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Treasury Forfeiture Fund

ACCOUNTABILITY REPORT 

Fiscal Year 2019

DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C. 

 Member of the American Institute of Certified Public Accountants

 

Certified Public Accountants 

& Consultants 

 
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Message from the Director

I am pleased to present the fiscal year (FY) 2019 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 2019 was another challenging year with a permanent rescission of $200 million as part of the 

Consolidated Appropriations Act of 2019 (P.L. 116-6). Additionally, $54.3 million was sequestered as part of 

the government-wide sequestration order. In terms of overall revenue, FY 2019 was another highly successful 

year for the law enforcement bureaus participating in the Treasury Forfeiture Fund, with earned revenue of $891

million deposited to the Fund. 

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

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

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

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

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

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

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

from 75 percent set for FY 2010 and prior years. For FY 2019, our member bureaus exceeded the target with a 

performance level of 91 percent. 

In FY 2019, we continued prioritizing the strategic use of forfeited funds to enhance our participating agencies’ 

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

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

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

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

It also promotes collaborative use of TFF funded resources by TFF agencies. In union with the 3PML initiative, 

the Fund hosted a multi-agency seminar on 3PML issues in Los Angeles, CA. The seminar specifically 

highlighted the importance of the partnership between law enforcement agencies and financial institutions in 

combating money laundering, and it featured a number of speakers representing financial institutions’ AntiMoney laundering units. The topics also included investigations targeting non-compliant financial institutions, 

trade based money laundering, TFF funded resources available to support our member agencies’ 3PML cases, 

and recent investigative and prosecutorial successes in this investigative area. 

This fiscal year, the Fund was able to provide $599.7 million in Strategic Support (SS) funding. The funding in 

SS is used for federal law enforcement purposes and generally used to fund initiatives that are suited for onetime funding support and align with the program interests of participating federal law enforcement agencies, the 

Treasury Forfeiture Fund, and other identified priorities. This funding enables Treasury Forfeiture Fund law 

enforcement agencies to advance their operational capabilities to include areas such as new cutting edge 

technology, information technology systems, and big data analysis tools in order to respond in real time to 

emerging criminal threats. 

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

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

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

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

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

forward to another successful year in FY 2020. 

 

October 31, 2019 

John Farley, Director 

 Treasury Executive Office for Asset Forfeiture 

 U.S. Department of the Treasury
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Table of Contents 

Section I: Overview 

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

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

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

Program and Fund Highlights ..............................................................................................9 

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

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

Section II: Independent Auditor’s 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 2019 Management Overview 

Profile of the Treasury Forfeiture Fund 

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

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

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

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

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

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

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

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

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

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

damage to criminal infrastructure. 

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

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

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

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

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

in a member-bureau capacity. 

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

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

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

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

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

has 27 authorized full time equivalent positions. 

Strategic Mission 

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

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

dismantle criminal enterprises. 

Strategic Vision 

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

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

organizations while accomplishing the ultimate objective – to disrupt and dismantle criminal enterprises. 
2 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

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 2019 that resulted in the seizure and forfeiture 

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

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

and dismantle criminal enterprises. 

Homeland Security Investigations (HSI)

Department of Homeland Security 

and 

Internal Revenue Service, Criminal Investigation (IRS-CI) 

Department of the Treasury 

Largest Bribe Payment Ever Received by Individual Defendant in FCPA Case. Russian 

Telecommunications Company Agreed to Pay More than $850 Million in Penalties, Including the 

Largest FCPA Criminal Penalty Ever Paid to the United States.

Information included in the following forfeiture summary is attributed to: Information provided by the HSI-ICE and IRS-CI

Liaisons to TEOAF; U.S. Attorney’s March 7, 2019 press release entitled, “Former Uzbek Government Official And Uzbek 

Telecommunications Executive Charged In Bribery And Money Laundering Scheme Involving The Payment Of Nearly $1 

Billion In Bribes”; and TEOAF internal records. 

On March 7, 2019, Gulnara Karimova, a former Uzbek government official was charged in an indictment 

filed in the Southern District of New York with one count of conspiracy to commit money laundering related 

to a bribery scheme. Bekhzod Akhmedov, Karimova’s chief lieutenant and the former CEO of Mobile 

Telesystems PJSC (MTS), the largest telecommunications company in Russia, was charged in the same 

indictment with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), two counts 

of violating the FCPA, and one count of conspiracy to commit money laundering. Those charges stemmed 

from the largest Foreign Corrupt Practices Act bribery scheme ever charged in a decades long corrupt 

scheme to pay Karimova more than $865 million in bribes. 

According to the U.S. Attorney press release, between approximately 2001 and 2012, Karimova and 

Akhmedov agreed that Akhmedov would solicit and obtain corrupt bribes for Karimova from 

telecommunications companies, including MTS and Kolorit, MTS’ Uzbek subsidiary, so that the companies 

could obtain and retain telecommunications business in Uzbekistan. The bribes were paid to Karimova, 

who, in exchange, exercised her corrupt influence over Uzbek telecommunications industry regulators to 

allow the telecommunications companies to obtain lucrative business deals and operate in the Uzbek 

market. MTS and KOLORIT structured and concealed the bribes through various payments to shell 

companies that certain members of MTS and Kolorit management knew were beneficially owned by 

Karimova. In total, Akhmedov and others conspired to pay Karimova more than $865 million in 

bribes. Karimova, Akhmedov, and others agreed to launder those funds in order to promote and conceal 

the bribery scheme. For their part, MTS, Kolorit, and affiliated entities paid Karimova more than $420 

million in bribes. A substantial portion of the illicit funds were transmitted through financial institutions in 
SECTION I - OVERVIEW 3 

the Southern District of New York before they were deposited into bank accounts controlled by Karimova 

in various countries around the world. 

MTS agreed to pay a total criminal penalty of $850 million to the United States, including a $500,000 

criminal fine and $40 million in criminal forfeiture that MTS agreed to pay on behalf of Kolorit. MTS also 

agreed to the imposition of an independent compliance monitor for a term of three years and to implement 

rigorous internal controls and cooperate fully with SDNY’s and DOJ’s ongoing investigation. The $40 

million was split evenly between IRS-CI and HSI and deposited into the TFF in May and June 2019 

respectively. 

This was a joint investigation being conducted by HSI-ICE and IRS-CI, under the auspices of the GIFT and 

prosecuted by the U.S. Department of Justice (DOJ), Fraud Section, FCPA Unit. GIFT is a task force led 

by IRS-CI and funded by the Treasury Executive Office for Asset Forfeiture. 

Internal Revenue Service, Criminal Investigation (IRS-CI) 

Department of the Treasury 

Swiss bank agrees to pay $60.4 Million for hiding US Taxpayers assets. 

Information included in the following forfeiture article is attributed to: Department of Justice news release titled “Bank Admits 

to Helping U.S. Taxpayers Conceal Income and Assets from the United States; Agrees to Pay $60.4 Million” dated August 28, 

2018; from information provided by the IRS-CI Liaison to TEOAF; and internal TEOAF records. 

