Transcript MANAGING THE DRUG FUND

MANAGING THE DRUG
FUND
Municipal Technical Advisory Service
County Technical Assistance Service
Rex Barton
Terry Hazard
Ralph Cross
Steve Walker
Housekeeping
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Registration forms AND sign-in forms
Introduce yourself
Fire exits?
Breaks
Ask Questions
Questions now?
Pre-test
Pre-test
1. All revenues from drug fines are
deposited in the “drug fund.” T/F
2. Revenues from the sale of vehicles
forfeited to the city as a result of being
used to transport or sell drugs go to
the “drug fund.” T/F
3. Revenues from the sale of vehicles
seized for second or subsequent
offense DUI go to the “drug fund.” T/F
Pre-test
4. Revenues from the sale of vehicles
seized for Driving on a Revoked
Drivers License go to the “drug fund.”
T/F
5. The “drug fund” is under the control of
the city recorder/trustee. T/F
6. Funds from the “drug fund” may be
appropriated to local drug treatment
programs. T/F
Pre-test
7. The “drug fund” can be used to buy
dog food and veterinary services for
the drug dog. T/F
8. The “drug fund” can be used to
purchase handguns for patrol officers.
T/F
9. A drug agent (officer) must create a
written receipt for every transaction
with an informant. T/F
10. The “drug fund” budget must be
approved by the District Attorney
The “Drug Fund”
• The “drug fund” is a special revenue
account.
– Similar to solid waste fund account or
aid fund account.
– It is under the control of the city
recorder/trustee !!
street
• Confidential expenditures are made from a
separate account (confidential account).
Sources of Revenue
• Fines from drug offenses
– 50% of the fine goes to the drug fund (special
revenue account).
– 50% of the fine goes to the General Fund.
• Forfeited cash and the proceeds from the
sale of forfeited property.
• Donations.
• Appropriations from governing body.
FINES
50%
FORFEITED CASH
AND THE PROCEEDS
FROM THE SALE
OF FORFEITED PROPERTY
DONATIONS
SPECIAL REVENUE
ACCOUNT
(City Recorder/Trustee)
50%
GENERAL FUND
APPROPRIATIONS
LEGITIMATE
EXPENDITURES
• Local Drug Treatment Programs
• Drug Education Programs
• Drug Enforcement
– Operational expenses
– Confidential expenses
• Non-recurring General Law Enforcement
Expenditures
• Automated Fingerprint Machines
DRUG ENFORCEMENT
• Operational
– Automobiles for Drug Investigators
– Maintenance and Operational Expenditures for
drug officers automobile
– Telephone Charges, including cellular charges
– Office Supplies and Office Equipment for Drug
Investigation Officers
– Drug Identification Kits For Drug Investigators
and Patrol officers
DRUG ENFORCEMENT (cont)
• Operational (cont)
– Drug Enforcement Training
– Drug Dogs and Their Maintenance, Including
Feed and Veterinary Service
• General Drug Enforcement Expenditures
Are Not Confidential
– Must follow city/county purchasing guidelines
NON-RECURRING GENERAL
LAW ENFORCEMENT
• Not Drug Investigation related
• Expenditures:
–
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–
–
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Patrol or administrative vehicles
Blue lights, sirens, radios, and radar units
Video cameras
Handguns, but not ammunition
Fax machine or copier
NON-RECURRING GENERAL
LAW ENFORCEMENT (cont)
• Expenditures (cont)
– Cellular telephones for general law
enforcement or administrative personnel
– Patrol Dogs (non-drug dogs), but not feed or
veterinary services
AUTOMATED FINGERPRINT
MACHINES
• Must set aside 20% of drug fund revenues
until machine is purchased or have an
agreement with another agency (having a
machine)
• After purchase or agreement, may use 20%
of revenues to pay for line charges and
maintenance
DONATIONS
• Any charitable donation must follow state
law
• Cities
– TCA 6-54-111
• Counties
– TCA 5-9-109
DONATIONS,
Generally speaking
• Must be a 501(c)(4) or (6) organizations
• Must provide financial reports, including
audit, to government
• Funds for non-profits other than charitable
organizations may be made once notices
have been published in a newspaper of
general circulation, specifying amount and
purpose
PROCEDURES
SPECIAL REVENUE
ACCOUNT
• Under the control of the Recorder/Trustee
• Budget for drug fund approved annually
• Except confidential expenditures, MUST
follow city/county purchasing guidelines
• Confidential Expenditures MUST follow
Comptroller’s guidelines
FINES
FORFEITED CASH
AND THE PROCEEDS
FROM THE SALE
OF FORFEITED PROPERTY
DONATIONS
APPROPRIATIONS
SPECIAL REVENUE
50%
ACCOUNT
(City Recorder/Trustee)
50%
GENERAL FUND
CONFIDENTIAL
ACCOUNT
SPECIAL REVENUE
ACCOUNT
(City Recorder/Trustee)
Expenditures
Must Follow
Purchasing Guidelines
CONFIDENTIAL
ACCOUNT
Expenditures
Must Follow
Comptroller’s
Guidelines
AND NOW……..
