II. METHODOLOGY

• The drug control percentage has been adjusted as a result of a line-by-line review of the drug-related spending from the Fund. A weighted average was calculated and appears in the above figures.

III. PROGRAM SUMMARY

• The Treasury Forfeiture Fund (TFF) was established by the Treasury Department Appropriations Act, P.L. 102-393 as a special fund. Special funds consist of separate receipt and expenditure accounts. The TFF has two accounts for paying fund expenses -- a permanent indefinite and an annual appropriation. The permanent indefinite appropriation is available for purposes related to specific seizures. The annual appropriation is enacted in the Treasury Appropriations Act and represents a congressional limitation on the use of the proceeds of seized and forfeited assets for purposes more generally related to the forfeiture program. In addition, at the end of each fiscal year, the Fund is authorized to reserve an amount not to exceed $50 million of the unobligated balances of the Fund for future operations. One-half of the amount in excess of $50 million is to be transferred to ONDCP's Special Forfeiture Fund. The other half of the excess unobligated balance constitutes the Super-Surplus fund. The Super Surplus is available to the Secretary without fiscal year limitation for any law enforcement purpose.



• The Treasury Forfeiture Funds supports the National Drug Control Strategy as follows:

• The Gang Resistance Education and Training (GREAT) and the Youth Crime Gun Initiative (YCGI) programs are supported by the Fund. These programs are designed to discourage youth activities which are related to drugs and violence.



• Federal, state, and local law enforcement task forces are supported to fight criminal activity related to drugs and violence.



• Investigations and intelligence gathering efforts are supported which lead to seizures and forfeitures of assets obtained through sales of illegal drugs.

• Multi-lateral intelligence sharing with other governments regarding drug-related international money laundering has been supported by the Fund.



• Interdiction efforts supported by the Fund are those conducted by the U.S. Coast Guard in vessel seizures in conjunction with the U.S. Customs Service.

• Strengthening host nation institutions has been accomplished by the Fund through meetings with foreign government law enforcement officials to explain how asset seizure and forfeiture is accomplished in the United States. From these meetings, the law enforcement officials are encouraged to establish their own asset seizure and forfeiture capabilities using the United States model as their guide.

IV. BUDGET SUMMARY

1997 Base Program

• Drug control resources of the Fund total $155 million in FY 1997. This budget is devoted almost exclusively to supporting Goal 2 of the National Drug Control Strategy. The remaining 0.4 percent of the total budget ($0.7 million) is split between Goal 4 (40 percent) and Goal 5 (60 percent). The Fund provides financial resources to the Treasury law enforcement bureaus and a minor amount to the United States Coast Guard.

• The total FY 1998 drug control budget request is $155 million. No new enhancements are being requested.

V. PROGRAM STATISTICS

• The Treasury Forfeiture Fund supports law enforcement agencies' investigative operations, and applicable program statistics are identified there.

VI. PROGRAM ACCOMPLISHMENTS

• Reimbursing proper expenses of seizure and forfeiture, sharing funds with state and local law enforcement agencies, and managing the resources of the Fund constitute the main achievements of the Fund. These achievements apply mostly to the investigations into money laundering and illegal drug activity conducted domestically within the United States.



• International efforts in training foreign law enforcement officers in the asset forfeiture process were conducted as a means of facilitating investigations wherein money laundering and other proceeds from illegal drug activity are affecting the United States. Asset Forfeiture and money laundering training conferences were recently conducted by the Fund in South Africa, Israel, Japan, and Guyana.