WASHINGTON – Feb. 9, 2012 – The Commerce Department Inspector General has released their final report , More Action Needed to Improve Controls in Asset Forfeiture Fund. They conducted the review to address concerns with controls over the Asset Forfeiture Fund (AFF) raised in OIG reports published in January 2010 and July 2010, which revealed several weaknesses in NOAA's management and internal controls over the AFF. The July 2010 report also showed that NOAA inconsistently identified accounts that constituted the AFF.
Their review focused on determining (I) if NOAA properly defined assets comprising the AFF, including the completeness and accuracy of funding sources, (2) if NOAA appropriately defined allowable uses of fund assets and developed controls over collections and disbursements, and (3) if the audit plan of the independent auditor of the AFF financial statements was designed to provide reliance on the AFF cash balances as of March 31, 2011, and if the independent auditor could provide an opinion on the balance.
They found that NOAA (I) lacks appropriate controls to assure that all proceeds from fines, penalties, and forfeitures are received and accurately recorded, and (2) has not accurately recorded or adequately pursued the total amount owed for fines and penalties. Their report describes these weaknesses in detail and recommends steps to strengthen controls over Asset Forfeiture Fund activities. They also noted that the AFF does not contain all fines, penalties, and forfeited proceeds collected by NOAA for marine resource violations; described NOAA's accounting for the use of fines and penalties from Northeast Multispecies Fishery Management Plan violations; and provided a further clarification of AFF inflow and outflow data.
A bill sponsored by Congressman Barney Frank, HR 2610 – Asset Forfeiture Fund Reform and Distribution Act of 201, would address deficiencies related to the Asset Forfeiture Fund.
The bill currently has 12 cosponsors:
Rep Courtney, Joe [CT-2]
Rep Guinta, Frank C. [NH-1]
Rep Jones, Walter B., Jr. [NC-3]
Rep Keating, William R. [MA-10]
Rep Lynch, Stephen F. [MA-9]
Rep Markey, Edward J. [MA-7]
Rep McGovern, James P. [MA-3]
Rep McIntyre, Mike [NC-7]
Rep Michaud, Michael H. [ME-2]
Rep Pallone, Frank, Jr. [NJ-6]
Rep Pingree, Chellie [ME-1]
Rep Tierney, John F. [MA-6]
1. The bill refunds attorney’s fees from the Asset Forfeiture Fund (AFF). Victims would be compensated for attorney’s fees capped at $200,000. The Secretary of Commerce would have 60 days to determine whether to provide a reimbursement and the amount of the reimbursement.
2 – The remaining funds and all fines collected by September 30th FY 2011 in the AFF will then be distributed to NOAA and the states per an 80/20 distribution with 80% going to NOAA for stock assets and 20% percent to the states for research and other purposes as outlined in the bill:
(i) fishery research and independent stock assessments, including cooperative research;
(ii) socioeconomic assessments, including socioeconomic conditions of fishing communities;
(iii) data collection, including creation of an information system that will enable timely audit and transmission of data for utilization by researchers and other collaborating institutions;
(iv) compensation for the costs of analyzing the economic impacts of fishery management decisions and to analyze potential methods to provide targeted compensation to fisherman that have been harmed by such management decisions;
(v) at-sea and shoreside monitoring of fishing;
(vi) preparation of fishery impact statements;
and
(vii) other activities that a Regional Fishery Management Council of which the State is a member considers to be necessary to rebuild or maintain sustainable fisheries, ensure healthy ecosystems, provide socioeconomic economic assistance, or maintain fishing communities.’’.
3 –100% of future AFF funds collected in FY 2012 and beyond will be used for solely for state research – removing the Agency incentive for higher fines.
4 – NOAA must reassign its ALJs in the various Council Regions after a 5 year period. They may accomplish this be either moving an ALJ into another region, or hiring an ALJ form another Agency. This part of the bill is no long needed because NOAA is no longer using Coast Guard ALJs. They signed an MOA with the EPA in September.
Read the complete report from the Commerce Department Inspector General.