Office of the 

Inspector General 

TO: 

FROM: 

DATE: 

SUBJECT: 

U.S. COMMODITY FUTURES TRADING COMMISSION 

Three Lafayette Centre 

1155 21st Street, NW, Washington, DC 20581 

Telephone: (202) 418-5000 

Facsimile: (202) 418-5521 

www.cfto.gov 

MEMORANDUM 

Timothy G. Massad, Chairman 

Commissioner Mark P. Wetjen 

Commissioner Sharon Y. Bowen 

Commissioner J. Christopher Giancarlo 

A. Roy Lavik, Inspector General c:;? ~ -~ Edward Kelley, Assistant Inspector General for Auditing?~ 

October 30, 2014 

Audit Result of the CFTC Customer Protection Fund Financial 

Statements for Fiscal Year 2014 

Annually the Office of the Inspector General (OIG) conducts an audit of 

the Customer J>rotection Fund (Fund) financial statements. The Fund's 

balance as ofSeptember 30, 2014 was $274,448,248. This year the OIG 

contracted with an independent public accounting finn Williams Adley 

& Company-DC, LLP to conduct this audit. The OIG monitored 

Williams Adley & Company-DC, LLJ>'s actions throughout the audit 

and concur with their opinion on the Fund'.s financial statements. 

Attached is a copy oftheir unmodified (clean) opinion letter. 

Please extend my thanks for the cooperation of agency statf during the 

audit process. Please call me if you have any questions. 

Attachment 
Chairman 

WILLIAMS 

ADLEY 

Independent Auditors' Report 

U.S. Commodity Futures Trading Commission 

Inspector General 

U.S. Commodity Futures Trading Commission 

Report on the Financial Statements 

We have audited the accompanying Balance Sheets of the Commodity Futures Trading Commission 

Customer Protection Fund (CPF) as of September 30, 2014 and 2013, and the related Statements of Net 

Cost, Changes in Net Position and Budgetary Resources forthe years then ended (hereinafter referred to 

as the financial statements). 

Management's Responsibility for the Financial Statements 

CPF management is responsible for the preparation and fair presentation of the financial statements In 

accordance with accounting principles generally accepted in the United States of America; this Includes 

the design, implementation, .and maintenance of 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 

Our responsibility is to express an opinion on these financial statements based on our audits. We 

conducted our audits in accordance with auditing standards generally accepted In the United States of 

America and standards applicable to financial statement audits contained in Government Auditing 

Standards, Issued by the Comptroller General of the United States, and the Office of Management and 

Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statements. Those 

standards and OMB Bulletin No. 14-02 require that we plan and perform the audit to obtain reasonable 

assurance about whether the financial statements are free ofmaterial misstatements. 

An audit involves performing procedures to obtain audit evidence aboLJt the amounts and disclosures in 

the financial statements. The procedures selected depend on the auditor's judgment, including the 

assessment of the risks of material misstatement of the financial statements, whether due to fraud or 

error. In making those risk assessments, we considered internal control relevant to the CPF's 

preparation and fair presentation of the financial statements in order to design audit procedures that 

are appropriated in the circumstances, but not for the purpose of expressing an opinion on the 

effectiveness of the CPF's Internal control. Accordingly, we express no such opinion. An audit also 

includes evaluating the appropriateness of accounting policies used and the reasonableness of 

WILLIAMS, ADLEY & COMPANY-DC, LLP 

Certified Public Accountants I Management Consultants 

1030 16111 Street, NW, Suite 350 West • Washington, DC 20005 • (202) 371·1397 • Fax: (202) 371·9161 

www.wllllamsadley.com 
significant accounting estimates made by management, as well as evaluating the overall presentation of 

the financial statements 

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

our audit opinion. 

Opinion 

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

financial position of the Customer Protection Fund as of September 301 2014 and 2013, and its net cost1 

changes in net position and budgetary resources for the fiscal years then ended1 in conformity with 

accounting principles generally accepted in the United States of America. 

