NCJ Number
157379
Date Published
1991
Length
26 pages
Annotation
The objective of this U.S. General Accounting Office study was to evaluate the U.S. Marshals Service (USMS) activities related to seizing, managing, and disposing of high-value commercial real property under asset forfeiture law.
Abstract
High-value commercial property was defined as nonresidential property that has an initial value of $1 million or more. Financial and background information was obtained on the status and management of 42 seized commercial real properties located in 10 States and Puerto Rico. The study also reviewed recent Justice Department audit reports on the Asset Forfeiture Program. Evaluators interviewed agency officials and examined documents to obtain additional information on the 42 properties, district operations, overall program statistics, and future plans. The evaluation was conducted between June 1990 and October 1990. The assessment found that for the properties reviewed, USMS districts did not always adhere to key property management policies and procedures; internal control practices also varied. This failure resulted in a weakened internal control environment. USMS districts did not always document title search information, maintain up-to-date and accurate property information, prepare decision documents on significant properties, obtain property appraisals, and provide effective oversight of property managers. These flaws resulted in a loss or risk of loss on properties worth millions of dollars. Failure of the districts to perform key program activities was caused by interrelated factors that included inadequate personnel staffing and training, inadequate guidance for roles and responsibilities for seizure and management of commercial real property, and insufficient regional oversight of district offices. USMS has made progress in improving its seized assets program by revising its seized asset handbook, updating its management information system, and developing a structured oversight system; however, more remains to be done to better ensure that these new initiatives will be implemented.