Comments on Whether the Customs Service May Incur Obligations in Anticipation of Seized and Forfeited Asset Sales

GAO commented on whether the Customs Service's practice of incurring obligations against anticipated reimbursements from the sale of seized and forfeited assets is legal. GAO held that unless Congress provides specific statutory authority, an agency may not obligate anticipated reimbursements from future sales of property. Accordingly, Customs violated the Antideficiency Act if it did not have sufficient funds available from other sources for obligation when it recorded an obligation against anticipated reimbursements from the sale of property.