Seized Property and Forfeited Assets Systems Requirements

Published by the Government Accountability Office on 1999-12-01.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

ice of I’crsormel
This document contains f%nctional rcquiremcnts                fbr s&cd property and f&f&ted assets systems. This is part of a
scrims of functional systems requirement            documents published by the Joint Financial ~al~a~~~~~~~~t Improvcmtznt
                     I’) on Federal financial management          systems requirements.  All of the JF II) I;‘edeyal &n~~cial
                    stem Requi~emnents series of documents should bc considered together wh              determining      how best to
USC information        and supporting      services to meet the financial m
reqL~ircln~nt docLlIn~~lts address the goals of the Chief Financial
  remote the efficient management             of assets, and to improve financial rnan~~~ern~llt systuns ~ov~rilrn~ll~i~~~    to
         e uscfiil financial iilformatioil      on Federal government     operntiorls.

      ncies arc to use this document on Seized P~opcq and Fovfeeited Assets System Regui~emexts in plamling
      rovements to these financial systems. Agencies may develop additional technical and functional requirements
as necessary to support unique mission requirements.      Agencies must also develop strategies for interfacing or
integrating   seized property and forfeited asset system with the agency’s core financial system.

   e wmt to take this opporm            o thank the agency representatives who contributed    to this docnment.              e value
   eir assistance and support.          continuing  support such as theirs, we can confidently face rhe financial
rna~a~e~i~nt     challenges in the next century.


Introduction.         ........................                                                              . . . . . . . . . .       .            . 1

Federal Financinl              anagemcnt Framework                   .........                 .                                                    3

System Overview              ......................                                                                                   .       .     7

I~itr(~~iL~~ti~i~ to Funcriond                 R~~~Llir~lll~ilts   ..........                                                                      14

Seizure Activities.           .........                                                                                                           . 15

Cmtody        Activities      .........                                                                                                            16

Forfeiture      Activities        ........                                                 .                 t .                  .       .        17

IJisposition      Activities         .......                                                                                                      I 18

Reporting       rind Other R~~~Llirelll~nts                                            .           . . . . . . . . . .                              19

Chxral        Systems Kequireinents                                                                                                                20

Interhcing       Systems          ........                                           . . . . . . . . . . . . . . . . .                             21

Systcnl A~Jlliilistl-~tioJl          .......                                         . . . . . . . . . . . . . . . . .                             22

Kccords       Retention       .........                                                                                                            23

Other Genera1 System Issues ....                                                     . . . . . . . . . . . . . . . . .                             24

Appendix A: References                    ......                                                                                                   25

Appcndis       R : Glossnry          .......                                           . . . . . . . . . . . . .   . .                             26

Appcnciis       C: Contributors                ......                                                                                              28

1, t;innncial System Improvement                        Projects                                                                                     4

2. Framework         for the Integration                of Fcdcral Agc~~cy Systems                                                                   4

3.   Agency     Systcn~s Architecture                                                                                                              I 7
recomnend   acco

                   ent has been ex

              eal with seized
                                                                                        a consequence      of various laws. In
                                                                                                              The first, the seizing
                                                                     1 agency or contractor.
                                                                    seizure activities of one or mor
                                                                                                                    a related action

                                                                                   ntent to forfeit the prope

                                                                                        ay be destroyed after seizure to
                                                                                          seized under many different
                                                                                         ess e accosting    and re

                                                                         teragency    team consisting      of m

1   A central fund is a kdcral entity specifically established to finance the costs ofseizure, ma~la~erne~~ and
    disposition of property seized for forfeiture, and to receive any proceeds from the sale or other dis
    that property.

2   Property subject to seizure is defined in the enabling statutes and regulations; however, for reporting purposes
    financial systems generally defined property as cash (including monetary instruments), real property, and tangible
    personal property as categories.

