U.S. COMMODITY FUTURES TRADING COMMISSION 

Three Lafayette Centre 

1155 21st Street, NW, Washington, DC 20581 

Telephone: (202) 418-5110 

TO: Rostin Behnam, Acting Chairman 

Dawn Stump, Commissioner 

FROM: Miguel A. Castillo, CPA, CRMA 

Assistant Inspector General for Auditing 

DATE: November 12, 2021 

SUBJECT: CFTC Financial Statements Audit: Fiscal Year (FY) 2021 

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’s (CFTC) financial statements. We contracted Williams 

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

CFTC as of September 30, 2021, 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, Williams Adley found: 

• The financial statements were fairly presented, in all material respects, in 

conformity with U.S. Generally Accepted Accounting Principles; 

• No deficiencies in internal control over financial reporting that are 

considered to be material or significant; and 

• No instance of noncompliance with applicable laws and regulations. 

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 conclusions on whether CFTC’s financial management systems 

substantially complied with FFMIA requirements, or on compliance with laws 

and other matters. Williams Adley is responsible for the attached auditor’s 

report dated November 9, 2021 and the conclusions expressed therein. 

However, our review disclosed no instances where Williams Adley did not 

comply, in all material respects, with GAGAS. 

Page 1 of 2 
Attached is a copy of Williams Adley’s unmodified (clean) opinion and the 

financial statements of the CFTC. Please call me if any questions at (202) 418-

5084. 

Cc: 

David Gillers, Chief of Staff 

Summer Mersinger, Chief of Staff 

Anthony C. Thompson, Chief Administrative Officer and Executive Director 

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 

Page 2 of 2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independent Auditor’s Report 

Chairman 

U.S. Commodity Futures Trading Commission 

Inspector General 

U.S. Commodity Futures Trading Commission 

In our audit of the fiscal year 2021 financial statements of the U.S. Commodity Futures Trading 

Commission (CFTC), we found: 

 CFTC’s financial statements as of and for the fiscal year ended September 30, 2021 (fiscal 

year 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 performed; 1

 and 

 no reportable noncompliance for fiscal year 2021 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 required supplementary information (RSI)2 and other information included with the 

financial statements;3 (2) our report on internal control over financial reporting; (3) our report on 

compliance with laws, regulations, contracts, and grant agreements; and (4) agency comments. 

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

The RSI consists of the “Management’s Discussion and Analysis” and the “Combined Statement of 

Budgetary Resources”. 

3

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

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 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Report on the Financial Statements 

In accordance with the standards applicable to financial audits contained in Government Auditing 

Standards issued by the Comptroller General of the United States; and Office of Management and 

Budget (OMB) Bulletin No. 21-04, Audit Requirements for Federal Financial Statements, we have 

audited CFTC’s fiscal year 2021 financial statements. CFTC’s financial statements comprise the 

balance sheet at September 30, 2021; the related statements of net cost, changes in net position, 

budgetary resources, and custodial assets for the fiscal year then ended; and the related notes to 

the financial statements. 

We conducted our audit of the fiscal year 2021 financial statements in accordance with auditing 

standards generally accepted in the U.S.; the standards applicable to financial audits contained in 

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

OMB Bulletin No. 21-04. We believe that the audit evidence we obtained is sufficient and 

appropriate to provide a basis for our audit opinions. 

Emphasis of Matter 

As shown in the Balance Sheet at September 30, 2021, and discussed in Notes 6 and 8 to the 

financial statements, CFTC has recorded an unfunded liability of $203,970,000. Such liability 

resulted from a whistleblower award approved by the Commission in October 2021. Such 

unfunded award has resulted in a total negative Cumulative Results of Operations of $101,152,016 

at September 30, 2021. Our opinion is not modified for this matter. 

Management’s Responsibility 

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

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

measuring, and presenting the RSI in accordance with U.S. generally accepted accounting 

principles; (3) preparing and presenting other information included in documents containing the 

audited financial statements and auditor’s report, and ensuring the consistency of that information 

with the audited financial statements and the RSI; and (4) maintaining effective internal control 

over financial reporting, including the design, implementation, and maintenance of internal control 

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

misstatement, whether due to fraud or error. 

Auditor’s Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audit. U.S. 

generally accepted auditing standards, U.S. generally accepted government auditing standards, and 

OMB Bulletin No. 21-04 require that we plan and perform the audit to obtain reasonable assurance 

about whether the financial statements are free from material misstatement. We are also 

responsible for applying certain limited procedures to RSI and other information included with the 

financial statements. 

An audit of financial statements involves performing procedures to obtain audit evidence about 

the amounts and disclosures in the financial statements. The procedures selected depend on the 

auditor’s judgment, including the auditor’s assessment of the risks of material misstatement of the 

financial statements, whether due to fraud or error. In making those risk assessments, the auditor 

considers internal control relevant to the entity’s preparation and fair presentation 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 the entity’s internal control. 

2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accordingly, we express no such opinion. An audit of financial statements also involves evaluating 

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

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

financial statements. Our audits also included performing such other procedures as we considered 

necessary in the circumstances. 

Opinion on Financial Statements 

In our opinion, CFTC’s financial statements present fairly, in all material respects, CFTC’s 

financial position as of September 30, 2021, and its net cost of operations, changes in net position, 

budgetary resources, and custodial assets for the fiscal year then ended, in accordance with U.S. 

generally accepted accounting principles. 

Other Matters 

Prior Year Financial Statements 

CFTC’s financial statements as of and for the year ended September 30, 2020 were audited 

by other auditors, whose Independent Auditor’s Report dated November 6, 2020, expressed 

an unmodified opinion on those financial statements. 

Required Supplementary Information 

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

Advisory Board (FASAB) require that the RSI be presented to supplement the financial 

statements. Although the RSI is not a part of the financial statements, FASAB considers 

this information to be an essential part of financial reporting for placing the financial 

statements in appropriate operational, economic, or historical context. We have applied 

certain limited procedures to the RSI in accordance with U.S. generally accepted 

government auditing standards, which consisted of inquiries of management about the 

methods of preparing the RSI and comparing the information for consistency with 

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

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

omissions or material departures from FASAB guidelines, if any, identified by these 

limited procedures. We did not audit and we do not express an opinion or provide any 

assurance on the RSI because the limited procedures we applied do not provide sufficient 

evidence to express an opinion or provide any assurance. 

Other Information 

CFTC’s other information contains a wide range of information, some of which is not 

directly related to the financial statements. This information is presented for purposes of 

additional analysis and is not a required part of the financial statements or the RSI. We read 

the other information included with the financial statements in order to identify material 

inconsistencies, if any, with the audited financial statements. Our audit was conducted for 

the purpose of forming an opinion on CFTC’s financial statements. We did not audit and 

do not express an opinion or provide any assurance on the other information. 

3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Report on Internal Control over Financial Reporting 

In connection with our audit of CFTC’s fiscal year 2021 financial statements, we considered 

CFTC’s internal control over financial reporting, consistent with our auditor’s responsibility 

discussed below. We performed our procedures related to the CFTC’s internal control over 

financial reporting in accordance with U.S. generally accepted government auditing standards. 

Management’s Responsibility 

CFTC management is responsible for maintaining effective internal control over financial 

reporting, including the design, implementation, and maintenance of internal control relevant to 

the preparation and fair presentation of financial statements that are free from material 

misstatement, whether due to fraud or error. 

Auditor’s Responsibility 

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

September 30, 2021, in accordance with U.S. generally accepted government auditing standards, 

we considered CFTC’s internal control over financial reporting as a basis for designing audit 

procedures that are appropriate in the circumstances for the purpose of expressing our opinion on 

the financial statements, but not for the purpose of expressing an opinion on the effectiveness of 

CFTC’s internal control over financial reporting. Accordingly, we do not express an opinion on 

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

considered to be significant deficiencies4

 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. 

Results of Our Consideration of Internal Control over Financial Reporting 

Our consideration of internal control was for the limited purpose described above, and was not 

designed to identify all deficiencies in internal control that might be material weaknesses and 

significant deficiencies or to express an opinion on the effectiveness of the CFTC’s internal control 

over financial reporting. Given these limitations, during our audit, we did not identify any 

4

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 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

deficiencies in internal control over financial reporting that we consider to be material weaknesses. 

However, material weaknesses may exist that have not been identified. 

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 the CFTC’s 

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

opinion on the effectiveness of CFTC’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 audit of CFTC’s fiscal year 2021 financial statements, we tested compliance 

with selected provisions of applicable laws, regulations, contracts, and grant agreements consistent 

with our auditor’s responsibility discussed below. We caution that noncompliance may occur and 

not be detected by these tests. We performed our tests of compliance in accordance with U.S. 

generally accepted government auditing standards. 

