U.S. COMMODITY FUTURES TRADING COMMISSION

OFFICE OF INSPECTOR GENERAL

Three Lafayette Centre

1155 21st Street, NW, Washington, DC 20581

1 

TO: Rostin Behnam, Chairman 

Kristin N. Johnson, Commissioner

Christy Goldsmith Romero, Commissioner

Summer K. Mersinger, Commissioner

Caroline D. Pham, Commissioner

FROM: Miguel A. Castillo, CPA, CRMA

Assistant Inspector General for Auditing

DATE: October 27, 2022 

SUBJECT: Audit of the CFTC Customer Protection Fund Financial Statements 

(Fiscal Year 2022) 

Annually the Office of the Inspector General (OIG) engages an independent public 

accountant (IPA) to perform a required audit of the Commodity Futures Trading 

Commission (CFTC) Customer Protection Fund (Fund) financial statements. We 

contracted Williams Adley & Company, LLP (Williams Adley) to audit the financial 

statements of the Fund as of September 30, 2022, and for the year then ended, to 

provide negative assurance on internal control and compliance with laws and 

regulations for financial reporting. We required that the audit be done in accordance 

with U.S. Generally Accepted Government Auditing Standards (GAGAS).

In its audit of the Fund, Williams Adley found:

• The CPF’s financial statements present fairly, in all material respects, CPF’s 

financial position as of September 30, 2022, and 2021, and its net cost of

operations, changes in net position, and budgetary resources for the fiscal years 

then ended in accordance with U.S. generally accepted accounting principles.

In connection with the contract, we reviewed Williams Adley’s report and related 

documentation and inquired of its representatives. Our review, as differentiated from 

an audit of the financial statements in accordance with GAGAS, was not intended to 

enable us to express, and we do not express, opinions on CFTC’s financial statements 

or internal control over financial reporting, or on compliance with laws and other 

matters. Williams Adley is responsible for the attached auditor’s report dated October 

25, 2022 and the conclusions expressed therein. However, our review disclosed no 

instances where Williams Adley did not comply, in all material respects, with GAGAS. 
2 

Attached is a copy of Williams Adley’s unmodified (clean) opinion. Please call me if 

any questions at (202) 418-5084.

Cc:

David Gillers, Chief of Staff

Bruce Fekrat, Chief Counsel

Joseph R. Cisewski, Chief of Staff and Senior Counsel 

Christopher Lucas, Chief of Staff and Counsel

Meghan Tente, Chief of Staff

Laura Gardy, Acting Executive Director

Janaka Perera, Acting Executive Director and Chief Information Officer

Robert Schwartz, General Counsel 

Joel Mattingley, Chief Financial Officer

Keith A. Ingram, Accounting Officer

John Rogers, Senior Advisor

A. Roy Lavik, Inspector General

Judith A. Ringle, Deputy Inspector General and Chief Counsel
WILLIAMS, ADLEY & COMPANY-DC, LLP

Certified Public Accountants/ Management Consultants

1030 15th Street, NW, Suite 350 West • Washington, DC 20005 • (202) 371-1397 • Fax: (202) 371-9161

www.williamsadley.com

Independent Auditor’s Report

Chairman

U.S. Commodity Futures Trading Commission

Inspector General

U.S. Commodity Futures Trading Commission

In our audits of the fiscal years 2022 and 2021 financial statements of the U.S. Commodity Futures 

Trading Commission Customer Protection Fund (CPF), we found:

• CPF’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 U.S. generally accepted 

accounting principles; 

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

procedures we performed1; and 

• no reportable noncompliance for fiscal year 2022 with provisions of applicable laws, 

regulations, contracts, and grant agreements we tested. 

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

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

control over financial reporting; (3) our report on compliance with laws, regulations, contracts, 

and grant agreements.

Report on the Financial Statements 

Opinion 

In accordance with Government Auditing Standards issued by the Comptroller General of the 

United States; and OMB Bulletin No. 22-01, Audit Requirements for Federal Financial 

Statements, we have audited CPF’s financial statements. CPF’s financial statements comprise the 

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

1 A material weakness is a deficiency, or 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. A deficiency in internal control 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 and correct, misstatements on a timely basis.