                        ssets                 uir     tits
                                                                                                       assets systems that wi

                                                                                                         agement,      which
                                                                          rmatio~~    ~~ancial   systems, re

                                                                                        and systems requirements assist
                                                                    e a commoI1      framework so that outside vendors or
                                             ore ecom
                                                                                                                e standar~za~on

                                                                                                    e vision articulated by the
                                                                                                    nt systems to support
                                                                                                    ation for decision-rn~~g

                                                                                                    ante with Federai

                                                                   alysis, and governm~~            e reporting,     including

                         ail to facilitate    au

                                                                    governmen~ide         financi       agement systems
                                                                                       ata exchange, to support program

   catrons to easer     recesses c

                                                                                          . To be integrated,      ~~~ci~
                                                   e following    four characteristics:

                      ons (de~nitio~s

(2) co                                         ilar kinds of ~~sactions;

                                                                 Seized Property and Forfeited Assets Systems
                   e Standard    Reporting

                                                                         * Additional
                   - U.S. Government            Standard                   Agency
                     General Ledger                                         Functional

                   e Core Financial           System                                                          - Procedures

                   - Human Resources              &                      - Additional
                     Payroll Systems                                       Agency
                     Requirements                                                                             . Training
                                                                            Requirements       I( Software
                   o Travel System                                                                Selection
                                                                                                              . Documentation

                   * Seized Property  and                                . integration
                     Forfeited Assets System                                Strategy
                                                                                                              . Conversion
                   . Direct Loan System
                                                                         L Software/
                   e Guaranteed    Loan System                             Evaluation                         I) Maintenance

                   m inventory    System

                   . System Requirements               for
                     Managerial  Cost

                   - Other        Standards

                    Subject     of
               I    this report
                                                                             Illustrar-ion 1

Seized Property    and Forfeited              Assets Systems ~~C~lLlir~~~ilrs
                                                      orting     a           consistently;     and
                     uplicati~n   of ~ra~sa~tio~    entry.

                                  ue to i~laccL~~ate or

                                                          ace with rapidly        changing      user

ts for a single, i                                 t system are outline

                                                                     ean having only one so

                                                          in an integrated fashion, and linked
                                                                       nancial system support

                                                          veiy through       electronic      means.
                            ocated in the s

                        xx- system following                         ~ess/t~ansact~on cycles such as
                      er control accounts at                         payroll payments are made, may
                                                                        ers. In such cases, interface
                                                                                      cial to automate

                                                ara (internai        control).

                                         Seized Property       and Forfeited     Assets Systems ~~q~lirerne~~ts
                         ~~anagelne~~t systems are
                         ms that track financial events

Agency financial ~aIla~e~eI~t          systems fall into
                                                                           Illustration 2
four categories :

     ) core financial       systems;
   (2) other financial       and mixed systems, i~cl~ldi1~~ seized pro
   (3) shared systems, an
            art~clltal      executive information    systems (systems to                or~at~on   to all ievels of

          tans must be linked roget
                   ency systems to central systems t
               rrnance illforn~ation on a gover

 As shown in Illustration     3, seized proper
 rnaIlageI~lent system for those Federal
 forfeited assets systems su
 validate funds availability;

                  be seized under the author        various laws or regulations that are e
                 e Federal goverl~~nt.                               ations aLlt~orizi~lg seizure of pro
                  Is and accounting requ                              t the government    maintains afi
 control of this property during the pendency of the legal proceeding that allowed the seizure to be made.
 may be simultaneously       seized for more than one purpose, i.e., seized as evidence of criminal activity and s
 the enforcement     of a tax levy.

  eizures may be inten                  to

         * restrain the                      involved   in   certain

         * remove      certain contraband                              from the stream of commerce,

Considering       the sensitive        nature of governnlental
i~ia~~ag~il~~l~~ systems a            a key program COmpOne
help guard against mist               es. Seizing ,and taking own~rsh
governmeIlta1       activity         at requires a careful bal~cing      of
rights of iildivid~als.                       Llire~ie~ts form a critical fo
    ithin    is legal fr                               ortant to note that s

            3        This Federal Financiul Management Sy.rtems Requirement for Seized Property and Forfeited Assets Systems is not
                     intended to create or confer any rights, privileges, or benefits on any prospective or actual claimant, defendants, or
                     petitioners. Likewise, it is not intended to have the force of law with respect to the conduct or prosecution of law
                     enforcement activities.

            4        Agencies that deal with non-valued seized and forfeited property must comply with specific accounting and
                     reporting requirements for this activity. See SFFAS No. 3 and Accounting and Auditing Policy Committee’s
                     Technical Release Number 4, Reporting on Non-valued Seized and Fo+ited Prope@.