Other Information 

The information in CPF's Annual Report to Congress and the Cash Flow Analysis are not a required part 

of the financial statements, but are supplementary information required by the Dodd-Frank Wall Street 

Reform and Consumer Protection Act. We have applied certain limited procedures, which consisted 

principally of inquiries of management regarding the methods of measurement and presentation of this 

information. However, we did not audit this information and, accordingly1 we express no opinion on it. 

Our audit was conducted for the purpose of forming an opinion on the basic financial statements of CPF 

as a whole. 

Other Reporting Required by Government Auditing Standards 

In accordance with Government Auditing Standards1 we have also issued our reports dated October 24, 

20141 on our consideration of the CPF's internal control over financial reporting and our tests of its 

compliance with certain provisions of laws, regulations, and other matters. The purpose of those 

reports is to describe the scope of our testing of internal control over financial reporting and compliance 

and the results of that testing/ and not to provide an opinion on the internal control over financial 

reporting nor on compliance. Those reports are an integral part of an audit performed in accordance 

with Government Auditing Standards and should be read in conjunction with this report in assessing the 

results of our audits. 

tAJ~,~~ a~ -};o;u.f' 

Washington, D.C. 

October 241 2014 
WILLIAM 

ADLEY 

Independent Auditors' Report on Internal Control over Financial Reporting 

Chairman 

u.s. Commodity Futures Trading Commission 

Inspector General 

U.s. Commodity Futures Trading Commission 

We have audited the Basic Financial Statements of the Commodity Futures Trading Commission 

Customer Protection Fund (CPF) as of and for the years ended September 30, 2014 and 2013, and have 

issued our report thereon dated October 24, 2014. 

CPF management is responsible for establishing and maintaining effective internal control. In planning 

and performing our audits, we considered the CPF's internal control over financial reporting by 

obtaining .an understanding of the CPF's internal control, determining whether internal controls had 

been placed in operation, assessing control risk, and performing tests of controls ;:~sa basis for designing 

our audit procedures for the purpose of expressing our opinion on the financial Statements but not to 

express an opinion on the effectiveness of the CPF's internal control over financial reporting. 

Accordingly we do not express an opinion on the effectiveness of the CPF's internal control over 

financial reporting. We limited our internal control testing to those controls necessary to achieve the 

objectives described in the Office of Management and Budget (OMB} Bulletin No. 14-02, Audit 

Requirements for Federal Financial Statements, as amende.d. We did not test all internal controls 

relevant to operating objectives broadly defined by the Federal Managers' Financial Integrity Act ot 

1982 such as those controls relevant to ensuring efficient operations. 

Our consideration of Internal control over financial reporting was for the limited purpose described in 

the preceding paragraph and would not necessarily identify all deficiencies in the internal control over 

financial reporting that might be significant deficiencies or material weaknesses. 

A control deficiency exists when the design or operation of a control does not allow management or 

employees, in the normal course of performing their assigned functions, to prevent or detect 

misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of 

control deficiencies that adversely affects the CPF's ability to initiate, authorize, record, process, or 

report financial data reliably in accordance with accounting principles generally accepted in the United 

States of America such that there is more than a remote likelihood that a misstatement of the CPF's 

principal financial statements that is more than Inconsequential will not be prevented or detected by 

the CPF's internal control. A material weakness Is a significant deficiency, or combination of significant 

deficiencies, that results in more than a remote likelihood that a material misstatement of the financial 

statements will not be prevented or detected. 

WILLIAMS, ADLEY & COMPANY-DC, LLP 

Certified Public Accountants I Management Consultants 

1030 151

h Street, NW, Suite 350 West • Washington, DC 20005 • (202) 371·1397 • Fax: (202) 371·9161 

www.wllliamsadley.com 
In our fiscal year 2014 audit, we did not identify any deficiencies in internal control over financial 

reporting that we consider to be material weaknesses, as defined above. 

This report is intended solely for the information and use of management of the Customer Protection 

Fund, OMB, U.S. Government Accountability Office, and the U.S. Congress and is not intended to be and 

should not be used by anyone other than these specified parties. 

Washington, D.C. 

