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GAO-15-146R: 

United States Government Accountability Office: 
GAO:
441 G St. N.W. 
Washington, DC 20548: 

November 17, 2014: 

The Honorable Tim Johnson: 
Chairman: 
The Honorable Mike Crapo: 
Ranking Member: 
Committee on Banking, Housing, and Urban Affairs: 
United States Senate: 

The Honorable Jeb Hensarling: 
Chairman: 
The Honorable Maxine Waters: 
Ranking Member: 
Committee on Financial Services: 
House of Representatives: 

Financial Audit: Bureau of Consumer Financial Protection's Fiscal 
Years 2014 and 2013 Financial Statements: 

This report transmits the GAO auditor's report on the results of our 
audits of the fiscal years 2014 and 2013 financial statements of the 
Bureau of Consumer Financial Protection, known as the Consumer 
Financial Protection Bureau (CFPB), which is incorporated in the 
enclosed Financial Report of the Consumer Financial Protection Bureau 
for Fiscal Year 2014. These financial statements are the 
responsibility of CFPB. 

As discussed more fully in the auditor's report that begins on page 57 
of the enclosed financial report, we found: 

* the CFPB financial statements as of and for the fiscal years ended 
September 30, 2014, and 2013, are presented fairly, in all material 
respects, in accordance with U.S. generally accepted accounting 
principles; 

* CFPB's internal control over financial reporting was not effective 
as of September 30, 2014, because of a material weakness[Footnote 1] 
in internal control over the reporting of accounts payable; and: 

* no reportable noncompliance for fiscal year 2014 with provisions of 
applicable laws, regulations, contracts, and grant agreements we 
tested. 

This report also provides a discussion of a continuing significant 
deficiency[Footnote 2] in CFPB's internal control over property and 
equipment that we believe merits the attention of those charged with 
governance of CFPB. 

Title X of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act of 2010[Footnote 3] and the Full-Year Continuing Appropriations 
Act, 2011,[Footnote 4] both require GAO to annually audit CFPB's 
financial statements. This report responds to these requirements. We 
conducted our audits in accordance with U.S. generally accepted 
government auditing standards. 

We are sending copies of this report to the Director of the Bureau of 
Consumer Financial Protection, the Chair of the Federal Reserve, the 
Inspector General of the Board of Governors of the Federal Reserve 
System, the Director of the Office of Management and Budget, 
interested congressional committees and members, and other interested 
parties. In addition, the report is available at no charge on the GAO 
website at [hyperlink, http://www.gao.gov]. 

If you or your staffs have any questions concerning this report, 
please contact me at (202) 512-3406 or malenichj@gao.gov. Contact 
points for our Offices of Congressional Relations and Public Affairs 
may be found on the last page of this report. 

Signed by: 

J. Lawrence Malenich: Director: 
Financial Management and Assurance: 

Enclosure: 

Footnotes: 

[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] A significant deficiency is a deficiency, or a combination of 
deficiencies, in internal control that is less severe than a material 
weakness, yet important enough to merit the attention by those charged 
with governance. 

[3] Pub. L. No. 111-203, § 1017(a)(5), 124 Stat. 1376, 1976-1977 
(2010), codified at 12 U.S.C. § 5497(a)(5). 

[4] Pub. L. No. 112-10, § 1573(a), 125 Stat. 38, 138 (2011), codified 
at 12 U.S.C. § 5496a. 

[End of section] 

Financial Report of the Consumer Financial Protection Bureau: 

Fiscal year 2014: 

[Photograph: Director Richard Cordray along with CFPB Senior 
Leadership at a CFPB Field Hearing in Indianapolis, IN] 

Table of contents: 

Message from Richard Cordray: 

1. Management's Discussion and Analysis: 

1.1 The CFPB at a Glance: Overview of the Consumer Financial 
Protection Bureau: 

1.2 The CFPB performance and results: 

1.3 Civil Penalty Fund Annual Report: 

Bureau-Administered Redress: 

1.4 Management assurances and audit results: 

1.5 Financial analysis: 

1.6 Possible future risks and uncertainties: 

2. Financial Statements and Note Disclosures: 

Message from the Chief Financial Officer: 

2.1 U.S. Government Accountability Office auditor's report: 

Appendix I. Management's report on internal control over financial 
reporting: 

Appendix II. Management's response to the auditor's report: 

2.2 Financial statements and notes: 

Note 1: Summary of significant accounting policies: 

Note 2: Fund balance with Treasury: 

Note 3. Investments: 

Note 4. Cash and other monetary assets: 

Note 5: Accounts receivable: 

Note 6: Property, equipment and software, ne: 

Note 7: Advances & prepayments: 

Note 8: Other liabilities: 

Note 9: Liabilities not covered by budgetary resources: 

Note 10: Commitments and contingencies: 

Note 11: Intragovernmental costs and exchange revenue: 

Note 12: Apportionment categories of obligations incurred: 

Note 13: Undelivered orders at the end of the period: 

Note 14: Reconciliation of net cost to budget: 

Note 15: President's Budget: 

Note 16: Rental payments for space: 

Note 17: Funds from dedicated collections: 

Note 18: Subsequent events: 

Note 19: Fiduciary activities: 

2.3 Other information: 

[End of section] 

Message from Richard Cordray: Director of the CFPB: 

The Consumer Financial Protection Bureau (CFPB) is the Nation's only 
Federal agency whose sole focus is protecting consumers in the 
financial marketplace for products and services. When Congress created 
the Bureau through the Dodd-Frank Wall Street Reform and Consumer 
Protection Act of 2010, it provided the CFPB with a number of tools to 
fulfill our mission to make those markets work for Americans. Over the 
past fiscal year we have continued to achieve specific and tangible 
results for consumers whether they are applying for a mortgage, 
borrowing for college, choosing a credit card, or using any number of 
other consumer financial products. 

During fiscal year 2014, CFPB enforcement actions resulted in almost 
$4 billion in penalties, redress and relief to consumers imposed 
against defendants who violated Federal consumer financial laws. For 
example, enforcement actions against several credit card companies 
provided relief of more than $1 billion to harmed consumers. The CFPB 
also ordered $2.6 billion in relief for consumers who were harmed by 
systemic misconduct by two mortgage servicers. Further, we assessed an 
additional $92.7 million in Civil Monetary Penalties to deter future 
occurrences of unfair, deceptive and abusive acts. 

In Fall 2013, we issued a rule requiring easier-to-use mortgage 
disclosure forms that clearly lay out the terms of a mortgage for a 
homebuyer. The new forms integrate two overlapping forms that were 
each required by federal law for more than 30 years: the Truth in 
Lending Act form and the Real Estate Settlement Procedures Act form. 
Our new forms ensure that consumers have the information they need, 
when they need it and empower consumers to shop around for a mortgage, 
giving them greater control over their home-buying decisions. 

During fiscal year 2014, we also issued a rule that allows the CFPB to 
supervise certain nonbank student loan servicers, making the Bureau 
the first federal agency to have oversight over this segment of the 
student loan market, which is the nation's second largest consumer 
debt market. The CFPB already oversees student loan servicing at large 
banks, but this new supervision of the nonbank loan servicers will 
provide the Bureau with visibility into nearly 50 million borrower 
accounts and will allow us to ensure that bank and nonbank student 
loan servicers are playing by the same rules. 

The CFPB is committed to engaging with consumers and providing them 
with resources to help them navigate important decisions in their 
financial lives. For example, millions of Americans are managing money 
or property for a loved one who is unable to pay bills or make 
financial decisions on their own, which can be overwhelming work. In 
fiscal year 2014 we released four Managing Someone Else's Money guides 
to help these financial caregivers understand their duties, recognize 
scams and exploitation, and know where to get help when necessary. The 
Bureau also continues to build the AskCFPB interactive online tool, 
which provides consumers with clear, unbiased answers to their 
financial questions. The CFPB now has more than 1,000 plain-language 
entries on student loans, money transfers, and many other products and 
services, which consumers can search and browse by product categories 
and tags. 

The CFPB continues to grow and mature as a Federal agency. In our 
first three years, we have grown from 58 employees at the beginning of 
fiscal year 2011 to 1443 employees at the end of fiscal year 2014. As 
we continue in our mission to make consumer financial markets work, we 
are committed to continued transparency into our performance and 
financial operations. As required by the Dodd-Frank Act, the CFPB 
prepared comparative financial statements for fiscal years 2014 and 
2013. The Government Accountability Office (GAO) rendered an 
unmodified or “clean” audit opinion on our financial statements. GAO 
noted one (1) material weakness and cited no instances of 
noncompliance with laws and regulations. 

I am very proud of our expert and enthusiastic staff and all of the 
great work they have accomplished over the past year, which is 
reflected in the assessment of our operations contained in this 
report. It attests to the persistent work of our colleagues who 
perform at the highest caliber and with a dedicated commitment to 
serve the public, protect consumers, support responsible businesses, 
and help safeguard the American economy. 