Management’s Responsibility 

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

agreements applicable to CFTC. 

Auditor’s Responsibility 

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, 

contracts, and grant agreements applicable to CFTC that have a direct effect on the determination 

of material amounts and disclosures in CFTC’s financial statements, and perform certain other 

limited procedures. Accordingly, we did not test compliance with all laws, regulations, contracts, 

and grant agreements applicable to CFTC. 

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 2021 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 CFTC. Accordingly, we do not express such an opinion. 

We assessed the current status of a prior year potential noncompliance with the Anti-deficiency 

Act, which is presented in Appendix I. 

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 

5 
 

 

 

 

 

 

considering compliance. Accordingly, this report on compliance with laws, regulations, contracts, 

and grant agreements is not suitable for any other purpose. 

Agency Comments 

In commenting on a draft of this report, CFTC provided a response, which is presented in Appendix 

II. We did not audit CFTC’s response and, accordingly, we express no opinion on the response. 

Washington, DC 

November 9, 2021 

6 
Appendix I - Status of the Prior Year Finding and Recommendation 

Our assessment of the current status of the prior year finding is presented below. 

Prior Year Finding Current Year Status 

Potential Anti-deficiency Act (ADA) 

violation (Non-Compliance) 

Closed. Williams Adley determined that 

CFTC completed its investigation into the 

potential ADA violation outstanding at 

September 30, 2020. CFTC determined that 

two ADA violations did occur over multiple 

previous years. As require by the Act, CFTC 

reported the ADA violations to Congress and 

the President on September 30, 2021. 

7 
 

U.S. COMMODITY FUTURES TRADING COMMISSION 

Three Lafayette Centre 

1155 21st Street, NW, Washington, DC 20581 

Telephone: (202) 418-5000 

Facsimile: (202) 418-5521 

www.cftc.gov 

M E M O R A N D U M 

TO: Miguel A. Castillo, Assistant Inspector General for Audits 

Chief Administrative Officer, Division of Administration 

ANTHONY Digitally signed by ANTHONY 

THOMPSON FROM: Anthony C. Thompson THOMPSON Date: 2021.11.08 13:11:24 -05'00' 

Joel Mattingley Digitally signed by JOEL JOEL MATTINGLEY Chief Financial Officer Date: 2021.11.08 11:49:13 MATTINGLEY -05'00' 

DATE: November 8, 2021 

SUBJECT: Management’s Response to FY 2021 Draft Audit Report 

Thank you for the opportunity to comment on the Office of the Inspector General’s (OIG) 

draft FY 2021 Report of the Independent Auditors, Williams Adley, LLC. We appreciate the 

opportunity to review the draft report that expresses an Unmodified Opinion on the Financial 

Statements, Accompanying Notes, and Other Supplemental Information for the Year Ended 

September 30, 2021. Management Concurs with the report as written. 

We appreciate the dialogue and open communication we have had throughout this audit. If 

you require further assistance, please contact Keith Ingram, Accounting Officer at 202-418-

5612. 

Sincerely, 

Anthony C. Thompson 
FY 2021 

Financial Statements and Notes 

as of and for the Years Ended 

September 30, 2021 and 2020 

Statement Run Date: 10/19/2021 9:31:17 AM 

Version - 01 

Prepared by: 

CFTC Accounting Office 
 

 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

Financial Highlights 

The following chart is an overview of the Commission’s financial position, preceding a discussion of 

the agency’s financial highlights for fiscal year 2021: 

2021 2020

 CONDENSED BALANCE SHEETS 

Fund Balance with Treasury $ 207,788,240 $ 103,929,404 

Investments - 117,000,000 

Accounts Receivable, Net 26,983 52,632 

Custodial Fines and Interest Receivable, Net 34,377,723 623,333,958

General Property, Plant and Equipment, Net 25,618,531 25,096,671 

Advances and Prepayments 13,695,572 5,347,975

 TOTAL ASSETS $ 281,507,049 $ 874,760,640 

Accounts Payable $ 11,208,649 $ 8,202,137 

Accrued Payroll and Unfunded Annual Leave 28,498,460 26,182,754 

FECA and Unemployment Liabilities 623,369 597,032 

Liability to the General Fund of the U.S. Government for Custodial Assets 34,377,723 623,333,958 

Liability for Non-Fiduciary Deposit Funds 595,476 514,025 

Deferred Lease Liabilities 15,925,725 18,650,707 

Liability for Whistleblower Awards 203,970,000 3,627,027

Total Liabilities $ 295,199,402 $ 681,107,640 

Unexpended Appropriations - All Other Funds $ 87,459,663 $ 86,262,124 

Cumulative Results of Operations - Funds from Dedicated Collections (92,073,033) 117,027,972 

Cumulative Results of Operations - All Other Funds (9,078,983) (9,637,096)

 Total Net Position $ (13,692,353) $ 193,653,000

 TOTAL LIABILITIES AND NET POSITION $ 281,507,049 $ 874,760,640

CONDENSED STATEMENTS OF NET COST 

Gross Costs $ 514,901,590 $ 301,322,839 

Earned Revenue - (37,373)

 TOTAL NET COST OF OPERATIONS $ 514,901,590 $ 301,285,466

 NET COST BY STRATEGIC GOAL 

Strategic Goal 1: Strengthen Derivatives Markets & Foster their Vibrancy $ 54,950,470 

Strategic Goal 2: Regulate Derivatives Markets in Interest of All Americans 46,228,173 

Strategic Goal 3: Encourage Innovation & Enhance Regulatory Experience of All 44,016,448 

Strategic Goal 4: Be Tough on Those Who Break the Rules 285,505,184 

Strategic Goal 5: Focus on Unique Mission & Improve Operational Effectiveness 84,201,315 

Strategic Goal 1: Market Integrity and Transparency $ 71,313,241 

Strategic Goal 2: Financial Integrity and Avoidance of Systemic Risk 96,045,472

Strategic Goal 3: Comprehensive Enforcement 119,182,541 

Strategic Goal 4: Domestic and International Cooperation and Coordination 14,744,212

TOTAL NET COST OF OPERATIONS $ 514,901,590 $ 301,285,466 

Figure 1: Financial Summary 

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

PRINCIPAL FINANCIAL STATEMENTS 

Commodity Futures Trading Commission 

BALANCE SHEETS 

As of September 30, 2021 and 2020 

2021 2020 

ASSETS 

Intragovernmental: 

Fund Balance With Treasury (Note 2) $ 207,788,240 $ 103,929,404 

Federal Investments (Note 3) - 117,000,000 

Advances and Prepayments (Note 1H) 9,706,678 3,150,153 

Total Intragovernmental $ 217,494,918 $ 224,079,557 

With the Public: 

Accounts Receivable, Net:

 Custodial Fines and Interest Receivable, Net (Note 4) $ 34,377,723 $ 623,333,958

 Accounts Receivable, Net (Note 4) 26,983 52,632 

General Property, Plant, and Equipment, Net (Note 5) 25,618,531 25,096,671 

Advances and Prepayments (Note 1H) 3,988,894 2,197,822 

Total With the Public $ 64,012,131 $ 650,681,083 

TOTAL ASSETS $ 281,507,049 $ 874,760,640 

LIABILITIES 

Intragovernmental: 

Accounts Payable $ 3,392,772 $ 532,641 

Other Liabilities:

 Employer Contributions and Payroll Taxes Payable 1,779,989 1,746,140

 Unfunded FECA and Unemployment Liability (Note 1N) 89,587 88,501

 Other Liabilities (Without Reciprocals) 286,668 345,481

 Deferred Lease Liabilities (Note 7) 725,714 -

 Liability to the General Fund of the U.S. Government for Custodial Assets 34,377,723 623,333,958 

Total Intragovernmental $ 40,652,453 $ 626,046,721 

With the Public: 

Accounts Payable $ 7,815,877 $ 7,669,496 

Federal Employee Benefits Payable:

 Actuarial FECA Liabilities (Note 1N) 533,782 508,531

 Unfunded Annual Leave 18,531,860 15,791,557

 Funded Employee Benefits 339,165 335,515 

Other Liabilities:

 Accrued Funded Payroll 7,560,778 7,964,061

 Liability for Non-Fiduciary Deposit Funds 595,476 514,025

 Deferred Lease Liabilities (Note 7) 15,200,011 18,650,707

 Liability for Whistleblower Awards (Note 8) 203,970,000 3,627,027 

Total With the Public $ 254,546,949 $ 55,060,919 

Total Liabilities $ 295,199,402 $ 681,107,640 

Contingent Liabilities (Note 9) 

NET POSITION 

Unexpended Appropriations - Funds from Other than Dedicated Collections $ 87,459,663 $ 86,262,124

 Total Unexpended Appropriations $ 87,459,663 $ 86,262,124 

Cumulative Results of Operations - Funds from Dedicated Collections $ (92,073,033) $ 117,027,972 

Cumulative Results of Operations - Funds from Other than Dedicated Collections (9,078,983) (9,637,096)

 Total Cumulative Results of Operations $ (101,152,016) $ 107,390,876 

Total Net Position $ (13,692,353) $ 193,653,000 

TOTAL LIABILITIES AND NET POSITION $ 281,507,049 $ 874,760,640 

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

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 1 
 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

Commodity Futures Trading Commission 

STATEMENTS OF NET COST 

For the Years Ended September 30, 2021 and 2020 

Note: In FY 2021, the Commission implemented the new CFTC Strategic Plan 2020-2024 with updated 

goals; as a result, the FY 2021 and FY 2020 net costs by strategic goal are presented separately rather than 

comparatively. 

