Treasury Forfeiture Fund
 

FY 2015
 

President’s Budget
 
 

 

 

 

 

Table of Contents
 

Section 1 – Purpose........................................................................................................................3

1A – Mission Statement ..............................................................................................................3

1.1 – Resource Detail Table ........................................................................................................3

1B – Vision, Priorities and Context.............................................................................................3

Section 2 – Budget Adjustments and Appropriation Language ...............................................7

2.2 – Operating Levels Table ......................................................................................................7

2B – Appropriations Language and Explanation of Changes .....................................................7

2C – Legislative Proposals ..........................................................................................................7

Section 3 – Budget and Performance Plan ..................................................................................8

3A – Asset Forfeiture Fund .........................................................................................................8

3.1.1 – Asset Forfeiture Fund Budget and Performance Plan .....................................................9

Section 4 – Supplemental Information ......................................................................................10

4A – Summary of Capital Investments .....................................................................................10

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Section 1 – Purpose 

1A – Mission Statement 

To affirmatively influence the consistent and strategic use of asset forfeiture by our participating 

agencies to disrupt and dismantle criminal enterprises. 

The Treasury Executive Office for Asset Forfeiture (TEOAF) administers the Treasury 

Forfeiture Fund. The Treasury Forfeiture Fund (the Fund) is the receipt account for deposit of 

non-tax forfeitures made pursuant to laws enforced or administered by it participating Treasury 

and Department of Homeland Security agencies. The Fund was established in 1992 as the 

successor to what was then the Customs Forfeiture Fund. 

1.1 – Resource Detail Table 

Dollars in Thousands 

Treasury Forfeiture Fund FY 2013 FY 2014 FY 2015 FY 2014 to FY 2015 

Budgetary Resources Actual Estimated Estimated $ Change % Change 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Revenue/Offsetting Collections 

Interest 

Restoration of sequestration reduction 

Restoration of temporary rescission 

Forfeiture Revenue 

Recovery from Prior Years 

Unobligated Balances from Prior Years 

1,768 1,000 1,000 0 N/A 

0 87,459 0 (87,459) -100.00% 

950,000 950,000 836,000 (114,000) -12.00% 

1,713,113 607,716 412,000 (195,716) -32.21% 

23,887 30,000 30,000 0 N/A 

144,913 888,109 94,174 (793,935) -89.40% 

Total Revenue/Offsetting Collections 0 2,833,681 0 2,564,284 0 1,373,174 0 (1,191,110) .00 -46.45% 

Expenses/Obligations 

Asset Forfeiture 

Mandatory Obligations 22 856,604 25 560,922 25 367,000 0 (193,922) N/A -34.57% 

Secretaryʼs Enforcement Fund 0 8,032 0 19,315 0 0 0 (19,315) N/A -100.00% 

Super Surplus Obligations 0 43,477 0 143,045 0 0 0 (143,045) N/A -100.00% 

Total Expenses/Obligations 22 908,113 25 723,282 25 367,000 0 (356,282) N/A -49.26% 

Rescissions/Cancellations 

Sequestration Reduction (87,459) (43,828) 0 43,828 -100.00% 

Temporary Rescission (950,000) (836,000) 0 (114,000) 13.46% 

Permanent Cancellation 0 (867,000) (950,000) 867,000 -100.00% 

Total Rescissions/Cancellations 0 (1,037,459) 0 (1,746,828) 0 (950,000) 0 796,828 .00 -45.62% 

Net Results 0 888,109 0 94,174 0 56,174 0 5,828 .00 6.19% 

1B – Vision, Priorities and Context 

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 bureaus participating in the Fund. 

This Fund is a special fund. Special funds are federal fund collections that are earmarked by law 

for a specific purpose. The enabling legislation for the Treasury Forfeiture Fund (Title 31 U.S.C. 

9703) defines those purposes for which Treasury forfeiture revenue may be used. In addition to 

the agencies listed below, the funds can be allocated to other law enforcement entities that do not 

have forfeiture authority, such as financial Crimes Enforcement Network (FinCEN), Federal 

Law Enforcement Training Center (FLETC), and Tax and Trade Bureau. 

