1. Reporting Entity

The Department has a wide-range of responsibilities which include: detecting, apprehending, prosecuting, and incarcerating criminal offenders; operating Federal prison factories; upholding the civil rights of all Americans; enforcing laws to protect the environment; ensuring healthy competition of business in the United States free enterprise system; safeguarding the consumer from fraudulent activity; carrying out the immigration laws of the United States; and representing the American people in all legal matters involving the United States Government.  Under the direction of the Attorney General, these responsibilities are discharged by the components of the Department.

For purposes of these consolidated/combined financial statements, the following components comprise the Department's reporting entity:

• Assets Forfeiture Fund and Seized Asset Deposit Fund (AFF/SADF)
• Working Capital Fund (WCF)
• Offices, Boards and Divisions (OBDs)
• Bureau of Prisons (BOP)
• U.S. Marshals Service (USMS)
• Office of Justice Programs (OJP)
• Federal Prison Industries, Inc. (FPI)
• Federal Bureau of Investigation (FBI)
• Drug Enforcement Administration (DEA)
• Immigration and Naturalization Service (INS)


2. Basis of Presentation

These financial statements have been prepared to report the financial position and results of operations of the Department as required by the Government Management Reform Act of 1994, Public Law 103-356, 108, Stat. 3515.  These financial statements have been prepared from the books and records of the Department in accordance with generally accepted accounting principles issued by the Federal Accounting Standards Advisory Board (FASAB) and Office of Management and Budget (OMB) Bulletin 01-09, “Form and Content of Agency Financial Statements.”  These financial statements are different from the financial reports, also prepared for the Department pursuant to OMB directives, which are used to monitor and control the use of the Department's budgetary resources.  The accompanying financial statements include the accounts of all funds under the Department's control.

FPI, a reporting component of the Department of Justice, operates as a revolving fund and does not receive appropriations.  Its budgetary information is based on a crosswalk from proprietary accounting data.  The budgetary accounting data presented best represents the actual activity as reflected in the proprietary accounts.  Therefore, FPI reports negative recoveries because it does not track upward and downward budgetary adjustments separately.

3. Basis of Accounting

Transactions are recorded on an accrual and a budgetary basis of accounting.  Under the accrual basis, revenues are recorded when earned and expenses are recorded when incurred, regardless of when cash is exchanged.  Under the budgetary basis, however, funds availability is recorded based upon legal considerations and constraints.  As a result, similar line items on the proprietary financial statements, budgetary financial statements, and notes may not equal.  Examples include, but are not limited to, the following:

• Total Accounts Receivable on the Balance Sheet may not equal Accounts Receivable on the Statement of Budgetary Resources;
• Total Accounts Payable on the Balance Sheet may not equal Accounts Payable on the Statement of Budgetary Resources; and
• Appropriations Received on the Statement of Changes in Net Position may not equal Appropriations Received on the Statement of Budgetary Resources because offsetting receipts for special funds are reported as Appropriations Received on the Statement of Budgetary Resources but are reported as either exchange revenue on the Statement of Net Cost or non-exchange revenue on the Statement of Changes in Net Position.


4. Revenues and Other Financing Sources

The Department receives the majority of funding needed to support its programs through Congressional appropriations.  The Department receives annual, no-year, and multi-year appropriations that may be used, within statutory limits, for operating and capital expenditures.  Additional funding is obtained through exchange revenues, non-exchange revenues and transfers-in.

Appropriations are recognized as budgetary financing sources at the time the related program or administrative expenses are incurred.  Exchange revenues are recognized when earned, for example, when goods have been delivered or services rendered.  Non-exchange revenues are resources that the Government demands or receives, for example, forfeiture revenue and fines and penalties.