2021 

NET COST BY GOAL 

STRATEGIC GOAL 1: STRENGTHEN DERIVATIVES MARKETS & FOSTER THEIR VIBRANCY 

Gross Costs $ 54,950,470 

Less: Earned Revenue -

NET COST OF OPERATIONS -- STRATEGIC GOAL 1 $ 54,950,470 

STRATEGIC GOAL 2: REGULATE DERIVATIVES MARKETS IN INTEREST OF ALL AMERICANS 

Gross Costs $ 46,228,173 

Less: Earned Revenue -

NET COST OF OPERATIONS -- STRATEGIC GOAL 2 $ 46,228,173 

STRATEGIC GOAL 3: ENCOURAGE INNOVATION & ENHANCE REGULATORY EXPERIENCE OF ALL 

Gross Costs $ 44,016,448 

Less: Earned Revenue -

NET COST OF OPERATIONS -- STRATEGIC GOAL 3 $ 44,016,448 

STRATEGIC GOAL 4: BE TOUGH ON THOSE WHO BREAK THE RULES 

Gross Costs $ 285,505,184 

Less: Earned Revenue -

NET COST OF OPERATIONS -- STRATEGIC GOAL 4 $ 285,505,184 

STRATEGIC GOAL 5: FOCUS ON UNIQUE MISSION & IMPROVE OPERATIONAL EFFECTIVENESS 

Gross Costs $ 84,201,315 

Less: Earned Revenue -

NET COST OF OPERATIONS -- STRATEGIC GOAL 5 $ 84,201,315 

GRAND TOTAL 

Gross Costs $ 514,901,590 

Less: Earned Revenue -

TOTAL NET COST OF OPERATIONS $ 514,901,590 

Continued on next page 

2 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 (12,075) 

 (14,478) 

 (1,854) 

 (37,373) 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

Continued from previous page 

2020 

NET COST BY GOAL 

STRATEGIC GOAL 1: MARKET INTEGRITY AND TRANSPARENCY 

Gross Costs $ 71,322,207 

Less: Earned Revenue (8,966) 

NET COST OF OPERATIONS -- STRATEGIC GOAL 1 $ 71,313,241 

STRATEGIC GOAL 2: FINANCIAL INTEGRITY AND AVOIDANCE OF SYSTEMIC RISK 

Gross Costs 

Less: Earned Revenue 

NET COST OF OPERATIONS -- STRATEGIC GOAL 2 

$ 96,057,547 

$ 96,045,472 

STRATEGIC GOAL 3: COMPREHENSIVE ENFORCEMENT 

Gross Costs 

Less: Earned Revenue 

NET COST OF OPERATIONS -- STRATEGIC GOAL 3 

$ 119,197,019 

$ 119,182,541 

STRATEGIC GOAL 4: DOMESTIC AND INTERNATIONAL COOPERATION AND COORDINATION 

Gross Costs 

Less: Earned Revenue 

NET COST OF OPERATIONS -- STRATEGIC GOAL 4 

$ 14,746,066 

$ 14,744,212 

GRAND TOTAL 

Gross Costs 

Less: Earned Revenue 

TOTAL NET COST OF OPERATIONS 

$ 301,322,839 

$ 301,285,466 

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

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 315,000,000 

- (8,956,084) (8,956,084) 

- (281,291,234) 

- 24,752,682 24,752,682 

315,000,000 

 

-

 1,082,980 - 1,082,980 

- -

- 5,663,309 5,663,309 

 (9,494,170) (291,791,296) (301,285,466) 

 (8,411,190) (4,836,753) (13,247,943) 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

Commodity Futures Trading Commission 

STATEMENTS OF CHANGES IN NET POSITION 

For the Years Ended September 30, 2021 and 2020 

2021 Dedicated 

Collections 

All Other 

Funds 

Consolidated 

Total 

UNEXPENDED APPROPRIATIONS: 

BEGINNING BALANCES $ - $ 86,262,124 $ 86,262,124 

Appropriations Received - 304,000,000 304,000,000 

Other Adjustments (+/-) - (3,057,910) (3,057,910) 

Appropriations Used - (299,744,551) (299,744,551) 

Net Change in Unexpended Appropriations - 1,197,539 1,197,539 

TOTAL UNEXPENDED APPROPRIATIONS, ENDING $ - $ 87,459,663 $ 87,459,663 

CUMULATIVE RESULTS OF OPERATIONS: 

BEGINNING BALANCES $ 117,027,972 $ (9,637,096) $ 107,390,876 

Appropriations Used - 299,744,551 299,744,551 

Nonexchange Interest Revenue (Note 3) 53,886 - 53,886 

Transfers In/Out Without Reimbursement - 12,419 12,419 

Imputed Financing Sources (Note 1M) - 6,547,842 6,547,842 

Net Cost of Operations (209,154,891) (305,746,699) (514,901,590) 

Net Change in Cumulative Results of Operations (209,101,005) 558,113 (208,542,892) 

TOTAL CUMULATIVE RESULTS OF OPERATIONS, ENDING $ (92,073,033) $ (9,078,983) $ (101,152,016) 

NET POSITION $ (92,073,033) $ 78,380,680 $ (13,692,353) 

2020 Dedicated 

Collections 

All Other 

Funds 

Consolidated 

Total 

UNEXPENDED APPROPRIATIONS: 

BEGINNING BALANCES $ - $ 61,509,442 $ 61,509,442 

Appropriations Received -

Other Adjustments (+/-) 

Appropriations Used 

Net Change in Unexpended Appropriations 

 (281,291,234) 

TOTAL UNEXPENDED APPROPRIATIONS, ENDING $ - $ 86,262,124 $ 86,262,124 

CUMULATIVE RESULTS OF OPERATIONS: 

BEGINNING BALANCES $ 120,638,819 

Appropriations Used 

$ 125,439,162 $ (4,800,343) 

Nonexchange Interest Revenue (Note 3) 

281,291,234 281,291,234 

-

Imputed Financing Sources (Note 1M) 

Net Cost of Operations 

Net Change in Cumulative Results of Operations 

Transfers In/Out Without Reimbursement 

TOTAL CUMULATIVE RESULTS OF OPERATIONS, ENDING $ 117,027,972 $ (9,637,096) $ 107,390,876 

NET POSITION $ 117,027,972 $ 76,625,028 $ 193,653,000 

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

4 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Commodity Futures Trading Commission 

STATEMENTS OF BUDGETARY RESOURCES 

For the Years Ended September 30, 2021 and 2020 

2021 2020 

BUDGETARY RESOURCES

 Unobligated Balance from Prior Year Budget Authority, Net (Note 10A) $ 51,006,213 $ 28,143,967

 Appropriations 304,000,000 315,000,000

 Spending Authority from Offsetting Collections 63,234 1,031,801 

TOTAL BUDGETARY RESOURCES $ 355,069,447 $ 344,175,768 

STATUS OF BUDGETARY RESOURCES

 New Obligations and Upward Adjustments $ 303,467,595 $ 296,591,524

 Unobligated Balance, End of Year 

Apportioned, Unexpired Accounts 123,018,339 143,318,572 

Unapportioned, Unexpired Accounts (80,060,414) (103,626,536) 