In the years leading up to 2008, Swiss bank UBS AG and others regularly sent bankers to the United States 

in an effort to assist US Citizens in a corrupt scheme to undermine US tax laws. During the time just before 

and after 2009, several of the larger Swiss banks began providing US clients with an ultimatum to either 

prove the account was properly reported on their US tax return or to close the account. As a result, accounts 

often were transferred to smaller Swiss banks with limited international exposure such as Swiss-based 

Basler Kantonalbank (BKB). 

BKB made a conscious decision to actively seek the deposits of undeclared US bank accounts by 

establishing a network of External Asset Managers (EAM). In many cases, this network of EAMs were 

former UBS AG bankers that opened independent offices and transferred their book of undeclared UBS AG 

(US) accounts to BKB. Although BKB utilized third-party money managers in an effort to shield the bank 

from liability, BKB officials actively assisted the money managers by allowing the EAMs to meet clients 

and BKB executives in the offices of BKB. Additionally, BKB executives would also communicate and 

provide new account paperwork to EAMs as they traveled throughout the US meeting with clients. In the 

Deferred Prosecution Agreement (DPA) and related court documents, BKB admitted that between 2002 

and 2012, it conspired with its employees, external asset managers, and clients to defraud the United States 

with respect to taxes, commit tax evasion, and file false federal tax returns. At its peak in 2010, the bank 

held approximately 1,144 accounts for US customers, with an aggregate value of approximately $813.2 

million. 

According to the terms of the DPA, BKB agreed to cooperate with the United States, the Internal Revenue 

Service (IRS), and other U.S. authorities. BKB also agreed to pay a penalty of $60.4 million, $17.2 million 

in restitution to the IRS for unpaid taxes, a $29.7 million forfeiture to the United States, and a $13.5 million 

dollar fine. The $29.7 million was deposited to the TFF in February 2019. 

“The era of hiding money overseas to evade US tax obligations is over,” said Principal Deputy Assistant 

Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “Financial institutions, 
4 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

professionals, and accountholders are on notice that the Department continues to aggressively pursue these 

offenses and will hold both individuals and entities accountable.”

United States Secret Service (USSS)

Department of Homeland Security

Business email compromise scam bilked company out of $1.6 million 

Information included in the following forfeiture article is attributed to: Miami Herald article “The 21- year-old’s company had 

$1.6 million after 23 days. She’ll be sentenced in July” dated June 13, 2018; from information provided by the US Secret Service 

to TEOAF; and internal TEOAF records. 

In August 2017, the Secret Service’s Miami Electronic Crimes Task Force was contacted regarding a 

possible wire fraud scheme involving a Business E-Mail Compromise perpetrated against Precision Pipeline 

LLC (“Precision”), which is located in Eau Claire, WI. An investigation determined that Precision wired 

the funds to a Bank of America business account under the name of Asjee Luxury, Inc., and not to the 

company with which it thought it was actually doing business. 

A month earlier, the accounting manager at Precision, had received an email from what appeared to be the 

credit manager from Sterling Lumber, one of their vendors, stating that they would not be able to accept 

funds in their existing account, and that funds should be sent to one of their international accounts instead. 

After an email correspondence with the suspected vendor, the accounting manager from Precision 

transferred $1.6 million to a domestic account set up by the vendor. The manger was under the impression 

that she was actually emailing the credit manager at Sterling Lumber, and that the bank account number 

provided was actually held by Sterling, but in reality the emails were from an imposter and the $1.6 million 

went to Asjee Luxury, a fraudulent company setup by a 21-year-old money mule that was involved in the 

fraud scheme. According to the Miami Herald article, the Business E-mail Compromise scheme was a part 

of a $16 million dollar international con game that targeted US businesses. 

The operation to break up the scheme was a six-month collaboration among the United States Secret 

Service, the FBI, the United States Postal Inspection Service, and the Department of Justice. The operation 

led to the arrest of 29 people in Nigeria, 23 in South Florida and others in Canada and Poland. A final order 

of forfeiture for $1,643,674.22 was entered in October 2018, and the funds deposited into the TFF on 

November 2018. 

Coast Guard

Department of Homeland Security 

Coast Guard boards narco-sub carrying 17,000 lbs of cocaine 

Information included in the following forfeiture article is attributed to: CNN article “Watch the US Coast Guard board a narcosub carrying 17,000 pounds of cocaine”; WSVN news article “Dramatic video shows US Coast Guard boarding a narco-sub 

carrying 17,000 pounds of cocaine” dated July 12, 2019; and from information provided by the Coast Guard Liaison to TEOAF. 

On June 18, 2019, in the East Pacific Ocean, two Coast Guard vessels intercepted a semi-submersible that 

was traversing through the ocean. Semi-submersibles are submarine like boats that are half underwater and 
SECTION I - OVERVIEW 5 

half exposed on the surface of the ocean. The semi-submersibles are expensive to build and drug cartels 

have to construct these vessels deep in the jungle to avoid detection. Once built, they are painted blue to 

blend in with the ocean, which makes it difficult for the Coast Guard to detect these vessels without prior 

intelligence or aircraft surveillance. According to the articles, drug cartels are increasing the use of these 

semi-submersibles to transport drugs to the United States. 

The Coast Guard detected the semi-submersible with an aircraft and relayed that information to two guard 

boats, which then intercepted the vessel. In a dramatic video, Coast Guard members are seen ordering the 

vessel to stop and then jumping on the semi-submersible while it is still in motion to force the top of the 

vessel open and exposing the drug smugglers inside. The Coast Guard retrieved 17,000 pounds of cocaine 

worth over $569 million dollars from the semi-submersible. 

The bust was the first time the Coast Guard used a new type of ship on a counter-drug patrol, and Lt. 

Commander Stephen Brickey said the incident is a great example of what these new ships can do. “These 

sorts of capabilities on these ships are what will make us successful in the future,”

Figure 1: Coast Guard footage of semi-submersible narco-sub in the East Pacific Ocean. 
6 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

Figure 2: Coast Guard footage of narco-sub in the East Pacific Ocean. 

Figure 3: Coast Guard footage of coast guard crewmembers boarding the narco-sub in the East Pacific 

Ocean. 
SECTION I - OVERVIEW 7 

Figure 4: Coast Guard footage of coast guard crewmembers boarding the narco-sub in the East Pacific 

Ocean. 

Figure 5: 17,000 pounds of cocaine found in the narco-sub worth over $569 million dollars. 
8 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

Coast Guard offloads $13.5 million worth of cocaine and marijuana at Base Miami Beach 

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

release dated April 19, 2019 entitled: “Coast Guard offloads 970 pounds of cocaine and 550 pounds of marijuana at Base Miami 

Beach”; and from information provided by the Coast Guard Liaison to TEOAF. 

The crew of the Coast Guard Cutter Raymond Evans offloaded approximately 970 pounds of cocaine and 

550 pounds of marijuana at Coast Guard Base Miami Beach worth an estimated $13.5 million wholesale, 

which was seized in international waters. This was the Cutter Raymond Evans first-ever stop, interdiction, 

and seizure of a vessel trafficking illicit narcotics. While patrolling the Caribbean Sea on April 8, 2019, on 

three separate interdictions off the coasts of Jamaica, Haiti, and Cuba, the Cutter Raymond Evans crew 

seized the 550 pounds of marijuana and 970 pounds of cocaine. 