The Department's exchange revenue consists of licensing fees to manufacture and distribute controlled substances, services rendered for legal activities, space management, and data processing services.  Fees are set by law and are periodically evaluated in accordance with OMB guidance and collected for inspecting commercial and/or sea vessel passengers, and processing various immigration applications.  Other exchange revenues are generated by the sale of merchandise and telephone services to inmates, and the sale of manufactured goods and services to other federal agencies.  The pricing policy for goods and services provided is based on cost plus a predetermined gross margin ratio.

The Department's non-exchange revenue consists of forfeiture income resulting from the sale of forfeited property, penalties in lieu of forfeiture, recovery of returned asset management cost, judgment collections, and other miscellaneous income.  Other non-exchange revenue includes the OJP Crime Victims Fund receipts and AFF/SADF interest on investments with the U.S. Department of the Treasury (Treasury).

The Department's deferred revenue includes fees received for processing various applications and licenses mostly with INS and DEA.  Deferred revenue represents monies received to process applications and licenses for which the process was not completed at the end of fiscal year.  These monies are recorded as liabilities in the financial statements. Deferred revenue also includes forfeited property held for sale.  When the property is sold, the deferred revenue is reversed and forfeiture revenue in the amount of the gross proceeds of the sale is recorded.

Custodial activity reported on the Statement of Custodial Activity is prepared on the modified cash basis.

5. Fund Balance with the U.S. Treasury and Cash

Funds with the Treasury represent primarily appropriated, revolving, and trust funds available to pay current liabilities and finance future authorized purchases.  Cash receipts and disbursements are processed by the Treasury as directed by authorized certifying officers. The Department does not, for the most part, maintain cash in commercial bank accounts.  Certain receipts, however, are processed by commercial banks for deposit into individual accounts maintained at the Treasury.   The Department's cash and other monetary assets consist of undeposited collections, imprest funds, cash used in undercover operations, cash held as evidence, seized cash, and drafts in transit.

6. Investments in U.S. Government Securities

Investments are Federal debt securities issued by the Bureau of Public Debt.  When securities are purchased, the investment is recorded at par value (the value at maturity).  Premiums and/or discounts are amortized through the end of the reporting period.  The Department's intent is to hold investments to maturity, unless securities are needed to sustain operations.  No provision is made for unrealized gains or losses on these securities because, in the majority of cases, they are held to maturity.

7. Accounts Receivable

Net accounts receivable includes reimbursement and refund receivables due from Federal agencies and others, less the allowance for doubtful accounts.  Generally, most intragovernmental accounts receivable are considered fully collectible.  The allowance for doubtful accounts for public receivables is estimated based on past collection experience and analysis of outstanding receivable balances at year end.

8. Property, Plant and Equipment

The Department owns some of the buildings in which it operates.  Other buildings are provided by the General Services Administration (GSA), which charges rent equivalent  to the commercial rental rates for similar properties.  Depreciation on buildings and equipment provided by the GSA is not recognized by the Department.  Leasehold improvements are depreciated over the term of the remaining portion of the lease.

Except for BOP and FPI, Department acquisitions of personal property, excluding internal use software, $25 and over are capitalized and depreciated, based on historical cost, using the straight-line method over the estimated useful lives of the assets.  Personal property, excluding internal use software, is capitalized when the initial cost of acquiring the asset is $25 or more and the asset has an estimated useful life of two or more years.  Internal use software is capitalized when developmental phase costs or enhancement costs are $500 or more and the asset has an estimated useful life of two or more years.  BOP and FPI capitalize personal property acquisitions over $5.  Aircraft is capitalized when the initial cost of acquiring those assets is $100 or more.  Real property, except for land, and leasehold improvements are capitalized when the cost of acquiring and/or improving the asset is $100 or more and the asset has a useful life of two or more years.  Land is capitalized regardless of the acquisition cost.

9. Advances and Prepayments

Advances and prepayments, classified as assets on the balance sheet, consist primarily of funds disbursed to grantees in excess of total of expenditures made by those grantees to third parties, funds advanced to state and local participants in the Domestic Cannabis Eradication and Suppression Program, and travel advances issued to Federal employees for official travel.  Travel advances are limited to meals and incidental expenses expected to be incurred by the employees during official travel.  Payments in advance of the receipt of goods and services are recorded as prepaid charges at the time of payment and are recognized as expenses when the goods and services are received.

