Accounts receivable consist of amounts owed the CFTC by other Federal agencies and the public. Accounts receivable are valued at their net collectable 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 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 Commodity Exchange Act (CEA) or Commission regulations. Violators may be subject to a variety of sanctions including fines, injunctive orders, bars or suspensions, rescissions of illegal contracts, disgorgements, and restitutions to customers.
Historical experience has indicated that a high percentage of custodial receivables prove uncollectible. The Commission’s methodology used to estimate the allowance for uncollectible amounts related to custodial accounts, considers all receivables to be 100% uncollectible unless deemed otherwise. An allowance for uncollectible accounts has been established and included in accounts receivable on the balance sheets. The allowance is based on past experience in the collection of accounts receivable and analysis of outstanding balances. Accounts are re-estimated quarterly based on account reviews and the agency determination that changes to the net realizable value are needed.
Accounts receivable, as of September 30, 2010 and 2009, consisted of the following:
|Custodial Receivables, Net:|
|Civil Monetary Penalty Interest||$519,602||$1,837,945|
|Civil Monetary Penalties, Fines, and Administrative Fees||192,490,613||224,068,663|
|Less: Allowance for Loss on Interest||(519,602)||(1,834,753)|
|Less: Allowance for Loss on Penalties, Fines, and Administrative Fees||(192,219,935)||(223,040,935)|
|Registration and Filing Fees||2,049,256||672,300|
|NET CUSTODIAL RECEIVABLES||$2,319,934||$1,703,220|
|OTHER ACCOUNTS RECEIVABLE||$4,836||$18,207|
|ACCOUNTS RECEIVABLE, NET||$2,324,770||$1,721,427|