U.S. COMMODITY FUTURES TRADING COMMISSION 

OFFICE OF INSPECTOR GENERAL 

Three Lafayette Centre 

1155 21st Street, NW, Washington, DC 20581 

TO: Rostin Behnam, Chairman 

Kristin N. Johnson, Commissioner 

Christy Goldsmith Romero, Commissioner 

Summer K. Mersinger, Commissioner 

Caroline D. Pham, Commissioner 

FROM: Dr. Brett M. Baker 

Acting Inspector General 

DATE: October 30, 2023 

SUBJECT: Audit of the CFTC Customer Protection Fund Financial Statements 

(Fiscal Year 2023) 

We contracted with the independent public accounting firm of Williams Adley & 

Company, LLP (Williams Adley) to audit the financial statements of Commodity Futures 

Trading Commission (CFTC) Customer Protection Fund (Fund) financial statements as 

of and for the fiscal years ended September 30, 2023, and 2022, to provide a report on 

internal control over financial reporting, report 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 (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, 2023, and 2022, 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. 

• Maintained, in all material respects, effective internal control over financial 

reporting; and 

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

Williams Adley is responsible for the attached auditor’s report dated October 25, 2023 

and the conclusions expressed therein. We do not express opinions on CFTC’s 

financial statements or internal control over financial reporting or conclusions on 

compliance and other matters. 

1 
 

 

 

 

 

 

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

any questions at (202) 557-8486. 

Cc: 

David Gillers, Chief of Staff 

Tamika Bent, Chief Counsel 

Yevgeny Sharago, Senior Counsel and Policy Advisor 

Scott Lee, Senior Counsel and Policy Advisor 

Chris Lucas, Chief of Staff Counsel 

Meghan Tente, Chief of Staff 

Jeffery Sutton, Executive Director 

Janaka Perera, Chief Information Officer 

Robert Schwartz, General Counsel 

Joel Mattingley, Chief Financial Officer 

Keith A. Ingram, Accounting Officer 

John Rogers, Acting Chief, Business Operations 

Judith A. Ringle, Deputy Inspector General and Chief Counsel 

Miguel A. Castillo, Assistant Inspector General for Auditing 

2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2023 and 2022 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, 2023, and 2022, 

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 2023 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; and (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. 24-01, 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, 2023, and 2022; 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, CPF’s financial statements present fairly, in all material respects, CPF’s financial 

position as of September 30, 2023, and 2022, and its net cost of operations, changes in net position, 

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. 

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 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 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 the 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 (1) obtain reasonable assurance about whether the financial statements as a whole 

are free from material misstatement, whether due to fraud or error, and (2) 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 

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. 

• 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, 2022 to September 30, 2023, 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 

deficiencies3 or 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. 

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 and Office of Management and Budget 

audit guidance4

. 

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 Office of Management and Budget (OMB) Bulletin No. 24-01, Audit Requirement for Federal Financial Statements, 

issued on October 19, 2023. According to the guidance, for those controls that have been suitably designed and 

implemented, the auditor should perform sufficient tests of such controls to conclude on whether the controls are 

operating effectively (i.e., sufficient tests of controls to support a low level of assessed control risk). OMB audit 

guidance does not require the auditor to express an opinion on the effectiveness of internal control. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2023, 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 internal control over financial 

reporting 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. 

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. 

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 2023 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. 

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, 2023 
 

FINANCIAL STATEMENTS FOR THE 

CUSTOMER PROTECTION FUND 

REPORT TO CONGRESS 

as of September 30, 2023 

Compilation Date: 10/23/2023 9:42 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 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

Customer Protection Fund FY 2023 Financial Statements 

COMMODITY FUTURES TRADING COMMISSION 

CUSTOMER PROTECTION FUND 

BALANCE SHEETS 

AS OF SEPTEMBER 30, 2023 AND 2022 

2023 2022 

ASSETS 

Intragovernmental: 

Fund Balance With Treasury (Note 2) 

Inv estments, Net:

