Investigative Funds and Flash Money (BF-15, Rev 2)BF -15.0 PURPOSE:
To establish a procedure for maintaining and safeguarding "Investigative" funds (up to
$10,000) and "Flash Money' funds (over $10,000). These funds may be used to: pay
informants; purchase contraband as evidence; provide expenses for surveillance
activities and equipment; provide expenses for investigator's activities. This policy and
procedure is in accordance with the Police Department's Standard Operating
Procedures - Investigative Funds, General Order 940 and Administrative Policy and
Procedures BF -9, Petty Cash.
BF -15.1 DEFINITIONS:
Chits: Any receipt, voucher, or similar document, especially of an informal nature,
documenting certain expenditures such as contraband purchases, and criminal
investigation payments. The slip includes the signatures of the confidential informant
(CI), or the agents /officers /detective receiving investigative funds, the amount and
purpose of payment, description of material or supplies purchased, date, and case
number.
Confidential Informant (CO: Any non -law enforcement person who, by reason of their
familiarity or close association with criminals, supplies regular or constant information
about criminal activities to a law enforcement official, or is paid to supply information, or
receives a recommendation of reduced charges for confidential information, or makes a
controlled "buy' (i.e., stolen property, controlled substances, etc.).
Flash Money (flash roll): Large amounts of currency in excess of $10,000.00 used as
"buy" money in "sting" or other covert investigations.
Informant: A person who is under the direction of a specific police
officer /agent/detective and with or without expectation of compensation, supplies
information on criminal activity; or performs a service for the Police Department related
to the investigation of crime.
ADMINISTRATIVE
SUBJECT:
City of
POLICIES AND PROCEDURES
Budget and Finance
Delray
MANUAL
Investigative Funds and "Flash
Beach
Money"
NUMBER
REVISIONS
EFFECTIVE
PAGE 1 OF 4
BF -15
2
DATE:
October 1, 2015
SUPERSEDES
APPROVED BY: ���
BF -15, Rev. 1
Q_
Donald Cooper, City Manager
BF -15.0 PURPOSE:
To establish a procedure for maintaining and safeguarding "Investigative" funds (up to
$10,000) and "Flash Money' funds (over $10,000). These funds may be used to: pay
informants; purchase contraband as evidence; provide expenses for surveillance
activities and equipment; provide expenses for investigator's activities. This policy and
procedure is in accordance with the Police Department's Standard Operating
Procedures - Investigative Funds, General Order 940 and Administrative Policy and
Procedures BF -9, Petty Cash.
BF -15.1 DEFINITIONS:
Chits: Any receipt, voucher, or similar document, especially of an informal nature,
documenting certain expenditures such as contraband purchases, and criminal
investigation payments. The slip includes the signatures of the confidential informant
(CI), or the agents /officers /detective receiving investigative funds, the amount and
purpose of payment, description of material or supplies purchased, date, and case
number.
Confidential Informant (CO: Any non -law enforcement person who, by reason of their
familiarity or close association with criminals, supplies regular or constant information
about criminal activities to a law enforcement official, or is paid to supply information, or
receives a recommendation of reduced charges for confidential information, or makes a
controlled "buy' (i.e., stolen property, controlled substances, etc.).
Flash Money (flash roll): Large amounts of currency in excess of $10,000.00 used as
"buy" money in "sting" or other covert investigations.
Informant: A person who is under the direction of a specific police
officer /agent/detective and with or without expectation of compensation, supplies
information on criminal activity; or performs a service for the Police Department related
to the investigation of crime.
SUBJECT: Investigative Funds and "Flash Money'
NUMBER: BF -15, Rev. 2
Page 2 of 4
Investigative Funds (IF): Currency supplied by the Finance Department to selected
investigative units /sections in amounts to be determined by the Chief of Police,
Commanding Officer or designee.
Ledger: A book utilized by the Police Department to track all transactions concerning
allotted investigative funds.
Special Investigation (Confidential) Fund: A petty cash fund used specifically by the
Police Department in support of the vice, narcotics and organized crime control
functions and to aid in furthering criminal investigations.
