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Treasury Forfeiture Fund

ACCOUNTABILITY REPORT

Fiscal Year 2014

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) 2014 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 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 temporary rescission of $836 million. Finally, an estimated $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 $807 million from forfeitures and recoveries, as 

compared to the banner year of $1.7 billion received in FY 2013. 

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 2014, our member bureaus exceeded the target 

with a performance level of 87 percent. 

In FY 2014, the Fund continued prioritizing the support of law enforcement efforts targeting Third Party 

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

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

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

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

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

NY. The discussion included trade-based money laundering, black market peso exchange, the use of banks for 

money laundering purposes, and the specific issues and needs of the New York investigative community. 

Contributing to this year’s revenue levels were several investigations of note. An investigation of E-Gold that 

began in 2007, resulted in the forfeiture of over $45 million in 2014. E-Gold, a digital currency enterprise, was 

indicted for money laundering, conspiracy, and operating an unlicensed money transmitting business. A nonprosecution agreement with Liechtensteinische Landesbank AG (LLB-Vaduz), based in Vaduz, Liechtenstein, 

led to the forfeiture of $15.9 million. This investigation revealed that from 2001-2011, LLB-Vaduz assisted a 

significant number of U.S. taxpayers in evading their tax obligations through the use of undisclosed 

Liechtenstein bank accounts. Also, during FY 2014, Alcoa, Inc. subsidiary Alcoa World Alumina pled guilty 

to foreign bribery which resulted in hundreds of millions in fines, penalties, and forfeitures; $14 million was 

forfeited to the Treasury Forfeiture Fund. The investigation found that Alcoa World Alumina used shell 

companies to bribe foreign officials in order to procure inflated contracts. 

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 2015. 

John Farley, Acting Director 

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........................................................................................46

Section V:

Other Accompanying Information...........................................................................................48
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SECTION I - OVERVIEW 1

Treasury Forfeiture Fund

FY 2014 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 Executive Office for Asset Forfeiture (EOAF), which provides management oversight of the Fund, 

falls under the auspices of the Under Secretary for Terrorism and Financial Intelligence. EOAF’s 

organizational structure includes the Fund Director, Legal Counsel, Assistant Director for Financial 

Management and Assistant Director for Policy. Functional responsibilities are delegated to various team 

leaders. EOAF is located in Washington, D.C., and currently has 25 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 2014

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 2014 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.

Immigration and Customs Enforcement (ICE) 

Department of Homeland Security 

Infosys Forfeits $5 Million as Part of Settlement Agreement

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

article by Miriam Jordan and Joel Schectman entitled “U.S. Accuses Infosys of 'Fraud and Abuse' in Visa Case”, published 

October 30, 2013 by the Wall Street Journal; article by Aaron Smith entitled “Infosys Agrees to Record U.S. Immigration 

Settlement,” published by CNN on October 30, 2013.

On October 30, 2013, India-based software company Infosys agreed to a settlement of $34 million to 

resolve charges of visa fraud. 

Infosys is one of the largest participants of United States B-1 visas. The B-1 visa is a short-term business 

visa, unlike the HB-1, which is a long-term work visa. The B-1 is more easily attained, and significantly 

less expensive. 

Federal prosecutors from the Eastern District of Texas alleged that Infosys systematically deceived the 

government as to the nature of work visa applicants would be conducting in the United States in order to 

procure the less expensive B-1 visas. Furthermore, prosecutors alleged that Infosys as a matter of practice 

advised visa-applicants how to fill out forms to misrepresent the nature of work to be performed. Infosys 

has denied the government’s charges.

Of the $34 million settlement, $5 million was forfeited to the Treasury Forfeiture Fund. 

HSI Sells Three Brooklyn Warehouses at Auction for $10.85 Million

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

On May 22, 2014, Homeland Security Investigations (HSI) sold three Brooklyn warehouses for a total of 

$10.85 million. The warehouses were used by a cocaine smuggling ring, and had been the center of a 

legal battle for over 20 years.

In November 1990, the then United States Customs Service, Associate SAC Newark Office, began 

investigating Anthony Viola, Sr. for the importation of narcotics into the United States via the seaports of 

New Jersey and New York after the seizure of 262 kilograms of cocaine seized at the Port of Newark, NJ. 

Viola owned the Brooklyn-based Cimbali Espresso, Blue Chip Coffee, and Caffe Nadia Companies. 

Viola was utilizing these businesses and commercial properties that he owned and operated to accept 

large shipments of coffee beans from Colombia and extract the cocaine that was secreted within.
SECTION I - OVERVIEW 3

Viola was arrested by special agents on July 22, 1991 for the importation of and conspiracy to import 

narcotics into the United States. At the time of his arrest, he was also charged with receiving and 

possessing property stolen from interstate commerce. On April 8, 1993, Viola was convicted of numerous 

crimes including conspiring and attempting to possess cocaine, the trafficking of stolen goods, and 

violating the Racketeer Influenced and Corrupt Organizations Act (RICO). Viola was subsequently 

sentenced to a term of life imprisonment. 

At the time of his arrest, the government moved to forfeit the commercial properties located in Brooklyn, 

NY that Viola used to facilitate his illicit activities. Viola submitted numerous motions during his 

incarceration to prevent the forfeiture of these properties. The government eventually obtained a final 

order of forfeiture for the warehouses on July 16, 2013.

Internal Revenue Service, Criminal Investigation (IRS-CI) 

Department of the Treasury 

LLB-Vaduz Pays $15,899,000 as Part of Non-Prosecution Agreement

Information included in the following forfeiture article is attributed to: DOJ press release entitled “Manhattan U.S. Attorney 

Announces Agreement With Liechtenstein Bank To Pay $23.8 Million To Resolve Criminal Tax Investigation,” published July 

30, 2013; Forbes article by Robert Woods entitled “Liechtenstein Bank Pays $23.8M To IRS For Helping Americans 

Evade Taxes,” published July 31, 2013.

Lichtenstein-based LLB-Vaduz agreed to a Non-Prosecution Agreement (NPA) with the Department of 

Justice, which led to the forfeiture of $15,899,000 to the Treasury Forfeiture Fund. From 2001 to 2011, 

LLB-Vaduz assisted U.S. taxpayers in evading their tax obligations by assisting them in filing false IRS 

tax forms and keeping undeclared bank accounts, which LLB-Vaduz maintained and allowed third-party 

investment advisers to open.

LLB-Vaduz admitted it knew that a large number of U.S. taxpayers were using their undeclared LLBVaduz accounts to avoid paying taxes. They also knew it was likely that many other U.S. taxpayers held 

undeclared accounts for the same unlawful purpose, because significant numbers of U.S. taxpayers 

employed structures to hold their accounts, instructed LLB-Vaduz to use code names or numbers to refer 

to them on account statements, instructed LLB-Vaduz not to mail such documents to them in the United 

States, and instructed LLB-Vaduz not to disclose their identity to the IRS, among other things. At the end 

of 2006, LLB-Vaduz held more than $340 million of undeclared assets on behalf of U.S. taxpayers in 

more than 900 accounts.

According to the Southern District of New York, the NPA agreement factored in the significant level of 

cooperation provided by LLB-Vaduz, and the voluntary steps the financial institution had taken to begin 

addressing the problem.

In addition to the forfeiture action, LLB-Vaduz was also required to pay over $7.5 million to the IRS as 

restitution.
4 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

Alcoa Subsidiary Forfeits $14 Million as Part of Settlement in Bribery Case

Information included in the following forfeiture article is attributed to: article by John W. Miller entitled “Alcoa Affiliate 

Pleads Guilty to Bribery,” published by the Wall Street Journal on January 9, 2014; and DOJ Press Release “Alcoa World 

Alumina Agrees to Plead Guilty to Foreign Bribery and Pay $223 Million in Fines and Forfeiture,” published January 9, 2014.

On January 9, 2014, Alcoa, Inc. subsidiary Alcoa World Alumina pled guilty in the Western District of 

Pennsylvania to violating the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). In 

conjunction with the plea, Alcoa World Alumina agreed to pay $384 million in fines, penalties, and 

forfeiture. Of that amount, $14 million was forfeited to the Treasury Forfeiture Fund. 

