FISCAL YEAR 2022

AGENCY FINANCIAL REPORT

FEDERAL TRADE COMMISSION

FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 3

TABLE OF CONTENTS

INTRODUCTION 5

About This Report 6

How This Report Is Organized 7

The FTC At-A-Glance 8

Message from the Chair 9

MANAGEMENT’S DISCUSSION AND ANALYSIS 11

Agency and Mission Information 12

Performance Highlights 17

Management Assurances 29

Forward Looking Information 32

Financial Highlights 33

FINANCIAL SECTION 47

Message from the Chief Financial Officer 48

Inspector General’s Transmittal Letter for Audit Report 49

Report of Independent Auditors 51

Principal Financial Statements 56

Notes to the Financial Statements 62

OTHER INFORMATION 81

Summary of Financial Statement Audit and Management Assurances 82

Summary of the Top Management and Performance Challenges Identified by the Office of Inspector General 83

Payment Integrity 85

Civil Monetary Penalty Adjustment for Inflation Implementation Reporting Act Details 86

APPENDICES 89

Appendix A: Acronyms 90

Appendix B: Contact Information and Acknowledgements 92

INTRODUCTION
6 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

INTRODUCTION

ABOUT THIS REPORT

The Federal Trade Commission’s (FTC) fiscal year (FY) 2022 Agency Financial Report (AFR) provides financial and high-level 

performance results and demonstrates to the Congress, the President, and the public the FTC’s commitment to its mission and 

accountability over the resources entrusted to it 

This report, available at the FTC’s website, satisfies the reporting requirements contained in the following legislation: 

n Federal Managers’ Financial Integrity Act of 1982

n Prompt Payment Act of 1982

n Government Performance and Results Act of 1993

n Government Management Reform Act of 1994

n Federal Financial Management Improvement Act of 1996

n Reports Consolidation Act of 2000

n Accountability of Tax Dollars Act of 2002

n Government Performance and Results Modernization Act of 2010

n Improper Payments Elimination and Recovery Improvement Act of 2012

n Digital Accountability and Transparency Act of 2014

n Federal Information Security Modernization Act of 2014

n Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015

n Fraud Reduction and Data Analytics Act of 2015

n Payment Integrity Information Act of 2019

The FTC publishes both an AFR and an Annual Performance Report (APR) The FY 2022 APR will be combined with the FY 

2024 Annual Performance Plan (APP) and included in the FY 2024 Congressional Budget Justification The combined APP 

and APR will be available at https://www ftc gov/about-ftc/budget-strategy/budget-performance-financial-reporting along 

with other performance documents 

CERTIFICATE OF EXCELLENCE

The FTC received the Association of 

Government Accountants’ Certificate of 

Excellence in Accountability Reporting for 

its FY 2021 AFR The FTC also received 

a Special Recognition “Best-in-Class” 

Award for discussion that highlights 

the agency’s value The FY 2021 AFR 

demonstrated the value provided by the 

FTC, while quantifying the benefits the 

agency brought to the American public 

by highlighting examples of cases and 

investigations the agency pursued 

 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 7

INTRODUCTION

APPENDICES

O T H E R 

INFORMATION

FINANCIAL

SECTION

HOW THIS REPORT IS ORGANIZED

The FTC Agency Financial Report is organized into the following three major sections, plus supplemental appendices 

1. MANAGEMENT’S DISCUSSION AND ANALYSIS

 The Management’s Discussion and Analysis is required supplementary information that provides 

an overview of the FTC’s financial and summary performance information This section includes 

agency mission and organization, performance goals and highlights, management assurances on 

internal controls, and financial highlights 

2. FINANCIAL SECTION

 This section provides financial details, including the message from the Chief Financial Officer, 

independent auditor’s report, and audited financial statements with accompanying notes 

3. OTHER INFORMATION

 This section provides the Office of Inspector General’s summary of top management and 

performance challenges, a summary of financial statement audit and management assurances, 

payment integrity information, and a schedule of civil monetary penalties’ adjustments for 

inflation 

4. APPENDICES

 Appendix A lists the acronyms cited throughout this report; Appendix B provides contact 

information and acknowledgements 

MANAGEMENT’S

D I S C U S S I O N 

AND ANALYSIS
8 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

INTRODUCTION

THE FTC AT-A-GLANCE 

HISTORY 

The Federal Trade Commission was created on September 26, 1914, when President Woodrow Wilson signed the Federal 

Trade Commission Act into law The original purpose of the FTC was to prevent unfair methods of competition in commerce 

as part of the battle to “bust the trust ” Over the years, Congress passed additional laws giving the agency greater authority 

to police anticompetitive practices, and in 1938, Congress passed a broad prohibition against “unfair and deceptive acts or 

practices ” Since then, the FTC has been further directed by Congress to enforce a wide variety of other consumer protection 

laws and regulations 

LAWS ENFORCED 

The FTC is an independent law enforcement agency with both consumer protection and competition jurisdiction in broad 

sectors of the economy The agency administers a wide variety of laws and regulations Examples include the Federal Trade 

Commission Act, Clayton Act, Telemarketing Sales Rule, Fair Credit Reporting Act, Identity Theft Act, and Equal Credit 

Opportunity Act In total, the commission has enforcement or administrative responsibilities under more than 80 other laws 

PROFILE 

n The agency is headquartered in Washington, D C and operates in seven regions across the United States 

n The agency’s estimated full-time equivalent utilization in FY 2022 was 1,119 

n Total new budget authority for FY 2022 is $379 million, which includes $224 million in general fund appropriations and 

$155 million in spending authority from offsetting collections 

HEADQUARTERS 

The FTC established its headquarters at 600 Pennsylvania Avenue, N W , with President Franklin D Roosevelt laying the 

cornerstone himself Roosevelt remarked, “May this permanent home of the Federal Trade Commission stand for all time as a 

symbol of the purpose of the government to insist on a greater application of the golden rule to conduct the corporation and 

business enterprises in their relationship to the body politic ” Listen to Franklin D Roosevelt’s speech 

The building, which is particularly known 

for its two art deco-style statues, called 

“Man Controlling Trade,” is located at the 

apex of the Federal Triangle, and was the 

culmination of the massive Depression-era 

government building project. Commissioners 

and staff officially moved in on April 21, 

1938, and the building continues to function 

as the FTC’s headquarters, serving the 

agency’s adjudicative, executive, policy, and 

administrative functions.
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 9

MESSAGE FROM THE CHAIR

Lina M Khan, Chair 

Congress created the FTC to foster a vibrant economy fueled by fair competition and an empowered, informed public by rooting out unlawful business practices 

that harm Americans In fiscal year 2022, the FTC continued prioritizing vigorous 

enforcement while also pushing to find efficiencies to help us stretch our scarce 

resources 

On the consumer protection side, the agency brought its first cases pursuant to the 

Opioid Addiction Recovery Fraud Prevention Act and the Military Lending Act In 

total, the agency filed 33 complaints in federal district court and obtained 41 permanent 

injunctions and orders requiring defendants to pay more than $162 7 million in 

consumer redress and disgorgement of ill-gotten gains That amount is especially 

significant given that the FTC can no longer use Section 13(b) of the FTC Act to 

obtain monetary redress and disgorgement, and this legal authority had previously 

been the primary tool that the Commission used to return money to consumers 

Furthermore, the FTC issued 14 new administrative complaints, entered 12 final 

administrative orders, and reviewed compliance in over 300 matters, which included 

nearly 2,000 defendants 

On the competition side we have moved to challenge major unlawful deals in critical 

sectors of the economy, including semiconductors, defense, energy, healthcare, and 

digital markets The FTC brought 23 competition enforcement actions during the 

year In seven of those matters the agency initiated federal court or administrative 

litigation In the other 16 matters the Commission issued consent orders (12) to remedy 

prospective harm to competition, or the parties abandoned and restructured their 

transactions (4) in response to the Commission’s investigation 

Cognizant that consumer complaints and merger filings have been rising much faster 

than the agency budget, we are reestablishing deterrence as a key goal We have worked 

to establish more effective remedies, reorient our enforcement efforts towards root 

causes of competitive harm, and provide clarity about how we will execute the law 

through both individual actions and broader guidance These actions, along with our 

continued work on rulemakings, consumer education, advocacy, and research, will 

ensure the most effective use of our funding 

FINANCIAL MANAGEMENT 

The FTC takes very seriously our commitment of responsible stewardship of the public 

resources entrusted to us by the American taxpayers and Congress The agency’s FY 

2022 independent financial audit yielded our 26th consecutive unmodified opinion, 

the highest audit opinion available The independent auditors did not identify any 

material weaknesses, significant deficiencies, or instances of non-compliance with 

internal controls, financial systems, or laws and regulations I am pleased to report that 

management’s assessment of risks and review of controls and financial systems disclosed 

no material weaknesses, and that the financial and performance data presented here is 

reliable and complete (see Statement of Assurance, p 29) 
10 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MESSAGE FROM THE CHAIR

MANAGEMENT AND PERFORMANCE CHALLENGES 

The Office of Inspector General (OIG) identified five management and performance 

challenges this year: (1) securing information systems and networks from destruction, 

data loss, or compromise; (2) seeking monetary relief for consumers; (3) successfully 

managing the volume of merger transactions; (4) controlling expert witness costs; (5) 

managing records and sensitive agency information In addition, the OIG highlighted 

managing consumer misuse of the consumer sentinel network as a “watch list” item that, 

while not a serious management challenge, still requires attention Agency management 

agrees that these are important challenges and concurs with the IG’s assessment of our 

progress in addressing these challenges (see p 83) 

The Commission is committed to vigorously enforcing the law to protect all Americans 

and to working with federal and state government partners to achieve our mission 

Lina M Khan, Chair 

November 14, 2022
M A N A G E M E N T ’ S 

D I S C U S S I O N 

AND ANALYSIS
12 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

AGENCY AND MISSION INFORMATION

The work of the Federal Trade Commission (FTC) is critical 

to protecting and strengthening free and open markets and 

promoting informed consumer choice, both in the United 

States (U S ) and around the world The FTC performs its 

mission through the use of a variety of tools, including law 

enforcement, rulemaking, research, studies on marketplace 

trends and legal developments, and consumer and business 

education 

VISION

A vibrant economy fueled by fair competition and 

empowered, informed public 

MISSION

Protecting the public from deceptive or unfair business 

practices and from unfair methods of competition through 

law enforcement, advocacy, research, and education 

WHAT WE DO

Our work to protect consumers and promote competition 

touches the economic life of every American We are the 

only federal agency that deals with consumer protection and 

competition issues in broad sectors of the economy 

Every day we: 

n Pursue strong and effective law enforcement against 

deceptive, unfair and anticompetitive business practices; 

n Create and share practical, plain-language educational 

programs for consumers and businesses;

n Advance consumers’ interests by sharing our expertise 

with federal and state legislatures and U S and 

international government agencies;

n Develop policy and research tools through workshops, 

conferences, and hearings 

OUR ORGANIZATION

The FTC is headed by a Commission composed of five 

Commissioners, nominated by the President and confirmed 

by the Senate, each serving a staggered seven-year term 

No more than three Commissioners may be from the same 

political party The President designates one Commissioner 

to act as Chair who is given the responsibility for the 

administration of the Commission Lina M Khan was sworn 

in as Chair on June 15th, 2021 The four commissioners 

who served in FY22 are Noah Phillips, Rebecca Slaughter, 

Christine Wilson and Alvaro Bedoya Commissioner Phillips 

resigned on October 14, 2022 

The FTC’s mission is carried out by three bureaus: 

The Bureau of Competition (BC) seeks to prevent 

anticompetitive mergers and other anticompetitive business 

practices in the marketplace By enforcing the antitrust laws, 

the Bureau promotes competition and protects consumers’ 

freedom to choose goods and services in an open marketplace 

at a price and quality that fit their needs 

The Bureau of Consumer Protection’s (BCP) mandate is to 

protect consumers against unfair, deceptive or fraudulent 

practices The Bureau enforces a variety of consumer 

protection laws enacted by Congress, as well as trade 

regulation rules issued by the Commission Its actions 

include individual company and industry-wide investigations, 

administrative and federal court litigation, rulemaking 

proceedings, and consumer and business education In 

addition, the Bureau contributes to the Commission’s 

ongoing efforts to inform Congress and other government 

entities of the impact that proposed actions could have on 

consumers 

The Bureau of Economics helps the FTC evaluate the 

economic impact of its actions To do so, the Bureau provides 

economic analysis and support to antitrust and consumer 

protection investigations and rulemakings It also analyzes 

the impact of government regulation on competition and 

consumers and provides Congress, the Executive Branch and 

the public with economic analysis of market processes as they 

relate to antitrust, consumer protection, and regulation 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 13

MANAGEMENT’S DISCUSSION AND ANALYSIS

Lina M Khan

Chair

Sworn in: June 15, 2021

Noah Joshua Phillips

Commissioner

Sworn in: May 2, 2018

Rebecca Kelly Slaughter

Commissioner

Sworn in: May 2, 2018

Christine S Wilson

Commissioner

Sworn in: September 26, 2018

Alvaro Bedoya

Commissioner

Sworn in: May 16, 2022

The work of the bureaus is aided by several additional 

offices: 

The Regional Offices work with the Bureaus of Competition 

and Consumer Protection to conduct investigations and 

litigation, provide advice to state and local officials on the 

competitive implications of proposed actions, recommend 

cases, provide local outreach services to consumers and 

businesspersons, and coordinate activities with local, state, 

and regional authorities 

The Office of Congressional Relations works closely with 

members of Congress and their staffs The office informs 

Commissioners and FTC staff of Capitol Hill issues and 

policies, and helps provide information on legislation 

of interest to the Commission It also coordinates the 

preparation of both Congressional testimony and responses 

to Congressional inquiries concerning FTC policies and 

programs 

The Office of Public Affairs mission is to reach, inform, 

educate, and engage consumers and businesses through 

media and digital technologies and in collaboration with 

our internal partners to advance consumer protection and 

competition The office is the primary point of contact for all 

news media inquiries 

The Office of the Chief Privacy Officer manages the FTC’s 

internal privacy program and is responsible for ensuring 

that the Commission complies with all applicable privacy 

laws and guidance The Office of the Chief Privacy Officer 

identifies the privacy risks, controls, and mitigating solutions 

when making decisions involving the collection, use, 

sharing, retention, disclosure and destruction of personally 

identifiable information It is also responsible for investigating 

and mitigating privacy incidents, supporting the FTC mission 

with an evolving privacy program, and promoting a culture of 

privacy among FTC staff, contractors, and third parties 

The Office of Policy Planning assists the Commission 

to develop and implement long-range competition and 

consumer protection policy initiatives and advises staff on 

cases raising new or complex policy and legal issues One 

of the Office of Policy Planning’s primary roles involves 

advocacy, submitting filings supporting competition 

and consumer protection principles to state legislatures, 

regulatory boards, and officials; state and federal courts; 

other federal agencies; and professional organizations The 

Office also organizes public workshops and issues reports on 

cutting-edge competition and consumer protection topics, 

addressing questions of substantive antitrust law, industryspecific practices, and significant national and international 

policy debates 

The Office of International Affairs leads and coordinates the 

FTC’s work in international antitrust, consumer protection, 

and technical assistance projects The FTC works with 

competition and consumer protection agencies around the 

world to promote cooperation and convergence toward best 

practices 

The Office of the Secretary oversees prompt processing 

of all matters presented to the Commission, supports the 

Commission decision-making process, and ensures it operates 

efficiently The office also responds to most Congressional 

and White House correspondence raising constituent issues 
14 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

The Office of the General Counsel is the Commission’s 

chief legal officer and adviser The office represents the 

Commission in court and provides legal counsel to the 

Commission, the three bureaus, and other offices 

The Office of the Executive Director is responsible for the 

administration and management of the Commission through 

four organizations, which manage the Commission’s human 

capital, information technology, financial management, 

administrative services, and legal document processing and 

records management activities 

The Office of Administrative Law Judges performs 

the initial adjudicative fact-finding in Commission 

administrative complaint proceedings, guided by the FTC 

Act, the Administrative Procedure Act, relevant case law 

interpreting these statutes, and the FTC’s Rules of Practice 

Administrative Law Judges are independent decision makers, 

appointed under the authority of the Office of Personnel 

Management 

The Office of Inspector General is an independent and 

objective organization within the FTC, established in 

compliance with the Inspector General Act Amendments of 

1988 Under the Inspector General Act, the office conducts 

audits and investigations relating to the programs and 

operations of the FTC 

The Office of Equal Employment Opportunity and 

Workplace Inclusion ensures that the FTC maintains a 

work environment that is free from all forms of illegal 

discrimination, including reprisal and harassment 

For more information about the agency’s components, visit 

the FTC’s Bureaus and Offices webpage 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 15

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION ORGANIZATIONAL CHART

Office of the 

Executive Director

David B. Robbins

Regions

Bureau of 

Competition

Holly Vedova

Bureau of 

Consumer 

Protection

Samuel Levine

Chair 

Lina M. Khan

Chief of Staff 

Jen Howard

Chief Technologist 

Stephanie Nguyen

Commissioner 

Christine S. Wilson

Office of the 

General Counsel

Anisha Dasgupta

Bureau of 

Economics

Vacant

Commissioner 

Noah Joshua Phillips

Commissioner 

Alvaro Bedoya

Office of 

Congressional Relations

Jeanne Bumpus

Office of 

Public Affairs

Douglas Farrar

Office of 

Inspector General*

Andrew Katsaros

Office of 

International Affairs

Maria Coppola (Acting)

Office of 

Policy Planning

Elizabeth Wilkins

Office of Equal Employment 

Opportunity and Workplace 

Inclusion*

Dione Stearns (Acting)

Office of 

the Secretary

April Tabor

Commissioner 

Rebecca Kelly 

Slaughter

Office of the 

Chief Privacy Officer

John Krebs

Office of 

Administrative Law Judges*

D. Michael Chappell

* An independent organization within the FTC
16 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

REGIONAL OFFICES

Protecting America’s consumers

Since 1918, regional offices have played an integral role in fulfilling the FTC’s consumer protection and competition 

missions Currently, eight regional offices covering seven geographic regions conduct investigations and litigation; 

provide local outreach to consumers and industry; and build partnerships with local, state, regional, and cross-border law 

enforcement authorities 

The agency is headquartered in Washington, DC, and operates with seven regions across the US, with two offices located in 

the Western Region The graphic below illustrates the locations of the FTC regions 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 17

MANAGEMENT’S DISCUSSION AND ANALYSIS

PERFORMANCE HIGHLIGHTS 

The FTC has chosen to produce an AFR and a separate 

Annual Performance Report (APR) for FY 2022 The APR 

will be included as part of the FTC’s Congressional Budget 

Justification and will also be available on the FTC’s website 

This section explains the FTC’s strategic and performance 

planning framework and summarizes the key performance 

goals The performance results described in this report enable 

the FTC to administer its programs, gauge their success, and 

make adjustments necessary to improve program quality for 

the public 

STRATEGIC AND PERFORMANCE 

PLANNING FRAMEWORK 

The FTC’s Annual Performance Report is structured around 

three strategic goals and their supporting objectives as 

established in the FTC Strategic Plan FY 2022-2026 The 

FTC’s strategic goals, objectives, and performance metrics 

articulate what the agency intends to accomplish to meet its 

mission, demonstrate the highest standards of stewardship, 

and improve the management functions vital to core mission 

success 

The following table shows the FTC’s net costs for its strategic 

goals 

STRATEGIC GOALS OBJECTIVES

GOAL 1: Protect the public from unfair 

or deceptive acts or practices in the 

marketplace.

Net Costs: $179 million*

*$193 million in costs 

- $14 million in revenue

 $179 million

1.1 Identify, investigate, take actions against, and deter unfair or 

deceptive acts or practices that harm the public. 

1.2 Connect with individuals, communities, and businesses 

to provide practical knowledge, guidance, and tools, and to 

learn about key challenges and opportunities for future FTC 

engagement. 

1.3 Collaborate with domestic and international partners to 

enhance consumer protection. 

1.4 Support equity for historically underserved communities 

through the FTC’s consumer protection mission. 

GOAL 2: Protect the public from unfair 

methods of competition in the marketplace 

and promote fair competition.

Net Costs: ($26 million)*

*$166 million in costs 

- $192 million in revenue

 ($26 million)

2.1 Identify, investigate, and take actions against anticompetitive 

mergers and business practices. 

2.2 Engage in research, advocacy, and outreach to promote 

public awareness and understanding of fair competition and its 

benefits. 

2.3 Collaborate with domestic and international partners to 

check unfair methods of competition.

2.4 Support equity for historically underserved communities 

through the FTC’s competition mission. 

GOAL 3: Advance the FTC’s effectiveness 

and performance. 

Goal 3’s net costs are distributed to Goal 1 and Goal 

2 predominately by Goal 1 and Goal 2’s Full-Time 

Equivalent (FTE) usage, except for those non-pay costs 

that are clearly attributable to a specific goal. 

3.1 Optimize resource management, space, and administrative 

programs. 

3.2 Cultivate a high-performing, diverse, inclusive, and engaged 

workforce. 

3.3 Optimize information management.

Note: Net Costs represent the resources used to achieve strategic goals and signify the relative efficiency and cost-effectiveness of agency programs/

operations The FTC does not divide net costs by objective 
18 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

PERFORMANCE MEASUREMENT 

REPORTING PROCESS 

Bureau and Office representatives serve as the Performance 

Measure Reporting Officials (PMROs), who act as 

data stewards for each of the agency’s publicly-reported 

performance metrics The PMROs report performance data 

to the Performance Improvement Officer on a quarterly or 

annual basis via an internal data reporting tool The Financial 

Management Office (FMO) also leads periodic performance 

metric reviews in coordination with budget execution reviews 

Quarterly reports are sent to senior managers throughout the 

agency, allowing for adjustments to agency strategies based on 

the interim results 

VERIFICATION AND VALIDATION OF 

PERFORMANCE DATA 

The following outlines how the agency ensures the 

performance information it reports is complete, reliable, and 

accurate: 

n The FTC has adopted a central internal repository 

for performance data entry, reporting, and review The 

electronic data tool reduces human error, increases 

transparency, and facilitates review of the agency’s 

performance information 

n Each PMRO is responsible for updating the data quality 

appendix (DQA) at least once per year The DQA serves 

as a process document, laying out data sources, and 

collection methods for performance information, as well 

as how metrics are calculated 

n PMROs must provide all supporting documentation for 

their performance results at both the midpoint and end 

of the fiscal year This allows FMO Performance Staff to 

“dig beneath the surface” and see the data underlying the 

metrics 

n After reviewing the underlying data, several measures 

are selected each year to investigate more thoroughly, 

including interviewing the staff responsible for data 

collection, asking about alternative methods, and 

comparing data collection and calculations to those 

reported in the DQA 

PERFORMANCE GOALS OVERVIEW 

In the Strategic Plan FY 2022-2026 , the FTC has 

established 43 performance metrics for assessing program 

performance against agency strategic goals and objectives 

This report documents the performance of seven of those 

metrics, which may be considered key performance metrics 

because they best indicate whether agency activities are 

achieving the desired outcome associated with the related 

objective 

The following tables summarize actual performance during 

FY 2022 against established targets for the FTC’s seven key 

performance metrics The tables also include results from 

the prior four fiscal years as well as a description of how 

performance results are calculated for that performance goal 

The FTC met or exceeded FY 2022 targets on four of five key 

performance metrics, did not meet the target on one metric, 

and did not have targets on two new metrics 

LEGEND FOR UPCOMING TABLES 

✔ Signifies that the target was met or exceeded 

X Signifies that the target was not met 

STOPPING DECEPTIVE ADVERTISING BY TURBOTAX 

The FTC took action against Intuit, the maker of the 

popular TurboTax tax filing software, for deceiving 

consumers with bogus advertisements pitching “free” 

tax filing The Commission alleges that the company’s 

ubiquitous advertisements touting their supposedly 

“free” products, some of which consisted almost entirely 

of the word “free” spoken repeatedly, mislead consumers 

into believing that they can file their taxes for free with 

TurboTax when, in reality, the company’s “free” service is 

not available to millions of taxpayers 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 19

MANAGEMENT’S DISCUSSION AND ANALYSIS

STRATEGIC GOAL 1: PROTECT THE PUBLIC FROM UNFAIR OR DECEPTIVE ACTS 

OR PRACTICES IN THE MARKETPLACE. 

