2012

ConfidentialFund Guide
ByrneJusticeAssistanceGrant(JAG)

Planning,Grants,andResearch IdahoStatePolice

EDWARDBYRNEMEMORIALJUSTICEASSISTANCEGRANT CONFIDENTIALFUNDGUIDE ConfidentialFundDescriptionandBackground

AmongthegrantprogramsadministeredbyIdahoStatePolice(ISP)Planning,Grants,andResearch(PGR), theEdwardByrneMemorialJusticeAssistanceGrant(JAG)istheonlyoneinwhichconfidentialfundsare authorized. Confidential funds are normally described as being in one of three (3) distinct categories of usage:PurchaseofServices(P/S),PurchaseofEvidence(P/E),andPurchaseofSpecificInformation(P/I). Allrecipients,includingsubgrantedtaskforcemembers,mustfollowtheseguidelinesinordertocomply withfederalandstaterulesandregulations.Thefollowingisacompilationofrequirementstakenfromthe OfficeofJusticePrograms(OJP)FinancialGuideandPGRAdministrativeGuide. PurchaseofServices:ThiscategoryincludestravelortransportationofanonFederalofficeroran informant;theleaseofanapartment,businessfront,luxurytypeautomobile,aircraftorboat,or similar effects to create or establish the appearance of affluence; and/or meals, beverages, entertainment, and similar expenses (including buy money, flash rolls, etc.) for undercover purposes,withinreasonablelimits.Inthemajorityofcases,flashrollfundsarenotexpended,but areavailableifcircumstancesrequiretheofficeroragenttoutilizethesefundstoproperlyproceed withtheinvestigation. Purchase of Evidence: This category is for purchase of evidence and/or contraband, such as narcotics and dangerous drugs, firearms, stolen property, counterfeit tax stamps, and so forth, requiredtodeterminetheexistenceofacrimeortoestablishtheidentityofaparticipantinacrime. PurchaseofInformation:Thiscategoryincludesthepaymentofmoniestoaninformantforspecific information. All other informant expenses would be classified under P/S or P/E and charged accordingly. Confidentialfundsmustonlybeaccessedbyauthorizedsubgranteestaffwhentheparticularmeritsofa subgrantrelated investigation warrant their expenditure. The provisions of this guide apply to all JAG subgrantee projects whose award includes confidential funds, including task force members requesting confidentialfunds. A flow chart graphically depicting the establishment, use, and accountabilities for confidential funds is providedinAppendix1. SamplesofspecificformsnecessarytodocumentconfidentialfundtransactionsareincludedinAppendix2, and are identified in appropriate portions of the guide. Although documentation requirements for confidential funds may appear to be daunting,eachformofdocumentationisacriticalelementinthe propermanagementofthisfundsource.Theextremelydelicatenatureofconfidentialfundtransactions requires an additional level of security and protection beyond those afforded federal funds in more generalbudgetcategories.

ConfidentialFundsRequirements
As stated, other federal funds require reasonable levels of protection against abuse or misuse, but confidential funds impose far more stringent requirements on subgrantee management systems. Prior approval is required for all recipients of these funds, including all members of task forces, and must be basedonafindingthattheyareareasonableandnecessaryelementofprojectoperations. In this regard, the approving authority at each subgrantee level must also ensure that the controls over disbursement of confidential funds are adequate to safeguard against the misuse of these funds. The followingspecificdesignfeaturesarerequiredofallrecipientsofconfidentialfunds: 1. ConfidentialFundsCertification Asignedcertificationthattheprojectdirectorandunitsupervisorhaveread,understand,andagree to abide by these provisions is required from all recipients of confidential funds. The signed certificationmustbesubmittedbytheoriginalsubgranteeatthetimeofgrantapplicationaswellas by task force agencies when funds are requested. Procedures must be in place prior to the expenditure of any confidential funds. The Subgrantee Confidential Fund Certification form is includedinAppendix2. 2. WrittenProcedures Eachsubgrantprojectauthorizedtodisburseconfidentialfundsmustdevelopandfollowwritten internalprocedureswhichincorporatethefollowingelements,ataminimum.Deviationsfromthese elementsmustreceivepriorapprovalfromPGR. a.ImprestFund Thefundsauthorizedforconfidentialexpendituresmustresideinanimprestfundwhichis controlled by a bonded cashier. An imprest fund is essentially a dedicated fund for advancesofconfidentialmonies. b.AdvanceofFunds Thesupervisoroftheunittowhichtheimprestfundisassignedistheauthorizationsource foralladvancesofconfidentialfunds.Authorizationforfundwithdrawalmustbeinwritten formandmustincludethecasenumberorotherreference.Inaddition,theauthorization must include the amount of expenditures or fund usage, specify the information to be received,andthenameoftheofficeroragentrequestingthefunds.InallP/Ipurchasesthe assumed/code name of the informant must also be included. In those P/E or P/S cases whichinvolvetheuseofaninformant,theassumed/codenamemustalsobeincluded.