The investigation found that Alcoa World Alumina had used shell companies to bribe foreign officials, 

including members of the royal family of Bahrain, in order to procure inflated contracts. According to 

court documents, the company used a third party in order to facilitate the kickback scheme, and that from 

2005 to 2009, an estimated $188 million markup was paid on contracts, with tens of millions being paid 

in bribes.

Alcoa, Inc., which has a controlling interest in Alcoa World Alumina, has denied any involvement in 

these actions.

United States Secret Service (USSS) 

Department of Homeland Security

E-Gold Forfeits over $45M in Criminal Proceeds Derived from Child Pornography, Identity Theft 

and Credit Card Fraud (seizure 192-2013-001)

Information included in the following forfeiture article was provided by the USSS Liaison to TEOAF.

E-gold, a digital currency enterprise engaged in the business of exchanging traditional forms of currency 

for precious metals held in electronic form known as “e-gold,” was first indicted in 2007 on charges of 

money laundering, conspiracy, and operating an unlicensed money transmitting business. In the spring of 

2010, the U.S. Secret Service was contacted by a law firm representing E-Gold to reach a deal. An 

internal review of bank accounts owned by E-Gold identified numerous accounts containing proceeds of 

criminal activities, including child pornography, credit card fraud, identity theft, investment fraud, and the 

sale of stolen or non-existent goods on the internet. As a result of the investigation, over $86,000,000 in 

bank accounts were voluntarily surrendered to the U.S. Secret Service. Of that amount, $20,429,148.73

was returned to over 5,000 victims. 

On April 22, 2014, an order of forfeiture for $45,816,817.89 was issued by U.S District Judge Ellen 

Hounder, Federal Judicial District of Maryland, Northern Division, for the value of approximately 12,868 

accounts held in the E-Gold Remission bank account. This forfeiture was deposited in the Treasury 

Forfeiture Fund on May 12, 2014. Remaining balances were either forfeited in earlier fiscal years, or are 

still in adjudication.
SECTION I - OVERVIEW 5

Denarius Financial Group forfeits over $4M in Criminal Proceeds Derived from Money 

Laundering and Bank Fraud (seizure 147-2012-006)

Information included in the following forfeiture article was provided by the USSS Liaison to TEOAF.

Figure 1: Denarius Financial Group processed payments for illegal gambling sites.

This investigation began in late 2011, when the U.S. Secret Service, Greenville, S.C. Resident Office, 

initiated an investigation into Denarius Financial Group, a money service business located in Canada. 

Investigation discovered that Denarius was a major source of illegal funding to other money service 

businesses located in the United States for the purpose of processing payments for online gambling 

websites. Further investigation revealed that Denarius facilitated the laundering of money for various 

nefarious organizations throughout Canada and concealed the true nature of their business, bank fraud, to 

banks in the United States.

On February 2, 2012, a bank account totaling $5,676,556.88, held in the name of Denarius Financial 

Group, was seized based on a federal seizure warrant for violations of 18 U.S.C. § 1956, Money 

Laundering.

The defendants reached a settlement agreement on November 7, 2013, which returned $1,545,039.09 to 

Denarius Financial Group and forfeited the remainder. As a result, on November 12, 2013, a Consent 

Order of Forfeiture for $4,131,517.79 was issued by U.S. District Judge J. Michelle Childs, District of 

South Carolina. This civil forfeiture was deposited in the Treasury Forfeiture Fund on December 9, 2013.

 

 
6 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

 

 

Customs and Border Protection (CBP) 

Department of Homeland Security 

Border Patrol Seizes $373,986 from Deported Aliens Attempting Re-Entry

Information included in the following forfeiture article is attributed to: Information provided by the CBP liaison to TEOAF.

On December 23, 2013, Border Patrol agents observed two subjects making an illegal entry into the 

United States east of the Oroville, Washington Port of Entry. Through the use of remote video 

surveillance systems, Border Patrol agents successfully tracked and encountered the two individuals 

carrying large backpacks along a trail approximately two miles south of the international boundary. 

Border Patrol agents arrested the two individuals for their illegal entry into the United States. A search 

incident to arrest yielded varying denominations of U.S. currency totaling $373,986. Both subjects were 

presented for prosecution under 8 U.S.C. § 1326 (Re-Entry after Deportation). The currency was 

administratively forfeited in March 2014.

Figure 2: Currency concealed in a backpack.

 
SECTION I - OVERVIEW 7

 

 

 

 

Coast Guard 

Department of Homeland Security 

Coast Guard Seizes Cocaine Shipment Valued at $38 Million 

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

November 12, 2013, entitled: “Coast Guard, Caribbean Border Interagency Group authorities seize $38 million dollar cocaine 

shipment in the Caribbean Sea” 

On November 8, 2013, the U.S. Coast Guard (USCG), U.S. Customs and Border Protection (CBP) and 

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) authorities 

disrupted a maritime illegal drug shipment, seizing 54 bales of cocaine, weighing 3,306 pounds, in the 

Caribbean Sea. The seized cocaine had an estimated street value of over $38 million.

While on a routine patrol, the crew of a CBP maritime patrol aircraft detected three men aboard a 

suspicious Panga-type vessel operating with no navigational lights and carrying suspected contraband, 

approximately 73 nautical miles south of Naguabo, Puerto Rico.

Coast Guard Watchstanders were notified of the developing situation by the crew of the CBP aircraft, and 

diverted the Coast Guard Cutter Cushing and launched an HC-144 Ocean Sentry Maritime Patrol Aircraft

to interdict the suspect vessel.

The crew of the CBP maritime patrol aircraft observed the men onboard the suspect vessel jettison their 

cargo overboard as they fled the area at a high rate of speed following a pursuit by Coast Guard and CBP 

authorities in the area.

The Cushing and a CBP marine unit arrived on-scene and began to recover the jettisoned cargo from the 

water. After searching all night and day, the crew of the Cushing recovered 33 bales and the CBP marine 

unit recovered 21 bales from the water. The custody of the entire shipment, 54 bales, was transferred to 

awaiting ICE HSI special agents for investigation and final disposition.

Coast Guard Seizes $34 million worth of Cocaine

Information included in the following forfeiture article is attributed to: USCG

United States Southern Command news release, dated October 23, 2013, entitled: “Coast Guard seizes $34 million cocaine 

shipment, detains 3 smugglers in the Caribbean Sea” 

On October 18, 2013, the U.S. Coast Guard seized 2,546 pounds of cocaine, a go-fast vessel and detained 

three suspected smugglers during an at-sea interdiction in the Caribbean Sea south of St. Croix, U.S. 

Virgin Islands.

The crew of a patrolling fixed-wing HC-144 Ocean Sentry maritime patrol aircraft from Air Station 

Miami detected a suspicious 30-foot go-fast vessel. The vessel was spotted carrying three suspected 

smugglers and what appeared to be multiple bales of suspected contraband.

Coast Guard watchstanders at Sector San Juan diverted a Coast Guard 33-foot Special Purpose Craft Law 

Enforcement (SPC-LE) pursuit boat from Boat Station San Juan and the Coast Guard Cutter Drummond 

to interdict the suspect vessel. The suspected smugglers became compliant as the Coast Guard pursuit 

boat came alongside the suspect vessel.
8 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

The interdiction was a result of a multi-agency law enforcement effort in support of the Coast Guard’s 

Operation Unified Resolve, the Caribbean Border Interagency Group’s (CBIG) Operation Caribbean 

Guard, and the U.S. Department of Justice Caribbean Corridor Strike Force (CCSF). 

CCSF is an initiative created to disrupt and dismantle major drug trafficking organizations operating in 

the Caribbean. CCSF is part of the High Intensity Drug Trafficking Area (HIDTA) and Organized Crime 

Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking 

organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean 

as a transshipment point for further distribution to the United States. The initiative is composed of HSI, 

the U.S. Attorney for the District of Puerto Rico, Drug Enforcement Administration, FBI, the Coast 

Guard, CBP and Puerto Rico Police Department’s Joint Forces for Rapid Action.

