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Asset Forfeiture: U.S. Marshals Service Internal Control Weaknesses Over Cash Distributions

NCJ Number
138037
Date Published
1992
Length
22 pages
Annotation
This review of the U.S. Justice Department's Equitable Sharing Program, in which forfeited assets are shared with State and local law enforcement agencies, examined the internal controls at the California Central and Southern Districts of the U.S. Marshals Service.
Abstract
The study identified the control techniques in place and assessed whether the controls have been adequate to safeguard forfeited assets against waste, loss, unauthorized use, and misappropriation. Findings indicate that internal control weaknesses in the two districts examined make cash obtained from asset forfeitures vulnerable to loss and misuse. The study identified weaknesses in district procedures for preparing and distributing checks to State and local law enforcement agencies. Each district followed its own locally established procedures, which were based on Marshals Service and Justice guidance. In both districts erroneous or fraudulent payments might not have been detected, because key duties were inadequately separated among staff and because payment vouchers were not properly certified as correct. The risk of loss or unauthorized use of forfeited cash was further increased at both districts due to checks not being forwarded directly to the recipient State or local agency. The report recommends that the Marshals Service provide clear, specific internal control guidance for making sharing payments to all its districts. The Marshals Service should also monitor compliance with guidelines and clarify and reemphasize the rule that checks be made payable to recipient agencies and not to individuals. Policy should be changed to provide that checks be sent directly from the Marshals Service to the recipient State or local agency instead of being sent through the Executive Office for Asset Forfeiture. 3 figures