October 24, 2014 
Chairman 

WILLIAM 

ADLEY 

Independent Auditors' Report on Compliance and Other Matters 

U.S. Commodity Futures Trading Commission 

Inspector General 

U.S. Commodity Futures Trading Commission 

We have audited the B;;~sic Financial Statements of the Commodity Futures Trading Commission 

Customer Protection Fund (CPF) as of and for the year ended September 30, 2014 and 2013, and have 

Issued our report thereon dated October 24, 2014. We conducted our audit In accordance with auditing 

standards generally accepted in the United States of America; standards applicable to financial audits 

contained in Government Auditing Standards, issued by the Comptroller General of the United States; 

and Office of Management and Budget (OMB) audit guidance. 

The management of the CPF is responsible for complying with laws and regulations that are applicable 

to the CPF. As part of obtaining reasonable assurance about whether the CPF's financial statements are 

free of material misstatement, we performed tests of the CPF's compliance with certain provisions of 

laws and regulations including but not limited to the Dodd-Frank Wall Street Reform and Consumer 

. Protection Act, Accountability for Tax Dollars Act, Federal Managers' Financial Integrity Act, and the 

Anti-Deficiency Act noncompliance with which could have a direct and material effect on the 

determination of the financial statements amounts, and certain provisions of other laws and regulations 

specified in the Office of Management and Budget (OMB) Bulletin No. 14-02, Audit Requirements for 

Federal Financial Statements, as amend.ed. We limited our tests of compliance to the provisions 

described in the preceding sentence, and we did not test compliance with all laws and regulations 

applicable to the CPF. However, providing an opinion on compliance with those provisions was not an 

objective of our audit, and accordingly, we do not express such an opinion. 

The results of our tests of compliance described In the preceding paragraph of this report disclosed no 

Instances of noncompliance or other matters that are required to be reported under Government 

Auditing Standards and OMB Bulletin No. 07-04. 

The report is Intended solely for the Information and use of the management of the CPF, OMB, the U.S. 

Government Accountability Office, and the U.S. Congress and Is not Intended to be and should not be 

used by anyone other than these specified parties. 

w~~M~fJ&~~)~ 

Washington, D.C. 

October 24, 2014 

WILLIAMS, ADLEY & COMPANY-DC, LLP 

Certified Public Accountants I Management Consultants 

1030 151h Street, NW, Suite 350 West • Washington, DC 20005 • (202) 371-1397 • Fax: (202) 371·9161 

'!JWW.Willlamsadlev.com 
FINANCIAL STATEMENTS FOR THE 

CUSTOMER PROTECTION FUND 

REPORT TO CONGRESS 

As of September 30, 2014 
U.S. Commodity Futures Trading Commission 

Customer Protection Fund Report to Congress: Financial Statements 

Table of Contents 

Financial Statements ....................................................................................................................... 3 

Notes to the Financial Statements ................................................................................................... 7 

Supplementary Schedule: 

Cash Flow Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................... 11 

2 
Commodity Futures Trading Commission 

Customer Protection Fund 

Balance Sheets 

As of September 30, 2014 and 2013 

Assets 

I ntragov em mental: 

Fund Balance With Treasury (Note 2) 

Investments (Note 3) 

T otallntragovernmental 

Total Assets 

Liabilities 

I ntragov emmental: 

Accounts Payable 

Total lntragovernmental 

Accounts Payable 

Accrued Payroll 

Total Liabilities 

Contingent Liabilities (Note 4) 

Net Position 

$ 

$ 

2014 

4,448,248 

270,000,000 

274,448,248 

274,448,248 

109,470 

23,466 

132,936 

Cumulative Results of Operations- Funds from Dedicated Collecti( 274,315,312 

Total Net Position -----:2"""7 4.,..-,3...,..15--,3,....,.12,.-

Total Liabilities and Net Position $ 274,448,248 

The accompanying notes are an integral part of these financial statements. 

3 

$ 

$ 

2013 

4,983,233 

95,000,000 

99,983,233 

99,983,233 . 

100 

100 

60,016 

18,826 

78,942 

99,904,291 

99,904,291 

99,983,233 • 
Commodity Futures Trading Commission 

Customer Protection Fund 

Statements ofNet Cost 

For the Periods Ended September 30, 2014 and 2013 

2014 

Net Costs by Goal (Note 5) 

Gross Costs $ 1,735,213 

;Total Net Cost of Operations $ 1,735,213 

The accompanying notes are an integral part of these financial statements. 

