Office of the Executive Director

The Office of the Executive Director (OED) formulates and implements the administrative policies and operations of the agency. The OED staff formulates budget strategies, supervises the allocation and use of agency resources, promotes management controls and financial integrity, oversees the development and implementation of the agencies automated information systems, and provides the agency's library services. In addition, the OED staff ensures the agency's compliance with federal requirements enacted by Congress and imposed by the Office of Management and Budget, the General Accounting Office, the Office of Personnel Management, and other Federal agencies. The administrative support offices under the supervision of the Executive Director are the Offices of Administrative Services, Financial Management, Information Resources Management, Human Resources, and the Library. The Office of Proceedings is under the administrative direction of OED.

During FY 1996 the Office of the Executive Director established the End-User Advisory Group and appropriate subcommittees to assist in the establishment of priorities for all aspects of information resources management. The Advisory Group, which has representatives from all divisions and regions of CFTC, grew out of a National Performance Review initiative to provide employees with greater input into the allocation and use of the agency's information resources. This year, the Group provided recommendations on the agency's long-range information development priorities, the selection of new software for word processing, spreadsheets, and data management, and the approach to several information policy issues.

The Office of the Executive Director also took over the preparation of several Commission publications. OED prepared a new brochure describing the Commission's reparations program, and developed the agency's annual report to Congress. Both publications are available in hard copy and on the agency's Internet home page. In response to an initiative of the National Performance Review and the implementing Executive Order, OED coordinated a review of internal procedures which resulted in the elimination of over two-thirds of agency-wide directives. The remaining directives were updated and made available on the agency's bulletin board system, providing access to all employees. OED also initiated strategic planning efforts to meet the requirements of the Government Performance and Results Act and acted as the Commission liaison with the General Accounting Office.

The Library continued its enhancement of electronic access to research materials during FY 1996 via increased usage of CD- ROM applications and the offering of Internet access to Commission employees. The Library also completed the bar coding of the Commission's book collection in anticipation of implementing an on-line circulation system early in FY 1997.

The Office of Administrative Services (OAS) is responsible for procurement and contracting, property accountability, contract and lease administration, telecommunications management, issuance of supplies, space acquisition and management, mail receipt and distribution, publications and printing. During FY 1996, the OAS staff upgraded the telecommunications system by installing the CFTC's own digital switch. The new system provides better communication capabilities at a reduced cost. OAS also renewed the lease for the Kansas City office and eliminated additional space in the Los Angeles office.

The Office of Financial Management (OFM) manages the agency's financial and budget functions, including administrative accounting, voucher audit and budget formulation and execution. During fiscal 1996, OFM upgraded the CFTC's financial management system software application to improve and enhance its functionality. The upgraded system provides better tracking and reporting of receivables, the ability to participate in electronic commerce, and more streamlined financial reporting to comply with various Treasury and OMB mandates. OFM also installed an automated system for processing travel related documents. Staff throughout the Commission were trained on the new system, which will provide improved accuracy and processing of travel orders and vouchers.

The Office of Human Resources (OHR) provides advice and services to the Commission in such areas as recruiting, pay administration, employee-labor relations, benefit services and administration, diversity programs, performance management and employee recognition, payroll, and employee development and training. During FY 1996 OHR underwent a substantial reorganization to provide better services to its customer. Two teams were created that focus on important functions and services of the office. In addition, OHR provided support for the hiring of additional staff, began the task of developing a new performance and awards system, coordinated the Commission's annual awards ceremony, provided management briefings on dealing with employee problems and leave issues, started a Work-Life program for CFTC employees which included a Wellness Fair, rewrote and published a new Employee Handbook, and continued an ongoing effort to empower employees to access and change their own benefits and records through an electronic system called Employee Express. OHR also implemented delegated examining authority, which allows CFTC to be responsible for all aspects of recruitment and hiring of its employees.

The Office of Information Resources Management (OIRM) is responsible for automated data processing and information resources management which includes (1) operating and maintaining computer and data communications network hardware and software, (2) enhancing existing information systems, (3) developing new information systems, (4) providing user information services, and (5) ensuring information security and integrity. During FY 1996, OIRM activities including the following:

Proceedings
The Office of Proceedings is under the administrative direction of the Office of the Executive Director. Proceedings is divided into two sections--the complaints section and the hearings section. The complaints section receives customer claims (called "reparations complaints") against persons or firms registered under the Commodity Exchange Act, prepares claims for forwarding to the hearings section and dismisses claims which are clearly outside the Commission's jurisdiction or which are pending in another forum. Judgment Officers decide reparations complaints in voluntary and summary proceedings and Administrative Law Judges conduct formal proceedings. The Administrative Law Judges also decide administrative enforcement cases brought by the Commission against persons or firms who have violated the Commodity Exchange Act or the Commission's rules and regulations.

The Office of Proceedings also provides information about the complaints process and the number of complaints filed against specific firms in response to about 14,000 telephone inquiries during the year. Many telephone calls come from members of the public who are considering investing with these firms. Computerized information on the number of complaints against each firm allows the staff to retrieve this information and respond quickly to requests. During FY 1996, the Office of Proceedings implemented a new case tracking system which tracks the progress of each case from receipt through disposition in the Office of Proceedings, through any appeal to the Commission and through any appeal to Federal court. This system not only assists case management within the agency, but also allows the Office of Proceedings to provide better information on the status of cases in response to public inquiries.

Both the complaints and the hearings sections maintain current Reparations Sanctions In Effect List and an Enforcement Sanctions in Effect List. The Reparations Sanctions in Effect List, which is published annually and updated twice a month, is a record of individuals and firms who have not paid reparations awards. The Enforcement Sanctions In Effect List, which is published annually and updated quarterly, is a record of individuals and firms who have enforcement sanctions such as trading prohibitions outstanding against them. These lists are made available to the public and are distributed to the exchanges, the National Futures Association, the Futures Industry Association, the National Association of Securities Dealers and the Securities and Exchange Commission for use in their compliance efforts.

During FY 1996 customer complaints resulted in about $875,000.00 in reparations awards. The decisions rendered in reparations cases continue to provide valuable guidance to the commodities industry on a wide variety of legal issues.

The following statistics reflect the status of reparation complaints and administrative enforcement cases at the end of fiscal year 1996:

Status of Reparation Complaints Processed, FY 1995 and FY 1996

Reparation complaints pending beginning of fiscal year - 33 - 30

Reparation complaints filed or reinstated 155 - 172

Reparation complaints dismissed or settled 19 - 27

Reparation complaints forwarded for all types of proceedings - 139 - 136

Reparation complaints pending end of fiscal year - 30 - 39

Status of Enforcement Caseload Statistics, FY 1995 and FY 1996

Enforcement cases pending beginning of fiscal year - 22 - 25

Enforcement cases received for adjudication - 44 - 23

Enforcement cases settled - 1 - 4

Enforcement decisions issued - 40 - 23

Enforcement cases pending end of fiscal year - 25 - 21

STATUS OF REPARATION CASES, FY 1995 AND FY 1996

Reparation cases pending beginning of fiscal year - 139 - 92

Reparation cases received for all types of proceedings - 158 - 147

Reparation cases dismissed for cause - 14 - 5

Reparation cases settled - 126 - 61

Reparation cases disposed of by default - 16 - 13

Reparation cases disposed of by initial decision - 49 - 67

Cases pending end of fiscal year - 92 - 93