10. Seized and Forfeited Property

Property is seized in consequence of a violation of public law.  Seized property can include monetary instruments, real property, and tangible personal property of others in the actual or constructive possession of the custodial agency.  Most non-cash property is held by the USMS from the point of seizure until its disposition. 

Forfeited property is property for which the title has passed to the U.S. Government.  This property is recorded at the estimated fair market value at the time of forfeiture.  The value of the property is reduced by the estimated liens of record.

11. Non-Entity Assets

Non-entity assets are not available for use by the Department and consist of restricted undisbursed civil and criminal debt collections, cash bonds, and seized cash and other monetary assets.

12. Liabilities, Loans and Interest Payable to the U.S. Treasury

Liabilities represent the monies or other resources that are likely to be paid by the Department as the result of a transaction or event that has already occurred.  However, no liability can be paid by the Department absent proper budget authority.  Liabilities that are not funded by the current year appropriation are classified as liabilities not covered by budgetary resources in Note 15.

Congress granted the FPI borrowing authority pursuant to Public Law 100-690.  Under this authority, the FPI borrowed $20,000 from the Treasury with a lump-sum maturity date of September 30, 2008. 

13. Contingencies and Commitments

The Department is involved in various legal actions, including administrative proceedings, lawsuits, and claims.  A liability is generally recognized as an unfunded liability for those legal actions where unfavorable decisions are considered "probable" and an estimate for the liability can be made.  Contingent liabilities that are considered "possible" are disclosed in the notes to the financial statements.  Liabilities that are considered "remote" are not recognized in the financial statements or disclosed in the notes to the financial statements.

14. Annual, Sick and Other Leave

Annual and compensatory leave is expensed with an offsetting liability as it is earned and the liability is reduced as leave is taken.  Each year, the balance in the accrued annual leave liability account is adjusted to reflect current pay rates.  To the extent current or prior year appropriations are not available to fund annual and compensatory leave earned but not taken, funding will be obtained from future financing sources.  Sick leave and other types of nonvested leave are expensed as taken.

15. Interest on Late Payments

Pursuant to the Prompt Payment Act, 31 U.S.C. ' 3901-3907, Federal agencies must pay interest on payments for goods or services made to business concerns after the due date.  The due date is generally 30 days after receipt of a proper invoice or acceptance of the goods or services, whichever is later.

16. Retirement Plan

With few exceptions, employees hired before January 1, 1984, are covered by the Civil Service Retirement System (CSRS) and employees hired after that date are covered by  the Federal Employees Retirement System (FERS).

For employees covered by the CSRS, the Department contributes 8.5 percent of the employees' gross pay for normal retirement or 9 percent for hazardous duty retirement.  For employees covered by the FERS, the Department contributes approximately 11 percent of employees' gross pay.  All employees are eligible to contribute to the Federal Thrift Savings Plan (TSP).  For those employees covered by the FERS, a TSP is automatically established, and the Department is required to contribute an additional 1 percent of gross pay to this plan and match employee contributions up to 4 percent.  No matching contributions are made to the TSPs established by the CSRS employees.  The Department does not report CSRS or FERS assets, accumulated plan benefits, or unfunded liabilities, if any, which may be applicable to its employees.  Such reporting  is the responsibility of the Office of Personnel Management (OPM).

Statement of Federal Financial Accounting Standards (SFFAS) No. 5, "Accounting for Liabilities of the Federal Government," requires employing agencies to recognize the cost of pensions and other retirement benefits during their employees' active years of service.  Refer to Note 18 C Imputed Financing Sources, for additional details.

17. Federal Employee Compensation Benefits

The Federal Employees Compensation Act (FECA) provides income and medical cost protection to covered Federal civilian employees injured on the job, employees who have incurred a work-related occupational disease, and beneficiaries of employees whose death is attributable to a job-related injury or occupational disease. The total FECA liability consists of an actuarial and an accrued portion as discussed below.