The drug shipment is estimated to have a wholesale value of more than $34 million dollars.

Figure 3: Twenty-five bales of cocaine weighing 2,546 pounds and with an estimated wholesale value of $34 million.
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. § 9703) 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 2014, the Fund expensed just over $16.2 million in SEF authority as 

compared to $12.1 million in FY 2013, an increase of about $4.1 million. The allocation of SEF resources 

to bureaus was restricted in FY 2013 and FY 2014 by the need to meet enacted budget rescissions. 

Super Surplus 

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

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

FY 2014, the Fund expensed $155.0 million in Super Surplus authority as compared to $82.3 million in 

FY 2013, an increase of approximately 88 percent.
10 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

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 2014 was an above average revenue year by our member bureaus and 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 $47.7 million 

in FY 2014 as compared to $76.7 million in FY 2013. 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 $67.9 million for state and 

local equitable sharing expenses in FY 2014 as compared to $300.5 million in FY 2013. In FY 2014 the 

Fund expensed $921 thousand for equitable sharing expenses with foreign countries that assisted our 

bureaus with their cases; in FY 2013, the Fund did not share with foreign countries. 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 2014, 

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

Homeland Security. FY 2014 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 2014 had an above average year, with regular revenue of $807 million from all sources, as compared 

with FY 2013 revenue of $1.7 billion. As we enter fiscal year 2015, 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 2014, 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 2014 is as follows:

Performance Measure

FY 2013

Actual

FY 2014

Target

FY 2014

Actual

Percent of forfeited cash proceeds resulting from 

high-impact cases

95% 80% 87%

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 2014 was 

87 percent, exceeding the new target set in 2011. This compares with our FY 2012 and FY 2013

performance of 76.38 percent and 95 percent, respectively. 

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

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

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

This measure was put into effect beginning with FY 2002, and in all but 3 years, member bureaus met the 

target for high-impact forfeitures.

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

$100,000 by the total amount of forfeited cash proceeds for all cases. 
12 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

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, 2014. 

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 2014 and 2013.

Net Position – End of Year. For FY 2014, 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 $1.9 billion versus 

$2.5 billion at the end of FY 2013. 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 2014, the 

Fund closed with $806.6 million in Gross Non-Exchange Revenues and a total of $1.7 billion for FY 

2013, reflecting two, highly successful revenue years for the Treasury Forfeiture Fund. FY 2013 was an 

unusually high revenue year due to one forfeiture of more than $881.0 million.

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 2014, Treasury Forfeiture Fund bureaus earned a total of $47.7 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 $76.7 million during FY 2013. 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 2013 and FY 2014 was restricted by 

the need to meet enacted budget rescissions.

Net Cost of Operations. For FY 2014, the Net Cost of Operations totaled $188.0 million, down from 

$203.1 million in FY 2013. 
SECTION I - OVERVIEW 13

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

of September 30, 2014, investments totaled $7.0 billion, up from $4.1 billion invested as of September 30, 

2013. Given the increased investment balance, and with continued negligible interest rates on Treasury 

securities during FY 2014, investment income totaled $806 thousand in FY 2014, as compared to just 

under $1.8 million in FY 2013. Interest rates decreased in FY 2014, and of the $7.0 billion invested in FY 

2014, $4.0 billion was invested in the last few months of the FY.

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 2014, the 

Fund shared a total of $68.5 million with other federal, state and local law enforcement agencies, and 

another $921 thousand with foreign countries. This compares with $408.2 million shared with other 

federal, state and local law enforcement agencies during FY 2013; the Fund did not have an opportunity 

to share with foreign countries in FY 2013. In FY 2013, the Fund had an unusually high significant 

equitable sharing on one case, which is why there is significant difference in equitable sharing from FY 

2014 to FY 2013. 

Victim Restitution. During FY 2014, the Fund paid $93.9 million in restitution to victims as compared 

to $74.6 million in FY 2013.

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

2014. Management will continue to emphasize high-impact cases by participating law enforcement 

bureaus. The FY 2014 performance with forfeiture revenue earnings of $806.6 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 $188.0 million in FY 2014, down from 

$203.1 million in FY 2013.

Intra-governmental. This cost category totaled $128.2 million in FY 2014, down from $133.6 million in 

FY 2013. 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 2014, general property was 

initially maintained by VSE Corporation, which transitioned to URS. Real property was maintained by 

the CWS Asset Management & Sales Group, all contracts of the Department of the Treasury. In FY 

2014, expenses of these contracts, which comprised over 99% of the total expenses for this line, including 

other contracts and depreciation, totaled $45.7 million, down from $54.8 million expensed in FY 2013.
14 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

Balance Sheet

Assets, Liabilities and Net Position

Total assets of the Fund increased in FY 2014 to $7.5 billion, up from $4.4 billion in FY 2013, an 

increase in asset value of slightly over 70 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 $2.2 billion in FY 2014, down from $2.9 billion 

in FY 2013. During FY 2014, total liabilities of the Fund increased to $5.6 billion, up from $1.9 billion in 

FY 2013. 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 $295.5 million in FY 2014, down from $443.3 million in FY 2013.

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

retained earnings, decreased at the end of FY 2014 to a total of $1.9 billion, down from $2.5 billion at the 

end of FY 2013. 

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 2014 Audit. The Fund’s independent auditors have given the FY 2014 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. 14-02, Audit Requirements for Federal Financial Statements. There are no 

management letter findings for FY 2014.

Summary of Financial Statement Highlights

Net Position. To summarize, Fund management concluded a highly productive FY 2014 “in the black,” 

with the necessary resources to commence the business of the asset forfeiture program for FY 2015. Fund 

management declared a Super Surplus from FY 2014 operations and will work to recognize the hard work 

of our participating bureaus 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, highimpact major case initiatives, and training to support these areas of emphasis. This has and will continue 

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

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

and Recovery Improvement Act (IPERIA) Reporting Detail 

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

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

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

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

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

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

regardless of the improper payment percentage of total program outlays.

Currently the Fund conducts an internal review and analysis for its major contracts. The contract activity 

is high dollar value for each payment with limited volume. This activity has low risk, but based on the 

high dollar value requiring minimal resources, the Fund will continue to conduct these internal contract 

audits. Based on this analysis, the Fund has determined that recapture audits are not necessary and will 

not be implementing them at this time.

The Improper Payments Elimination and Recovery Improvement Act of 2012 requires agencies to 

incorporate the Do Not Pay Initiative (DNP) to further reduce improper payments. The Fund uses the 

Death Master File and the System of Award Management as part of a continuous monitoring process and 

post payment review. During FY 2014, the Fund reviewed 19,622 payments totaling $886.2 million and 

reports no IPERA or DNP reportable improper payments.

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

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

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

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

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

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

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

• The statements should be read with the realization that they are for a component of the U.S. 

government, a sovereign entity. One implication of this is that liabilities cannot be liquidated without 

legislation that provides resources to do so.
THIS PAGE INTENTIONALLY LEFT BLANK
SECTION II

INDEPENDENT AUDITOR’S REPORTS
THIS PAGE INTENTIONALLY LEFT BLANK

 Member of the American Institute of Certified Public Accountants

Independent Auditor's Report on Financial Statements

Inspector General

United States 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, 2014 and 2013, 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 Bulletin No. 14-02, Audit Requirements for 

Federal Financial Statements. Those standards require that we plan and 

perform the audits 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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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, 2014 and 

2013, 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 2014

Other Reporting Required by Government Auditing Standards

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

31, 2014, on our consideration of the Fund’s internal control over financial reporting and on our tests 

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

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

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

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

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

control over financial reporting and compliance.

/s/

Washington, DC

October 31, 2014

 Member of the American Institute of Certified Public Accountants

Independent Auditor's Report on Internal Control over Financial 

Reporting

Inspector General

United States 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. 14-02, 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, 2014 and 2013, 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, 2014. 

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

the year ended September 30, 2014, 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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20 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

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.

/s/

Washington, DC

October 31, 2014

 Member of the American Institute of Certified Public Accountants

Independent Auditor's Report on Compliance and Other Matters

Inspector General

United States 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. 14-02, 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, 2014 and 2013, 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, 2014. 