My friend, Ralph
Separate Checking Account??
Purchasing Guidelines??
General
Fund
Gas
Fund
State Street Aid
Spec Rev Fund
How many checking accounts do
we actually need?
Drug
Fund
Solid Waste
Fund
Water
Fund
A “Fund” is defined as:
• A self balancing set of accounts;
• A record of all cash, revenue, and other
financial resources;
• A record of all disbursements, expenditures,
liabilities, and reserves or balances.
Given that definition, is a fund
required to have it’s own
checking account?
No.
Is it probably a good idea?
Yes.
Why?
Using one checking account for all
funds is certainly authorized
- - however - by definition, the account groups
must be kept separately
- - including - cash balances in each fund.
Reconciling one checking account
for all funds will be more difficult.
Why is the discussion of checking accounts
important in the context of this class?
To emphasize the point that a fund and a
checking account have distinct functions
and the terms are not to be used
interchangeably.
The municipal “Drug Fund”, by
statute, is under the control of the
City Recorder whether it has a
separate checking account or not.
The “Confidential Checking Account”,
authorized by the Comptroller in the
Procedures for Handling Cash
Transactions Related to Undercover
Investigative Operations of County and
Municipal Drug Enforcement Programs,
is under the control of the Police Chief
or Sheriff.
Purchasing Procedures
The Drug Fund, like any other fund of
the municipality or county, is required
to comply with municipal or county
purchasing procedures.
Purchasing Procedures
• Purchasing procedures may be found in:
– Municipal Charter
– Purchasing Ordinances
• If those are silent on the issue, you fall under
the 1983 Municipal Purchasing Law.
Purchasing Procedures
• Purchasing limits prescribed by the 1983
Municipal Purchasing Law:
–$
0 to $1,000 = Direct Purchase
– $1,000 to $2,500 = 3 Competitive Quotes
– $2,500 and above = Competitive Bidding
• Municipalities are authorized to lower the
amount for competitive bidding below $2,500
or increase it up to $10,000.
Purchasing Procedures
Purchases,leases or lease-purchases of less
than $2,500 don’t have to be advertised.
Unless specifically exempt, all purchases,
leases, or lease-purchases of like or related
items bought during the fiscal year totaling
more than $2500 must be publicly
advertised.
Allowable exemptions, when bought in the open
market, include fuel and fuel products and
perishable goods.
Purchasing Procedures
• The 1983 Municipal Purchasing Law
exempts municipalities from competitive
bidding requirements when:
– Purchasing real property;
– Purchasing from a sole source;
– Emergency purchases are required.
Purchasing Procedures
• Other General Laws on Purchasing
include:
– Authorization to make purchases from the
State contract without bidding;
– Purchasing from other governments without
bidding as long as the selling entity met it’s
purchasing requirements;
– Purchase at public auctions.
Purchasing Procedures
• Purchasing requirements are
complicated.
• If you don’t know what to do,
ask for help.
And now, the county side of
accounting and purchasing….
