Trust and Custodial Accounting for Seized Funds Held Pending Forfeiture

Course overview

Seized cash and frozen balances may sit with an agency for years before a court decides whether they are forfeited, returned to the owner or paid to victims. During that time the agency holds them in trust, not as its own money. Mixing custodial funds with operating accounts, losing track of interest or failing to reconcile with court records leads to serious audit findings and legal risk. This custodial accounting course shows finance staff how to do it properly.

Participants learn the legal nature of funds held pending forfeiture and the accounting distinction between custodial and owned resources. They practise setting up trust accounts and ledgers, recording receipts by case, allocating interest, handling foreign currency, and processing releases on court orders. Reconciliation is covered in depth: bank to ledger, ledger to case management, and ledger to court orders. The course also addresses reporting custodial balances in financial statements and memorandum records, internal controls, and how auditors test custodial funds.

Participants leave able to account for seized funds held in trust accurately, transparently and in line with court orders.

What you will be able to do

• Explain the legal nature of funds held pending forfeiture
• Separate custodial funds from operating resources
• Record receipts, interest and releases by case
• Reconcile custodial balances with banks, case records and court orders
• Report custodial funds correctly in financial statements
• Apply internal controls that auditors will test

Who should attend

For accountants and finance officers who hold or record seized and frozen funds on behalf of courts, agencies or third parties.

• Finance officers in asset recovery agencies
• Judiciary accountants
• Police and exhibits finance staff
• Treasury accountants
• Internal auditors
• External auditors

Course outline

Fees are per participant in US dollars and cover tuition, course materials and your certificate. Travel and accommodation are not included.