The FTC uses a multi-pronged interdisciplinary approach to protect the public from unfair and deceptive practices in the 

marketplace The FTC conducts investigations, sues companies and people that violate the law, develops rules to protect the 

public, and educates consumers and businesses about their rights and responsibilities The agency also collects reports about a 

host of consumer issues, including fraud, identity theft, financial matters, and Do Not Call violations The FTC makes these 

reports available to law enforcement agencies worldwide 

METRIC 1.1.1: Amount of money returned to the public or forwarded to the U.S. Treasury resulting from 

FTC enforcement actions.

Description: This metric tracks the FTC’s effectiveness in returning money to consumers who were defrauded and 

forwarding money to the U S Treasury (e g , if sending money to individuals is impracticable, or if funds were paid as a civil 

penalty) The FTC targets law enforcement efforts on violations that cause the greatest amount of consumer harm The 

amount of money returned to consumers or forwarded to the U S Treasury is a useful indicator that the FTC is targeting the 

right defendants The number reported is a three-year rolling average (average of the current year and two prior year totals) 1

FY 2018 

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Actual

FY 2022

Actual

FY 2022

Target

FY 2022

Status

$3.25 billion $3.52 billion $2.79 billion $2.39 billion $2.28 billion $65 million ✔

1 Calculation/Formula: Sum of refund checks cashed by consumers, plus the amount of redress distributed to consumers without FTC contractors (if refund check 

cashed information is not available), plus the amount of money paid to the FTC by defendants and forwarded to the U S Treasury, either because sending refunds was 

not feasible or because the money was paid as a civil penalty The amount reported is a three-year rolling average (average of the current year and two prior year totals) 

FTC WINS REFUNDS FOR AMERICANS SCAMMED BY FAKE GOVERNMENT WEBSITES 

The FTC’s trial win against On Point Global made $102 

million in refunds available to consumers who were harmed 

by a wide-ranging scheme that led them to pay money 

or hand over personal information to fake government 

websites The scammers ran hundreds of deceptive websites 

that promised a quick and easy government service, 

such as renewing a driver’s license or receiving eligibility 

determinations for public benefits like Section 8 housing 

or food stamps The money being refunded to consumers 

is a result of a contempt motion filed by the FTC against 

one of the defendants in the case, Burton Katz Katz was 

previously sued by the FTC for placing millions of dollars 

in unwanted charges on consumers’ mobile phone bills by using spam text messages pitching “free” gift cards As a result of 

that suit, Katz was placed under a court order prohibiting him from any further violations of the FTC Act Because of his 

involvement in this new fake government websites scam, the FTC filed the motion alleging that Katz and other defendants 

were in contempt of that order The court ruled in the FTC’s favor on the motion and awarded the monetary relief 
20 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

METRIC 1.1.2: Total consumer savings compared to the amount of FTC resources allocated to consumer 

protection law enforcement.

Description: This metric tracks the efficiency of the FTC’s consumer protection law enforcement spending We compare 

how much money the FTC saves consumers each year through law enforcement to the amount the FTC spends on consumer 

protection law enforcement Consumer savings are comprised of: (a) the amount of money returned to consumers; and (b) 

an estimate of the amount of harm that would have occurred but for the FTC’s law enforcement action To calculate this 

latter figure, the FTC assumes that the unlawful conduct would have continued for one year but for our action The FTC also 

assumes that the amount of harm that would have occurred in that year is the same as what consumers lost in the past The 

amount reported is a three-year rolling average (average of the current year and two prior year totals) 2

FY 2018 

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Actual

FY 2022

Actual

FY 2022

Target

FY 2022

Status

$39.50 in 

consumer 

savings per $1 

spent. 

$39.40 in 

consumer 

savings per $1 

spent. 

$14.80 in 

consumer 

savings per $1 

spent. 

$12.80 in 

consumer 

savings per 

$1 spent. 

$11.60 in 

consumer 

savings per $1 

spent. 

$7.00 in 

consumer 

savings per $1 

spent. 

✔

2 Calculation/Formula: (Amount of money returned to consumers + the sum of the estimated consumer savings generated by law enforcement actions) / Annual 

expenditures on consumer protection law enforcement The amount reported is a three-year rolling average (average of the current year and two prior year totals) The 

amount of money returned to consumers is the sum of refund checks cashed by consumers as the result of FTC consumer protection enforcement actions plus the 

amount of redress distributed to consumers without FTC contractors (if refund check cashed information is not available) 

 The sum of the estimated consumer savings generated by law enforcement actions is the estimate of harm that would have occurred but for the FTC’s law enforcement 

action The FTC assumes that the unlawful conduct would have continued for one year but for our action and the amount of harm that would have occurred in that 

year is the same as what consumers lost in the past This amount is estimated by BCP case managers by estimating the consumer loss due to fraudulent, deceptive, or 

unfair practices in the 12 months prior to the FTC’s first contact with the defendants or by dividing the estimated total economic injury by the amount of time the 

defendants’ business operated to derive an annualized estimate of consumer savings The measure also includes instances wherein, as a result of FTC law enforcement 

action directed specifically at a business, that business stops its allegedly unfair or deceptive practices The amount reported is a three-year rolling average (average of the 

current year and two prior year totals) 

 The annual expenditures on consumer protection law enforcement are the FTC budget dollars spent on consumer protection law enforcement Dollars spent on the 

Consumer and Business Education and Economics and Consumer Policy work are excluded from this calculation The amount reported is a three-year rolling average 

(average of the current year and two prior year totals) 

FTC PROTECTS SENSITIVE GEOLOCATION DATA 

Protecting sensitive consumer data, including geolocation 

and health data, is a top priority for the FTC The FTC filed 

a lawsuit against data broker Kochava for selling geolocation 

data from hundreds of millions of mobile devices that can 

be used to trace the movements of individuals to and from 

sensitive locations, such as visits to reproductive health 

clinics, places of worship, homeless and domestic violence 

shelters, and addiction recovery facilities The FTC alleges 

that by selling this kind of data, Kochava is enabling others 

to identify individuals and possibly expose them to threats 

of stigma, stalking, discrimination, job loss, and even 

physical violence The FTC’s lawsuit seeks to halt Kochava’s sale of sensitive geolocation data and require the company to 

delete the sensitive geolocation information it has collected 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 21

MANAGEMENT’S DISCUSSION AND ANALYSIS

METRIC 1.2.1: Rate of consumer satisfaction with FTC consumer education websites. (a) Mobile; (b) 

Desktop.

Description: Consumer and business education serves as an important and vital resource in fighting against deception and 

unfair practices Well-informed consumers are better able to recognize and report fraud, and well-informed business owners 

know where the FTC draws the line This metric gauges the effectiveness, helpfulness, and usability of the FTC’s consumer 

education website and includes the customer satisfaction scores for consumer ftc gov 

3

FY 2018 

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Actual

FY 2022

Actual

FY 2022

Target

FY 2022

Status

(b) 76.5 (b) 77.7 (b) 76.2 (b) 72.9 (a) 73.5 

(b) 73.4

Average 

satisfaction 

rate from 

ACSI’s 

E-Government 

Satisfaction 

Index = 

(a) 72.6 

(b) 72.8 

✔

3 Calculation/Formula: When visiting consumer ftc gov consumers are given the option to complete a short survey to provide feedback on the following aspects of the site: 

information browsing, look and feel, navigation, site information, and site performance The formula for the overall satisfaction score is proprietary to ForeSee 

FTC AND 18 STATES SUE TO STOP HARRIS JEWELRY FROM CHEATING 

MILITARY FAMILIES 

The FTC and a group of 18 states sued national jewelry 

retailer Harris Jewelry, alleging that it deceptively 

claimed that financing jewelry purchases through 

Harris would raise servicemembers’ credit scores, 

misrepresented that its protection plans for things like 

ring and watch sizing and battery replacement were 

required, and added protection plans to purchases 

without consumers’ consent In addition, the FTC 

charged that the defendants failed to include certain 

written disclosures in their retail installment contracts 

as required by the Truth in Lending Act and Military 

Lending Act, failed to meet the Electronic Fund Transfer Act’s authorization requirements, and failed to include required 

Truth in Lending Act disclosures in online and print ads Under a proposed order with the FTC and multistate group, 

the company must stop collection of millions of dollars in debt, provide approximately $10 9 million in refunds for 

purchased protection plans, provide refunds for overpayments, and assist with the deletion of any negative credit entries 

pertaining to debt in consumers’ credit reporting file In addition, Harris Jewelry must directly contact consumers entitled 

to protection plan refunds and must post a notice on its website about how customers can get their refunds 
22 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

FIRST ACTION UNDER THE OPIOID ADDICTION RECOVERY FRAUD 

PREVENTION ACT 

The FTC took action against R360 and its owner, Steven Doumar, for 

deceiving people seeking help for addiction about the evaluation and 

selection criteria for the treatment centers in their network The case is 

the FTC’s first under the Opioid Addiction Recovery Fraud Prevention 

Act of 2018 The agency secured a $3 8 million civil penalty judgment 

against the defendants and an order prohibiting them from continuing to 

make the same kinds of misrepresentations The FTC alleged that R360 

misrepresented to consumers seeking help through its “R360 Network” 

that it would connect them with treatment centers that met their 

individualized needs and were selected through a rigorous evaluation 

process conducted by an expert in substance use disorders and addiction 

treatment In reality, Doumar was responsible for assessing the quality of 

the treatment centers and deciding which would join the network, and he 

had no educational or professional experience that qualified him to make 

these decisions 

REPORT OUTLINES IMPACT OF FRAUD ON COMMUNITIES OF COLOR

Recognizing that deceptive or unfair practices may target and affect 

people from different communities in unique ways, in October 2021 

the Commission issued the Serving Communities of Color staff report

providing updates on its efforts to serve communities of color through 

aggressive law enforcement, outreach, and education 

New research in the report shows a number of key differences in the 

way that fraud and other consumer problems affect communities of 

color, from the types of problems reported to the methods used to pay 

scammers One of the studies in the report examined differences in 

reports received by the FTC from consumers who live in majority Black 

and Latino communities compared to those who live in majority White 

communities It found that when people reported losing money, those 

living in majority Black and Latino communities more often reported 

paying in ways that have few, if any, fraud protections — for example, 

cash, cryptocurrency, money orders, and debit cards Those living in 

majority White communities, by contrast, filed the largest share of their 

reports about paying with credit cards, which offer more robust fraud protection 

The research also found that there were notable differences in the types of problems people living in majority Black and 

Latino communities reported to the FTC, with larger shares of reports about issues with car buying, banks and lenders, 

credit issues, and debt collection than were found in majority White communities 

In addition to the new research, the report also provides a summary of more than 25 cases brought by the FTC in the last 

five years where the unlawful conduct either targeted or disproportionately affected communities of color 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 23

MANAGEMENT’S DISCUSSION AND ANALYSIS

STRATEGIG GOAL 2: PROTECT THE PUBLIC FROM UNFAIR METHODS OF 

COMPETITION IN THE MARKETPLACE AND PROMOTE FAIR COMPETITION. 

The FTC’s efforts to prevent and police unfair methods of competition focus on preventing anticompetitive mergers and 

business practices through enforcement The FTC also engages in policy research and development, advocacy, and education 

to deter anticompetitive practices and encourage federal, state, and local governments to evaluate the effects of their policies on 

fair competition The FTC advances these goals internationally by fostering enforcement and policy convergence and through 

case cooperation with counterpart foreign enforcement authorities This work is critical to protect and strengthen free and open 

markets – the cornerstone of a vibrant economy 

METRIC 2.1.1: Total consumer savings and other measurable benefits generated by antitrust enforcement. 

Description: This metric reports the estimated amount of money that the Commission saved consumers by taking action 

against potentially anticompetitive mergers and business conduct The number reported is a five-year “rolling average” (average 

of the current year and four prior year totals) 4

FY 2018 

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Actual

FY 2022

Actual

FY 2022

Target

FY 2022

Status

$3.76 billion $4.87 billion $2.68 billion $2.77 billion $3.11 billion $2.4 billion ✔

4 Calculation/Formula: When available, staff uses case-specific data to generate the estimate of consumer savings Otherwise, staff uses a formula of three percent of the 

volume of commerce in the relevant geographic/product market(s) for two years In order to create a balanced performance profile, performance is reported as a “rolling 

average” over five years, compensating for highly variable results in any individual year due to the influence of a few significant cases or the level of merger and nonmerger 

activity in that year 

PREVENTING A METAVERSE MERGER 

In July 2022, the Commission authorized staff to seek 

injunctive relief to prevent the combination of two leading 

virtual reality (VR) firms, Meta and Within Unlimited 

According to the complaint, Meta, which owns a topselling VR device, a leading app store, seven of the leading 

VR developers, and one of the best-selling apps of all 

time, plans to illegally acquire Within’s popular VR fitness 

app, Supernatural, in furtherance of its quest to conquer 

the VR landscape The VR industry offers a unique 

immersive experience and gives users the perception 

of being completely surrounded as they move in a fully 

rendered, three-dimensional environment The burgeoning VR industry is characterized by a high degree of growth 

and innovation The FTC alleges that Meta is a potential entrant in the virtual reality dedicated fitness app market with 

the required resources and a reasonable probability of building its own virtual reality app to compete in the space But 

instead of entering, it chose to try buying Supernatural Meta’s independent entry would increase consumer choice, 

increase innovation, spur additional competition to attract the best employees, and yield other competitive benefits Meta’s 

acquisition of Within, on the other hand, would eliminate the prospect of such entry, dampening future innovation and 

competitive rivalry This matter is currently pending in federal district court 
24 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

METRIC 2.1.2: Total consumer savings and other measurable benefits generated by antitrust enforcement 

compared to resources spent. 

Description: This metric reports the estimated amount of money that the Commission saved consumers by taking action 

against potentially anticompetitive mergers and business conduct compared to the amount spent on the merger program The 

amount reported is a five-year “rolling average” (average of the current year and four prior year totals) 5

FY 2018 

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Actual

FY 2022

Actual

FY 2022

Target

FY 2022

Status

$52.30 in 

consumer 

savings per $1 

spent 

$66.00 in 

consumer 

savings per $1 

spent 

$34.40 in 

consumer 

savings per $1 

spent 

$34.70 in 

consumer 

savings per 

$1 spent

$37.20 in 

consumer 

savings per $1 

spent 

$35.00 in 

consumer 

savings per $1 

spent 

✔

5 Calculation/Formula: Estimated consumer savings generated under metric 2 1 2 are divided by the amount of resources spent on the merger program for the current 

fiscal year When available, staff uses case-specific data to generate the estimate of consumer savings Otherwise, staff uses a formula of three percent of the volume of 

commerce of the relevant product market(s) for two years In order to create a balanced performance profile, performance is reported as a “rolling average” over five years, 

compensating for highly variable results in any individual year due to the influence of a few significant cases or the level of merger and nonmerger activity in that year 

FTC PREVENTS FURTHER CONSOLIDATION IN MARKETS CRITICAL TO NATIONAL 

SECURITY AND DEFENSE 

In January 2022, in its first litigated defense merger 

challenge in decades, the FTC authorized staff to seek 

injunctive relief blocking Lockheed Martin’s $4 4 billion 

proposed vertical acquisition of Aerojet Rocketdyne 

Aerojet supplies advanced power, propulsion, and 

armament systems, which are critical components 

for the missiles made by Lockheed and other defense 

prime contractors The agency’s complaint alleged that 

Lockheed’s proposed acquisition of Aerojet would have 

given Lockheed control over critical propulsion inputs 

that its rivals require to compete against Lockheed 

Specifically, the complaint alleged that the proposed 

acquisition would give Lockheed the ability and incentive to deny, limit, or otherwise disadvantage competitors’ access to 

critical propulsion inputs for various weapons systems The U S Department of Defense (DoD) reviewed the acquisition 

and considered the potential impacts of the transaction on national security, the nation’s industrial and technological 

base, competition, and innovation As part of this assessment, DoD facilitated a series of FTC-led interviews with DoDimpacted stakeholders DoD’s assessment was provided to the FTC for its deliberations and final decision-making The 

complaint further alleged that as a subcontractor, Aerojet has had access to prime contractors’ sensitive information about 

technological advancements, cost, schedule, and business strategies and that, post-acquisition, Lockheed would have an 

incentive to exploit this knowledge to gain an advantage in competitions against these parties The U S government in 

turn would be harmed because the cost of missile systems, missile defense kill vehicles, and hypersonic cruise missiles 

would likely increase, innovation would be lessened, and quality would be reduced, hindering national security and 

defense interests Shortly after the complaint was issued, the parties abandoned their proposed transaction 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 25

MANAGEMENT’S DISCUSSION AND ANALYSIS

FTC BLOCKS MERGER OF RHODE ISLAND’S TWO LARGEST 

HEALTHCARE PROVIDERS 

In February 2022, the FTC authorized staff to seek injunctive 

relief blocking the proposed merger of Rhode Island’s two 

largest healthcare providers, alleging the deal would lead to 

higher prices and lower quality care The FTC, jointly with the 

Rhode Island Office of the Attorney General, filed a complaint 

in federal district court seeking a temporary restraining order 

and preliminary injunction to block Lifespan’s proposed 

acquisition of Care New England Health System According 

to the complaint, both Lifespan and Care New England offer 

a broad range of essential medical and surgical diagnostic 

and treatment services that require an overnight hospital 

stay, known as inpatient general acute care services They also operate the only two standalone inpatient behavioral health 

facilities in Rhode Island The complaint alleged that the proposed merger would likely reduce competition in the state of 

Rhode Island and 19 nearby Massachusetts communities for inpatient general acute care hospital services and inpatient 

behavioral health services by increasing the combined firm’s ability to raise hospital rates, leading to higher individual 

premiums, co-pays, and deductibles The complaint further alleged that the combined healthcare system would have 

reduced incentives to invest in vital non-price dimensions of competition, such as quality of care, access to services, and 

technology The parties abandoned the proposed acquisition shortly after the Commission filed its complaint 

FTC SUES TO BLOCK MERGER BETWEEN UTAH HEALTHCARE RIVALS 

The Commission authorized an administrative complaint and a lawsuit in federal court to block the proposed merger 

between Utah healthcare competitors HCA Healthcare and Steward Health Care System The complaint alleged that the 

deal would eliminate the second and fourth largest healthcare systems in the Wasatch Front region, where approximately 

80 percent of Utah’s residents live The companies provide inpatient general acute care services and compete for inclusion 

in insurer networks, as well as for health care quality, service lines, and nurse and physician recruitment The complaint 

further alleged that the transaction would significantly increase market concentration levels in an already highly 

concentrated geographic market, enabling HCA to command even higher reimbursement rates from commercial insurers 

that likely would pass on at least a portion of those higher healthcare costs to employers and health plan members in 

the form of increased premiums, deductibles, co-pays, and other out-of-pocket expenses After the Commission filed its 

complaint, the parties abandoned their proposed acquisition 

FTC SUES TO BLOCK MERGER BETWEEN NEW JERSEY HEALTHCARE RIVALS 

The FTC authorized an administrative complaint and sought injunctive relief in federal court to block the acquisition 

by RWJBarnabas (RWJ) of Saint Peter’s Healthcare System, one of the largest hospital systems in New Jersey The 

complaint alleged that in Middlesex County, NJ, the acquisition would have harmed competition for inpatient general 

acute care services by giving the combined healthcare system a market share of approximately 50 percent, easily resulting 

in a presumption of harm under the antitrust laws RWJ and St Peter’s are direct competitors and both systems routinely 

identify the other as the most significant competitor when assessing competition and strategizing on providing general 

acute care services in Middlesex County Absent this head-to-head competition, the combined system would have 

reduced incentives to improve quality, technology, amenities, equipment, access to care, and service offerings The parties 

abandoned their proposed transaction shortly after the Commission issued its complaint 
26 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

METRIC 2.2.2: Number of cases for which BE economists prepared to testify as expert witnesses in FTC 

antitrust enforcement actions. 

Description: The performance metric is the number of cases for which BE economists (including economists, financial 

analysts, research analysts, statisticians, and other BE staff ) prepared to testify as expert witnesses in FTC antitrust 

enforcement actions This number is a measure of BE expertise developed through economic research related to competition 

analysis and represents not only the expertise of the testifying expert, but also the expertise of the BE economists and other 

staff that are supporting that expert 6

FY 2018 

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Actual

FY 2022

Actual

FY 2022

Target

FY 2022

Status

N/A N/A N/A N/A 5 Baseline N/A

6 Calculation/Formula: The metric will be calculated as the number of cases during the fiscal year for which a BE economist prepared to be a testifying expert for an 

antitrust enforcement action The term “BE economist” refers to all BE staff members, including economists, financial analysts, research analysts, and statisticians 

FTC CLARIFIES ENFORCEMENT PRIORITIES THROUGH POLICY STATEMENTS 

In an effort to increase clarity for businesses, the FTC 

has issued a series of policy statements and other 

guidance this fiscal year to provide clear notice of FTC 

enforcement practices and priorities Some of the policy 

statements include: 

Tricking Consumers into Subscriptions: In October 

2021, the FTC issued a policy statement warning 

companies against using deceptive practices to trick or 

trap consumers into subscription services Companies 

must provide clear information during the sign-up process, obtain consumers’ informed consent, and make cancellation 

easy, or face legal action from the FTC 

Surveillance in Children’s Apps: In May 2022, the FTC issued a policy statement warning education technology not to 

surveil children when they go online to learn The Commission made it clear that under the Children’s Online Privacy 

Protection Act it is against the law for companies to force parents and schools to surrender their children’s privacy rights 

in order to do schoolwork online or attend class remotely 

Stopping Tactics that Block Cheap Drugs: In June 2022, the FTC issued a policy statement putting drug companies 

and prescription drug middlemen on notice that paying rebates and fees to exclude competitors offering lower-cost drug 

alternatives can violate competition and consumer protection laws 

Protecting Gig Workers: In September 2022, the FTC issued a policy statement making clear that the FTC’s 

enforcement authority is not affected by how companies choose to classify the consumers who perform gig work The 

FTC plans to hold companies accountable for claims about costs and benefits, combat unlawful practices and constraints 

imposed on workers, and investigate evidence of gig companies illegally fixing wages, benefits, or fees 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 27

MANAGEMENT’S DISCUSSION AND ANALYSIS

STRATEGIC GOAL 3: ADVANCE THE FTC’S EFFECTIVENESS AND PERFORMANCE. 