CONFIDENTIAL ACCOUNT
CONFIDENTIAL
EXPENDITURES
• Confidential Expenditures
– Payments made to an informant
– Payments made to an undercover agent
– Money spent to actually purchase drugs as part
of an investigation
– Gasoline or maintenance for undercover vehicle
or informant’s vehicle
• Must follow Comptroller’s Guidelines
DOCUMENTATION
• Documentation for every exchange of funds
• Custodian:
– Exchanges from or to Recorder/Trustee
– Exchanges to or from agents
• Agents:
– Every exchange of funds, and
– Receipt from informant, witnessed
Audit Logs
(Balance Ledger)
• Custodian:
– “Custodian’s Activity Log for Confidential
Transactions” Balance sheet
• Agent:
– “Agent’s Activity Log for all Confidential
Funds” Balance Sheet
– “Summary Informant Log”, for each informant
SPECIAL REVENUE FUND
City Recorder/Trustee
R-1
CONFIDENTIAL ACCOUNT
Chief/Sheriff/Custodian
A-2
CASH
Agent
A-4
Transaction
A-4
A-5
Informant
SPECIAL REVENUE FUND
City Recorder/Trustee
R-1
CONFIDENTIAL ACCOUNT
Chief/Sheriff/Custodian
A-2
A-1
A-7
R-2
R-3
CASH
Agent
A-4
Transaction
A-4
A-5
Informant
SPECIAL REVENUE FUND
City Recorder/Trustee
R-1
CONFIDENTIAL ACCOUNT
Chief/Sheriff/Custodian
A-2
A-3
A-6
A-1
A-7
R-2
R-3
CASH
Agent
A-4
Transaction
A-4
A-5
Informant
SPECIAL REVENUE FUND
City Recorder/Trustee
R-1
CONFIDENTIAL ACCOUNT
Chief/Sheriff/Custodian
A-1
A-7
Custodian’s Activity
Log for Confidential
Funds
Confidential Fund Monthly
Reconciliation Report
R-2
R-3
Quarterly Report
CONFIDENTIAL ACCOUNT
Police Chief/Custodian
A-2
A-3: Agents Activity Log for
Confidential Funds
A-3
A-6
A-6: Summary Informant Payment
Log
CASH
Agent
A-4
Transaction
A-4
A-5
Informant
SPECIAL REVENUE FUND
City Recorder/Trustee
R-1
CONFIDENTIAL ACCOUNT
Chief/Sheriff/Custodian
A-2
A-3
A-6
A-1
A-7
R-2
R-3
CASH
Agent
A-4
Transaction
A-4
A-5
Informant
CONFIDENTIAL FUNDS
EXERCISE
SPECIAL REVENUE FUND
City Recorder/Trustee
R-1
CONFIDENTIAL ACCOUNT
Chief/Sheriff/Custodian
A-2
A-3
A-6
A-1
A-7
R-2
R-3
CASH
Agent
A-4
Transaction
A-4
A-5
Informant
Managing informants?
Best Practices
Managing Informants
• Criminal history for all informants?
Update?
• Command approval?
• Documentation of informant activity
history?
• Correlate informant activity to arrests and
convictions?
Post-test
Post-test
1. All revenues from drug fines are
deposited in the “drug fund.” T/F
2. Revenues from the sale of vehicles
forfeited to the city as a result of being
used to transport or sell drugs go to
the “drug fund.” T/F
3. Revenues from the sale of vehicles
seized for second or subsequent
offense DUI go to the “drug fund.” T/F
Post-test
4. Revenues from the sale of vehicles
seized for Driving on a Revoked
Drivers License go to the “drug fund.”
T/F
5. The “drug fund” is under the control of
the city recorder. T/F
6. Funds from the “drug fund” may be
appropriated to local drug treatment
programs. T/F
Post-test
7. The “drug fund” can be used to buy
dog food and veterinary services for
the drug dog. T/F
8. The “drug fund” can be used to
purchase handguns for patrol officers.
T/F
9. A drug agent (officer) must create a
written receipt for every transaction
with an informant. T/F
10. The “drug fund” budget must be
approved by the District Attorney
RESOURCES
Municipal Technical Advisory Service
www.mtas.tennessee.edu
Rex Barton
(865) 974-0411
[email protected]
Ralph Cross
(615) 532-4946
[email protected]
Division of Municipal Audit
(615) 401-7871
RESOURCES
County Technical Assistance Service
www.ctas.tennessee.edu
Terry Hazard
(615) 532-3555
[email protected]
Steve Walker
(615) 532-3555
[email protected]
Division of County Audit
(615) 401-7841
COUNTY STUDENTS
Be sure and get your COCTP
information and forms before you
leave