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Asset Forfeiture: Legislation Needed to Improve Cash Processing and Financial Reporting

GGD-90-94 Published: Jun 19, 1990. Publicly Released: Jun 19, 1990.
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Highlights

GAO reviewed aspects of the Department of Justice's and the U.S. Customs Service's asset forfeiture program, focusing on the need for Congress to enact legislative changes designed to speed up processing of seized cash and increase congressional and agency oversight.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should amend 28 U.S.C. 524(c) to require that the Department of Justice annual forfeiture fund report to Congress include a complete set of audited financial statements prepared in a manner consistent with the requirements of the Comptroller General.
Closed – Implemented
P.L. 101-647, November 29, 1990, 104 Stat. 4854, implemented this recommendation.
Congress should amend 19 U.S.C. 1613b to require that the U.S. Customs Service annual forfeiture fund report to Congress include a complete set of audited financial statements prepared in a manner consistent with the requirements of the Comptroller General.
Closed – Implemented
P.L. 101-382, August 20, 1990, 104 Stat. 629, implemented this recommendation.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Justice To ensure compliance with existing cash management policies, the Attorney General and the Secretary of the Treasury should aggressively monitor the holding of seized cash for evidence purposes to ensure that cash is not being held without adequate justification. This can be accomplished by routinely following up with the seizing agencies and U.S. Attorney offices to determine if the reasons for initially holding seized cash as evidence remain valid and that the required approvals have been obtained.
Closed – Implemented
Justice reminded its employees to report all seized cash held as evidence by March 16 of each year and to include the names, offices, and telephone numbers of the prosecutors. The EOAF is using this report monitoring the holding of seized cash for evidence purposes.
Department of the Treasury To ensure compliance with existing cash management policies, the Attorney General and the Secretary of the Treasury should aggressively monitor the holding of seized cash for evidence purposes to ensure that cash is not being held without adequate justification. This can be accomplished by routinely following up with the seizing agencies and U.S. Attorney offices to determine if the reasons for initially holding seized cash as evidence remain valid and that the required approvals have been obtained.
Closed – Implemented
Justice reminded its employees that a report of all cash held as evidence, the names, offices and telephone numbers of the prosecutors be submitted by March 16, 1991. Customs revised its cash management directive to require its employees to notify the U.S. Attorney's Office of its intent to deposit seized currency/monetary instruments as non-evidentiary and to allow 30 days for a response.

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Topics

Agency proceedingsAssetsCash managementFederal property managementFinancial recordsInternal controlsJudicial procedureProposed legislationReporting requirementsSearch and seizure