4 

2013 

$ 960,397 

$ 960,397 
Commodity Futures Trading Commission 

Customer Protection Fund 

Statements of Changes in Net Position 

For the Periods Ended September 30, 2014 and 2013 

2014 

Cumulative Results of Operations 

Beginning Balances, October 1 $ 99,904,291 

Budgetary Financing Sources: 

Nonexchange Interest Revenue 35,630 

Transfers-In/Out Without Reimbursement (+I-) 176,110,604 

Total Financing Sources 176,146,234 

Net Cost of Operations (1,735,213) 

Net Change 174,411,021 

Total Cumulative Results of Operations, September 30 $ 274,315,312 

The accompanying notes are an integral part of these financial statements. 

5 

2013 

$ 99,996,749 

50,504 

817,435 

867,939 

(960,397) 

(92,458) 

$ 99,904,291 
Commodity Futures Trading Commission 

Customer Protection Fund 

Statements of Budgetary Resources 

For the Periods Ended September 30, 2014 and 2013 

2014 2013 

BUDGETARY RESOURCES 

Unobligated Balance Brought Forward, October 1 $ 98,986,701 $ 99,996,749 

Recoveries of Prior Year Unpaid Obligations 24,004 

Unobligated Balance from Prior Year Budget Authority, Net 99,010,705 99,996,749 

Spending Authority from Offsetting Collections 175,933,234 204,940 

. Total Budgetary Resources $ 274,943,939 $ 100,201,689 

STATUS OF BUDGETARY RESOURCES 

Obligations Incurred $ 5,042,582 $ 1,214,988 

Unobligated Balance, End of Year 

Apportioned 27,200,256 11,541,880 

U nappomoned 242,701, 1 01 87,444,821 

Total Unobligated Balance, End of Year 269,901,357 98,986,701 

Total Budgetary Resources $ 274,943,939 $ 100,201,689 

CHANGE IN OBLIGATED BALANCE 

Unpaid Obligations: 

Unpaid Obligations, Brought Forward, October 1 $ 333,533 $ 43,681 

Obligations Incurred 5,042,582 1,214,988 

Outlays (Gross) (1,681,219) (925,136) 

Recoveries of Prior-Year Unpaid Obligations (24,004) 

Unpaid Obligations, End of Year 3,670,892 333,533 

Memorandum Entries: 

Obligated Balance, Start of Year $ 333,533 $ 43,681 

Obligated Balance, End of Year $ 3,670,892 $ 333,533 

BUDGET AUTHORITY AND OUTLAYS, NET 

Budget Authority, Gross $ 175,933,234 $ 204,940 

Actual Offsetting Collections (176,146,234) (867,940) 

Budget Authority , N et $ (213,000) $ (663,000) 

Outlays, Gross $ 1,681,219 $ 925,136 

Actual Offsetting Collections (176,146,234) (867,940) 

.NET OUTLAYS $ (174,465,015) $ 57,196 

The accompanying notes are an integral part of these financial statements. 

6 
Notes to the Financial Statements 

For the Periods Ended September 30,2014 and 2013 

Note 1. Summary of Significant Accounting Policies 

A. Reporting Fund 

The Commodity Futures Trading Commission (CFTC or the Commission) is an independent agency of the 

executive branch of the Federal Government. Its mission is to "protect market users and the public from 

fraud, manipulation, and abusive practices related to the sale of commodity futures and options, and to 

foster open, competitive, and financially sound commodity futures and options markets." 

On July 21, 2010, the "Dodd-Frank Wall Street Reform and Consumer. Protection Act" (the Dodd-Frank 

Act, or the Act) was signed into law, significantly expanding the powers and responsibilities of the CFTC. 

According to Section 748 of the Act, there is established in the Treasury of the United States a revolving 

fund known as the "Commodity Futures Trading Commission Customer Protection Fund" (the Fund). 