2 Other information consists of information included with the financial statements other than the auditor’s report. 
2

net position, and budgetary resources for the fiscal years then ended; and the related notes to the 

financial statements. In our opinion, CPF’s financial statements present fairly, in all material 

respects, CPF’s financial position as of September 30, 2022, and 2021, and its net cost 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 accordance with auditing standards generally 

accepted in the U.S. and the 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 

CPF and to meet our other ethical responsibilities, in accordance with the relevant ethical 

requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient 

and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

The CPF’s 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 and presenting other information included in CPF’s audited financial statements, and 

ensuring the consistency of that information with the audited financial statements; and (3) 

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 Responsibilities 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. 
3

• 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 CPF’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. 

Other Information 

CPF’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. Management is responsible for the other 

information included in CPF’s audited financial statements. The other information comprises the 

cash flow analysis for the period October 1, 2021 to September 30, 2022, 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 CPF’s financial statements, we considered CPF’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 deficiencies3or to express an opinion on the effectiveness of CPF’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. 

3 A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial 

reporting that is less severe than a material weakness, yet important enough to merit attention by those charged with 

governance.
4

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

We performed our procedures related to CPF’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 

The CPF 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 CPF’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 CPF’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 CPF’s internal control over financial reporting. 

Accordingly, we do not express an opinion on CPF’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 CPF’s internal 

control over financial reporting and the results of our procedures, and not to provide an opinion on 

the effectiveness of CPF’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 CPF’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. 
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 CPF. 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 

The CPF management is responsible for complying with laws, regulations, contracts, and grant 

agreements applicable to CPF.

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 CPF that have a direct effect on the determination of 

material amounts and disclosures in CPF’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 CPF. 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. 

Washington, District of Columbia

October 25, 2022
FINANCIAL STATEMENTS FOR THE

CUSTOMER PROTECTION FUND

REPORT TO CONGRESS

as of September 30, 2022

 Compilation Date: 10/18/2022 8:28 AM
U.S. COMMODITY FUTURES TRADING COMMISSION

CUSTOMER PROTECTION FUND REPORT TO CONGRESS: FINANCIAL STATEMENTS

Table of Contents

Financial Statements....................................................................................................................... 1

Notes to the Financial Statements................................................................................................... 5 

Supplementary Schedule: 

 Cash Flow Analysis.................................................................................15
Customer Protection Fund FY 2022 Financial Statements 

 COMMODITY FUTURES TRADING COMMISSION 1

COMMODITY FUTURES TRADING COMMISSION

CUSTOMER PROTECTION FUND

BALANCE SHEETS

AS OF SEPTEMBER 30, 2022 AND 2021

ASSETS

Intragovernmental:

Fund Balance With Treasury (Note 2) $ 18,162,873 $ 113,344,846

Federal Investments (Note 3) 286,000,000 -

Advances and Prepayments 7,396 7,844

Total Intragovernmental $ 304,170,269 $ 113,352,690

TOTAL ASSETS $ 304,170,269 $ 113,352,690

LIABILITIES

Intragovernmental:

Employer Contributions and Payroll Taxes Payable $ $ 39,233 35,166

Other Liabilities (Without Reciprocals) 5,861 6,589

Total Intragovernmental $ $ 45,094 41,755

With the Public:

Accounts Payable $ 1,647,537 $ 898,447

Federal Employee Benefits Payable:

 Unfunded Annual Leave 345,166 356,457

 Funded Employee Benefits 7,922 7,039

Other Liabilities:

 Accrued Funded Payroll 158,436 152,025

 Liability for Whistleblower Awards (Note 4) 45,000 203,970,000

Total With the Public $ 2,204,061 $ 205,383,968

Total Liabilities $ 2,249,155 $ 205,425,723

Contingent Liabilities (Note 5)

NET POSITION

Cumulative Results of Operations - Funds from Dedicated Collections $ 301,921,114 $ (92,073,033)