Actuarial Liability:  The U.S. Department of Labor (DOL) calculates the liability of the Federal Government for future compensation benefits, which includes the expected liability for death, disability, medical, and other approved costs.  The liability is determined using the paid-losses extrapolation method calculated over the next 37-year period.  This method utilizes historical benefit payment patterns related to a specific incurred period to predict the ultimate payments related to that period.  The projected annual benefit payments were discounted to present value.  The resulting Federal Government liability was then distributed by agency.  The Department portion of this liability includes the estimated future cost of death benefits, workers' compensation, medical, and miscellaneous cost for approved compensation cases for the Department employees.  The Department liability is further allocated to component reporting entities on the basis of actual payments made to the FECA Special Benefits Fund (SBF) for the three prior years as compared to the total Department payments made over the same period.

The FECA actuarial liability is recorded for reporting purposes only.  This liability constitutes an extended future estimate of cost which will not be obligated against budgetary resources until the FY in which the cost is actually billed to the Department.  The cost associated with this liability cannot be met by the Department without further appropriation action.

Accrued Liability:  The accrued FECA liability is the amount owed to the DOL for the benefits paid from the FECA SBF.

18. Principles of Consolidation

The consolidated/combined financial statements of the Department include the accounts of the AFF/SADF, WCF, OBD, USMS, OJP, DEA, FBI, INS, BOP, and FPI.  All significant proprietary intra-entity transactions and balances have been eliminated in consolidation.  The Statement of Budgetary Resources and Statement of Custodial Activity are combined statements for FYs 2002 and 2001, and as such, intra-entity transactions have not been eliminated.

19. Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.

Note 2.  Fund Balance with the U.S. Treasury

The Fund Balance with the U.S. Treasury amount reported in the financial statements represents the unexpended cash balance on the Department's books for all the Department's Treasury Symbols:

				FY 2002		FY 2001
Fund Balances:
	Trust Funds			$ 1,786,921		$ 2,559,459
	Revolving Funds			54,201		52,928
	Appropriated Funds			16,039,972		14,190,701
	Other Fund Types			2,981,986		3,032,232
		Total Fund Balance with Treasury		$ 20,863,080		$ 19,835,320
Status of Fund Balances:
	Unobligated Balance - Available			$ 3,560,354		$ 2,135,996
	Unobligated Balance - Unavailable			1,488,816		1,956,907
	Obligated Balance not yet Disbursed			15,813,910		15,742,417
		Total Status of Fund Balances		$ 20,863,080		$ 19,835,320

 

Note 3.  Cash, Foreign Currency and Other Monetary Assets

				FY 2002		FY 2001
Cash:
	Undeposited Collections			$ 40,890		$ 50,230
	Imprest Funds			8,528		8,105
	Seized Cash Deposited			9,533		8,255
	Other Cash			1,136		892
		Total Cash		60,087		67,482
Foreign Currency				218		164
Other Monetary Assets:
	Other Monetary Assets			2,103		2,623
	Seized Monetary Instrument			53,548		62,034
		Total Other Monetary Assets		55,651		64,657
		Total Cash, Foreign Currency
		and Other Monetary Assets		$ 115,956		$ 132,303

 

Note 4.  Investments - Federal Securities, Net

			Acquisition Cost		Unamortized				Investments Net		Market Value
					Premium		Discount
As of September 30, 2002:
Intragovernmental
	Non-Marketable Securities
	Market Based		$ 1,293,741		$ 146		$ (2,415)		$ 1,291,472		$ 1,294,024
	Sub-Total		1,293,741		$ 146		$ (2,415)		$ 1,291,472		1,294,024
Accrued Interest			468								468
Total			$ 1,294,209								$ 1,294,492
As of September 30, 2001:
Intragovernmental
	Non-Marketable Securities
	Market Based		$ 1,401,183		$ 247		$ (2,765)		$ 1,398,665		$ 1,400,330
	Sub-Total		1,401,183		$ 247		$ (2,765)		$ 1,398,665		1,400,330
Accrued Interest			837								837
Total			$ 1,402,020								$ 1,401,167