“This was our first deployment outside of the Florida Straits in 18 months and I’m extremely proud of my 

crew for the work they did over the past few weeks to make this patrol successful," said Lt. Patrick Frost, 

commanding officer of the cutter Raymond Evans. “It was exciting to exercise the capabilities of the fast 

response cutter in the Caribbean counter-drug narcotics mission and we’re honored to have played a role in 

the first drug interdiction for Raymond Evans.” 

The interdiction completed by the Cutter Raymond Evans’ crew was part of a recent interagency operation 

to increase intelligence and targeting capabilities in order to disrupt criminal organizations in the Caribbean 

Sea and secure approaches to the U.S. along the southern border. The cutter Raymond Evans crew 

collaborated with Department of Homeland Security components to interdict suspected drug smugglers off 

the coast of Jamaica. 

Figure 1: Crew of Coast Guard Cutter Raymond Evans behind 970 pounds of cocaine and 550 pounds of 

marijuana. 
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 2019, the Fund expensed just over $23 million in SEF authority as 

compared to $37 million in FY 2018, a decrease of $14 million. 

Strategic Support 

Strategic Support (formerly Super Surplus) represents the remaining unobligated balance after an amount 

is reserved for Fund operations in the next fiscal year. Strategic Support can be used for any federal law 

enforcement purpose. In FY 2019, the fund expensed $599.7 million in Strategic Support authority as 

compared to $47.1 million in FY 2018. 
10 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

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 2019 was a successful revenue year by our member bureaus and was another successful year in equitable 

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

or more of our member bureaus played a role. Equitable shares received totaled $10.3 million in FY 2019 

as compared to $49.6 million in FY 2018. 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 $62.7 million for state and local and foreign 

equitable sharing expenses in FY 2019 as compared to $138.5 million in FY 2018. 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 2019, 

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

Homeland Security. FY 2019 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 2019 was another robust year with regular revenue of $891.3 million from all sources, as compared with 

FY 2018 revenue of $1.3 billion. As we enter fiscal year 2020, 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 2019, 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 2019 is as follows: 

0BPerformance Measure 

1BFY 2018 

Actual 

2BFY 2019 

Target 

3BFY 2019 

Actual

4BPercent of forfeited cash proceeds resulting from 

high-impact cases 

9494% 80% 91% 

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

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

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

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

to the overall federal law enforcement mission. The final percentage for FY 2019 was 91 percent, exceeding 

the new target set in 2011. This compares with our FY 2017 and FY 2018 performance of 82 percent and 

94 percent, respectively. 

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

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

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

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

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

$100,000 by the total amount of forfeited cash proceeds for all cases. 
12 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

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, 2019. 

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 2019 and 2018. 

Net Position – End of Year. For FY 2019, the Net Position for the Fund at the end of the year, an indicator 

of the future capability to support ongoing operations of the Fund, totaled $1.1 billion versus $1.4 billion 

at the end of FY 2018. Both years closed with a strong and viable net position with which to commence 

the next fiscal year’s operations.

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

best indicator of regular “business-type” income of the account on an annual basis. For FY 2019, the Fund 

closed with $891.3 million in Gross Non-Exchange Revenues and a total of $1.3 billion for FY 2018, 

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 2019, Treasury Forfeiture Fund bureaus earned a total of $10.3 million in revenue 

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

compared to a total of $49.6 million during FY 2018. 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 2018 and FY 2019 was restricted by the need to 

meet enacted budget rescissions, sequestrations, and permanent reductions. 

Net Cost of Operations. For FY 2019, the Net Cost of Operations totaled $226.2 million, down from 

$239.4 million in FY 2018. 
SECTION I - OVERVIEW 13

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

September 30, 2019, investments totaled $2.1 billion as compared with $2.6 billion invested as of 

September 30, 2018. During FY 2019 investment income totaled $70.4 million, as compared to $47.8 

million in FY 2018. 

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 2019, the Fund shared a total 

of $68.0 million with other federal, state and local law enforcement agencies, and another $314 thousand 

with foreign countries. This compares with $156.7 million shared with other federal, state and local law 

enforcement agencies during FY 2018 and $627 thousand with foreign countries. 

Victim Restitution. During FY 2019, the Fund paid $83.2 million in restitution to victims as compared 

to $524.8 million in FY 2018.

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

2019. Management will continue to emphasize high-impact cases by participating law enforcement bureaus. 

The FY 2019 performance with forfeiture revenue earnings of $891.3 million from all sources, while 

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

dedicated law enforcement personnel of our participating law enforcement bureaus. 

Statements: Net Cost 

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

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

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

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

property. 

On the Statements of Net Cost, the Net Cost of Operations totaled $226.2 million in FY 2019, down from 

$239.4 million in FY 2018. 

Intra-governmental. This cost category totaled $158.7 million in FY 2019, down from $166.9 million in 

FY 2018. 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 2019, general property was 

maintained by AECOM/URS. Real property was maintained by the CWS Asset Management & Sales 

Group, both contracts of the Department of the Treasury. In FY 2019, expenses of these contracts, which 

comprised over 76% of the total expenses for this line, including other contracts, totaled $51.5 million, 

down from $57.0 million expensed in FY 2018. 
14 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

Statements: Budgetary Resources 

As of the end of FY 2019, the Fund has estimated future expenditures and commitments of $473.3 million 

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

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

$609.6 million as reported on the SF-133” Report on Budget Execution” for FY 2019. The unobligated 

balance less reductions would result in $136.3 million remaining at the end of FY 2019. 

Balance Sheet 

Assets, Liabilities and Net Position 

Total assets of the Fund decreased in FY 2019 to $3.0 billion, down from $3.4 billion in FY 2018, a decrease 

in asset value of 12 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 decreased to $1.3 billion in FY 2019, down from $1.7 billion in FY 2018. During FY 

2019, total liabilities of the Fund were $1.9 billion, comparable to the $2.0 billion in FY 2018. 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 $209.1 

million in FY 2019, down from $260.1 million in FY 2018. 

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

retained earnings, decreased at the end of FY 2019 to a total of $1.1 billion, down from $1.4 billion at the 

end of FY 2018. 

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 2019 Audit. The Fund’s independent auditors have given the FY 2019 financial statements an 

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

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

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

or OMB Bulletin No. 19-03, Audit Requirements for Federal Financial Statements. 

Summary of Financial Statement Highlights 

Net Position. To summarize, Fund management concluded a highly productive FY 2019 “in the black,” 

with the necessary resources to commence the business of the asset forfeiture program for FY 2020. Even 

though there was a rescission of $200 million and a sequestration of $54.3 million, Fund management was 

able to declare Strategic Support funding from FY 2019 operations, and will work to recognize the hard 

work of our participating agencies in the allocation of these resources. 
SECTION I - OVERVIEW 15

A Look Forward 

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

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

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

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

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

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

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

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

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

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

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 1.5 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 2019 and 2018, the Fund reviewed 13,482 and 13,580 payments totaling 

$1.638 billion and $1.036 billion respectively, and reports less than .2% and .1% respectively, of IPERA or 

DNP reportable improper payments.

