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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. a N (0 LL. QJ .� QJ +-+ tLS U 4- C O U Q Q N O �,. C tv N i2 Q Ql Q U_ O a H W :� W