Sincerely, 

Signed by: 

Richard Cordray: 

[End of section] 

1. Management's Discussion and Analysis: 

1.1 The CFPB at a Glance: Overview of the Consumer Financial 
Protection Bureau: 

The Bureau of Consumer Financial Protection, known as the Consumer 
Financial Protection Bureau (CFPB or the Bureau), was established on 
July 21, 2010 under Title X of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act Public Law No. 111-203 (Dodd-Frank Act). The 
CFPB was established as an independent bureau within the Federal 
Reserve System. The Bureau is an Executive agency as defined in 
Section 105 of Title 5, United States Code. 

The Dodd-Frank Act authorizes the CFPB to exercise its authorities to 
ensure that, with respect to consumer financial products and services: 

1. Consumers are provided with timely and understandable information 
to make responsible decisions about financial transactions; 

2. Consumers are protected from unfair, deceptive, or abusive acts and 
practices and from discrimination; 

3. Outdated, unnecessary, or unduly burdensome regulations are 
regularly identified and addressed in order to reduce unwarranted 
regulatory burdens; 

4. Federal consumer financial law is enforced consistently in order to 
promote fair competition; and; 

5. Markets for consumer financial products and services operate 
transparently and efficiently to facilitate access and innovation. 

Under the Dodd-Frank Act, on the designated transfer date, July 21, 
2011, certain authorities and functions of several agencies relating 
to Federal consumer financial law transferred to the CFPB in order to 
accomplish the above objectives. These authorities were transferred 
from the Board of Governors of the Federal Reserve System (Board of 
Governors), Office of the Comptroller of the Currency (OCC), Office of 
Thrift Supervision (OTS), Federal Deposit Insurance Corporation 
(FDIC), National Credit Union Administration (NCUA), and the 
Department of Housing and Urban Development (HUD). In addition, 
Congress vested the Bureau with authority to enforce in certain 
circumstances the Federal Trade Commission's (FTC) Telemarketing Sales 
Rule and its rules under the FTC Act, although the FTC retains full 
authority over these rules. The Dodd-Frank Act also provided the CFPB 
with certain other Federal consumer financial regulatory authorities. 

Organizational Structure: 

Under the Dodd-Frank Act, the Secretary of the Treasury was 
responsible for establishing the CFPB and performing certain functions 
of the Bureau until a Director of the CFPB was in place. The Bureau's 
day-to-day operations were managed by the Special Advisor to the 
Secretary of the Treasury for the Consumer Financial Protection Bureau 
until January 4, 2012, when President Obama nominated Richard Cordray 
to be the first Director of the CFPB. Subsequently, the U.S. Senate 
confirmed the nomination of Richard Cordray on July 16, 2013, and 
Director Cordray was sworn in as the first Senate-confirmed Director 
of the CFPB on July 17, 2013. 

To accomplish its mission, the CFPB is organized into six primary 
divisions: 

1. Consumer Education and Engagement: provides, through a variety of 
initiatives and methods, including offices on specific populations, 
information to consumers to empower them to make financial decisions 
that are best for them. 

2. Supervision, Enforcement and Fair Lending: ensures compliance with 
Federal consumer financial laws by supervising market participants and 
bringing enforcement actions when appropriate. 

3. Research, Markets and Regulations: conducts research to understand 
consumer financial markets and consumer behavior, evaluates whether 
there is a need for regulation, and determines the costs and benefits 
of potential or existing regulations. 

4. Legal Division: ensures the Bureau's compliance with all applicable 
laws and provides advice to the Director and the Bureau's divisions. 

5. External Affairs: manages the Bureau's relationships with external 
stakeholders and ensures that the Bureau maintains robust dialogue 
with interested stakeholders to promote understanding, transparency, 
and accountability. 

6. Operations: builds and sustains the CFPB's operational 
infrastructure to support the entire organization and hears directly 
from consumers about challenges they face in the marketplaces through 
their complaints, questions, and feedback. 

The CFPB workforce is spread across the country with its headquarters 
in Washington, D.C. and regional offices in Chicago, New York City, 
and San Francisco. The headquarters is temporarily spread across 
locations within Washington, D.C., utilizing space pursuant to 
interagency agreements with the Department of the Treasury (Treasury), 
the Office of the Comptroller of the Currency, the General Services 
Administration and the Federal Housing Finance Agency (FHFA). The 
workforce in the CFPB's regional offices is predominantly mobile and 
therefore relatively minimal office space is used in the regions. 

Additional information on the organizational structure and 
responsibilities of the CFPB is available on CFPB's website at 
[hyperlink, http://www.consumerfinance.gov/]. 

[Figure: Organizational chart] 

Top level: Richard Cordray, Director: 

Second level, reporting to the Director: 
* Stuart Ishimaru, Assistant Director, Office of Minority and Women 
Inclusion; 
* Steven Antonakes, Deputy Director; 
* Christopher D'Angelo; Chief of Staff; 
* Wendy Kamenshine, Ombudsman; 
* Vacant, Administrative Law Judge. 

Third level, reporting to the Director: 

* Sartag Alag, Associate Director, Operations, Chief Operating 
Officer: 
- Suzanne Tosini, Assistant Director, Administrative Operations, Chief 
Administrative Officer (CAO); 
- Stephen Agostini, Assistant Director, Chief Financial Officer; 
- Analise Archer[A], Assistant Director, Human Capital, Chief Human 
Capital Officer (CHCO); 
- Ashwin Vassan, Assistant Director, Technology & Innovation, 
Chief Information Officer (CIO); 
- Scott Pluta, Assistant Director, Consumer Response Center; 
- David Gragan; Assistant Director, Procurement, Chief Procurement 
Officer (CPO). 
- M. Stacey Bach[A]; Assistant Director, Office of Equal Opportunity 
Employment (EEO)[B]. 

* Gail Hillebrand, Associate Director, Consumer Education & Engagement: 
- Daniel Munz[A], Assistant Director, Consumer Engagement; 
- Janeke Ratcliffe, Assistant Director, Financial Education; 
- Daniel Dodd-Ramirez, Assistant Director, Financial Empowerment; 
- Nord Dowd Eisenhower, Assistant Director, Older Americans; 
- Hollister Petreaus, Assistant Director, Servicemember Affairs; 
- Rohit Chopra, Assistant Director, Students; 

* Steven Amonakes, Associate Director. Supervision, Enforcement & Fair 
Lending: 
- Kent Markus, Assistant Director, Enforcement; 
- Patricia Ficklin, Assistant Director, Fair Lending and Equal 
Opportunity; 
- Paul Sanford, Assistant Director, Large Bank Supervision; 
- Peggy Twohig, Assistant Director, NonBank Supervision; 

* David Silberman, Associate Director, Research, Markets & Regulations: 
- William Wade-Grey, Assistant Director, Card Markets; 
- Bayard Stone Jr., Assistant Director, Credit Information, 
Collections, and Deposits Markets; 
- Jeffrey Langer, Assistant Director, Installment and Liquidity 
Lending Markets; 
- Patrica McClung, Assistant Director, Mortgage Markets; 
- Kelly Cochran, Assistant Director, Regulations; 
- Christopher Carroll, Assistant Director, Research; 

* Zixta Martinez, Associate Director, External Affairs: 
- Jennifer Howard, Assistant Director, Communications; 
- Chris Vaeth, Assistant Director, Community Affairs; 
- Daniel Smith, Assistant Director, Financial Institutions; 
- Delicia Hand, Staff Director, Consumer Advisory Board & Councils; 
- Cheryl Parker Rose, Assistant Director, Intergovernmental Affairs; 
- Catherine Gallicia, Assistant Director, Legislative Affairs; 

* Meredith Fuchs, Associate Director, General Council: 
- Vacant, Deputy Associate Director, Principal Deputy GC; 
- Richard Lepley, Assistant Director, Deputy GC, General Law & Ethics; 
- To-Quyen Truong, Assistant Director, Deputy GC, Oversight, 
Legislation & Enforcement; 
- Steve Van Meter, Assistant Director, Deputy GC, Law & Policy. 

Legend: 
[A] Position currently filled on an Acting basis. 

[B] Position has direct report responsibilities to the Director. 

[End of figure] 

Advisory groups: 

The CFPB established four independent advisory bodies to provide 
consultation and advice to the Director on a range of issues within 
the CFPB's authority. Specifically, the CFPB has formally chartered 
the following advisory groups: 

* Consumer Advisory Board – Through a public process, the Bureau 
invited external experts, industry representatives, consumers, 
community leaders, and advocates to nominate individuals to serve as 
members of this advisory group. The Consumer Advisory Board (CAB) is a 
group of experts on consumer protection, consumer financial products 
or services, community development, fair lending, civil rights, 
underserved communities, and communities that have been significantly 
impacted by higher-priced mortgage loans. They are a source of market 
intelligence and expertise, and they advise and consult on Federal 
consumer finance issues. The CAB informs the Director about emerging 
practices or trends in the consumer finance industry, and shares 
analysis and recommendations. Members are charged with identifying and 
assessing the impact of emerging products, practices, or services on 
consumers and other market participants. During fiscal year 2014 the 
CAB met three times – February 2014 in Washington D.C., June 2014 in 
Reno, Nevada, and September 2014 in Washington, DC. 