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. 14-02. 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. 14-02.

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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Suite 200

Washington, DC 20036

Tel: 202-857-1777

Fax: 202-857-1778

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22 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

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

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

any other purpose.

/s/

Washington, DC

October 31, 2014
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, 2014 and 2013

(Dollars in thousands)

2014 2013

Assets:

Intragovernmental:

 Fund balance with Treasury $ 28,721 $ 26,091

 Investments and related interest receivable (Note 3) 7,021,883 4,062,862

 Advances 1 75

 Total Intragovernmental 7,050,605 4,089,028

 Cash and other monetary assets (Note 5) 426,746 229,086

 Accounts Receivable 1,926 1,554

 428,672 230,640

 Forfeited property (Note 6)

 Held for sale, net of mortgages, liens and claims 67,687 59,670

 To be shared with federal, state or local, or foreign governments 1,423 532

 Total forfeited property, net of mortgages, liens and claims 69,110 60,202

 Capitalized software, net of accumulated depreciation (Note 9) - 873

Total Assets $7,548,387 $4,380,743

Liabilities:

 Intragovernmental:

 Accounts payable $ 155,536 $ 67,421

 Total Intragovernmental 155,536 67,421

 Seized currency and other monetary instruments (Note 8) 5,349,315 1,450,864

 Distributions payable (Note 11)

 State and local agencies and foreign governments 65,477 308,565

 Accounts payable 5,327 7,063

 Deferred revenue from forfeited assets 69,110 60,202

Total Liabilities 5,644,765 1,894,115

Commitments and contingencies (Note 16)

Net Position:

 Cumulative results of operations (Note 12) 1,903,622 2,486,628

Total Liabilities and Net Position $7,548,387 $4,380,743

The accompanying notes are an integral part of these financial statements.
24 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

Department of the Treasury Forfeiture Fund

STATEMENTS OF NET COST

For the years ended September 30, 2014 and 2013

(Dollars in thousands)

2014 2013

Program:

ENFORCEMENT

 Intragovernmental: 

 Seizure investigative costs and asset management $ 89,378 $ 99,030

 Other asset related contract services 10,037 7,151

 Data systems, training and others 28,749 27,457

 Total Intragovernmental 128,164 133,638

 With the Public:

 National contract services seized property and other 45,688 54,818

 Joint operations 14,154 14,627

 Total with the Public 59,842 69,445

Net Cost of Operations $ 188,006 $ 203,083

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, 2014 and 2013

(Dollars in thousands)

2014 2013

Net Position – Beginning of year $ 2,486,628 $ 1,555,895

Financing Sources (Non-Exchange Revenues): 

 Intragovernmental

 Investment interest income 

 Public

 806 1,768

 Forfeited currency and monetary instruments 664,625 1,560,460

 Sales of forfeited property net of mortgages and claims 71,906 51,901

 Proceeds from participating with other federal agencies 47,722 76,747

 Value of property transferred in equitable sharing 1,375 2,490

 Payments in lieu of forfeiture, net of refunds (Note 20) 7,208 6,957

 Reimbursed costs 3,453 3,029

 Other 9,463 7,625

 Total Gross Non-Exchange Revenues 806,558 1,710,977

Less: Equitable Sharing

 Intragovernmental

 Federal (609) (107,668)

 Public

 State and local agencies (67,859) (300,537)

 Foreign countries (921) 0

 Victim restitution (93,867) (74,583)

 (162,647) (375,120)

 Total Equitable Sharing (163,256) (482,788)

Total Non-Exchange Revenues, Net 643,302 1,228,189

Transfers –Out

 Intragovernmental

 Super surplus (Note 14) (155,041) (82,267) 

 Secretary’s enforcement fund (Note 15) (16,261) (12,106)

 Transfer to the general fund (Note 10) (867,000) 0 

Total Transfers Out (1,038,302) (94,373)

Total Financing Sources - Net (395,000) 1,133,816

Net Cost of Operations (188,006) (203,083)

Net Results of Operations (583,006) 930,733

Net Position – End of Year $ 1.903,622 $ 2,486,628
26 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

Department of the Treasury Forfeiture Fund

STATEMENTS OF BUDGETARY RESOURCES

For the years ended September 30, 2014 and 2013

(Dollars in thousands)

2014 2013

Budgetary Resources:

 

 Unobligated balances- beginning of year $ 888,109 $ 144,913

 Recoveries of prior year unpaid obligations

 Unobligated balance from prior year budget authority, net

 49,309

937,418

 23,887

168,800

 Budget authority (5,422) 1,627,422

 

Total Budgetary Resources

 

$ 931,996 $ 1,796,222

Status of Budgetary Resources:

 Obligations incurred $ 787,849 $ 908,113

 Unobligated balances – apportioned

 Unobligated balances – unapportioned 

 $ 69,874

 74,273

$ 888,109

 0

 Unobligated balances – end of year $ 144,147 $ 888,109

Total Status of Budgetary Resources $ 931,996 $ 1,796,222

Change in Obligated Balance:

 Obligated balance, net-beginning of year $ 924,445 $ 550,841

 Obligations incurred 787,849 908,113

 Less: Gross outlays (680,299) (510,622)

 Less: Recoveries of prior year unpaid obligations, actual (49,309) (23,887)

Obligated balance, net – end of year $ 982,686 $ 924,445

Budget Authority and Outlays

 

 Budget authority, net $ (5,422) $ 1,627,422

 Net outlays $ 680,299 $ 510,622

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 9703. The Fund was created to consolidate all Treasury law enforcement bureaus 

under a single forfeiture fund program administered by the Department of the Treasury (Treasury). 

Treasury law enforcement bureaus fully participating in the Fund upon enactment of this legislation 

were the U.S. Customs Service (Customs); the Internal Revenue Service – Criminal Investigation

(IRS-CI); the United States Secret Service (Secret Service); the Bureau of Alcohol, Tobacco and 

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

Enforcement Training Center (FLETC). FinCEN and FLETC contribute no revenue to the Fund, 

however in recent years, significant amounts of Super Surplus funds have been allocated to FinCEN 

towards Bank Secrecy Act (BSA) Information Technology (IT) modernization, a tool used in the 

fight against money laundering and other criminal activity. The U.S. Coast Guard, formerly part of 

the Department of Transportation, now part of the Department of Homeland Security (DHS), also 

participates in the Fund. However, all Coast Guard seizures are treated as Customs seizures because 

the Coast Guard lacks forfeiture authority. 

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

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

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

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

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

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

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

no-year account, expenses may be incurred consistent with 31 USC 9703, 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 (EOAF).

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

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

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

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

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

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

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

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

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

Budget (OMB) regulations and reporting requirements.
28 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

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 9703(f)(2)(H), and the Chief Financial Officers Act of 1990. Beginning 

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

requires executive agencies, including the Treasury, to produce audited consolidated accountability 

reports and related footnotes for all activities and funds.

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

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

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

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

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

American Institute of Certified Public Accountants. 

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

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

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

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

period. Actual results could differ from those estimates.

Allowable Fund Expenses

The majority of the revenue recorded by the Fund is utilized for operating expenses or distributed to 

state and local law enforcement agencies, other federal agencies, and foreign governments, in 

accordance with the various laws and policies governing the operations and activities of the Fund. 

Under the TFF Act, the Fund is authorized to pay certain expenses using discretionary or mandatory 

funding authorities of the Fund.

Discretionary authorities include but may not be limited to: the payment of expenses for the purchase 

of awards for information or assistance leading to a civil or criminal forfeiture involving any law 

enforcement bureau participating in the Fund; purchase of evidence or information that meet the 

criteria set out in 31 USC 9703(a)(2)(B); payment for equipment for vessels, vehicles, or aircraft 

available for official use as described by 31 USC 9703(a)(2)(D) and (F); reimbursement of private 

persons for expenses incurred while cooperating with a Treasury law enforcement organization in 

investigations; publication of the availability of certain awards; and payment for training foreign law 

enforcement personnel with respect to seizure or forfeiture activities of the Fund. Discretionary 

expenses are subject to an annual, definite Congressional appropriation from revenue in the Fund. 

