August 31, 1999

Thompson letter on GPRA - Justice Attachment 1

 

 

 

 

OPEN GAO RECOMMENDATION ON HIGH-RISK AREA:

ASSET FORFEITURE PROGRAMS

Description of high-risk area: Since 1990, GAO has monitored the asset forfeiture programs operated by the Department of Justice and the Department of the Treasury. Many improvements in property management have been made to these programs, which had assets totaling about $1.8 billion dollars, as of September 30, 1997. For example, in 1998 we reviewed the U.S. Marshals Service controls over certain seized property in four locations and found no material weaknesses or deficiencies in the controls we tested. Nevertheless, the programs continue to have significant weaknesses, including (1) inadequate asset forfeiture information systems, (2) a disclaimer of opinion on Justice’s asset forfeiture program fiscal year 1997 financial statements, and (3) material weaknesses in internal controls reported in the auditor’s report on the Treasury Forfeiture Fund’s fiscal year 1997 financial statements. In addition, the Departments of Justice and Treasury continue to operate two similar but separate seized asset management and disposal programs without plans for management consolidation.

GAO Report No. and Date	Recommendation
GGD-91-97 June 28, 1991	The Departments of Justice and Treasury should consolidate the management and disposition of all noncash seized properties in order to reduce program administration costs.