The FTC believes that advancing organizational effectiveness and performance at all levels creates a strong foundation for 

overall mission success The agency’s work in Strategic Goal 3 highlights ongoing efforts to improve the management of agency 

staffing, finances, information, and physical assets, in order to create a more efficient and more agile agency 

METRIC 3.2.1: Annual score on the FEVS Employee Engagement Index

Description: The Employee Engagement Index of the Federal Employee Viewpoint Survey (FEVS) determines this metric 

The Index gauges the extent to which employees believe that management listens and provides meaningful support and 

feedback in various areas that assist staff in supporting the overall mission of the agency The index is based on FEVS 

questions that assess three sub-factors: perceptions of agency leadership, relationships between workers and supervisors, and 

feelings of motivation and competency 7

FY 2018 

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Actual

FY 2022

Actual

FY 2022

Target

FY 2022

Status

83% 84% 87% 74% 74% 77% X

7 Calculation/Formula: The FEVS Employee Engagement Index measures conditions important to supporting employee engagement through responses to 20 questions 

across the three sub factors The Office of Personnel Management, which manages the FEVS, calculates an agency Index score based on responses to these 20 questions 

Note on Missed Target: While the FTC did not achieve the gain it had hoped for in the Employee Engagement Index, the 

agency still finished ahead of the government-wide average score of 71% 

MAINTAINING COMPETITION IN SEMICONDUCTOR CHIPS 

In December 2021, the FTC initiated administrative 

adjudication to block U S chip supplier Nvidia’s 

$40 billion acquisition of U K chip design provider 

Arm Semiconductor chips power computers and 

technologies that are essential to our modern economy 

and society The proposed vertical integration of Nvidia 

and Arm would have given one of the largest chip 

companies control over licensed computing technology 

and designs that rival firms rely on to develop their own 

competing chips The FTC’s complaint alleged that the 

combined firm could stifle innovative next-generation 

technologies, including chips that power a wide range 

of modern computing devices from smartphones to tablets to driver-assistance systems to computers in large datacenters 

Because Arm’s technology is a critical input that enables competition between Nvidia and other chipmakers in several 

markets, the complaint alleged that the proposed merger would give Nvidia the ability and incentive to use its control of 

this technology to undermine its competitors, reducing competition and ultimately resulting in reduced product quality, 

reduced innovation, higher prices, and less choice, harming the millions of Americans who benefit from Arm-based 

products The parties abandoned this transaction shortly after the Commission issued its complaint 
28 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

MANAGEMENT ASSURANCES 

IMPLEMENTATION OF THE FEDERAL 

MANAGERS’ FINANCIAL INTEGRITY ACT 

(FMFIA) 

The FTC’s Enterprise Risk Management (ERM) and 

internal controls are integral to managing daily operations 

and carrying out activities that achieve strategic goals and 

objectives Internal controls are part of all agency systems and 

processes Senior management holds managers accountable 

for documenting, assessing, and improving these controls 

in order to provide efficient and effective risk management, 

program operations, high-quality data, and accurate reporting 

as well as program compliance with applicable laws and 

regulations 

The FTC’s Senior Management Council (SMC) provides 

oversight to the Senior Assessment Team (SAT) activities 

and is instrumental in the strategic direction and mitigation 

strategies for the Agency’s most significant risks The SAT 

plans and executes the Agency’s enterprise risk and internal 

control program activities to include fraud reduction 

initiatives This includes assessing and improving compliance 

with applicable guidance (e g , Office of Management and 

Budget Circular A-123, Management Responsibilities 

for Enterprise Risk Management and Internal Controls), 

monitoring and remediation of identified risk, and 

communicating the results of reviews to senior management 

and the head of the agency 

SAT activities in FY 2022 included planning the annual 

internal controls assessments; identifying key processes and 

related control activities; documenting the scope, design, 

and methodology of risk and internal control assessments; 

testing of internal controls; and monitoring corrective action 

plans and the remediation progress In addition, the SMC 

updated the agency risk profile, including fraud and other 

risks related to successful mission performance Specifically, 

the FTC’s profile identified risk associated with last year’s 

Supreme Court decision in AMG Capital Management, 

LLC v FTC, 593 U S __, 141 S Ct 1341 (2021), removing 

the FTC’s authority to award monetary relief for consumers 

when the FTC obtains a permanent injunction in federal 

court pursuant to FTC Act Section 13(b), 15 U S C § 

53(b) In addition, the profile listed risks of escalating expert 

witness costs in cases involving market competition, impacts 

of budget constraints as they influence litigation options for 

the consumer protection mission, and the schedule risk and 

cost risk associated with the FTC’s technology initiatives 

to include improving and positioning the agency to detect 

advanced persistent threats to its systems Risks related to 

managing record and sensitive information along with the 

volume of merger transactions have also been noted FTC 

leadership uses the risk profile to monitor agency operations, 

to make budget and resource decisions, and to assess 

mitigation strategies and activities 

This year, the FTC continued with the implementation of 

an ERM program plan and strategy Activities for FY 2022 

included executing an annual segment of the multi-year 

internal control assessment plan, monitoring existing risk 

registers, identifying and analyzing risk, assessing entity 

level controls, and monitoring corrective actions, as well as 

performing Digital Accountability and Transparency Act of 

2014 (DATA Act) control assessments and OMB-directed 

Internal Control Over Reporting (ICOR) assessments 

In determining if there were any management control 

deficiencies or nonconformances that must be disclosed 

in the annual assurance statement, the SAT and the FTC 

Chair evaluated several sources of information These 

included results of ERM activities, other information from 

independent audits or reviews performed by the Office of 

Inspector General (OIG), the Government Accountability 

Office (GAO) (e g , Federal Information Security 

Management Act review), independent audits of service 

providers’ operations and financial systems (e g , reviews 

conducted in accordance with Statement on Standards for 

Attestation Engagements (SSAE No 18)), and other relevant 

evaluations and control assessments 

The Chair’s assurance statement below is supported by the 

processes and reviews described above, which were performed 

in FY 2022 Management assurance tables appear in the 

Other Information section 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 29

MANAGEMENT’S DISCUSSION AND ANALYSIS

UNITED STATES OF AMERICA

Federal Trade Commission WASHINGTON, D C 20580

FTC logo

Office of the Chair

CHAIR’S FMFIA STATEMENT OF ASSURANCE

The Federal Trade Commission’s (FTC) management is responsible for establishing and maintaining effective risk management, 

internal control and financial management systems that meet the objectives of the Federal Managers’ Financial Integrity Act of 1982 

(FMFIA) 

In accordance with the requirements of the Office of Management and Budget (OMB) Circular A-123, Management’s Responsibility 

for Enterprise Risk Management and Internal Control, the FTC conducted its annual assessment of the effectiveness of the 

organization’s internal controls to support effective and efficient programmatic operations, reliable financial reporting, and compliance 

with applicable laws and regulations; and whether the financial management system conforms to applicable financial systems 

requirements 

Based on the results of this assessment, the FTC provides an unmodified assurance that its internal controls over the effectiveness 

and efficiency of operations, reliable financial reporting and compliance with applicable laws and regulations as of September 30, 

2022, were operating effectively and that no material weaknesses were found in the design or operation of our internal controls Some 

reporting officials identified areas for improvement in their individual assessments, which are being addressed internally and are not of 

a material nature 

Further, based on our assessment, we provide an unmodified statement of assurance (no material weaknesses or lack of compliance 

reported) that the FTC financial management systems substantially conform with the Federal Financial Management Improvement 

Act of 1996 (FFMIA), applicable financial systems requirements, applicable Federal accounting standards and the U S Standard 

General Ledger at the transaction level 

Lina Khan signature

Signed

Lina M Khan Chair

October 31, 2022

UNITED STATES OF AMERICA 

Federal Trade Commission 

WASHINGTON, D.C. 20580 

 Office of the Chair 

CHAIR’S FMFIA STATEMENT OF ASSURANCE

The Federal Trade Commission’s (FTC) management is responsible for establishing and maintaining

effective risk management, internal control and financial management systems that meet the objectives

of the Federal Managers’ Financial Integrity Act of 1982 (FMFIA). 

In accordance with the requirements of the Office of Management and Budget (OMB) Circular A-123, 

Management’s Responsibility for Enterprise Risk Management and Internal Control, the FTC conducted 

its annual assessment of the effectiveness of the organization’s internal controls to support effective and

efficient programmatic operations, reliable financial reporting, and compliance with applicable laws and

regulations; and whether the financial management system conforms to applicable financial systems

requirements.

Based on the results of this assessment, the FTC provides an unmodified assurance that its internal 

controls over the effectiveness and efficiency of operations, reliable financial reporting and compliance

with applicable laws and regulations as of September 30, 2022, were operating effectively and that no 

material weaknesses were found in the design or operation of our internal controls. Some reporting 

officials identified areas for improvement in their individual assessments, which are being addressed

internally and are not of a material nature.

Further, based on our assessment, we provide an unmodified statement of assurance (no material 

weaknesses or lack of compliance reported) that the FTC financial management systems substantially 

conform with the Federal Financial Management Improvement Act of 1996 (FFMIA), applicable 

financial systems requirements, applicable Federal accounting standards and the U.S. Standard General 

Ledger at the transaction level. 

Signed ________________________ 

Lina M. Khan 

Chair

October 31, 2022

6
30 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

SUMMARY OF MATERIAL WEAKNESS AND 

NONCONFORMANCES 

As noted in the Chair’s FMFIA Statement of Assurance, 

the FTC has no material weaknesses or nonconformances to 

report for FY 2022 No material weaknesses or significant 

nonconformances have been identified, nor any existing 

unresolved weaknesses requiring corrective action 

FEDERAL INFORMATION SECURITY 

MANAGEMENT ACT (FISMA) 

As mandated by FISMA, the agency continues to maintain 

an effective information security program to manage 

information technology in accordance with OMB Circular 

A-130 requirements and National Institute of Standards 

and Technology (NIST) guidance During FY 2022, FTC 

decommissioned one system and performed four assessments 

and authorization efforts The FTC currently has five systems 

authorized to operate (ATO) The FTC leverages twentyone Federal Risk and Authorization Management Program 

(FedRAMP) cloud service providers 

DIGITAL ACCOUNTABILITY AND 

TRANSPARENCY ACT OF 2014 (DATA ACT) 

The DATA Act expands the Federal Funding Accountability 

and Transparency Act of 2006 to increase accountability and 

transparency in federal spending, making federal expenditure 

information more accessible to the public; improve the quality 

of the information on USASpending gov, as verified through 

regular audits of the posted data; and to streamline and 

simplify reporting requirements through clear data standards 

The FTC successfully transmitted the data files, and certified 

the quarterly submissions as required by the governmentwide requirements set by OMB and the U S Department of 

the Treasury 

DEBT COLLECTION IMPROVEMENT ACT 

The Debt Collection Improvement Act of 1996 prescribes 

standards for the administrative collection, compromise, 

suspension, and termination of Federal agency collection 

actions and referrals to the proper agency for litigation The 

FTC monitors, administers, and collects on debts less than 

120 days delinquent The FTC also monitors, administers, 

and collects on debts more than 120 days delinquent Eligible, 

nonexempt debts more than 120 days old are transferred to 

the U S Department of the Treasury for cross-servicing In 

addition, recurring payments were processed by electronic 

funds transfer in accordance with the provisions of the Debt 

Collection Improvement Act 

PROMPT PAYMENT ACT 

The Prompt Payment Act requires Federal agencies to make 

timely payments to vendors, including any interest penalties 

for late invoice payments In FY 2022, the FTC processed 

2,275 invoices totaling $77 8 million that were subject to 

prompt payment Of these invoices, 99 8 percent were paid 

on time During FY 2022, the FTC paid a total of $6 37 in 

interest penalties, or 0 000008 percent of the total dollar 

amount invoiced 

AGENCY FINANCIAL MANAGEMENT 

SYSTEMS STRATEGY 

The FTC’s overall strategy for its financial management 

systems is to ensure that the systems provide accurate, 

reliable, and timely information for management decisionmaking, maintain effective internal controls, and comply 

with applicable laws and regulations It is also critical that 

the financial management systems support both operational 

efficiency and effectiveness in meeting the agency’s strategic 

goals 

Through FY 2019, the Department of the Interior’s Interior 

Business Center (IBC) provided financial management 

system services for the FTC Beginning in FY 2020, the 

FTC moved its needs for financial management systems 

and support services to the Department of the Treasury’s 

Administrative Resource Center (ARC) to improve 

operational efficiencies and effectiveness The IBC continues 

to provide personnel and payroll support services for the 

FTC, which it has been providing for the agency since 1998 

The FTC uses the Oracle Federal Financials (OFF) system as 

its core financial management system and the Oracle Business 

Intelligence (OBI) reporting capabilities to produce timely 

reports that support agency requirements The FTC also uses 

several systems that integrate with OFF to support agency 

operations, including the Invoice Processing Platform (IPP) 

for efficient and secure processing of invoices, the Concur 

Government Edition (CGE) to manage travel transactions, 

and the Procurement Information System for Management 

(PRISM) for contract actions 

Since migrating to the new shared services provider, the 

agency continued its efforts to maintain and enhance financial 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 31

MANAGEMENT’S DISCUSSION AND ANALYSIS

management systems to promote operational effectiveness, 

efficiency, reliability, and timeliness of data to support the 

agency’s strategic goals The FTC redesigned and improved 

several financial management business processes and 

procedures and developed new tools and reports to assess its 

financial management operations that ultimately contribute 

to its mission success 

The FTC recognizes the importance of financial management 

systems and oversight as part of serving as a good steward of 

taxpayer dollars entrusted to it Accordingly, in FY 2022, the 

FTC continued to work to refine its financial management 

processes and procedures to optimize the performance of 

operations and reporting 

FEDERAL CIVIL PENALTIES INFLATION 

ADJUSTMENT ACT OF 1990 

As established by statutory civil penalty provisions, the 

FTC has jurisdiction to charge civil penalties for violations 

specified in the FTC Act and several other laws the 

Commission is responsible for administering and enforcing 

The FTC adjusts these civil penalty amounts for cost 

of living, as required by Federal Civil Penalties Inflation 

Adjustment Act of 2015 

Details about the FTC’s types of civil penalties, the authority 

for the penalty, adjustment dates, and current penalty amount 

can be found in the Other Information section of this report 

FRAUD REDUCTION DATA ANALYTICS 

ACT 

The Fraud Reduction and Data Analytics Act of 2015 was 

passed to improve federal agency financial and administrative 

controls and procedures to assess and mitigate fraud risks, 

and to improve Federal agencies’ development and use of 

data analytics for the purpose of identifying, preventing, and 

responding to fraud, including improper payments 

During FY 2021, the FTC expanded its fraud risk program, 

strengthened the agency’s processes, and improved internal 

controls to prevent, detect, and mitigate fraud risks The 

FTC continued to expand its fraud program in FY 2022 and 

consistently monitors how it assesses fraud risk 

ANTIDEFICIENCY ACT 

The Antideficiency Act prohibits federal agencies from 

spending or obligating funds in excess of amounts and 

purposes approved by Congress, and from accepting 

voluntary services The FTC‘s funds controls and continuing 

reviews of funds usage and availability ensure it complies with 

requirements of the Antideficiency Act 
32 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

FORWARD LOOKING INFORMATION 

The Federal Trade Commission’s (FTC) mission is to protect 

consumers and competition by preventing anticompetitive, 

deceptive, and unfair business processes through law 

enforcement, advocacy, and education without unduly 

burdening legitimate business activity 

The FTC recognizes the five Management Challenges 

identified by the Inspector General (IG) and agrees that 

these are critically important areas to focus on and to improve 

in FY 2023 These include: securing information systems 

and networks from destruction, data loss, or compromise; 

seeking monetary relief for consumers; successfully managing 

the volume of merger transactions; controlling expert 

witness costs; and managing records and sensitive agency 

information 

In FY 2022 the FTC took numerous steps to address the 

challenges and will continue going forward into FY 2023 

Regarding the securing of our information systems, the FTC 

will continue to manage essential supporting IT activities 

by taking a risk-based, cost-effective approach To continue 

controlling expert witness costs the FTC will continue to 

leverage in-house resources when possible, and in our 

FY 2023 Congressional Budget Justification, the Commission 

has requested an increase of $15 million to meet projected 

increases in expert witness costs 

FY 2022 was the third year the FTC received financial 

management services from the Department of the Treasury’s 

Administrative Resource Center (ARC) Since migrating to 

the new shared services provider, the agency is continuing 

its efforts to maintain and enhance financial management 

systems to promote operational effectiveness, efficiency, 

reliability, and timeliness of data to support the agency’s 

strategic goals In FY 2022, the FTC leveraged reporting 

tools to automate several financial management business 

processes In FY 2023, we will continue efforts to document 

end-to-end business processes and identify opportunities 

to improve 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 33

MANAGEMENT’S DISCUSSION AND ANALYSIS

FINANCIAL HIGHLIGHTS 

INTRODUCTION 

The FTC’s accounting practices continue to be accurate 

and transparent, directly supporting the agency’s mission 

to protect the public from deceptive or unfair business 

practices and from unfair methods of competition through 

law enforcement, advocacy, research and education For the 

26th straight year, the FTC received a “clean” or unmodified 

opinion on its audited financial statements Independent 

auditors issue an unmodified opinion when an entity’s 

financial statements are presented fairly, in all material 

aspects, in accordance with U S Generally Accepted 

Accounting Principles (GAAP) 

The following discussion provides an overview of the agency’s 

financial position and results of operations The complete 

audited financial statements with accompanying notes, 

including the independent auditor’s report, are presented in 

the Financial Section of this report 

BALANCE SHEET 

The FTC’s Balance Sheet includes both entity and non-entity 

assets and liabilities Entity assets, by law, are authorized 

by the Congress for the FTC to use in its operations, i e , 

Property, Plant, and Equipment (PP&E) Entity liabilities 

consist of probable and measurable future outflows of FTC 

entity resources 

Non-entity assets (which are not available for the FTC’s use) 

are those assets held on behalf of others, i e , collections and 

accounts receivable that arise from civil monetary penalties 

and court-ordered judgments for monetary relief in the 

agency’s consumer redress program Non-entity assets are 

equal to, and offset by, non-entity liabilities 

CONDENSED BALANCE SHEET AS OF SEPTEMBER 30, 2022 AND 2021

(Dollars in Millions) FY 2022 FY 2021 % Change

Entity Assets

Fund balance with Treasury $ 312 $ 233 34%

General property, plant, and equipment 20 22 -9%

Total Entity Assets 332 255 30%

Non-Entity Assets

Fund balance with Treasury 205 385 -47%

Accounts receivable 45 51 -12%

Total Non-Entity Assets 250 436 -43%

Total Assets $ 582 $ 691 -16%

Entity Liabilities

Employee related liabilities 23 31 -26%

Accounts payable and other 13 11 18%

Total Entity Liabilities 36 42 -14%

Non-Entity Liabilities

Redress collections not yet disbursed 205 385 -47%

Liability for amounts to be collected 45 51 -12%

Total Non-Entity Liabilities 250 436 -43%

Total Liabilities $ 286 $ 478 -40%

Unexpended Appropriations 21 27 -22%

Cumulative results of operations 275 186 48%

Total Net Position 296 213 39%

Total Liabilities and Net Position $ 582 $ 691 -16%
34 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

BALANCE SHEET – ENTITY 

Entity assets totaled $332 million, or 57 percent of all FTC 

assets, as of September 30, 2022, an increase of $77 million, 

or 30 percent, from the FY 2021 total of $255 million 

The Fund Balance with Treasury (FBwT) of $312 million 

comprises $175 million that is temporarily unavailable for 

expenditure and $137 million available to the FTC to make 

expenditures and pay liabilities FBwT has increased by 

$79 million, or 34 percent, from the FY 2021 total of $233 

million At the end of FY 2022, the FTC’s FBwT contained 

$172 million in temporarily unavailable offsetting collections 

(fees from the FTC’s National Do Not Call Registry and 

Premerger notification filings) that exceed the amount 

authorized to offset the FTC’s appropriation 

General property, plant, and equipment (PP&E), net of 

accumulated depreciation/amortization, is $20 million, 

which consists of $18 million in leasehold improvements, 

$1 million in equipment, and $1 million in software Of 

the total PP&E, $15 million in leasehold improvements is 

associated with the FY 2014 relocation of staff to office space 

at the Constitution Center Total PP&E has decreased by $2 

million in comparison to FY 2021 This decrease is primarily 

due to asset disposals and the continued depreciation/

amortization of assets related to the FY 2014 staff relocation 

The annual trend in the FTC’s entity assets reflects a spike in 

the amount of PP&E during FY 2014 for the relocation of 

staff to office space at Constitution Center Upon completion, 

over $46 million had been spent on capitalized assets Since 

these assets were placed in service, the FTC’s PP&E balance 

has decreased, primarily due to continual depreciation and 

amortization FBwT has increased significantly over the 

past two fiscal years due to large increases in the volume of 

Premerger filings Premerger fee collections totaled $237 

million and $191 million in fiscal years 2021 and 2022 

Higher Premerger fee collections have resulted in offsetting 

collections above the amounts authorized by Congress to 

retain and use for necessary expenses of the agency Excess 

collections are precluded from obligation and totaled $87 

million in FY 2021 and $53 million in FY 2022 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 35

MANAGEMENT’S DISCUSSION AND ANALYSIS

Entity liabilities totaled $36 million, or 13 percent of all 

FTC liabilities, as of September 30, 2022, which represents 

a decrease of $6 million from FY 2021 Entity liabilities 

normally have a smaller range of fluctuation in comparison 

to entity assets Accounts payable balances fluctuate based 

on the dollar amount and volume of capitalized purchases 

as well as the timing between the receipt of goods and 

the disbursement to the vendors Accounts payable have 

increased by $2 million in FY 2022 from the prior year due 

to a higher expense accrual for unbilled activity at the end of 

the fiscal year Employee-related liabilities fluctuate based on 

the FTE count and the timing of the payroll disbursement 

cycle These liabilities consist of accrued payroll and benefits, 

accrued annual leave wages earned by employees but not yet 

paid, and workers compensation liabilities under the Federal 

Employees Compensation Act (FECA) At the end of FY 

2021, the payroll and benefit liability included 14 days of 

unpaid wages, while the FY 2022 year-end payroll accrual 

included 5 days of unpaid wages The uptick in employeerelated liabilities in FY 2020 and FY 2021 is attributable to a 

higher number of days of unpaid wages in the payroll accrual 
36 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

BALANCE SHEET - NON-ENTITY 

Non-entity assets totaled $250 million, or 43 percent of all 

FTC assets, as of September 30, 2022 This represents a 

decrease of $186 million, or 43 percent, from the FY 2021 

total of $436 million 

Non-entity assets are equal to, and offset by, non-entity 

liabilities The $45 million net accounts receivable balance is 

offset by the $45 million liability for amounts to be collected, 

while the $205 million FBwT is offset by the $205 million 

liability for redress collections 

The FY 2022 ending net accounts receivable balance of $45 

million reflects amounts to be paid to the FTC from courtordered judgments in the consumer redress program This 

represents a $6 million decrease in net accounts receivable 

from the FY 2021 total of $51 million 

The remaining ending net accounts receivable balance of 

$45 million primarily consists of amounts to be paid to the 

FTC from the following cases: Sanctuary Belize Litigation

for involvement in the allegedly deceptive sale of real estate 

properties in Belize to U S consumers; Zurixx, LLC for 

operating a real estate investment coaching scheme; QYK 

Brands LLC for failing to deliver on orders of personal 

protective equipment in the early stages of the COVID-19 

pandemic and Elegant Solutions, Inc (Mission Hills 

Federal) for operating a student loan debt relief scheme Nine 

additional matters account for the remainder of the balance 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 37

MANAGEMENT’S DISCUSSION AND ANALYSIS

FY 2022 Non-Entity Fund Balance with Treasury Timeline Activity

$384.8M Beginning Balance - FY 2022 Non-Entity Fund Balance with Treasury

A ($25.6M) Apply Knowledge, LLC 

Disbursed $25.6M (10,749 payments) to consumers who lost money to a 

business coaching scheme that used the names Coaching Department and 

Apply Knowledge, among others. These refunds are the result of the FTC’s 

settlements with the scheme’s ringleaders, the companies through which the 

scheme operated, and a payment processor who helped facilitate the scheme. 

B ($10.2)M Lending Club Corporation 

Disbursed $10.2M (15,748 payments) to consumers who were charged 

undisclosed fees by online lender LendingClub Corporation. Refunds are a result 

of a 2021 Settlement. 

C $2.9M I Works, Inc., et al. 

Collected $2.9M from a settlement stemming from 2010 charges against I Works, 

Inc. et al., which operated deceptive “trial” memberships and bogus governmentgrant and money-making schemes.

D ($3.8M) Avant, LLC Disbursed $3.8M (17,367 payments) to consumers who were harmed by the 

lending practices of Avant, LLC. Refunds are a result of a 2019 settlement. 

E ($13.0M) Cephalon, Inc. 