* Community Bank Advisory Council – The Community Bank Advisory 
Council (CBAC) advises on the market impact of consumer financial 
products or services, specifically from the unique perspectives of 
community banks. Members share information, analysis, and 
recommendations to better inform the CFPB's policy development, 
rulemaking, and engagement work. During fiscal year 2014 the CBAC met 
twice – October 2013 and March 2014 in Washington, D.C. – and held 
conference call meetings in December 2013 and May 2014. 

* Credit Union Advisory Council – The Credit Union Advisory Council 
(CUAC) advises on the market impact of consumer financial products or 
services, specifically from the unique perspectives of credit unions. 
Members share information, analysis, and recommendations to inform the 
CFPB's policy development, rulemaking, and engagement work. During 
fiscal year 2014 the CUAC met twice – October 2013 in Chicago, IL, and 
March 2014 in Washington, D.C. – and held conference call meetings in 
December 2013 and June 2014. 

* Academic Research Council – The Academic Research Council (ARC) was 
established to assist the CFPB with research, analysis, and reports on 
topics relating to CFPB's mission, including developments in markets 
for consumer financial products and services, consumer awareness, and 
consumer behavior. The Council is made up of scholars with relevant 
methodological and subject-matter expertise. The Council advises the 
CFPB on research methodologies, data collection, and analytic 
strategies, and provides feedback about research and strategic 
planning. During fiscal year 2014, the ARC held a meeting in April 
2014 in Washington, D.C. 

Growth of the CFPB: 

Since its inception, the CFPB has grown in the number of employees and 
the corresponding funding needed to carry out its duties and 
responsibilities. At the end of fiscal year 2014, the CFPB was still 
below the employment levels and funding it estimates it will need to 
achieve the mission and responsibilities mandated by Congress in the 
Dodd-Frank Act. The CFPB's growth to date has been relatively steady 
and consistent. The charts below provide a historical depiction of the 
growth for employees and funding levels. 

Figure 1: CFPB Employees By Fiscal Year: 

[Refer to PDF for image: line graph] 

Graph depicts number of employees for Fiscal year 2010-2013. 

[End of figure] 

FY 2010: 58; 
FY 2011: 663; 
FY 2012: 970; 
FY 2013: 1,335; 
FY 2014: 1,443. 

[End of figure] 

Figure 2: Office Percentage Of Total Positions (As Of September 30, 
2014): 

[Refer to PDF for image: pie-chart] 

Director: 2%; 
External Affairs: 3%; 
Centralized Services, Ombudsman: 4%; 
Legal Division: 5%; 
Consumer Education & Engagement: 5%; 
Research, Markets & Regulations: 9%; 
Operations: 27%; 
Supervision, Enforcement & Fair Lending: 45%. 

Within the Operations Division, displayed as 27% of total CFPB 
positions, the Office of Consumer Response comprises 11% of total CFPB 
positions, while all other Operations functions comprise 16%. All 
percentages provided above are rounded. 

[End of figure] 

Figure 3: Fiscal Year Transfers Requested Compared To The Funding Cap: 

2011: 
Transfers Requested: $163 million; 
Funding Cap: $498 million. 

2012: 
Transfers Requested: $343 million; 
Funding Cap: $548 million. 

2013: 
Transfers Requested: $518 million; 
Funding Cap: $598 million. 

2013: 
Transfers Requested: $534 million; 
Funding Cap: $608 million. 

Additional information on how the CFPB is funded can be found in 
Section 1.5 Financial Analysis. 

[End of figure] 

Mission, Vision, and Values: 

Our Mission: 

The CFPB is a 21st century agency that helps consumer financial 
markets work by making rules more effective, by consistently and 
fairly enforcing those rules, and by empowering consumers to take more 
control over their economic lives. 

Our Vision: 

If we achieve our mission, then we will have encouraged the 
development of a consumer financial marketplace: 

* Where customers can see prices and risks up front and where they can 
easily make product comparisons; 

* In which no one can build a business model around unfair, deceptive, 
or abusive practices; and 

* That works for American consumers, responsible providers, and the 
economy as a whole. 

We will achieve our mission and vision through: 

Data-Driven Analysis: 

The CFPB is a data-driven agency. We take in data, manage it, store 
it, share it appropriately, and protect it from unauthorized access. 
Our aim is to use data purposefully, to analyze and distill data to 
enable informed decision-making in all internal and external functions. 

Innovative Use Of Technology: 

Technology is core to the CFPB accomplishing its mission. This means 
developing and leveraging technology to enhance the CFPB's reach, 
impact, and effectiveness. We strive to be recognized as an 
innovative, 21st century agency whose approach to technology serves as 
a model within government. 

Valuing The Best People And Great Teamwork: 

At the CFPB, we believe our people are our greatest asset. Therefore, 
we invest in world-class training and support in order to create an 
environment that encourages employees at all levels to tackle complex 
challenges. We also believe effective teamwork extends outside the 
walls of the CFPB. We seek input from and collaborate with consumers, 
industry, government entities, and other external stakeholders. 

We aim to embody the following values in everything we do: 

Service: 

Our mission begins with service to the consumer and our country. We 
serve our colleagues by listening to one another and by sharing our 
collective knowledge and experience. 

Leadership: 

Fostering leadership and collaboration at all levels is at the core of 
our success. We believe in investing in the growth of our colleagues 
and in creating an organization that is accountable to the American 
people. 

Innovation: 

Our organization embraces new ideas and technology. We are focused on 
continuously improving, learning, and pushing ourselves to be great. 

1.2 The CFPB performance and results: 

This section provides a summary of the CFPB's key performance outcomes 
as well as selected accomplishments that it has achieved this past 
fiscal year. This marks only the beginning of the Bureau's work on 
behalf of consumers and providers of financial products and services. 

The CFPB developed and issued a strategic plan consistent with the 
Government Performance and Results Act (GPRA) that was compiled by the 
Office of the Chief Strategy Officer [see hyperlink, 
http://www.consumerfinance.gov/strategic-plan]. The CFPB published its 
fiscal years 2013 to 2017 strategic plan in April 2013, which 
identifies four strategic goals and 28 associated performance 
measures. In order to meet the required due date of preparing and 
issuing this financial report not all performance measures could be 
included. However, a full Performance Report will be published in 
calendar year 2015, which will include the results of all 28 
performance measures, along with an analysis of CFPB's efforts to 
achieve its performance goals. Results reported below for the selected 
measures contained in this report show that the CFPB has met or 
exceeded 12 of the 13 measures (92 percent). 

Goal 1: Prevent financial harm to consumers while promoting good 
practices that benefit them: 

Prior to Congress enacting the Dodd-Frank Act, consumer financial 
protection had not been the primary focus of any one federal agency, 
and no agency could set the rules for the entire consumer financial 
market. The result was a system without sufficiently effective rules 
or consistent enforcement of the law. Consumer financial protection is 
the CFPB's singular focus. 

Performance Goal: 

Complete consumer protection related rulemakings within nine months of 
receipt of final public comments. 

Table 1: Percentage Of Proposed Rulemakings, Conducted Solely By The 
CFPB, Finalized Or Otherwise Resolved Within Nine Months Of The Due 
Date For Receipt Of The Final Public Comments: 

Target: 
FY 2013: 75%; 
FY 2014: 75%. 

Actual: 
FY 2013: 78%; 
FY 2014: 100%. 

[End of table] 

In Fiscal Year 2014, the Bureau finalized and issued a number of 
rulemakings within the nine months of the closing of a final comment 
period. The Bureau made additional updates to its mortgage rules and 
issued an interim final rule amending provisions in Regulation Z and 
final rules issued by the Bureau earlier that year, which, among other 
things, required that consumers receive counseling before obtaining 
high-cost mortgages and that servicers provide periodic account 
statements and rate adjustment notices to mortgage borrowers, as well 
as engage in early intervention when borrowers become delinquent. 

In November, 2013, the Bureau issued a final rule under Sections 1098 
and 1100A of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act (Dodd-Frank Act) along with forms that combined certain 
disclosures that consumers receive in connection with applying for and 
closing on a mortgage loan under the Truth in Lending Act (Regulation 
Z) and the Real Estate Settlement Procedures Act (Regulation X). The 
Bureau's final rule established new disclosure requirements and forms 
in Regulation Z for most closed-end consumer credit transactions 
secured by real property. 

Also, the Bureau issued a final rule describing data instructions for 
lenders to use in complying with the requirement under the High-Cost 
Mortgage and Homeownership Counseling Amendments to the Truth in 
Lending Act (Regulation Z) and Homeownership Counseling Amendments to 
the Real Estate Settlement Procedures Act (RESPA Homeownership 
Counseling Amendments) Final Rule to provide a homeownership 
counseling list using data made available by the Bureau or Department 
of Housing and Urban Development (HUD). 

In FY 2014, the Bureau amended Regulation E, which implements the 
Electronic Fund Transfer Act (EFTA), to provide new protections, 
including disclosure requirements, and error resolution and 
cancellation rights, to consumers who send remittance transfers to 
other consumers or businesses in a foreign country. The amendments 
implement statutory requirements set forth in the Dodd-Frank Act. The 
Bureau also made additional clarifying amendment and a technical 
correction to this final rule. 

Performance Goal: 

Ensure that all rulemakings are informed by public outreach processes, 
such as Small Business Regulatory Enforcement Fairness Act (SBREFA) 
panels and consumer and industry roundtables. 