 

Note 5.  Accounts Receivable, Net

				FY 2002		FY 2001
Intragovernmental
	Accounts Receivable			$ 247,493		$ 237,297
	Allowance for Uncollectible Accounts			(4,447)		(4,781)
		Total Intragovernmental		243,046		232,516
With the Public
	Accounts Receivable			270,457		168,711
	Allowance for Uncollectible Accounts			(87,474)		(51,906)
		Total With the Public		182,983		116,805
	Total Accounts Receivable, Net			$ 426,029		$ 349,321

 

Note 6.  Inventory and Related Property

Inventories consist of new and rehabilitated office furniture, equipment and supplies used for the repair of airplanes, administrative supplies and materials, commission sales to inmates (sundry items), metals, plastics, electronics, graphics, and optics.

The value of new stock is determined on the basis of acquisition cost, whereas, the value of rehabilitated stock is determined on the basis of rehabilitation and transportation costs. Inventory on hand at year end is reported at the lower of original costs (using the first-in, first-out method) or current market value.  Recorded values of inventories are adjusted for the results of physical inventories conducted throughout and at the close of the fiscal year.

An allowance for inventory valuation and obsolescence is recorded for anticipated inventory losses of contracts where the current estimated cost to manufacture the item exceeds the total sales price, as well as estimated losses for inventories that may not be utilized in the future.

			FY 2002		FY 2001
Raw Materials			$ 71,115		$ 71,972
Work-In-Process			39,362		28,834
Finished Goods			43,166		53,222
Inventory Purchased for Resale			13,058		11,777
Excess, Obsolete and Unserviceable			(9,778)		(10,921)
Inventory Costs in Excess of Market Value			(2,005)		(2,340)
Held for Current Use			41,449		26,098
	Total Inventory and Related Property		$ 196,367		$ 178,642

 

Note 7.  Forfeited and Seized Property

Anticipated Equitable Sharing in Future Periods:

The statute governing the use of the AFF (28 U.S.C. '524(c)) permits the payment of equitable shares of forfeiture proceeds to participating foreign governments and state and local law enforcement agencies.  The statute does not require such sharing and permits the Attorney General wide discretion in determining those transfers.  Actual sharing is difficult to predict because many factors influence both the amount and time of disbursement of sharing payments, such as the length of time required to move an asset through the forfeiture process to disposition, the amount of net proceeds available for sharing, the elapse of time for Departmental approval of equitable sharing requests for cases with asset values exceeding $1 million, and appeal of forfeiture judgments.  Because of uncertainties surrounding the timing and amount of any equitable sharing payment, an obligation and expense are recorded only when the actual disbursement of the equitable sharing payment is imminent.  From FYs 1997 through 2002, equitable sharing allocation levels averaged $239,212.  The anticipated equitable sharing allocation level for FY 2003 is $206,000.

Analysis of Change in Forfeited Property:

Pursuant to Federal Financial Accounting and Auditing Technical Release 4, "Reporting on Non-Valued Seized and Forfeited Property," the value of forfeited property with no legal market in the United States (e.g., weapons, chemicals, drug paraphernalia, gambling devices) is not included in the net forfeited property value, although the item count of non-valued items is disclosed.