Unexpired Unobligated Balance, End of Year 42,957,925 39,692,036 

Expired Unobligated Balance, End of Year 8,643,927 7,892,208

 Unobligated Balance, End of Year (Total) 51,601,852 47,584,244 

TOTAL BUDGETARY RESOURCES $ 355,069,447 $ 344,175,768 

OUTLAYS, NET 

Outlays, Net $ 314,164,705 $ 315,934,006 

Distributed Offsetting Receipts (37,264) (5,106) 

AGENCY OUTLAYS, NET $ 314,127,441 $ 315,928,900 

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

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 5 
 

 

 

 

 

 

 

 

 

 

 

 

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Commodity Futures Trading Commission 

STATEMENTS OF CUSTODIAL ACTIVITY 

For the Years Ended September 30, 2021 and 2020 

2021 2020 

TOTAL CUSTODIAL REVENUE 

SOURCES OF CASH COLLECTIONS:

 Registration and Filing Fees $ 1,310,369 $ 1,165,011

 Fines, Penalties, and Forfeitures 545,527,184 192,204,742

 General Proprietary Receipts 37,264 5,106 

Total Cash Collections 546,874,817 193,374,859 

Change in Custodial Receivables (588,956,235) 571,969,509 

TOTAL CUSTODIAL REVENUE $ (42,081,418) $ 765,344,368 

DISPOSITION OF COLLECTIONS 

AMOUNTS TRANSFERRED TO:

 Department of the Treasury $ (546,874,817) $ (193,374,859) 

Total Disposition of Collections (546,874,817) (193,374,859) 

Change in Custodial Liabilities 588,956,235 (571,969,509) 

NET CUSTODIAL ACTIVITY $ - $ -

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

6 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

 

 

 

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NOTES TO THE FINANCIAL STATEMENTS 

As of and for the Years Ended September 30, 2021 and 2020 

Note 1 Summary of Significant Accounting Policies 

A. Reporting Entity 

The Commodity Futures Trading Commission (CFTC or 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 agency’s mandate was renewed and 

expanded under the Futures Trading Acts of 1978, 1982, and 1986; under the Futures Trading 

Practices Act of 1992; under the CFTC Reauthorization Act of 1995; under the Commodity Futures 

Modernization Act of 2000; and under the Dodd-Frank Wall Street Reform and Consumer 

Protection Act of 2010 (Dodd-Frank Act, or the Act). Congress passed the Food, Conservation, and 

Energy Act of 2008, which reauthorized the Commission through FY 2013. In the absence of 

formal reauthorization, the CFTC has continued to operate through annual appropriations. 

The CFTC is responsible for ensuring the economic utility of futures markets by encouraging their 

competitiveness and efficiency, ensuring their integrity, and protecting market participants against 

manipulation, abusive trade practices, and fraud. 

On July 21, 2010, the Dodd-Frank Act was signed into law, significantly expanding the powers and 

responsibilities of the CFTC. According to Section 748 of the Act, there is established in the U.S. 

Department of the Treasury (Treasury) a revolving fund known as the CFTC Customer Protection 

Fund. The Customer Protection Fund shall be available to the Commission, without further 

appropriation or fiscal year limitation, for a) the payment of awards to whistleblowers; and b) the 

funding of customer education initiatives designed to help customers protect themselves against 

fraud or other violations of this Act or the rules and regulations thereunder. 

B. Basis of Presentation 

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

operations for the CFTC, as required by the Accountability of Tax Dollars Act of 2002. They are 

presented in accordance with the form and content requirements contained in OMB Circular A136, Financial Reporting Requirements, as amended. 

The principal financial statements have been prepared in all material respects from the agency’s 

books and records in conformity with U.S. generally accepted accounting principles (GAAP), as 

prescribed for the Federal government by the Federal Accounting Standards Advisory Board 

(FASAB). The application and methods for applying these principles are appropriate for fairly 

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 7 
 

 

 

 

 

 

 

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presenting the entity’s assets, liabilities, financial position, net cost of operations, changes in net 

position, budgetary resources, and custodial activities. Accounting standards allow certain 

presentations and disclosures to be modified, if needed, to prevent the disclosure of classified 

information. 

The books and records of the agency served as the source of information for preparing the financial 

statements in the prescribed formats. All agency 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 are for a component of the U.S. Government, a 

sovereign entity. 

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

present the agency’s operating results; the Statements of Changes in Net Position display the 

changes in the agency’s equity accounts. The Statements of Budgetary Resources present the 

sources, status, and uses of the agency’s resources and follow the rules for the Budget of the U.S. 

Government. The Statements of Custodial Activity present the sources and disposition of 

collections for which the CFTC is the fiscal agent, or custodian, for the Treasury General Fund 

Miscellaneous Receipt accounts. 

Throughout these financial statements, assets, liabilities, revenues and costs 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 earned revenues are 

collections or accruals of revenue from other federal entities, and intragovernmental costs are 

payments or accruals to other federal entities. 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 CFTC is funded through congressionally approved appropriations. The CFTC is responsible 

for administering the salaries and expenses of the agency through the execution of these 

appropriations. 

Congress annually enacts appropriations that provide the CFTC with the authority to obligate 

funds within the respective fiscal year for necessary expenses to carry out mandated program 

activities. All appropriations are subject to quarterly apportionment as well as Congressional 

restrictions. 

8 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

 

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The CFTC’s budgetary resources for FY 2021 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 appropriations and spending authority from offsetting 

collections. 

Unobligated balances associated with resources expiring at the end of the fiscal year remain 

available for five years after expiration only for upward adjustments of prior year obligations, after 

which they are canceled and may not be used. All unused monies related to canceled 

appropriations are returned to Treasury and the canceled authority is reported on the Statements 

of Budgetary Resources and the Statements of Changes in Net Position. 

D. Entity and Non-Entity Assets 

Assets consist of entity and non-entity assets. Entity assets are those assets that the CFTC has 

authority to use for its operations. Non-entity assets are those held by the CFTC that are not 

available for use in its operations. Non-entity assets held by the CFTC include deposit fund 

balances, custodial fines, interest, penalties, and administrative fees receivable. 

E. Fund Balance with Treasury 

Fund Balance with Treasury is the aggregate amount of the CFTC’s funds with Treasury in general, 

receipt, revolving, and deposit fund accounts. Appropriated funds recorded in general fund 

expenditure accounts are available to pay current liabilities and finance authorized purchases. 

Custodial collections recorded in the deposit fund and miscellaneous receipts accounts of the 

Treasury are not available for agency use. At fiscal year-end, receipt account balances are returned 

to Treasury or transferred to the Customer Protection Fund. 

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

maintain cash held outside of Treasury. Treasury disburses funds for the agency on demand. 

Spending authority from offsetting collections is recorded in the agency’s expenditure account and 

is available for agency use subject to certain limitations. 

F. Investments 

The CFTC has the authority to invest amounts deposited in the Customer Protection Fund in shortterm market-based Treasury securities. Market-based Treasury securities are debt securities that 

the Treasury issues to Federal entities without statutorily determined interest rates. Although the 

securities are not marketable, the terms (prices and interest rates) mirror the terms of marketable 

Treasury securities. Investments are carried at their historical cost basis which approximates fair 

value due to their short-term nature. 

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 9 
 

 

 

 

 

 

 

 

 

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

expenses of the Customer Protection Fund. Additional details regarding Customer Protection Fund 

investments are provided in Note 3. 

G. Accounts Receivable, Net 

Accounts receivable consists of amounts owed by other federal agencies and the public to the CFTC 

and is valued net of an allowance for uncollectible amounts. The allowance is based on past 

experience in the collection of receivables and analysis of the outstanding balances. Accounts 

receivable primarily arise from the Civil Monetary Sanctions program, reimbursable operations, 

and earned refunds. 

H. Advances and Prepayments 

Advances and Prepayments consist of payments to federal and non-federal sources in advance of 

the receipt of goods and services. These payments are recorded as prepayments and recognized as 

expenses when the related goods and services are received. Intragovernmental prepayments 

reported on the Balance Sheet were made primarily to the U.S. Department of Interior for contract 

support. Prepayments to the public were primarily for software maintenance and subscription 

services. 

I. General Property, Plant and Equipment, Net 

Furniture, fixtures, equipment, information technology hardware and software, and leasehold 

improvements are capitalized and depreciated or amortized over their useful lives. The CFTC 

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. 

Leasehold improvements are amortized over the remaining life of the lease. The Commission’s 

assets are valued net of accumulated depreciation or amortization. 

J. Liablities 

The CFTC’s liabilities include actual and estimated amounts that are likely to be paid as a result of 

transactions covered by budgetary resources for which Congress has appropriated funds or 

funding, or are otherwise available from reimbursable transactions to pay amounts due. 