            5        Seizure is the act performed by an officer of the law, acting under authority, in taking into the custody of the law the
                     property, real or personal, of a person against whom the judgment of a competent court has passed or the act of
                     taking possession of property as a consequence of a violation of public law.

            6        Forfeiture is to lose title to, or lose the right to, property by some error, fault, offense, or crime.

Seized    Property     and t;orfcited     Assets Systcrns        Ile+rcments
                                                                             venue Service to levy (seize) and sell taxpayer
                                                                                                 ession of the taxpayer’s right,
                                                             taxpayer’s equity in the prop     , and offers it for public sale. The
                                               ear title; encumbrances senior to the federal tax lien(s) for the delinquent tax
                                                                                   after sale. After seizure of the property, the
                                                       solved in one of a I         of ways:

                                                                                          additions    in full prior to sale, and the

                                                                                       at the property be returned to the taxpayer
                                                                                     any funds are received for the release of the
                                                                                                       to the taxpayer’s delinquent tax

                                                                                     auction or sealed bid for an amount equal
                                                                            ds are applied first to the direct expenses of the
                                                taxpayer’s d~Iinquent tax liability with the funds being forwarded to the
                                                      oceeds of the sale in excess of the total of the deli~queilt  tax liability

                                                                                          eemed advisable
                                                                              ay the established minimu
                                                                            emg released to the taxpa
                                                                       t of the established mi~limum
                                                                             gard to a rnillirnL~rn bid;

                                                     es that result in         payment     of the delin     uent tax liability,   the
co~ti~L~es to a

        7    Title 26 of the United States Code. Levy (seizure) under Internal Revenue Code section 63 3 l(b) to collect
             delinquent taxes involves no legal proceeding. The seizure is an administrative act.

                                                                           Seized   Property and Forkited       Assets Systems Re+rements
                                           e clear its intent

          e sent to owrlers an

                                                                re raises Issues 0

x   19 1J.S.C.   100X, 26 USC.   7325(3)
stare or local agencies.                                                                                                t such seized property

                                                                                                                        e law ~llforcex~lent

                                                                        ivil actions   where              er in controversy is between
                                                                                                        e, and a foreign state as plain
                                                                                                        arshal to seize certain s

                                              tion or seizure 0                                           rovisiorls       for notice to
                                                  e seizure will                                                            er.       ositio~    will

                                                                              s officer who has reasonable              cause to believe that
                                                                            en violated, makin

                           safety, or ~(~~se~a~l(~~.                                                          rtarion     or entry of whit

                                                                                                      revisions fo             tice to i
                                                                                                      sition shoed               in acco

       9      See 2X U.S.C. 1332. See also Supplemental   Rules for Certain Admiralty and Maritime   Claims

                                                                          Seized Propmy        and Forfeir-ed Assets Systems l~cqui~~rn~~~ts
                               aincd or seized to enforce                                            ant cxecLltivc   agc11cy ~e~L~la~~~lls.    P
                               termination   of an authori                                           ject to actual or co stmctive seizure
 because there is            obable cause to believe                                                                  at the seizure of
                             roperty is ~arrallt~~i.