Disbursed $13.0M as a part of a 2015 settlement resolving antitrust charges 

that Cephalon engaged in “pay for delay” conduct to illegally block generic 

competition of the drug Provigil. 

F $4.7M AH Media Group, LLC 

Collected $4.7M from a 2020 settlement alleging that the defendants duped 

consumers by luring them with supposedly “free trial” offers for cosmetics and 

dietary supplements, then enrolling them in subscriptions and billing them 

without their consent. 

G ($24.7M) Next-Gen, Inc. Disbursed $24.7M (244,745 payments) to consumers who were defrauded by the 

Next-Gen sweepstakes scheme. Refunds are a result of a 2019 settlement. 

H $4.7M Zurixx, LLC 

Collected $4.7M from a 2022 settlement with Zurixx, LLC and its owners. The FTC 

and Utah Department of Commerce Division of Consumer Protection alleged 

that Zurixx, LLC, its owners, and a number of associated companies operated a 

real estate investment coaching scheme that sold live seminars and telephone 

coaching using false earnings claims that convinced tens of thousands of 

consumers to pay them thousands or tens of thousands of dollars. 
38 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

FY 2022 Non-Entity Fund Balance with Treasury Timeline Activity

I $4.2M Fashion Nova, LLC

Collected $4.2M from a 2022 settlement with online fashion retailer Fashion Nova, 

LLC to settle charges of blocking negative reviews on its products from being 

posted to its website. 

J ($23.7M) MOBE Ltd., et al. 

Disbursed $23.7M (more than 37,000 payments) to consumers who paid for My 

Online Business Education, or MOBE, a business coaching scheme that made 

bogus promises about how much money participants could make. The refunds 

to consumers included money received as the result of FTC’s settlements against 

one of MOBE’s largest affiliates and two payment processors. 

K $9.9M Napleton Auto

Collected $9.9M from a 2022 settlement with Napleton Auto to settle charges of 

sneaking illegal junk fees for unwanted “add-ons” onto customers’ bills and for 

discriminating against Black consumers by charging them more for financing.

L ($149.5M) AdvoCare International, 

L.P.

Disbursed $149.5M to AdvoCare distributors who lost money as a result of the 

AdvoCare pyramid scheme. Refunds are a result of a 2019 settlement. 

M ($9.7M) Yellowstone Capital, LLC 

Disbursed $9.7M (7,731 payments) to small businesses who were harmed by 

Yellowstone Capital, a merchant cash advance company that withdrew money 

from customer bank accounts without permission. Refunds are a result of a 

2021 settlement. 

N ($5.4M) AH Media Group, LLC 

Disbursed $5.4M (176,028 payments) to consumers who were charged for “free 

trial” offers for cosmetics and weight loss supplements. Refunds result from a 

2020 settlement.

O ($7.4M) Lending Club Corporation 

Disbursed $7.4M as part of a $9.7M payment (61,990 payments) to consumers 

who were charged undisclosed fees by online lender LendingClub Corporation. 

Refunds are a result of a 2021 Settlement.

P $100M Benefytt Technologies, 

et al.

Collected $100M from a 2022 settlement with healthcare company Benefytt 

Technologies for lying to consumers about their sham health insurance plans and 

using deceptive lead generation websites to lure them in.

Q ($5.7)M Lights of America, Inc. 

Disgorged to U.S. Treasury $5.7M from a 2014 judgment for violating federal law 

by overstating the light output and life expectancy of their LED bulbs, and falsely 

comparing the brightness of their LED bulbs with that of other light bulbs. 

 ($27.8M) Net of other collections $42.2 disbursing ($70M) activities, related to over 172 additional matters. 

$204.7M Ending Balances – FY 2022 Non-Entity Fund Balance with Treasury 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 39

MANAGEMENT’S DISCUSSION AND ANALYSIS

STATEMENT OF NET COST

STATEMENT OF NET COST SUMMARY

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(Dollars in Millions) FY 2022 FY 2021 % Change

Protecting Consumers:

Gross costs $ 193 $ 193 0%

Less: earned revenue (14) (13) 8%

Protecting Consumers 179 180 -1%

Maintain Competition:

Gross costs $ 166 $ 170 -2%

Less: earned revenue (192) (238) 19%

Maintaining Competition (26) (68) 62%

Net Cost of Operations $ 153 $ 112 37%

The Statement of Net Cost presents the FTC’s gross costs 

less earned revenue for the agency’s two primary strategic 

goals: Protect the public from unfair or deceptive acts or 

practices in the marketplace (Protect Consumers), and 

protect the public from unfair methods of competition in 

the marketplace and promote fair competition (Maintain 

Competition) A third goal, advance the FTC’s effectiveness 

and performance, has its costs distributed to the other two 

strategic goals based on the percentage of dollars directly 

traceable to each of these two goals The FTC’s net cost of 

operations was $153 million in FY 2022, which consists of 

$359 million in gross costs offset by $206 million in earned 

revenue 

The FY 2022 net cost of operations for the Protect 

Consumers strategic goal is $179 million, consisting of $193 

million in gross costs offset by $14 million in earned revenue, 

the majority of which is attributable to fees collected for the 

National Do Not Call (DNC) Registry The FTC receives 

fees from telemarketers who pay an annual subscription fee to 

download telephone numbers of consumers who do not wish 

to receive calls The DNC fees are based on the number of 

area codes that a telemarketer downloads 

The FY 2022 net cost of operations for the Maintain 

Competition strategic goal is ($26) million, consisting of 

$166 million in gross costs offset by $192 million in earned 

revenue, which is primarily revenue from fees collected 

for premerger notification filings, with a small portion 

(approximately $1 million) from reimbursable agreements 

with other Federal agencies Premerger notification filings 

are made under the Hart-Scott-Rodino (HSR) Antitrust 

Improvement Act of 1976, which gives the federal 

government the opportunity to investigate and challenge 

certain mergers that are likely to harm consumers before 

injury occurs The HSR Act requires the filing of premerger 

notifications with the FTC and the Department of Justice 

(DOJ) Antitrust Division The filing fees are determined by 

the size of the merging parties and the value of the proposed 

transaction By law, the premerger filing fees are split evenly 

between the FTC and the DOJ upon collection 

The $41 million increase in overall net cost of operations 

from FY 2021 to FY 2022 is primarily due to lower revenues 

from premerger filing fees Revenues from Premerger filing 

fees have decreased from $237 million in FY 2021 to $191 

million in FY 2022 
40 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

 FTC NET COST OF OPERATIONS VS. 

BENEFIT TO CONSUMERS 

The FTC had gross costs of $359 million in FY 2022, offset 

by $206 million in earned revenue, resulting in a total net 

cost of operations of $153 million However, a large portion 

of the FTC’s operations result in activity whose benefits are 

not reflected on the Statement of Net Cost These important 

benefits to the public should be considered in determining 

the overall impact of the agency’s strategic goals 

The Statement of Net Cost includes only entity activity 

During FY 2022, the FTC returned $497 million in nonentity collections to consumers and the U S Treasury 

General Fund 

Additionally, the FTC saved consumers an estimated $4 1 

billion through its merger and non-merger competition 

law enforcement actions and its consumer protection law 

enforcement actions 

The FTC’s cost to protect consumers and maintain 

competition is a small fraction of the amount the FTC 

has saved consumers For FY 2022, the FTC provided an 

estimated total of $4 6 billion in benefits to consumers 

When this benefit is compared to the $153 million in net 

costs, it equates to every $1 of the FTC’s cost returning an 

estimated $30 in FTC-provided benefits to consumers 

*These estimates were calculated based on performance 

measures 1.1.1 (money returned to consumers and treasury), 

1.1.2 (consumer savings from consumer protection law 

enforcement), and 2.1.2 (consumer savings from antitrust 

enforcement). For more details on measurement and data 

quality, see the FTC Data Quality Appendix.
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 41

MANAGEMENT’S DISCUSSION AND ANALYSIS

STATEMENT OF CUSTODIAL ACTIVITY

CONDENSED STATEMENT OF CUSTODIAL ACTIVITY FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(Dollars in Millions) FY 2022 FY 2021 % Change

Revenue Activity:

Sources of collections:

Premerger filing fees (net of refunds) $ - $ 16 -100%

Civil penalties and fines 158 146 8%

Consumer redress 14 8 75%

Total cash collections 172 170 1%

Accrual adjustments - - 0%

Total Custodial revenue $ 172 $ 170 1%

Disposition of Collections:

Transferred to others:

Treasury general fund $ 172 $ 154 12%

Department of Justice - 16 -100%

Amounts yet to be transferred - - 0%

Total Disposition of Collections $ 172 $ 170 1%

Net Custodial Activity $ - $ - 0%

The Statement of Custodial Activity displays the custodial 

revenue recognized during the fiscal year in comparison 

to the disposition or transfer out of cash held on behalf of 

other entities The FY 2022 total custodial revenue is $172 

million which is on par with the FY 2021 custodial revenue 

of $170 million Premerger filing fees collected on behalf 

of the DOJ have decreased by $16 million In FY 2021, the 

FTC implemented a new collection process for the Premerger 

filing fees to split collections evenly between the FTC and the 

DOJ upon receipt Prior to FY 2021, the FTC collected the 

full amount of fees under the HSR premerger notification 

program and remitted half to the DOJ, which resulted in a 

custodial liability A total of $16 million in Premerger fees 

were processed on behalf of the DOJ at the start of fiscal year 

2021 before the process change was implemented 

Civil penalties and fines are collected in connection with 

the settlement or litigation of the FTC’s administrative or 

Federal court cases At the end of each fiscal year, all civil 

penalties collected are transferred to the Treasury General 

Fund In FY 2022, the FTC collected a penalty of $146 

million from Twitter for deceptively using account security 

data for targeted advertising This violated a 2011 FTC order 

prohibiting the company from misrepresenting its privacy 

and security practices FY 2021 civil penalties returned to the 

Treasury General Fund include $122 million from DISH 

Network for violations of the Telemarketing Sales Rule and 

Telephone Consumer Protection Act Collections held for 

consumer redress will also be transferred, or disgorged, to the 

Treasury General Fund in the event redress is determined to 

be not practicable 
42 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

FTC BUDGETARY RESOURCES AND HOW THEY WERE USED 

BUDGET AUTHORITY 

The FTC receives an annual appropriation that is available 

until expended, subject to Office of Management and Budget 

(OMB) apportionment and Congressional restrictions on 

the expenditure of funds (see FTC’s FY 2022 Congressional 

Budget Justification, pages 5 to 6, “Appropriations Language 

Provisions”) The FTC’s budget authority is derived from a 

direct appropriation and offsetting collections 

New budget authority for FY 2022 is $379 million which 

includes $224 million in a direct appropriation and $155 

million in spending authority from offsetting collections 

Offsetting collections consist of $138 million from fees 

collected for premerger notification filings under the HSR 

Antitrust Improvements Act of 1976, $14 million from fees 

collected for the National Do Not Call Registry, and $3 

million from reimbursable work on behalf of other Federal 

agencies In FY 2021, the FTC received an additional 

appropriation of $30 4 million under the American Rescue 

Plan Act of 2021 (ARPA), to remain available through FY 

2026 This appropriation authorizes funding for the FTC to 

cover higher costs associated with the COVID-19 pandemic 

to include: $24 million for payroll expenses, $4 4 million for 

processing and monitoring of consumer complaints received 

through the Consumer Sentinel Network, and $2 million 

for consumer-related education The FTC’s FY 2021 new 

budget authority totaled $383 million, or $218 million in 

general fund appropriations and $165 million in offsetting 

collections 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 43

MANAGEMENT’S DISCUSSION AND ANALYSIS

Because current year offsetting collections up to the 

congressionally authorized amount are deducted from gross 

budget authority and outlays, only 59 percent of the FTC’s 

net budget authority comes from Treasury General Fund 

appropriations This reduces the burden the FTC places on 

the federal budget to $224 million, which is less than 1/10 of 

1 percent of the total non-defense discretionary spending for 

FY 2022 

Historically, the FTC’s budget authority has been relatively 

static From FY 2010 through FY 2014, the FTC received 

an OMB category B apportionment for the relocation of 

staff to office space at the Constitution Center Excluding 

the category B funding, the FTC had a 37 percent or $103 

million change from FY 2010 ($276 million) to FY 2022 

($379 million) The modest increase in the FTC’s budget 

authority over the last decade significantly lags behind the 

agency’s increased responsibilities that result from rising 

expectations of the American public For example, consumer 

complaints to the FTC rose by over 200 percent, and 

premerger filings rose by over 150 percent, among other 

measures of the FTC’s increased workload in the past decade 

In addition, the FTC continues facing profound impacts from 

the COVID-19 pandemic and resulting challenges during FY 

2021 and FY 2022 

The FTC’s increasing costs are also reflected in expert witness 

costs The agency is engaged in a larger number of complex 

investigations and litigation matters that require the services 

of expert witnesses In particular, expert witnesses are critical 

to the successful investigation and litigation of merger cases, 

as experts provide insight on proper definition of product 

.5%
44 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

and geographic markets, assess the likelihood of entry by 

new competitors, and develop models to evaluate merger 

efficiencies as compared to potential competitive harm Rising 

costs for critical expert services in litigation matters continue 

to pose significant challenges on the FTC’s limited budgetary 

resources and the FTC is currently exploring ways to reduce 

those costs 

Visit the FTC’s Data and Visualizations page to view 

interactive dashboards on data collected from consumer 

complaints, and the Do Not Call program Visit the 

Premerger Notification page to learn more about the 

Premerger Notification Program 

THE FTC’S FY 2022 OBLIGATIONS: 

In FY 2022, the FTC received $379 million in new budget 

authority and authority to obligate $45 million in its 

unobligated balance brought forward in addition to $5 

million in recoveries of prior-year obligations and $2 million 

in non-expenditure transfers Pursuant to these authorities, 

the FTC obligated $370 3 million in FY 2022 This was an 

increase of $18 8 million, or 5 3 percent, compared to new 

obligations in FY 2021 The increase in obligations incurred 

in FY 2022 was mainly attributable to higher costs for payroll 

(personnel salaries and benefits) and expert witnesses Payroll 

spending has increased by 3 1 percent to $234 million in 

FY 2022 from $227 million in FY 2021 This is the result 

of the 2 2 percent pay raise for FY 2022, and higher cost 

factors associated with employee benefits Obligations related 

to expert witness support services have increased by $3 3 

million (20 4 percent) in FY 2022 compared to FY 2021 

While the FTC is committed to limiting costs on expert 

witness services, the agency continues to face pressure from 

resource constraints as it performs mission-critical work 

and maintains fair competition in increasingly complex and 

pervasive technology markets that raise unique antitrust 

considerations Obligations for other contractual services 

have increased by $5 2 million (6 9 percent) while spending 

on rent, communications, and utilities has increased by $1 5 

million (5 1 percent) from the previous fiscal year 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 45

MANAGEMENT’S DISCUSSION AND ANALYSIS

FTC PROFILE ON USA SPENDING: 

Additional details of agency spending are captured on usaspending gov where, beginning in FY 2017, federal agencies have 

certified to the accuracy of data Federal spending is available for public consumption to ensure taxpayers can see how their 

money is being used in communities across America 

The below excerpt is taken from the FTC’s Agency profile page on usaspending gov 

Federal Trade Commission

Agency Mission

Protecting the public from deceptive or unfair business practices and from unfair methods of 

competition through law enforcement, advocacy, research, and education.

Website

https://www ftc gov/

Congressional Justification of Budget (CJ)

https://www ftc gov/cj

FINANCIAL MANAGEMENT INDICATORS FOR FY 2022 

The following table shows standard indicators developed by the Chief Financial Officers Council and used by the OMB to 

monitor agencies’ financial management practices 

DEBT MANAGEMENT

Eligible debt transferred to Treasury 100%

FUNDS MANAGEMENT

Fund balance with Treasury (identifies the difference between the fund balance reported in 

Treasury reports and the agency fund balance with Treasury recorded in its general ledger) 100% reconciled

PAYMENT MANAGEMENT

Percentage invoices paid on time (per Prompt Payment Act) 99.96%

Percentage interest penalties paid to total dollars invoiced .000008%

Percentage of total dollars outstanding in current status (good standing) for individually billed 

travel account holders 100%

Percentage of total dollars outstanding in current status (good standing) for centrally billed travel 

accounts 100%

Percentage of total dollars outstanding in current status (good standing) for purchase cards 100%

LIMITATIONS OF FINANCIAL 

STATEMENTS 

The principal financial statements are prepared to report 

the financial position, financial condition, and results of 

operations, pursuant to the requirements of 31 U S C 

§ 3515(b) The statements are prepared from records of 

Federal entities in accordance with Federal generally accepted 

accounting principles (GAAP) and the formats prescribed 

by OMB Reports used to monitor and control budgetary 

resources are prepared from the same records Users of 

the statements are advised that the statements are for a 

component of the U S Government 

FINANCIAL

SECTION
48 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

I am pleased to present the Agency Financial Report (AFR) for Fiscal Year 2022 The AFR provides a comprehensive view 

of the FTC’s financial activities and demonstrates the FTC’s stewardship and management of public funds The financial 

statements and corresponding financial analysis, together with the Agency’s Performance Highlights, demonstrate how the FTC 

optimizes its financial resources to protect American consumers and maintain competition in the marketplace 

In FY 2022, the FTC has achieved, for the twenty-sixth consecutive year, an unmodified audit opinion from independent 

auditors We are very proud of this accomplishment This sustained achievement is due to the efforts of the Financial 

Management Office (FMO) staff, as supported by senior leadership, fund managers, and FTC personnel throughout the agency 

This past year, the FTC has demonstrated its commitment to continuous improvement with the following accomplishments: 

n No material weaknesses or significant deficiencies in Internal Controls Over Financial Reporting; 

n No instances of noncompliance with laws and regulations that are required to be reported under Government Auditing 

Standards; 

n Closed eight internal control Corrective Action Plans (CAPs) through close collaboration within FMO and throughout the 

agency, and no open internal control findings at fiscal year-end were considered material or high risk; 

n Continued monitoring Fraud Risk by collecting and analyzing related fraud control data from FTC program areas; 

n Continued work to streamline our internal processes to leverage efficiencies with our Shared Service Provider (ARC) ; 

n Leveraged reporting tools to gain process efficiencies ensuring month-end close within two business days, as compared to the 

previous five-day close process; 

n Updated the FTC risk profile to identify and monitor agency risk including the Supreme Court ruling that removed the 

authority to return money to consumers per Section 13(b) of the FTC Act; and 

n Completed and released a new agency strategic plan with many new and revised performance metrics 

The accomplishments outlined in this report are the result of FTC employees’ hard work and dedication The unmodified 

audit opinion and financial accomplishments reflect an organizational commitment to sound financial management and 

accountability that the agency hopes earns the trust of the American public This agency is steadfastly committed to its mission, 

returning substantial value to the American consumer, and being an exemplary steward of the funds entrusted to it 

Randy Salzer, Acting Chief Financial Officer 

November 14, 2022
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 49

FINANCIAL SECTION

FTC, Office of Inspector General logo

UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION

WASHINGTON, D C 2058

November 14, 2022

MEMORANDUM

FROM: Andrew Katsaros, Inspector General

TO: Lina M Khan, Chair

SUBJECT: Report on Audit of the FTC’s Fiscal Year 2022 and 2021 Financial Statements

I am pleased to provide you with the attached audit report required by the Accountability of Tax Dollars Act of 2002, 

which presents an unmodified opinion on the Federal Trade Commission’s (FTC) financial statements for fiscal years 

2022 and 2021 We commend the FTC for attaining an unmodified (clean) opinion for the 26th consecutive year 

We contracted with the independent public accounting firm of Brown & Company CPAs and Management 

Consultants, PLLC (Brown & Company), to audit the financial statements of the FTC as of and for the fiscal years 

ended September 30, 2022, and 2021, and to provide a report on internal control over financial reporting and on 

compliance with laws and other matters The contract required that the audit be performed in accordance with U S 

generally accepted government auditing standards, Office of Management and Budget audit guidance, and the GAO/

CIGIE Financial Audit Manual 

In its audit of the agency, Brown & Company reported

• the financial statements are presented fairly, in all material respects, in accordance with U S generally accepted 

accounting principles;

• no material weaknesses in internal control over financial reporting;1

 and

• no reportable noncompliance with provisions of laws tested or other matters 

Brown & Company is responsible for the attached auditor’s report dated November 14, 2022, and the conclusions 

expressed in the report We do not express opinions on FTC’s financial statements or internal control over financial 

reporting, or conclusions on compliance and other matters 

1 A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, 

such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be 

prevented, or detected and corrected, on a timely basis 

 

November 14, 2022 

MEMORANDUM

FROM: Andrew Katsaros

 Inspector General

TO: Lina M. Khan, Chair 

SUBJECT: Report on Audit of the FTC’s Fiscal Year 2022 and 2021 Financial Statements

I am pleased to provide you with the attached audit report required by the Accountability of Tax Dollars 

Act of 2002, which presents an unmodified opinion on the Federal Trade Commission’s (FTC) financial 

statements for fiscal years 2022 and 2021. We commend the FTC for attaining an unmodified (clean) 

opinion for the 26th consecutive year.

We contracted with the independent public accounting firm of Brown & Company CPAs and 

Management Consultants, PLLC (Brown & Company), to audit the financial statements of the FTC as 

of and for the fiscal years ended September 30, 2022, and 2021, and to provide a report on internal 

control over financial reporting and on compliance with laws and other matters. The contract required 

that the audit be performed in accordance with U.S. generally accepted government auditing standards, 

Office of Management and Budget audit guidance, and the GAO/CIGIE Financial Audit Manual. 

In its audit of the agency, Brown & Company reported

• the financial statements are presented fairly, in all material respects, in accordance with U.S. 

generally accepted accounting principles; 

• no material weaknesses in internal control over financial reporting;

1 and

• no reportable noncompliance with provisions of laws tested or other matters. 

Brown & Company is responsible for the attached auditor’s report dated November 14, 2022, and the 

conclusions expressed in the report. We do not express opinions on FTC’s financial statements or 

internal control over financial reporting, or conclusions on compliance and other matters. 

1

 A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that 

there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or 

detected and corrected, on a timely basis. 

UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION

WASHINGTON, D.C. 20580

 Office of Inspector General
50 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

We appreciate the cooperation given by management to Brown & Company and the 

Office of Inspector General during the audit If you have any questions or would like 

to discuss the report, please contact me at (202) 326-3527 

2 

We appreciate the cooperation given by management to Brown & Company and the Office of Inspector 

General during the audit. If you have any questions or would like to discuss the report, please contact me 

at (202) 326-3527. 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 51

FINANCIAL SECTION

Brown & Company logo

INDEPENDENT AUDITOR’S REPORT

Inspector General

Federal Trade Commission

Washington, D C 

In our audits of the fiscal years 2022 and 2021 financial statements of the Federal Trade Commission (FTC), we found:

• FTC’s financial statements as of and for the fiscal years ended September 30, 2022, and 2021, are presented fairly, in all 

material respects, in accordance with United States of America (U S ) generally accepted accounting principles;

• no material weaknesses in internal control over financial reporting based on the limited procedures we performed; and

• no reportable noncompliance with provisions of applicable laws, regulations, contracts, and grant agreements for fiscal year 

2022 

The following sections discuss in more detail (1) our report on the financial statements, which includes required 

supplementary information (RSI)1

 and other information included with the financial statements2; (2) our report on internal 

control overfinancial reporting; (3) our report on compliance with laws, regulations, contracts, and grant agreements 

Report on the Financial Statements

Opinion

In accordance with the provisions of the Accountability of Tax Dollars Act of 2002 (ATDA) (Pub L No 107-289), we have 

audited FTC’s financial statements FTC’s financial statements comprise the balance sheets as of September 30, 2022, and 

2021; the related statements of net cost, changes in net position, and budgetary resources for the fiscal years then ended; and 

the related notes to the financial statements In our opinion, FTC’s financial statements present fairly, in all material respects, 

FTC’s financial position as of September 30, 2022, and 2021, and its net costs of operations, changes in net position, and 

budgetary resources for the fiscal years then ended in accordance with U S generally accepted accounting principles 

Basis for Opinion

We conducted our audits in accordance with U S generally accepted government auditing standards Our responsibilities 

under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section 

of our report We are required to be independent of FTC and to meet our other ethical responsibilities, in accordance with the 

relevant ethical requirements relating to our audit 

1 The RSI consists of Management’s Discussion and Analysis and the Statement of Budgetary Resources, which are 

included with the financial statements 

2 Other information consists of information included with the financial statements, other than the RSI, Financial the 

auditor’s report 

1 

INDEPENDENT AUDITOR’S REPORT 

Inspector General 

Federal Trade Commission 

Washington, D.C. 