 Total Cumulative Results of Operations $ 301,921,114 $ (92,073,033)

Total Net Position $ 301,921,114 $ (92,073,033)

TOTAL LIABILITIES AND NET POSITION $ 304,170,269 $ 113,352,690

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

2022 2021
Customer Protection Fund FY 2022 Financial Statements 

 2 COMMODITY FUTURES TRADING COMMISSION

COMMODITY FUTURES TRADING COMMISSION

CUSTOMER PROTECTION FUND

STATEMENTS OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021 

2022 2021

NET COSTS OF OPERATIONS

Gross Costs $ 5,854,389 $ 209,154,891

TOTAL NET COST OF OPERATIONS $ 5,854,389 $ 209,154,891

The accompanying notes are an integral part of these financial statements.
Customer Protection Fund FY 2022 Financial Statements 

 COMMODITY FUTURES TRADING COMMISSION 3

COMMODITY FUTURES TRADING COMMISSION

CUSTOMER PROTECTION FUND

STATEMENTS OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021 

2022 2021

CUMULATIVE RESULTS OF OPERATIONS:

BEGINNING BALANCES $ (92,073,033) $ 117,027,972

Nonexchange Interest Revenue 1,350,097 53,886

Financing Sources Transferred in from Custodial Statement Collections 398,498,439 -

Net Cost of Operations (5,854,389) (209,154,891)

Net Change in Cumulative Results of Operations 393,994,147 (209,101,005)

TOTAL CUMULATIVE RESULTS OF OPERATIONS, ENDING $ 301,921,114 $ (92,073,033)

The accompanying notes are an integral part of these financial statements.
Customer Protection Fund FY 2022 Financial Statements 

 4 COMMODITY FUTURES TRADING COMMISSION

COMMODITY FUTURES TRADING COMMISSION

CUSTOMER PROTECTION FUND

STATEMENTS OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021 

BUDGETARY RESOURCES

 Unobligated Balance from Prior Year Budget Authority, Net (Note 6A) $ 111,143,311 $ 119,887,663

 Spending Authority from Offsetting Collections 377,057,169 50,815

TOTAL BUDGETARY RESOURCES $ 488,200,480 $ 119,938,478

STATUS OF BUDGETARY RESOURCES

 New Obligations and Upward Adjustments $ 209,525,546 $ 8,862,632

Unobligated Balance, End of Year

Apportioned, Unexpired Accounts 278,674,934 111,075,846

Unobligated Balance, End of Year (Total) 278,674,934 111,075,846

TOTAL BUDGETARY RESOURCES $ 488,200,480 $ 119,938,478

OUTLAYS, NET

Outlays, Net (190,818,027) 9,006,707

AGENCY OUTLAYS, NET $ (190,818,027) $ 9,006,707

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

2022 2021
Customer Protection Fund FY 2022 Financial Statements 

 COMMODITY FUTURES TRADING COMMISSION 5

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021 

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. Congress created the CFTC in 1974 under the authorization 

of the Commodity Exchange Act (CEA) with the mandate to regulate commodity futures and option 

markets in the United States. 

The “Dodd-Frank Wall Street Reform and Consumer Protection Act” (the Dodd-Frank Act, or the Act) 

significantly expanded the powers and responsibilities of the CFTC. According to Section 748 of the Act, 

there is established in the U.S. Department of the Treasury (Treasury) 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, to pay awards to 

whistleblowers; and fund 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. They are presented in accordance with the form and 

content requirements contained in OMB Circular A-136, Financial Reporting Requirements. 

The financial statements have been prepared in all material respects in conformity with U.S. generally 

accepted accounting principles (GAAP), as prescribed for the Federal government by the Federal 

Accounting Standards Advisory Board (FASAB). The application and methods for applying these 

principles are appropriate for fairly presenting the entity’s assets, liabilities, financial position, net cost of 

operations, changes in net position, and budgetary resources. 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.
Customer Protection Fund FY 2022 Financial Statements 

 6 COMMODITY FUTURES TRADING COMMISSION

The books and records of the Fund, which is a component of the Commission, 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 budgetary 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.