In addition to those liabilities covered by budgetary resources in existing legislation, the CFTC’s 

liabilities also include those not requiring budgetary resources, and those not yet covered by 

budgetary resources. The CFTC liabilities not requiring budgetary resources include deferred lease 

10 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

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liabilities, deposit funds, and custodial revenue deemed collectible but not yet collected at fiscal 

year-end. Liabilities that are not yet covered by budgetary resources but will require budgetary 

resources in the future include: 

 Intragovernmental Federal Employees’ Compensation Act (FECA) liabilities, 

 Annual leave benefits that will be funded by annual appropriations as leave is taken, 

 Actuarial FECA liabilities, 

 Liability for whistleblower awards, 

 Contingent liabilities, and 

 Advances received for reimbursable services yet to be provided. 

K. Accounts Payable 

Accounts payable consists primarily of contracts for goods or services, such as operating leases, 

leasehold improvements, software development, information technology, telecommunications, and 

consulting and support services. 

L. Accrued Payroll and Benefits and Annual Leave Liability 

The accrued payroll liability represents amounts for salaries and 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 CFTC 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. 

The agency’s employees participate in the Civil Service Retirement System (CSRS) or the Federal 

Employees’ Retirement System (FERS). On January 1, 1987, FERS went into effect pursuant to 

Public Law 99-335. Most employees hired after December 31, 1983, are automatically covered by 

FERS and Social Security. Employees hired prior to January 1, 1984, could elect to either join 

FERS and Social Security or remain in CSRS. 

For employees under FERS, the CFTC contributes an amount equal to one percent of the 

employee’s basic pay to the tax deferred Thrift Savings Plan and matches employee contributions 

up to an additional four percent of pay. FERS and CSRS employees can contribute a portion of 

their gross earnings to the plan up to Internal Revenue Service limits; however, CSRS employees 

receive no matching agency contribution. 

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 11 
 

 

 

 

 

 

 

 

 

 

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M. Retirement Plans and Other Employee Benefits 

The CFTC imputes costs and the related financing sources for its share of retirement benefits 

accruing to its employees that are in excess of the amount of contributions and withholdings from 

the CFTC and its employees, which are mandated by law. The Office of Personnel Management 

(OPM), which administers federal civilian retirement programs, provides the cost information to 

the CFTC. The CFTC recognizes the government’s portion of the full cost of providing future 

pension and Other Retirement Benefits (ORB) for current employees as required by Statement of 

Federal Financial Accounting Standards (SFFAS) 5, Accounting for Liabilities of the Federal 

Government. 

Full costs include pension and ORB contributions paid out of the CFTC’s appropriations as well as 

costs financed by OPM. The amount financed by OPM is recognized as an imputed financing 

source. Reporting amounts such as plan assets, accumulated plan benefits, or unfunded liabilities, 

if any, is the responsibility of OPM. 

Liabilities for future pension payments and other future payments for retired employees who 

participate in the Federal Employees Health Benefits Program and the Federal Employees Group 

Life Insurance Program are reported by OPM rather than CFTC. 

N. FECA and Unemployment Liabilities 

FECA provides income and medical cost protections to covered federal civilian employees injured 

on the job, to employees who have incurred work-related occupational diseases and to 

beneficiaries of employees whose deaths are attributable to job-related injuries or occupational 

diseases. The FECA program is administered by the U.S. Department of Labor (DOL), which pays 

valid claims against the CFTC and subsequently seeks reimbursement from the CFTC for these 

paid claims. DOL’s Unemployment Compensation For Federal Employees (UCFE) program 

provides unemployment compensation for Federal employees who lost their employment through 

no fault of their own. Accrued FECA and unemployment liabilities represent amounts due to DOL 

for claims paid on behalf of the agency. 

In addition, the Commission’s actuarial FECA liability represents the liability for future workers 

compensation benefits, which includes the expected liability for death, disability, medical, and 

miscellaneous costs for approved cases. The Commission records an estimate for the FECA 

actuarial liability using the DOL’s FECA model. The model considers the average amount of 

benefit payments incurred by the Commission for the past three fiscal years, multiplied by the 

medical and compensation liability to benefits paid ratio for the whole FECA program. 

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O. Leases 

The CFTC does not have any capital lease liabilities. The operating leases consist of commercial 

property for the CFTC’s headquarters and regional offices. Lease expenses are recognized on a 

straight-line basis. 

P. Deposit Funds 

Deposit funds are expenditure accounts used to record monies that do not belong to the Federal 

government. They are held awaiting distribution based on a legal determination or investigation. 

The CFTC Deposit Fund is used to collect and later distribute collections of monetary awards to the 

appropriate victims as restitution. The cash collections recorded in this fund are offset by a Deposit 

Fund liability. Activities in this fund are not fiduciary in nature because they are not legally 

enforceable against the government. 

Q. Net Position 

Net position consists of unexpended appropriations and cumulative results of operations. 

Unexpended appropriations are appropriations that have not yet been used to acquire goods and 

services or provide benefits. Appropriations are considered expended, or used, when goods and 

services have been acquired by the CFTC or benefits have been provided using the appropriation 

authority, regardless of whether monies have been paid or payables for the goods, services, or 

benefits have been established. 

Cumulative results of operations represent the excess of budgetary or other financing sources over 

expenses since inception. Cumulative results of operations are derived from the net effect of 

capitalized assets, expenses, exchange revenue, and unfunded liabilities. 

R. Revenues 

The CFTC receives reimbursement and earns revenue for the following activities: 

 Reimbursement for travel, subsistence, and related expenses from non-federal sources for 

attendance at meetings or similar functions that an employee has been authorized to 

attend in an official capacity on behalf of the Commission; 

 Reimbursement for Intergovernmental Personnel Act Mobility Program assignments from 

state and local governments, institutions of higher education, and other eligible 

organizations for basic pay, supplemental pay, fringe benefits, and travel and relocation 

expenses; and 

 Reimbursement from non-federal sources for registration fees to cover the cost of 

expenses related to the CFTC's annual International Regulators Conference. 

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S. Net Cost of Operations 

Net cost of operations is the difference between the CFTC’s expenses and its earned revenue. The 

presentation of program results by strategic goals is based on the CFTC’s current Strategic Plan 

established pursuant to the Government Performance and Results Act of 1993 (GPRA). In FY 

2021, the Commission implemented the new CFTC Strategic Plan 2020-2024 with updated goals; 

as a result, the FY 2021 and FY 2020 net costs by strategic goal are presented separately rather 

than comparatively. 

The mission statement of the CFTC is to promote the integrity, resilience, and vibrancy of the U.S. 

derivatives markets through sound regulation. For FY 2021, this mission was accomplished 

through the following five strategic goals, each focusing on a vital area of regulatory responsibility: 

 Strategic Goal 1: Strengthen Derivatives Markets & Foster Their Vibrancy 

 Strategic Goal 2: Regulate Derivatives Markets in Interest of All Americans 

 Strategic Goal 3: Encourage Innovation and Enhance Regulatory Experience of All 

 Strategic Goal 4: Be Tough on Those Who Break the Rules 

 Strategic Goal 5: Focus on Unique Mission and Improve Operational Effectiveness 

For FY 2020, the mission was accomplished through the following four strategic goals, each 

focusing on a vital area of regulatory responsibility: 

 Strategic Goal 1: Market Integrity and Transparency 

 Strategic Goal 2: Financial Integrity and Avoidance of Systemic Risk 

 Strategic Goal 3: Comprehensive Enforcement 

 Strategic Goal 4: Domestic and International Cooperation and Coordination 

T. Custodial Activity 

The CFTC collects penalties and fines levied against firms for violation of laws as described in the 

CEA as codified at 7 U.S.C. § 1, et seq, and the Commodities Futures Modernization Act of 2000, 

Appendix E of Public Law 106-554, 114 Stat. 2763. Unpaid fines, penalties and accrued interest are 

reported as custodial receivables, with an associated custodial liability. The receivables and the 

liability are reduced by amounts determined to be uncollectible. Revenues earned and the losses 

from bad debts are reported to Treasury. 

14 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Collections made by the CFTC during the year are deposited and reported into designated Treasury 

miscellaneous receipt accounts for: 

 Registration and filing fees, 

 Fines, penalties and forfeitures, and 

 General proprietary receipts. 

At fiscal year-end, custodial collections made by the CFTC are either returned to Treasury or when 

determined eligible, transferred to the Customer Protection Fund. The CFTC does not retain any 

amount for custodial activities including reimbursement of the cost of collection. 

