# Presentation: 749638

## Accounting for Treasury Judgment Fund

- Presented by
- Financial Accounting and Services Division
- Financial Management Service
- September 19, 2007

## Topics

- Background
- Guidance
- Accounting Transactions
- Confirmations
- Contacts

## Background

**What is the Judgment Fund?**
- A permanent, indefinite appropriation available to pay:
- Many judicially and administratively ordered monetary awards against the United States
- Amounts owed under compromise agreements negotiated by the U.S. Department of Justice in settlement of claims arising under actual or imminent litigation, if a judgment on the merits would be payable from the Judgment Fund
- Statutory authority for Judgment Fund appropriation is 31 U.S.C 1304

## Background (cont.)

**Who Administers the Judgment Fund?**
- The Judgment Fund Branch (JFB) of the Financial Management Service (FMS) administers the Judgment Fund.
- The JFB is responsible for:
- Ensuring that the agency has provided sufficient documentation to satisfy the criteria for making a payment from the Judgment Fund.  The criteria is stated in 31 U.S.C. 1304.
- Seeking reimbursements for payments in Notification and Federal Employees Antidiscrimination and Retaliation (No FEAR) Act and Contract Disputes Act (CDA) cases

## Background (cont.)

**Reimbursable Claims**
- _N_otification and _F_ederal _E_mployees _A_ntidiscrimination and _R_etaliation Act (No FEAR)
- 5 U.S.C. 2301 note
- _C_ontract _D_isputes _A_ct (CDA)
- 41 U.S.C. 612

## Background (cont.)

**No FEAR Reimbursement Obligations**
- OPM regulations, 5 CFR Part 724
- Within 45 days of receipt of notice for reimbursement, agencies must:
- Repay FMS, or
- Contact FMS to make arrangements for repayment
- Agencies that do not meet this requirement will be posted annually on FMS’ public website until the obligation is paid or arrangements have been made.

## Background (cont.)

**CDA Reimbursement Obligations**
- 41 U.S.C. 612
- Within 30 days of receipt of notice for reimbursement, the responsible agency must:
- Repay FMS, or
- Contact FMS to make arrangements for repayment
- If the agency fails to respond within 60 days of the initial contact, FMS will send a letter to the responsible agency’s Chief Financial Officer (CFO).
- The agency’s CFO has 30 days to contact FMS regarding reimbursement.
- Starting in FY2008, agencies that fail to make any response will be identified as nonresponsive on FMS’ public website until the obligation has been paid or arrangements have been made.

## Background (cont.)

**Agencies Outstanding Balances**
- Outstanding balances are available on
- No FEAR page:
- 	_[http://fms.treas.gov/tma/fear-act.html](http://fms.treas.gov/tma/fear-act.html)_
- CDA page:
- 	_[http://fms.treas.gov/tma/contract.html](http://fms.treas.gov/tma/contract.html)_

## Background (cont.)

**Visit the Judgment Fund Website**
- _[http://fms.treas.gov/judgefund/](http://fms.treas.gov/judgefund/)_
- Judgment Fund Regulation
- (31 CFR Part 256, Final Rule)
- Treasury Financial Manual
- (1 TFM 6-3100)
- Common Questions page
- Current Judgment Fund forms
- Links
- Public website
- Authorized User website

## Guidance

- SFFAS No. 4, *Managerial Cost Accounting Standards & Concepts*
- SFFAS No. 5, *Accounting for Liabilities of the Federal Government*
- SFFAS No. 30, *Inter-Entity Cost Implementation:  Amending SFFAS 4*
- Interpretations No. 2, *Accounting for Treasury Judgment Fund Transactions*
- Interpretation No. 6, *Accounting for Imputed Intra-departmental Costs:  An Interpretation of SFFAS No. 4*

## Guidance (cont.)

- OMB Circular A-136, *Financial Reporting Requirements*
*Federal Intragovernmental Transactions Accounting Policies Guide*
- TFM Bulletin No. 2007-08, *Yearend Closing*

## Accounting Transactions

_**Agency Accounting for Non-reimbursable payments**_
- Agency records contingent liability for pending litigation with non-federal entity in which the outcome for loss is probable and estimable.
- 	_*Proprietary Entry*_
- 	6790N  Other Expenses Not Requiring Budgetary Resources
- 		 2920N   Contingent Liabilities

## Accounting Transactions (cont.)

- A claim is settled or a court judgment is assessed against a Federal entity, and the Judgment Fund is determined to be the appropriate source of payment.  The Agency submits the proper forms to the Treasury Judgment Fund.
- 	_*Proprietary Entry*_
- 	2920N  	   Contingent Liabilities
- 		    6790N   Other Expenses Not Requiring Budgetary 				    Resources
- 	6730F(**20**)   Imputed Costs
- 		     5780F(**20**)      Imputed Financing Sources

## Accounting Transactions (cont.)

_**Agency Accounting for Reimbursable payments **_
_**(CDA & No FEAR)**_
- Agency records contingent liability for pending litigation with non-federal entity in which the outcome for loss is probable and estimable.
- 	_*Proprietary Entry*_
- 	6800N  Future Funded Expenses
- 		 2920N   Contingent Liabilities

## Accounting Transactions (cont.)

- A CDA or No FEAR claim is settled or a court judgment is assessed against a Federal entity, and the Judgment Fund is determined to be the appropriate source of payment.  The Agency submits the proper forms to the Treasury Judgment Fund.
- 	_*Proprietary Entry*_
- 	2920N      Contingent Liabilities
- 		    6800N   Future Funded Expenses
- 	6100F(**20**) Operating Expenses/Program Costs
- 	                2110F(**20**)  Accounts Payable
- 	3107	     Unexpended Appropriations – Used	  			       5700    Expended Appropriations

## Accounting Transactions (cont.)

- 	_*Budgetary Entry*_
- 	4610	Allotments – Realized Resources
- 		4901F(**20**)   Delivered Orders – Obligations, 				       Unpaid

## Accounting Transactions (cont.)

- The agency reimburses the Treasury Judgment Fund.
- 	_*Proprietary Entry*_
- 	2110F(**20**)	Accounts Payable
- 			1010	Fund Balance with Treasury
- 	_*Budgetary Entry*_
- 	4901F(**20**)	Delivered Orders – Obligations, Unpaid
- 		4902F(**20**)   Delivered Orders – Obligations, 				       Paid

## Confirmations

- Follow the guidance prescribed by FMS in the Federal Intragovernmental Transactions Accounting Policies Guide
- Quarterly, FMS will post the outstanding receivables and revenue posted for that period for both CDA and No FEAR to its website
- Agencies must respond to the accuracy of the amounts reported by FMS

## Contacts

- Jennifer Fitzmaurice, Accounting and Reporting
- 	(202) 874-8257
- 	_[Jennifer.Fitzmaurice@fms.treas.gov](mailto:Jennifer.Fitzmaurice@fms.treas.gov)_
- Teresa Casswell, CDA and No FEAR
- 	(202) 874-7487
- 	_[Teresa.Casswell@fms.treas.gov](mailto:Teresa.Casswell@fms.treas.gov)_