus payments, net of Transfers-In as of September 30, 2015 

and 2014, respectively, (dollars in thousands): 

 2015 2014 

Transfers - Out $ (1,069) $ (155,164) 

Transfers - In 1,565 123 

Total $ 496 $(155,041) 

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 $21.1 million and $16.3 million in fiscal years 2015 and 2014, 

respectively. 

The following summarizes Secretary’s Enforcement Fund payments, net of Transfers-In as of 

September 30, 2015 and 2014, respectively, (dollars in thousands): 

 2015 2014 

Transfers - Out $ (21,725) $ (17,788) 

Transfers - In 615 1,527 

Total $ 21,110 $ 16,261 
42 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

Note 15: Commitments and Contingencies

COMMITMENTS 

A portion of the equitable sharing requests that were in final stages of approval are recognized as 

liabilities as of September 30 (See also Note 10, Distributions Payable). 

In addition to the amounts estimated above, there are other amounts, which may ultimately be shared, 

that are not identified at this time. 

CONTINGENCIES 

In the opinion of the Fund’s management and legal counsel, there are no pending or threatened 

litigation claims for which the amount of potential loss, individually, or in aggregate, will have a 

material adverse effect on the Fund’s financial statements. 

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: 

2015 2014 

Gross Costs $ 204,733 $ 188,006 

Earned Revenues - - 

Net Costs $ 204,733 $ 188,006 

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

Justice. 

Note 17: Disclosures Related to the Statements of Budgetary Resources

The Fund’s net amount of budgetary resources obligated at the end of fiscal years 2015 and 2014 

were $4,778.6 million and $982.7 million, respectively. This amount is 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 2015 and 2014 consist 

of the following (in thousands): 

2015 2014 

Recoveries of Prior Year Unpaid Obligations $ 25,567 $ 49,309
SECTION III - FINANCIAL STATEMENTS AND NOTES 43

Recoveries of prior year obligations are the difference between amounts that Fund management 

obligated (including equitable sharing) and amounts subsequently approved for payment against 

those obligations. 

See pages 53 and 54 ((Section V, Other Accompanying Information, Other, 2(C)) for additional 

disclosures. 

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 as of September 30, 2015 

and 2014, respectively, (dollars in thousands): 

2015 2014 

Payments in Lieu of Forfeiture $ 9,404 $ 7,952 

Refunds (4,954) (744) 

Total $ 4,450 $ 7,208 
44 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

Note 20: Reconciliation of Net Cost of Operations (Proprietary) to Budget 

The reconciliation of Net Cost of Operations to Budget demonstrates the relationship between the 

Fund’s proprietary (net cost of operations) and budgetary accounting (net obligations) information (in 

thousands). 

 2015 2014 

Resources Used to Finance Activities: 

 Budgetary resources obligated 

 Obligations incurred $ 765,340 $ 787,849

 Less: Spending authority from offsetting 

 Collections and recoveries (25,567) (49,309)

 Net Obligations 739,773 738,540

 Other resources 

 Transfers – out (20,614) (1,038,302)

Total Resources Used to Finance Activities 719,159 (299,762)

 

Resources Used to Finance Items not Part of the Net 

 Cost of Operations 

 Change in budgetary resources obligated for goods, 

 services and benefits ordered but not yet provided (273,266) 653,902

 Other resources or adjustments to net obligated 

 resources that do not affect net cost of operations 

 Mortgages and claims (2,679) (2,215)

 Refunds (4,954) (744)

 Equitable Sharing (federal, state/local and foreign) (185,893) (69,389)

 Victim restitution (47,634) (93,867)

Total Resources Used to Finance Items not Part of the Net 

 Cost of Operations (514,426) 487,687

Components not Requiring or Generating ResourcesDepreciation 

 

 - 81 

Total Resources Used to Finance the Net Cost of Operations 204,733 188,006

Net Cost of Operations $ 204,733 $ 188,006

 

 
 

THIS PAGE INTENTIONALLY LEFT BLANK

 
 

SECTION IV 

REQUIRED SUPPLEMENTAL INFORMATION 

(UNAUDITED) 

 
 

THIS PAGE INTENTIONALLY LEFT BLANK 

SECTION IV – REQUIRED SUPPLEMENTAL INFORMATION (UNAUDITED) 45

Intragovernmental Amounts – Assets (Dollars in thousands) 2015 2014 

Partner Agency 

Fund 

Balance 

with 

Treasury 

Accounts 

Receivable/ 

Advances Investments

Fund 

Balance 

with 

Treasury 

Accounts 

Receivable/ 

Advances Investments

Treasury $ 27,618 - $ - $ - $ 28,721 $ - $ -

Departmental Offices - 2 - - 1 -

Bureau of the Fiscal 

Service - - 7,000,074 - - 7,021,883

Totals _$ 27,618 $ 2 $ 7,000,074 $ 28,721 $ 1 $ 7,021,883

Intragovernmental Amounts – Liabilities (Dollars in thousands) 

