Office of the Inspector General
U.S. Department of Justice
Director, Asset Forfeiture Management Staff
U.S. Department of Justice
We have audited the accompanying consolidated balance sheets of the Assets Forfeiture Fund and Seized Asset Deposit Fund, a financial reporting component of the U.S. Department of Justice referred to herein as the AFF/SADF, as of September 30, 2002 and 2001, and the related consolidated statements of net cost, changes in net position, and financing, and its combined statements of budgetary resources, for the years then ended. These financial statements are the responsibility of the Asset Forfeiture Management Staff's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin No. 01-02, Audit Requirements for Federal Financial Statements. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the AFF/SADF at September 30, 2002 and 2001, and its net cost of operations, changes in net position, budgetary resources, and financing for the years then ended in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 1.B. to the financial statements, the AFF/SADF implemented OMB Bulletin No. 01-09, Form and Content of Agency Financial Statements, during fiscal year 2002 and reclassified fiscal year 2001 financial statements to conform to this presentation.
The Management's Discussion and Analysis (MD&A) and Required Supplementary Information (RSI) are not required parts of the financial statements but are supplementary information required by the Federal Accounting Standards Advisory Board and OMB Bulletin No. 01-09, Form and Content of Agency Financial Statements. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the MD&A and RSI. However, we did not audit this information and express no opinion on it.
In accordance with Government Auditing Standards, we have also issued a report dated December 2, 2002 on our consideration of AFF/SADF's internal controls and a report dated December 2, 2002 on its compliance with laws and regulations. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.
December 2, 2002