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

the following statements regarding the limitations of the financial statements: 

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

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

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

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

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

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

Independent Auditor's Report on Financial Statements

Acting Inspector General 

Department of the Treasury 

Washington, D.C. 

Report on the Financial Statements 

We have audited the accompanying financial statements of the Department of the Treasury Forfeiture 

Fund (the Fund), which comprise the balance sheets as of September 30, 2019 and 2018, and the related 

statements of net cost, changes in net position, and budgetary resources for the years then ended, and 

the related notes to the financial statements. 

Management’s Responsibility for the Financial Statements

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

accordance with accounting principles generally accepted in the United States of America; this includes 

the design, implementation, and maintenance of internal control relevant to the preparation and fair 

presentation of financial statements that are free from material misstatement, whether due to fraud or 

error. 

Auditor’s Responsibility

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

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

America; the standards applicable to financial audits contained in Government Auditing Standards

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

Management and Budget (OMB) Bulletin No. 19-03, Audit Requirements for Federal Financial 

Statements. Those standards and OMB Bulletin No. 19-03 require that we plan and perform the audit 

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

misstatement. 

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

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

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

error.

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& Consultants 

 

Member of the American Institute of Certified Public Accountants 

 SECTION II –INDEPENDENT AUDITOR’S REPORT 17

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, 2019 and 

2018, 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 2019 

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our reports dated October 31, 

2019, 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 grant agreements, 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. 

Washington, DC 

October 31, 2019 

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

Independent Auditor's Report on Internal Control over Financial Reporting

Acting Inspector General 

Department of the Treasury 

Washington, D.C. 

We have audited, in accordance with auditing standards generally accepted in the United States of 

America; the standards applicable to financial audits contained in Government Auditing Standards, 

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

Management and Budget (OMB) Bulletin No. 19-03, Audit Requirements for Federal Financial 

Statements, the financial statements of the Department of the Treasury Forfeiture Fund (the Fund), 

which comprise the balance sheets as of September 30, 2019 and 2018, and the related statements of 

net cost, changes in net position, and budgetary resources for the years then ended, and the related notes 

to the financial statements, and have issued our report thereon dated October 31, 2019. 

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

30, 2019, we considered the Fund’s internal control over financial reporting (internal control) to 

determine the audit procedures that are appropriate in the circumstances for the purpose of expressing 

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

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

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

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

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

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

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

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

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

timely basis. 

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

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

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& Consultants 

 

Member of the American Institute of Certified Public Accountants 

20 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

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. 

Washington, DC 

October 31, 2019 

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

Independent Auditor's Report on Compliance and Other Matters

Acting Inspector General 

Department of the Treasury 

Washington, D.C. 

We have audited, in accordance with auditing standards generally accepted in the United States of 

America; the standards applicable to financial audits contained in Government Auditing Standards, 

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

Management and Budget (OMB) Bulletin No. 19-03, Audit Requirements for Federal Financial 

Statements, the financial statements of the Department of the Treasury Forfeiture Fund (the Fund), 

which comprise the balance sheets as of September 30, 2019 and 2018, and the related statements of 

net cost, changes in net position, and budgetary resources for the years then ended, and the related notes 

to the financial statements, and have issued our report thereon dated October 31, 2019. 

As part of obtaining reasonable assurance about whether the Fund’s financial statements are free from 

material misstatement, we performed tests of the Fund’s compliance with certain provisions of laws, 

regulations, and contracts, noncompliance with which could have a direct and material effect on the 

determination of financial statement amounts, and certain provisions of other laws and regulations 

specified in OMB Bulletin No. 19-03. However, providing an opinion on compliance with those 

provisions was not an objective of our audit, and accordingly, we do not express such an opinion. 

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

be reported under Government Auditing Standards or OMB Bulletin No. 19-03.

Purpose of this Report 

The purpose of this report is solely to describe the scope of our testing of compliance and the result of 

that testing, and not to provide an opinion on the Fund’s compliance.

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& Consultants 

 

Member of the American Institute of Certified Public Accountants 

22 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019

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.

Washington, DC 

October 31, 2019 
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, 2019 and 2018 

(Dollars in thousands) 

2019 2018

Assets: 

Intragovernmental:

 Fund balance with Treasury $ 34,013 $ 32,425 

 Investments and related interest receivable (Note 3) 2,135,047 2,574,872 

 Total Intragovernmental 2,169,060 2,607,297 

 Cash and other monetary assets (Note 5) 724,091 703,476 

 Accounts Receivable 1,454 815 

 725,545 704,291 

 Forfeited property (Note 6) 

 Held for sale, net of mortgages, liens and claims 92,551 74,699 

 To be shared with federal, state or local, or foreign governments 617 415 

 Total forfeited property, net of mortgages, liens and claims 93,168 75,114 

 

Total Assets $2,987,773 $3,386,702 

Liabilities: 

 Intragovernmental:

 Accounts payable $ 84,938 $ 133,240 

 Total Intragovernmental 84,938 133,240 

 Seized currency and other monetary instruments (Note 8) 1,652,576 1,690,876 

 Distributions payable (Note 10) 

 State and local agencies and foreign governments 22,957 43,127 

 Accounts payable 7,996 8,589 

 Deferred revenue from forfeited assets 93,168 75,114 

Total Liabilities 1,861,635 1,950,946 

Commitments and contingencies (Note 15) - - 

Net Position: 

 Cumulative results of operations (Note 11) 1,126,138 1,435,756 

Total Liabilities and Net Position $2,987,773 $3,386,702 

The accompanying notes are an integral part of these financial statements. 
24 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

Department of the Treasury Forfeiture Fund 

STATEMENTS OF NET COST 

For the years ended September 30, 2019 and 2018 

(Dollars in thousands) 

2019 2018

Program: 

ENFORCEMENT

 Intragovernmental: 

 Seizure investigative costs and asset management $ 98,383 $ 112,193 

 Other asset related contract services 7,118 6,634 

 Data systems, training and others 53,230 48,089 

 Total Intragovernmental 158,731 166,916 

 With the Public:

 National contract services seized property and other 51,526 56,964 

 Joint operations 15,974 15,551 

 Total with the Public 67,500 72,515 

Net Cost of Operations (Note 16) $ 226,231 $ 239,431 

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, 2019 and 2018 

(Dollars in thousands)

2019 2018

Net Position – Beginning of Year $ 1,435,756 $ 2,248,198 

Financing Sources (Non-Exchange Revenues): 

 Intragovernmental

 Investment interest income 

 Public

 70,360 47,840 

 Forfeited currency and monetary instruments 742,856 1,089,225 

 Sales of forfeited property net of mortgages and claims 59,210 99,240 

 Proceeds from participating with other federal agencies 10,259 49,553 

 Value of property transferred in equitable sharing 593 545 

 Payments in lieu of forfeiture, net of refunds (Note 19) 7,058 9,990 

 Reimbursed costs 4,171 3,708 

 Other (3,224) (1,486) 

 Total Gross Non-Exchange Revenues 891,283 1,298,615 

Less: Equitable Sharing

 Intragovernmental

 Federal (5,577) (18,799) 

 Public 

 State and local agencies (62,427) (137,873) 

 Foreign countries (314) (627) 