The principal revenue-producing member bureaus include the Internal Revenue Service’s
 

Criminal Investigation (IRS-CI), Customs and Border Protection (CBP), Immigration and 

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Customs Enforcement (ICE), and the U.S. Secret Service (Secret Service.) The latter three 

bureaus are part of the Department of Homeland Security, transferred as part of the Homeland 

Security Act of 2002. These member bureaus are joined by the U.S. Coast Guard, Department of 

Homeland Security, as the result of a longstanding close law enforcement relationship with CBP 

and ICE. The Treasury Forfeiture Fund supports the Department’s strategic goal to “protect our 

national security through targeted financial actions.” 

Vision: As the administrator for the Treasury Forfeiture Fund, TEOAF performs the following 

functions: 

•	 Promotes the use of proceeds from asset forfeitures to fund programs and activities aimed at 

disrupting criminal enterprises and enhancing forfeiture capabilities; 

•	 Manages Treasury Forfeiture Fund revenues to cover the cost of asset forfeiture program; 

•	 Promotes financial stability and vitality of the Fund; 

•	 Identifies and addresses program risks. 

TEOAF focuses on supporting cases and investigations that result in high impact forfeitures. 

This approach will have the greatest impact on criminal organizations and thus will accomplish 

the ultimate mission of the Fund to disrupt and dismantle criminal enterprises. The enhancement 

of forfeiture activity requires longer more in-depth investigations. To this end, TEOAF 

emphasizes the use of mandatory funding authorities that support large case initiatives including 

the purchase of evidence and information, joint operations expenses, investigative expenses 

leading to seizure, and asset identification and removal teams. In addition, it is also a priority to 

fund revenue-enhancing projects such as major case funding, database development and 

computer forensics through the use of the Secretary’s Enforcement Fund or Super Surplus funds 

when available. 

Goals and Relationship to Departmental Goal: The goal of the Fund is to support the asset 

forfeiture programs of member law enforcement bureaus 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 punish and deter criminal activity. “High impact” is defined as a cash forfeiture 

equal to or greater than $100,000 in value. 

The Goal of the Fund relates to Treasury’s strategic goal to safeguard the financial system and 

use financial measures to counter national security threats. A primary feature of asset forfeiture 

as a criminal sanction is that it disrupts and dismantles criminal syndicates by removing their 

financial assets and, thereby, interfering with and disabling their viability. This strategic feature 

of asset forfeiture relates to the Treasury’s strategic objective to develop, implement, and enforce 

sanctions and other targeted financial measures. 

Priorities: Asset seizure and forfeiture is a priority for the Fund’s participating law enforcement 

organizations, as well as the Department of the Treasury, and is linked directly to the National 

Money Laundering and Southwest Border Strategies. In this regard, TEOAF has identified the 

following priorities for mission success: 

•	 Continue to educate and focus stakeholders, and others, on the vision and mission of 

Treasury’s multi-Departmental asset forfeiture program (i.e., affirmatively influence the 

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consistent and strategic use of asset forfeiture by law enforcement bureaus participating in 

the Fund to disrupt and dismantle criminal enterprises); 

•	 Focus resources in a manner that enhances support of law enforcement’s National Money 

Laundering Strategy, Southwest Border Strategy and anti-terrorism financing efforts; 

•	 Foster and support the investment of forfeiture resources in the needs of our participating law 

enforcement bureaus in order to promote program excellence and strengthen the overall 

quality of criminal investigations; and 

•	 Develop and modify forfeiture training and awareness programs that are responsive to 

today’s needs and continually re-evaluate such training initiatives for best practices. 

Context: The Fund continued in its capacity as a multi-Departmental Fund representing the 

forfeiture interests of law enforcement components of the Department of the Treasury and the 

Department of Homeland Security. In the midst of the budget constraints as well as new growth 

and changes of the program, the Fund’s 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. 