The Fund shall be available to the Commission, without further appropriation or fiscal year limitation, for 

a) the payment of awards to whistleblowers; and b) the funding of customer education initiatives designed 

to help customers protect themselves against fraud or other violations of this Act or the rules and 

regulations thereunder. 

The Act requires CFTC to transmit to the Committee on Agriculture, Nutrition and Forestry of the Senate, 

and the Committee on Agriculture of the House of Representatives a report which includes a complete set 

of audited financial statements and supplementary information, including balance sheet, income 

statement, and cash flow analysis, no later than October 30, of each year. 

B. Basis of Presentation 

The financial statements have been prepared to report the financial position and results of operations for 

the Fund, as required by the Dodd-Frank Act. These statements have been prepared from the Fund's 

books and records, which are a component of the Commission's books and records, in conformity with 

U.S. generally accepted accounting principles (GAAP), as prescribed for the Federal government by the 

Federal Accounting Standards Advisory Board (FASAB) and in accordance with the form and content 

requirements contained in Office of Management and Budget (OMB) Circular A-136, Financial Reporting 

Requirements, as amended. 

The Fund was established in July 2010 and funded by transfers from CFTC's Civil Monetary Penalties, 

Fines and Administrative Fees receipt account. These transfers do not meet the criteria of reportable 

revenue as defined by the Statement of Federal Financial Accounting Standards (SFFAS) 7, Accounting 

for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial 

Accounting. 

The financial statements report on the Fund's financial position, changes in net position, net cost and 

budgetary resources. The books and records of the Fund served as the source of information for preparing 

the financial statements in the prescribed formats. All Fund financial statements and reports used to 

monitor and control financial resources are prepared from the same books and records. The statements 

should be read with the understanding that they relate to a fund controlled by CFTC, a component of the 

U.S. Government, a sovereign entity. 

The Balance Sheet presents the financial position of the Fund. The Statement of Net Cost presents the 

Fund's operating results. The Statement of Changes in Net Position displays the changes in the Fund's net 

position, and the Statement of Budgetary Resources shows the spending authority of the Fund derived 

from the deposits eligible from civil monetary collections. 

C. Fund Balance with Treasury 

Fund Balance with Treasmy is the aggregate amount of the Fund's balance with the U.S. Treasury. The 

balance in the Fund is available to pay current liabilities and finance authorized operations. 

7 
The Fund does not maintain bank accounts of its own, has no disbursing authority, and does not maintain 

cash held outside of Treasury. Treasury makes disbursements for the Fund. 

D. Investments in U.S. Government Securities 

The CFTC has authority to invest amounts in the Customer Protection Fund in market-based U.S. 

Treasury securities. The interest earned on the investments is a component of the Fund and is available to 

be used for expenses of the Fund. Additional details regarding Customer Protection Fund investments are 

provided in Note 3. Investments. 

Market-based Treasury securities are debt securities that the U.S. Treasury issues to Federal entities 

without statutorily determined interest rates. Although the securities are not marketable, the terms 

(prices and interest rates) mirror the terms of marketable Treasury securities. 

E. Liabilities 

The Fund's liabilities consist of actual and estimated amounts that are likely to be paid as a result of 

transactions covered by the Whistleblower Incentives and Protection regulation, and will be paid from 

available balances remaining in the Fund. In addition, the salaries and operating expenses of the 

Whistleblower's Office and Consumer Outreach Office were funded through the Fund. Liabilities totaled 

$132,936 and $78,942 as of September 30, 2014 and 2013 respectively. The Fund's liabilities are 

considered current liabilities. 