Table 2: Percentage Of Significant Consumer Protection Related, Notice-
And-Comment Rulemakings Informed By Public Outreach Processes: 

Target: 
FY 2013: 100%; 
FY 2014: 100%. 

Actual: 
FY 2013: 100%; 
FY 2014: 100%. 

[End of table] 

During FY2014, CFPB rulemakings were informed by extensive public 
outreach efforts, including, roundtable events and outreach meetings 
with industry stakeholders and consumer advocates and as appropriate, 
Small Business Review Panel meetings with small business entities. The 
Bureau also received valuable input from members of its Consumer 
Advisory Board (CAB), Credit Union Advisory Council (CUAC), and 
Community Bank Advisory Council (CBAC). 

Additionally, CFPB staff participated in numerous outreach meetings 
and external events to monitor implementation issues in connection 
with its mortgage and remittances rules, as well as interview testing 
with consumers around the country to help the Bureau develop and 
design the TILA-RESPA Integrated Disclosure rule, and posted the model 
disclosures on its website for public consideration and feedback. 

Performance Goal: 

Successfully resolve the cases the CFPB files in court and 
administrative adjudicative proceedings whether by litigation, 
settlement, issuance of default judgment, or other means. 

Table 3: Percentage Of All Cases Filed By The CFPB Successfully 
Resolved Through Litigation, A Settlement, Issuance Of Default 
Judgment, Or Other Means: 

Target: 
FY 2013: 75%; 
FY 2014: 100%. 

Actual: 
FY 2013: 100%; 
FY 2014: 100%. 

[End of table] 

In FY 2014, the Bureau successfully resolved 40 public enforcement 
actions. These actions helped secure orders for almost $4 billion in 
penalties against defendants, redress and relief to more than 5.9 
million consumers who fell victim to various violations of consumer 
financial protection laws. Of those 40 public enforcement actions, 
five related to fair lending, including HMDA data reporting violations 
as well as discrimination in mortgage pricing, auto loan pricing, and 
credit card debt collection. These fair lending actions resulted in 
orders for $284 million to address the harm of approximately 419,000 
consumers. 

Goal 2: Empower consumers to live better financial lives: 

The CFPB works to arm consumers with the knowledge, tools, and 
capabilities they need in order to make better-informed financial 
decisions by engaging them in the right moments of their financial 
lives, in moments when they are most receptive to seeking out and 
acting on assistance. To that end, the CFPB will develop and maintain 
a variety of tools, programs and initiatives that provide targeted, 
meaningful, and accessible assistance and information to consumers at 
the moment they need them. 

Performance Goal: 

Decrease time between receiving and closing a complaint. 

Table 4: Intake Cycle Time: 

Target: 
FY 2013: 3 Days; 
FY 2014: 3 days. 

Actual: 
FY 2013: 1 Day; 
FY 2014: 1 day. 

[End of table] 

Table 5: Company Cycle Time: 

Target: 
FY 2013: 15 Days; 
FY 2014: 15 days. 

Actual: 
FY 2013: 12 Days; 
FY 2014: 12 days. 

[End of table] 

Table 6: Consumer Cycle Time: 

Target: 
FY 2013: 30 Days; 
FY 2014: 30 days. 

Actual: 
FY 2013: 4 Days; 
FY 2014: 2 days. 

[End of table] 

Table 7: Investigation Cycle Time: 

Target: 
FY 2013: 45 Days; 
FY 2014: 45 days. 

Actual: 
FY 2013: 78 Days; 
FY 2014: 56 days. 

[End of table] 

Complaint volume increased about 67 percent from 144,000 complaints in 
FY 2013 to 240,600 in FY 2014. In addition, Consumer Response added 
the ability to accept complaints about payday loans, prepaid cards, 
credit repair and debt settlement services, title and pawn loans and 
virtual currency during FY 2014. Consumer Response continued to refine 
its complaint handling processes and systems in FY 2014. Increasing 
efficiencies were achieved through improvements to product-specific 
complaint intake forms and automation where possible. 

Actions were taken to address the increase complaint volume and 
complexity and to improve its overall complaint handling operation. 
Process refinements implemented in the investigations part of the 
complaint lifecycle as well as product-specific training in FY 2013 
and FY 2014 continued to reduce the Investigations Cycle time in FY 
2014. 

Performance Goal: Facilitate the timely response to consumer 
complaints by companies. 

Table 8: Percentage Of Complaints Routed Through The Dedicated Company 
Portal: 

Target: 
FY 2013: 85%; 
FY 2014: 87%. 

Actual: 
FY 2013: 87%; 
FY 2014: 91%. 

[End of table] 

In FY 2014, the CFPB established company portal access and trained 
staff of approximately 700 companies to respond to complaints on the 
portal. 

PERFORMANCE GOAL: Expand capacity to handle consumer complaints. 

Table 9: Number Of Consumer Complaints Handled: 

FY 2013: 
Target: 125,000; 
Actual: 200,000. 

FY 2014: 
Target: 144,000; 
Actual: 240,600. 

[End of table] 

In FY 2014, the Bureau expanded the products and services about which 
it accepts complaints beyond credit cards, mortgages, bank accounts 
and services, consumer loans, private student loan, money transfers, 
credit reporting, and debt collection complaints. In FY 2014, the CFPB 
began to accept complaints about payday loans, prepaid cards, credit 
repair and debt settlement services, title and pawn loans, and virtual 
currency. The Bureau plans to continue to expand its complaint 
handling to accept other products and services under its authority. 

The Bureau also expanded its public Consumer Complaint Database, which 
was initially launched in June 2012 and populated with credit card 
complaints, to include complaints about additional products. In FY 
2013, the Bureau added complaints about mortgages, bank account and 
services, private student loans, other consumer loan complaints, 
credit reporting, and money transfer complaints, as well as fields for 
sub-issue and state. In November 2013, debt collection complaints were 
added to the database. Payday complaints were added to the database in 
July 2014. 

Performance Goal: 
Significantly increase targeted outreach activities and digital 
education materials in order to engage consumers at the right moment. 

Table 10: Targeted Populations Or Organizations Directly Serving 
Targeted Populations Reached By Digital Content, Decision Tools, 
Educational Materials And Resources: 

FY 2013: 
Target: 808,114; 
Actual: 5,000,000. 

FY 2014: 
Target: 1,903,417; 
Actual: 5,600,000. 

[End of table] 

In FY 2014, the CFPB continued to serve consumers with just-in-time 
financial information through AskCFPB, an online database of consumers'
 common questions around financial products and services. The CFPB 
launched a major release of Paying for College, an online suite of 
information and tools for helping consumers to understand their after-
graduation monthly debt payment before choosing a financial aid 
package. We also made investments in outreach that will maximize the 
awareness and value of our various products for consumers. 

Goal 3: Inform the public, policy makers, and the CFPB's own policy-
making with data-driven analysis of consumer finance markets and 
consumer behavior: 

Understanding how consumer financial markets work, the avenues for 
innovation in financial products and services, and the potential for 
risk to consumers is a core component of the CFPB's mission. The CFPB'
s aim is to ground all of its work – from writing rules and litigating 
enforcement actions to its outreach and financial literacy efforts – 
in the realities of the marketplace and the complexities of consumer 
behavior. 

Performance Goal: 
Increase the number of reports produced about specific consumer 
financial products, markets, or regulations and on consumer decision-
making. 

Table 11: Reports Produced About Specific Consumer Financial Products, 
Markets, Or Regulations And On Consumer Decision-Making: 

FY 2013: 
Target: 5; 
Actual: 5. 

FY 2014: 
Target: 4; 
Actual: 4. 

[End of table] 

Preparing reports is central to the Bureau's commitment to evidence-
based policy-making. The Bureau issued eight prominent reports in FY 
2014. These reports are intended to deepen the public's understanding 
of these issues and provide the Bureau and other policy makers with a 
stronger factual foundation on which to make policy judgments. In FY 
2014, Bureau's Division of Research, Markets & Regulations (RMR) 
introduced a new “Data Point” report series. Data Point reports are 
prepared by the RMR Office of Research to provide an evidence-based 
perspective on consumer financial markets, consumer behavior, and 
regulations to inform the public discourse. 

Goal 4: Advance the CFPB's performance by maximizing resource 
productivity and enhancing impact: 

In order to maximize the effectiveness of consumer protections 
established by Federal consumer financial law, the CFPB must acquire, 
maintain, support, and direct its resources in a way that enables it 
to operate efficiently, effectively, and transparently. This means 
developing, maintaining, and continuously improving the policies and 
controls in place to ensure the CFPB has the resources it needs and 
puts those resources to the best use possible. 

A key mission of the CFPB is to make financial products and services 
more transparent in the consumer marketplace. The CFPB strives to 
achieve the same level of commitment to transparency in its own 
activities, while respecting consumer privacy and confidentiality. To 
accomplish this, the CFPB develops and implements mechanisms and 
provides channels to maintain an open, collaborative dialogue with the 
public. 

Performance Goal: 
Release new datasets to the public, where legally permissible and 
appropriate, to allow for innovative uses of the data by individuals, 
non-profit entities, and businesses for the benefit of consumers. 