U. 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, expenses, and custodial activities. Actual results could differ from these estimates. 

V. Reconciliation of Net Outlays and Net Cost of Operations 

In accordance with OMB Circular A-136, the Commission reconciles its budgetary outlays with its 

net cost of operations. 

W. Funds from Dedicated Collections 

The Customer Protection Fund was established to operate a whistleblower program and support 

customer education initiatives. See Note 1A for a description of the purpose of the Customer 

Protection Fund and its authority to use revenues and other financing sources. Deposits into the 

Customer Protection Fund are credited from monetary sanctions collected by the Commission in a 

covered judicial or administrative action where the full judgment is in excess of $1,000,000 and 

the collection is not otherwise distributed to victims of a violation of the Dodd-Frank Act or the 

underlying rules and regulations, unless the balance of the Customer Protection Fund at the time 

the monetary judgment is collected exceeds $100 million. 

No new legislation was enacted as of September 30, 2021, that significantly changed the purpose of 

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

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

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

October 1, 2022, at which time all unobligated amounts will be returned to the Fund. 

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X. Reclassifications 

Balances reported in the FY 2020 Balance Sheet, Statement of Changes in Net Position, and notes 

6, 11, and 12 have been reclassified and/or retitled to conform to the updated guidance provided in 

OMB Circular A-136 dated August 10, 2021. In addition, line item groupings such as “Other 

Liabilities” have been added as required by OMB Circular A-136 to support preparation of the 

governmentwide consolidated financial statements. 

Note 2 Fund Balance with Treasury 

A. Reconciliation to Treasury 

There are no differences between the fund balances reflected in the CFTC Balance Sheets and the 

balances in the Treasury accounts. 

B. Fund Balance with Treasury 

Fund Balance with Treasury as of September 30, 2021, and 2020, consisted of the following: 

2021 2020 

Unobligated Fund Balance

 Available $ 113,701,665 $ 26,998,826

 Unavailable 18,643,928 7,904,486 

Obligated Balance Not Yet Disbursed 74,847,171 68,512,067 

Non-Budgetary Fund Balance with Treasury 595,476 514,025 

TOTAL FUND BALANCE WITH TREASURY $ 207,788,240 $ 103,929,404 

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. These amounts 

include Customer Protection Fund investments, uncollected payments from Federal sources, and 

unfunded lease obligations. 

16 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

 

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Note 3 Investments 

The CFTC invests amounts deposited in the Customer Protection Funds in overnight short-term 

Treasury securities. Treasury overnight certificates of indebtedness are issued with a stated rate of 

interest to be applied to their par amount, mature on the business day immediately following their 

issue date, are redeemed at their par amount at maturity, and have interest payable at maturity. 

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

based on the interest rates or prices of Treasury-related financial instruments issued or trading in 

the market, rather than on the interest rates or prices of outstanding marketable Treasury 

securities. The Commission 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. Related nonexchange interest revenue for the years ended 

September 30, 2021, and 2020, was $53,886 and $1,082,980, 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 1F, 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. 

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Note 4 Accounts Receivable, Net 

Accounts receivable consist of amounts owed the CFTC by other Federal agencies and the public. 

Accounts receivable are valued at their net collectible values. Non-custodial accounts receivable 

are primarily for overpayments of expenses to other agencies, or vendors, and repayment of 

employee benefits. Historical experience has indicated that most of the non-custodial receivables 

are collectible and that there are no material uncollectible amounts. 

Custodial receivables (non-entity assets) are those for which fines and penalties have been 

assessed and levied against businesses or individuals for violations of the CEA or Commission 

regulations. Violators may be subject to a variety of sanctions including fines, injunctive orders, 

bars or suspensions, rescissions of illegal contracts, and disgorgements. 

An allowance for uncollectible accounts has been established and included in accounts receivable 

on the balance sheets. Although historical experience has indicated that a high percentage of 

custodial receivables prove uncollectible, the Commission determines the collectability of each 

individual judgment based on knowledge of the financial profile of the debtor obtained through the 

course of the investigation and litigation of each case, including efforts to identify and freeze assets 

at the beginning of cases, when any remaining assets are most likely to be recoverable. Accounts 

are re-estimated quarterly based on account reviews and the agency’s determination that changes 

to the net realizable value are needed. 

Accounts receivable, net consisted of the following as of September 30, 2021, and 2020: 

2021 2020 

Custodial Receivables, Net: 

Civil Monetary Penalties, Fines, and Administrative Fees $ 564,068,210 $ 770,558,920 

Civil Monetary Penalty Interest 752,519 1,683,400 

Registration and Filing Fees 1,185,107 1,539,855 

Less: Allowance for Loss on Penalties, Fines, and Administrative Fees (530,927,060) (148,609,005) 

Less: Allowance for Loss on Interest (701,053) (1,676,140) 

Less: Allowance for Loss on Registration and Filing Fees - (163,072) 

TOTAL CUSTODIAL RECEIVABLES, NET $ 34,377,723 $ 623,333,958 

Other Accounts Receivable 26,983 52,632 

TOTAL ACCOUNTS RECEIVABLE, NET $ 34,404,706 $ 623,386,590 

18 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

 

 

 

 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

Note 5 General Property, Plant and Equipment, Net 

Property, Plant and Equipment as of September 30, 2021, and 2020, consisted of the following: 

2021 

Major Class Service Life and Method Cost Net Book Value 

Accumulated 

Amortization/ 

Depreciation 

Equipment 5 Years/Straight Line $ 41,886,926 $ (36,273,805) $ 5,613,121 

IT Software 5 Years/Straight Line 29,052,822 (26,121,269) 2,931,553 

Software in Development Not Applicable 5,425,314 - 5,425,314 

Leasehold Improvements Remaining Life of Lease/Straight Line 32,953,470 (24,624,583) 8,328,887 

Construction in Progress Not Applicable 3,319,656 - 3,319,656 

TOTAL GENERAL PROPERTY, PLANT, AND EQUIPMENT, NET $ 112,638,188 $ (87,019,657) $ 25,618,531

2020 

Major Class Service Life and Method Cost Net Book Value 

Accumulated 

Amortization/ 

Depreciation 

Equipment 5 Years/Straight Line $ 42,630,427 $ (35,707,899) $ 6,922,528 

IT Software 5 Years/Straight Line 29,742,235 (27,158,953) 2,583,282 

Software in Development Not Applicable 5,370,715 - 5,370,715 

Leasehold Improvements Remaining Life of Lease/Straight Line 31,292,870 (21,072,724) 10,220,146 

Construction in Progress Not Applicable - - - 

TOTAL GENERAL PROPERTY, PLANT, AND EQUIPMENT, NET $ 109,036,247 $ (83,939,576) $ 25,096,671 

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 19 
 

 

 

 

 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

Note 6 Liabilities not Covered by Budgetary Resources 

As of September 30, 2021, and 2020, the following liabilities were not covered by budgetary 

resources: 

2021 2020 

Liabilities Not Requiring Budgetary Resources:

 Intragovernmental - Liability to the General Fund of the U.S. Government for Custodial Assets $ 34,377,723 $ 623,333,958

 Intragovernmental - Deferred Lease Liabilities 725,714 - 

 Deferred Lease Liabilities 15,200,011 18,650,707

 Liability for Non-Fiduciary Deposit Funds 595,476 514,025 

Total Liabilities Not Requiring Budgetary Resources $ 50,898,924 $ 642,498,690 

Other Liabilities Not Covered by Budgetary Resources:

 Intragovernmental - Unfunded FECA and Unemployment Liability $ 89,587 $ 88,501

 Unfunded Annual Leave 18,531,860 15,791,557

 Actuarial FECA Liabilities 533,782 508,531

 Liability for Whistleblower Awards 203,970,000 3,627,027 

TOTAL LIABILITIES NOT COVERED BY BUDGETARY RESOURCES $ 274,024,153 $ 662,514,306 

Liabilities not covered by budgetary resources of $274,024,153 and $662,514,306 represent 92.83 

and 97.27 percent of the Commission’s total liabilities of $295,199,402 and $681,107,640 as of 

September 30, 2021, and 2020, respectively. 

20 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

Note 7 Leases 

The CFTC has operating leases for its locations in Washington D.C., Chicago, New York, and 

Kansas City. The CFTC has no real property. Future estimated minimum lease payments are not 

accrued as liabilities and are expensed on a straight-line basis. 

