Financial Management: Customs' Accountability for Seized Property and
Special Operation Advances Was Weak (Letter Report, 11/22/93,
GAO/AIMD-94-6).

The U.S. Customs Service has not adequately safeguarded millions of
dollars in cash and luxury items and tons of illegal drugs, leaving them
vulnerable to theft and misuse.  Customs often did not (1) promptly
transfer, deposit, or dispose of seized property; (2) properly weight,
count, and test seized drug; and (3) provide adequate facilities and
sufficiently restrict access to stored items.  These shortcomings
allowed large quantities of cash and drugs to remain on hand for long
periods, increasing the risk of theft, misuse, and loss.  Also, Customs'
inventory records to control and manage seized property and prepare
agency financial reports were incomplete and inaccurate.  These records
omitted large quantities of seized property; showed incorrect locations
for some items; included erroneous values, such as those for counterfeit
items; and included transactions recorded in the wrong period.  Further,
Customs did not adequately control millions of dollars in funds advanced
to Customs agents for special operations or the sensitive documents
related to these advances.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-94-6
     TITLE:  Financial Management: Customs' Accountability for Seized 
             Property and Special Operation Advances Was Weak
      DATE:  11/22/93
   SUBJECT:  Financial management systems
             Federal property management
             Customs administration
             Accountability
             Search and seizure
             Federal records management
             Financial records
             Federal agency accounting systems
             Advance funding
             Inventory control systems
IDENTIFIER:  Customs Service Seized Asset Program
             Treasury Enforcement Communications System
             Customs Service Property Tracking System
             Customs Forfeiture Fund
             Joint Financial Management Improvement Program
             
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