In our audits of the fiscal years 2022 and 2021 financial statements of the Federal Trade Commission 

(FTC), we found:

• FTC’s financial statements as of and for the fiscal years ended September 30, 2022, and 2021, 

are presented fairly, in all material respects, in accordance with United States of America 

(U.S.) generally accepted accounting principles; 

• no material weaknesses in internal control over financial reporting based on the limited 

procedures we performed; and 

• no reportable noncompliance with provisions of applicable laws, regulations, contracts, and 

grant agreements for fiscal year 2022. 

The following sections discuss in more detail (1) our report on the financial statements, which includes 

required supplementary information (RSI)1 and other information included with the financial

statements2; (2) our report on internal control overfinancialreporting; (3) our report on compliance with

laws, regulations, contracts, and grant agreements. 

Report on the Financial Statements 

Opinion 

In accordance with the provisions of the Accountability of Tax Dollars Act of 2002 (ATDA) (Pub. L. No. 

107-289), we have audited FTC’s financial statements. FTC’s financial statements comprise the balance 

sheets as of September 30, 2022, and 2021; the related statements of net cost, changes in net position, and 

budgetary resources for the fiscal years then ended; and the related notes to the financial statements. In our 

opinion, FTC’s financial statements present fairly, in all material respects, FTC’s financial position as of 

September 30, 2022, and 2021, and its net costs of operations, changes in net position, and budgetary 

resources for the fiscal years then ended in accordance with U.S. generally accepted accounting principles. 

Basis for Opinion

We conducted our audits in accordance with U.S. generally accepted government auditing standards. Our 

responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit 

of the Financial Statements section of our report. We are required to be independent of FTC and to meet 

our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. 

1 The RSI consists of Management’s Discussion and Analysis and the Statement of Budgetary Resources, which are 

included with the financial statements.

2 Other information consists of information included with the financial statements, other than the RSI, Financial 

section, and the auditor’s report. 
52 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit 

opinion 

Responsibility of Management for the Financial Statements

FTC management is responsible for (1) the preparation and fair presentation of these financial statements in 

accordance with U S generally accepted accounting principles; (2) preparing, measuring, and presenting the RSI 

in accordance with U S generally accepted accounting principles; (3) preparing and presenting other information 

included in FTC’s agency financial report, and ensuring the consistency of that information with the audited 

financial statements and the RSI; and (4) designing, implementing, and maintaining effective internal control 

relevant to the preparation and fair presentation of financial statements that are free from material misstatement, 

whether due to fraud or error 

Auditor’s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 

from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 

opinion Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not 

a guarantee that an audit of the financial statements conducted in accordance with U S generally accepted 

government auditing standards will always detect a material misstatement or a material weakness when it exists 

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, 

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal 

control Misstatements, including omissions, are considered to be material if there is a substantial likelihood 

that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the 

financial statements 

In performing an audit in accordance with U S generally accepted government auditing standards, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit 

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud 

or error, and design and perform audit procedures responsive to those risks Such procedures include 

examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements in 

order to obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion 

• Obtain an understanding of internal control relevant to our audit of the financial statements in order to 

design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an 

opinion on the effectiveness of FTC’s internal control over financial reporting Accordingly, no such opinion 

is expressed 

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting 

estimates made by management, as well as evaluate the overall presentation of the financial statements 

• Perform other procedures we consider necessary in the circumstances 

We are required to communicate with those charged with governance regarding, among other matters, the 

he audit, significant audit findings, and certain internal control–related matters that we identified during the 

financial statement audit 

2 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 

audit opinion. 

Responsibility of Management for the Financial Statements

FTC management is responsible for (1) the preparation and fair presentation of these financial statements 

in accordance with U.S. generally accepted accounting principles; (2) preparing, measuring, and presenting 

the RSI in accordance with U.S. generally accepted accounting principles; (3) preparing and presenting 

other information included in FTC’s agency financial report, and ensuring the consistency of that 

information with the audited financial statements and the RSI; and (4) designing, implementing, and 

maintaining effective internal control relevant to the preparation and fair presentation of financial 

statements that are free from material misstatement, whether due to fraud or error. 

Auditor’s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 

from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 

opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not 

a guarantee that an audit of the financial statements conducted in accordance with U.S. generally accepted 

government auditing standards will always detect a material misstatement or a material weakness when it 

exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the 

override of internal control. Misstatements, including omissions, are considered to be material if there is a 

substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a 

reasonable user based on the financial statements. 

In performing an audit in accordance with U.S. generally accepted government auditing standards, we: 

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether due to 

fraud or error, and design and perform audit procedures responsive to those risks. Such procedures 

include examining, on a test basis, evidence regarding the amounts and disclosures in the financial 

statements in order to obtain audit evidence that is sufficient and appropriate to provide a basis for 

our opinion. 

• Obtain an understanding of internal control relevant to our audit of the financial statements in order 

to design audit procedures that are appropriate in the circumstances, but not for the purpose of 

expressing an opinion on the effectiveness of FTC’s internal control over financial reporting. 

Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant 

accounting estimates made by management, as well as evaluate the overall presentation of the 

financial statements.

• Perform other procedures we consider necessary in the circumstances.

We are required to communicate with those charged with governance regarding, among other matters, the 

planned scope and timing of the audit, significant audit findings, and certain internal control–related matters 

that we identified during the financial statement audit. 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 53

FINANCIAL SECTION

Required Supplementary Information

U S generally accepted accounting principles issued by the Federal Accounting Standards Advisory Board 

(FASAB) require that the RSI be presented to supplement the financial statements Such information is the 

responsibility of management and, although not a part of the financial statements, is required by FASAB, which 

considers it to be an essential part of financial reporting for placing the financial statements in appropriate 

operational, economic, or historical context We have applied certain limited procedures to the RSI in accordance 

with U S generally accepted government auditing standards, which consisted of inquiries of management about 

the methods of preparing the RSI and comparing the information for consistency with management’s responses 

to the auditor’s inquiries, the financial statements, and other knowledge we obtained during the audit of the 

financial statements, in order to report omissions or material departures from FASAB guidelines, if any, identified 

by these limited procedures We did not audit and we do not express an opinion or provide any assurance on the 

RSI because the limited procedures we applied do not provide sufficient evidence to express an opinion or provide 

any assurance 

Other Information

FTC’s other information contains a wide range of information, some of which is not directly related to the 

financial statements This information is presented for purposes of additional analysis and is not a required part 

of the financial statements or the RSI Management is responsible for the other information included in FTC’s 

agency financial report The other information comprises the information included in the annual report but does 

not include the financial statements and our auditor’s report thereon Our opinion on the financial statements 

does not cover the other information, and we do not express an opinion or any form of assurance thereon 

In connection with our audit of the financial statements, our responsibility is to read the other information and 

consider whether a material inconsistency exists between the other information and the financial statements, or 

the other information otherwise appears to be materially misstated If, based on the work performed, we conclude 

that an uncorrected material misstatement of the other information exists, we are required to describe it in our 

report 

Report on Internal Control over Financial Reporting

In connection with our audits of FTC’s financial statements, we considered FTC’s internal control over financial 

reporting, consistent with our auditor’s responsibilities discussed below 

Results of Our Consideration of Internal Control over Financial Reporting

Our consideration of internal control was for the limited purpose described below, and was not designed to 

identify all deficiencies in internal control that might be material weaknesses or significant deficiencies or to 

express an opinion on the effectiveness of FTC’s internal control over financial reporting Given these limitations, 

during our audit, we did not identify any deficiencies in internal control over financial reporting that we consider 

to be material weaknesses However, material weaknesses or significant deficiencies may exist that have not been 

identified 

During our FY 2022 audit, we identified deficiencies in FTC’s internal control over financial reporting that we do 

not consider to be material weaknesses or significant deficiencies Nonetheless, these deficiencies ment’s attention 

We communicated these matters to FTC management and, where appropriate, will report on them separately 

3 

Required Supplementary Information 

U.S. generally accepted accounting principles issued by the Federal Accounting Standards Advisory Board 

(FASAB) require that the RSI be presented to supplement the financial statements. Such information is the 

responsibility of management and, although not a part of the financial statements, is required by FASAB, 

which considers it to be an essential part of financial reporting for placing the financial statements in 

appropriate operational, economic, or historical context. We have applied certain limited procedures to the 

RSI in accordance with U.S. generally accepted government auditing standards, which consisted of 

inquiries of management about the methods of preparing the RSI and comparing the information for 

consistency with management’s responses to the auditor’s inquiries, the financial statements, and other 

knowledge we obtained during the audit of the financial statements, in order to report omissions or material 

departures from FASAB guidelines, if any, identified by these limited procedures. We did not audit and we 

do not express an opinion or provide any assurance on the RSI because the limited procedures we applied 

do not provide sufficient evidence to express an opinion or provide any assurance. 

Other Information 

FTC’s other information contains a wide range of information, some of which is not directly related to the 

financial statements. This information is presented for purposes of additional analysis and is not a required 

part of the financial statements or the RSI. Management is responsible for the other information included 

in FTC’s agency financial report. The other information comprises the information included in the annual 

report but does not include the financial statements and our auditor’s report thereon. Our opinion on the 

financial statements does not cover the other information, and we do not express an opinion or any form of 

assurance thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information 

and consider whether a material inconsistency exists between the other information and the financial 

statements, or the other information otherwise appears to be materially misstated. If, based on the work 

performed, we conclude that an uncorrected material misstatement of the other information exists, we are 

required to describe it in our report. 

Report on Internal Control over Financial Reporting 

In connection with our audits of FTC’s financial statements, we considered FTC’s internal control over 

financial reporting, consistent with our auditor’s responsibilities discussed below. 

Results of Our Consideration of Internal Control over Financial Reporting 

Our consideration of internal control was for the limited purpose described below, and was not designed to 

identify all deficiencies in internal control that might be material weaknesses or significant deficiencies or 

to express an opinion on the effectiveness of FTC’s internal control over financial reporting. Given these 

limitations, during our audit, we did not identify any deficiencies in internal control over financial reporting 

that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may 

exist that have not been identified. 

During our FY 2022 audit, we identified deficiencies in FTC’s internal control over financial reporting that 

we do not consider to be material weaknesses or significant deficiencies. Nonetheless, these deficiencies 

warrant FTC’s management’s attention. We communicated these matters to FTC management and, where 

appropriate, will report on them separately.
54 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

Basis for Results of Our Consideration of Internal Control over Financial Reporting

We performed our procedures related to FTC’s internal control over financial reporting in accordance with

U S generally accepted government auditing standards 

Responsibilities of Management for Internal Control over Financial Reporting

FTC management is responsible for designing, implementing, and maintaining effective internal control over financial 

reporting relevant to the preparation and fair presentation of financial statements that are free from material misstatement, 

whether due to fraud or error 

Auditor’s Responsibilities for Internal Control over Financial Reporting

In planning and performing our audit of FTC’s financial statements as of and for the fiscal year ended September 30, 2022, 

in accordance with U S generally accepted government auditing standards, we considered FTC’s internal control relevant 

to the financial statement audit in order to design audit procedures that are appropriate in the circumstances, but not for 

the purpose of expressing an opinion on the effectiveness of FTC’s internal control over financial reporting Accordingly, 

we do not express an opinion on FTC’s internal control over financial reporting We are required to report all deficiencies 

that are considered to be significant deficiencies or material weaknesses We did not consider all internal controls relevant 

to operating objectives, such as those controls relevant to preparing performance information and ensuring efficient 

operations 

Definition and Inherent Limitations of Internal Control over Financial Reporting

An entity’s internal control over financial reporting is a process effected by those charged with governance, management, 

and other personnel, the objectives of which are to provide reasonable assurance that (1) transactions are properly 

recorded, processed, and summarized to permit the preparation of financial statements in accordance with U S generally 

accepted accounting principles, and assets are safeguarded against loss from unauthorized acquisition, use, or disposition, 

and (2) transactions are executed in accordance with provisions of applicable laws, including those governing the use of 

budget authority, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on 

the financial statements 

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and correct, 

misstatements due to fraud or error 

Intended Purpose of Report on Internal Control over Financial Reporting

The purpose of this report is solely to describe the scope of our consideration of FTC’s internal control over financial 

reporting and the results of our procedures, and not to provide an opinion on the effectiveness of FTC’s internal control 

over financial reporting This report is an integral part of an audit performed in accordance with U S generally accepted 

government auditing standards in considering internal control over financial reporting Accordingly, this report on internal 

control over financial reporting is not suitable for any other purpose 

Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements

In connection with our audits of FTC’s financial statements, we tested compliance with selected provisions of applicable 

laws, regulations, contracts, and grant agreements consistent with our auditor’s responsibilities discussed below 

4 

Basis for Results of Our Consideration of Internal Control over Financial Reporting 

We performed our procedures related to FTC’s internal control over financial reporting in accordance with 

U.S. generally accepted government auditing standards. 

Responsibilities of Management for Internal Control over Financial Reporting 

FTC management is responsible for designing, implementing, and maintaining effective internal control 

over financial reporting relevant to the preparation and fair presentation of financial statements that are free 

from material misstatement, whether due to fraud or error. 

Auditor’s Responsibilities for Internal Control over Financial Reporting

In planning and performing our audit of FTC’s financial statements as of and for the fiscal year ended 

September 30, 2022, in accordance with U.S. generally accepted government auditing standards, we 

considered FTC’s internal control relevant to the financial statement audit in order to design audit 

procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on 

the effectiveness of FTC’s internal control over financial reporting. Accordingly, we do not express an 

opinion on FTC’s internal control over financial reporting. We are required to report all deficiencies that 

are considered to be significant deficiencies or material weaknesses. We did not consider all internal 

controls relevant to operating objectives, such as those controls relevant to preparing performance 

information and ensuring efficient operations.

Definition and Inherent Limitations of Internal Control over Financial Reporting 

An entity’s internal control over financial reporting is a process effected by those charged with governance, 

management, and other personnel, the objectives of which are to provide reasonable assurance that (1) 

transactions are properly recorded, processed, and summarized to permit the preparation of financial 

statements in accordance with U.S. generally accepted accounting principles, and assets are safeguarded 

against loss from unauthorized acquisition, use, or disposition, and (2) transactions are executed in 

accordance with provisions of applicable laws, including those governing the use of budget authority, 

regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the 

financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and 

correct, misstatements due to fraud or error. 

Intended Purpose of Report on Internal Control over Financial Reporting 

The purpose of this report is solely to describe the scope of our consideration of FTC’s internal control over 

financial reporting and the results of our procedures, and not to provide an opinion on the effectiveness of 

FTC’s internal control over financial reporting. This report is an integral part of an audit performed in 

accordance with U.S. generally accepted government auditing standards in considering internal control over 

financial reporting. Accordingly, this report on internal control over financial reporting is not suitable for 

any other purpose.

Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements 

In connection with our audits of FTC’s financial statements, we tested compliance with selected provisions 

of applicable laws, regulations, contracts, and grant agreements consistent with our auditor’s 

responsibilities discussed below. 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 55

FINANCIAL SECTION

Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant agreements 

disclosed no instances of noncompliance for fiscal year 2022 that would be reportable under

U S generally accepted government auditing standards However, the objective of our tests was not to provide an 

opinion on compliance with laws, regulations, contracts, and grant agreements applicable to FTC Accordingly, we do 

not express such an opinion 

Basis for Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements

We performed our tests of compliance in accordance with U S generally accepted government auditing standards 

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for Tests of 

Compliance section below 

Responsibilities of Management for Compliance with Laws, Regulations, Contracts, and Grant Agreements

FTC management is responsible for complying with laws, regulations, contracts, and grant agreements applicable to 

FTC 

Auditor’s Responsibilities for Tests of Compliance with Laws, Regulations, Contracts, and Grant Agreements

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, contracts, and grant 

agreements applicable to FTC that have a direct effect on the determination of material amounts and disclosures in 

FTC’s financial statements, and to perform certain other limited procedures Accordingly, we did not test compliance 

with all laws, regulations, contracts, and grant agreements applicable to FTC We caution that noncompliance may 

occur and not be detected by these tests 

Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements

The purpose of this report is solely to describe the scope of our testing of compliance with selected provisions of 

applicable laws, regulations, contracts, and grant agreements, and the results of that testing, and not to provide 

an opinion on compliance This report is an integral part of an audit performed in accordance with U S generally 

accepted government auditing standards in considering compliance Accordingly, this report on compliance with laws, 

regulations, contracts, and grant agreements is not suitable for any other purpose 

[Brown & Company signature]

Greenbelt, Maryland

 November 14, 2022

5 

Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements 

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant 

agreements disclosed no instances of noncompliance for fiscal year 2022 that would be reportable under 

U.S. generally accepted government auditing standards. However, the objective of our tests was not to 

provide an opinion on compliance with laws, regulations, contracts, and grant agreements applicable to 

FTC. Accordingly, we do not express such an opinion. 

Basis for Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements 

We performed our tests of compliance in accordance with U.S. generally accepted government auditing 

standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities 

for Tests of Compliance section below. 

Responsibilities of Management for Compliance with Laws, Regulations, Contracts, and Grant Agreements 

FTC management is responsible for complying with laws, regulations, contracts, and grant agreements 

applicable to FTC. 

Auditor’s Responsibilities for Tests of Compliance with Laws, Regulations, Contracts, and Grant 

Agreements 

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, contracts, 

and grant agreements applicable to FTC that have a direct effect on the determination of material amounts 

and disclosures in FTC’s financial statements, and to perform certain other limited procedures. 

Accordingly, we did not test compliance with all laws, regulations, contracts, and grant agreements 

applicable to FTC. We caution that noncompliance may occur and not be detected by these tests. 

Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements 

The purpose of this report is solely to describe the scope of our testing of compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements, and the results of that testing, 

and not to provide an opinion on compliance. This report is an integral part of an audit performed in 

accordance with U.S. generally accepted government auditing standards in considering compliance. 

Accordingly, this report on compliance with laws, regulations, contracts, and grant agreements is not 

suitable for any other purpose. 

Greenbelt, Maryland 

November 14, 2022 
56 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

PRINCIPAL FINANCIAL STATEMENTS

FINANCIAL STATEMENT DESCRIPTIONS

A brief description of the five principal financial statements presented on the following pages is provided: 

Balance Sheet – Presents the combined amounts the agency had to use or distribute (assets) versus the amounts the agency 

owed (liabilities), and the difference between the two (net position) 

Statement of Net Cost – Presents the annual cost of agency operations The gross cost less offsetting revenue is used to 

determine the net cost 

Statement of Changes in Net Position – Reports the accounting activities that caused the change in net position during the 

reporting period 

Statement of Budgetary Resources – Reports how budgetary resources were made available and the status of those resources 

at fiscal year-end 

Statement of Custodial Activity – Reports collections and their disposition by the agency on behalf of the Treasury General 

Fund and one other Federal agency The FTC acts as custodian and does not have use of these funds 

The accompanying Notes to the Financial Statements describe significant accounting policies as well as detailed information on 

select statement lines 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 57

FINANCIAL SECTION

BALANCE SHEET

AS OF SEPTEMBER 30, 2022 AND 2021

(DOLLARS IN THOUSANDS)

2022 2021

Assets (Note 2):

Intragovernmental:

Fund balance with Treasury (Note 3) $ 516,745 $ 617,499 

Accounts receivable, Net (Note 4) 6 32 

Advances and prepayments 7 6 

Total intragovernmental assets 516,758 617,537 

Other than intragovernmental:

Accounts receivable, Net (Note 4) 45,175 51,166 

General property, plant, and equipment, Net (Note 5) 19,643 22,262 

Total other than intragovernmental assets 64,818 73,428

Total Assets $ 581,576 $ 690,965 

Liabilities (Notes 6 and 7):

Intragovernmental:

Accounts payable $ 1,251 $ 1,270 

Other liabilities (Note 7) 1,504 2,753 

Total intragovernmental liabilities 2,755 4,023 

Other than intragovernmental:

Accounts payable 12,085 9,610 

Other liabilities:

Accrued redress due to claimants 44,976 51,116 

Undisbursed redress collections (Note 12) 204,704 384,821

Other (Note 7) 21,030 28,351 

Total other than Intragovernmental liabilities 282,795 473,898

Total Liabilities 285,550 477,921 

Net position (Note 1(o)):

Total unexpended appropriations 20,821 27,000 

Total cumulative results of operations 275,205 186,044 

Total Net Position 296,026 213,044 

Total Liabilities and Net Position $ 581,576 $ 690,965

The accompanying notes are an integral part of these statements.
58 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

STATEMENT OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021 

(DOLLARS IN THOUSANDS)

2022 2021

Strategic Goal 1: Protect Consumers:

Intragovernmental costs $ 51,731 $ 48,723 

Public costs 141,644 144,410 

Gross costs, protect consumers 193,375 193,133 

Intragovernmental earned revenue (88) (268)

Public earned revenue (14,310) (12,936)

Earned revenue, protect consumers (14,398) (13,204)

Net Cost, Protect Consumers 178,977 179,929 

Strategic Goal 2: Maintain Competition:

Intragovernmental costs 44,603 42,861 

Public costs 122,125 127,038 

Gross costs, maintain competition 166,728 169,899 

Intragovernmental earned revenue (796) (918)

Public earned revenue (191,427) (236,655)

Earned revenue, maintain competition (192,223) (237,573)

Net Cost, Maintain Competition (25,495) (67,674) 

Net Cost of Operation $ 153,482 $ 112,255 

The accompanying notes are an integral part of these statements.
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 59

FINANCIAL SECTION

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(DOLLARS IN THOUSANDS)

2022 2021

Unexpended Appropriations:

Beginning balance $ 27,000 $ - 

Appropriations received 224,228 218,472 

Appropriations transferred in 1,615 - 

Appropriations used (232,022) (191,472)

Change in unexpended appropriations (6,179) 27,000

Total Unexpended Appropriations 20,821 27,000

Cumulative Results of Operations:

Beginning balance $ 186,044 $ 96,713 

Appropriations used 232,022 191,472 

Transfers in 1 - 

Imputed financing 10,634 10,131 

Other (14) (17) 

Net cost of operations (153,482) (112,255)

Change in Cumulative Results of Operations 89,161 89,331

Cumulative Results of Operations 275,205 186,044 

Net Position (Note 1(o)) $ 296,026 $ 213,044

The accompanying notes are an integral part of these statements.
60 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(DOLLARS IN THOUSANDS)

2022 2021

Budgetary Resources: 

 Unobligated balance, brought forward, October 1 $ 45,375 $ 4,969

 Recoveries of unpaid prior year obligations 7,710 8,607

 Other changes in unobligated balance 2,009 92

 Unobligated balance from prior year budget authority, net 55,094 13,668

 Appropriations 224,228 218,472

 Spending authority from offsetting collections 154,479 164,761

Total Budgetary Resources $ 433,801 $ 396,901 

Status of Budgetary Resources: 

 New obligations and upward adjustments (total) (Note 10) $ 370,346 $ 351,526

 Unobligated balance, end of year: 

 Apportioned, unexpired accounts 60,666 41,695

 Unapportioned, unexpired accounts 2,789 3,680 

 Unexpired unobligated balance, end of year 63,455 45,375

 Unobligated balance, end of year (total) 63,455 45,375

Total Budgetary Resources $ 433,801 $ 396,901

Outlays, Net: 

