Accounting for Treasury Judgment Fund

1
Accounting for Treasury Judgment Fund

• Presented by
• Financial Accounting and Services Division
• Financial Management Service
• September 19, 2007

2
Topics

• Background
• Guidance
• Accounting Transactions
• Confirmations
• Contacts

3
Background

• What is the Judgment Fund?
• A permanent, indefinite appropriation available
  to pay
• Many judicially and administratively ordered
  monetary awards against the United States
• Amounts owed under compromise agreements
  negotiated by the U.S. Department of Justice in
  settlement of claims arising under actual or
  imminent litigation, if a judgment on the merits
  would be payable from the Judgment Fund
• Statutory authority for Judgment Fund
  appropriation is 31 U.S.C 1304

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Background (cont.)

• Who Administers the Judgment Fund?
• The Judgment Fund Branch (JFB) of the Financial
  Management Service (FMS) administers the Judgment
  Fund.
• The JFB is responsible for
• Ensuring that the agency has provided sufficient
  documentation to satisfy the criteria for making
  a payment from the Judgment Fund. The criteria
  is stated in 31 U.S.C. 1304.
• Seeking reimbursements for payments in
  Notification and Federal Employees
  Antidiscrimination and Retaliation (No FEAR) Act
  and Contract Disputes Act (CDA) cases

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Background (cont.)

• Reimbursable Claims
• Notification and Federal Employees
  Antidiscrimination and Retaliation Act (No FEAR)
• 5 U.S.C. 2301 note
• Contract Disputes Act (CDA)
• 41 U.S.C. 612

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Background (cont.)

• No FEAR Reimbursement Obligations
• OPM regulations, 5 CFR Part 724
• Within 45 days of receipt of notice for
  reimbursement, agencies must
• Repay FMS, or
• Contact FMS to make arrangements for repayment
• Agencies that do not meet this requirement will
  be posted annually on FMS public website until
  the obligation is paid or arrangements have been
  made.

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Background (cont.)

• CDA Reimbursement Obligations
• 41 U.S.C. 612
• Within 30 days of receipt of notice for
  reimbursement, the responsible agency must
• Repay FMS, or
• Contact FMS to make arrangements for repayment
• If the agency fails to respond within 60 days of
  the initial contact, FMS will send a letter to
  the responsible agencys Chief Financial Officer
  (CFO).
• The agencys CFO has 30 days to contact FMS
  regarding reimbursement.
• Starting in FY2008, agencies that fail to make
  any response will be identified as nonresponsive
  on FMS public website until the obligation has
  been paid or arrangements have been made.

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Background (cont.)

• Agencies Outstanding Balances
• Outstanding balances are available on
• No FEAR page
• http//fms.treas.gov/tma/fear-act.html
• CDA page
• http//fms.treas.gov/tma/contract.html

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Background (cont.)

• Visit the Judgment Fund Website
• http//fms.treas.gov/judgefund/
• Judgment Fund Regulation
• (31 CFR Part 256, Final Rule)
• Treasury Financial Manual
• (1 TFM 6-3100)
• Common Questions page
• Current Judgment Fund forms
• Links
• Public website
• Authorized User website

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Guidance

• SFFAS No. 4, Managerial Cost Accounting Standards
  Concepts
• SFFAS No. 5, Accounting for Liabilities of the
  Federal Government
• SFFAS No. 30, Inter-Entity Cost Implementation
  Amending SFFAS 4
• Interpretations No. 2, Accounting for Treasury
  Judgment Fund Transactions
• Interpretation No. 6, Accounting for Imputed
  Intra-departmental Costs An Interpretation of
  SFFAS No. 4

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Guidance (cont.)

• OMB Circular A-136, Financial Reporting
  Requirements
• Federal Intragovernmental Transactions Accounting
  Policies Guide
• TFM Bulletin No. 2007-08, Yearend Closing

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Accounting Transactions
Agency Accounting for Non-reimbursable
payments Agency records contingent liability for
pending litigation with non-federal entity in
which the outcome for loss is probable and
estimable. Proprietary Entry 6790N Other
Expenses Not Requiring Budgetary Resources
2920N Contingent Liabilities
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Accounting Transactions (cont.)
A claim is settled or a court judgment is
assessed against a Federal entity, and the
Judgment Fund is determined to be the appropriate
source of payment. The Agency submits the proper
forms to the Treasury Judgment Fund. Proprietary
Entry 2920N Contingent Liabilities
6790N Other Expenses Not Requiring Budgetary
Resources 6730F(20) Imputed Costs
5780F(20) Imputed Financing Sources
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Accounting Transactions (cont.)
Agency Accounting for Reimbursable payments (CDA
No FEAR) Agency records contingent liability
for pending litigation with non-federal entity in
which the outcome for loss is probable and
estimable. Proprietary Entry 6800N Future
Funded Expenses 2920N Contingent
Liabilities
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Accounting Transactions (cont.)
A CDA or No FEAR claim is settled or a court
judgment is assessed against a Federal entity,
and the Judgment Fund is determined to be the
appropriate source of payment. The Agency
submits the proper forms to the Treasury Judgment
Fund. Proprietary Entry 2920N
Contingent Liabilities 6800N Future
Funded Expenses 6100F(20) Operating
Expenses/Program Costs 2110F(20)
Accounts Payable 3107 Unexpended
Appropriations Used 5700
Expended Appropriations
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Accounting Transactions (cont.)
Budgetary Entry 4610 Allotments Realized
Resources 4901F(20) Delivered Orders
Obligations, Unpaid
17
Accounting Transactions (cont.)
The agency reimburses the Treasury Judgment
Fund. Proprietary Entry 2110F(20) Accounts
Payable 1010 Fund Balance with
Treasury Budgetary Entry 4901F(20) Delivered
Orders Obligations, Unpaid 4902F(20)
Delivered Orders Obligations,
Paid
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Confirmations

• Follow the guidance prescribed by FMS in the
  Federal Intragovernmental Transactions Accounting
  Policies Guide
• Quarterly, FMS will post the outstanding
  receivables and revenue posted for that period
  for both CDA and No FEAR to its website
• Agencies must respond to the accuracy of the
  amounts reported by FMS

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Contacts

• Jennifer Fitzmaurice, Accounting and Reporting
• [phone]
• Jennifer.Fitzmaurice_at_fms.treas.gov
• Teresa Casswell, CDA and No FEAR
• [phone]
• Teresa.Casswell_at_fms.treas.gov