 Victim restitution (83,206) (524,763) 

 (145,947) (663,263) 

 Total Equitable Sharing (151,524) (682,062) 

Total Non-Exchange Revenues, Net 739,759 616,553 

Transfers –In (Out) 

 Intragovernmental

 Strategic support (Note 13) (599,718) (47,125) 

 Secretary’s enforcement fund (Note 14) (23,428) (37,477) 

 Transfer to the general fund (Note 9) (200,000) (1,104,962) 

Total Transfers Out (823,146) (1,189,564) 

Total Financing Sources - Net (83,387) (573,011) 

Net Cost of Operations (226,231) (239,431) 

Net Results of Operations (309,618) (812,442) 

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

The accompanying notes are an integral part of these financial statements.
26 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

Department of the Treasury Forfeiture Fund 

STATEMENTS OF BUDGETARY RESOURCES 

For the years ended September 30, 2019 and 2018 

(Dollars in thousands) 

2019 2018

Budgetary Resources:

 

 Unobligated balance from prior year budget authority, net 

 (Note 17) 

$ 860,599 $ 685,462 

 Budget authority 771,717 1,147,136 

 

Total Budgetary Resources

 

$ 1,632,316 $ 1,832,598 

Status of Budgetary Resources: 

 Obligations incurred $ 1,022,684 $ 1,007,425 

 Unobligated balances – apportioned 

 Unobligated balances – unapportioned 

$ 596,206 

 13,426 

$ 466,136 

 359,037 

 Unobligated balances – end of year (Note 17) $ 609,632 $ 825,173 

Total Budgetary Resources $ 1,632,316 $ 1,832,598 

Outlays, net 

 

 

 Net Outlays $ 1,072,955 $ 952,274 

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 (IRSCI); the United States Secret Service (Secret Service); the Bureau of Alcohol, Tobacco and Firearms 

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

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

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

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

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

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

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

forfeiture authority. 

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

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

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

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

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

enforcement components of the Departments of Treasury and Homeland Security.

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

no-year account, expenses may be incurred consistent with 31 USC 9705, as amended. A portion of 

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

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

resources in the Fund. Both expense categories are limited in total by the amount of revenue in the 

Fund. The Fund is managed by Treasury's Executive Office for Asset Forfeiture (TEOAF). 

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

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

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

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

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

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

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

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

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

(OMB) regulations and reporting requirements. 
28 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

Note 2: Summary of Significant Accounting Policies 

Basis of Accounting and Presentation

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

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

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

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

related footnotes for all activities and funds. 

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

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

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

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

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

Institute of Certified Public Accountants. 

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

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

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

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

Actual results could differ from those estimates. 

Certain fiscal year 2018 balances may have been reclassified, retitled, or combined with other financial 

statement line items for consistency with the current year presentation. 

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 
SECTION III - FINANCIAL STATEMENTS AND NOTES 29

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

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

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

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

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

not require additional Congressional action for expenditure. 

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

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

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

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

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

joint operations costs are paid directly from the Fund. 

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

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

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

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

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

Revenue and Expense Recognition

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

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

cannot be legally sold. 

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

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

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

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

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

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

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

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

as revenue in the general ledger. 

Funds from Dedicated Collections 

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

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

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

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

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

criteria and constitutes funds from dedicated collections.

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 
30 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

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

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

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

financial statements. 

Treasury securities provide the TFF with authority to draw upon the U.S. Treasury to make future 

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

expenditures, the government finances those expenditures out of accumulated cash balances, by raising 

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

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

Equitable Sharing (Assets Distributed)

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

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

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

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

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

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

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

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

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

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

Entity Assets

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

intragovernmental and non-intragovernmental assets. Intragovernmental balances arise from 

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

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

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

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

distributed. 

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

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

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

Government Securities. 

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

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

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

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

2019 and 2018. 
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. Non-entity assets 

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

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

reflect the custodial/fiduciary nature of these activities. 

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

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

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

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

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

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

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

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

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

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

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

footnotes in accordance with SFFAS No. 3. 
32 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

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

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

Government Securities. 

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

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

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

Liabilities Covered by Budgetary Resources

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

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

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

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

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

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

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

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

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

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

these assets, net of mortgages and claims. 

Liabilities Not Covered by Budgetary Resources

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

Net Position 

The components of net position are classified as follows: 

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

2020. The cap was removed by the Fiscal Year 1997 Omnibus Appropriations Act (PL 104-208). 

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

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

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

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

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

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

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

Payable at Note 10).
SECTION III - FINANCIAL STATEMENTS AND NOTES 33

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

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

Note 3: Investments and Related Interest Receivable

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

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

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

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

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

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

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

The following schedule presents the investments on hand as of September 30, 2019 and 2018, 

respectively (dollars in thousands):

Entity Assets 

Description Cost Unamortized 

Discount 

Investment, 

Net 

September 30, 2019 

Treasury Forfeiture Fund - 

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

Interest Receivable 409

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

Fair Market Value $1,142,421

September 30, 2018 

Treasury Forfeiture Fund - 

28 days 2.0650% U.S. Treasury Bills $1,542,772 ($2,478) $1,540,294

Interest Receivable 444

Total Investment, Net, and Interest Receivable $1,540,738

Fair Market Value $1,540,622
34 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

Non-entity Assets 

Description Cost Unamortized 

Discount 

Investment, 

Net 

September 30, 2019 

Treasury Forfeiture Fund –

Seized Currency Suspense Account 

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

Fair Market Value $992,639

September 30, 2018 

Treasury Forfeiture Fund –

Seized Currency Suspense Account 

28 days 2.0650% U.S. Treasury Bills $1,035,798 ($1,664) $ 1,034,134

Fair Market Value $ 1,034,354

Note 4: Analysis of Non-Entity Assets 

The following schedule presents the non-entity assets as of September 30, 2019 and 2018, respectively 

(dollars in thousands): 

2019 2018

Seized currency: 

 Intragovernmental Investments (Note 3) $ 992,443 $ 1,034,134

 Cash and other monetary assets (Note 5) 660,133 656,742

Total Non-Entity Assets 1,652,576 1,690,876

Total Entity Assets 1,335,197 1,695,826

Total Assets $ 2,987,773 $ 3,386,702
SECTION III - FINANCIAL STATEMENTS AND NOTES 35

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 $64.0 million and $46.7 million as of September 

30, 2019 and 2018, 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 $660.1 million and $656.7 

million as of September 30, 2019 and 2018, respectively. 

Note 6: Forfeited Property/Deferred Revenue

The following summarizes the components of forfeited property (net), as of September 30, 2019 and 

2018, respectively (dollars in thousands): 

2019 2018

Held for sale $ 97,226 $ 78,263

To be shared with federal, State or local, or foreign government 617 415

 Total forfeited property (Note 7) 97,843 78,678

Less: Allowance for liens and claims (4,675) (3,564) 

Total forfeited property, net $ 93,168 $ 75,114
36 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

Note 7: Analysis of Changes in Forfeited Property and Currency 

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

(Dollar value is in thousands)

10/1/18 Financial 

Statement Balance Adjustments 

10/1/18 

Carrying Value Forfeitures Deposits/Sales Disposals/Transfers 

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

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

Other Monetary 

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

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

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

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

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

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

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

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

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

Victim Restitution Destroyed 

Other 

Adjustments Value Change 2019 Carrying Value

Fair Market Value 

Adjustment 

9/30/19 Financial 

Statement Balance 

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

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

Other Monetary 

Instruments - 

- 

- 

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

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

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

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

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

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

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

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

Grand Total $- - $(28,409) (14,893) $75,037 60 $(11,532) - $211,308 14,525 $(49,507) - $161,801 14,525 
SECTION III - FINANCIAL STATEMENTS AND NOTES 37

Note 7: Analysis of Changes in Forfeited Property and Currency 

The following schedule presents the changes in the forfeited property and currency balances from October 1, 2017 to September 30, 2018. 