 Outlays, gross $ 353,507 $ 350,082

 Actual offsetting collections (206,742) (250,891)

 Outlays, net 146,765 99,191

 Distributed offsetting receipts (14,376) (8,143)

 Agency outlays, net $ 132,389 $ 91,048

The accompanying notes are an integral part of these statements.
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 61

FINANCIAL SECTION

STATEMENT OF CUSTODIAL ACTIVITY

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(DOLLARS IN THOUSANDS)

Protect 

Consumers

Maintain 

Competition 2022 2021

Revenue Activity (Note 11):

Sources of collections:

Premerger filing fees (net of refunds) $ - $ - $ - $ 16,460 

Civil penalties and fines 158,019 - 158,019 146,197 

Consumer redress 14,348 - 14,348 7,993 

Other miscellaneous receipts 13 - 13 134 

Total cash collections 172,380 - 172,380 170,784 

Accrual adjustments 158 - 158 - 

Total Custodial Revenue $ 172,538 $ - $ 172,538 $ 170,784 

Disposition of Collections (Note 11):

Transferred to others:

Treasury general fund $ 172,380 $ - $ 172,380 $ 154,324 

Department of Justice - - - 16,460 

Amounts yet to be transferred 158 - 158 - 

Total Disposition of Collections $ 172,538 $ - $ 172,538 $ 170,784

Net Custodial Activity $ - $ - $ - $ - 

The accompanying notes are an integral part of these statements.
62 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

NOTES TO THE FINANCIAL 

STATEMENTS 

NOTE 1—SIGNIFICANT ACCOUNTING 

POLICIES 

(a) Reporting Entity 

The reporting entity is a component of the U S Government 

For this reason, some of the assets and liabilities reported by 

the Federal Trade Commission (FTC) may be eliminated 

for Government-wide reporting because they are offset by 

assets and liabilities of another U S Government entity The 

financial statements should be read with the realization that 

they are for a component of the U S Government, a sovereign 

entity The accompanying financial statements and notes of 

the FTC include financial activity recorded in all funds under 

the FTC’s control The FTC maintains these funds including 

appropriations received for salaries and necessary expenses, as 

well as non-entity funds that are primarily collections derived 

from court ordered judgments and settlements held for 

subsequent distribution to approved claimants 

The FTC records and tracks financial activities using 

Treasury Account Symbols (TAS) Each TAS included in 

the agency’s fund accounting structure is described below: 

General Funds 

Salaries and Expenses (TAS 29X0100): Each year, this 

account receives budget authority from an appropriation 

and offsetting collections, up to a limit set by Congress, to 

fund necessary expenses of the agency Offsetting collections 

include fees collected for premerger notification filings under 

the Hart-Scott-Rodino (HSR) Antitrust Improvement Act 

of 1976, and fees collected for the National Do Not Call 

Registry, which operates under Section 5 of the FTC Act 

Collections in excess of congressional limits are unavailable 

by law and are included in the FTC’s unavailable – excess 

offsetting collections (See Note 3, Fund Balance with 

Treasury ) 

Salaries and Expenses (TAS 29 0100): In FY 2021, the 

FTC received an appropriation under the American Rescue 

Plan Act (ARPA) ARPA provides funding to cover cost 

increases as a result of the COVID-19 pandemic of 2020-

2022 Funding for the FTC under ARPA includes payroll 

costs, consumer education, and monitoring of consumer 

complaints received into the Consumer Sentinel Network 

ARPA funds will remain available until the end of fiscal 

year 2026 

Deposit Fund 

Consumer Redress Escrow (TAS 29X6013): This account 

consists of money collected as a result of court ordered 

judgments related to the consumer redress program and held 

temporarily by the FTC until distributed (either directly 

by the FTC or through a third-party agent) to consumers 

or harmed entities, or transferred to the General Fund 

of the U S Government Judgments imposed but not yet 

collected are accrued as accounts receivable and recorded 

in this account Accrued receivables and funds collected are 

considered non-entity assets under the FTC’s custody or 

management They do not affect the FTC’s net position and 

are not reported on the agency’s Statement of Changes in Net 

Position (See Note 3, Fund Balance with Treasury and Note 

12, Consumer Redress Activities ) For reporting purposes, 

funds held by redress third party administrators outside of 

the U S Treasury on behalf of harmed consumers are not 

part of the FTC reporting entity 

Receipt Accounts 

Fines, Penalties, and Forfeitures, Customs, Commerce, and 

Antitrust Laws (TAS 29 1040): Collections of civil penalties 

imposed in court actions for violations of antitrust acts 

and FTC orders are deposited into this account Penalties 

imposed but not yet collected are accrued as accounts 

receivable and recorded in this account The cash balance in 

the account is transferred to the General Fund of the U S 

Government at the end of each fiscal year 

General Fund Proprietary Receipts (TAS 29 3220):

Miscellaneous receipts that by law are not available for 

the FTC’s use are recorded in this account An example 

is fees collected under the Freedom of Information Act 

(FOIA) Furthermore, collections for the consumer redress 

program for which redress to consumers is not practicable 

are also recorded in this account These funds are ultimately 

disgorged to the U S Treasury The Department of the 

Treasury automatically transfers all cash balances in this 

receipt account to the General Fund of the U S Government 

at the end of each fiscal year 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 63

FINANCIAL SECTION

Clearing/Suspense Account 

Budget Clearing and Suspense (TAS 29F3875): Prior to a 

systems process change in the first quarter of FY 2021, fees 

collected for premerger notification filings under the HSR 

Act were deposited, initially, into the Budget Clearing and 

Suspense account, then distributed equally to the FTC (as an 

offsetting collection in the general fund) and the Department 

of Justice (DOJ) Premerger receipts are now split evenly 

upon collection between the FTC and the DOJ, eliminating 

the custodial activity transactions The Budget Clearing and 

Suspense account is still used to process refund payments 

to vendors (See Note 1(p), Revenues and Other Financing 

Sources ) 

(b) Basis of Presentation and Accounting 

The accompanying financial statements present the financial 

position, net cost of operations, changes in net position, 

budgetary resources, and custodial activities of the FTC, and 

have been prepared from the accounting records of the FTC 

These financial statements may differ from other financial 

reports submitted pursuant to the Office of Management and 

Budget (OMB) directives for the purpose of monitoring and 

controlling the use of the FTC’s budgetary resources 

The FTC’s financial statements are prepared in conformity 

with U S Generally Accepted Accounting Principles 

(GAAP) for federal entities, as promulgated by the Federal 

Accounting Standards Advisory Board (FASAB), and with 

OMB Circular A-136, Financial Reporting Requirements 

(as revised in June 2022) Transactions are recorded on both 

an accrual and a budgetary basis Accordingly, revenues are 

recognized when earned and expenses are recognized when 

incurred, without regard to the receipt or payment of cash 

Accrual methods of accounting may differ from budgetary 

accounting principles, primarily in the capitalization and 

depreciation of property and equipment, as well as the 

recognition of other long-term assets and liabilities The 

purpose of federal budgetary accounting is to control, 

monitor, and report on funds made available to federal 

agencies by law and help ensure compliance with the law 

Budget terms commonly used are defined in OMB Circular 

A-11, Section 20 3 Further information about budget terms 

and concepts is available in the “Budget Concepts” chapter of 

the Analytical Perspectives volume of the President’s Budget 

As described in Note 1(a), Reporting Entity, the FTC 

maintains a primary fund to account for salaries and 

operating expenses There are limited intra-entity 

transactions with any other fund (e g , deposit fund) 

that require eliminating entries to present consolidated 

statements Furthermore, the FTC does not currently have 

any funds classified as dedicated collections which require 

separate reporting under FASAB Statement of Federal 

Financial Accounting Standards (SFFAS) 43, Funds 

from Dedicated Collections Accordingly, the proprietary 

financial statements are not labeled consolidated nor is the 

Statement of Budgetary Resources (SBR) presented as 

combined FTC reconciles its intragovernmental activity 

and works with agency trading partners to reduce significant 

or material differences in conformance with U S Treasury 

intragovernmental reporting guidelines and requirements of 

OMB Circular A-136 

Assets, liabilities, revenues, and costs are classified in 

these financial statements according to the type of entity 

associated with the transactions Balances classified as 

intragovernmental arise from transactions with other federal 

entities Balances not classified as intragovernmental arise 

from transactions with individuals or organizations outside 

of the Federal Government (i e , with the public) 

The FTC presents net cost of operations by its two 

major strategic goals: Protect Consumers and Maintain 

Competition These goals are described in the agency’s 

strategic and performance plan and align with the agency’s 

major programs 

(c) Use of Estimates 

The preparation of financial statements in conformity 

with GAAP requires management to make estimates and 

assumptions that affect the reported amounts of assets 

and liabilities at the date of the financial statements and 

the reported amounts of revenues and expenses during 

the reporting period For example, estimates are used in 

computing accounts payable for vendor service contracts, 

the allowance for uncollectible accounts, and the allocation 

of costs to strategic goals in the Statement of Net Cost 

Actual results could differ from the estimated amounts 

The vendor accounts payable accrual is an estimate and is 

accrued separately from the accounts payable accruals for 

travel and interagency agreements The FTC uses statistical 
64 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

techniques to evaluate vendor accounts payable balances 

for previous fiscal years, averages the balances to obtain 

an accrual estimate, and then adjusts the estimate using a 

factor that represents the proportional change in obligations 

between the current and the previous fiscal year Every year, 

the agency statistically validates that the year-end vendor 

accounts payable accrual was reasonable The validated 

amount is subsequently used in calculating the following 

year’s estimate, which also considers any changes to invoice 

payment timeframes that may affect the vendor accounts 

payable statistical assumptions 

(d) Budget Authority 

The Congress passes appropriations annually that provide the 

FTC with authority to obligate funds for necessary expenses 

to carry out program activities These funds are available 

until expended, subject to the OMB apportionment and to 

congressional restrictions on the expenditure of funds (see 

FTC’s FY 2022 Congressional Budget Justification, pages 

5-6, “Appropriations Language Provisions”) In addition, the 

FTC places internal restrictions on fund expenditures to 

ensure the efficient and proper use of all funds The FTC’s 

budget authority is derived from direct appropriations and 

offsetting collections The FTC accounts for budget authority 

in its General Fund accounts (29X0100 and 29 0100) as 

reflected in the Statement of Budgetary Resources 

(e) Classified Activities

Accounting standards require all reporting entities to disclose 

that accounting standards allow certain presentations 

and disclosures to be modified, if needed, to prevent the 

disclosure of classified information 

(f ) Entity and Non-Entity Assets

The FTC reports on both entity and non-entity assets in the 

financial statements Assets that the agency is authorized to 

use in its operations are entity assets Assets that the agency 

holds on behalf of another federal agency or a third party 

and are not available for the FTC’s use are non-entity assets 

Non-entity assets include collections and accounts receivable 

that arise from court-order judgments for monetary relief and 

civil monetary penalties These non-entity assets are included 

in the financial statements along with offsetting non-entity 

liabilities of equal amount (See Note 2, Entity and NonEntity Assets )

(g) Fund Balance with Treasury 

Fund Balance with Treasury (FBwT) is an asset of a 

reporting entity and a liability of the General Fund of the 

U S Government Amounts reported for FBwT represent 

commitments by the federal government to provide resources 

to particular programs; however, they do not represent net 

assets to the government as a whole When a reporting 

entity seeks to use FBwT to liquidate budgetary obligations, 

Treasury will finance the disbursements with current receipts 

or borrow from the public if a deficit exists On the FTC’s 

financial statements, FBwT represents the aggregate amount 

of undisbursed funds in the FTC’s general funds, deposit 

fund, and clearing/suspense fund The general fund cash 

balance includes a portion that is available to the FTC to 

make expenditures and pay liabilities and a portion that 

is unavailable Deposit fund and clearing/suspense fund 

balances are non-entity funds that are temporarily held 

by the FTC until transferred to another federal agency or 

distributed to a third party Fund balances are carried forward 

into subsequent fiscal years until disbursements are made 

(See Note 3, Fund Balance with Treasury ) 

(h) Accounts Receivable, Net

Accounts receivable, net of allowances, reflect the FASAB 

standard for the recognition of losses using the collection 

criterion of “more likely than not” as prescribed in SFFAS 1, 

Accounting for Selected Assets and Liabilities This criterion 

results in receivable balances that are more conservatively 

stated than those valued by the private sector under GAAP 

FASAB states that it is appropriate to recognize the nature 

of federal receivables, which, unlike trade accounts of private 

firms or loans made by banks, are not created through credit 

screening procedures Rather, these receivables arise because 

of the assessment of fines from regulatory violations In these 

circumstances, historical experience and economic realities 

indicate that these types of claims are frequently not fully 

collectible Accounts receivable includes estimates of the net 

cash value from court appointed receivers for which the FTC 

anticipates the proceeds will be deposited in the Consumer 

Redress Escrow account (29X6013) 

The method used to estimate the allowance for uncollectible 

accounts consists of individual case analysis by a case 

manager who assesses the debtor’s ability and willingness 

to pay, the defendant’s payment history, and the probable 

recovery amount including the value of assets Based on 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 65

FINANCIAL SECTION

the litigation and collection status, cases may be referred to 

the Treasury for collection action (See Note 4, Accounts 

Receivable, Net ) 

(i) General Property, Plant, and Equipment 

The FTC’s property, plant, and equipment (PP&E) consists 

of general equipment used by the agency and capital 

improvements made to buildings leased from the General 

Services Administration (GSA) by the FTC for office space, 

as well as software leased and purchased from vendors The 

FTC’s capitalization policy, Accounting for Property, Plant, 

and Equipment, was updated with an effective date on or after 

October 1, 2014 PP&E placed in service prior to October 

1, 2014, will continue to be accounted for based on the 

capitalization policy in effect at the time acquired, until fully 

depreciated or removed from service 

Effective October 1, 2014, capitalization thresholds are as 

follows:

Asset Type Capitalization 

Threshold

Furniture $ 50,000

General Equipment $ 50,000

IT Equipment $ 150,000

Leasehold Improvements $ 150,000

Internal Use Software $ 200,000

The FTC reports property and equipment at historical cost 

and capitalizes acquisitions based on the above thresholds 

for items with a useful life of two or more years Property 

and equipment that meet these criteria are depreciated or 

amortized using the straight-line method over the estimated 

useful life of the asset An exception applies to leasehold 

improvements, which are amortized over the lesser of the 

useful life of the asset or the remaining lease term Assets 

under development, such as internal use software and 

leasehold improvements with an estimated aggregate cost 

meeting the threshold criteria, are capitalized and then 

amortized once completed and placed into service Normal 

repairs and maintenance, and PP&E that do not meet the 

capitalization criteria, are recognized as an expense in the 

current period (See Note 5, General Property, Plant, and 

Equipment, Net ) 

(j) Accrued Liabilities and Accounts Payable 

Accrued liabilities and accounts payable represent a probable 

future outflow or other sacrifice of resources from past 

transactions or events Liabilities are recognized when 

they are incurred, regardless of whether they are covered 

by budgetary resources The FTC has both entity and 

non-entity liabilities Entity liabilities cannot be liquidated 

without legislation that provides the resources to do so In 

addition, the government, acting in its sovereign capacity, 

can abrogate the FTC’s liabilities (other than contracts) 

Non-entity liabilities represent claims against non-entity 

assets and include undisbursed consumer redress collections, 

accrued redress amounts due to claimants, and the custodial 

liability for amounts owed to the General Fund of the U S 

Government 

(k) Employee Health Benefits and Life Insurance 

FTC employees are eligible to participate in the contributory 

Federal Employees’ Health Benefit Program (FEHBP) 

and the Federal Employees’ Group Life Insurance Program 

(FEGLIP) administered by the Office of Personnel 

Management (OPM) The FTC contributes a percentage to 

each program to pay for current benefits In accordance with 

FASAB SFFAS 5, Accounting for Liabilities of the Federal 

Government, the FTC recognizes the liability and associated 

expense for health and life insurance benefits at the time the 

employee’s services are rendered 

(l) Employee Retirement Benefits 

FTC employees participate in either the Civil Service 

Retirement System (CSRS) or the Federal Employees’ 

Retirement System (FERS) administered by the OPM 

Employees hired after December 31, 1983, are covered by 

FERS and Social Security, while employees hired prior 

to January 1, 1984, were allowed to elect joining FERS or 

remaining in CSRS For employees participating in CSRS, 

the FTC contributes 7 percent of the employee’s basic pay 

to the Civil Service Retirement and Disability Fund For 

employees participating in FERS, the FTC contributes 13 2 

percent to the Federal Employees’ Retirement Fund New 

employees hired between January 1 and December 31, 2013, 

participate in FERS-RAE (Revised Annuity Employees) 

New employees hired on or after January 1, 2014, participate 

in FERS-FRAE (Further Revised Annuity Employees) 
66 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

The FTC contributes 11 1 percent for both FERS-RAE 

and FERS-FRAE In addition, the FTC contributes 

the employer’s matching share to the Social Security 

Administration under the Federal Insurance Contributions 

Act (FICA), which fully covers FERS participating 

employees FTC contributions are recognized as current 

operating expenses 

The Thrift Savings Plan (TSP) is a defined contribution 

retirement savings and investment plan for employees covered 

by either CSRS or FERS Participating employees may 

contribute any dollar amount or percentage of basic salary to 

the TSP, not to exceed an annual dollar limit set by law In 

calendar year 2022, the annual contribution limit is $20,500 

and employees aged 50 and over may contribute an additional 

$6,500 in catch-up contributions For those employees 

participating in FERS, the FTC makes a mandatory 

1 percent contribution to this plan and, in addition, 

matches 100 percent of the first 3 percent contributed by 

employees and 50 percent of the next 2 percent of employee 

contributions CSRS-participating employees do not 

receive a matching contribution from the FTC The FTC 

contributions to the TSP are recognized as current operating 

expenses 

The FTC does not report CSRS and FERS assets, 

accumulated plan benefits, or unfunded liabilities, if any, 

applicable to its employees This information is reported 

by the OPM; however, the FTC recognizes the full cost 

of providing future pension benefits to covered employees 

at the time the employees’ services are rendered using cost 

factors provided by the OPM that estimate the true service 

cost of providing the pension benefits Contributions made 

by the FTC and its employees do not cover the full cost of 

retirement benefits The FTC recognizes the excess of the 

true service cost over amounts contributed as an imputed cost 

to achieve compliance with SFFAS 5 This additional cost is 

financed by the OPM and has no impact on the budgetary 

resources of the FTC Imputed costs are reported as expenses 

on the Statement of Net Cost with offsetting imputed 

financing sources reported on the Statement of Changes in 

Net Position (See Note 13, Reconciliation of Net Operating 

Cost and Net Budgetary Outlays ) 

(m) FECA and Other Post-Employment Benefits 

The Federal Employees’ Compensation Act (FECA) 

administered by the U S Department of Labor (DOL) 

provides income and medical cost protection to covered 

Federal civilian employees injured on the job, and employees 

who have incurred a work-related injury or occupational 

disease The DOL bills the FTC annually for the claims 

paid and the FTC recognizes the FECA liability for future 

payment Payment is deferred for two years to allow for 

funding through the budget The FTC also recognizes a 

FECA actuarial liability, which is an estimate for the future 

workers compensation as a result of past events using 

procedures developed by the DOL to estimate the liability 

FECA liabilities are reported as not covered by budgetary 

resources (See Note 6, Liabilities Not Covered by Budgetary 

Resources ) 

FTC employees eligible to participate in the FEHBP and 

the FEGLIP may continue to participate in these programs 

after their retirement The FTC recognizes a current cost of 

providing post-retirement benefits using cost factors provided 

by the OPM that estimate the true cost of providing these 

benefits to current employees The cost of providing postretirement benefits for the FEHBP and FEGLIP is financed 

by the OPM and recognized as an imputed financing source 

by the FTC (See Note 13, Reconciliation of Net Operating 

Cost and Net Budgetary Outlays ) 

(n) Annual and Sick Leave 

The FTC accrues an annual leave liability when employees 

earn leave and reduces the liability when employees take leave 

The balance in this account reflects the current leave balances 

and pay rates of the FTC employees Budget execution rules 

do not allow this liability to be funded as earned The liability 

is funded when leave is taken or when paid out as a lump sum 

at the end of employment As a result, accrued annual leave 

is reported as not covered by budgetary resources Sick leave 

is non-vested and expensed as used (See Note 6, Liabilities 

Not Covered by Budgetary Resources ) 

(o) Net Position 

The portion of the FTC’s budget authority funded by its 

no-year direct appropriation is fully expended during the 

year Therefore, the remaining unexpended appropriation 

balance in net position at the end of the fiscal year reflects the 

unspent ARPA funds 

Cumulative results of operations represent the net results 

of operations since the agency’s inception, the cumulative 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 67

FINANCIAL SECTION

amount of prior period adjustments, the remaining net book 

value of capitalized assets, and future funding requirements 

(See Statement of Changes in Net Position ) 

(p) Revenues and Other Financing Sources 

As a component of the Government-wide reporting entity, 

the FTC is subject to the federal budget process, which 

involves annual appropriations The financial transactions 

that are supported by budgetary resources, which include 

appropriations, are generally the same transactions reflected 

in agency and Government-wide financial reports In 

addition to an annual appropriation provided by the 

Congress, the FTC’s activities are financed through exchange 

revenues it receives from others Intragovernmental exchange 

revenues arise from reimbursable transactions with other 

federal entities The FTC provides consulting and technical 

assistance aimed at developing sound competition policies 

under interagency agreements Reimbursable revenue is 

recognized as expenses are incurred 

The majority of the FTC’s exchange revenues are from the 

public, consisting of fees collected for premerger notification 

filings under the HSR Act and fees collected for the National 

Do Not Call (DNC) Registry The HSR Act establishes 

a waiting period before mergers, acquisitions, or transfers 

of assets that meet or exceed certain thresholds may be 

completed Entities must file premerger notifications with 

the FTC and the Antitrust Division of the DOJ HSR fees 

are split equally between the FTC and the DOJ with fees 

determined by the values and sizes of involved parties As 

mandated by an amendment to the Clayton Act, the FTC 

revises the jurisdictional threshold requirements annually 

based on the change in gross national product The DNC 

Registry Fee Extension Act of 2007 established a permanent 

fee structure for the DNC registry and provides that fees be 

reviewed annually and adjusted for inflation, as appropriate 

Telemarketers must pay an annual subscription fee and 

download a list of telephone numbers of consumers who do 

not wish to receive calls Fees are based on the number of area 

codes downloaded Revenues for both HSR and DNC fees 

are recognized upon collection 

The reporting entity’s budgetary resources reflect past 

congressional action and enable the entity to incur budgetary 

obligations, but they do not reflect assets to the federal 

government as a whole Budgetary obligations are legal 

obligations for goods, services, or amounts to be paid based 

on statutory provisions After budgetary obligations are 

incurred, Treasury will make disbursements to liquidate the 

budgetary obligations and finance those disbursements in the 

same way it finances all disbursements, which, is to borrow 

from the public if there is a budget deficit 

(q) Methodology for Assigning Costs and Exchange 

Revenues 

The FTC allocates costs and exchange revenues on the 

Statement of Net Cost to its two major strategic goals: 

Protect Consumers and Maintain Competition Costs and 

exchange revenues that are identified specifically with each 

of these two strategic goals are charged or credited directly 

Costs not directly attributable to these two goals, including 

costs related to the FTC’s third goal, Advance Performance, 

are allocated based on the percentage of dollars directly 

traceable to each of these two goals 
68 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

NOTE 2—ENTITY AND NON-ENTITY 

ASSETS 

The FTC’s entity assets are comprised of undisbursed general 

funds; accounts receivable; advances and prepayments; 

and property, plant, and equipment Accounts receivable, 

net, represents amounts due from other Federal agencies, 

current and former employees, and vendors Advances and 

prepayments include amounts paid to the Department 

of Transportation for transit subsidies on behalf of FTC 

employees as well as amounts paid to the Department of 

Defense for employee background investigations The FTC’s 

non-entity assets include fund balance with Treasury and 

accounts receivable The fund balance with Treasury consists 

of amounts held temporarily in a deposit fund pending 

disbursement to harmed consumers for redress Accounts 

receivable, net, is the estimated amount collectible on 

consumer redress judgments and civil penalties 

Entity and non-entity assets consisted of the following as of September 30, 2022: 