The Balance Sheets present the financial position of the Fund. The Statements of Net Cost present the 

Fund’s operating results and the Statements of Changes in Net Position display the changes in the Fund’s 

net position. The Statements of Budgetary Resources present the sources, status, and uses of the Fund’s 

resources and follow the rules for the Budget of the U.S. Government. 

The Fund’s transactions have been classified according to the type of entity with whom the transactions 

were made. Intragovernmental assets and liabilities are those from or to other federal entities. 

Intragovernmental costs are payments or accruals to other federal entities for goods and/or services 

provided. The CFTC does not transact business among its own operating units, and therefore, intra-entity 

eliminations were not needed.

C. Budgetary Resources and Status

The Dodd-Frank Act provides the Fund with permanent authority that is available without further 

appropriation or fiscal year limitation for the purpose of funding awards to whistleblowers and the 

operations of the Whistleblower Office and the Customer Education and Outreach Branch. However, prior 

to using the funds each fiscal year, the CFTC is required to have the funds apportioned by OMB. 

The Fund is financed by transferring eligible monetary sanctions collected by the CFTC to the Fund unless 

the available balance of the fund exceeds $100,000,000 on the day of collection. The CFTC tracks the 

available balance of the Fund on a daily basis to determine when the Fund requires replenishment. 

The Fund’s budgetary resources for FY 2022 consist of:

• Unobligated balances of resources brought forward from the prior year,

• Recoveries of obligations made in prior years, and

• New resources in the form of spending authority from offsetting collections.

D. Fund Balance with Treasury 

Fund Balance with Treasury is the aggregate amount of the Fund’s balance with Treasury. The balance in 

the Fund is available to pay current liabilities and finance authorized operations. 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. Additional information regarding Fund Balance 

with Treasury is provided in Note 2. Fund Balance with Treasury.
Customer Protection Fund FY 2022 Financial Statements 

 COMMODITY FUTURES TRADING COMMISSION 7

E. Investments 

The CFTC is authorized to invest the portion of the Fund that is not, in the Commission’s judgment, 

required to meet the current needs of the Fund. The Commission invests available funds through the U.S. 

Department of the Treasury’s Bureau of the Fiscal Service. Investments are carried at their historical cost 

basis which approximates fair value due to their short-term nature.

Interest earned on the investments is a component of the Fund and is available to be used for expenses of 

the Fund. Additional information regarding investments is provided in Note 3. Investments.

F. General Property, Plant and Equipment, Net

The Commission capitalizes assets annually if they have useful lives of at least two years and an individual 

value of $25,000 or more. Bulk or aggregate purchases are capitalized when the individual useful lives 

are at least two years and the purchase is a value of $25,000 or more. Property, plant and equipment that 

do not meet the capitalization criteria are expensed when acquired. Depreciation for equipment and 

amortization for software is computed on a straight-line basis using a 5-year life. The Commission’s assets 

are valued net of accumulated depreciation or amortization.

As of September 30, 2022, the Commission has capitalized software costs for development of a website for 

the CFTC Whistleblower Office. This investment totaling $214,824 has been fully amortized but is still in 

use as of September 30, 2022. 

G. Liabilities

The Fund’s liabilities include 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. The Fund’s liabilities are considered current liabilities. In 

addition to liabilities covered by budgetary resources, the Fund’s liabilities also include those not yet 

covered by budgetary resources. The Fund’s liabilities not yet covered by budgetary resources consist of 

unfunded annual leave and the liability for whistleblower awards for which a preliminary determination 

has been made and communicated to the whistleblower(s) but for which a final award has not yet been 

issued.

H. Accounts Payable

Accounts payable consists primarily of liabilities for whistleblower awards finalized by the Commission 

but not yet paid and amounts due for goods and services received as of the end of the reporting period but 

not yet paid.