The following table represents the analysis of change in forfeited property for FY 2002:

Forfeited Property Category			Adjust- ments FY 2002	Forfeited During FY 2002	Disposed During FY 2002		Liens and Claims	Ending Balance Net of Liens
		Beginning Balance				Ending Balance
Financial & Other Monetary Instruments	Number	77	5	93	109	66	-	66
	Value	$ 3,884	$ 139	$ 11,377	$ 11,598	$ 3,802	$ 1	$ 3,801
Real Property	Number	244	40	325	326	283	-	283
	Value	$ 27,670	$ 5,412	$ 52,105	$ 47,761	$ 37,426	$ 127	$ 37,299
Personal Property	Number	2,462	474	11,705	11,046	3,595	-	3,595
	Value	$ 25,089	$ 1,558	$ 62,011	$ 59,224	$ 29,434	$ 3,366	$ 26,068
Non-Valued	Number	886	(132)	705	668	791	-	791
Total	Number	3,669	387	12,828	12,149	4,735	-	4,735
	Value	$ 56,643	$ 7,109	$ 125,493	$ 118,583	$ 70,662	$ 3,494	$ 67,168

 

During FY 2002, $71,452 of forfeited property was sold, $19,913 was returned to owners, and $27,218 was disposed of by other means.  Other means of distribution include property transferred to other federal agencies for official use or equitable sharing, property distributed to a state or local agency, or destroyed.

The number of items represents quantities calculated using many different units of measure.  Adjustments include property status and valuation changes as a result of fair market appraisals and/or court orders received during FY 2002.

The following table represents the analysis of change in forfeited property for FY 2001:

Forfeited Property Category			Adjust- ments FY 2001	Forfeited During FY 2001	Disposed During FY 2001		Liens and Claims	Ending Balance Net of Liens
		Beginning Balance				Ending Balance
Financial & Other Monetary Instruments	Number	65	(4)	82	65	78	1	77
	Value	$ 3,887	$ (1,162)	$ 7,653	$ 6,371	$ 4,007	$ 123	$ 3,884
Real Property	Number	288	46	273	359	248	4	244
	Value	$ 36,634	$ 5,985	$ 34,173	$ 48,932	$ 27,860	$ 190	$ 27,670
Personal Property	Number	6,539	761	9,798	14,319	2,779	317	2,462
	Value	$ 31,380	$ 1,008	$ 66,706	$ 72,296	$ 26,798	$ 1,709	$ 25,089
Non-Valued	Number	802	(6)	1,434	1,338	892	6	886
Total	Number	7,694	797	11,587	16,081	3,997	328	3,669
	Value	$ 71,901	$ 5,831	$ 108,532	$ 127,599	$ 58,665	$ 2,022	$ 56,643

 

During FY 2001, $77,641 was forfeited property was sold, $26,860 was returned to owners, and $23,098 was disposed of by other means.  Other means of distribution include property transferred to other federal agencies for official use or equitable sharing, property distributed to a state or local agency, or destroyed.

The number of items represents quantities calculated using many different units of measure.  Adjustments include property status and valuation changes as a result of fair market appraisals and/or court orders received during FY 2001.

Note 7.  Forfeited and Seized Property  - Continued

Analysis of Change in Seized Property and Evidence:

A seizure is the act of taking possession of goods in consequence of a violation of public law.  Seized property consists of monetary instruments, real property and tangible personal property in the actual or constructive possession of the seizing and the custodial agencies.  Such property is not legally owned by the Department until judicially or administratively forfeited.  Seized evidence includes cash, financial instruments, non-monetary valuables and illegal drugs.

Pursuant to Federal Financial Accounting and Auditing Technical Release 4, "Reporting on Non-Valued Seized and Forfeited Property," the value of seized property with no legal market in the United States (e.g., weapons, chemicals, drug paraphernalia, gambling devices) is not included in the net seized property value, although the item count of non-valued items is disclosed.  The gross value of seized property, less estimated liens, equals the net seized property value.