FY 2013: FY 2013 was the highest revenue year since the inception of the Fund in 1993 with 

revenues of over $1.7 billion from forfeitures and recoveries. Among these forfeitures, three 

major cases alone accounted for more than $1.2 billion in gross revenues; and the remaining 

$500 million were from direct forfeitures, equitable shares received from the Department of 

Justice (DOJ), recoveries, and interest. 

In addition to these major cases, bulk cash interdiction at the Southwest Border continues to 

bring in millions of dollars in forfeitures as smugglers attempt to take undeclared U.S. currency 

across the U.S. border into Mexico. 

FY 2014 Plans and Changed Projections since the President’s 2014 Budget Submission: 

TEOAF forecasts a continued successful forfeiture program for FY 2014 with forfeiture revenue 

from cases and prior year obligation recoveries estimated at $608 million, an increase over the 

revenue projection included in the FY 2014 President’s Budget of $593 million. The updated FY 

2014 estimate reflects the net of adjustments for major cases projected for FY 2014 and 

nonrecurring cases in FY 2013. 

In addition, the FY 2014 Financial Plan reflects a permanent cancellation of $867 million 

enacted in the Bipartisan Budget Act of 2013 (P.L. 113-067) and a temporary rescission of $836 

million in unobligated balances enacted in the Consolidated Appropriations Act of 2014 (P.L. 

113-076) from the Fund. In addition, the Fund is subject to a sequestration reduction estimated 

at $43.8 million, or 7.2 percent of estimated FY 2014 revenue. 

FY 2015 Plans: TEOAF intends to maintain a dynamic and evolving asset forfeiture program 

that is responsive to the needs of member law enforcement bureaus. At this time, the Fund 

estimates $443 million in revenue from forfeiture deposits and recoveries. Treasury is proposing 

a permanent cancellation of unobligated balance in FY 2015 of $950 million. 

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Challenges facing the Fund in FY 2014 and FY 2015 from the larger operating 

environment: Challenges facing the Fund in FY 2014 and FY 2015 include appropriations 

decisions for our member bureaus and any related impact on their ability to maintain focus on 

this type of high-impact investigation. In addition, the continuing budget cuts have an impact on 

the overall operations of all bureaus. 

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Treasury Forfeiture Fund FY 2013 FY 2014 FY 2015 

Object Classification Actual Estimated Estimated 

25.2 - Other services 63,191 50,630 25,690 

25.3 - Other purchases of goods & serv frm Govt accounts 182,447 144,656 73,400 

41.0 - Grants, subsidies, and contributions 662,475 527,996 267,910 

Total Non-Personnel 908,113 723,282 367,000 

Total Budgetary Resources $908,113 $723,282 $367,000 

Budget Activities: 

Asset Forfeiture Fund 908,113 723,282 367,000 

Total Budgetary Resources $908,113 $723,282 $367,000 

FTE 25 25 25 

 

 

 

 

Section 2 – Budget Adjustments and Appropriation Language 

2.2 – Operating Levels Table 

Dollars in Thousands 

2B – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

TREASURY FORFEITURE FUND 

Of the unobligated balances available under this 

heading, [$736,000,000]$950,000,000 are 

[rescinded]hereby permanently cancelled not later than 

September 30, 2015. 

(Department of the Treasury Appropriations Act, 2014.) 

The Budget proposes to 

add “not later than 

September 15, 2015” to 

the cancellation 

language. This change is 

consistent with the longstanding language in the 

Justice Forfeiture Fund. 

2C – Legislative Proposals 

The Fund has no legislative proposals for FY 2015. 

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Section 3 – Budget and Performance Plan 

3A – Asset Forfeiture Fund 

($367,000,000 in obligations from revenue/offsetting collections): 

The function of the Fund is to ensure resources are managed to cover the costs of an effective
 

asset seizure and forfeiture program, including the costs of seizing, evaluating, inventorying, 

maintaining, protecting, advertising, forfeiting, and disposing of property. Asset forfeiture is
 

used by federal law enforcement to disrupt and dismantle criminal enterprises. The goal owner 

for this budget activity is the Director of TEOAF. 

