Final Report Asset Forfeiture Albany County Sheriffs Office September 2022 Susan Rizzo, Comptroller Stephanie Slominski CIA, CFE, Chief AuditorAsset Forfeiture Albany County Sheriffs Office Final Report ‘September 2022 Table of Contents Executive Summary. 3 Background. 3 Objectives sh Scope. 7 4 Approach 4 Observations. : 4 Conclusion . a ‘Appendix. 9 ‘Appendix I 10 ‘Appendic It aAsset Forfeiture Albany County Sheriffs Office Final Report September 2022 Executive Summary ‘The Albany County Sheriffs Office requires improvements related tothe evaluation and approval of expenditures utilizing forfeited funds in accordance with permissbilty regulations. ‘As a result of this review, it was also determined that the procedures for expending forfeited funds must be maintained by the Albany County Comptroller's Office, Department of Audit and Control (DAC) according to legal requrements'. The Albany County Sheriffs Office agreed that the custody and process for expending of forfeited funds will be migrated to the DAC and will bbe processed in the same manner as all ther County funds. At the time this report was issued, the DAC and the Albany County Sheriff's Office staff were engaged in steps necessary to prepare for the migration. Background ‘The Albany County Sheriff's Office conducts investigations and makes arrests for alleged criminal offenses in Albany County and partcipaes in join investigations with other State, Federal and local law enforcement agencies. During the course of arrests and investigations, assets, including, ‘ath, vehicles and other property ae seized from suspects alleged to have commit a crime. At the time of disposition ofa case, all seized assets are forfeit if determined” ‘© Tothave been used to conduct criminal activity; ‘+ Are the proceeds ofa criminal activity: or + Were purchased with the proceeds ofa criminal activity. These assets are dispersed according to Federal and New York State regulations?” Funds are utiized to satisy liens against sald property, provide restitution co the crime victims and reimburse actual expense incurred to seize, protect and maintain sald property. Remaining funds are divided among the respective aw enforcement agencies and the respective District Attorney's Office. Additionally, 2 portion of funds from New York State cases must be dispersed to NYS (Office of Addition Services and Supports (OASAS). The DAC audits all nancial processes and controls, in all Albany County Departments, including controls over forfeited funds on a periodic basis. The balances of the Federal and NY State accounts at the end of April 2022 were $ 26 million and $90,000 respectively. Us Barn of oie on Troy “Gt quale Shr Se Lc an Teal Law Eco gece’ 209 dt, "qal Shoring ert attrac Regan ond YS Genera Machel EMU) Are? §67 svt test feo td aly ower cate = dpe nde sult fe nds ted ide freuen ee Sus banter of ats nd rau, "Gt 1 Epub Shr fr Se Lc and Tel Law Econ Agence NPS Ca ‘rect hs (CM) OMPER A AATLE IDA $1249 “Dap of Popeye, 3Asset Forfeiture Albany County Sherifs Office Final Report September 2022 Objectives ‘© Identity the process forthe life cycle of seized assets from the inception at the time of an arrest to the eventual disposition; + Determine whether adequate controls exist overall steps involved with the maintenance of seized assets; ‘©. Logging and secure storage of seized assets atthe time of arrest; (© Appropriate liquidation (sale) of non-cash assets; (© Remittance of funds to the appropriate agency (party) at time of disposition: ‘©. Accounting and processing expenditure of Department portion of forfeited funds. ‘© Determine whether all expenditures charged to forfeited funds are permissible based on applicable laws and mandatory guidance; + Determine if adequate documentation exists to support all transactions related to the expenditure of selzed assets; and + Provide recommendations to the Albany County Sheriff's Office as necessary Scope ‘This audit was conducted pursuant to Article 4, Section 403( of the Albany County Charter which states that the “Comptroller shall audit the financial records and accounts ofall officers snd einplayees charged with any duty relating to County funds