Expenses from the mandatory authorities of the Fund include but are not limited to: all proper 

expenses of the seizure, including investigative costs and purchases of evidence and information 

leading to seizure, holding costs, security costs, etc., awards of compensation to informers under

section 619 of the Tariff Act (19 USC 1619); satisfaction of liens against the forfeited property, and 

claims of parties with interest in forfeited property; expenses incurred by state and local law 

enforcement agencies in joint law enforcement operations with law enforcement agencies 

participating in the Fund; and equitable sharing payments made to state and local law enforcement 
SECTION III - FINANCIAL STATEMENTS AND NOTES 29

agencies in recognition of their efforts in a Fund seizure leading to forfeiture. These mandatory 

expenses are paid pursuant to the permanent indefinite authorities of the Fund; are only limited by 

revenue in the Fund each year and do not require additional Congressional action for expenditure. 

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

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

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

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

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

local joint operations costs are paid directly from the Fund.

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

such, employees of both Departments may perform certain operational and administrative tasks 

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

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

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

Revenue and Expense Recognition

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

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

cannot be legally sold.

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

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

participating with certain other federal agencies is recognized when the payment is received. 

Operating costs are recorded as expenses and related liabilities when goods are received or services 

are performed. Certain probable equitable sharing liabilities existing at year end are accrued based 

on estimates.

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

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

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

as revenue in the general ledger.

Funds from Dedicated Collections

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

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

identified revenues and other financing sources are required by statute to be used for designated 

activities, benefits, or purposes, and must be accounted for separately from the Government’s general 

revenues. In accordance with SFFAS 43, Funds from Dedicated Collections, all of the TFF’s 

revenue meets these criteria and constitutes funds from dedicated collections.

The Federal Government does not set aside assets to pay future benefits or other expenditures 

associated with funds from dedicated collections. The cash collected from funds from dedicated 

collections is deposited in the U.S. Treasury, which uses the cash for general government purposes. 

Treasury securities are issued to the TFF as evidence of its receipts. Treasury securities are an asset to 

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

government, these assets and liabilities offset each other from the standpoint of the government as a 
30 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

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

financial statements.

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

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

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

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

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

Equitable Sharing (Assets Distributed)

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

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

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

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

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

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

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

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

recognized. Revenue and /or expenses are recognized for property and currency, which are 

distributed to or shared with non-federal agencies, per SFFAS No. 7, Accounting for Revenue and 

Other Financing Sources.

Entity Assets

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

intragovernmental and non-intragovernmental assets. Intragovernmental balances arise from 

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

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

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

balances, accrued interest on seized balances, receivables, and forfeited property, which are held for 

sale or to be distributed.

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

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

and seized currency held in the Customs Suspense Account that had been invested in short term 

U.S. Government Securities. 

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

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

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

a receivable at year end were considered to be fully collectible as of September 30, 2014 and 

2013.

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

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

• Cash and Other Monetary Assets – This includes forfeited currency on hand not yet deposited 

and forfeited currency held as evidence.

• Forfeited Property and Currency – Forfeited property and currency is recorded in the 

respective seized property and forfeited asset tracking systems at the estimated fair value at the 

time of seizure. However, based on historical sales experiences for the year, properties are 

adjusted to reflect the market value at the end of the fiscal year for financial statement reporting 

purposes. Direct and indirect holding costs are not capitalized for individual forfeited assets. 

Forfeited currency not deposited into the Fund is included as part of Entity Assets - Cash and 

Other Monetary Assets.

Further, mortgages and claims on forfeited assets are recognized as a valuation allowance and a 

reduction of deferred revenue from forfeited assets when the asset is forfeited. The allowance 

includes mortgages and claims on forfeited property held for sale and a minimal amount of claims on 

forfeited property previously sold. Mortgages and claims expenses are recognized when the related 

asset is sold and is reflected as a reduction of sales of forfeited property.

Additionally, SFFAS No. 3, Accounting for Inventory and Related Property, requires certain 

additional disclosures in the notes to the financial statements, including an analysis of changes in 

seized and forfeited property and currency, for both carrying value and quantities, from that on hand 

at the beginning of the year to that on hand at the end of the year. These analyses are disclosed in 

Notes 7 and 8.

Non-entity Assets

Non-entity assets held by the Fund are not available for use by the Fund. Non-entity assets comprise 

intragovernmental and other assets. Intragovernmental balances arise from transactions among 

federal agencies. These assets are claims of a federal entity against another federal entity. Nonentity assets are not considered as financing sources (revenue) available to offset operating expenses, 

therefore, a corresponding liability is recorded and presented as governmental liabilities in the 

balance sheet to reflect the custodial/fiduciary nature of these activities.

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

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

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

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

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

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

forfeiture.

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

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

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

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

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

the footnotes in accordance with SFFAS No. 3.

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

the Fund’s suspense account held by Treasury, which has been invested in short term U.S. 
32 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

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 

2015. 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 11).

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

the year, between: (i) financing sources including transfers, and revenues; and (ii) expenses.
SECTION III - FINANCIAL STATEMENTS AND NOTES 33

Note 3: Investments and Related Interest Receivable

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

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

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

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

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

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

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

The following schedule presents the investments on hand as of September 30, 2014 and 2013,

respectively (dollars in thousands):

Entity Assets

Description. Cost Unamortized 

Discount

Investment, 

Net

September 30, 2014

Treasury Forfeiture Fund -

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

Interest Receivable 0

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

Fair Market Value $2,059,002

September 30, 2013

Treasury Forfeiture Fund -

35 days 0.0350% U.S. Treasury Bills $2,824,018 ($96) $2,823,922

Interest Receivable 16

Total Investment, Net, and Interest Receivable $2,823,938

Fair Market Value $2,823,948
34 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

Non-entity Assets

Description Cost Unamortized

Discount

Investment, 

Net

September 30, 2014

Treasury Forfeiture Fund –

Seized Currency Suspense Account

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

Fair Market Value $4,962,776

September 30, 2013

Treasury Forfeiture Fund –

Seized Currency Suspense Account

35 days 0.0350% U.S. Treasury Bills $1,238,966 ($42) $ 1,238,924

Fair Market Value $ 1,238,935

Note 4: Analysis of Non-Entity Assets

The following schedule presents the non-entity assets as of September 30, 2014 and 2013, 

respectively, (dollars in thousands):

2014 2013

Seized currency:

Intragovernmental Investments (Note 3) $ 4,962,848 $ 1,238,924

Cash and other monetary assets (Note 5) 386,467 211,940

Total Non-Entity Assets 5,349,315 1,450,864

Total Entity Assets 2,199,072 2,929,879

Total Assets $ 7,548,387 $ 4,380,743
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 $40.3 million and $17.1 million as of September 

30, 2014 and 2013, 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 $386.4 million and 

$211.9 million as of September 30, 2014 and 2013, respectively.

Note 6: Forfeited Property/Deferred Revenue

The following summarizes the components of forfeited property (net), as of September 30, 2014 and 

2013, respectively, (dollars in thousands):

2014 2013

Held for sale $ 71,621 $ 67,916

To be shared with federal. State or local, or foreign government 1,423 532

 Total forfeited property (Note 7) 73,044 68,448

Less: Allowance for liens and claims (3,934) (8,246)

Total forfeited property, net $ 69,110 $ 60,202
36 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

Note 7: FY 2014 Analysis of Changes in Forfeited Property and Currency 

The following schedule presents the changes in the forfeited property and currency balances from October 1, 2013 to September 30, 2014. 

(Dollar value is in thousands.)