The legal process for resolving the underlying    rationale for detention                01   seizure, in&
to ~I~divid~lals or public adve~isel~ents of the seizure, is                                                                  re
~~~s~ositioll must be in actor ante with the a~lt~~)r~~iilg

The Federal goverIlm~nt      has unique law enf~~rcerneilt and social missi
    amities of items that often have no resale value (e.g. , illegal d
   ov~rll~ient   agencies have a significant responsibili~ co safegua
rrhey are carried at zero value in its financial records.

would frustrate the exprcs
from r-he summary dest
  roperty rights of the owner are

Certain    laws authorize         the “fotieiture” of certGn ty s of seized property “sum                        ut notice                     an
                                 iture hearing). Under 21 U 6. 88 1 (f,, schedule I and                          antes tha
                                 sold, or offered for sale illegally, as well as dangerous, toxic, or hazardous raw materials,
products, equipment,            or containers that are used in connection with drug ofSenses “shall be deemed contraband                       and
seized and summarily            forfeited to the United States.“‘0

Personal property may be abandoned or destroyed by an executive agency when an authorized                                o
writtell ~~eterrniI~atioI1 that the opcrty has no commercial   value or the esti
haIldling would exceed the esti     ted proceeds from its sale, provided that
made in a manner that is not detrimental    or dangerous to ublic he&h or that   o

   ealty may be abandoned, destroyed,                   or donated to certain public bo            ny Federal agency havin
realty that has no conlmercial  value or                whose estimated cost ~~fc~~]~tiilLled care would exceed the estimat
from its sale is authorized to abandon                  or destroy the goveril~nenr-ow~e
property or to donate the governIne~lt’s                  interests t
or donated by a Federal agency unless                   an authoriz
c~~mmercial value or that the estimated                  costs of co

          10     21 U.S.C.     881(f)(l).   See also   1X U.S.C.   924(d).

          11    41 C.F.R.      101-47.5
                     erty, real or personal is transferred           to the United    States.

at will facilitate     tracking   through    sei                  ing, and disposition.
                                                           re it was seized,    e storage

                          value and any     s~lbs~q~l~n~        updates to the valuation.
                                                cized for forfeiture.
                       sing status of any abandoned                roperty or forfeited

                            legal aLltilori~   for the seizure. This information
                             forfeiture criteria have been observed.
                                                      services, and interact with the

                                                      ocess on a basis consistent         with

                       Seized Property and Forfeited Ascts             Systems Requirements
   key component     of effective property seizure and asset forfcinrre processes is disposing of the properry in an
orderly fashion after d~t~rInixlin~   that dis~~ositioil is appropriate. If asset disposition    is perceived to ur&ir or
i~~f~~i~l~t, the cffectivencss of the entire process could be calfcd into question.        In some casts, the p  erty may be
returned to an entity outside of the Federal ~ov~rIlrncn~ as a result of the law enfor~em~Rt nction. It is partic~ll~rly
i    ortant to account for a11cosrs, revenues, and proceeds from disposition.

    effective asset disp~siri[)Il            system corn oncnt must have the capability                    to do the following:

                                                  cIL]~iiIl~ the unique i   r of the pro                             set, type of      ty or asset,
                                                  viduals ~~s~~onsibl~      orizing and                              the actions,      he at time of
                                        gross proceeds gencrarcd from the disposition,  a                     to whom the asset or property was

       Accurately       record a partial distrib~ltion            of an asset.
                                        riate costs and revenues on a basis consistent              wi

                                        ~Ll~l~~)ri~ati[~Il exists fbr all dis
                       d     acco~int     accuratciy for all ~iistri~Llti~)ns     of excess revenues over ex
       l?rovide     ;t complete          accounting       f& both the ~~plic~bl~        central fund balances and any related deposit limd
       Provide      an audit trail for assets distribLlt~              to other entities.
          ccord the deposit              into the applicable      account of all proceeds from the sale of forfcitcd              or ab~don~d   assets.
                   transfers of cash from the applicable                  dc osit ftind to the ap licable central fund account.
                ort the payment            of contractors,     innocent         ners,   or approved        claimants.

~alLl~-ad~~~d     features are as follows:

       Flag low      value        and til~l~-s~l~sitiv~     assets to assure their tiI~~ly     re
       I’~ri~~di~~Ily test asset dis osition               trarls~cti(~~ls to ensure that the            recess is not being victimized
                                           contractor     services were actually perfor
                                                                                        ation on internal   conrrols,   systems
ar~bit~c~ir~,      sofmarc docun         tion, and other matters relate
development,         o~~rari(~ns, an nlaint~~allce.       Thro~l~~l~)L~t the
      forkited      assets system, su               ocLlrn~nt~~~i0~ must be mainta

                   nd forfeited assets system      se be able to accept,             or-t on traIlsactioI~s with other