As of September 30, 2021, future estimated minimum lease payments are as follows: 

Fiscal Year Non-Federal 

(Non-Cancellable) 

Federal 

(Cancellable) Total 

2022 $ 20,088,229 $ 126,380 $ 20,214,609 

2023 17,880,606 126,380 18,006,986 

2024 18,239,105 126,380 18,365,485 

2025 18,603,371 126,380 18,729,751 

2026 - 126,380 126,380 

Thereafter - 1,243,051 1,243,051 

Total Future Scheduled Rent Payments $ 74,811,311 $ 1,874,951 $ 76,686,262 

Future Lease-Related Operating Costs (Estimated) 5,249,103 1,657,760 6,906,863 

TOTAL FUTURE MINIMUM LEASE PAYMENTS $ 80,060,414 $ 3,532,711 $ 83,593,125 

The amounts in the table above include the future minimum lease payments for the Commission’s 

existing lease arrangements described by location on the page below. In 2016, the Commission 

executed a memorandum of understanding with the General Services Administration (GSA) to 

address all of its future space needs. In its FY 2020 appropriation, the Commission received an 

additional $31,000,000 for move, replication, and related costs associated with replacement leases 

for the Commission’s facilities. As of September 30, 2021, the Commission has entered into an 

occupancy agreement with GSA for space in Kansas City. This agreement may be cancelled with 

120 days’ notice. As new occupancy agreements are entered into with GSA for its other locations, 

the Commission will incorporate these new intragovernmental leases into its future estimated 

lease payments. 

CFTC recognizes leases expenses on a straight-line basis because the Commission’s lease payment 

amounts vary at negotiated times and reflect increases in rental costs, allowances or credits from 

landlords, and financed tenant improvements. Consistent with the utility of its office space, the 

Commission records deferred lease liabilities representing expense amounts in excess of payments 

to date. Non-federal deferred lease liabilities as of September 30, 2021, and 2020, were 

$15,200,011 and $18,650,707, respectively. As of September 30, 2021, the Commission also 

recorded federal deferred lease liabilities of $725,714 as a result of the new GSA occupancy 

agreement entered into in FY 2021. 

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 21 
 

 

 

 

 

 

 

 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

The following table describes the Commission’s existing lease arrangements for buildings and 

multifunction devices, including major asset categories by location and associated lease terms. 

BUILDINGS (FEDERAL, CANCELLABLE) 

Kansas City Occupancy Agreement with GSA for office space from February 1, 2021, 

through January 31, 2036.1 

BUILDINGS (NON-FEDERAL, NON-CANCELLABLE) 

Location 

Washington, D.C. 

New York 

Chicago 

Lease Terms 

Lease of office space from October 5, 1995, through September 30, 2025,

subject to annual escalation amounts2 and including allowances for leasehold

improvements and rent offsets. 

Lease of office space from November 16, 2001, through April 30, 2022, with no

escalation clauses or option to renew. 

Lease of office space from March 10, 2002, through June 30, 2022, including 

proportionate share of operating expenses and taxes for premises and

allowances for leasehold improvements and rent offsets. 

MULTIFUNCTION DEVICES (FEDERAL) 

Location Lease Terms 

Washington, D.C., New 

York, and Kansas City 

Two-year rental of multifunction printers through the U.S. Government 

Printing Office with three one-year options to renew. 

1 In FY 2021, the Commission entered into an Occupancy Agreement with GSA for space in Kansas City that serves as a 

replacement for the lease the Commission held with a non-federal vendor that ended in FY 2021. 2 If market rent were $100 per square foot with a 10 percent annual escalation and a $10 operating expense base, 

then 98 percent of the applicable market rent would be $98 per square foot with a 10 percent escalation and a $10 

operating base. 

Note 8 Liability for Whistleblower Awards 

As mentioned in Note 1A, the Customer Protection Fund will be used to pay awards to 

whistleblowers if they voluntarily provide original information to the CFTC that leads to the 

successful enforcement by the CFTC of a covered judicial or administrative action in which 

monetary sanctions exceeding $1 million are imposed. Whistleblowers are entitled to appeal any 

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

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 

22 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

the related sanction, or some portion thereof, has been collected. The liability will be paid when the 

appeal period has ended and the whistleblower has provided necessary banking information. As of 

September 30, 2021, and September 30, 2020, the Commission recorded liabilities for pending 

payments to whistleblowers of approximately $203,970,000 and $3,627,027, respectively. During 

FY 2021, the Commission disbursed $3,459,871 in whistleblower awards, which primarily 

consisted of $3,002,027 from pending payments and $411,854 from accounts payable at the end of 

FY 2020. Accounts payable as of September 30, 2021, includes $1,476 for awards that have been 

finalized as of the end of FY 2021. 

In addition to the pending payments to whistleblowers, the Commission had 20 additional 

whistleblower claims currently under review as of September 30, 2021. 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 

$592,223,596. 

Note 9 Contingent Liabilities 

The CFTC 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 agency and which have been appealed. Additionally, the 

Commission discloses legal matters in which an unfavorable outcome is reasonably possible. In FY 

2021, the Commission was involved in a matter where an unfavorable outcome is reasonably 

possible, but the potential loss is not reasonably estimable. 

Note 10 Statements of Budgetary Resources 

The Commission corrected a violation of the recording statute in FY 2016 by recording its 

obligations for all future building lease payments in accordance with OMB Circular A-11. The 

recording of these previously unrecorded obligations resulted in negative unobligated balances in 

its salaries and expenses general expenditure funds because budgetary resources have not been 

made available to the Commission to fund these multi-year leases (see the Combining Statements 

of Budgetary Resources in the Required Supplementary Information section immediately following 

the notes). The effect on the status of the Commission’s budgetary resources and reconciliation to 

the U.S. Budget is detailed in the note disclosures below. 

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 23 
 

 

 

 

 

 

 

 

 

 

 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

A. Net 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 and other changes such as canceled authority. 

The Adjustments to Unobligated Balance Brought Forward, October 1, as of September 30, 2021, 

and 2020, consisted of the following: 

2021 2020 

Unobligated Balance Brought Forward, October 1 $ 47,584,244 $ 27,115,398 

Cancellation of Deficient Fund Balance - 3,043,741 

Recoveries of Prior Year Obligations 6,479,879 6,940,912 

Other Changes in Unobligated Balance (3,057,910) (8,956,084) 

UNOBLIGATED BALANCE FROM PRIOR YEAR BUDGET AUTHORITY, NET $ 51,006,213 $ 28,143,967 

B. Undelivered Orders 

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

2020, consisted of the following: 

2021 2020 

Undelivered Orders - Federal

 Paid $ 9,706,678 $ 3,150,153 

 Unpaid 14,688,689 12,922,345

 Total Undelivered Orders - Federal $ 24,395,367 $ 16,072,498 

Undelivered Orders - Non-Federal

 Paid $ 3,988,894 $ 2,197,822 

 Unpaid 119,043,648 140,635,202

 Total Undelivered Orders - Non-Federal $ 123,032,542 $ 142,833,024 

TOTAL UNDELIVERED ORDERS $ 147,427,909 $ 158,905,522 

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. Non-federal unpaid undelivered orders include the Commission’s 

unfunded future lease payments as of September 30, 2021, and 2020, as follows: 

2021 2020 

Unfunded Lease Obligations Brought Forward, October 1 $ 103,626,536 $ 126,714,806 

Change in Unfunded Lease Obligations (23,566,122) (23,088,270) 

TOTAL REMAINING UNFUNDED LEASE OBLIGATIONS $ 80,060,414 $ 103,626,536 

24 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

 

 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

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

Budget of the United States Government 

The CFTC had material differences between the amounts reported in the Statement of Budgetary 

Resources dated September 30, 2020, and the actual amounts reported in the Budget of the U.S. 

Government for FY 2020. These differences are related to unfunded lease obligations that are 

being funded each fiscal year through annual appropriations (see table below). These unfunded 

obligations will cease to be a reconciling difference when the last unfunded lease ends in FY 2025. 

Budgetary 

Resources 

CFTC FY 2020 Statement of Budgetary Resources $ 344,175,768 

 Less Amounts in Customer Protection Fund (144,591,877)

 Less Amounts in Expired Accounts (8,954,773)

 Less New Budget Authority Used to Liquidate Deficiencies (23,088,270)

 Plus Unfunded Lease Obligations Brought Forward, October 1 126,714,806

 Plus Rounding to Nearest Million (+/-) (255,654) 

BUDGET OF THE U.S. GOVERNMENT $ 294,000,000 

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

The expected publish date is February 2022. A copy of the Budget may be obtained from OMB’s 

website. 