c.AdditionalCashierResponsibilities Theimprestfundcashiermustmaintainaconfidentialfundactivitylog,whichisasummary documentforallpaymentsmadefromorreturnedtotheimprestfund.Anexampleofthe Confidential Fund Activity Log is provided in Appendix 2. The cashier will also provide financialdatatotheprojectfinancialofficerorprojectdirectortoenabletheircompletion ofthequarterlyreconciliation. d.InformantFiles Informantfilesareconfidentialfilesofthetruenames,assumednames,andsignaturesof all informants to whom payments of confidential expenditures have been made. To the extent possible, pictures and/or fingerprints of the informant payee(s) must also be maintained.IntheRISSProgram(seeSectione)theinformantfilesaretobemaintainedat thememberagenciesonly.Projectheadquartersmaymaintaincasefiles.Formoredetails regardinginformantfilerequirements,seepage6. e.RegionalInformationSharingSystems(RISS)Programhttp://www.riss.net/ RISS is a national federally funded program of regionally oriented services designed to enhancetheabilityoflocal,State,Federal,andtribalcriminaljusticeagenciesto: f.CashRequests/Receipts/Reconciliation The officer or agent seeking a confidential fund payment will complete the appropriate portion of the Cash Request/Receipt/Reconciliation form, obtain authorization from the unitsupervisor,andpresentittotheimprestfundcashierforpayment.Theimprestfund cashier will complete his/her portion of the request/receipt form prior to making a confidentialpayment.Followingthetransaction,butnomorethan10daysafterreceiptof theadvancepayment,theofficeroragentmustpresentacompletedexpensevoucherand assistinthecompletionofthetransactioninconjunctionwiththeimprestfundcashier. Forsecuritypurposes,theremustbea48hourlimitontheamountoftimeforwhich fundsadvancedforP/E,P/I,orP/Sexpendituresmaybeheldoutstanding.Inthecaseof confidentialfundsissuedtoataskforcememberbythesubgranteeagency,theclock startswhenthememberagencyscashiermakesthedisbursementtotheofficeror agentonthecase. Identify, target, and remove criminal conspiracies and activities spanning multi jurisdictional,multistate,andsometimesinternationalboundaries. Facilitaterapidexchangeandsharingofinformationamongtheagenciespertaining toknownsuspectedcriminalsorcriminalactivity. Enhancecoordinationandcommunicationamongagenciesthatareinpursuitof criminalconspiraciesdeterminedtobeinterjurisdictionalinnature.

Ifitbecomesapparentatanypointwithinthe48hourperiodthatthefundswillnotbe used,thefundsmustbereturnedtotheadvancingcashierassoonaspossible.Awritten extensiontothe48hourlimitmustbegrantedbythelevelofmanagementthat approvedtheadvance. Extensionsaregenerallylimitedtonomorethananadditional48hours.Recipientsmust consultwiththeprojectdirectorpriortodeterminingthefinalcourseofaction.Beyond thistimeperiod,thefundsmustbereturnedandreadvancedifnecessary.Factorsto consideringrantinganextensionaretheamountoffundsinvolved,safeguardingof funds,lengthofextensionrequired,andimportanceoftheexpenditure. Regardlessofcircumstances,within48hoursoftheadvance,thefundcashiermustbe presentedwitheithertheunexpendedfunds;anexecutedreceiptforP/I,P/E,orP/Sor writtennotificationbymanagementthatanextensionhasbeengranted.AsampleCash Request/Receipt/ReconciliationformisincludedinAppendix2. g.InformantPayeeReceipt An Informant Payee Receipt must identify the exactamountpaidtoandreceivedbythe informantonthedateoftheactualtransaction.Cumulativeoranticipatoryreceiptsarenot permitted.Oncethereceipthasbeencompleted,noalterationisallowed.Theofficeror agent preparing the receipt must ensure that it contains the following information, at a minimum: Thenameofagency/jurisdiction; Adescriptionoftheinformationreceived; Theamountofpayment,bothinnumericalandwordform; Thedateonwhichthepaymentwasmade; Thesignatureoftheinformantpayee; Thesignatureofthecaseofficeroragentmakingpayment; Thesignatureofatleastoneotherofficerwitnessingthepayment;and Thesignatureofthefirstlinesupervisorauthorizingandcertifyingthepayment.