                   external systems. The systc      must record and tra                                   i~formarioI1 in or
to provide       the basis for control.

The req~lir~l~~Ilts  for sofcuare doc~lmentatio~ are listed in the Core Fzkzncial System ~~q~~~e~e~ts.   The information
provided is meant to identify the scope and intent of the docLlrn~~~atio     requirements  rather than to state them
definitively.   The software and doc~lmcntatioll will be I~aiIltained under co~~~~~ration management      in order to
maintain system integrity and assure internal controls.

After the seized prope
Agency Anacin           ~lanagement     systems track financial events and summarize information            to support the mission of
                   hese systems provide for adequate manage~~~nt reporting, su               rt agency level policy decisions
              to carry out fiduciary responsibilities,       and support the preparatio        auditable financial statements.
                           anagement systems fall into four categories: core financial systems, other and mixed systems
(including      inventory systems), shared systems, and d~partrn~~ltal executive infornlation              systems (systems to provide
manage        ent in~~rl~ation    to all levels of managers). These systems must be linked together electronically             to be
efEctive and efficient. Summa~              data transfers must be provided from agency systems to central systems to permit
summaries of management             inforInatiol1   and agency financial performance information          on a government-wide      basis.
  ubject to government-bide                            hysical co~l~~ration   of ~n~lcial rn~a~ern~nt        systems, including issues
  f centralized o                                      ocessing routines, data, and organizations,      is best left to the
  e~~rminati~)n o                                       ptimal rnaIl~er in which to sup art the agency mission.

The physical design of the system, however, should consider the agency’s organizational    philosophy,  the technical
capabilities available, and the most appropriate manner to achieve the necessary single, integrated financial

                    erty and forfeited ass       system should be able to process transactions from other external systems and
                  rack such transactions a        related info~ation  to provide the basis for central control. This may require a
                                                  fy and fo~at the transactions.

The system should:

           rovide    e fl~~bili~      to accept data input from multiple           media that recognize user agencies’ unique        data
         input r~qLlirem~nts.
            rovide the capability to customize data input, processing rules, and edit criteria and to give agencies
         flexibility in defining internal operational procedures and supporting   agency requirements.
                               bility, if necessary, to identify and rocms transactions             from other systems that enter and
                                      seized property and forfeited assets system.
                                                                         from illtc~aciIlg     systems to the standard seized property      and
                                                                         or-correction     procedures.
     *                 e capability   to u
     I                                       rovide InLlltiple-~~~edia    out ut reports and recognize user agencies’ unique
         outhit     ~eqLlircments.
     *                                                       customize output for reporting and providing            interfaces to other
         systems necessary t                                program results and meet agency requirements             for external processing
                                       sting, budget      reconciliation and execution, cost acc~lmLllatioI1).
                                                             II on the results of seizure tr~llsact~oils and forfeiture
                                                                   ents itemized in the Cove Financial System ~~e~~~~e~ent~ fbr
                          es as ~e~erati~l~ requests for dis                         the standard general ledger, generating
         obligatio~~    records, generating requests for funds transfer, and u ating funds control.

                                                                                 Seized Property   and Forfeited Assets Systems hquirerncnts
 A variety of general system requirements,    including data stew
 int                    thers arc contained in the F~aamewwo&fur
 FF                      95). The Framewor
 found   nt vvww.~nancenet.gov/~nancencr/

Seized Property   and Forfci~cd Assets Systems Requirements
  era1 Financial

  era1 Financial

  eral    anagers’

                    -123, Internal   Control

   B Circular   A-I 27, Financial        anagement         Systems

                                         ccounting       ~riilci~l~s   an

                                                            ting Standard      No. 3, Accoulltiilg      for

        Statement of Federal Financial               co~lntillg    Standard    No. 4,     anagerial    Cost Accounting    Concepts   and
tandards for the Federal ~overnIn~llt

           orting    on    on-Valued     Seized and Forfeited          I’roperty,   Technical        elease Number   4

   II? Framework       for Federal Financial          ~ageIn~nt        Systems (~~~SR-0)

   II? Core Fi~lanci~     System       equirements       (JF             -99-4) and other System Requirement             documents

                     IP website: www.finatlcenet.gov/fina~~ce~~et/f~d/jfmip.

                                                                              Scizcd Property and F&cited       Assets Systems l<equirements
Abnwdoned &opeq        I’roperty of any type over which the rightfill owncr has relinquished possession and nny claim of an
