CONFIDENTIAL
FUND



	Model Policy


Effective Date December 1, 1989		Number	
Subject Confidential Fund Monies			
Reference		Special Instructions	
Distribution	Reevaluation Date November 30, 1990	No. Pages	

I.	PURPOSE
	The purpose of this policy is to establish accounting and control procedures for the confidential fund.

II.	POLICY
	It is the policy of this law enforcement agency to maintain stringent control over all confidential fund monies used by the agency, and to ensure that the funds are used only for authorized purposes.

III.	DEFINITIONS
	A.	Confidential Fund:  The agency accounting and banking system that provides officers with investigative expense monies.
	B.	Confidential Fund Custodian:  The employee(s) or unit responsible for dispensing and monitoring the use of investigative funds by officers.

IV.	PROCEDURES
	A.	Authorization
		1.	The confidential fund custodian shall have the following responsibilities with respect to the agency's confidential fund:
			a.	Maintenance of the fund in accordance with all appropriate laws and procedures;
			b.	Proper disbursements and deposits;
			c.	Bookkeeping and banking procedures;
			d.	Direction of a quarterly internal audit of the fund by a third party;
			e.	Maintenance of a file containing copies of all relevant fund transaction documents; and
			f.	Purging of the confidential fund records in accordance with state records retention provisions.
		2.	An annual audit of the confidential fund shall be  performed by an independent accounting authority from outside the department in order to evaluate the continued integrity of the fund, and the need for any additional controls.
		3.	The confidential fund custodian shall make disbursements from the confidential fund only to authorized personnel for the following purposes:	
			a.	Payments that are to be made directly to confidential informants;
			b.	Investigative funds for the purchase of illegal drugs, contraband and other criminal evidence;
			c.	Purchases of food and beverages for a confidential informant;
			d.	Expenditures for authorized undercover operations; and
			e.	Flash and front money.
		4.	The confidential fund custodian shall not be permitted to make disbursements from the confidential fund to himself.
		5.	Confidential fund transaction records shall be stored in a secured location, and access shall be restricted in accordance with applicable laws, ordinances and agency procedures.
	B.	Withdrawals and Expenditures from Fund
		1.	Each month the approved supervisor shall submit to the confidential fund custodian a memorandum listing the names of officers authorized to make withdrawals from the fund.  All officers seeking to make withdrawals from the fund who are not on the authorization list must obtain approval from an appropriate supervisor.
		2.	Prior to the issuance of any money from the confidential fund, an officer shall complete and submit to the fund custodian a written and approved request for funds.
		3.	The confidential fund custodian shall issue the requesting officer a copy of the receipt acknowledging that funds were requested and received by the officer.
		4.	Authorized officers needing front money for an operation shall withdraw such funds at the beginning of the shift.
	C.	Accounting for Expended Funds
		1.	All officers receiving confidential fund monies shall prepare a written expense report accounting for all monies withdrawn from the fund, as soon as practical.  The report should include:
			a.	Item or informant control number on which the monies were expended;
			b.	Date and place of the expenditure;
			c.	Copies of receipts;
			d.	Type of investigation; and
			e.	Case number, where applicable.
		2.	The written expense report with all supporting documents and receipts shall be submitted to the appropriate supervisor for review and approval.
		3.	For all funds expended, the officer issuing payment shall ensure that an appropriate receipt is obtained, unless such an action would jeopardize a transaction or operation.
		4.	All unexpended funds shall be returned to the confidential fund custodian by the officer as soon as practical.1  The fund custodian shall issue the officer a receipt acknowledging that such funds were redeposited as unexpended.
		5.	Each officer may maintain a personal file containing a record of all confidential fund transactions, and copies of all relevant receipts and agency fund forms.



                
  1An agency may wish to narrowly define this phrase to a specific time period.





	BY ORDER OF


	                         
	CHIEF OF POLICE



The IACP Model Confidential Fund Policy is intended to serve as a guide for the law enforcement executive who is interested in formulating a written procedure to prevent and resolve potential problems with the use of confidential funds.  The law enforcement  executive is advised to refer to all federal, state and municipal statutes, ordinances, regulations and judicial and administrative decisions to ensure that the policy he seeks to implement meets the unique needs of the jurisdiction.