(Dollar value is in thousands)

10/1/17 Financial 

Statement Balance Adjustments 

10/1/17 

Carrying Value Forfeitures Deposits/Sales Disposals/Transfers 

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

Currency $12,329 - $- - $12,329 - $1,020,421 - $(1,065,906) - $ - - 

Other Monetary 

Instruments 11,079 - - - 11,079 - - - (3,786) - (45) - 

Subtotal 23,408 - - - 23,408 - 1,020,421 - (1,069,692) - (45) - 

Real Property 44,828 217 6,790 - 51,618 217 42,012 135 (41,036) (170) (1,690) (4) 

General Property 12,319 16,708 38,582 - 50,901 16,780 33,407 20,244 (13,669) (1,785) (1,290) (2,673) 

Vessels 1,306 119 171 - 1,477 119 792 106 (1,082) (58) (29) (3) 

Aircraft 813 8 279 - 1,092 8 1,840 8 (2,163) (11) - (1) 

Vehicles 8,557 2,610 9,563 - 18,120 2,610 27,047 7,691 (19,133) (4,394) (6,357) (768) 

Subtotal 67,823 19,734 55,385 - 123,208 19,734 105,098 28,184 (77,083) (6,418) (9,366) (3,449) 

Grand Total $91,231 19,734 $55,385 - $146,616 19,734 $1,125,519 28,184 $(1,146,775) (6,418) $(9,411) (3,449) 

Victim Restitution Destroyed 

Other 

Adjustments Value Change 2018 Carrying Value

Fair Market Value 

Adjustment 

9/30/18 Financial 

Statement Balance 

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

Currency $- - $- - $72,878 - $(236) - $39,486 - $- - $39,486 - 

Other Monetary 

Instruments - 

- 

- 

- - - - 7,248 - - - 7,248 - 

Subtotal - - - - 72,878 - (236) - 46,734 - - - 46,734 - 

Real Property - - - - 9,219 7 330 - 60,453 185 (11,805) - 48,648 185

General Property - - (8,920) (17,369) (891) 845 (17,136) - 42,402 16,042 (22,433) - 19,969 16,042 

Vessels - - (96) (63) 547 12 77 - 1,686 113 (648) - 1,038 113

Aircraft - - - - 1,300 3 (161) - 1,908 7 (1,056) - 852 7 

Vehicles - - (4,703) (2,993)) 1614 216 (1,065) - 15,523 2,362 (7,352) - 8,171 2,362 

Subtotal - - (13,719) (20,425) 11,789 1,083 (17,955) - 121,972 18,709 (43,294) - 78,678 18,709 

Grand Total $- - $(13,719) (20,425) $84,667 1,083 $(18,191) - $168,706 18,709 $(43,294) - $125,412 18,709 
38 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

Note 8: Analysis of Changes in Seized Property and Currency 

Seized property and currency result primarily from enforcement activities. Seized property is not legally owned by the Fund until judicially or 

administratively forfeited. Because of the fungible nature of currency and the high level of control necessary over these assets and the possibility that 

these monies may be returned to their owners in lieu of forfeiture, seized currency is reported as a custodial asset upon seizure. Seized property other 

than currency is reported as a custodial asset upon forfeiture. The following schedule presents the changes in the seized property and currency balances 

from October 1, 2018 to September 30, 2019. (Dollar value is in thousands) 

10/1/18 Financial 

Statement Balance Seizures 

 

Remissions 

 

Forfeitures Adjustments Value 

Changes 

9/30/19 Financial 

Statement Balance 

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

o

.

Value No.

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

Other 

Monetary 

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

- 

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

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

General 

Property 

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

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

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

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

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

Grand Total $2,431,348 36,033 $1,687,132 47,449 $(719,441) (9,876) $(833,324) (22,329) $(132,863) (12,356) (20,526) - $2,412,326 38,921 
SECTION III - FINANCIAL STATEMENTS AND NOTES 39

Note 8: Analysis of Changes in Seized Property and Currency 

Seized property and currency result primarily from enforcement activities. Seized property is not legally owned by the Fund until judicially or 

administratively forfeited. Because of the fungible nature of currency and the high level of control necessary over these assets and the possibility that 

these monies may be returned to their owners in lieu of forfeiture, seized currency is reported as a custodial asset upon seizure. Seized property other 

than currency is reported as a custodial asset upon forfeiture. The following schedule presents the changes in the seized property and currency balances 

from October 1, 2017 to September 30, 2018. (Dollar value is in thousands) 

10/1/17 Financial 

Statement Balance Seizures 

 

Remissions 

 

Forfeitures Adjustments Value Changes 

9/30/18 Financial 

Statement Balance 

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

.

Value No.

Currency $1,516,467 - $1,288,943 - $(70,784) - $(1,020,421) - $(35,908) - $12 - $1,678,309 - 

Other 

Monetary 

Instruments 12,567 - 4 - (4) - - - - - - - 12,567 

- 

Subtotal 1,529,034 - 1,288,947 - (70,788) - (1,020,421) - (35,908) - 12 - 1,690,876 - 

Real Property 212,913 534 92,272 136 (10,161) (51) (42,012) (135) 13,687 4 (9,091) - 257,608 488

General 

Property 

436,381 33,979 119,182 27,966 (28,575) (4,162) (33,407) (20,244) (61,956) (7,108) (16,002) - 415,623 30,431 

Vessels 6,412 117 2,799 155 (269) (12) (792) (106) (1,712) (24) (52) - 6,386 130

Aircraft 15,130 26 6,518 29 (2,301) (4) (1,840) (8) (3,327) (8) (449) - 13,731 35

Vehicles 44,342 4,227 89,091 12,571 (54,020) (3,978) (27,047) (7,691) (2,763) (180) (2,479) - 47,124 4,949 

Subtotal 715,178 38,883 309,862 40,857 (95,326) (8,207) (105,098) (28,184) (56,071) (7,316) (28,073) - 740,472 36,033 

Grand Total $2,244,212 38,883 $1,598,809 40,857 $(166,114) (8,207) $(1,125,519) (28,184) $(91,979) (7,316) (28,061) - $2,431,348 36,033 
40 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

Note 9: Permanent Reduction/Transfer to the General Fund 

The unobligated balance is usually available to cover costs related to seizures and forfeitures and certain 

other law enforcement activities. The Consolidated Appropriations Act of 2019 permanently cancelled 

$200.0 million. This permanent reduction or cancellation means that the amount will never be used for 

its intended purposes. The cancelled funds were transferred to the General Fund on September 27, 

2019. In fiscal year 2018, the Consolidated Appropriations Act of 2018 permanently cancelled $1.1 

billion. The cancelled funds were transferred to the General Fund on June 1, 2018. 