Partner Agency 

2015 

Accounts 

Payable 

2014 

Accounts 

Payable 

Department of Justice $ 4,493 $ 12,767 

Department of Homeland Security 71,291 109,348 

Central Intelligence Agency - 

 

1,250 

Departmental Offices 

 

10,397 2,227 

FinCen 90 

 

637 

Tax and Trade 171 983 

Internal Revenue Service 11,693 28,324 

Totals $ 98,135 155,536 

Intragovernmental Amounts – Revenues and Costs (Dollars in thousands) 

 2015 2014 

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 $ - $ 134,217 $ - $ 128,164
46 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

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

Partner Agency 

2015 2014 

Transfers

In 

Transfers 

Out 

 Net 

Transfers

 In (Out) 

Transfers 

In 

Transfers 

Out 

Department of Justice $ 43 $ - $ 43 $ - ($ 4,458) Department of Homeland Security 965 (12,378) (11,413) 1,650 (137,781) Central Intelligence Agency - - - - (1,250) Department of Treasury - - - - (4) Internal Revenue Service 1,122 (10,314) (9,192) - (28,009) Financial Crimes 

Enforcement Network 49 - 49 - - 

Tax and Trade - - - - (950) General Fund - - - - (867,000) Department of Defense - (101) (101) - - Department of Commerce - - - - (500) 

 $ 2,179 ($ 22,793) ($ 20,614) $ 1,650 ($ 1,039,952) 
 

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, 2015 

 (Dollars in Thousands) 

(Unaudited) 

8B. Territories 9BValue 10BProperty Value 

State/U.S. Territories Currency Value Property Value 

Alabama $ 1,876 $ - 

Alaska - - 

Arizona 1,729 109 

Arkansas 136 14 

California 13,480 368 

Colorado 1,491 255 

Connecticut 460 - 

D.C. Washington 2 - 

Delaware 94 7 

Florida 11,198 421 

Georgia 2,832 91 

Guam - - 

Hawaii 24 - 

Idaho 42 25 

Illinois 3,762 10 

Indiana 971 - 

Iowa 86 - 

Kansas 139 11 

Kentucky 1,335 - 

Louisiana 115 - 

Maine 12 - 

Maryland 2,579 8 

Massachusetts 1,760 256 

Michigan 1,303 4 

Minnesota 260 30 

Mississippi 329 - 

Missouri 558 - 

Montana 42 - 

Nebraska 3,235 3 

Nevada 1,108 20 

New Jersey 2,817 138 

New Hampshire 7 - 

New Mexico 515 122 

New York 46,308 1,525 

North Carolina 3,445 206 

North Dakota 8 - 

Ohio 4,177 33 

Oklahoma 385 88 

Oregon 1,368 94 

Pennsylvania 3,419 22 

Puerto Rico 443 1 

Rhode Island 36 - 

South Carolina 1,341 72 

South Dakota 229 - 

Tennessee 368 238 

Texas 16,721 1,018 

Utah 71 2 

Subtotal carried forward $ 132,616 $5,191 
48 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

TREASURY FORFEITURE FUND 

Equitable Sharing Summarized by State and U.S. Territories 

For the Year Ended September 30, 2015 

(Dollars in Thousands) 

(Unaudited) 

State/U.S. Territories Currency Value Property Value 

Subtotal brought forward $132,616 $5,191 

Vermont 82 28 

Virgin Islands - - 

Virginia 6,554 - 

Washington 1,337 1 

West Virginia 527 - 

Wisconsin 206 1 

Wyoming - - 

 

 

 Totals $141,322 $5,221 

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, 2015 

(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 42 administrative seizures over $100 thousand over 120 days old totaling $13,294 that had not 

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

end of FY 2015. 
50 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

TREASURY FORFEITURE FUND 

Analysis of Revenue and Expenses and Distributions 

For the Year Ended September 30, 2015 

(Dollars in Thousands) 

Revenue, Expenses and Distributions by Asset Category: 

 

Revenue 

Expenses and 

Distributions

Vehicles $ 12,458 $ 646,688

Vessels 3,460 823,948

Aircraft 3,460 265,445

General Property 11,074 2,615,256

Real Property 38,757 102,437

Currency and monetary instruments 4,561,529 176,964

 4,630,738 4,630,738

Less: 

 Mortgages and claims (2,679) (2,679)