I. Accrued Payroll and Benefits and Annual Leave Liability

The salaries and operating expenses of the Whistleblower’s Office and Customer Education and Outreach 

Branch are funded through the Fund. The accrued payroll liability represents amounts for salaries and 
Customer Protection Fund FY 2022 Financial Statements 

 8 COMMODITY FUTURES TRADING COMMISSION

benefits owed for the time since the payroll was last paid through the end of the reporting period. Total 

accrued payroll is composed of amounts to be paid to Fund employees as well as the related 

intragovernmental payable for employer contributions and payroll taxes. The annual leave liability is the 

amount owed to employees for unused annual leave as of the end of the reporting period. At the end of 

each quarter, the balance in the accrued annual leave account is adjusted to reflect current balances and 

pay rates. Sick leave and other types of non-vested leave are expensed as taken. 

J. Net Position

The Fund operates solely through offsetting collections and therefore does not record unexpended 

appropriations. The Fund’s net position consists of cumulative results of operations that represent the 

excess of financing sources over expenses since inception. Cumulative results of operations are derived 

from the net effect of capitalized assets, expenses, and revenue. The balance in cumulative results of 

operations can be negative when unfunded expenses exceed financing sources received as of the end of 

the reporting period. 

K. Financing Sources 

As disclosed in Note 1A, Congress enacted the Dodd-Frank Act that provides the CFTC with the authority 

to establish the Fund. Per the Act, the Fund is replenished through monetary sanctions resulting from 

judicial or administrative action brought by the Commission under the Commodity Exchange Act unless 

the balance of the Fund at the time the monetary judgment is collected exceeds $100,000,000. All 

collections are first deposited into the CFTC’s Civil Monetary Penalties, Fines and Administrative Fees 

receipt account. Eligible collections are then transferred from the receipt account into the Fund until the 

balance of the Fund exceeds $100,000,000. Eligible collections of $398,498,439 were transferred into the 

Fund during FY 2022. These collections are reported as a financing source in the Fund’s Statements of 

Changes in Net Position. 

L. Use of Management Estimates

The preparation of the accompanying financial statements in accordance with accounting principles 

generally accepted in the United States of America requires management to make certain estimates and 

assumptions that directly affect the results of reported assets, liabilities, revenues, and expenses. Actual 

results could differ from these estimates.

In addition to accruals for goods and services and whistleblower liabilities, management estimates were 

used to calculate overhead expenses in the amount of $925,981 and $1,156,757 that were allocated to the 

Fund for the years ended September 30, 2022, and 2021. These amounts were derived by multiplying 

management’s estimated overhead cost per full-time equivalent (FTE) by the number of FTE charged to 

the Fund.
Customer Protection Fund FY 2022 Financial Statements 

 COMMODITY FUTURES TRADING COMMISSION 9

M. Reconciliation of Net Outlays and Net Cost of Operations

In accordance with OMB Circular A-136, the Fund reconciles its budgetary outlays with its net cost of 

operations (see Note 7).

N. 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 Notes 1A and 1K for a description of the purpose of the Fund 

and its authority to use applicable financing sources. 

No new legislation was enacted as of September 30, 2022, that significantly changed the purpose of the 

dedicated collections or redirected a material portion of the accumulated balance. On July 6, 2021, Public 

Law 117-25 set aside $10,000,000 from the Fund in a separate account to fund non-whistleblower costs 

when the unobligated balance of the Fund is insufficient. The $10,000,000 will be available until the 

account expires, at which time all unobligated amounts will be returned to the Fund.

In October 2021, the Commission issued a final whistleblower award of nearly $200,000,000, resulting in 

an obligation that exceeded the available balance of the Fund. The Commission has the authority to make 

obligations for whistleblower awards without taking into consideration the available balance of the Fund 

under the provisions of the Dodd-Frank Act. As a result, the Commission obligated non-whistleblower 

costs from this separate account until the negative balance in the Fund was offset by current year 

collections of eligible sanctions. 

O. 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 agency financial 

statements.