AsampleInformantPayeeReceiptformisincludedinAppendix2. h.ReviewandCertificationforP/IExpenditures Thesignedreceiptfromtheinformantpayeewithamemorandumdetailingtheinformation receivedmustbeforwardedtotheofficeroragentincharge. The officer or agent in charge will compare the signatures, evaluate the information received in relation to the expense incurred and make any explanatory remarks on the reportoftheofficeroragentwhomadetheexpenditure,andwillensurethatthereceiptis retainedintheinformantfile.

i.RecordofConfidentialFundUsage The nature of confidential funds usage requires the subgrantee to examine each expenditure to determine the degree to which the funds benefit investigations or other projectgoals.AmechanismdesignedforthispurposeistheRecordofConfidentialFund UsageformincludedinAppendix2.Thisrecordallowstheprojectdirectortodescribethe detailsofeachconfidentialfundtransaction,andprovidesabasisfortheanalysisrequired in the quarterly reconciliation described below. This report must be retained and made availableforreviewuponrequest. j.ConfidentialFundQuarterlyReconciliationReport Theprojectdirectormustprepareaquarterlyreconciliationreportontheimprestfundfor thedurationoftheproject'sfederalfunding.ThereportshouldnotbeforwardedtoPGR, butwillbereviewedduringonsitecompliancereviews,unlessotherwiserequested. Thisreportincludesbasicfundfinancialdata,aswellasananalysisoftheinvestigativevalue offundsused,i.e.didtheinformationcontributeslightlytotheinvestigationeffort,didit contributesubstantially,ornotatall? Beyondbecominganadditionalsourcedocument,thisreportwillprovidethesubgrantee withatooltodeterminetheongoingvalueofinformantinformation. Inmostcasesthisreconciliationreportwillbecompletedbytheprojectdirectororhis/her designee, with financial input from the project financial officer, and/or the imprest fund cashier.AsampleofaQuarterlyReconciliationReportisincludedinAppendix2. k.DuplicationofServices Acriticalconsiderationforsubgranteesutilizingconfidentialfundsisavoidingthepotential duplicationofinformantpaymentsforthesameservices,evidence,orinformation.Thisis ofparticularconcerntomultijurisdictionaltaskforcesinwhichseveralagenciesmaybe involvedinthedevelopmentofcases.TheInformantAgreement,includedinAppendix2, clearlyprohibitstheinformantfromreceivingduplicatepayments.Theprojectdirectorand his/her officers or agents must exercise constant vigilance as they engage in subgrantee activitiestoensureduplicationofpaymentsdoesnotoccur. l.RecordsRetentionandAudit Each subgrantee expending confidential funds must retain all necessary records for no fewer than three (3) years after the final subgrantee reports have been approved. This threeyear period may be extended if an audit resolution process for any or all of the subgranteefundsisincomplete.Allrecordsrelatingtotheuseofconfidentialfundsmust bemadeavailableforreviewbyauthorizedfederalofficialsorPGRwiththesoleexception ofthetruenamesofinformants.

InformantFileSecurityandMaintenance
Aseparatefilemustbeestablishedforeachinformantforaccountingpurposes. Informantfilesmustbekeptinaseparateandsecurestoragefacilityandundertheexclusivecontrol oftheprojectdirector,manager,oranemployeedesignatedbyhim/her. Thefacilitymustbelockedatalltimeswhenunattended. Accesstothesefilesmustbelimitedtothoseemployeeswhohaveanecessaryandlegitimateneed. Aninformantfilemustnotleaveitsimmediateareawithinthestoragefacility,exceptforreviewby amanagementofficialorthehandlingagent,andmustbereturnedpriortothecloseofbusinesson thedayofitsreview. Signout logs must be kept indicating the date, informant number, time in and out, and the signatureofthepersonreviewingthefile.