(Dollars in thousands) 2022

Entity

2022

Non-Entity

2022

Total

Intragovernmental:

 Fund balance with Treasury:

 General funds $ 312,041 $ - $ 312,041

 Deposit funds - consumer redress - 204,704 204,704

 Accounts receivable, net 6 - 6

 Advances and Prepayments 7 - 7

Total intragovernmental assets 312,054 204,704 516,758

 Accounts receivable, net 41 45,134 45,175

 Property, plant and equipment, net 19,643 - 19,643

Total Assets $ 331,738 $ 249,838 $ 581,576

Entity and non-entity assets consisted of the following as of September 30, 2021: 

(Dollars in thousands) 2021

Entity

2021

Non-Entity

2021

Total

Intragovernmental:

 Fund balance with Treasury:

 General funds $ 232,678 $ - $ 232,678

 Deposit funds - consumer redress - 384,821 384,821

 Accounts receivable, net 32 - 3

 Advances and Prepayments 6 - 6

Total intragovernmental assets 232,716 384,821 617,537

 Accounts receivable, net 50 51,116 51,166

 Property, plant and equipment, net 22,262 - 22,262

Total Assets $ 255,028 $ 435,937 $ 690,965
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 69

FINANCIAL SECTION

NOTE 3—FUND BALANCE WITH 

TREASURY 

There are no material differences between amounts reported 

by the FTC and those reported to U S Treasury as of 

September 30, 2022, and 2021 In terms of the relationship 

to the budget, the FTC’s Fund balance with Treasury 

(FBwT) consists of undisbursed appropriated funds, which 

are either unobligated or obligated, as well as non-budgetary 

deposit funds arising from amounts collected for consumer 

redress and not yet disbursed to disbursing agents or 

directly to claimants The unobligated balance includes both 

available and unavailable balances The higher unobligated 

balance available is primarily attributable to an increase 

in the agency’s direct appropriation, from $351 million 

in FY 2021 to $376 5 million in FY 2022 The FY 2021 

unobligated balance available consists primarily of the ARPA 

appropriation of $30 4 million, of which $17 4 million 

remains unobligated at the end of FY 2022 

The large increase in Unavailable – Excess Offsetting 

Collections is due to HSR Premerger fees collected during 

FY 2022 in excess of the congressional authorized amount 

Under the FTC statutory authorities, the agency is permitted 

to retain a specified amount of offsetting collections to use 

for the necessary expenses of its direct appropriation For 

FY 2022, the maximum amount is $138 million, and the 

agency collected $191 4 million in HSR Premerger filing fees 

Excess HSR collections are reported as offsetting collections 

temporarily precluded from obligation as the funds may not 

be spent without approval from the OMB The volume of 

Premerger filings has declined by 12 percent from the prior 

year but remains above historical averages The unavailableunapportioned balance is the result of recoveries of prior-year 

obligations that exceed apportioned amounts The unavailable 

- temporary reduction of $6,450 thousand consists of $5,418 

thousand HSR Premerger and $1,032 thousand National 

Do Not Call Registry offsetting collections sequestered from 

FY 2013 

Fund balance with Treasury consisted of the following as of September 30, 2022 and 2021:

(Dollars in thousands) 2022 2021

Status of Fund Balance with Treasury:

 Unobligated balance:

 Available - apportioned $ 60,666 $ 41,695 

 Unavailable - unapportioned 2,789 3,680

 Unavailable - excess offsetting collections 166,072 112,651 

 Unavailable - temporary reduction 6,450 6,450

 Total Unobligated balance: 235,977 164,476 

 Obligated balance not yet disbursed 76,064 68,202 

 Non-budgetary fund balance with Treasury 204,704 384,821 

Total Status of Fund Balance with Treasury $ 516,745 $ 617,499
70 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

NOTE 4—ACCOUNTS RECEIVABLE, NET 

The majority of the FTC’s accounts receivable are non-entity 

accounts receivable arising from the settlement or litigation of 

administrative and federal court cases in connection with the 

consumer redress program, and from civil monetary penalties 

imposed for violation of an FTC order and/or antitrust acts 

Because of the nature of these receivables, they are frequently 

not fully collectible and are offset with a significant allowance 

The allowance for uncollectible accounts is based on an 

analysis by a case manager who assesses the debtor’s ability 

and willingness to pay, the defendant’s payment history, 

and the probable recovery amount including the value of 

assets These non-entity accounts receivable are included 

in the financial statements along with offsetting non-entity 

liabilities 

Non-entity redress gross accounts receivable is the court 

ordered judgment amount, usually a calculated amount of 

ill-gotten gains by the defendant(s) The large decline in 

the gross accounts receivable balance is primarily due to a 

vacated judgment of $805 million against payday lender 

AMG Services, Inc Net interest and the related allowance 

for doubtful accounts balance was recorded as of September 

30, 2022 Accumulated unrecognized interest on receivables 

deemed uncollectible totaled $44,526 thousand and $41,886 

thousand as of September 30, 2022, and 2021 

Accounts receivable, net consisted of the following as of September 30, 2022:

(Dollars in thousands) Gross

Receivables 

Allowance for

Uncollectible

Accounts 

 2022 Net

 Entity Accounts Receivable: 

 Intragovernmental $ 6 $ - $ 6 

 With the public 41 - 41 

 Total entity accounts receivable 47 - 47 

 Non-Entity Accounts Receivable: 

 Consumer redress 1,347,604 (1,302,628) 44,976 

 Civil penalties 158 - 158 

 Total non-entity accounts receivable 1,347,762 (1,302,628) 45,134

Total Accounts Receivable $ 1,347,809 $ (1,302,628) $ 45,181 

Accounts receivable, net consisted of the following as of September 30, 2021:

(Dollars in thousands) Gross

Receivables 

Allowance for

Uncollectible

Accounts 

 2021 Net

 Entity Accounts Receivable: 

 Intragovernmental $ 32 $ - $ 32 

 With the public 50 - 50 

 Total entity accounts receivable 82 - 82 

 Non-Entity Accounts Receivable: 

 Consumer redress 2,403,071 (2,351,955) 51,116 

 Civil penalties - - - 

 Total non-entity accounts receivable 2,403,071 (2,351,955) 51,116 

Total Accounts Receivable $ 2,403,153 $ (2,351,955) $ 51,198
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 71

FINANCIAL SECTION

NOTE 5—GENERAL PROPERTY, PLANT, 

AND EQUIPMENT, NET 

The following represents the FTC’s capital assets and 

accumulated depreciation as of September 30, 2022, and 

2021 No asset impairments were recognized in either year 

The net book value of capitalized assets has declined from 

the previous fiscal year as a result of continual depreciation 

and amortization expenses Current year depreciation and 

amortization expense is $3,742 thousand, as presented in 

Note 13 “Reconciliation of Net Operating Cost and Net 

Budgetary Outlays ” Asset purchases have increased from 

$461 thousand in FY 2021 to $1,189 thousand in FY 2022, 

as reflected in the higher balance for acquisition value The 

majority of capitalized purchases for FY 2022 consists of 

leasehold improvements associated with the relocation of the 

San Francisco field office 

Property, plant, and equipment, net consisted of the following as of September 30, 2022:

Asset Class

(Dollars in thousands)

Service 

Life

Acquisition 

Value

Accumulated 

Depreciation/

Amortization

Net 

Book Value

Equipment 5-20 Years $ 20,620 $ (19,658) $ 962 

Leasehold improvements 15 Years 47,317 (29,191) 18,126 

Software 5 Years 18,064 (17,509) 555 

Total Property, Plant, and Equipment $ 86,001 $ (66,358) $ 19,643 

Property, plant, and equipment, net consisted of the following as of September 30, 2021:

Asset Class

(Dollars in thousands)

Service 

Life

Acquisition 

Value

Accumulated 

Depreciation/

Amortization

Net 

Book Value

Equipment 5-20 Years $ 20,361 $ (19,515) $ 846 

Leasehold improvements 15 Years 46,959 (26,360) 20,599 

Software 5 Years 18,064 (17,247) 817 

Total Property, Plant, and Equipment $ 85,384 $ (63,122) $ 22,262 
72 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

NOTE 6—LIABILITIES NOT COVERED BY 

BUDGETARY RESOURCES 

The FTC recognizes two categories of liabilities not covered 

by budgetary resources described below: 

Liabilities not Covered by Budgetary Resources 

Liabilities not covered by budgetary resources require future 

congressional action whereas liabilities covered by budgetary 

resources reflect prior congressional action Regardless of 

when the Congressional action occurs, when the liabilities 

are liquidated, Treasury will finance the liquidation in the 

same way that it finances all other disbursements, which 

is to use current receipts in the event of a budget surplus 

or borrow from the public in the event of a budget deficit 

These liabilities include unfunded FECA liabilities, accrued 

annual leave, and fees owed to other federal agencies In FY 

2022, the FTC received funding for information technology 

enhancements through GSA’s Technology Modernization 

Fund (TMF) with a requirement to repay a portion of the 

monies back to GSA in fiscal years 2023 and 2024 

Liabilities Not Requiring Budgetary Resources 

Liabilities that do not require the use of budgetary resources 

are covered by monetary assets that are not budgetary 

resources to the entity (non-entity assets) These include: 

Accrued Civil Penalties due to Treasury - offsetting liability 

to non-entity accounts receivable for civil penalties, net, that 

upon collection will be payable to the General Fund of the 

U S Government 

Undisbursed Redress Collections - offsetting liability to the 

non-entity deposit fund balance for consumer redress that is 

payable to approved claimants 

Accrued Redress due to Claimants - offsetting liability to 

the non-entity accounts receivable for consumer redress that 

upon collection will be payable to approved claimants 

Liabilities Not Covered by Budgetary Resources consisted of the following as of September 30, 2022

(Dollars in thousands) Not Covered by Budgetary 

Resources

Not Requiring Budgetary 

Resources FY 2022 Total

Intragovernmental Liabilities:

FECA liability $ 49 $ - $ 49

Fees owed under Interagency agreements 285 - 285

Accrued civil penalties and receipts due to treasury - 158 158

Total Intragovernmental Liabilities 334 158 492 

Non-Federal Liabilities:

Accrued leave 16,774 - 16,774 

Actuarial FECA 810 - 810 

Undisbursed redress collections - 204,704 204,704 

Accrued redress due to claimants - 44,976 44,976 

Total Non-Federal Liabilities 17,584 249,680 267,264 

Total Unfunded Liabilities 17,918 249,838 267,756 

Liabilities Covered by Budgetary Resources 17,794 

Total Liabilities $ 285,550

Liabilities Not Covered by Budgetary Resources consisted of the following as of September 30, 2021:

(Dollars in thousands) Not Covered by Budgetary 

Resources

Not Requiring Budgetary 

Resources FY 2021 Total

Intragovernmental Liabilities:

FECA liability $ 170 $ - $ 170 

Fees owed under Interagency agreements - - - 

Accrued civil penalties and receipts due to treasury - - - 

Total Intragovernmental Liabilities 170 - 170 

Non-Federal Liabilities:

Accrued leave 17,294 - 17,294 

Actuarial FECA 1,966 - 1,966 

Undisbursed redress collections - 384,821 384,821 

Accrued redress due to claimants - 51,116 51,116 

Total Non-Federal Liabilities 19,260 435,937 455,197 

Total Unfunded Liabilities 19,430 435,937 455,367 

Liabilities Covered by Budgetary Resources 22,554 

Total Liabilities $ 477,921 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 73

FINANCIAL SECTION

NOTE 7 – OTHER LIABILITIES 

As of September 30, 2022, and 2021, components 

of amounts reported on the Balance Sheet as Other 

Intragovernmental Liabilities and Other Liabilities (Other 

Than Intragovernmental) are presented below FECA 

liabilities are long-term in nature and are not funded with 

budgetary resources while accrued employee benefits and 

accrued funded payroll and leave are covered by budgetary 

resources For Government-wide reporting, the liabilities 

for Accrued Redress Due to Claimants and Undisbursed 

Redress Collections are reported as Other Liabilities in the 

Financial Report of the U S Government Because these 

liabilities are material to the FTC, they are displayed as 

separate line-items on the agency’s Balance Sheet (See Note 

6, Liabilities Not Covered by Budgetary Resources )

Other Liabilities consisted of the following as of September 30, 2022 and 2021:

(Dollars in thousands) 2022 2021

Intragovernmental liabilities:

 Accrued employee benefits $ 1,012 $ 2,583

 FECA liability 49 170 

 Fees owed under interagency agreements 285 - 

 Accrued civil penalties and receipts due to treasury 158 - 

Total intragovernmental liabilities 1,504 2,753

Other than intragovernmental liabilities:

 Accrued funded payroll and leave 3,446 9,092

 Unfunded accrued annual leave 16,774 17,293

 Actuarial FECA 810 1,966 

Total other than intragovernmental liabilities 21,030 28,351 

Total Other Liabilities $ 22,534 $ 31,104
74 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

NOTE 8—LEASES 

Leases of government-owned and commercial-owned 

property are made through and managed by the GSA While 

leases with the GSA are cancellable, the FTC’s intention is 

to stay in the GSA leased space and disclose the amounts 

that will be paid in the future to the GSA undersigned 

lease agreements The FTC currently leases spaces from 

four government-owned properties and seven commercial 

properties totaling approximately 590 thousand square 

feet for use as offices, storage, and parking The FTC’s 

government leases expire on various dates through 2029, 

while the commercial leases expire at various dates through 

2033 Future minimum lease payments owed to GSA on 

contracts for space with remaining terms in excess of one year 

are presented in the tables below 

Future minimum lease payments due under leases of government-owned property for 

the fiscal year ended September 30, 2022:

Fiscal Year 2022

(Dollars in thousands)

2023 $ 8,084

2024 8,096

2025 8,108

2026 8,121 

2027 8,093

Thereafter 15,220 

Total Future Minimum Lease Payments $ 55,722 

Future minimum lease payments due under leases of commercial-owned property for 

the fiscal year ended September 30, 2022:

Fiscal Year 2022

(Dollars in thousands)

2023 $ 14,860 

2024 7,460 

2025 2,164 

2026 1,821 

2027 1,746 

Thereafter 4,292

Total Future Minimum Lease Payments $ 32,343

In addition, the FTC is committed under short-term lease 

agreements with commercial vendors for parking and 

telecommunications equipment Total short-term lease 

obligations are $2,609 thousand as of September 30, 2022, 

and these contracts expire in fiscal years 2023 through 2027 

with options to renew 

NOTE 9—INTER-ENTITY COSTS 

Goods and services may be received from other federal 

entities at no cost or at a cost less than the full cost to the 

providing federal entity In accordance with accounting 

standards, certain costs of the providing federal entity that are 

not fully reimbursed are recognized as imputed costs in the 

Statement of Net Cost and are offset by imputed financing 

sources in the Statement of Changes in Net Position Such 

imputed costs and financing sources relate to employee 

benefits paid by the OPM No other unreimbursed costs 

of goods and services are included in the FTC’s financial 

statements as imputed costs and imputed financing sources 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 75

FINANCIAL SECTION

NOTE 10—STATEMENT OF BUDGETARY RESOURCES 

In addition to future minimum lease payments discussed in Note 8, the FTC is committed under obligations for goods and 

services that have been ordered but not yet received Aggregate undelivered orders are presented in the table below 

Undelivered obligations consisted of the following as of September 30, 2022 and 2021:

(Dollars in thousands) 2022 2021

Non-Federal Undelivered Orders Unpaid $ 53,326 $ 40,374

Non-Federal Undelivered Orders Paid - -

Total Non-Federal Undelivered Orders 53,326 40,374

Federal Undelivered Orders Unpaid 7,413 6,478 

Federal Undelivered Orders Paid 7 6 

Total Federal Undelivered Orders 7,420 6,484 

Total Undelivered Orders $ 60,746 $ 46,858 

The Budget of the United States Government (President’s Budget) contains budget proposals for the upcoming fiscal year along 

with forecasted results for the current fiscal year and actual results for the previous fiscal year The most current version of the 

President’s Budget is the FY 2023 President’s Budget, which contains FY 2021 actual results Detailed information on the FTC 

is available in the Appendix to the President’s Budget under Other Independent Agencies There are no material differences 

between amounts reported in the FY 2021 Statement of Budgetary Resources and the FY 2021 actual amounts as reported 

in the FY 2023 President’s Budget; however, the Statement of Budgetary Resources includes Distributed Offsetting Receipts, 

which are excluded from the President’s Budget The FY 2024 Budget of the United States Government is not available to 

compare FY 2022 actual amounts to the FY 2022 Statement of Budgetary Resources The expected availability for this report is 

February 2023 on the OMB’s website 

NOTE 11—CUSTODIAL ACTIVITIES 

The primary custodial activities of the FTC are: 

Premerger Filing Fees 

Fees collected for premerger notification filings under the 

HSR Act are divided evenly between the FTC and the 

DOJ In FY 2021, the FTC implemented a new collection 

process for the Premerger filing fees Collections are now 

split evenly between the FTC and the DOJ upon receipt 

Under the previous method, the FTC collected the full 

amount and remitted half to the DOJ, which resulted in 

a custodial liability and custodial transfers A total of $16 

million in Premerger fees were processed on behalf of the 

DOJ at the start of fiscal year 2021 before the process change 

was implemented As of September 30, 2022 and 2021, the 

FTC collected $191,420 and $236,648 thousand in HSR 

premerger filing fees The volume of premerger filings has 

been above average in both FY 2022 and FY 2021 following 

a slowdown in FY 2020 that resulted from the COVID-19 

pandemic 

Civil Penalties 

Civil monetary penalties and antitrust violations collected 

in connection with the settlement or litigation of the FTC’s 

administrative or Federal court cases are collected by either 

the FTC or the DOJ as provided by law In those situations 

where the FTC collects the penalties, the funds are deposited 

in a receipt account with the Treasury Civil penalties 

collected also include amounts collected for undecided civil 

penalty cases that are held until final disposition of the cases 

All civil penalties collected are transferred to the General 

Fund of the U S Government at the end of the fiscal year 

In FY 2022, the FTC collected $145 million from Twitter 

for deceptively using account security data to sell targeted 
76 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

ads to its users In FY 2021, DISH Network paid a penalty 

of $122 million for violations of the Telemarketing Sales 

Rule and Telephone Consumer Protection Act Also in FY 

2021, Vivint Smart Home, Inc paid a $15 million penalty 

for misusing credit reports to allow unqualified customers 

to obtain financing in order to purchase its products and 

services 

Consumer Redress 

Collections for consumer redress reported on the Statement 

of Custodial Activity are limited to those collections that 

have been disgorged to the Treasury Net disgorgements to 

the Treasury were $14,348 thousand as of September 30, 

2022 and $7,993 thousand as of September 30, 2021 

Other line items on the Statement of Custodial Activity 

include: 

Accrual Adjustments and Amounts Yet to Be Transferred 

Accrual adjustments represent the change in accounts 

receivable, net of allowances for uncollectible accounts, for 

civil penalties assessed in court actions Amounts yet to be 

transferred represent the change in the offsetting liability for 

civil penalties due to Treasury that is established at the time 

an accounts receivable for civil penalties is recorded 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 77

FINANCIAL SECTION

NOTE 12—CONSUMER REDRESS 

ACTIVITIES 

The FTC obtains funds for consumer redress in connection 

with the settlement or litigation of both administrative 

proceedings and Federal court cases The FTC holds redress 

funds in a deposit fund at Treasury until a determination 

is made on the practicability of redress The FTC attempts 

to distribute funds to injured parties whenever possible 

If redress is determined to be practicable, funds are either 

directly disbursed by the FTC to claimants or are transferred 

to accounts at financial institutions from which redress third 

party administrators process claims and disburse proceeds to 

injured parties Disbursements to claimants and third-party 

administrators totaled $325,056 and $453,345 thousand as 

of September 30, 2022, and 2021 

In those cases where consumer redress is not practicable, 

funds are transferred (disgorged) to the Treasury, or on 

occasion, used for consumer education or another purpose 

as directed by the final order issued by the court Major 

components of the redress program include eligibility 

determination, claimant notification, and administration of 

redress to claimants 

Redress fund activities consisted of the following for the fiscal years ended September 30, 2022 and 2021:

(Dollars in thousands) 2022 2021

Consumer Redress:

Fund Balance with Treasury

Beginning balance $ 384,821 $ 677,109 

Collections 159,287 169,050 

Disbursements to claimants and third party administrators for 

redress, net (325,056) (453,345)

Disgorgements to Treasury, net (14,348) (7,993)

Total Fund Balance with Treasury, Ending $ 204,704 $ 384,821 

Accounts Receivable, Net

Beginning balance $ 51,116 $ 628,026 

Net activity (6,140) (576,910) 

Total Accounts Receivable, Ending $ 44,976 $ 51,116 
78 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

FINANCIAL SECTION

NOTE 13 — RECONCILIATION OF NET 

OPERATING COST AND NET BUDGETARY 

OUTLAYS 

In accordance with the requirements of SFFAS 7, Accounting 

for Revenue and Other Financing Sources, as amended by 

SFFAS 53, Budget and Accrual Reconciliation, the schedules 

presented below bridge the gap between the net operating 

costs presented on the Statement of Net Cost and the net 

outlays presented on the Statement of Budgetary Resources 

for the fiscal years ended September 30, 2022, and 2021 Net 

cost is calculated on an accrual basis while net outlays consist 

of the receipt and use of cash from a budgetary basis This 

reconciliation assures the integrity of relationships between 

proprietary and budgetary accounting 

Reconciliation of Net Operating Cost and Net Budgetary Outlays for the Year Ended September 30, 2022:

(Dollars in thousands)

FY 2022

Intragovernmental With the Public Total

Net Operating Cost (SNC) $ 95,450 $ 58,032 $ 153,482 

Components of Net Operating Cost Not Part of the Budgetary Outlays

Depreciation and Amortization - (3,742) (3,742)

Losses on Asset Dispositions - (66) (66)

Increase/(Decrease) in Assets (25) (9) (34)

(Increase)/Decrease in Liabilities 1,710 4,846 6,556

Imputed Costs (10,634) - (10,634)

Total Components of Net Operating Cost Not Part of the Budgetary Outlays (8,949) 1,029 (7,920)

Components of Budgetary Outlays Not Part of Net Operating Cost

Purchases of Assets - 1,189 1,189 

Transfers Out (in) Without Reimbursement (1) - (1)

Total Components of Budgetary Outlays Not Part of Net Operating Cost (1) 1,189 1,188

Other Reconciling Items

Miscellaneous Receipts - (14,361) (14,361)

Total Other Reconciling Items - (14,361) (14,361) 

Net Outlays (Calculated) $ 86,500 $ 45,889 $ 132,389

Budgetary Agency Outlays, Net - Statement of Budgetary Resources $ 132,389 

Reconciliation of Net Operating Cost and Net Budgetary Outlays for the Year Ended September 30, 2021:

(Dollars in thousands)

FY 2021

Intragovernmental With the Public Total

Net Operating Cost (SNC) $ 90,398 $ 21,857 $ 112,255 

Components of Net Operating Cost Not Part of the Budgetary Outlays

Depreciation and Amortization - (3,803) (3,803)

Losses on Asset Dispositions - - -

Increase/(Decrease) in Assets (185) 28 (157)

(Increase)/Decrease in Liabilities (485) 1,035 550

Imputed Costs (10,131) - (10,131)

Total Components of Net Operating Cost Not Part of the Budgetary Outlays (10,801) (2,740) (13,541)