P. Limitations of the Financial Statements

The 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 Dodd-Frank 

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.
Customer Protection Fund FY 2022 Financial Statements 

 10 COMMODITY FUTURES TRADING COMMISSION

Q. Reclassifications 

Available and unavailable Fund Balance with Treasury amounts reported in the FY 2021 Note 2 have been 

reclassified to disclose amounts apportioned for subsequent quarters as “Unavailable.” Narrative has 

been added to Note 2 to disclose the components contained within each of these categories, as required by 

OMB Circular A-136. In addition, Note 6B (Undelivered Orders) and Note 7 (Reconciliation of Total Net 

Cost of Operations to Net Outlays) have been presented for the first time; prior year balances have been 

presented to provide comparative information and enhance the reader’s understanding of the Fund’s 

financial statements.

Note 2. Fund Balance with Treasury

A. Reconciliation to Treasury

There are no differences between the fund balance reflected in the Fund’s Balance Sheet and the balance 

in the Treasury account. 

B. Fund Balance with Treasury

Fund Balance with Treasury as of September 30, 2022, and 2021, consisted of the following: 

2022 2021

Unobligated Fund Balance

Available $ 7,037,803 $ 85,091,405

Unavailable 9,111,823 26,667,767

Obligated Balance Not Yet Disbursed 2,013,247 1,585,674

TOTAL FUND BALANCE WITH TREASURY $ 18,162,873 $ 113,344,846

Obligated and unobligated balances reported for the status of Fund Balance with Treasury differ from the 

amounts reported in the Statement of Budgetary Resources due to the fact that budgetary balances are 

supported by amounts other than Fund Balance with Treasury, such as amounts invested in Treasury 

securities. 

Available unobligated balances as of September 30, 2022, and 2021, include amounts available for new 

obligations of $7,037,803 and $84,408,079, respectively. Available unobligated balances as of September

30, 2021, also include temporarily sequestered funds that are available for investment but not obligation

of $683,326. 

Unavailable unobligated balances as of September 30, 2022, and 2021, include amounts that have been 

apportioned for use in subsequent reporting periods of $229,846 and $16,667,767, respectively, as well as

funds that have been set aside in a separate account to fund non-whistleblower costs only when the 

unobligated balance of the Fund is insufficient of $8,881,977 and $10,000,000, respectively. 
Customer Protection Fund FY 2022 Financial Statements 

 COMMODITY FUTURES TRADING COMMISSION 11

Note 3. Investments 

The CFTC invests amounts deposited in the Fund in Treasury one-day certificates of indebtedness that 

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 interest rates or prices of the one-day certificates of indebtedness are calculated based on market 

yields of Treasury financial instruments issued and trading in the Secondary Market (exchanges and overthe-counter markets where securities are bought and sold subsequent to original issuance). The 

Commission may invest in other short-term or long-term Treasury securities at management’s discretion

During FY 2021, the Commission redeemed $117,000,000 in investments to make funds readily available 

for the needs of the Fund. Such redemptions resulted in the liquidation of investments owned at 

September 30, 2020. In FY 2022, the Commission began investing again once there were sufficient funds 

to satisfy all outstanding whistleblower obligations. The Commission’s investments as of September 30, 

2022, were $286,000,000 and related nonexchange interest revenue for the years ended September 30, 

2022 and 2021, was $1,350,097 and $53,886, respectively. 

Intragovernmental Investments in Treasury Securities

The Federal Government does not set aside assets to pay future claims or other expenditures associated 

with funds from dedicated collections deposited into the Customer Protection Fund. The dedicated cash 

receipts collected by the Commission as a result of monetary sanctions are deposited in the Treasury, 

which uses the cash for general Government purposes. As discussed above and in Note 1E, the 

Commission invests the majority of these funds in Treasury securities. These Treasury securities are an 

asset of the Commission and a liability of the Treasury. Because the Commission and the Treasury are 

both components of the Government, these assets and liabilities offset each other from the standpoint of 

the Government as a whole. For this reason, the investments presented by the Commission do not 

represent an asset or a liability in the U.S. Government-wide financial statements.