Table 12: Provision Of Data To The Public In Legally Permissible And 
Appropriate Instances: 

FY 2013: 
Target: 5 data sets; 
Actual: 7 data sets. 

FY 2014: 
Target: 4 data sets; 
Actual: 7 data sets. 

[End of table] 

In FY 2014, the CFPB launched its public data platform for Home 
Mortgage Disclosure Act data, and updated the information with 2013 
mortgage originations. This information will be available for use by 
industry advocates and consumers to intuitively search and work with 
the data and conduct analysis. The CFPB also released eRegs, a 
searchable tool for federal financial regulations. eRegs currently 
covers two major regulations for the financial industry, Reg Z and Reg 
E, and the Bureau is looking at potential opportunities for expansion. 
Also, in FY 2014, the CFPB built out its Paying for College website, 
with cost information on approximately 7,700 educational institutions. 

Performance Goal: 
Engage the public by hosting public field hearings, town hall 
meetings, Consumer Advisory Board meetings, and other events on 
consumer finance issues. 

Table 13: Number Of Public Hearings, Town Hall Meetings, Consumer 
Advisory Board Meetings, And Other Public Events Hosted Annually: 

FY 2013: 
Target: 8 events; 
Actual: 9 events. 

FY 2014: 
Target: 11 events; 
Actual: 13 events. 

[End of table] 

The Bureau hosted 13 public events in FY 2014, focused on key issues 
affecting consumer financial markets such as credit cards, mortgages, 
auto finance, and payday lending. These included three meetings of its 
Consumer Advisory Board. The Bureau also participated in dozens of 
public events hosted by others in FY 2014, including testifying before 
Congress on nine occasions to discuss policy, operations and budget 
matters. 

1.3 Civil Penalty Fund Annual Report: 

Section 1055(a) of the Dodd-Frank Act authorizes the CFPB to obtain 
any appropriate legal or equitable relief for violations of Federal 
consumer financial laws. That relief may include civil penalties. 
Section 1017(d) of the Dodd-Frank Act further established a Consumer 
Financial Civil Penalty Fund (Civil Penalty Fund) into which the 
Bureau deposits civil penalties it collects in judicial and 
administrative actions under Federal consumer financial laws. 

Under the Act, funds in the Civil Penalty Fund may be used for 
payments to the victims of activities for which civil penalties have 
been imposed under the Federal consumer financial laws. To the extent 
that such victims cannot be located or such payments are otherwise not 
practicable, the Bureau may use funds in the Civil Penalty Fund for 
the purpose of consumer education and financial literacy programs. 

On May 7, 2013, the Bureau published the Civil Penalty Fund rule, 12 
C.F.R. part 1075, a final rule governing the Bureau's use of the funds 
in the Civil Penalty Fund. That rule requires the Bureau to issue 
regular reports on the Civil Penalty Fund. Included in this Annual 
Report within the accompanying tables provided below are a list of all 
civil penalty collections from October 1, 2012 through September 30, 
2014, the schedule for Civil Penalty Fund allocations, a description 
of Civil Penalty Fund allocations in FY 2013 and FY 2014 and the basis 
for those allocations, and an overview of the distribution of those 
funds. 

Additional background information on the Civil Penalty Fund can be 
found at: [hyperlink, http://www.consumerfinance.gov/budget/civil-
penalty-fund/]. 

As of September 30, 2014 the Civil Penalty Fund has $112.8 million of 
funds available for future allocation to harmed consumers and/or 
financial education. Table 14 below summarizes significant activity of 
the fund since inception through September 30, 2014: 

Table 14: Civil Penalty Fund Significant Activity: 

Activity: Cash Collections: FY 2012; 
Amount: $32,000,000. 

Activity: Cash Collections: FY 2013; 
Amount: $49,520,001. 

Activity: Cash Collections: FY 2014; 
Amount: $77,502,001. 

Activity: Total Cash Collections; 
Amount: $159,022,002. 

Less Allocations: 

Activity: Victim Compensation: FY 2013; 
Amount: $10,488,815. 

Activity: Victim Compensation: FY 2014; 
Amount: $20,803,560; 
Amount: $31,292,375. 

Activity: Consumer Education and Financial Literacy Programs: FY 2013; 
Amount: $13,380,000. 

Activity: Consumer Education and Financial Literacy Programs: FY 2014 
Amount: $0; 
Amount: $13,380,000. 

Activity: Total Allocations; 
Amount: $44,672,375. 

Less Administrative Set-aside: 

Activity: FY 2013; 
Amount: $1,573,322. 

Activity: Total Available for Future Allocations: 
Amount: $112,776,305. 

[End of table] 

Civil Penalty Fund Collections: 

Table 15: Fiscal Year 2013 Collections: 

Defendant name: American Express Centurion Bank; 
Civil penalty collected: $3,900,000; 
Collection date: October 1,2012. 

Defendant name: American Express, FSB; 
Civil penalty collected: $1,200,000; 
Collection date: October 1,2012. 

Defendant name: American Express Travel; 
Civil penalty collected: $9,000,000; 
Collection date: October 1, 2012. 

Defendant name: Payday Loan Debt Solution, Inc. 
Civil penalty collected: $5,000; 
Collection date: December 28, 2012. 

Defendant name: Abraham M. Pessar (Gordon, et. al); 
Civil penalty collected: $1; 
Collection date: February 26, 2013. 

Defendant name: Guaranty Corporation; 
Civil penalty collected: $4,500,000; 
Collection date: April 11, 2013. 

Defendant name: Genworth Mortgage Ins. Corp. 
Civil penalty collected: $4,500,000; 
Collection date: April 15, 2013. 

Defendant name: Mortgage Guaranty Ins. Corp (MGIC); 
Civil penalty collected: $2,650,000; 
Collection date: April 16, 2013. 

Defendant name: Radian Guaranty Inc. 
Civil penalty collected: $3,750,000; 
Collection date: April 29, 2013. 

Defendant name: American Debt Settlement Solutions, Inc. 
Civil penalty collected: $15,000; 
Collection date: June 12, 2013. 

Defendant name: JPMorgan Chase; 
Civil penalty collected: $20,000,000; 
Collection date: September 19, 2013. 

Total 
Civil penalty collected: $49,520,001. 

In fiscal year 2013, the Bureau collected civil penalties from eleven 
defendants totaling $49.5 million[A]. 

[A] In FY13 a civil money penalty for $1.1 million was imposed in the 
National Legal Help Center case. The civil penalty in this case is not 
reasonably expected to be received and has not resulted in accounts 
receivable. 

[End of table] 

Table 16: Fiscal Year 2014 Collections: 

Defendant name: Washington Federal; 
Civil Penalty Collected: $34,000; 
Collection date: October 11, 2013. 

Defendant name: Mortgage Master, Inc. 
Civil Penalty Collected: $425,000; 
Collection date: October 15, 2013. 

Defendant name: Castle & Cooke Mortgage, LLC; 
Civil Penalty Collected: $4,000,000; 
Collection date: November 13, 2013. 

Defendant name: Cash America International, Inc. 
Civil Penalty Collected: $5,000,000; 
Collection date: November 25, 2013. 

Defendant name: Meracord, LLC. 
Civil Penalty Collected: $1,376,000[A]; 
Collection date: November 26, 2013; July 16, 2014. 

Defendant name: Republic Mortgage Insurance Company; 
Civil Penalty Collected: $100,000; 
Collection date: December 5, 2013. 

Defendant name: American Express Bank, FSB; 
Civil Penalty Collected: $2,000,000; 
Collection date: December 23, 2013. 

Defendant name: American Express Centurion Bank; 
Civil Penalty Collected: $3,600,000; 
Collection date: December 23, 2013. 

Defendant name: American Express Travel Related Services; 
Civil Penalty Collected: $4,000,000; 
Collection date: December 23, 2013. 

Defendant name: Ally; 
Civil Penalty Collected: $18,000,000; 
Collection date: December 30, 2013. 

Defendant name: Fidelity Mortgage Corporation; 
Civil Penalty Collected: $54,000; 
Collection date: January 21, 2014. 

Defendant name: 1st Alliance Lending, LLC; 
Civil Penalty Collected: $83,000; 
Collection date: March 5, 2014. 

Defendant name: Bank of America; 
Civil Penalty Collected: $20,000,000; 
Collection date: April 17, 2014. 

Defendant name: RealtySouth; 
Civil Penalty Collected: $500,000; 
Collection date: June 4, 2014. 

Defendant name: Synchrony (GE Capital Retail Bank); 
Civil Penalty Collected: $3,500,000; 
Collection date: June 20, 2014. 

Defendant name: Stonebridge Title Services, Inc. 
Civil Penalty Collected: $30,000; 
Collection date: June 24, 2014. 

Defendant name: Ace Cash Express, Inc. 
Civil Penalty Collected: $5,000,000; 
Collection date: July 18, 2014. 

Defendant name: Colfax (Culver Capital, LLC); 
Civil Penalty Collected: $1; 
Collection date: August 5, 2014. 

Defendant name: USA Discounters, Ltd. 
Civil Penalty Collected: $50,000; 
Collection date: August 19, 2014. 