The following table represents the analysis of change in seized property for FY 2002:

			Adjust- ments FY 2002	Seized During FY 2002	Disposed During FY 2002		Liens and Claims	Ending Balance Net of Liens
Seized Property Category		Beginning Balance				Ending Balance
Financial & Other Monetary Instruments	Number	429	(24)	145	118	432	-	432
	Value	$ 38,753	$ (1,398)	$ 6,011	$ 4,705	$ 38,661	$ 228	$ 38,433
Real Property	Number	203	125	275	302	301	-	301
	Value	$ 46,416	$ 17,033	$ 38,234	$ 46,533	$ 55,150	$ 7,765	$ 47,385
Personal Property	Number	5,307	1,483	15,192	13,859	8,123	-	8,123
	Value	$ 63,707	$ 4,034	$ 121,391	$ 91,977	$ 97,155	$ 13,178	$ 83,977
Non-Valued	Number	822	(203)	722	716	625	-	625
Total Seized for Forfeiture	Number	6,761	1,381	16,334	14,995	9,481	-	9,481
	Value	$ 148,876	$ 19,669	$ 165,636	$ 143,215	$ 190,966	$ 21,171	$ 169,795
Seized for Evidence	Number	26,556	10,348	13,486	9,809	40,581	-	40,581
	Value	$ 80,890	$ (30,160)	$ 36,033	$ 26,517	$ 60,246	$ -	$ 60,246
Total	Number	33,317	11,729	29,820	24,804	50,062	-	50,062
	Value	$ 229,766	$ (10,491)	$ 201,669	$ 169,732	$ 251,212	$ 21,171	$ 230,041

 

Note 7.  Forfeited and Seized Property  - Continued

During FY 2002, $109,017 of seized property was forfeited, $46,184 was returned to owners, and $14,531 was disposed of by other means.  Other means of distribution include seized property that is sold, converted to cash, or destroyed.

Seized cash deposited (see Note 3) in the SADF of $9,533 is not presented in this note.  Also, the number of items represents quantities calculated using many different units of measure.  Adjustments include property status and valuation changes as a result of fair market appraisals and/or court orders received during FY 2002.

The following table represents the analysis of change in seized property for FY 2001:

			Adjust- ments FY 2001	Seized During FY 2001	Disposed During FY 2001		Liens and Claims	Ending Balance Net of Liens
Seized Property Category		Beginning Balance				Ending Balance
Financial & Other Monetary Instruments	Number	245	13	279	101	436	7	429
	Value	$ 42,265	$ (6,776)	$ 11,607	$ 8,131	$ 38,965	$ 212	$ 38,753
Real Property	Number	188	121	217	241	285	82	203
	Value	$ 49,642	$ 4,107	$ 31,977	$ 31,188	$ 54,538	$ 8,122	$ 46,416
Personal Property	Number	4,410	3,101	10,948	11,890	6,569	1,262	5,307
	Value	$ 62,773	$ 12,532	$ 103,865	$ 103,109	$ 76,061	$ 12,354	$ 63,707
Non-Valued	Number	878	60	1,458	1,568	828	6	822
Total Seized for Forfeiture	Number	5,721	3,295	12,902	13,800	8,118	1,357	6,761
	Value	$ 154,680	$ 9,863	$ 147,449	$ 142,428	$ 169,564	$ 20,688	$ 148,876
Seized for Evidence	Number	20,508	-	9,760	3,712	26,556	-	26,556
	Value	$ 77,747	$ -	$ 26,464	$ 23,321	$ 80,890	$ -	$ 80,890
Total	Number	26,229	3,295	22,662	17,512	34,674	1,357	33,317
	Value	$ 232,427	$ 9,863	$ 173,913	$ 165,749	$ 250,454	$ 20,688	$ 229,766

 

During FY 2001, $103,145 of seized property was forfeited, $38,580 was returned to owners, and $24,024 was disposed of by other means, including $23,321 of DEA and FBI disposals that were not reported in FY2001.  Other means of distribution include seized property that is sold, converted to cash, or destroyed.

Seized cash deposited (see Note 3) in the SADF of $8,255 is not presented in this note.  Also, the number of items represents quantities calculated using many different units of measure.

Adjustments include property status and valuation changes as a result of fair market appraisals and/or court orders received during FY 2002.