10/1/13 Financial 

Statement Balance Adjustments

10/1/13

Carrying Value Forfeitures Deposits/Sales Disposals/Transfers

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

Currency $11,536 - $- - $11,536 - $622,658 - $(650,437) - $ - -

Other Monetary 

Instruments 5,610 - - - 5,610 - 8,570 - - (5) -

Subtotal 17,146 - - - 17,146 - 631,228 - (650,437) - (5) -

Real Property 44,818 253 18,384 - 63,202 253 22,438 86 (49,807) (139) (1,208) (5)

General Property 12,571 13,996 31,013 - 43,584 13,996 22,394 26,476 (19,404) (2,742) (3,351) (2,403)

Vessels 1,245 84 1,052 - 2,297 84 2,021 169 (1,052) (68) (1,194) (9)

Aircraft 1,324 9 763 - 2,087 9 1,778 6 (3,255) (7) - -

Vehicles 8,490 1,969 5,617 - 14,107 1,969 36,210 8,704 (28,734) (7,194) (6,944) (1,060)

Subtotal 68,448 16,311 56,829 - 125,277 16,311 84,841 35,441 (102,252) (10,150) (12,697) (3,477)

Grand Total $85,594 16,311 $56,829 - $142,423 16,311 $716,069 35,441 $(752,689) (10,150) $(12,702) (3,477)

Victim Restitution Destroyed

Other

Adjustments Value Change 2014 Carrying Value

Fair Market Value

Adjustment

9/30/14 Financial 

Statement Balance

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

Currency $- - $- - $42,522 - $(16) - $26,263 - $- - $26,263 -

Other Monetary 

Instruments -

-

-

(159) - - - 14,016 - - - 14,016 -

Subtotal - - - - 42,363 - (16) - 40,279 - - - 40,279 -

Real Property - - - - 34,168 51 (317) - 68,476 246 (21,535) - 46,941 246

General Property - - (181) (19,197) 7,338 961 (2,177) - 48,203 17,091 (34,873) - 13,330 17,091

Vessels - - - (47) (360) 4 (58) - 1,654 133 (694) - 960 133

Aircraft - - - - 1,328 (2) (24) - 1,914 6 (711) - 1,203 6

Vehicles - - (54) (196) 2,625 228 (112) - 17,098 2,451 (6,488) - 10,610 2,451

Subtotal - - (235) (19,440) 45,099 1,242 (2,688) - 137,345 19,927 (64,301) - 73,044 19,927

Grand Total $- - $(235) (19,440) $87,462 1,242 $(2,704) - $177,624 19,927 $(64,301) - $113,323 19,927
SECTION III - FINANCIAL STATEMENTS AND NOTES 37

Note 7: FY 2013 Analysis of Changes in Forfeited Property and Currency 

The following schedule presents the changes in the forfeited property and currency balances from October 1, 2012 to September 30, 2013. 

(Dollar value is in thousands.)

10/1/12 Financial 

Statement Balance Adjustments

10/1/12

Carrying Value Forfeitures Deposits/Sales Disposals/Transfers

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

Currency $18,441 - $- - $18,441 - $1,546,617 - $(1,567,585) - $ - -

Other Monetary 

Instruments 205 - - - 205 - 3,876 - (1,805) - -

Subtotal 18,646 - - - 18,646 - 1,550,493 - (1,569,390) - -

Real Property 66,507 270 8,930 - 75,437 270 24,846 122 (28,389) (144) (3,247) (3)

General Property 11,148 13,684 24,117 - 35,265 13,684 27,128 28,779 (12,999) (5,334) (3,437) (2,969)

Vessels 774 66 852 - 1,626 66 3,047 180 (2,339) (70) (277) (9)

Aircraft 400 9 404 - 804 9 3,214 17 (2,241) (17) (39) (1)

Vehicles 8,519 2,314 5,933 - 14,452 2,314 33,705 8,461 (26,922) (7,524) (5,722) (1,012)

Subtotal 87,348 16,343 40,236 - 127,584 16,343 91,940 37,559 (72,890) (13,089) (12,722) (3,994)

Grand Total $105.994 16,343 $40,236 - $146,230 16,343 $1,642,433 37,559 $(1,642,280) (13,089) $(12,722) (3,994)

Victim Restitution Destroyed

Other

Adjustments Value Change 2013 Carrying Value

Fair Market Value

Adjustment

9/30/13 Financial 

Statement Balance

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

Currency $- - $- - $15,906 - $(1,843) - $11,536 - $- - $11,536 -

Other Monetary 

Instruments -

-

-

34 - 3,300 - 5,610 - - - 5,610 -

Subtotal - - - - 15,940 - 1,457 - 17,146 - - - 17,146 -

Real Property - - - - (5,445) 8 - - 63,202 253 (18,384) - 44,818 253

General Property - - (118) (19,306) 2,748 (858) (5,003) - 43,584 13,996 (31,013) - 12,571 13,996

Vessels - - - (96) 263 13 (23) - 2,297 84 (1,052) - 1,245 84

Aircraft - - - - 349 1 - - 2,087 9 (763) - 1,324 9

Vehicles - - (9) (389) 55 119 (1,452) - 14,107 1,969 (5,617) - 8,490 1,969

Subtotal - - (127) (19,791) (2,030) (717) (6,478) - 125,277 16,311 (56,829) - 68,448 16,311

Grand Total $- - $(127) (19,791) $13,910 (717) $(5,021) - $142,423 16,311 $(56,829) - $85,594 16,311
38 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

Note 8: FY 2014 Analysis of Changes in Seized Property and Currency

Seized property and currency result primarily from enforcement activities. Seized property is not legally owned 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. (Dollar value is in thousands.)

9/30/13 Financial

Statement Balance Seizures

 

Remissions Forfeitures Adjustments Value Changes

9/30/14 Financial 

Statement Balance

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

Currency $1,432,731 - $4,845,738 - $(331,022) - $(622,658) - $13,226 - $3,920 - $5,341,935 -

Other 

Monetary 

Instruments 18,133 - 3,146 - (45) - (8,570) - (6,783) - 1,499 - 7,380

-

Subtotal 1,450,864 - 4,848,884 - (331,067) - (631,228) - 6,443 - 5,419 - 5,349,315 -

Real Property 219,491 609 74,106 292 (44,398) (121) (22,438) (86) (37,315) (19) (2) - 189,444 675

General 

Property

341,854 28,535 80,308 37,841 (46,228) (4,427) (22,394) (26,476) (16,334) (3,648) (3,974) - 333,232 31,825

Vessels 5,648 162 2,612 172 (194) (20) (2,021) (169) (725) (10) (121) - 5,199 135

Aircraft 8,160 15 9,614 20 (1,267) (4) (1,778) (6) (2,500) (1) (583) - 11,646 24

Vehicles 70,681 5,238 96,132 13,246 (56,290) (4,446) (36,210) (8,704) (5,429) (393) (432) - 68,452 4,941

Subtotal 645,834 34,559 262,772 51,571 (148,377) (9,018) (84,841) (35,441) (62,303) (4,071) (5,112) - 607,973 37,600

Grand Total $2,096,698 34,559 $5,111,656 51,571 $(479,444) (9,018) $(716,069) (35,441) $(55,860) (4,071) $307 - $5,957,288 37,600
SECTION III - FINANCIAL STATEMENTS AND NOTES 39

Note 8: FY 2013 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. (Dollar value is in thousands.)

9/30/12 Financial

Statement Balance Seizures

 

Remissions Forfeitures Adjustments Value Changes

9/30/13 Financial 

Statement Balance

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

o.

Value No.

Currency $1,669,346 - $1,637,332 - $(374,411) - $(1,546,617) - $48,931 - $(1,850) - $1,432,731 -

Other 

Monetary 

Instruments 22,152 - 74 - - - (3,876) - (135) - (82) - 18,133

-

Subtotal 1,691,498 - 1,637,406 - (374,411) - (1,550,493) - 48,796 - (1,932) - 1,450,864 -

Real Property 206,483 571 53,277 208 (22,141) (82) (24,846) (122) 16,286 34 (9,568) - 219,491 609

General 

Property

301,964 25,608 82,532 39,086 (35,756) (4,894) (27,128) (28,779) 8,039 (2,486) 12,203 - 341,854 28,535

Vessels 6,506 166 3,683 216 (1,014) (21) (3,047) (180) (340) (19) (140) - 5,648 162

Aircraft 10,735 21 4,501 24 (3,442) (9) (3,214) (17) (350) (4) (70) - 8,160 15

Vehicles 45,460 4,336 108,681 13,915 (45,385) (4,196) (33,705) (8,461) (2,581) (356) (1,789) - 70,681 5,238

Subtotal 571,148 30,702 252,674 53,449 (107,738) (9,202) (91,940) (37,559) 21,054 (2,831) 636 - 645,834 34,559

Grand Total $2,262,646 30,702 $1,890,080 53,449 $(482,149) (9,202) $(1,642,433) (37,559) $69,850 (2,831) $(1,296) - $2,096,698 34,559
40 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

Note 9: Capitalized Software

The Automated Obligation & Equitable Sharing Management System (Asset sharing system) is to be 

used to process TFF agencies’ requests to obligate assets for equitable sharing and issue equitable 

sharing payments.