Defendant name: Amerisave Mortgage Corporation; 
Civil Penalty Collected: $6,000,000; 
Collection date: August 22, 2014. 

Defendant name: First Investors Financial Services Group, Inc. 
Civil Penalty Collected: $2,750,000; 
Collection date: August 29, 2014. 

Defendant name: Global Client Solutions; 
Civil Penalty Collected: $1,000,000; 
Collection date: September 5, 2014. 

Total: 
$77,502,001. 

In fiscal year 2014, the Bureau collected civil penalties from 22 
defendants totaling $77.5 million.[B] 

[A] Meracord LLC paid $1.4 million in civil penalties in two 
installments, $600,000 on November 26, 2013 and $800,000 on July 16, 
2014. 

[B] Three additional civil penalty fund cases resulted in accounts 
receivable in Fiscal Year 2014, to be collected in early Fiscal Year 
2015. These accounts receivable total $15.2 million. In particular, 
the Bureau expects civil penalty collections of $5 million from U.S. 
Bank, $200,000 from Lighthouse Title, and $10 million from Flagstar 
Bank, F.S.B. A civil penalty of $1 was imposed in the 3D-Resorts-
Bluegrass, LLC case. The civil penalty in this case is not reasonably 
expected to be received and has not resulted in accounts receivable. 

[End of table] 

Allocations from the Civil Penalty Fund: 

Under the Civil Penalty Fund rule, the Civil Penalty Fund 
Administrator allocates funds in the Civil Penalty Fund to classes of 
victims of violations of Federal consumer financial laws and, to the 
extent that such victims cannot be located or such payments are 
otherwise not practicable, to consumer education and financial 
literacy programs according to a schedule published by the Fund 
Administrator. That schedule established six-month periods and 
provides that an allocation will be made within 60 days of the end of 
each period. The Fund Administrator may allocate only those funds that 
were available as of the end of the six-month period and may allocate 
funds to a class of victims only if that class had uncompensated harm 
as of the end of the six-month period. 

Table 17: Schedule For Allocations, Periods 1, 2, 3, And 4: 

Period: 1; 
Start: July 21, 2011; 
End: March 31, 2013; 
Allocation Deadline: May 30, 2013. 

Period: 2; 
Start: April 1, 2013; 
End: September 30, 2013; 
Allocation Deadline: November 29, 2013. 

Period: 3; 
Start: October 1, 2013; 
End: March 31, 2014; 
Allocation Deadline: May 30, 2014. 

Period: 4; 
Start: April 1, 2014; 
End: September 30, 2014; 
Allocation Deadline: November 29, 2014. 

[End of table] 

The table displays the dates by which funds will be allocated 
following the first four six-month periods. Allocations must occur 
within 60 days after the end of each six-month period. Therefore, 
under the current schedule, subsequent allocations will also occur 
between April 1 and May 30 and between October 1 and November 29 of 
each year. 

Allocations in FY 2013: 

Period 1: July 21, 2011 – March 31, 2013 

The Bureau made its first allocation from the Civil Penalty Fund on 
May 30, 2013. As of March 31, 2013, $46.1 million was in the Civil 
Penalty Fund. Of that, $1.6 million was set aside for any 
administrative costs and $44.5 million was available for allocation 
under 12 C.F.R. § 1075.105(c). 

Table 18: Period 1: Cases In Which A Civil Penalty Was Imposed: 

Defendant Name: Capital One Bank; 
Date of Final Order[A]: July 18, 2012. 

Defendant Name: Discover; 
Date of Final Order[A]: September 24, 2012. 

Defendant Name: American Express Centurion Bank; 
Date of Final Order[A]: October 1, 2012. 

Defendant Name: American Express Bank, FSB; 
Date of Final Order[A]: October 1, 2012. 

Defendant Name: American Express Travel; 
Date of Final Order[A]: October 1, 2012. 

Defendant Name: Payday Loan Debt Solutions, Inc. 
Date of Final Order[A]: December 21, 2012. 

Defendant Name: Abraham M. Pessar (Gordon, et. al); 
Date of Final Order[A]: February 1, 2013. 

[A] Under Section 1075.101 of the Civil Penalty Fund rule, for 
purposes of Civil Penalty Fund allocations, a “Final Order” is a 
consent order or settlement issued by a court or by the Bureau, or an 
appealable order issued by a court or by the Bureau as to which the 
time for filing an appeal has expired and no appeals are pending. 
Appeals include petitions for reconsideration, review, rehearing, and 
certiorari. For reporting purposes, “date of final order” for all 
consent orders is defined as the date the order was entered on the 
docket. The chart has been updated for all periods to reflect this 
definition. In our prior financial report, the “date of final order” 
in some instances reflected the date the final order was signed rather 
than the docket-entry date. No changes in allocation periods or fiscal 
year quarters have occurred as a result of this reporting update. For 
appealable orders, the “date of final order” is the date the order 
became final under federal law. 

[End of table] 

During Period 1, final orders in Bureau enforcement actions imposed 
civil penalties in seven cases. The table above lists the date of the 
final order in each of those cases. Under the Civil Penalty Fund rule, 
the victims of the violations for which the civil penalties were 
imposed in these cases are eligible to receive payment from the Civil 
Penalty Fund to compensate their uncompensated harm. 

Of those cases, two cases—Payday Loan Debt Solution, Inc. (PLDS), and 
Gordon, et al.—had classes of victims with uncompensated harm that is 
compensable from the Civil Penalty Fund.[A] 

[A] Under the Civil Penalty Fund rule victims' compensable harm is 
determined by looking to the terms of the relevant court or 
administrative order. If the amount of a victim's compensable harm 
cannot be determined based on the terms of the relevant order, the 
victim's compensable harm generally will be his or her out-of-pocket 
losses that resulted from the violation. To determine the amount of a 
victim's uncompensated harm, the Bureau will take the victim's total 
compensable harm and subtract out any compensation that the victim has 
received--or is reasonably expected to receive-—for that harm. See 12 
C.F.R. § 1075.104. 

In particular, the PLDS victims had $488,815 in uncompensated harm, 
and the Gordon victims had $10 million in uncompensated harm. The 
victims in the other five cases had no uncompensated harm that was 
compensable from the Civil Penalty Fund. 

The Bureau allocated $488,815 to the PLDS class of victims and $10 
million to the Gordon class of victims, enough to compensate fully 
each class's uncompensated harm. After making that allocation, $34 
million remained available for allocation. Of this figure, the Bureau 
allocated $13.4 million for consumer education and financial literacy 
programs. 

Text box: 

Period 1 Allocation Summary: 

Victim Compensation: $10,488,815 

* Payday Loan Debt Solution, Inc. 
- Victim Class Allocation: $488,815. 

* Gordon, et al. 
- Victim Class Allocation: $10,000,000. 

Consumer Education and Financial Literacy Programs: $13,380,000; 

Total Allocation: $23,868,815. 

[End of text box] 

Allocations in FY 2014: 

Period 2: April 1, 2013 – September 30, 2013: 

On November 29, 2013, the Bureau made its second allocation from the 
Civil Penalty Fund. As of September 30, 2013, the Civil Penalty Fund 
contained an unallocated balance of $56.1 million. This amount was 
available for allocation pursuant to 12 C.F.R. § 1075.105(c). 

Table 19: Period 2: Cases In Which A Civil Penalty Was Imposed: 

Defendant Name: United Guaranty Corporation; 
Date of Final Order: April 8, 2013. 

Defendant Name: Genworth Mortgage Ins. Corp. 
Date of Final Order: April 5, 2013. 

Defendant Name: Mortgage Guaranty Ins. Corp. (MGIC); 
Date of Final Order: April 5, 2013. 

Defendant Name: Radian Guaranty Inc. 
Date of Final Order: April 9, 2013. 

Defendant Name: American Debt Settlement Solutions, Inc. 
Date of Final Order: June 7, 2013. 

Defendant Name: JPMorgan Chase; 
Date of Final Order: September 19, 2013. 

Defendant Name: National Legal Help Center[A]; 
Date of Final Order: September 23, 2013. 

[A] In the National Legal Help Center case, the defendants were 
ordered to pay $1.1 million in civil monetary penalties. At the time 
of this report, the Bureau does not reasonably expect to receive these 
penalties. 

[End of table] 


During Period 2, final orders in Bureau enforcement actions imposed 
civil penalties in seven cases. The table above lists the date that 
the order in each of those cases became a “final order” within the 
meaning of the Civil Penalty Fund rule. Under the Civil Penalty Fund 
rule, the victims of the violations for which the civil penalties were 
imposed in these cases are eligible to receive payment from the Civil 
Penalty Fund to compensate their uncompensated harm. 

Of those seven cases, the Civil Penalty Fund Administrator determined 
that one case did not have a class of victims with uncompensated harm 
that is compensable from the Civil Penalty Fund, and that two cases 
included classes of victims with uncompensated harm that is 
compensable from the Civil Penalty Fund. As of the time of the 
allocation, the Fund Administrator did not yet have sufficient 
information to determine whether classes of victims in the remaining 
four cases had “compensable harm” or “uncompensated harm” as defined 
by the Civil Penalty Fund rule. The two cases with classes of victims 
with uncompensated harm that is compensable from the Civil Penalty 
Fund were American Debt Settlement Solutions, Inc. (ADSS) and National 
Legal Help Center (NLHC). Specifically, the ADSS victims had $499,248 
in uncompensated harm and the NLHC victims had $2.1 million in 
uncompensated harm. 