                       ownership interest, without assertion Of an adverse right to possession and control by the Federal
                       government.    This would include property left at a government facility and unclaimed by the righ&l
                       owner foliowing notice of intent to dispose. This property is 2 type of seized propert)l.

                       AAIY1 \ias established in                                   anagcment and Budget, Gencrnl Accounting
                       Oftice, the CFO Council,                                  ml   Integrity xnd EfEcicncy, as a body to rcsenrch
                       accounting and auditing issues requiring guidance.      It serves as a pcrmancnt committee sponsored by the
                       !+deral Accounting Standards Advisory Board.

                       Physical possession   and control of property   by government   personnel.

                       Any dcpnrtmcnt, agency, commission,       authority, administration, board, or other independent
                       cstnblishment in the Esecutivc branch    of the government, including any corporation whollv or partly
                       owned by the United States that is ~1    independent inst                      .S., not including the
                       municipal government of the District     of Columbia. (0

                       A federal entity established to firlnnce the costs of seizure, manngcment and disposition of property         seized
                       for forfeiture, and to receive any proceeds from the salt or other disposition of that property.

                       Legal possession of property by Federal government personnel through a non-federal agent, such as a
                       commcrciai contractor or state or local official, under a legal agreement or court order that the agent
                       maintains physical possession and control of the property on behalf of, and subject to the orders of, the
                       Federal gov&ment     personnel.

                       The Fcdcral agency rhat has actual possession of seized or forfeited propcrty, or constructive possession of
                       property through a non-federal agent. The custodial agency would be responsible for reporting material
                       quantities of non-valued items.

                       Property taken into custody tcmpomrily for purposes of preserving the status quo (items in or around a
                       crime scene) or to protect &e government from liability for loss (luggage of a11 arrested traveler, vehicle of
                       ~1 arrest4 drunk driver), or determining Customs admissibility, with the intent to release the property as
                       soon as it is no longer necessary to prcscrve the status quo or the owner can assume responsible custody.
                       This riction is not a seizure under the law and thus detained property is not considered seized property.

                       Propa-ty that may bc legal to possess or own in the U.S., but whose import/export          is prohibited   (e.g.,
                       Iranian carpets, Cuban cigars).

                       The financial systems and the financial portions   of mixed systems necessary to support      financial

                       An it~~)rI~l~tiorl system, comprised of one or more application, that is used for collecting, processing,
                       maintaining, tr~~lsInittill~, and reporting data about financial events; s~~pp~~tii~~ financial planning or
                       budgeting activities; accumulating and reporting cost inf~rnl~lti~I1; or supporting the preparation of
                       financifll statements.

                       Property of any type (currency, monetary interests, realty, intangible propern ,i, and tangible personal
                       property) for which title has vested in the Federal govcrnmcnt, over any other asset-ted legal interest in the
                       property, by exercise of a legal forfeiture process.

                       An  in&)rmation system that supports    both financial and norci-finnncinl functions   of the Federal
                       government or components thereof.

Seized Property   and Forfeit-cd Assets Systems Kcquiremcnts
   pendix             tossary

                                  Property for which no private right of ownership is recognized under tJ.S. law, or of which mere private
                                  pctsscssionis prohibited under U.S. law. Examples include certain controlled substances,counterfeit
                                  currency, counterfeit monetary and financial ii~str-~~~~lei~ts,
                                                                                             and certain firearms. This property is a type of
                                  seized property.

                                  JFMII’ systemsre~l~lire~lielltsare either mandatory or value-added. The definitions of these two
                                  categories are:

                                  Mandatorv Ke~lLlirernelltsdescribe what the system must do and consists of the minimum acceptable
                                  ftmctionaljty, necessaryto establish a sy~stem, or are basedon Federal laws and regulations. 1PIandatory
                                  reqLlirerne~ltsare those against which agency headsevaluate their systemsto determine substantial
                                  compliance with systemsrequirements under the FF IA. These requirements apply to existing systems
                                  in operation and new systemsplanned or under development.

                                  Value-added requirements describe features or characteristics and may consist of any combination of the
                                  following: (1) using state of the art technology, (2) employing the preferred or best businesspractices, or
                                  (3) meeting the specialmanagement needsof an individual agency. Value-added, optional, and other