The Asset sharing system has been in development for several years, but the complex effort had 

multiple challenges and did not meet the desired goals. In FY 14, a contract was established with the 

Department’s Office of the Chief Information Officer, Enterprise Content Management (ECM), to 

assess the newly developed system and generate a new plan to develop an operational system. ECM’s 

evaluation of the existing system indicated the majority of the current capitalized costs would not be 

used in the new deployment of the system. Based on this evaluation and Fund management’s 

assessment of the said evaluation, all of the remaining total net capitalized costs of $792 thousand 

was written off from the balances in Software in Development (GL 1832) $339 thousand, Capitalized 

Software in Use (GL 1830) $543 thousand, and Accumulated Depreciation (GL 1839) $90 thousand, 

as of June 30, 2014. 

Furthermore, the total resources now dedicated to this project are under the $500 thousand 

capitalization threshold; thus, the new fiscal year obligated costs will not be capitalized but expensed 

as incurred. Depreciation was expensed on a straight-line basis over the estimated useful life (5 

years) of the internal software asset. Internal-use software in development is not depreciated.

The following schedule presents Internal-Use Software as of September 30, 2014 and 2013, 

consisting of the following (dollars in thousands):

2014

Categories

Useful 

Life 

(in 

years)

Acquisition

Cost

Accumulated 

Depreciation

Net Book

Value

Internal Use Software 5 $0 $0 $0

Internal Use Software -in 

Development N/A $0 N/A $0

Total $0 $0 $0

The depreciation expense amount and the amount written off are included in the National Contract 

Services Seized Property & Other line on the Statement of Net Cost. Accumulated Depreciation is 

included in the Capitalized Software line on the Balance Sheet. 

2013

Categories

Useful 

Life 

(in 

years)

Acquisition 

Cost

Accumulated 

Depreciation

Net Book 

Value

Internal Use Software 5 $543 $9 $534

Internal Use Software -in 

Development N/A $339 N/A $339

Total $882 $9 $873
SECTION III - FINANCIAL STATEMENTS AND NOTES 41

Note 10: Permanent Reduction/Transfer to the General Fund

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

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

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

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

its intended purposes.

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

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

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

account.

Note 11: Distributions Payable (state and local agencies and foreign governments)

Distributions Payable (state and local agencies and foreign governments) amounted to $65.5 million

and $308.6 million as of September 30, 2014 and 2013, 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, 2014 and 2013, 

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 12: Net Position

Cumulative Results of Operations

The following summarizes components of cumulative results of operations as of and for the years 

ended September 30, 2014 and 2013, respectively, (dollars in thousands):

2014 2013

Retained Capital $ 1,730,212 $ 1,014,745

Unliquidated Obligations 756,416 541,150

Net Results of Operations (583,006) 930,733

$ 1,903,622 $ 2,486,628

Unliquidated Obligations

The following summarizes the components of unliquidated obligations as of September 30, 2014 and 

2013 respectively, (dollars in thousands):

2014 2013

Equitable Sharing $ 342,616 $ 302,688

Mandatory 413,800 238,462

$ 756,416 $ 541,150
42 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

Note 13: Related Party Transactions

The Fund reimbursed agencies for the purchase of certain capital assets. These assets are reported by 

the participating agencies in their financial statements.

Note 14: Super Surplus

31 USC 9703 (g)(4)(B) allows for the expenditure, without fiscal year limitation, after the reservation 

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

for law enforcement activities of any federal agency. 

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

requirements amounts to $155.0 million and $82.3 million in fiscal years 2014 and 2013, 

respectively.

Note 15: Secretary’s Enforcement Fund

31 USC 9703(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 9703(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 $16.3 million and $12.1 million in fiscal years 2014 and 2013, 

respectively.

Note 16: Commitments and Contingencies

COMMITMENTS

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

liabilities as of September 30 (See also Note 11, Distributions Payable).

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

that are not identified at this time.

CONTINGENCIES 

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

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

material adverse effect on the Fund’s financial statements.
SECTION III - FINANCIAL STATEMENTS AND NOTES 43

Note 17: 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:

2014 2013

Gross Costs $ 188,006 $ 203,083

Earned Revenues - -

Net Costs $ 188,006 $ 203,083

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

Justice.

Note 18: Disclosures Related to the Statements of Budgetary Resources

The Fund’s net amount of budgetary resources obligated at the end of fiscal years 2014 and 2013

were $982.7 million and $924.4 million, respectively. This amount is fully covered by cash on hand 

in the Fund and Entity Investments. The Fund does not have borrowing or contract authority and, 

therefore, has no repayment requirements, financing sources for repayment, or other terms of 

borrowing authority. There are no legal arrangements, outside of normal government wide 

restrictions, specifically affecting the Fund’s use of unobligated balances of budget authority.

Adjustments to budgetary resources available at the beginning of fiscal years 2014 and 2013 consist 

of the following (in thousands):

2014 2013

Recoveries of Prior Year Unpaid Obligations $ 49,309 $ 23,887

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

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

those obligations.

Note 19: 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 2014

Note 20: Payments in Lieu of Forfeiture, Net of Refunds

The following summarizes Payments in Lieu of Forfeiture, Net of Refunds as of September 30, 2014

and 2013, respectively, (dollars in thousands):

2014 2013

Payments in Lieu of Forfeiture $ 7,952 $ 8,673

Refunds (744) (1,716)

Total $ 7,208 $6,957
SECTION III - FINANCIAL STATEMENTS AND NOTES 45

Note 21: Reconciliation of Net Cost of Operations (Proprietary) to Budget

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

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

thousands).

2014 2013

Resources Used to Finance Activities: 

 Budgetary resources obligated

Obligations incurred $ 787,849 $ 908,113

Less: Spending authority from offsetting

 Collections and recoveries (49,309) (23,887)

Net Obligations 738,540 884,226

 Other resources

Transfers – out (1,038,302) (94,373)

Total Resources Used to Finance Activities

 

(299,762) 789,853

Resources Used to Finance Items not Part of the Net 

 Cost of Operations

Change in budgetary resources obligated for goods,

 services and benefits ordered but not yet provided 653,902 (99,786)

Other resources or adjustments to net obligated 

 resources that do not affect net cost of operations

Mortgages and claims (2,215) (2,489)

Refunds (744) (1,716)

Equitable Sharing (federal, state/local and foreign) (69,389) (408,205)

Victim restitution (93,867) (74,583)

Total Resources Used to Finance Items not Part of the Net 

 Cost of Operations 487,687 (586,779)

Components not Requiring or Generating ResourcesDepreciation 81 9

Total Resources Used to Finance the Net Cost of Operations 188,006 203,083

Net Cost of Operations $ 188,006 $ 203,083
THIS PAGE INTENTIONALLY LEFT BLANK
SECTION IV

REQUIRED SUPPLEMENTAL INFORMATION

(UNAUDITED)
THIS PAGE INTENTIONALLY LEFT BLANK

46 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

Intragovernmental Amounts – Assets (Dollars in thousands) 2014 2013

Partner Agency

Fund 

Balance 

with 

Treasury

Accounts 

Receivable/ 

Advances Investments

Fund 

Balance 

with 

Treasury

Accounts 

Receivable/ 

Advances Investments

Treasury $ 28,721 - $ - $ - $ 26,091 $ - $ -

Departmental Offices - 1 - - 75 -

Bureau of the Fiscal 

Service - - 7,021,883 - - 4,062,862

Totals _$ 28,721 $ 1 $ 7,021,883 $ 26,091 $ 75 $ 4,062,862

Intragovernmental Amounts – Liabilities (Dollars in thousands) 