The DEA and FBI have custody of illegal drugs taken as evidence for legal proceedings.  In accordance with Federal Financial Accounting and Auditing Technical Release No. 4, "Reporting on Non-Valued Seized and Forfeited Property," the Department reported the total amount of seized drugs below by quantity (kilograms) only, as illegal drugs have no value and are destroyed upon resolution of legal proceedings. 

The following table represents the analysis of change in Seized Narcotics Held for Evidence for FYs 2002 and 2001:

		Analyzed During FY 2002	Disposed During FY 2002
Analyzed Drug Evidence	Beginning Balance			Ending Balance
	KG	KG	KG	KG
Cocaine	290,059	69,159	37,494	321,724
Heroin	2,509	1,044	478	3,075
Marijuana	46,258	12,607	17,750	41,115
Methamphetamine	4,832	1,653	1,325	5,160
Other narcotics	57,277	19,530	9,790	67,017
Total	400,935	103,993	66,837	438,091
		Analyzed During FY 2001	Disposed During FY 2001
Analyzed Drug Evidence	Beginning Balance			Ending Balance
	KG	KG	KG	KG
Cocaine	287,222	36,888	34,051	290,059
Heroin	2,153	736	380	2,509
Marijuana	43,845	26,766	24,353	46,258
Methamphetamine	4,206	1,714	1,088	4,832
Other narcotics	35,961	33,525	12,209	57,277
Total	373,387	99,629	72,081	400,935

 

Bulk and unanalyzed drugs held by DEA are not included in the above tables.

Note 8.  General Property, Plant and Equipment, Net

Items are generally depreciated using the straight line method.

As of September 30, 2002	Acquisition Cost		Accumulated Depreciation		Net Book Value		Service Life
Land and Land Rights	$ 182,631		$ -		$ 182,631		N/A
Construction in Progress	1,795,646		-		1,795,646		N/A
Buildings, Improvements and
Renovations	5,665,845		(1,549,000)		4,116,845		24-50 yrs
Other Structures & Facilities	464,523		(164,935)		299,588		10-50 yrs
Aircraft	245,715		(83,016)		162,699		7-25 yrs
Boat	3,440		(1,307)		2,133		18 yrs
Vehicles	440,982		(258,447)		182,535		2-25 yrs
Equipment	732,327		(408,846)		323,481		2-25 yrs
Assets Under Capital Leases	125,959		(37,093)		88,866		5-20 yrs
Leasehold Improvements	295,992		(107,422)		188,570		2-20 yrs
Internal Use Software	36,559		(10,955)		25,604		5 yrs
Internal Use Software in Development	59,000		-		59,000		N/A
Other General Property, Plant and Equipment	5,215		(2,950)		2,265		10-20 yrs
Total	$ 10,053,834		$(2,623,971)		$ 7,429,863

 

As of September 30, 2001	Acquisition Cost		Accumulated Depreciation		Net Book Value		Service Life
Land and Land Rights	$ 169,450		$ -		$ 169,450		N/A
Construction in Progress	940,960		-		940,960		N/A
Buildings, Improvements and
Renovations	5,585,164		(1,357,544)		4,227,620		24-50 yrs
Other Structures & Facilities	433,734		(144,446)		289,288		10-50 yrs
Aircraft	211,955		(78,217)		133,738		7-25 yrs
Boat	3,440		(1,116)		2,324		18 yrs
Vehicles	377,209		(210,925)		166,284		2-25 yrs
Equipment	657,673		(356,328)		301,345		2-25 yrs
Assets Under Capital Leases	108,443		(28,079)		80,364		5-20 yrs
Leasehold Improvements	216,274		(75,551)		140,723		2-20 yrs
Internal Use Software	18,726		(5,680)		13,046		5 yrs
Internal Use Software in Development	10,326		-		10,326		N/A
Other General Property, Plant and Equipment	3,678		(2,298)		1,380		10-20 yrs
Total	$ 8,737,032		$(2,260,184)		$ 6,476,848