                                  similar terminology may be used to describe this category of requrrements. Agencies should consider
                                  value-added features when judging systemsoptions. The need fi,r thcsc value-added fcaturcs in agency
                                  systemsis left to the discretion of each agency head.

S&in.       bzqency               The Federal agency that seizesproperty aspart of its law enfkxmcnt       activities.

Seized propeq                     Property of any type (currency, monetary interests, realty, intangible property, and tangible personal
                                  property) Over which the federal go\~ernment has exercised its power under law to assertpossessionand
                                  control in opposition to any other party asserting a legal interest in the property.

Seizedjb      evidence            Property the Federal government has seized for the sole purpose of preserving and protecting the
                                  property f&- possible use in civil or criminal judicial proceeding. The expectation is that the property will
                                  be returned to its rightful owners upon conclusion of the judicial proceedings. However, circumstances
                                  can allow rhe status of property seized fi)r evidence to change to property seized f?)r ti)rfeiture.

                                  Property the Fcdcral government hasseized for the purpose of transferring titie to the Federal
                                  government through exercise of a legal fi-i,rfeiture process. This includes property seized for forfeiture that
                                  also may be used in an evidentiary proceeding.

Se&edfiy tmpu~oses                Property the Federal government hasseized f&- the p~pse    of satisyn, (I 2
                                                                                                            L tax liability to the Federal
                                  government through exercise of-a legal tax c&&-cement process. This includes property seized for tax
                                  purposesthat also may be used in an evidcntiary proceeding.

Seized for other purposes
                                  Property the Federal government hasseized f?)r purposes other than For evidence, ii,r forfeiture, or for tax
                                  purposes. Examples of property in this category include seizuresfor satisfaction of debts owed the
                                  government, for protection of public safety or navigation (adrift vessel), and fi)r preservation of
                                  environnierital conditions (sinking vessel). This includes property seized for these other governmental
                                  purposes  that also may be used in an evidentiary proceeding.

Sensitive items                   Items that could be a hazard or threat to public safety or the economy in federal custody that would     cause
                                  discredit or embarrassment to the Federal government ifit lost accountability over those items.

               0te:             ost of the terms and ~e~~l~i~ioilsare from the Acco~~iltiIl~ and        uditing Polic\r ~[)tllnlirt~e (A
            docLlment            on    eporting on Non-Valued Seized and Forfeited Property,            Technical Kelease Number 4.

                                                                                              rope~ty and Forfeited
        Steehg      Cam~~ittee
Donald Hammctnd (Chair, Steering Committee)   Denise S. Wood (l’roject Sponsor)
 Department of the Treasury                    Executive fficc of Asset Forfeiture (E
Karen Clenry Alderman                         Clayton Ryers
                                               CXlice of Inspector General (

 illinm Early                                 E        Pl
 Gcnernl Services A~iminis~rati~~~

Jeffrey Steinhoff                             Maria Freedman
  General Accounting Office                    OIG
Sheila Conley                                 Joan Holland
                anagement and Budger            Internal Revenue Service (IRS)

                                              Richard Huether

                                              Jack oziner

Michael Perez (Project Sponsor)
 Justice ~alla~~1~1~11~
                      Division (JMD)
 Asset Forfeiture   nnagcment Staff           Stuart Sporn
Robert Weeks
 JMD                                          Gail Donaldson

                                              Edna Decker
                                               Customs Service
Katie Drew
 JMD-Finance Staff                            Tim Raeck
                                                Customs Service
 Federal Bureau of Investigations             Diane Frazier
                                               Secret Service

                                              Ken Lee
                                               Secret Service
     lyn Kcssinger
    fice of Inspector General (               Yvone artisan
                                               Secret Service
Melissa Loughan
 OIG                                          Sandi Nini
                                               Secret Service

Swan Franklin
 Immigration and ~a~irali~lti~il    Service

Nora Kelly Waldren
 Criminal Division

       ro~erty and Forfeited
Federal Accountin.     Standards   Admsmy Board

   endy Comes

Kick Wascak

Gent&      Accountin   Ofice

Gary Engel

Robert Gramiing

Casey Keplinger

J. Chris      artin

JFMP    St@-

Doris Chew

Patricia Clark

Janet McBride

Dennis Mitchell

Thane Thompson
              anagemcnt Intern-Department         of Labor)

                                                              Seized   property   and forfeited
Joi                                      ram
                                               I     Bulk Rate     I
                                               Postage & Fees Paid

      Penalty   for Private   Use $300