Eachfilemustincludethefollowingdocumentation: InformantPaymentRecordeasilyaccessibleontopofthefile.Thisrecordprovidesasummaryof informantpayments. InformantEstablishmentRecord,includingcompleteidentifyingandlocatingdata,plusanyother documentsconnectedwiththeinformantsestablishment. Current photograph and fingerprint card (or Federal Bureau of Investigation [FBI]/State criminal identificationnumber). Agreementwithcooperatingindividual. ReceiptsforP/I. Copiesofalldebriefingreports(exceptfortheheadquarterscasefile). Copiesofcaseinitiationreportsshowingtheuseofaninformant(exceptfortheheadquarterscase file). Copies of statements signed by the informant (unsigned copies will be placed in appropriate investigativefiles). Anyadministrativecorrespondencepertainingtotheinformant,includingdocumentationofany representationsmadeonhis/herbehalforanyothernonmonetaryconsiderationsfurnished. Anydeactivationreportordeclarationofanunsatisfactoryinformant.

ProceduralSafeguardsforConfidentialFunds
In exercising his/her authority to approve these expenditures, the unit supervisor must consider the significanceoftheinvestigation,theneedforthisexpendituretofurtherthatinvestigation,andanticipated expendituresneededforotherinvestigations. FundsforP/E,P/I,orP/Sexpendituresshouldbeadvancedtotheofficeroragentforaspecificpurpose.If they are not expended for that purpose, they must be returned to the cashier. All flash roll amounts advancedmustbereturnedtothecashier,withtheexceptionofthosecasesinwhichtheofficeroragent iscompelledtoexpendsomeportionofthesefundstofurtherthecauseoftheinvestigation.Ifsuchcases occur, the officer or agent must provide an appropriate level of documentation for the unplanned expenditureashe/shecompletesthefundreconciliationprocess. Funds advanced for a specific purpose must not be used for another purpose without a return and reauthorizationforthenewpurpose. Whennotendangeringthesafetyoftheofficer,agent,orinformant;P/Sexpendituresneedtobesupported bycanceledtickets,receipts,leaseagreements,orsimilarappropriatedocuments.Ifnotavailable,theunit supervisororprojectdirectormustprovideabriefmemorandumforrecordstatingthereasonforthelackof documentation.

Appendix1 FLOWCHART

BYRNEJUSTICEASSISTANCEGRANT(JAG) CONFIDENTIALFUNDFLOWCHART
FUNDCERTIFICATIONCOMPLETED IMPRESTFUNDESTABLISHED CASHIERBONDED

INFORMANTFILESESTABLISHED

INFORMANTAGREEMENTSCOMPLETED

CONFIDENTIALFUND ADVANCEFORMCOMPLETED

FLASHROLL

PURCHASEOFSERVICES(P/S)

PURCHASEOFEVIDENCE(P/E)

PURCHASEOFINFORMATION(P/I)

INFORMANTRECEIPTOBTAINED (IFINFORMANTISUSED) CONFIDENTIALFUNDRETURN/ RECONCILIATIONFORMCOPMLETED

FUNDCASHIERDEVELOPSAND MAINTAINSACTIVITYLOG

RECORDOFCONFIDENTIALFUND USAGEMAINTAINED

PROJECTDIRECTORCOMLETESQUARTERLY RECONCILIATIONREPORT

Appendix2 FORMS

PLANNING,GRANTSANDRESEARCH
SUBGRANTEECONFIDENTIALFUNDCERTIFICATION

This is to certify that I have read, understand, and agree to abide by all of the conditions and requirements for confidential funds as set forth in the Edward Byrne Memorial Assistance Grant Confidential Fund Guide published and provided by the Idaho State Police Planning, GrantsandResearchSection.

SubgranteeAgencyName

SubgrantNumber

ProjectDirectorSignature

DateofSignature

UnitSupervisorSignature

DateofSignature

CONFIDENTIALFUND
ACTIVITYLOG

SubgranteeAgencyName: SubgrantNumber:

CashierName: FundBeginningBalance:

Date

*Transaction TypeCode

SourceorPayee

Check Number

CheckDate

Transaction Amount

FundBalance

*TransactionTypeCodes:

Code1:Subgrantpaymentreceived Code2:AdvancetoOfficer/Agent Code3:Repaymentoffullorpartialadvance Code4:ReimbursementtoOfficer/Agentforoutofpocketcosts Code5:Miscellaneousorauditadjustment

CONFIDENTIALFUNDADVANCE
CASHREQUEST/RECEIPT/RECONCILIATIONFORM
I. OFFICER/AGENTREQUEST DateofRequest:

NameofRequestingOfficer/Agent: Work/CellPhone: AmountofRequestedAdvance: $ RequestofPurchaseType(CheckOne): Services(P/S)