 Federal Inv estments (Note 3) 

 Interest Receiv able - Inv estments 

Adv ances and Prepay ments 

Total Intragovernmental 

$ 

$ 

32,185,446 

279,400,000 

41,910 

9,379 

311,636,735 

$ 

$ 

18,162,873 

286,000,000

-

7,396 

304,170,269 

TOTAL ASSETS $ 311,636,735 $ 304,170,269 

LIABILITIES 

Intragovernmental: 

Employ er Contributions and Pay roll Tax es Pay able 

Other Liabilities (Without Reciprocals) 

Total Intragovernmental 

$ 

$ 

34,537 

5,156 

39,693 

$ 

$ 

39,233 

5,861 

45,094 

With the Public: 

Accounts Pay able 

Federal Employ ee Benefits Pay able:

 Unfunded Annual Leav e 

 Funded Employ ee Benefits 

Other Liabilities:

$ 16,474,354 

217,592 

6,765 

$ 1,647,537 

345,166

7,922 

 Accrued Funded Pay roll 

 Liability for Whistleblower Awards (Note 4) 

Total With the Public $ 

141,562 

31,464,775 

48,305,048 $ 

158,436

45,000 

2,204,061 

Total Liabilities $ 48,344,741 $ 2,249,155 

Contingent Liabilities (Note 5) 

NET POSITION 

Cumulativ e Results of Operations - Funds from Dedicated Collections 

 T otal Cumulative Results of Operations 

$ 

$ 

263,291,994 

263,291,994 

$ 

$ 

301,921,114

301,921,114 

Total Net Position 

TOTAL LIABILITIES AND NET POSITION 

$ 

$ 

263,291,994 

311,636,735 

$ 

$ 

301,921,114 

304,170,269 

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

COMMODITY FUTURES TRADING COMMISSION 1 
 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

COMMODITY FUTURES TRADING COMMISSION 

CUSTOMER PROTECTION FUND 

STATEMENTS OF NET COST 

FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022 

2023 2022 

NET COSTS OF OPERATIONS 

Gross Costs $ 51,831,230 $ 5,854,389 

TOTAL NET COST OF OPERATIONS $ 51,831,230 $ 5,854,389 

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

2 COMMODITY FUTURES TRADING COMMISSION 
 

 

 

 

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

COMMODITY FUTURES TRADING COMMISSION 

CUSTOMER PROTECTION FUND 

STATEMENTS OF CHANGES IN NET POSITION 

FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022 

2023 2022 

CUMULATIVE RESULTS OF OPERATIONS: 

BEGINNING BALANCES 

Nonexchange Interest Rev enue 

Financing Sources Transferred in from Custodial Statement Collections 

Net Cost of Operations 

Net Change in Cumulative Results of Operations 

TOTAL CUMULATIVE RESULTS OF OPERATIONS, ENDING 

$ 

$ 

301,921,114 

13,202,110 

-

(51,831,230) 

(38,629,120) 

263,291,994 

$ 

$ 

(92,073,033) 

1,350,097 

398,498,439 

(5,854,389) 

393,994,147 

301,921,114 

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

COMMODITY FUTURES TRADING COMMISSION 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

COMMODITY FUTURES TRADING COMMISSION 

CUSTOMER PROTECTION FUND 

STATEMENTS OF BUDGETARY RESOURCES 

FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022 

2023 2022

BUDGETARY RESOURCES

 Unobligated Balance from Prior Year Budget Authority, Net (Note 6A) $ 278,676,220 $ 111,143,311

 Spending Authority from Offsetting Collections 12,410,069 377,057,169 

TOTAL BUDGETARY RESOURCES $ 291,086,289 $ 488,200,480 

STATUS OF BUDGETARY RESOURCES

 New Obligations and Upward Adjustments $ 20,845,014 $ 209,525,546 

Unobligated Balance, End of Year 

Apportioned, Unexpired Accounts 266,318,206 278,674,934 

Unapportioned, Unexpired Accounts 3,923,069 -

Unobligated Balance, End of Year (Total) 270,241,275 278,674,934 

TOTAL BUDGETARY RESOURCES $ 291,086,289 $ 488,200,480 

OUTLAYS, NET 

Outlays, Net (7,422,573) (190,818,027) 

AGENCY OUTLAYS, NET $ (7,422,573) $ (190,818,027) 

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

4 COMMODITY FUTURES TRADING COMMISSION 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022 

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. 