Treasury securities provide the Commission with authority to draw upon the Treasury to pay future 

claims or other expenditures. When the Commission requires redemption of these securities to make 

expenditures, the Government finances those expenditures out of accumulated cash balances, by raising 

taxes or other receipts, by borrowing from the public or repaying less debt, or by curtailing other 

expenditures. This is the same manner in which the Government finances all expenditures.
Customer Protection Fund FY 2022 Financial Statements 

 12 COMMODITY FUTURES TRADING COMMISSION

Note 4. Liability for Whistleblower Awards

As mentioned in Note 1A, the 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 $1,000,000 are imposed. 

Whistleblowers are entitled to appeal any decisions by the Commission in regards to claims made against 

the Fund. 

At the time the whistleblower voluntarily provides information to CFTC, they have no guarantee or 

promise that the Commission will exchange funds in return for that information. In accordance with 

federal accounting standards, the Commission records liabilities for these nonexchange transactions when 

they are due and payable. The Commission therefore records a liability for pending whistleblower 

payment after the whistleblower has been formally notified of an award and the related sanction, or some 

portion thereof, has been collected. The liability will be paid when the appeal period has ended, the 

whistleblower has provided necessary banking information, and, in cases where the related sanction was 

collected in a prior year and subsequently swept by Treasury at year-end, the award will be paid as future 

collections become available. 

As of September 30, 2022, and September 30, 2021, the Commission recorded liabilities for pending 

payments to whistleblowers of approximately $45,000 and $203,970,000, respectively. During FY 2022, 

the Commission disbursed $203,323,824 in whistleblower awards, which primarily consisted of 

$203,300,000 from pending payments at the end of FY 2021. Accounts payable as of September 30, 

2022, and 2021, includes $626,476 and $1,476, respectively, for awards that have been finalized as of the 

end of the reporting period. 

As of September 30, 2022, the Commission has 16 awards in pending or paid status for which the full 

collections have not been received, including four final $0 awards for which no collections have been 

received to date. While additional collections on these matters are considered remote, the Commission 

would be required to pay whistleblowers an additional $28,281,924 if all collections were received on

these matters. In addition to the pending and potential payments to whistleblowers, the Commission had

30 additional whistleblower claims currently under review as of September 30, 2022. These additional 

claims, depending on whether the whistleblowers are determined to be eligible for an award and the 

related sanctions have been collected, could result in total future payments ranging from $0 to 

$579,038,350. 

Note 5. Contingent Liabilities

The Fund records contingent liabilities for legal cases in which payment has been deemed probable and 

for which the amount of potential liability has been estimated, including judgments that have been issued 

against the Fund and which have been appealed. Additionally, the Fund discloses legal matters in which 
Customer Protection Fund FY 2022 Financial Statements 

 COMMODITY FUTURES TRADING COMMISSION 13

an unfavorable outcome is reasonably possible. There were no legal matters deemed probable or 

reasonably possible as of September 30, 2022. 

Note 6. Statements of Budgetary Resources

A. Adjustments to Unobligated Balance Brought Forward, October 1

The Unobligated Balance Brought Forward from the prior fiscal year has been adjusted for recoveries of 

prior year paid and unpaid obligations. The Adjustments to Unobligated Balance Brought Forward, 

October 1, as of September 30, 2022, and 2021, consisted of the following:

Unobligated Balance Brought Forward, October 1 $ 111,075,846 $ 118,341,306

Recoveries of Prior Year Obligations 67,465 1,546,357

UNOBLIGATED BALANCE FROM PRIOR YEAR BUDGET AUTHORITY, NET $ 111,143,311 $ 119,887,663

2022 2021

B. Undelivered Orders

The amount of budgetary resources obligated for undelivered orders as of September 30, 2022, and 2021, 

consisted of the following:

2022 2021

Undelivered Orders - Federal

 Paid $ 7,396 $ 7,844

 Unpaid 36,914 36,085

 Total Undelivered Orders - Federal $ 44,310 $ 43,929

Undelivered Orders - Non-Federal

 Paid - - 

 Unpaid 117,344 450,324

 Total Undelivered Orders - Non-Federal $ 117,344 $ 450,324

TOTAL UNDELIVERED ORDERS $ 161,654 $ 494,253

The amount of undelivered orders represents the value of unpaid and paid obligations recorded during 

the fiscal year, and upward and downward adjustments of obligations that were originally recorded in a 

prior fiscal year.