 Refunds (4,954) (4,954)

Add: 

 Excess of net revenues and financing sources over total program 

 expenses 

 - -

Total $ 4,623,105 $ 4,623,105

Revenue, Transfers, Expenses and Distributions by Type of 

Disposition: 

Sales of property and forfeited currency and monetary instruments $ 4,394,269 $ 879,841

Reimbursed storage costs 2,942 463,074

Assets shared with state and local agencies 158,754 158,754

Assets shared with other federal agencies 22,569 22,569

Assets shared with foreign countries 4,570 4,570 

Victim Restitution 47,634 47,634

Destructions - 555,689

Pending disposition - 2,498,607 

 4,630,738 4,630,738

Less: 

 Mortgages and claims (2,679) (2,679)

 Refunds (4,954) (4,954)

Add: 

 Excess of net revenues and financing sources over total program 

 expenses 

 - -

Total $ 4,623,105 $ 4,623,105

The revenue amount of $4,623,105 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 

Schedule of Spending 

For the Years Ended September 30, 2015 and 2014 

(Dollars in Thousands) 

 2015 2014 

What Money is Available to Spend? 

 

 Total resources 

 

$ 862,524 $ 931,996

 Less amount not agreed to be spent (97,184) (69,874)

 Less amount not available to be spent - (74,273) 

 Total Amounts Agreed to be Spent $ 765,340 $ 787,849

 

How was the Money Spent?

 

 

Other contractual services $ 195,562 $ 196,860

 Supplies and materials 17 13

 Grants, subsidies and contributions 177,270 151,824

 Interest and dividends 1 5

 Refunds 370,527 298,062

 Others (i.e. unvouchered, undistributed) 21,963 141,085

 Total Amounts Agreed to be Spent $ 765,340 $ 787,849

 

 

 

Who did the Money go to? 

 Federal $ 164,212 $ 279,922

 Non-Federal : 

 State/Local/Tribal/Foreign Governments 177,274 151,824

 Business and Organizations 56,034 60,260

 Individuals 367,820 295,843

 

 Total Amounts Agreed to be Spent $ 765,340 $ 787,849

 
52 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

TREASURY FORFEITURE FUND 

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

For the Year Ended September 30, 2015 

(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, 2015, the Fund had forfeited 

property held for sale of $88,427. 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, 2015, 

there was $36,083 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 $141,322 and total property transferred was $5,221 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, 2014 which became 

the beginning balance for the Fund on October 1, 2014, as reported in the audited financial 

statements is $1,903,622. 
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, 2015 

(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 $2,679. 

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 $158,754

Foreign countries 4,570

Other federal agencies 22,569

Victim restitution 47,634

 

(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 

$204,733. 

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

30, 2015, was $754,888. This amount includes some funds in the process of being deposited at 

year-end, cash seized in August or September 2015 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 

$97,184 for fiscal year 2015. This excluded $1,343,291 in FY 2015 rescinded authority that 

was classified as “temporary”. If these figures are added to the unobligated balances at the 

end of FY 2015, the figure became $1,440,475. 

The Consolidated Appropriations Act, 2016 (dated December 16, 2015 and enacted on 

December 18, 2015), SEC. 405. BUDGETARY PROVISIONS, among other things stipulated 

that $3,800,000, from funds paid to the United States Government by BNP Paribas S.A. as 

part of, or related to, a plea agreement dated June 27, 2014, entered into between the 

Department of Justice and BNP Paribas S.A., and subject to a consent order entered by the 

United States District Court for the Southern District of New York on May 1, 2015, in United 

States v. BNPP, No. 14 Cr. 460 (S.D.N.Y.), shall be deobligated, if necessary, and shall be 

permanently rescinded. 
54 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2015 

TREASURY FORFEITURE FUND 

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

For the Year Ended September 30, 2015 

(Dollars in Thousands) 

The Fund subsequently made a resulting re-classification of $3,558,568 ($3,800,000 less 

sequestration amount) from the obligated balance to the unobligated balance on the 

Statement of Budgetary Resources. Consequently, the unobligated balance reported on the 

Statement of Budgetary Resources changed from $97,184 to approximately $3,655,752. This 

excluded $1,343,291 in FY 2015 rescinded authority that was classified as “temporary”. If 

these figures are added to the unobligated balances at the end of FY 2015 as reported on the 

Statement of Budgetary Resources, the figure becomes $4,999,043. 

 (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 $ 277,242 63 seizures 

IRS 858,198 139 seizures 

U.S. Secret Service 12,727 8 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 $13,294. 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, 2015, as reported in the audited financial 

statements is $6,067,853. 

(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 2015 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. 
SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 55

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.