Audit of Controls Over Seized Asset Funds Released

KILLEEN, Texas (July 11, 2025) - City Auditor Matthew Grady has conducted an independent review of how the Killeen Police Department (KPD) and the Finance Department manage funds obtained from seized assets. The goals of the audit were to (1) determine whether adequate measures are in place to ensure the accurate recording and appropriate expenditure of these funds, as well as (2) verify that the KPD compiles with all applicable federal and state regulations governing the use and reporting of seized assets allocated to the agency.

As of the 2024 fiscal year, KPD reported having $738,608 in seized asset funds, with $467,702 allocated for the development of the department's Real Time Crime Center (RTTC), which officially launched on March 17, 2025. This advanced facility is designed to enhance response times, improve officer collaboration, and strengthen citywide surveillance efforts.

The City Auditor's review found that both the KPD and the Finance Department maintain a strong system of internal controls for managing seized asset funds, based on the principle of separation of key duties. Separation of duties is an accounting principle that requires the delegation of key responsibilities to separate individuals. These responsibilities include custody (physical control over the asset, e.g., check, p-card, inventory), recording (entering transactions regarding the asset into the accounting system), authorization (the authority to use the asset), and reconciliation (a periodic review of transactions to identify errors or irregularities). Oftentimes, a breakdown in this principle can lead to fraudulent activities, as it may allow an individual to authorize personal transactions while manipulating accounting records to avoid detection.

While the KPD demonstrates good and effective controls over seized asset funds, the storage conditions of seized vehicles could be improved. Currently, these vehicles are stored in several uncovered locations as they await the District Attorney's disposition of the related criminal cases, which can take years in some cases. In the interim, exposure to extreme environmental conditions can diminish not only the integrity of vehicles as evidence, but also their value as potential assets for the department, or as revenue-generating assets when sold at auction. In light of these findings, the City Auditor recommends establishing a goal to improve long-term storage solutions for seized vehicles.

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View Audit Here

About the City of Killeen

Founded in 1882, the City of Killeen combines a charming hometown feel with vibrant cultural experiences influenced by its military heritage and diverse community. With over 160,000 residents, the city is committed to providing municipal services and facilities that meet the essential health, safety, and welfare needs of its residents while also enhancing the overall quality of life. Discover what makes Killeen special at https://www.killeentexas.gov.