D. Distributed Offsetting Receipts 

Distributed offsetting receipts are amounts that an agency collects from the public or from other 

Government agencies that are used to offset or reduce an agency’s budget outlays. The 

Commission’s distributed offsetting receipts generally consist of miscellaneous collections for such 

items as Freedom of Information Act requests, vendor refunds, and lost or damaged property that 

cannot be applied to other funds. 

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 25 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 315,928,900 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

Note 11 Reconciliation of Total Net Cost of Operations to Net Outlays 

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

Statements of Net Cost with Net Outlays reported in the Statements of Budgetary Resources. 

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. 

2021 2020 

TOTAL NET COST OF OPERATIONS $ 514,901,590 $ 301,285,466 

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

Depreciation and Amortization $ (4,566,312) $ (6,031,004) 

Gain/(Loss) on Disposal (34,252) (412,170)

Increase/(Decrease) in Assets: 

 Accounts Receivable (25,649) (1,950)

 Decrease in Advances and Prepayments - (345,320) 

(Increase)/Decrease in Liabilities: 

 Accounts Payable (3,006,512) 13,217,453 

 Salaries and Benefits 424,597 (3,178,787) 

 Liability for Whistleblower Awards (200,342,973) 16,653,119 

 Other Liabilities (Unfunded Leave, Unfunded FECA, Actuarial FECA) (2,766,640) (3,151,507) 

Other Financing Sources:

 Federal Employee Retirement Benefit Costs Paid by OPM and Imputed to CFTC (6,547,842) (5,663,309)

 Transfers (in)/out without reimbursement (12,419) - 

Total Components of Net Cost That Are Not Part of Net Outlays $ (216,878,002) $ 11,086,525 

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

Acquisition of Capital Assets $ 7,847,406 $ 4,644,995 

Increase in Advances and Prepayments 8,347,597 - 

Nonexchange Interest Revenue (Excluding Interest Receivable) (53,886) (1,082,980) 

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

Outlays, Net

Distributed Offsetting Receipts (37,264) (5,106) 

$ 16,141,117 

$ 314,164,705 

$ 3,562,015 

$ 315,934,006 

AGENCY OUTLAYS, NET $ 314,127,441 $ 

26 COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

Note 12 Funds from Dedicated Collections 

Funds from dedicated collections arise from disgorgement and penalty collections and are 

transferred to the Customer Protection Fund, established by the Dodd-Frank Act. The collections 

are transferred from the custodial receipt account if they are found to be eligible before the end of 

each fiscal year. In cases where the collection has been returned to Treasury in error, the 

Commission can recover the funds. The collections will fund the Commission’s whistleblower 

awards program and customer education initiatives. 

The Dodd-Frank Act provides that whistleblower awards shall be paid under regulations 

prescribed by the Commission. An important prerequisite to implementation of the whistleblower 

awards program is the issuance of rules and regulations describing its scope and procedures. The 

Commission issued revised rules effective July 31, 2017. 

No eligible collections have been transferred into the fund since it reached its legislative maximum 

during FY 2014. The following chart presents the Fund’s balance sheets, statements of net costs, 

and statements of changes in net position as of and for the years ended September 30, 2021, and 

2020: 

2021 2020 

BALANCE SHEETS 

Fund Balance with Treasury $ 113,344,846 $ 5,351,553 

Investments - 117,000,000 

Accounts Receivable, Net - 842 

General Property, Plant and Equipment, Net - 7,161 

Advances and Prepayments 7,844 9,685 

TOTAL ASSETS $ 113,352,690 $ 122,369,241 

Accounts Payable $ 898,447 $ 1,234,029 

Accrued Funded Payroll 200,819 219,313 

Unfunded Annual Leave 356,457 260,900 

Liability for Whistleblower Awards 203,970,000 3,627,027 

Total Liabilities $ 205,425,723 $ 5,341,269 

Cumulative Results of Operations - Funds from Dedicated Collections (92,073,033) 117,027,972 

Total Net Position $ (92,073,033) $ 117,027,972 

TOTAL LIABILITIES AND NET POSITION $ 113,352,690 $ 122,369,241 

STATEMENTS OF NET COST 

Gross Costs $ 209,154,891 $ 9,494,170 

TOTAL NET COST OF OPERATIONS $ 209,154,891 $ 9,494,170 

STATEMENTS OF CHANGES IN NET POSITION 

Beginning Cumulative Results of Operations $ 117,027,972 $ 125,439,162 

Nonexchange Interest Revenue 53,886 1,082,980 

Net Cost of Operations (209,154,891) (9,494,170)

 Net Change in Cumulative Results of Operations $ (209,101,005) $ (8,411,190) 

TOTAL NET POSITION, ENDING $ (92,073,033) $ 117,027,972 

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 27 
 

 

304,000,000 - 304,000,000

 50,815 12,419 - 63,234 

 111,075,846 11,942,493 - 123,018,339 

(80,060,414) - (80,060,414) 

 111,075,846 (68,117,921) - 42,957,925 

6,704,751 1,939,176 8,643,927

 111,075,846 (61,413,170) 1,939,176 51,601,852 

(37,264) - (37,264) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitment ⋆ Forward-Thinking ⋆ Teamwork ⋆ Clarity 

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 

Commodity Futures Trading Commission 

COMBINING STATEMENTS OF BUDGETARY RESOURCES BY MAJOR ACCOUNT 

For the Years Ended September 30, 2021 and 2020 

2021 

BUDGETARY RESOURCES

 Unobligated Balance from Prior Year Budget Authority, Net (Note 10A) $ 119,887,663 $ (70,827,132) $ 1,945,682 $ 51,006,213

 Appropriations -

 Spending Authority from Offsetting Collections 

TOTAL BUDGETARY RESOURCES $ 119,938,478 $ 233,185,287 $ 1,945,682 $ 355,069,447 

STATUS OF BUDGETARY RESOURCES

 New Obligations and Upward Adjustments $ 8,862,632 $ 294,598,457 $ 6,506 $ 303,467,595

 Unobligated Balance, End of Year 

Apportioned, Unexpired Accounts 

Unapportioned, Unexpired Accounts -

Unexpired Unobligated Balance, End of Year 

Expired Unobligated Balance, End of Year -

 Unobligated Balance, End of Year (Total) 

TOTAL BUDGETARY RESOURCES $ 119,938,478 $ 233,185,287 $ 1,945,682 $ 355,069,447 

OUTLAYS, NET 

Outlays, Net $ 9,006,707 $ 303,469,727 $ 1,688,271 $ 314,164,705 

Distributed Offsetting Receipts -

AGENCY OUTLAYS, NET $ 9,006,707 $ 303,432,463 $ 1,688,271 $ 314,127,441 

Combined 

Salaries and 

Expense 

Information 

Technology 

Customer 

Protection Fund 

2020 Salaries and 

Expense Combined 

Customer 

Protection Fund 

Information 

Technology 

BUDGETARY RESOURCES

 Unobligated Balance from Prior Year Budget Authority, Net (Note 10A) $ 143,572,792 $ (119,582,735) $ 4,153,910 $ 28,143,967

 Appropriations - 315,000,000 - 315,000,000

 Spending Authority from Offsetting Collections 1,019,085 12,716 - 1,031,801 

TOTAL BUDGETARY RESOURCES $ 144,591,877 $ 195,429,981 $ 4,153,910 $ 344,175,768 

STATUS OF BUDGETARY RESOURCES

 New Obligations and Upward Adjustments $ 26,250,571 $ 268,039,403 $ 2,301,550 $ 296,591,524

 Unobligated Balance, End of Year 

Apportioned, Unexpired Accounts 118,341,306 24,972,265 5,001 143,318,572 

Unapportioned, Unexpired Accounts - (103,626,536) - (103,626,536) 

Unexpired Unobligated Balance, End of Year 118,341,306 (78,654,271) 5,001 39,692,036 

Expired Unobligated Balance, End of Year - 6,044,849 1,847,359 7,892,208

 Unobligated Balance, End of Year (Total) 118,341,306 (72,609,422) 1,852,360 47,584,244 

TOTAL BUDGETARY RESOURCES $ 144,591,877 $ 195,429,981 $ 4,153,910 $ 344,175,768 

OUTLAYS, NET 

Outlays, Net $ 32,096,783 $ 256,483,379 $ 27,353,844 $ 315,934,006 

Distributed Offsetting Receipts - (5,106) - (5,106) 

AGENCY OUTLAYS, NET $ 32,096,783 $ 256,478,273 $ 27,353,844 $ 315,928,900 

COMMODITY FUTURES TRADING COMMISSION FY 2021 AGENCY FINANCIAL REPORT 28