Partner Agency

2014

Accounts 

Payable

2013

Accounts 

Payable

Department of Justice $ 12,767 $ 3,960

Department of Homeland Security 109,348 36,406

Central Intelligence Agency 1,250 -

Departmental Offices 2,227 3,380

FinCen 637

 

2,235

Tax and Trade 983 86

Treasury Office of the Inspector General - 152

Internal Revenue Service 28,324 21,202

Totals $ 155,536 $ 67,421

Intragovernmental Amounts – Revenues and Costs (Dollars in thousands)

2014 2013

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 $ - $ 128,164 $ - $ 133,638
SECTION IV – REQUIRED SUPPLMENTAL INFORMATION (UNAUDITED) 47

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

Partner Agency

2014 2013

In Out In Out

Department of Justice $ - $ 4,458 $ - $ 3,687

Department of Homeland Security - 136,131 - 68,062

Central Intelligence Agency - 1,250 - - 

Department of Treasury - 4 - 92

Internal Revenue Service - 28,009 - 15,965

Financial Crimes Enforcement Network - - - 5,443

Tax and Trade - 950 - 693

General Fund - 867,000 - - 

Department of Defense - - - 431 

Department of Commerce - 500 - - 

Totals $ - $ 1,038,302 $ - $ 94,373
SECTION V

OTHER ACCOMPANYING INFORMATION

(UNAUDITED)
THIS PAGE INTENTIONALLY LEFT BLANK
48 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

TREASURY FORFEITURE FUND

Equitable Sharing Summarized by State and U.S. Territories

For the Year Ended September 30, 2014

(Dollars in Thousands)

(Unaudited)

State/U.S. Territories Currency Value Property Value

Alabama $ 987 $ 6 

Alaska 186 -

Arizona 934 229

Arkansas 333 10

California 12,182 34

Colorado 213 15

Connecticut 440 -

D.C. Washington 21 -

Delaware 12 -

Florida 19,267 561

Georgia 4,135 5

Guam 2,373 -

Hawaii 37 -

Idaho 16 115

Illinois 5,112 16

Indiana 2,536 -

Iowa 771 11

Kansas 238 5

Kentucky 1,728 -

Louisiana 514 8

Maine 35 -

Maryland 3,783 10

Massachusetts 2,721 -

Michigan 2,062 4

Minnesota 474 81

Mississippi 290 7

Missouri 607 2

Montana 8 65

Nebraska 1,861 -

Nevada 4,410 16

New Jersey 5,940 1

New Hampshire 2 9

New Mexico 984 -

New York 139,617 685

North Carolina 5,095 641

North Dakota - -

Ohio 487 102

Oklahoma 774 -

Oregon 593 (563)

Pennsylvania 1,461 33

Puerto Rico 1,917 44

Rhode Island 27 -

South Carolina 3,059 263

South Dakota 42 -

Tennessee 528 4

Texas 9,742 457

Utah 214 -

Subtotal carried forward $ 238,768 $2,876
SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 49

TREASURY FORFEITURE FUND

Equitable Sharing Summarized by State and U.S. Territories

For the Year Ended September 30, 2014

(Dollars in Thousands)

(Unaudited)

State/U.S. Territories Currency Value Property Value

Subtotal brought forward $238,768 $2,876

Vermont 146 2

Virgin Islands - -

Virginia 61,417 6

Washington 361 6

West Virginia 673 -

Wisconsin 64 10

Wyoming - 10

Totals $301,429 $2,910 

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.
50 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

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, 2014

(Dollars in Thousands)

31 U.S.C. 9703(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 56 administrative seizures over $100 thousand over 120 days old totaling $18,540 that had not 

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

end of FY 2014.
SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 51

TREASURY FORFEITURE FUND

Analysis of Revenue and Expenses and Distributions

For the Year Ended September 30, 2014

(Dollars in Thousands) 

Revenue, Expenses and Distributions by Asset Category:

Revenue

Expenses and 

Distributions

Vehicles $ 17,098 $ 107,762

Vessels 4,749 137,300

Aircraft 4,749 44,233

General Property 15,198 435,796

Real Property 53,194 17,070

Currency and monetary instruments 714,529 67,356

809,517 809,517

Less:

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

 Refunds (744) (744)

Add:

 Excess of net revenues and financing sources over total program 

expenses

 -- --

Total $ 806,558 $ 806,558

Revenue, Transfers, Expenses and Distributions by Type of 

Disposition:

Sales of property and forfeited currency and monetary instruments $ 642,808 $ 153,809

Reimbursed storage costs 3,453 80,952

Assets shared with state and local agencies 67,859 67,859

Assets shared with other federal agencies 609 609

Assets shared with foreign countries 921 921

Victim Restitution 93,867 93,867

Destructions -- 97,142

Pending disposition -- 314,358

809,517 809,517

Less:

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

 Refunds (744) (744)

Add:

 Excess of net revenues and financing sources over total program 

expenses

 -- --

Total $ 806,558 $ 806,558

The revenue amount of $806,558 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. 
52 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

TREASURY FORFEITURE FUND

Schedule of Spending

For the Years Ended September 30, 2014 and 2013

(Dollars in Thousands) 

2014 2013

What Money is Available to Spend? 

Total resources $ 931,996 $ 1,796,222

 Less amount not agreed to be spent (69,874) 0

Less amount not available to be spent (74,273) (888,109) 

 Total Amounts Agreed to be Spent $ 787,849 $ 908,113

How was the Money Spent?

 

Other contractual services $ 196,860 $ 185,688

Supplies and materials 13 18

Grants, subsidies and contributions 151,824 581,555

Interest and dividends 5 26

Refunds 298,062 92,690

Others (i.e. unvouchered, undistributed) 141,085 48,136

Total Amounts Agreed to be Spent $ 787,849 $ 908,113

Who did the Money go to?

Federal $ 279,922 $ 182,447

Non-Federal : 

 State/Local/Tribal/Foreign Governments 151,824 581,556

 Business and Organizations 60,260 53,928

 Individuals 295,843 90,182

 Total Amounts Agreed to be Spent $ 787,849 $ 908,113
SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 53

TREASURY FORFEITURE FUND

Information Required by 31 U.S.C. 9703(f)

For the Year Ended September 30, 2014

(Dollars in Thousands)

The Treasury Forfeiture Fund Act of 1992, 31 U.S.C. 9703(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 of the

United States Coast Guard, in the case of fiscal years beginning after 1993.

As reported in the audited financial statements, at September 30, 2014, the Fund had forfeited 

property held for sale of $71,621. 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, 2014, 

there was $40,279 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 $301,429 and total property transferred was $2,910 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, 2013 which became 

the beginning balance for the Fund on October 1, 2013, as reported in the audited financial 

statements is $2,486,628.
54 TREASURY FORFEITURE FUND ACCOUNTABILITY REPORT – FISCAL YEAR 2014

TREASURY FORFEITURE FUND

Information Required by 31 U.S.C. 9703(f)

For the Year Ended September 30, 2014

(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 $2,215. 

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 $67,859

Foreign countries 921

Other federal agencies 609

Victim restitution 93,867

(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 

$188,006.

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

30, 2014, was $386,467. This amount includes some funds in the process of being deposited at 

year-end; cash seized in August or September 2014 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 

$144,147 for fiscal year 2014. This excludes $960,923 and $867,000 in FY 2014 rescinded 

authority that is classified as “temporary” and “permanent”, respectively. If these figures are

added to the unobligated balances at the end of FY 2014, the figure becomes $1,972,070.
SECTION V –OTHER ACCOMPANYING INFORMATION (UNAUDITED) 55

TREASURY FORFEITURE FUND

Information Required by 31 U.S.C. 9703(f)

For the Year Ended September 30, 2014

(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 $ 306,055 61 seizures

IRS 4,732,470 156 seizures

U.S. Secret Service 32,706 15 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 $18,540. This is also documented on page 50.

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

The total net position of the Fund at September 30, 2014, as reported in the audited financial 

statements is $1,903,622.

(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 2014 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 51.