CaseorReferenceNumber: Evidence(P/E) Information(P/I)

Informant'sCodeName(IfrequestingP/Iadvance): SignatureofRequestingOfficer/Agent: II. AUTHORIZATION TitleofUnitSupervisor: DateofSignature:

NameofUnitSupervisor: Work/CellPhone: AuthorizingIndividualSignature: III. ADVANCEPAYMENT/RECEIPT FormofPaymenttoOfficer/Agent: Cash

DateofSignature:

Check#

AmountofPayment(IfdifferentthanSectionIrequest): SignatureofImprestFundCashier: IV. RECONCILIATIONOFADVANCE NameofReturningOfficer/Agent: ActualExpensesIncurred: $ ActualAmountReturnedorDuetoOfficer/Agent: $ DateofPayment:

AmountofAdditionalPaymentMadetoOfficerorAgent: $ SignatureofImprestFundCashier: SignatureofOfficerorAgent: V. REMARKS DateofSignature: DateofSignature:

INFORMANTPAYEERECEIPT

CaseorReferenceNumber:

Forandinconsiderationofthesaleanddeliverytothe
(AgencyName)

of:

Services

Evidence

Information

describedasfollows:

Iherebyacknowledgereceiptof
(Numerals) (N l)

(
(Words) (W d)

) paidtome

on
(DateofPayment)

Signature(Informant/Payee)

Signature(Witness)

Signature(Officer/Agent)

Signature(AuthorizingSupervisor)

CONFIDENTIALFUND
RECORDOFUSAGE
I.PAYMENT/FUNDUSEINFORMATION InformantAssumedName: Wasanimprestfundadvanceprovided: No Yes IDNumber: Amount: CaseNumber:

II.EXPENDITURE/FUNDUSEDETAILSANDRESULTSOBTAINED: Foreachexpenditureorfundusagetype,indicatedates,details,amountsandresults Expenditure/FundUseType PurchaseofServices/FlashRoll(P/S) Date Details Amount Results Supportedinformant'sefforts Keptinformantactive Other(Describe)

PurchaseofEvidence(P/E) (Describeevidencetype,quantity, value,andpresentlocation;including evidencecontrolnumber(s),ifany.

Evidenceobtainedordescribedinthe "Details"column Other(Describe)

PurchaseofInformation(P/I) (Providesufficientdetailforevaluation oftheeffectivenessoftheinformation intermsofresultsachieved)

Identificationofsuspects Location/likelylocationofevidence NewLeads Arrest Other(Describe)

III.AFFIRMATION/APPROVAL: Idosolemnlyswearoraffirmthattheamountsreportedabovearejust andtrueinallrespects,andwereexpendedintheperformanceof officialduties. Ihavereviewedtheinformationhereindescribed,andfindthatthe requirementsforcontrolofconfidentialfundshavebeenmet.

Officer/AgentName(Print)

ApprovingAuthorityName(Print)

OfficerSignature

Date

ApprovingAuthoritySignature

Date

CONFIDENTIALFUND
QUARTERLYRECONCILIATION
I. FUNDRECONCILATION ReportingQuarter:

SubgrantNumber:

QuarterBeginningBalance:

ExpensesthisQuarter:

QuarterEndingBalance:

II.

CONFIDENTIALFUNDTRANSACTIONANAYSIS:

Provide a narrative description of confidential funds utilized during the reporting quarter. This narrative should focus on the investigative value derived from expenditures. Use additional sheets as necessary:

ProjectDirectorSignature

Date

CONFIDENTIALFUND
INFORMANTAGREEMENT
It is understood and agreed that any funds advanced to the informant herein named are provided for the purposes described below. The informant further agrees to provide, to the best of his or her ability, the evidence, information, or services described in this agreement and will not accept duplicate paymentsfromanyotherentitytoprovidethesameevidence,information,orservices. Furthermore, it is understood that funds issued for these stated purposes are the property of the agency named below, provided by the U.S. Department of Justice through the Idaho State Police, and anymisuseofthesamebytheinformantwillrendertheinformantliabletoprosecution. Itisfurtherunderstoodthattheinformantentersintothisagreementfreelyandwithoutcoercion.

Descriptionofevidence,information,orservicestobeprovidedbytheinformant:

InformantName

InformantSignature

Date

AgencyName

AgencyAddress(Street,City,StateandZipCode)

Officer/AgentName

Officer/AgentSignature

Date

WitnessName

WitnessSignature

Date