F. Funds from Dedicated Collections 

The Fund contains dedicated collections that can only be used to operate a whistleblower program and 

support customer education initiatives. See Note LA. for a description of the purpose of the Fund and its 

authority to use the revenues and other financing sources. Deposits into the Fund are credited from 

monetary sanctions collected by the Commission in covered judicial or administrative actions not 

otherwise distributed to victims of a violation of the Dodd-Frank Act or the rules and regulations 

underlying such action, unless the balance of the Fund at the time the monetary judgment is collected 

exceeded $100 million. No new legislation was enacted as of September 30, 2014 that significantly 

changed the purpose of the dedicated collections or redirected a material portion of the accumulated 

balance. However, an independent assessment by the Government Accountability Office issued in 

November 2013 interpreted that collections should be kept intact and deposited in full into the Fund as 

long as the fund balance is below $100 million at the time of collection. As a result, the Commission 

recovered $176.1 million from the U.S. Department of the Treasury in the third quarter of fiscal year 2014 

and transferred the full amount into the Fund. The balance in the Fund as of September 30, 2014, now 

reflects the balance of the Fund if the full $200 million collection received from Barclays in fiscal year 

2012 had been transferred into the Fund at that time. 

G. Revenues and Other Financing Sources 

The CFTC Customer Protection Fund is funded through monetary sanctions resulting from judicial or 

administrative action brought by the Commission under the Commodity Exchange Act. All collections are 

deposited into a receipt account. Eligible collections are transferred into the Fund from the CFTC's Civil 

Monetary Penalties, Fines and Administrative Fees receipt account. 

Congress enacted the Dodd-Frank Act that provides the CFTC with the authority to establish the Fund. 

The Fund is available to the Commission, without further appropriation or fiscal year limitation. These 

funds are considered financing sources under U.S. Treasury Department guidelines. Per the Act, no 

sanction collected by the Commission can be deposited into the Fund if the Fund's balance exceeds $100 

million. The CFTC may request the Secretary of the Treasury to invest Fund amounts in Treasury 

obligations. Eligible collections were deposited into this new Fund during fiscal years 2014 and 2013. 

8 
H. Intra- and Inter-Agency Relationships 

The CFTC is an independent Federal agency. The Commodity Futures Trading Commission Customer 

Protection Fund is a fund within the CFTC, and these financial statements present a segment of the CFTC 

financial activity. The financial events of the Fund are consolidated into the CFTC annual financial 

statements. 

I. Use of Management Estimates 

No management estimates were used to prepare these financial statements. 

J. Limitations of the Financial Statements 

The principal financial statements included in this report have been prepared to report the financial 

position and results of operations of the Fund, pursuant to the requirements of Section 748 of the DoddFrank Consumer Protection Act. While the statements have been prepared from the books and records of 

the CFTC in accordance with GAAP for Federal entities, these statements are in addition to the reports 

used to monitor and control the financial activity of the CFTC, which are prepared from the same books 

and records. The statements should be read with the understanding that they are for the Customer 

Protection Fund, a single fund within the CFTC. 

K. Reclassifications 

To conform to OMB Circular A-136, activity and balances reported on the FY 2013 Statement of Budgetary 

Resources, Statement of Net Cost, and Statement of Changes in Net Position have been reclassified to 

conform to the presentation in the current year. 

Note 2. Fund Balance with Treasury 

The Fund Balance with Treasury by type of fund and Status of Fund Balance with Treasury as of 

September 30, 2014 and 2013 consists of the following: 

Revolving Funds 

TOTAL FUND BALANCE WITH TREASURY 

Revolving Funds 

Unobligated Fund Balance 

Available 

Obligated Balance Not Yet Disbursed 

Total Revolving Funds 

TOTAL FUND BALANCE WITH TREASURY 

A. Reconciliation to Treasury 

$ 

$ 

$ 

$ 

2014 

4,448,248 

4,448,248 

777,356 

3,670,892 

4,448,248 

4,448,248 

$ 

$ 

$ 

$ 

2013 

4,983,233 

4,983,233 

4,649,700 

333,533 

4,983,233 

4,983,233 

There are no differences between the fund balance reflected in the CPF Balance Sheet and the balance in 

the Treasury account. 

B. Fund Balance with Treasury 

Fund Balance with Treasury consists of collections of fines and penalties not owed to harmed investors. 

Obligation of these funds is controlled by apportionments made by OMB. Until such funds are 

apportioned by OMB, they are unavailable to be obligated. 

9 
Note 3· Investments 

In fiscal year 2012, the CFTC began investing funds in overnight short-term Treasury securities. Treasury 

overnight certificates of indebtedness are issued with a stated rate of interest to be applied to their par 

amount, mature on the business day immediately following their issue date, are redeemed at their par 

amount at maturity, and have interest payable at maturity. 