Text box: 

Period 2 Allocation Summary: 

Victim Compensation: $2,557,231 

* American Debt Settlement Solutions, Inc. 
- Victim Classes Allocation: $499,248; 

* National Legal Help Center: 
- Victim Class Allocation: $2,057,983. 

Consumer Education and Financial Literacy Programs: $0. 

Total Allocation: $2,557,231. 

[End of text box] 

The Bureau allocated $499,248 to two classes of victims in ADSS and 
$2.1 million to the NLHC class of victims, enough to compensate fully 
those victim classes' uncompensated harm. No funds were allocated to 
consumer education and financial literacy programs. The remaining 
unallocated Civil Penalty Fund balance remained available for future 
allocations. 

Period 3: October 1, 2013-March 31, 2014: 

On May 30, 2014, the Bureau made its third allocation from the Civil 
Penalty Fund. As of March 31, 2014, the Civil Penalty Fund contained 
an unallocated balance of $91.4 million. This amount was available for 
allocation pursuant to 12 C.F.R. § 1075.105(c). 

Table 20: Period 3: Cases In Which A Civil Penalty Was Imposed: 

Defendant Name: Meracord, LLC; 
Date of Final Order: October 4, 2013. 

Defendant Name: Washington Federal; 
Date of Final Order: October 9, 2013. 

Defendant Name: Mortgage Master, Inc. 
Date of Final Order: October 9, 2013. 

Defendant Name: Castle & Cooke Mortgage, LLC; 
Date of Final Order: November 12, 2013. 

Defendant Name: Republic Mortgage Insurance Company; 
Date of Final Order: November 19, 2013. 

Defendant Name: Cash America International, Inc. 
Date of Final Order: November 21, 2013. 

Defendant Name: 3D Resorts-Bluegrass, LLC; 
Date of Final Order: December 3, 2013. 

Defendant Name: Ally; 
Date of Final Order: December 20, 2013. 

Defendant Name: American Express Bank, FSB; 
Date of Final Order: December 24, 2013. 

Defendant Name: American Express Centurion Bank; 
Date of Final Order: December 24, 2013. 

Defendant Name: American Express Travel Related Services; 
Date of Final Order: December 24, 2013. 

Defendant Name: Fidelity Mortgage Corporation; 
Date of Final Order: January 16, 2014. 

Defendant Name: 1st Alliance Lending, LLC; 
Date of Final Order: February 24, 2014. 

[End of table] 

During Period 3, final orders in Bureau enforcement actions imposed 
civil penalties in 13 cases. Under the Civil Penalty Fund rule, the 
victims of the violations for which the civil penalties were imposed 
in these cases are eligible to receive payment from the Civil Penalty 
Fund to compensate their uncompensated harm. 

Of those cases, the Civil Penalty Fund Administrator determined that 
two cases did not have eligible classes of victims, and seven cases 
had classes of eligible victims with no uncompensated harm that is 
compensable from the Civil Penalty Fund. Additionally, as of the time 
of the Period 3 allocation, the Fund Administrator did not have 
sufficient information to determine whether classes of victims in one 
Period 3 case, along with four cases from Period 2, had “compensable 
harm” or “uncompensated harm” as defined in the Civil Penalty Fund 
rule. 

Of the three cases that had classes of eligible victims with 
uncompensated harm, the classes of eligible victims with uncompensated 
harm in one case are expected to receive full compensation pursuant to 
an order issued by another federal regulator. The two remaining cases 
with classes of victims with uncompensated harm that is compensable 
from the Civil Penalty Fund were Meracord and 3D Resorts-Bluegrass. 
Specifically, the Meracord victims had $11.5 million in estimated 
uncompensated harm, and the 3D Resorts-Bluegrass victims had $6.7 
million in estimated uncompensated harm. 

The Bureau allocated $11.5 million to the Meracord victim class and 
$6.7 million to the 3D Resorts-Bluegrass victim class, enough to 
compensate fully those victim classes' uncompensated harm. No funds 
were allocated to consumer education and financial literacy programs. 
The remaining unallocated Civil Penalty Fund balance remains available 
for future allocation. 

Text box: 

Period 3 Allocation Summary: 

Victim Compensation: $18,246,329. 

* Meracord: 
- Victim Class Allocation: $11,542,229. 

* 3D Resorts-Bluegrass; 
- Victim Class Allocation: $6,704,100. 

Consumer Education and Financial Literacy Programs: $0. 

Total Allocation: $18,246,329. 

[End of text box] 

FY 2014 cases eligible for allocation in FY 2015: 

Period 4: March 31, 2014-September 30, 2014: 

On or before November 29, 2014, the Bureau will make its fourth 
allocation from the Civil Penalty Fund. As of September 30, 2014, the 
Civil Penalty Fund had an unallocated balance of $112.8 million. This 
amount will be available for allocation pursuant to 12 C.F.R. § 
1075.105(c). 

Table 21: Period 4: Cases In Which A Civil Penalty Was Imposed: 

Defendant Name: Bank of America; 
Date of Final Order: April 9, 2014. 

Defendant Name: RealtySouth; 
Date of Final Order: May 28, 2014. 

Defendant Name: Stonebridge Title Services, Inc. 
Date of Final Order: June 12, 2014. 

Defendant Name: Synchrony (GE Capital Retail Bank); 
Date of Final Order: June 19, 2014. 

Defendant Name: Ace Cash Express, Inc. 
Date of Final Order: July 10, 2014. 

Defendant Name: Colfax (Culver Capital, LLC); 
Date of Final Order: July 29, 2014. 

Defendant Name: Amerisave Mortgage Corporation; 
Date of Final Order: August 12, 2014. 

Defendant Name: USA Discounters, Ltd. 
Date of Final Order: August 14, 2014. 

Defendant Name: First Investors Financial Services Group, Inc. 
Date of Final Order: August 20, 2014. 

Defendant Name: Global Client Solutions; 
Date of Final Order: August 27, 2014. 

Defendant Name: U.S. Bank; 
Date of Final Order: September 25, 2014. 

Defendant Name: Flagstar Bank, F.S.B. 
Date of Final Order: September 29, 2014. 

Defendant Name: Lighthouse Title; 
Date of Final Order: September 30, 2014. 

[End of table] 

Civil Penalty Fund Distributions: 

Civil penalty fund distributions have begun for two Civil Penalty Fund 
allocations made in Period 1 and Period 2. These distribution figures 
reflect the amounts that have been mailed to harmed consumers; these 
distributions are still active and checks continue to be deposited by 
consumers. In the Payday Loan Debt Solution, Inc. case, $458,526 has 
been distributed to harmed consumers. In the American Debt Settlements 
Solutions, Inc. case $499,246 has been distributed to harmed 
consumers. Distributions are expected to begin in fiscal year 2015 for 
the Gordon, et al., National Legal Help Center, Meracord, and 3D 
Resorts-Bluegrass LLC cases. 

Table 22: Civil Penalty Fund Distributions: 

Defendant: Payday Loan Debt Solution, Inc. 
Period: 1; 
Distribution Amount: $458,526. 

Defendant: American Debt Settlement Solutions, Inc. 
Period: 2; 
Distribution Amount: $499,246. 

[End of table] 

Bureau-Administered Redress: 

Dodd-Frank Act Section 1055 authorizes a court in a judicial action, 
or the CFPB in an administrative proceeding, to grant any appropriate 
legal or equitable relief for a violation of Federal consumer 
financial law. Such relief may include redress for victims of the 
violations, including refunds, restitution, and damages. Relief that 
is intended to compensate victims is treated as fiduciary funds and 
deposited into the “Legal or Equitable Relief Fund” established at the 
Department of the Treasury. CFPB refers to these collections as Bureau-
Administered Redress. 

Bureau-Administered Redress Collections: 

Table 23: Collections In FY 2013: 

Defendant: Payday Loan Debt Solution, Inc. 
Amount Collected: $100,000; 
Date of Collection: December 28, 2012. 

Defendant: Gordon, et al; 
Amount Collected: $22,804; 
Date of Collection: August 9, 2013. 

In Fiscal Year 2013, the Bureau collected $122,804 in Bureau-
Administered Redress funds from two defendants. Funds for each case 
will be used to compensate victims in accordance with the terms of the 
final order for that case.[A] 

[A] For example, in the Payday Loan Debt Solution Inc. case the final 
order provides that the Bureau-Administered Redress funds should be 
used to pay restitution to victims and to cover attendant 
administrative expenses. 

[End of table] 

Table 24: Collections In FY 2014: 

Defendant: Castle and Cooke; 
Amount Collected: $9,228,896; 
Date of Collection: November 13, 2013. 

Defendant: 3D Resorts-Bluegrass; 
Amount Collected: $50,000; 
Date of Collection: December 6, 2013. 

Defendant: Amerisave; 
Amount Collected: $14,892,234; 
Date of Collection: August 15, 2014. 

Defendant: Global Client Solutions; 
Amount Collected: $4,000,000; 
Date of Collection: September 5, 2014. 