COMMODITY FUTURES TRADING COMMISSION 5 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

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 2023 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. 

6 COMMODITY FUTURES TRADING COMMISSION 
 

 

 

 

 

 

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

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, 2023, 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, 2023. 

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 

COMMODITY FUTURES TRADING COMMISSION 7 
 

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

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. These collections are reported as a financing source in the 

Fund’s Statements of Changes in Net Position. No eligible collections have been transferred into the Fund 

during FY 2023 because the available balance of the Fund exceeds $100,000,000. 

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 $938,000 and $925,981 that were allocated to the 

Fund for the years ended September 30, 2023, and 2022. 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. 

8 COMMODITY FUTURES TRADING COMMISSION 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

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, 2023, that significantly changed the purpose of the 

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

Law (P.L.) 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. This account is available for eligible costs 

until it expires, at which time all unobligated amounts will be returned to the Fund. On December 29, 

2022, P.L. 117-328 extended the availability of the separate account to October 1, 2024, and provided the 

Commission with discretionary authority to transfer an additional $10,000,000 from the Fund to the 

separate account, if needed. 

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 in FY 2022 until the negative balance in the Fund was offset by eligible 

collections. 

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 

COMMODITY FUTURES TRADING COMMISSION 9 
Customer Protection Fund FY 2023 Financial Statements 

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

Fund, a single fund within the CFTC. 

Q. Reclassification 

Available and unavailable amounts reported in the FY 2022 Note 2 have been reclassified to apply 

invested amounts against budgetary authority that is available for investment but unavailable for 

obligation before applying against budgetary authority that is available for obligations. 

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, 2023, and 2022, consisted of the following: 

2023 2022 

 

 

 

 

 

 

 

 

 

 

 

U nobligated Fund Balance 

Av ailable $ 2,261,051 $ 7,267,649 

U nav ailable 12,805,046 8,881,977 

Obligated Balance Not Yet Disbursed 17,119,349 2,013,247 

T OTAL FUND BALANCE WIT H T REASURY $ 32,185,446 $ 18,162,873 

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, 2023, and 2022, consist of amounts available for new 

obligations of $2,261,051 and $7,267,649, respectively. 

Unavailable unobligated balances as of September 30, 2023, and 2022, include 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. Unavailable unobligated balances as of September 30, 2023, also 

include unapportioned amounts of $3,923,069 due to actual interest earned in excess of what has been 

apportioned for use. 

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 

10 COMMODITY FUTURES TRADING COMMISSION 
 

 

 

 

 

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

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 the fourth quarter of 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, 2023, and 2022, were $279,400,000 and $286,000,000, respectively. Related 

nonexchange interest revenue for the years ended September 30, 2023, and 2022, was $13,202,110 and 

$1,350,097, respectively. The significant increase in interest revenue was due to a full twelve months of 

interest earned in FY 2023 versus two and a half months of interest earned in FY 2022 plus a two-fold 

increase in the average interest rate earned (4.6 percent in FY 2023 versus 2.3 percent in FY 2022). 

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. 

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 

COMMODITY FUTURES TRADING COMMISSION 11 
 

 

 

 

 

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

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, 2023, and 2022, the Commission recorded liabilities for pending payments to 

whistleblowers of approximately $31,464,775 and $45,000, respectively. Of the $31,464,775 pending 

payments as of September 30, 2023, a whistleblower award of approximately $18,000,000 was issued as 

final on October 12, 2023. 

