Treasury Forfeiture Fund

FY 2016

President’s Budget

February 2, 2015
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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............................................... 6

2.2 – Operating Levels Table...................................................................................................... 6

2B – Appropriations Language and Explanation of Changes..................................................... 6

2C – Legislative Proposals.......................................................................................................... 6

Section 3 – Budget and Performance Plan ................................................................................. 7

3A – Asset Forfeiture Fund......................................................................................................... 7

3.1.1 – Asset Forfeiture Fund Budget Activity Budget and Performance Plan.......................... 8

Section 4 – Supplemental Information........................................................................................ 9

4A – Summary of Capital Investments....................................................................................... 9
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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 account for deposit of non-tax 

forfeitures made pursuant to laws enforced or administered by 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 2014 FY 2015 FY 2016 FY 2015 to FY 2016

Budgetary Resources Actual Estimated Estimated $ Change % Change

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections:

Interest 806 1,000 1,000 0 0.0%

Restoration of sequestration 

reduction 87,459 124,923 94,603 -30,320 -24.3%

Restoration of temporary rescission 950,000 836,000 869,000 33,000 3.9%

Forfeited Revenue 784,221 460,000 413,000 -47,000 -10.2%

Recovery from prior years 49,309 30,000 30,000 0 0.0%

Unobligated balances from prior 

years 888,109 144,132 152,180 8,048 5.6%

Total Revenue/Offsetting

Collections $2,759,904 $1,596,055 $1,559,783 -36,272 -2.3%

Expenses/Obligations

Mandatory Obligations 251

638,583 25 452,272 25 450,000 0 -2,272 0 -0.5%

Secretary's Enforcement Fund 0 16,082 0 28,000 0 30,000 0 2,000 0 7.1%

Super Surplus Obligations 0 133,184 0 0 0 0 0 0 0 0.0%

Total Expenses/Obligations 25 787,849 25 480,272 25 480,000 0 -272 0.0% -0.1%

Sequestration Reduction -124,923 -94,603 0 94,603 -100%

Temporary Rescission -836,000 -869,000 0 869,000 -100%

Permanent Cancellation -867,000 0 -875,000 -875,000 N/A

Total Rescissions/Cancellations -1,827,923 -963,603 -875,000 88,603 -9.2%

Net Results 25 $144,132 25 $152,180 25 $204,783 0 52,603 0.0% 34.6%

1. TEOAF is staffed by Departmental Offices (DO) employees and positions are funded by reimbursable agreement with the 

Treasury Forfeiture Fund

1B – Vision, Priorities and Context

The Treasury Forfeiture Fund (the Fund) is the 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 the Financial Crimes Enforcement Network 

(FinCEN), Federal Law Enforcement Training Center (FLETC), and Alcohol & Tobacco Tax 

and Trade Bureau (TTB).
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The principal revenue-producing member bureaus include the Internal Revenue Service’s 

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

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. 

“High impact” is defined as a cash forfeiture equal to or greater than $100,000 in value. High 

impact forfeitures are those that have the greatest impact on criminal organizations and will help 

to disrupt and dismantle criminal enterprises, which is the Fund’s primary mission. Longer, 

more in-depth investigations are critical to enhancing the impact of forfeiture activity. To this 

end, TEOAF focuses on using mandatory funding authorities to 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. It is also a priority to 

fund revenue-enhancing projects such as major case initiatives, 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. 

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 
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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 

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 2014: FY 2014 was one of the more challenging years since the inception of the Fund in 

1992 with the first-ever cancellation of fund balances in the amount of $867 million as a result of 

the Bipartisan Budget Act of 2013 (P.L. 113-067). In addition, as part of the Consolidated 

Appropriations Act of 2014 (P.L. 113-076), the Fund implemented a rescission of $836 million. 

Finally, $125 million was sequestered from the Fund as part of the government-wide 

sequestration order. In terms of overall revenue, the Fund experienced an above-average year 

with income of over $784 million from forfeitures.

FY 2015 Plans and Changed Projections since the President’s 2015 Budget Submission: 

TEOAF forecasts another successful forfeiture program in FY 2015 with forfeiture revenue 

estimated at $460 million. This estimate does not account for several major cases in which 

TEOAF lacks sufficient detail and/or data to project an outcome or expected revenue at this time.

The FY 2015 Financial Plan reflects a rescission of $869 million in unobligated balances; 

Division E (Financial Services and General Government) of P.L. 113-235 rescinded $769 million

in unobligated balances and TEOAF has assumed an additional $100 million rescission as a term 

and condition of Division L (Homeland Security) of P.L. 113-235. A reduction for sequestration 

is estimated at $95 million ($34 million from 7.3 percent of estimated FY 2015 revenue and $61 

million from 7.3 percent of the prior year rescission of $836 million).

FY 2016 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 $413 million in revenue from forfeitures. Treasury is proposing a permanent 

cancellation of unobligated balances in FY 2016 of $875 million and will continue to provide 

regular updates to Congress on the Fund’s balances prior to enactment of the FY 2016

cancellation.
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Section 2 – Budget Adjustments and Appropriation Language

2.2 – Operating Levels Table

Dollars in thousands

Treasury Forfeiture Fund FY 2014 FY 2015 FY 2016

Object Classification Actual Estimated Estimated 

25.2 Other services from non-Federal Sources 55,149 33,619 33,600

25.3 Other goods and services from Federal Sources 157,570 96,054 96,000

41.0 Grants, subsidies, and contributions 575,130 350,599 350,400

Total Non-Personnel 787,849 480,272 480,000

Total Budgetary Resources $787,849 $480,272 $480,000 

Budget Activities:

Asset Forfeiture 787,849 480,272 480,000

Total Budgetary Resources $787,849 $480,272 $480,000 

FTE* 25 25 25

*TEOAF is staffed by Departmental Offices (DO) employees and funded by reimbursable agreement with the Treasury 

Forfeiture Fund

2B – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

TREASURY FORFEITURE FUND

[(RESCISSION)] (CANCELLATION)

Of the unobligated balances available under this heading, 

[$769,000,000] $875,000,000 are [rescinded] hereby 

permanently cancelled not later than September 30, 2016. 

(Department of the Treasury Appropriations Act, 2015.)

The Budget proposes to add “not 

later than September 30, 2016” to 

the cancellation language to 

allow flexibility on the timing of 

the cancellation and help prevent

disruptions to cash flow.

2C – Legislative Proposals

The Fund has no legislative proposals.
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Section 3 – Budget and Performance Plan

3A – Asset Forfeiture Fund

($480,000,000 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 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. Revenue 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.

Spending Authority 

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 participation 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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3.1.1 – Asset Forfeiture Fund Budget Activity Budget and Performance Plan

Dollars in thousands

Asset Forfeiture Fund Budget Activity 

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Estimated Estimated

Obligations from 

Revenue/Offsetting Collections $483,586 $852,078 $590,415 $527,417 $908,113 $787,849 $480,272 $480,000 

Budget Activity Total $483,586 $852,078 $590,415 $527,417 $908,113 $787,849 $480,272 $480,000 

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

Percent of Forfeited Cash 

Proceeds Resulting from Highimpact Cases (%)87.65 93.11 91.44 76.38 95.01 86.73 80.00 80.00

Key: DISC - Discontinued and B – Baseline

Description of Performance:

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 Fund’s 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, the performance level was achieved at 86.73 percent. For

FY 2015 and FY 2016, 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 Office’s (DO) IT infrastructure 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/budget-performance/Pages/summary-of-capital-investments.aspx.

This website also contains a digital copy of this document.