Components of Budgetary Outlays Not Part of Net Operating Cost

Purchases of Assets 417 44 461 

Transfers Out (in) Without Reimbursement - - -

Total Components of Budgetary Outlays Not Part of Net Operating Cost 417 44 461

Other Reconciling Items

Miscellaneous Receipts - (8,127) (8,127)

Total Other Reconciling Items - (8,127) (8,127) 

Net Outlays (Calculated) $ 80,014 $ 11,034 $ 91,048

Budgetary Agency Outlays, Net - Statement of Budgetary Resources $ 91,048 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 79

FINANCIAL SECTION

NOTE 14 — COVID-19 ACTIVITY 

In FY 2021, the FTC received an appropriation of $30,400 

thousand through the American Rescue Plan Act (ARPA), 

signed into law by President Biden on March 11, 2021 This 

appropriation authorizes funding for the FTC to cover higher 

costs associated with the COVID-19 pandemic to include: 

$24,000 thousand for payroll expenses, $4,400 thousand for 

processing and monitoring of consumer complaints received 

through the Consumer Sentinel Network, and $2,000 

thousand for consumer-related education From the second 

half of fiscal year 2021 through the end of fiscal year 2022, 

the FTC has incurred $13,040 thousand of obligations for 

payroll expenses and management and professional support 

services in support of these initiatives to combat the rising 

costs of the agency due to COVID-19 ARPA funds are 

available through the end of FY 2026 Summarized financial 

information is provided below 

Summarized COVID-19 financial activity for the fiscal years ended September 30, 2022 and 2021:

(Dollars in thousands) 2022 2021

Total Assets $ 19,206 $ 27,000

Total Liabilities - -

Net Operating Results (7,794) (3,400)

Appropriations Used 7,794 3,400

Unexpended Appropriations 19,206 27,000 

Budgetary Resources $ 26,010 $ 30,400

Obligations Incurred 8,650 4,390 

Unobligated Balance 17,360 26,010

Net Outlays $ 7,794 $ 3,400 

O T H E R 

INFORMATION
82 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

OTHER INFORMATION

SUMMARY OF FINANCIAL STATEMENT AUDIT AND MANAGEMENT 

ASSURANCES

TABLE 1: SUMMARY OF FINANCIAL STATEMENT AUDIT

Audit Opinion Unmodified

Restatement No

Material Weaknesses Beginning 

Balance New Resolved Consolidated Ending Balance

0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0

TABLE 2: SUMMARY OF MANAGEMENT ASSURANCES

Effectiveness of Internal Control Over Financial Reporting 

(Federal Managers’ Financial Integrity Act (FMFIA) Para. 2)

Statement of Assurance Unmodified

Material Weaknesses Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance

0 0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0 0

Effectiveness of Internal Control Over Operations (FMFIA Para. 2)

Statement of Assurance Unmodified

Material Weaknesses Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance

0 0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0 0

Conformance with Financial Management System Requirements (FMFIA Para. 4)

Statement of Assurance Systems conform to financial management system requirements

Non-Conformances Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance

0 0 0 0 0 0

Total Non-Conformances 0 0 0 0 0 0

Compliance with Section 803(a) of the Federal Financial Management Improvement Act (FFMIA) 

Federal Trade Commission Auditor

1. Federal Financial Management System 

Requirements No lack of compliance noted No lack of compliance noted

2. Applicable Federal Accounting Standards No lack of compliance noted No lack of compliance noted

3. USSGL at Transaction Level No lack of compliance noted No lack of compliance noted
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 83

OTHER INFORMATION

Summary of the Top Management and 

Performance Challenges Identified by the 

Office of Inspector General

As required by the Reports Consolidation Act of 2000, the OIG has identified the following issues as the most 

serious management and performance challenges facing the FTC.1

1. Securing Information Systems and Networks from Destruction, Data Loss, or Compromise 

Guarding information technology (IT) systems remains a priority for the FTC. In response to increased reports of 

cybersecurity incidents in the federal government, the FY 2021 IG Federal Information Security Modernization 

Act of 2014 (FISMA) reporting metrics included a new domain on supply chain risk management. Additionally, 

a January 2022 Office of Management and Budget memorandum sets forth a federal zero trust architecture 

strategy, requiring agencies to meet specific cybersecurity standards and objectives by the end of FY 2024. 

Addressing these new challenges—as well as areas for improvement that we identified in the FY 2021 FISMA 

report— will help the FTC better ensure that its data and information are properly protected. 

FTC Progress in Addressing the Challenge. FTC management reported executing corrective actions for the four 

areas of improvement identified in the FY 2021 FISMA audit report. In addition, agency management informed the 

OIG that it executed other corrective actions addressing four penetration testing observations cited in the report. 

2. Seeking Monetary Relief for Consumers 

The FTC continues to grapple with how to obtain relief effectively for consumers following last year’s Supreme 

Court decision in AMG Capital Management, LLC v. FTC, 593 U.S. __, 141 S. Ct. 1341 (2021). The decision 

stripped federal courts of the authority—which they had been exercising for more than 4 decades—to award 

equitable monetary relief to consumers when the FTC obtains a permanent injunction in federal court pursuant 

to FTC Act Section 13(b), 15 U.S.C. § 53(b). The inability to seek equitable monetary relief via Section 13(b) is 

expected to impact the FTC’s ability to secure monetary relief for consumers. In 2022, legal challenges to agency 

administrative processes have further complicated the agency’s ability to rely on its administrative process to 

obtain refunds for harmed consumers. 

FTC Progress in Addressing the Challenge. Since we first raised this challenge in our FY 2021 TMC, several 

bills have been introduced to restore the FTC’s ability to secure equitable monetary relief via Section 13(b). 

The FTC also indicates that it has turned to using alternative remedial authorities, such as the Penalty Offense 

Authority, as well as pursued rulemaking, including proposing a major expansion of the Telemarketing Sales 

Rule and finalizing the Made in the USA Rule. In addition, the Commission reports initiating rulemakings 

around auto sales, impersonator fraud, and false earnings claims. 

3. Successfully Managing the Volume of Merger Transactions 

How the FTC can most efficiently and effectively manage its workload related to the Hart-Scott-Rodino 

Antitrust Improvements Act of 1976 (HSR Act)—and the difficulties encountered by Bureau of Competition 

(BC) attorneys charged with reviewing reported HSR transactions—has grown into one of the agency’s top 

management challenges. Despite the agency’s efforts in fielding an increased volume of submissions—whose 

growth seems to have stabilized after last year’s increases, but whose size represents a substantially greater 

workload than pre-pandemic years—the FTC faces challenges in strategizing the most efficient and effective 

response. 

FTC Progress in Addressing the Challenge. To address the volume of merger work and the significant staff 

challenges that it poses, BC has described to the OIG how it closely tracks all incoming HSR filings and 

commits weekly triage efforts to ensure that resources are allocated to the most troublesome transactions—and 

accommodate strict HSR statutory deadlines. In addition, management has reported engaging in lateral hiring to 

the greatest extent allowed, given the agency’s current budget constraints, as well as utilizing and reprioritizing 

available resources across the agency to support BC’s competition investigations and litigation. 
84 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

OTHER INFORMATION

4. Controlling Expert Witness Costs

Since 2017, the FTC has included expensive expert witness contracts as a “top risk” on its risk register. A 

major component of the agency’s litigation costs, these contracts will likely remain a top risk in FY 2023 and 

beyond. The complexity of its cases, which necessitates expert witness services, contributes significantly to the 

challenge. Through FY 2022, the FTC’s litigation activity required spending on expert witness costs that exceeded 

available budgeted resources—potentially threatening the agency’s ability to challenge meritorious cases. And the 

unpredictable nature of agency investigations, Commission decisions, and the response of parties to FTC matters 

continue to challenge the agency’s ability to anticipate expert witness costs accurately. 

FTC Progress in Addressing the Challenge. One way the agency addresses its expert witness challenge is by 

leveraging internal expertise when possible. In addition, the FTC’s FY 2023 Congressional Budget Justification 

included a requested increase of $15 million to meet the projected costs of BC expert witness contracts. Lastly, 

by increasing the frequency of its expert witness cost projections to twice monthly, BC management has gained 

greater insight into how to prioritize resources. 

5. Managing Records and Sensitive Agency Information 

In last year’s TMC report, we highlighted on our “Agency Watch List” concerns about the FTC’s data controls. 

Two of our FY 2020 audit reports on agency programs—the Bureau of Consumer Protection’s redress program 

and the Personnel Security Office’s Personnel Security and Suitability Program—conveyed findings concerning 

the collection, organization, and standardization of data. In addition, an FY 2021 OIG management advisory on 

controls over the agency’s sensitive data discussed FTC employees’ access to, and lack of effective training about, 

nonpublic information. As a result, we have elevated the issue to the level of a management and performance 

challenge. 

FTC Progress in Addressing the Challenge. The agency has reported taking several actions to address concerns 

regarding employee training about sensitive information and staff access to nonpublic information—including 

updates of trainings, Rules of Behavior regarding devices, and restrictions on forwarding weekly email reports. 

Notably, the Chair issued communication stressing the importance of protecting nonpublic information and 

reinforcing the renewed training efforts. The agency also reported completing several initiatives in its efforts to 

modernize recordkeeping and make records management progressively more integral to agency operations. 

Watch List Item

The OIG also maintains a “watch list,” currently with one issue that does not meet the threshold of a serious management or performance challenge—but nevertheless warrants the vigilant attention of agency officials. 

Managing Consumer Misuse of the Consumer Sentinel Network

The FTC’s Consumer Sentinel Network (CSN) is a unique investigative cyber tool that provides its members (typically federal, state, and local law enforcement) with free access to millions of reports filed by consumers, member 

entities, and other data contributors. In addition to consumer fraud scams, CSN includes reports about Identity Theft, 

and Do Not Call (DNC) Registry violations. Misuse of CSN related to the latter two types of reports have become a 

growing concern—which can dilute both the accuracy of the data and consumer confidence in it. 

Agency Status. The FTC has reported taking several measures, and continuing to explore options, to prevent and mitigate misuse of CSN in an effort to maintain the integrity of the system. To help minimize the number of fraudulent 

reports submitted through the IdentifyTheft.gov website, management has described how it has implemented several 

back-end security measures and enhancements. In its effort to prevent the removal of someone’s telephone number 

from the Do Not Call Registry without their consent, the FTC recently reported it has implemented a callback feature 

to confirm that person actually requested the deletion.

1

The entire FY 2022 report is available at https://www.ftc.gov/system/files/ftc_gov/pdf/2022-09-30_OIG_FY_2022_FTC_Top_Management_

Challenges.pdf
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 85

OTHER INFORMATION

PAYMENT INTEGRITY 

The Improper Payments Elimination and Recovery 

Improvement Act (IPERIA) of 2012 requires agencies to 

annually report on all programs and activities, identify those 

that may be susceptible to significant improper payments, 

estimate annual improper payments in the susceptible 

programs and activities, and report the results of their 

improper payment activities 

In accordance with the OMB A-123 Appendix C guidance, 

the FTC performed a FY 2021 risk assessment for all major 

payment programs including payroll, procurement, redress 

payments to consumers, travel, purchase card, premerger 

filing fee refunds, training, and two miscellaneous payment 

processes The FTC evaluated each payment program over $1 

million using the following qualitative risk factors identified 

in OMB Circular A-123 Appendix C: 

• The relative complexity of the program or activity 

operation 

• The extent and significance of recent changes in the 

program that may be reason for improper payment in 

funding, authorities, practices and procedure 

• The extent and significance of recent changes in program 

payment amounts or volume of payments 

• The level, experience, and quality of training for personnel 

responsible for program eligibility determination or 

certifying that payments are accurate 

• The inherent risks of improper payments due to the 

nature of programs or operation 

• Known control deficiencies (i e , reported by OIG, or 

GAO) that might hinder accurate payment certification 

The FTC also performed a quantitative risk assessment 

which assessed risks related to the amounts of payments 

processed relative to the OMB specified threshold amounts 

that define payment programs susceptible to improper 

payments As a result of the FY 2021 risk assessment, the 

FTC determined that the agency’s programs and activities 

presented low risk of improper payments and that none of 

the agency’s programs or activities were determined to be 

susceptible to significant improper payments 

The FTC also reviews potential matches on an on-going basis 

and incorporates a pre-award check on potential contractors 

against the Do Not Pay databases to prevent improper 

payments In 2015, the FTC performed and documented 

testing of statistical samples from larger payment processes to 

verify that the FTC payment programs are not susceptible to 

significant improper payments which served as the baseline 

for the FY 2021 risk assessment Per OMB guidance and 

the result of the FY 2021 IPERIA risk assessment, no 

assessment was conducted during FY 2022 and the next 

assessment is scheduled for FY 2024 In addition, the FTC 

regularly conducts assessments over the internal controls 

over payment processes In 2022, the FTC performed an 

assessment of miscellaneous and intragovernmental payments 

to assess the effectiveness of controls over the proper 

authorization, approval, and processing of payments 

For programs with more than $1 million of expenditures, the 

FTC determined and documented that performing recapture 

audits were not cost effective The FTC’s analysis had two 

parts; first the error rates determined during the FY 2015 

quantitative risk assessment, and second the documented 

management assessments of the effective operation of 

controls within the payment processes The 2015 test 

work used statistical methods to project error rates to the 

population of payments for the larger payment processes 

These larger payment amounts could have produced errors 

classifying the process as ‘Significant’ This test work did 

not detect errors within the population of payments and, 

therefore, did not identify payments subject to recapture 

Recent management assessments of each payment process 

determined sufficient controls to detect and prevent improper 

payments were in place and operating effectively As a 

result, the Office of the Chief Financial Officer determined 

and documented that projected amounts subject to 

recapture audits are “de minimis” and recapture audits are 

not cost-effective 
86 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

OTHER INFORMATION

CIVIL MONETARY PENALTY ADJUSTMENT FOR INFLATION 

The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment 

Act Improvements Act of 2015, requires agencies to make regular and consistent inflationary adjustments of civil monetary 

penalties to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect The 2015 Act requires 

agencies to: (1) adjust the level of civil monetary penalties with an initial “catch-up” adjustment; and (2) make subsequent annual 

adjustments for inflation Accordingly, the Federal Trade Commission increased its maximum civil penalty amounts to address 

inflation since the initial catch-up adjustment 

The following table lists the civil monetary penalties that the FTC may impose, the authority for imposing the penalty, penalty 

description, year enacted, latest year of adjustment, current penalty level, the Bureau that administers the penalty, and location 

for penalty update details Additional information about these penalties and the latest adjustment is available in the Federal 

Register 

Statutory 

Authority 

Penalty 

(Name or 

Description)

Year 

Enacted

Latest year of 

adjustment 

(via statute or 

regulation)

Current Penalty 

Level ($ Amount 

or Range)

SubAgency/ 

Bureau/

Unit

Location for 

Penalty Update 

Details

Section 7A(g)(1) of the Clayton Act,

15 U.S.C. 18a(g)(1)

Premerger filing 

notification 

violations under the 

Hart-Scott-Rodino 

Improvements Act

1976 January 10, 2022 $ 46,517 BC Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 11(l) of the Clayton Act, 15

U.S.C. 21(l)

Violations of cease 

and desist orders 

issued under 

Clayton Act

section 11(b)

1959 January 10, 2022 $ 24,714 BC Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 5(l) of the FTC Act, 15

U.S.C. 45(l)

Unfair or deceptive 

acts or practices

1973 January 10, 2022 $ 46,517 BC and BCP Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 5(m)(1)(A) of the FTC Act,

15 U.S.C. 45(m)(1)(A)

Unfair or deceptive 

acts or practices

1975 January 10, 2022 $ 46,517 BC and BCP Federal Register 

Vol 87, January 10, 

2022, pages 1070-

10721

Section 5(m)(1)(B) of the FTC Act,

15 U.S.C. 45(m)(1)(B)

Unfair or deceptive 

acts or practices

1975 January 10, 2022 $ 46,517 BC and BCP Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 10 of the FTC Act, 15 U.S.C.

50

Failure to file 

required reports

1914 January 10, 2022 $ 612 BC and BCP Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 5 of the Webb-Pomerene

(Export Trade) Act, 15 U.S.C. 65

Failure by 

associations 

engaged solely 

in export trade 

to file required 

statements

1918 January 10, 2022 $ 612 BC Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 6(b) of the Wool Products

Labeling Act, 15 U.S.C. 68d(b)

Failure by wool 

manufacturers to 

maintain required 

records 

1940 January 10, 2022 $ 612 BCP Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 87

OTHER INFORMATION

Statutory 

Authority 

Penalty 

(Name or 

Description)

Year 

Enacted

Latest year of 

adjustment 

(via statute or 

regulation)

Current Penalty 

Level ($ Amount 

or Range)

SubAgency/ 

Bureau/

Unit

Location for 

Penalty Update 

Details

Section 3(e) of the Fur Products

Labeling Act, 15 U.S.C. 69a(e)

Failure to maintain 

required records 

regarding fur 

products 

1951 January 10, 2022 $ 612 BCP Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 8(d)(2) of the Fur Products

Labeling Act, 15 U.S.C. 69f(d)(2)

Failure to maintain 

required records 

regarding fur 

products 

1951 January 10, 2022 $ 612 BCP Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 333(a) of the Energy Policy

and Conservation Act, 42 U.S.C. 6303(a)

Knowing violations 

of EPCA § 332,

including labeling 

violations

1975 January 10, 2022 $ 503 BCP Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 525(a) of the Energy Policy

and Conservation Act, 42 U.S.C. 6395(a)

Recycled oil 

labeling violations

1975 January 10, 2022 $ 24,714 BCP Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 525(b) of the Energy Policy

and Conservation Act, 42 U.S.C. 6395(b)

Willful violations of 

recycled oil labeling 

requirements

1975 January 10, 2022 $ 46,517 BCP Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 621(a)(2) of the Fair Credit

Reporting Act, 15 U.S.C. 1681s(a)(2)

Knowing violations 

of the Fair Credit

Reporting Act

1996 January 10, 2022 $ 4,367 BCP Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

Section 1115(a) of the Medicare

Prescription Drug Improvement and

Modernization Act of 2003, Public Law

108–173, as amended by Public Law

115–263, 21 U.S.C. 355

Failure to

comply with filing 

requirements

2003 January 10, 2022 $ 16,445 BC Federal Register 

Vol 87, January 10, 

2022, pages 1070-

10721

Section 814(a) of the Energy

Independence and Security Act of 2007,

42 U.S.C. 17304

Violations of

prohibitions 

on market 

manipulation

and provision of 

false information to

federal agencies

2007 January 10, 2022 $ 1,323,791 BC Federal Register 

Vol 87, January 10, 

2022, pages 1070-

1072

APPENDICES
90 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

APPENDICES

APPENDIX A: ACRONYMS

Because many of the acronyms in this document are not commonly used, or have multiple meanings, this Appendix is provided 

as a reference This is not all-inclusive, and only meant to show how these acronyms are used in the context of this AFR 

Acronym Definition

AFR Agency Financial Report 

APP Annual Performance Plan 

APR Annual Performance Report 

ARC Administrative Resource Center

ARPA American Rescue Plan Act of 2021 

BC Bureau of Competition 

BCP Bureau of Consumer Protection 

CGE Concur Government Edition 

CSN Consumer Sentinel Network

CSRS Civil Service Retirement System 

DATA Act Digital Accountability and Transparency Act of 2014 

DNC Do Not Call 

DOD Department of Defense

DOJ Department of Justice 

DOL Department of Labor 

DQA Data Quality Appendix

ERM Enterprise Risk Management 

FASAB Federal Accounting Standards Advisory Board 

FBwT Fund Balance with Treasury 

FECA Federal Employees’ Compensation Act 

FEGLIP Federal Employees’ Group Life Insurance Program 

FEHBP Federal Employees’ Health Benefit Program 

FERS Federal Employees’ Retirement System 

FERS-FRAE Federal Employees’ Retirement System – Further Revised Annuity Employees

FERS-RAE Federal Employees’ Retirement System – Revised Annuity Employees

FEVS Federal Employee Viewpoint Survey

FISMA Federal Information Security Management Act 

FMFIA Federal Managers’ Financial Integrity Act 

FMO Financial Management Office 

FTC Federal Trade Commission 

FTE Full-Time Equivalent 

FY Fiscal Year 

GAAP Generally Accepted Accounting Principles 

GAO Government Accountability Office 

GSA General Services Administration 

HSR Hart-Scott-Rodino Act 

IBC Department of the Interior Business Center 

ICOR Internal Control Over Reporting

IG Inspector General 
FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022 91

APPENDICES

Acronym Definition

IPERIA Improper Payments Elimination and Recovery Improvement Act 

IPP Invoice Processing Platform

IT Information Technology 

MOBE My Online Business Education 

NIST National Institute of Standards and Technology 

OFF Oracle Federal Financials 

OIG Office of Inspector General 

OMB Office of Management and Budget 

OPM Office of Personnel Management 

PIO Performance Improvement Officer

PMRO Performance Measure Reporting Official 

PP&E Property, Plant, and Equipment 

PRISM Procurement Information System for Management

SAT Senior Assessment Team 

SBR Statement of Budgetary Resources 

SFFAS Statement of Federal Financial Accounting Standards

SMC Senior Management Council

TAS Treasury Account Symbol 

TSP Thrift Savings Plan
92 FEDERAL TRADE COMMISSION ❙ Agency Financial Report ❙ FISCAL YEAR 2022

APPENDICES

APPENDIX B: CONTACT INFORMATION AND ACKNOWLEDGEMENTS

FEDERAL TRADE COMMISSION 600 Pennsylvania Avenue, NW

Washington, D C 20580

General Information Number 202-326-2222

Internet Home Page www ftc gov

FTC Spanish Home Page www ftc gov/espanol

Strategic Plan Internet Site https://www ftc gov/about-ftc/budget-strategy/strategic-plan

FTC Press Releases https://www ftc gov/news-events/news/press-releases

AGENCY FINANCIAL REPORT (AFR) SPECIFIC

The FTC welcomes comments or suggestions for improvement of its AFR Please contact the agency to provide feedback or to 

request additional copies 

AFR Internet Site https://www ftc gov/about-ftc/budget-strategy/budget-

 performance-financial-reporting

AFR Contact Randall Salzer

AFR Telephone 202-326-2028

AFR Email Address gpra@ftc gov

AFR Mailing Address Federal Trade Commission

Attn: AFR, M/D H-701 

600 Pennsylvania Avenue, NW

Washington, D C 20580

CONSUMER RESPONSE CENTER

FTC Complaint Assistant https://reportfraud ftc gov/ 

Identity Theft Education, Complaints, and Recovery Plan www identitytheft gov 

National Do Not Call Registry www donotcall gov 

General Complaints 877-FTC-HELP (877-382-4357) 

Identity Theft Complaints 877-ID-THEFT (877-438-4338) 

TTY (Teletype Consumer Response Center) 866-653-4261 

ACKNOWLEDGEMENTS

The FTC offers our sincerest thanks and acknowledges the following individuals who made significant contributions in 

producing this report: Daniel Zhao and Elizabeth Wilkins of the Office of the Chair; George Adam, Sharon Ball, Chris Bryan, 

Danette Diaz-Juarez, James Hale, David Rebich, David Robbins, Randall Salzer, Cindee Smith, Lori Walsh-Van Wey, and 

Michael Ward of the Office of the Executive Director; Nathan Hawthorne and Tara Koslov of the Bureau of Competition; 

Jenny Kellogg and Robin Moore of the Bureau of Consumer Protection; Catherine Wayne of the Office of Congressional 

Relations; Mary Harmison and Andrew Katsaros of the Office of the Inspector General; Mitchell Katz of the Office of 

Public Affairs Finally, we offer thanks to Red Creek Solutions and Graphic Visions for their contributions in the design and 

production of this report 

WWW FTC GOV

/federaltradecommission

@FTC

ftc.gov

/FTCvideos

FEDERAL TRADE COMMISSION

The Work of the Federal Trade Commission is Critical to Protecting

and Strengthening Free and Open Markets and Promoting Informed

Consumer Choice, Both in the United States and Around the World