Note 10: Distributions Payable 

Distributions Payable (state and local agencies and foreign governments) amounted to $23.0 million 

and $43.1 million as of September 30, 2019 and 2018, 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, 2019 and 2018, 

respectively. Prior experience with the nature of this account indicated that a substantial portion of 

these requests were certain to be paid out by the Fund during the following fiscal year. 

Note 11: Net Position 

Cumulative Results of Operations

The following summarizes components of cumulative results of operations as of September 30, 2019 

and 2018, respectively (dollars in thousands): 

2019 2018 

Retained Capital $ 1,039,438 $ 1,835,220

Unliquidated Obligations 396,318 412,978

Net Results of Operations (309,618) (812,442) 

$ 1,126,138 $ 1,435,756

Unliquidated Obligations 

The following summarizes the components of unliquidated obligations as of September 30, 2019 and 

2018 respectively (dollars in thousands): 

2019 2018

Equitable Sharing $ 190,164 $ 259,984

Mandatory 206,154 152,994 

 $ 396,318 $ 412,978

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. 
SECTION III - FINANCIAL STATEMENTS AND NOTES 41

Note 13: Strategic Support 

31 USC 9705 (g)(4)(B) allows for the expenditure, without fiscal year limitation, after the reservation 

of amounts needed to continue operations of the Fund. This “Strategic Support” balance may be used 

for law enforcement activities of any federal agency. 

Amounts distributed to other federal agencies for law enforcement activities under “Strategic Support” 

requirements amount to $599.7 million and $47.1 million in fiscal years 2019 and 2018, respectively. 

The following summarizes Strategic Support payments, net of Transfers-In as of September 30, 2019 

and 2018, respectively, (dollars in thousands): 

 2019 2018

Transfers - Out $ (602,972) $ (49,500) 

Transfers - In 3,254 2,375

Total $ (599,718) $ (47,125) 

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 $23.4 million and $37.5 million in fiscal years 2019 and 2018, respectively. 

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

September 30, 2019 and 2018, respectively, (dollars in thousands): 

 2019 2018

Transfers - Out $ (24,615) $ (38,564) 

Transfers - In 1,187 1,087

Total $ (23,428) $ (37,477) 

Note 15: Commitments and Contingencies

COMMITMENTS 

The Fund is subject to equitable sharing claims from participating state and local law enforcement 

agencies. A portion of these claims that were in final stages of approval have been recognized as 

liabilities as of September 30 (See Note 10). 

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

that are not identified at this time. 
42 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

CONTINGENCIES 

As of September 30, 2019, the Fund had future expenditures of $473.3 million (see Note 17) for refunds 

and equitable sharing matters, which are reasonably estimable. The future expenditures are based upon 

the best estimate of costs to be incurred for refunds in light of the progress made by seizing agencies 

and the relevant United States Attorney’s Offices in achieving a resolution to forfeitures. Additionally, 

part of the amount will soon be equitably shared with the Department of Justice pursuant to a longstanding memorandum of agreement. 

In the opinion of the Fund 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:

 

2019 2018

Gross Costs $ 226,231 $ 239,431

Earned Revenues - - 

Net Costs $ 226,231 $ 239,431

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

Justice. 
SECTION III - FINANCIAL STATEMENTS AND NOTES 43

Note 17: Disclosures Related to the Statements of Budgetary Resources

The Fund’s budgetary obligations are fully covered by cash on hand in the Fund and Entity Investments. 

The Fund does not have borrowing or contract authority and, therefore, has no repayment requirements, 

financing sources for repayment, or other terms of borrowing authority. There are no legal 

arrangements, outside of normal government wide restrictions, specifically affecting the Fund’s use of 

unobligated balances of budget authority. 

Adjustments to budgetary resources available at the beginning of fiscal years 2019 and 2018 consist of 

the following (in thousands): 

 

2019 2018

Recoveries of Prior Year Unpaid Obligations $ 35,426 $ 16,163

Other Changes in Unobligated Balance - 770

Total $ 35,426 $ 16,933

The Fund was required to change its methodology for recognizing remissions and equitable sharing 

obligations beginning in FY 2016. Under the newly adopted method, an obligation for refunds or 

remissions will be created only upon receipt of a Ruling Letter from the Department of Justice for 

judicial forfeiture cases or from Fund member agencies for administrative forfeitures. Additionally, 

obligations related to equitable sharing will be recognized upon TEOAF’s approval of Fund member 

agencies’ request for transfers and related distribution percentages and amounts on the Decision Form. 

Consequently, the Fund has future expenditures and commitments from remissions and equitable 

sharing that will be funded from the September 30, 2019 unobligated balance. 

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

from these future expenditures and commitments for fiscal years 2019 and 2018.

2019 2018

Unobligated balance $ 609,632 $ 825,173

Future expenditures (Note 15):

Refund and remissions (341,355) (346,150) 

Equitable sharing (131,961) (88,409) 

Total future expenditures (473,316) (434,559) 

Commitments (Note 15) - - 

Total reductions to unobligated balance (473,316) (434,559) 

Unobligated balance net of future expenditures, and 

commitments $ 136,316 $ 390,614

Note 18: Dedicated Collections 

The Fund is classified as a special fund. All its activities are reported as dedicated collections held for 

later use. 
44 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

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, 2019

and 2018, respectively (dollars in thousands): 

2019 2018

Payments in Lieu of Forfeiture $ 8,337 $ 10,769

Refunds (1,279) (779) 

Total $ 7,058 $ 9,990

Note 20: Reconciliation of Net Cost of Operations to Net Budgetary Outlays 

The reconciliation of Net Cost of Operations to Net Budgetary Outlays demonstrates the relationship 

between the Fund’s proprietary (net cost of operations) and budgetary accounting (net outlays) 

information (in thousands): 

IntraGovernmental IntraDepartmental With the 

Public 

Total 

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

(Increase)/decrease in liabilities:

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

 Other liabilities 32,429 17,274 49,703 

Other financing sources 

 Transfers out (in) without reimbursement 

 

 613,427

 

 9,719 623,146 

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

 

27,147 

 

20,804 692,210 

Components of Net Outlays that are not part of Net 

Cost: 

 Other 154,514 154,514

Total components of Net Outlays that are not part of 

Net Costs

 

 154,514

 

 154,514

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

2019 2018 

Partner Agency 

Fund 

Balance 

with 

Treasury Investments 

Fund 

Balance 

with 

Treasury Investments 

Treasury $ 34,013 - $ - $ 32,425 $ - 

Bureau of the Fiscal 

Service - 2,135,047 - 2,574,872 

Totals _$ 34,013 $ 2,135,047 $ 32,425 $ 2,574,872 

Intragovernmental Amounts – Liabilities (Dollars in thousands) 

Partner Agency 

2019 

Accounts 

Payable 

2018 

Accounts 

Payable 

Department of Justice $ 15,693 $ 10,820 

Department of Homeland Security 57,050 92,754 

Departmental Offices 813 2,209 

Treasury Office of the Inspector 

General 139 135 

 

