# Presentation: 717368

## THE JUDGMENT FUND 	

- Kevin McIntyre, Manager
- Judgment Fund Branch
- Financial Management Service
- U.S. Department of the Treasury

- Financial Management Service Conference
- August 9, 2007

## 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**

## What are the criteria for payments from the Judgment Fund?

- Awards or settlements are final;
- Awards or settlements are monetary;
- Payment of the award or settlement is authorized in 31 U.S.C. 1304(a)(3); and
- Payment may not legally be made from any other source of funds

**Notes:**
Provided your claim meets these criteria, these are 

## Claims Not Payable by the Judgment Fund

- Examples
- Administrative awards of $2,500 or less on claims under the Federal Tort Claims Act
- Administrative awards of $100,000 or less on claims under the Military Claims Act
- Judgments against Government Corporations (e.g. Commodity Credit Corporation)
- Judgments against the United States Postal Service

## 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 of           31 USC 1304
- Seeking reimbursements for payments in Notification and Federal Employees  Antidiscrimination and Retaliation (No FEAR) Act and Contract Disputes Act (CDA) cases

## Judgment Fund Branch Focus

- We are a service organization
- Our customers include:
- Federal agencies
- Claimants (e.g., individuals, attorneys, insurance companies)
- Congress
- Taxpayers
- Our goal is to provide excellent service to our customers

## Judgment Fund Payments FY03 – FY07

|  | Payments | Amounts |
| --- | --- | --- |
| FY 2003 | 10,595 | $1,081,328,420 |
| FY 2004 | 8,161 | $800,450,029 |
| FY 2005 | 7,794 | $1,074,131,007 |
| FY 2006 | 8,736 | $697,968,132 |
| FY 2007 thru 7/31 | 6,595 | $1,062,387,142 |

## Submitting Claims to the JFB

- Only claims filed by Federal agencies are accepted
- Claims must be submitted using the required FMS Forms
**FMS Form 194 – Judgment Fund Transmittal **
**FMS Form 196 – Judgment Fund Data Sheet**
**FMS Form 197 – Judgment Fund Voucher for Payment**
- Forms are downloadable in MS Word and PDF formats at
-     _[http://](http://fms.treas.gov/judgefund/forms.html)__[fms.treas.gov/judgefund/forms.html](http://fms.treas.gov/judgefund/forms.html)_
- Claims submitted on obsolete forms will be denied
- Signed court orders or settlement agreements are required
- Online submissions in the future
- Starting in April 2008

## Payment Methods

- ACH (preferred)
- Fed Wire (limited due to cost)
- _I_nteragency _P_ayment _a_nd _C_ollection (IPAC) system
- For agency-to-agency funds exchanges only
- Check (discouraged)

## Payment Status Information

- The Public Access Website
- _[http://fms.treas.gov/judgefund/reports.asp](http://fms.treas.gov/judgefund/reports.asp)_
- Limited information on claims in the JF database (ref. nos., case description, payment amount, relevant dates)
- Contains no sensitive or personally identifying information
- The Authorized User Website
- _[http://fms.treas.gov/judgefund/authorized.html](http://fms.treas.gov/judgefund/authorized.html)_
- Accessible by claims-filing agencies only
- Username and password required for login
- Provides claimant & payee names, agency contact information

## Reimbursable Claims

- _No_tification 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

## 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.

**Notes:**
Speak to: Cases covered under the No FEAR Act:  Federal employee discrimination, whistleblower retaliation

## 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.

**Notes:**
FMS sends quarterly notifications of outstanding balances to CFOs 
Started in 2nd quarter of FY07

## GAO Review of No FEAR and CDA Programs

- Review began in 2006
- Initially reviewed FMS claims data and agency repayment histories
- No FEAR
- No agencies have been posted for non-compliance
- CDA
- Several agencies have outstanding CDA balances

## 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)_

## Judgment Fund Seminar

- Tentative Date: November 2007
- Location: Washington, DC
- Possible Agenda Items:
- Communicating with the Judgment Fund Branch
- Reimbursable payments
- Accounting for Judgment Fund payments
- Legal issues regarding claims
- The Judgment Fund Internet Claims System
- What issues would you like us to address? Send an email to:  _[judgment.fund@fms.treas.gov](mailto:judgment.fund@fms.treas.gov)_
- “Suggested topics for JF seminar” in subject line

## Judgment Fund Internet Claims System (JFICS)

- Benefits:
- Allows agencies to file claims online
- Reduces paper handling and mailing
- Provides immediate feedback on accuracy of information submitted
- Facilitates faster, more accurate processing
- Allows agencies to track claim status in real time

## JFICS Implementation 	

- System is currently under development
- Pilot testing with a limited number of agencies is ongoing
- US Attorney’s Office – Washington, DC
- Army – Fort Meade
- Department of Justice – Environment and Natural Resource Division (ENRD)
- Agencies will be contacted in November 2007 in preparation for implementation
- Planned system implementation: April 2008

## Contact Information

- Kevin McIntyre, Branch Manager
- _Mailing address:_
- Financial Management Service
- U.S. Department of the Treasury
- Judgment Fund Branch
- 3700 East West Highway, Room 6E15
- Hyattsville, Maryland 20782
- _Telephone:_
- Main:	202-874-6664
- Toll free:	866-277-1046
- Fax:	202-874-9522
- _Email:_ ** **_**[judgment.fund@fms.treas.gov](mailto:judgment.fund@fms.treas.gov)**__ _

## Visit the Judgment Fund Website

- _[http://fms.treas.gov/judgefund/](http://fms.treas.gov/judgefund/reports.asp)_
- 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