Sting: Typically having a law- enforcement officer or cooperative member of the public
playing a role as criminal partner or potential victim and going along with a suspect's
actions to gather evidence of the suspect's wrongdoing.
Sting Operation: A deceptive operation designed to catch a person committing a
crime.
BF -15.2 PROCEDURE:
The Organized crime unit will maintain all funds in a secure location within the Section
Commander's Office.
Investigative Funds- up to $10,000
The Investigative fund, $10,000 or less, will be administered under the procedural
guidelines as a Petty Cash Fund in accordance with the Petty Cash Administrative
Policy and Procedures number BF -9, with the exception of supporting recipts required
for reimbursement (i.e. "chits ") that contain confidential information that would reveal the
details of an investigation. Those receipts will not be submitted with the reimbursement
request, but will be remain with the Section Commander of the police department and
must be made available to Finance during any Investigative Fund audits
Procedure:
1. Investigative personnel receiving these funds will complete and sign a "Chit"
evidencing the amount requested.
2. These "Chits" are to be maintained with the Section Commander's investigative cash
funds.
3. Investigative personnel will return receipts to their Section Commander or Unit
Supervisor for related cash expenditures.
SUBJECT: Investigative Funds and "Flash Money"
NUMBER: BF -15, Rev. 2
Page 3 of 4
4. The Section Commander or Unit Supervisor will then record the expenditures by
receipt and issuance date in the accounting ledger or a computerized worksheet.
The ledger or worksheet shall include the date, case number, receiving officer,
reason for the expenditure, confidential informant control number (if applicable),
amount expended and available fund balance.
5. Fund replenishments will be prepared in accordance with Petty Cash Administrative
Policy and Procedures BF 9 section 1.10 - Replenishing a Petty Cash Fund with the
exception of supporting recipts required for reimbursement (i.e. "chits ") that contain
confidential information that would reveal the details of an investigation. Those
receipts will not be submitted with the reimbursement request, but will be remain
with the Section Commander of the police department and must be made available
to Finance during any Investigative Fund audit. A memo from the Chief of Police
summarizing the expenditures must accompany the reimbursement request. The
summary ledger containing the date, amount, and explanation of each expense must
be made available to Finance during any Investigative Fund audit.
6. The Unit Commander must reconcile the Investigative Cash Funds on a regular
basis, monthly if the fund is active but no less frequently than quarterly.
"Flash Monet/ " - over $10,000.00
When in need of large amounts of "flash money ", it will be necessary for the Police
Department to submit a memorandum signed by the Police Chief to the City Manager
or designee for approval.
• Being covert in nature, every effort must be used to hasten the request and
approval process, not exceeding three business days from City Manager's
approval to receipt of cash from the bank. To assure confidentiality, this request
should not be disclosed or discussed with anyone who does not have a
legitimate "need to know ".
Procedure:
1. The Commanding Officer will prepare a written memorandum of the
expenditure(s) request and, most importantly, include to whom the check will be
made payable.
2. A check request must accompany the memorandum.
3. The Police Department will need to contact the Treasury Department thereby
alerting Finance of the impending "flash money" amount and denominations
requested.
SUBJECT: Investigative Funds and "Flash Money"
NUMBER: BF -15, Rev. 2
Page 4 of 4
4. The Treasurer, depending on the amount needed, may need to contact the bank
beforehand. This will assure both cash amount and requested denominations
will be available at the bank by the anticipated date of pickup.
5. Once approval is received, a manual check will be provided on the day of the
pick up to the Police Chief or designee as detailed in the memorandum request.
The wording "Flash money" should follow the payee's name to preclude any tax
implications to the payee (i.e. Sam Lobo -flash money).
6. Treasurer or designee will inform Police Department of bank location and pickup
arrangements.
7. A log (Exhibit A) will be completed by the Treasurer or designee indicating the
date, amount, anticipated return date and initials of the payee.
8. The Police Department will prepare and deposit returned funds. The Treasurer
will provide the department with the appropriate deposit slip. The bank validated
original deposit slip will be sent to Finance's Treasurer, as soon as possible.
9. The log will then be filled in by the Treasurer or designee with the date of return
and the amount. The deposit slip will be forward to the Accountant responsible
for bank reconciliations.
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