The Commission may invest in other short-term or long-term Treasury securities at management's 

discretion. 

The overnight certificates are Treasury securities whose interest rates or prices are determined based on 

the interest rates or prices of Treasury-related financial instruments issued or trading in the market, 

rather than on the interest rates or prices of outstanding marketable Treasury securities. 

The Commission's investments as of September 30, 2014 and 2013 were $270 million and $95 million, 

respectively. Interest earned as of September 30, 2014 and 2013 was $35,630 and $50,504, respectively. 

Note 4· Contingencies 

Unasserted claims are actions or potential actions the Commission is aware of in which future events may 

result in claims against the Fund. 

As mentioned in Note LA. Reporting Fund, the Commodity Futures Trading Commission Customer 

Protection Fund will be used to pay awards to whistleblowers if they voluntarily provide original 

information to the CFTC that leads to the successful enforcement by the CFTC of a covered judicial or 

administrative action in which monetary sanctions exceeding $1 million are imposed. Whistleblowers are 

entitled to appeal any decisions by the Commission in regards to claims made against the Fund. 

In accordance with Federal accounting standards, CFTC records contingent liabilities for any unasserted 

claim in which payment has been deemed probable and for which the amount of potential liability can be 

estimated. The Commission also discloses all claims for which payment is reasonably possible. 

There were no unasserted claims deemed reasonably probable and measurable, or reasonably possible, as 

of September 30, 2014 or 2013. 

Note 5· Intragovernmental Costs 

The Statement of Net Cost presents the Customer Protection Fund's results of operations for the activities 

to run the Whistleblower's Office and Consumer Outreach Office. 

Intragovernmental costs arise from the purchases of goods and services from other components of the 

Federal Government (including other CFTC funds). In contrast, public costs are those which arise from 

the purchase of goods and services from non-Federal entities. The Whistleblower's Office and Consumer 

Outreach Office incurred $217 thousand and $265 thousand in net intragovernmental costs and $1.5 

million and $695 thousand in net costs with the public for the periods ended September 30, 2014 and 

2013, respectively. 

10 
Supplementary Schedule 

Commodity Futures Trading Commission 

Customer Protection Fund 

Cash Flow Analysis 

For the Period from October 1, 2013 to September 30, 2014 

Cash as of October 1, 2013 

Cash flows from (used) in operating activities 

Paid Expenses for WhistleBiower Office and Consumer Outreach Office $ {1,681,219) 

lnteresteamedfrom investing in US Treasuries 35,630 

Net cash flows from operating activities 

Cash flows used in investing activities 

I nv estrnents in US Treasuries $ (175,000,000) 

Net cash flows from investing activities 

Cash flows from financing activities 

Transfers in from Civil Monetary Sanctions $ 176,110,604 

Net cash flows from financing activities 

Net increase/(decrease) in cash and cash equivalents 

Cash as of September 30, 2014 

11 

$ 4,983,233 

$ {1,645,589) 

$ (175,000,000) 

$ 176,110,604 

$ (534,985) 

$ 4,448,248 
Office of the 

Inspector General 

U.S. COMMODITY FUTURES TRADING COMMISSION 

Three Lafayette Centre · 

1155 21st Street, NW, Washington, DC 20581 

Telephone: (202) 418~5000 

Facsimile: (202) 418-5521 

www.cftc. gov 

MEMORANDUM 

TO: Mary-Jean Buhler 

FROM: Tony Baptiste 

DATE: October 29,2014 

SUBJECT: Draft Audit Opinion Customer Protection Fund 

Attached is a copy of the draft audit opinions on the Fiscal Year 2014 financial 

statements for the Customer Protection Fund conducted by Williams Adley & CompanyDe, LLP in behalf of the Office of the Inspector General. Please provide me with your 

comments on the draft audit opinion and we will include it with the final audit report. 

Management Response 

Thank you for giving us the opportunity to comment on the draft audit opinion. We 

have no comments. 

Mary Jean Buhler, 

Chief Financial Officer