During FY 2023, the Commission disbursed $670,000 in whistleblower awards, which consisted of 

$45,000 from pending payments and $625,000 from accounts payable at the end of FY 2022. Accounts 

payable as of September 30, 2023, and 2022, includes $15,628,065 and $626,476, respectively, for 

awards that have been finalized as of the end of the reporting period. 

As of September 30, 2023, the Commission has 16 awards in pending or paid status for which the full 

collections have not been received, including five 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 

29 additional whistleblower claims currently under review as of September 30, 2023. 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 

$1,020,561,061. 

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 

12 COMMODITY FUTURES TRADING COMMISSION 
 

 

 

 

 

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

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

reasonably possible as of September 30, 2023. 

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, 2023, and 2022, consisted of the following: 

U nobligated Balance Brought Forw ard, October 1 $ 278,674,934 $ 111,075,846 

Recov eries of Prior Year Obligations 1,286 67,465 

UNOBLIGAT ED BALANCE FROM PRIOR YEAR BUDGET AUT HORIT Y, NET $ 278,676,220 $ 111,143,311 

2023 2022 

B. Undelivered Orders 

The amount of budgetary resources obligated for undelivered orders as of September 30, 2023, and 2022, 

consisted of the following: 

2023 2022 

Undelivered Orders - Federal

 Paid $ 9,379 $ 7,396 

 Unpaid 26,894 36,914

 T otal Undelivered Orders - Federal $ 36,273 $ 44,310 

Undelivered Orders - Non-Federal

 Paid - -

 Unpaid 430,081 117,344

 T otal Undelivered Orders - Non-Federal $ 430,081 $ 117,344 

T OT AL UNDELIVERED ORDERS $ 466,354 $ 161,654 

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, 2022, and the actual amounts reported in the Budget of the U.S. 

Government for FY 2022. The Budget of the U.S. Government with actual numbers for FY 2023 has not 

yet been published. The expected publish date is February 2024. A copy of the Budget may be obtained 

from OMB’s website. 

COMMODITY FUTURES TRADING COMMISSION 13 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

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. 

2023 2022 

TOTAL NET COST OF OPERATIONS $ 51,831,230 $ 5,854,389

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

Increase/(Decrease) in Assets: 

 Decrease in Advances and Prepayments 

(Increase)/Decrease in Liabilities:

 Accounts Payable

 Salaries and Benefits 

 Liability for Whistleblower Awards

 Unfunded Annual Leave 

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

-

(14,826,817) 

23,432 

(31,419,775) 

127,574 

(46,095,586) $ 

(448) 

(749,090) 

(10,633) 

203,925,000 

11,291 

203,176,120 

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

Increase in Advances and Prepayments 

Nonexchange Interest Revenue (Excluding Interest Receiv able) 

Financing Sources Transferred in from Custodial Statement Collections 

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

1,983 

(13,160,200) 

-

(13,158,217) $ 

-

(1,350,097) 

(398,498,439) 

(399,848,536) 

AGENCY OUTLAYS, NET $ (7,422,573) $ (190,818,027) 

14 COMMODITY FUTURES TRADING COMMISSION 
 

 

 

   

 

 

   

 

 

 

 

 

Customer Protection Fund FY 2023 Financial Statements 

Commodity Futures Trading Commission 

Customer Protection Fund 

Cash Flow Analysis 

For the Period from October 1, 2022 to September 30, 2023 

Cash flows from operating activities

 Paid Expenses for Whistleblower and Consumer Education and Outreach Offices $ (5,737,827)

 Refunds collected 200

 Net cash flows from operating activities $ (5,737,627) 

Cash flows from investing activities

 Redemptions of US Treasury Securities $ 6,600,000

 Interest collected from investing in US Treasury Securities 13,160,200 

Net cash flows from investing activities $ 19,760,200 

Net increase/(decrease) in cash and cash equivalents $ 14,022,573 

BEGINNING CASH AS OF OCTOBER 1, 2022 18,162,873 

ENDING CASH AS OF SEPTEMBER 30, 2023 $ 32,185,446 

COMMODITY FUTURES TRADING COMMISSION 15