or funds for which the Couney i= responsible.” The scope of this review includes all transactions related to all forfeited funds in possession of the Office for the period from January I, 2019 through May 31, 2022. Approact ‘To accomplish these objectives the DAC performed the following: ‘+ Review all applicable Federal and State laws and regulations related to seized assets; ‘Review internal policies within the Albany County Sheriff's Office related to seized assets; + Conduct interviews with che Albany County Sheriffs Office management to gain understanding of existing process related to seized assets; and ‘Identify all eransacions, test for compliance and determine if adequate documentation is availabe to support all expendicures. Observations ‘Our observations were essentially identified during preliminary discussions and analysis of data reports and bank statements. It was determined thatthe process for maintaining and expending forfeited funds would be migrated to the Comptroller's Ofice at the commencement of this uit. 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The migration of the final approval and payment stage of the expenditure process to the DAC will serve as an additional level of contol | would lke to thank the Albany County Sherrif and his staff for thelr cooperation and assistance, and for providing us with the materials and documentation to complete this audit. The DAC will continue to perform follow up procedures and work closely with the Sheriffs Office to ensure there are adequate controls over all aspects related to forfeited funds. — f : . KI Abe Ub, Sephanie Seminal CIA, CFE Susan Rizzo, County Comptroller (Chief Auditor cc: Michael Monteleone, Executive Undersheriff Wiliam Rice, Undersheriff Edward Dott, Executive Deputy Comptroller Michael Wheeler, Executive Deputy ComptrollerAsset Forfeiture ‘Nbany County Sherifs Office Final Report september 2022 Appendix “To-complete this audit we conducted interviews with the following individuals: + Craig. Apple sr, Albany County Sheriff ‘+ Michael Monteleone, Executive Undersheriff ‘illam Rice, Undersherift ‘© John Cox, Budget Analyst Hector Fernandez, investigatorAsset Forfeiture [Abany County Sheriffs Office Final Report September 2022 ALBANY COUNTY SHERIFF'S OFFICE County Cur ine Alan, Yor 2207) 7-00 ‘Osher 18,2022 op. Suse Rizzo, Couaty Compuoller 112 Sie Steet Roe 1030. ‘Albany, New You 12207 ear Comptroller Rizzo: 1 am wring in opt the eon at onda hy your fin, Fin fl de you for taking the tine to expla the sooe ad purpose ft auli. Ab, [woud be remiss fT did point ou the profesionsism displayed by your staf utr. Aft reviewing heat sems we would have to are to dgreon the ws of cerain Soeur funds. Alf ur finds are pet flowing the fedetal guidelines du othe conolted ste ‘opinions Al, the pion ha sezns toe followed inthis abit i 27 year oop tha ex ‘arta edcn today all he moreso, ee the aed to and youth spor, programs sn ‘rgnizatins that promete postive yout engrgerents. With he amount of volnce occuring in our ‘Suman ite more inporan ow wih ret reson o ke ou oul ngage and out Ue justice ‘stam. Our expenditures helped do just that Nona, understand yur position and ook forward to woking with youn the Fate Be well. oe, ares ee 10Asset Forfeiture ‘Albany County Sherifs Office Final Report September 2022 Appendix lil — Sear eae seen Soares —s omnes i= conrraotusn Cog D. Apple Se, Atany Coan Shei 16 agle Steet ‘by, 1207 Re: Seen Ast and Forte Pogam Ait ‘Audios Response Managensat Shei Ape: Thank 0 or you reson pang or bsrvaon. The Department of Ait and Cont (DAC) pon hs not changed lingo bean 2 Creme Fad Uns) th aig sed on le pidnce rset y te goveing sabes. “The DAC willow ny new guide sly he yee ators oneneing sl fn, ‘The DAC wiles reve any fae plinth Ay County Shi Oc eceives im BOs uae wih rapes fo th err fete peril se of sad a In he rin, requests ‘abt ote DAC fr payment gee unde mat bw te expense sony comet law enc. The DA a develope li frm open fr expends be ced Fetted fons fo low far derigon of how an expen els 1 enfant nd te econ creo ied by we ‘Alten Coo Comptoir Cher Auioe Da erin dant Cn Mita Wocelr car Day Conple ‘Misa Monae, Eee Deny Sl” n