Tax and Trade 677 1,075 

Internal Revenue Service 10,566 26,247 

Totals $ 84,938 $ 133,240 

Intragovernmental Amounts – Revenues and Costs (Dollars in thousands) 

2019 2018 

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 $ - $ 158,731 $ - $ 166,916
46 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

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

Partner Agency 

2019 2018

Transfers 

In

Transfers 

Out 

Net 

Transfers 

In (Out) 

Transfers 

In

Transfers 

Out 

Net 

Transfers 

In (Out) 

Department of Homeland 

Security $ 3,738 $ (617,205) $ (613,467) $ 2,091 $ (60,833) $ (58,742) 

Internal Revenue Service 663 (9,782) (9,119) 493 (26,231) (25,738) 

Financial Crimes 

Enforcement Network - - 90 - 90 

Tax and Trade - (600) (600) 18 (1,000) (982) 

Central Intelligence Agency - - - 770 - 770 

Department of Justice 40 - 40 - - - 

General Fund - (200,000) (200,000) - (1,104,962) (1,104,962) 

$ 4,441 $ (827,587) $ (823,146) $ 3,462 $(1,193,02) $ (1,189,564) 
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, 2019 

(Dollars in Thousands) 

(Unaudited) 

State/U.S. Territories Currency Value Property Value 

Alabama $ 753 $ - 

Alaska 92 - 

Arizona 710 -12

Arkansas 567 - 

California 10,007 16

Colorado 40 - 

Connecticut 828 9 

D.C. Washington - 

Delaware 11 - 

Florida 10,547 189

Georgia 939 146

Guam 75 - 

Hawaii 58 - 

Idaho - 1 

Illinois 7,406 2 

Indiana 942 - 

Iowa 73 - 

Kansas 2,040 6 

Kentucky 928 7 

Louisiana 169 - 

Maine - - 

Maryland 1,117 224

Massachusetts 584 418

Michigan 68 4 

Minnesota 569 865

Mississippi 1,548 - 

Missouri 1,413 4 

Montana 18 -

Nebraska 2,930 6 

Nevada 109 - 

New Jersey 1,587 47

New Hampshire 22 - 

New Mexico - -

New York 16,141 134

North Carolina 1,019 - 

North Dakota 20 - 

Ohio 1,324 128

Oklahoma 123 41

Oregon 1,046 - 

Pennsylvania 1,337 402

Puerto Rico 1,242 192

Rhode Island 58 - 

South Carolina 364 - 

South Dakota 49 - 

Tennessee 110 11

Texas 6,290 1,387 

Utah 198 32

Subtotal carried forward $75,471 $4,259 
48 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

TREASURY FORFEITURE FUND 

Equitable Sharing Summarized by State and U.S. Territories 

For the Year Ended September 30, 2019 

(Dollars in Thousands) 

(Unaudited) 

State/U.S. Territories Currency Value Property Value 

Subtotal brought forward 75,471 4,259 

Vermont 87 - 

Virgin Islands - - 

Virginia 50 25

Washington 102 - 

West Virginia - - 

Wisconsin 154 8 

Wyoming 153 - 

Totals $76,017 $ 4,292 

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, 2019

(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 86 

administrative seizures over $100 thousand over 120 days old totaling $34,903 that had not been 

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

FY 2019. 
50 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

TREASURY FORFEITURE FUND 

Analysis of Revenue and Expenses and Distributions 

For the Year Ended September 30, 2019

(Dollars in Thousands) 

Revenue, Expenses and Distributions by Asset Category:

Revenue 

Expenses and 

Distributions 

Vehicles $ 12,743 $ 120,750

Vessels 3,540 153,848

Aircraft 3,540 49,564

General Property 11,327 488,322

Real Property 39,646 19,127

Currency and monetary instruments 824,068 63,253

894,864 894,864

Less: 

 Mortgages and claims (2,302) (2,302) 

 Refunds (1,279) (1,279) 

Add: 

 Excess of net revenues and financing sources over total program 

 expenses 

 - - 

Total $891,283 $ 891,283

Revenue, Transfers, Expenses and Distributions by Type of 

Disposition: 

Sales of property and forfeited currency and monetary instruments $ 739,169 $ 170,024

Reimbursed storage costs 4,171 89,486

Assets shared with state and local agencies 62,427 62,427

Assets shared with other federal agencies 5,577 5,577

Assets shared with foreign countries 314 314

Victim Restitution 83,206 83,206

Destructions - 107,384

Pending disposition - 376,446

894,864 894,864

Less: 

 Mortgages and claims (2,302) (2,302) 

 Refunds (1,279) (1,279) 

Add: 

 Excess of net revenues and financing sources over total program 

 expenses 

 - - 

Total $ 891,283 $ 891,283

The revenue amount of $891,283 is from the Statement of Changes in Net Position. This supplemental 

schedule “Analysis of Revenues, Expenses and Distributions” is required under the Treasury Forfeiture Fund 

Act of 1992. 
SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 51

TREASURY FORFEITURE FUND 

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

For the Year Ended September 30, 2019 

(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, 2019, the Fund had forfeited 

property held for sale of $97,226. 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, 2019, there was 

$63,958 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 $76,017 

and total property transferred was $4,292 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, 2018 which became 

the beginning balance for the Fund on October 1, 2018, as reported in the audited financial 

statements is $1,435,756.
52 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2019 

TREASURY FORFEITURE FUND 

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

For the Year Ended September 30, 2019 

(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 $2,302. 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 $62,427

Foreign countries 314

Other federal agencies 5,577

Victim restitution 83,206

(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 $226,231. 

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

2019, was $660,133. This amount includes some funds in the process of being deposited at yearend, cash seized in August or September 2019 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 $609,632 for 

fiscal year 2019. This excluded $200,000 in FY 2019 rescinded authority that was classified as 

“permanent”. If this figure is added to the unobligated balances at the end of FY 2019, the 

figure became $809,632.
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, 2019 

(Dollars in Thousands) 

(D) Any defendant’s property not forfeited at the end of the preceding fiscal year, if the equity in such 

property is valued at $1 million or more.

The total approximate value of such property for the Treasury Forfeiture Fund, at estimated 

values determined by bureau and contractor’s officials, and the number of seizures is as follows:

Bureau Amount Number 

CBP $ 305,076 53 seizures 

IRS 924,438 126 seizures 

U.S. Secret Service 117,087 17 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 $34,903. 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, 2019, as reported in the audited financial 

statements is $1,126,138.

(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 2020 per the fiscal 

year 1997 Omnibus Appropriations Act (PL 104-208). 

(H) A complete set of audited financial statements prepared in a manner consistent with the requirements 

of the Chief Financial Officers Act of 1990. 

The audited financial statements, including the Independent Auditor’s Report, are found in 

Sections II and III. 

(I) An analysis of income and expense showing revenue received or lost: (i) by property category (such 

as general property, vehicles, vessels, aircraft, cash, and real property); and (ii) by type of disposition 

(such as sale, remission, cancellation, placement into official use, sharing with state and local 

agencies, and destruction). 

A separate schedule is presented on page 50.