Summary of The Fund Authorities: The Fund is a special permanent fund with indefinite
 

authority. Special funds are federal fund collections that are earmarked by law for a specific
 

purpose, and which consist of separate receipt and expenditure accounts. The enabling 

legislation for the Fund (31 U.S.C. § 9703) defines those purposes for which the Fund’s revenue
 

may be used. Revenues deposited to the Fund can be allocated and used as the result of a
 

permanent indefinite appropriation provided by Congress. 

A forfeiture process begins once currency or property is seized. Seized currency is deposited 

into a suspense account (holding account) until forfeited. At that time, the forfeited amount is 

transferred (deposited) to the Fund as revenue. Forfeited properties are usually sold and the
 

proceeds are also deposited into the Fund as revenue. This revenue composes the budget
 

authority for meeting obligations and expenses of the program.
 

Expenses of the Fund are set in a relative priority so that operating costs are met first and may 

not exceed revenues.
 

Type of spending authority of the Fund: 

Mandatory authority items are generally used to meet the operating costs 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 seizure, equitable shares are paid to state and local law enforcement agencies that
 

contributed to the seizure activity at a level proportionate to their involvement. 

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

or U.S. Postal Service (USPS) forfeitures. These shares represent Treasury’s portion in the
 

overall investigative effort that led to a DOJ or USPS forfeiture. SEF revenue is available for 

federal law enforcement purposes of any law enforcement organization participating in the Fund.
 

Super Surplus (SS) represents the remaining unobligated balance at the close of the fiscal year 

after an amount is reserved for Fund operations in the next fiscal year. This balance can be used 

for any federal law enforcement purpose.
 

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Dollars in thousands 

Asset Forfeiture Fund Budget Activity 

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 

Actual Actual Actual Actual Actual Actual Estimated Estimated 

Obligations from $597,287 $483,586 $852,078 $590,415 $527,417 $908,113 $723,282 $367,000 Revenue/Offsetting Collections 

Budget Activity Total $597,287 $483,586 $852,078 $590,415 $527,417 $908,113 $723,282 $367,000 

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 

Actual Actual Actual Actual Actual Actual Estimated Estimated 

Percent of Forfeited Cash 86.91 87.65 93.11 91.44 76.38 95.01 80.0 80.0 

Proceeds Resulting from HighImpact Cases (%) 

Performance Measure 

Key: DISC - Discontinued; B – Baseline 

 

 

 

 

 

 

 

 

3.1.1 – Asset Forfeiture Fund Budget and Performance Plan 

Description of Performance Measure: 

The Fund continues to measure the performance of the participating law enforcement bureaus 

through the use of the 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, which are cases resulting in a cash forfeiture deposit equal to or greater than 

$100,000. 

Focusing on strategic cases and investigations that result in high impact forfeitures will do the 

greatest damage to criminal organizations while accomplishing the ultimate objective, which is 

to disrupt and dismantle criminal activity. Member law enforcement bureaus participating in the 

Fund have met or exceeded the performance target in nine of the eleven fiscal years since 

inception of the measure in FY 2002. For this reason, the target was increased from 75 percent 

through FY 2010 to 80 percent beginning in FY 2011. The Fund maintains a target of 80 percent 

because some cases may be important to pursue, even if they are not high-impact cases and result 

in deposits of less than $100,000. 

For FY 2013, the member bureaus achieved a record high of 95.01 percent high impact 

performance level. For FY 2014, it is anticipated that member bureaus will also exceed the 

target of 80 percent as the result of large major cases. See Section 1B for a discussion of these 

issues. For FY 2015, a target of 80 percent has also been set for this performance measure. 

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Section 4 – Supplemental Information 

4A – Summary of Capital Investments 

TEOAF uses Departmental Offices (DO) systems and is part of DO’s capital investment strategy. 

A summary of capital investment resources, including major information technology and nontechnology investments, can be viewed/downloaded at: http://www.treasury.gov/about/budgetperformance/Pages/summary-of-capital-investments.aspx 

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