C. Explanations of Differences between the Statement of Budgetary Resources and Budget 

of the United States Government

The Fund had no material differences between the amounts reported in the Statement of Budgetary 

Resources dated September 30, 2021, and the actual amounts reported in the Budget of the U.S. 

Government for FY 2021. The Budget of the U.S. Government with actual numbers for FY 2022 has not 

yet been published. The expected publish date is February 2023. A copy of the Budget may be obtained 

from OMB’s website.
Customer Protection Fund FY 2022 Financial Statements 

 14 COMMODITY FUTURES TRADING COMMISSION

Note 7. Reconciliation of Total Net Cost of Operations to Net Outlays

Budgetary and financial accounting information differ. Budgetary accounting is used for planning and 

control purposes and relates to both the receipt and use of cash, as well as reporting the federal deficit. 

Financial accounting is intended to provide a picture of the government's financial operations and 

financial position so it presents information on an accrual basis. The accrual basis includes information 

about costs arising from the consumption of assets and the incurrence of liabilities. The reconciliation of

net outlays, presented on a budgetary basis, and the net cost, presented on an accrual basis, provides an 

explanation of the relationship between budgetary and financial accounting information. This 

reconciliation serves not only to identify costs paid for in the past and those that will be paid in the future, 

but also to assure integrity between budgetary and financial accounting.

The schedule presented in this note reconciles the Total Net Cost of Operations reported in the 

Statements of Net Cost (accrual basis) with Net Outlays reported in the Statements of Budgetary 

Resources (budgetary basis). Differences between net costs and net outlays are primarily the result of 

timing differences and paying for assets that are used over more than one reporting period. 

TOTAL NET COST OF OPERATIONS $ 5,854,389 $ 209,154,891

$ - $ (7,161)

 Accounts Receivable - (842)

 Decrease in Advances and Prepayments (448) (1,841)

 (749,090) 335,582

 (10,633) 18,494

 203,925,000 (200,342,973)

 11,291 (95,557)

$ 203,176,120 $ (200,094,298)

Nonexchange Interest Revenue (Excluding Interest Receivable) (1,350,097) (53,886)

Financing Sources Transferred in from Custodial Statement Collections (398,498,439) - 

$ (399,848,536) $ (53,886)

$ (190,818,027) $ 9,006,707

2022 2021

Components of Net Cost That Are Not Part of Net Outlays:

Depreciation and Amortization of Property, Plant, and Equipment

Increase/(Decrease) in Assets:

(Increase)/Decrease in Liabilities:

 Accounts Payable

 Salaries and Benefits

Total Components of Net Outlays That Are Not Part of Net Cost

AGENCY OUTLAYS, NET

 Liability for Whistleblower Awards

 Unfunded Annual Leave

Total Components of Net Cost That Are Not Part of Net Outlays

Components of Net Outlays That Are Not Part of Net Cost:
Customer Protection Fund FY 2022 Financial Statements 

 COMMODITY FUTURES TRADING COMMISSION 15

Supplementary Schedule

Cash flows from operating activities

 Paid Expenses for Whistleblower and Consumer Education and Outreach Offices $ (209,088,982)

 Refunds collected 58,473

   Net cash flows from operating activities $ (209,030,509)

Cash flows from investing activities

 Purchases of US Treasury Securities $ (286,000,000)

 Interest collected from investing in US Treasury Securities 1,350,097

  Net cash flows from investing activities $ (284,649,903)

Cash flows from financing activities

 Transfers in from Civil Monetary Sanctions $ 398,498,439

  Net cash flows from financing activities $ 398,498,439

Net increase/(decrease) in cash and cash equivalents $ (95,181,973)

BEGINNING CASH AS OF OCTOBER 1, 2021 113,344,846

ENDING CASH AS OF SEPTEMBER 30, 2022 $ 18,162,873

Commodity Futures Trading Commission

Customer Protection Fund

Cash Flow Analysis

For the Period from October 1, 2021 to September 30, 2022