In Fiscal Year 2014, the Bureau collected $28.2 million in Bureau-
Administered Redress funds from four defendants.[A] In these cases, 
funds will be distributed in accordance with terms of the final order 
for each case.[B] 

[A] Two Bureau-Administered Redress cases resulted in accounts 
receivable in Fiscal Year 2014, to be collected in Fiscal Year 2015 
totaling $29.6 million. In particular, the Bureau expects to collect 
redress of $2.1 million from Global Client Solutions and $27.5 million 
from Flagstar Bank, F.S.B. 

[B] In the Castle and Cooke, Amerisave, and Global Client Solution 
cases, the respective final orders provide that the Bureau-
Administered Redress funds should be used to pay redress to victims 
and to cover attendant administrative expenses. 

[End of table] 

Bureau-Administered Redress Distributions: 

Table 25: Bureau-Administered Redress Disbursements: 

Defendant: Payday Loan Debt Solution, Inc. 
Quarter of Distribution: FY14 Q1; 
Amount Distributed: $76,442' 

Defendant: Castle and Cooke Mortgage, LLC. 
Quarter of Distribution: FY14 Q3; 
Amount Distributed: $9,175,596. 

In the first quarter of FY2014, Bureau-Administered Redress funds from 
the Payday Loan Debt Solution, Inc. case were distributed to eligible 
victims in accordance with the terms of the final order.[A] In the 
third quarter of FY 2014, Bureau-Administered Redress funds from the 
Castle and Cooke Mortgage, LLC case were distributed to eligible 
victims in accordance with the terms of the final order. In FY 2014, 
using Bureau-Administered Redress funds the Bureau distributed a total 
of $9.3 million to harmed consumers. 

[A] The final order in the Payday Loan Debt Solution, Inc. case 
included two classes of victims. One class was compensated in 
accordance with the final order using Bureau-Administered Redress 
funds. The other class was compensated with an allocation and 
subsequent disbursement from the Civil Penalty Fund. 

1.4 Management assurances and audit results: 

CFPB Statement of Management Assurance: 

Fiscal Year 2014, November 10, 2014: 

The management of the Consumer Financial Protection Bureau (CFPB) is 
responsible for establishing and maintaining effective internal 
control and financial management systems that meet the objectives of 
the Federal Managers' Financial Integrity Act of 1982 (FMFIA). 
Continuous monitoring and periodic evaluations provide the basis for 
the annual assessment and report on management's controls, as required 
by FMFIA. The FMFIA methodologies assist in assessing the applicable 
entity-wide controls, documenting the applicable processes, and 
identifying and testing the key controls. Based on the results of 
these ongoing evaluations, the CFPB is able to provide a qualified 
statement of assurance that the internal control over the 
effectiveness and efficiency of operations and compliance with 
applicable laws and regulations meet the objectives of FMFIA, with the 
exception of a material weakness identified as of September 30, 2014. 
We will continue to take appropriate steps to implement timely 
corrective actions. 

As required by the Dodd-Frank Act, the CFPB is to provide a management 
assertion as to the effectiveness of the CFPB's internal control over 
financial reporting. The CFPB management is responsible for 
establishing and maintaining effective internal control over financial 
reporting. The CFPB conducted its assessment of the effectiveness of 
internal control over financial reporting based on the criteria 
established under 31 U.S.C. Sec. 3512(c) and applicable sections of 
OMB Circular A-123. Based on the results of this evaluation, a 
material weakness was identified in its internal control over 
financial reporting as of September 30, 2014. Other than the exception 
noted, the internal controls were operating effectively and no other 
material weaknesses were found in the design or operation of the 
internal control over financial reporting. 

Under the Dodd-Frank Act, the CFPB is required to maintain financial 
management systems that comply substantially with Federal financial 
management systems requirements and applicable Federal accounting 
standards. The CFPB utilizes financial management systems that 
substantially comply with the requirements for Federal financial 
management systems and applicable Federal accounting standards. 

Signed by: 

Richard Cordray: 
Director of the Consumer Financial Protection Bureau: 

[End of section] 

Federal Managers' Financial Integrity Act: 

The CFPB was established as an independent bureau in the Federal 
Reserve System under the Dodd-Frank Act Section 1011 (a). As an 
independent, non-appropriated bureau, CFPB recognizes the importance 
of Federal laws associated with implementing effective risk 
management, including the Federal Managers' Financial Integrity Act. 
This includes ensuring that CFPB operations and programs are effective 
and efficient and that internal controls are sufficient to minimize 
exposure to waste and mismanagement. 

In fiscal year 2014, CFPB performed an evaluation of its risks and 
systems of internal controls. Based on the results of those 
evaluations, the CFPB is able to provide a qualified statement of 
assurance that the internal control over the effectiveness and 
efficiency of operations, and compliance with applicable laws and 
regulations meet the objectives of FMFIA, with the exception of one 
(1) material weakness and one (1) significant deficiency that were 
identified as of September 30, 2014, listed below. The CFPB is 
committed to continuously enhancing and improving its systems of 
internal control and realizing more effective and efficient ways to 
accomplish its mission; as well as taking appropriate steps to 
implement timely corrective actions. 

Accounts Payable Accrual Process (Material Weakness): 

A material weakness has been identified in the accounts payable 
accrual process. Although policies and procedures are in place around 
the accrual process, a number of errors continue to exist relating to 
the calculation of the accrual amounts for expenses and property and 
equipment and the OCFO review process over those accrual amounts. In 
fiscal year 2013, a significant deficiency was identified in the 
accounts payable accrual process. During fiscal year 2014, the OCFO 
implemented corrective actions to mitigate the risks of this 
deficiency: provided additional outreach and guidance to Contracting 
Officer Representatives (COR) and invoice approvers, implemented a 
sampling methodology to review the accrual amounts, and began 
developing a resource and desk guide for the CORs and invoice 
approvers. The corrective actions implemented did not mitigate the 
risks appropriately and the errors in the accounts payable accrual 
amounts resulted in the identification of a material weakness. During 
fiscal year 2015, the Bureau will implement steps to remediate these 
issues working with CORs, invoice approvers, and the Bureau's 
accountable officials. Such corrective actions will include the 
completion and dissemination of the resource and desk guide for the 
CORs and invoice approvers, more collaboration between the OCFO and 
the CORs and invoice approvers when calculating the accrual amounts, 
more oversight by the OCFO over the budget execution of contracts and 
interagency agreements which impact the associated accrual amounts, 
and a more comprehensive OCFO review process over the accrual amounts. 
Although it is our understanding that this material weakness does not 
indicate that the Bureau overspent its funds in FY 2014 (in fact it 
appears to have underspent them), the Bureau is committed to 
correcting the imprecision in the accrual estimation process to ensure 
the proper accounting and reporting of the Bureau's expenses. 

Accounting for Property and Equipment (Significant Deficiency): 

A significant deficiency continues to be identified over the 
accounting for property and equipment. Although policies and 
procedures around the accounting for property and equipment are in 
place, a number of errors continue to exist relating to the proper 
capitalization or expensing of costs associated with the purchase of 
furniture and equipment or development of internal use software. In 
fiscal year 2013, a significant deficiency was identified in the 
accounting for property and equipment. During fiscal year 2014, the 
OCFO implemented corrective actions to mitigate the risks of this 
deficiency: provided additional outreach and guidance to CORs and 
invoice approvers and implemented a review process over contracts and 
interagency agreements for the purchase or development of items that 
may be capitalized. The corrective actions implemented did not fully 
mitigate the risks and therefore this significant deficiency is still 
identified in fiscal year 2014. During fiscal year 2015, the Bureau 
will increase its collaboration between the OCFO, applicable CORs and 
invoice approvers, and the Office of Procurement; continue its review 
over contracts and interagency agreements; and implement a process to 
more systematically gather and disseminate information on fixed asset 
acquisitions to ensure capitalized costs are accurately captured and 
recorded. 

Additionally, the CFPB identified several enhancement areas to focus 
on and during fiscal year 2015 will continue to make progress toward: 
implementing a more comprehensive asset management process; 
implementing an enterprise risk management program; developing, 
reviewing, and revising policies and procedures as appropriate; fully 
implementing and enhancing the guidelines and processes around 
accruals and asset capitalization; developing a new performance 
management system and additional steps to promote fairness and 
inclusion in the workplace; carefully managing the headquarters 
renovation; providing leadership and management training, enhancing 
staff training and development programs and working towards the goal 
of being fully staffed; and enhancing the Bureau's Information 
Security Program. 

Federal financial management systems requirements: 

Section 1017(a)(4)(C) of the Dodd-Frank Act requires the CFPB to 
implement and maintain financial management systems that substantially 
comply with Federal financial management systems requirements and 
applicable Federal accounting standards. The CFPB performs or is 
subject to a number of other assessments in order to further support 
compliance with the requirement set forth within the Dodd Frank Act 
requiring the CFPB to implement and maintain Financial Management 
Systems that comply substantially with the Federal Financial 
Management Systems requirements and applicable accounting standards. 
These assessments also assist in documenting compliance with the 
Federal Financial Management System requirements. Assessments include 
but are not limited to: 

* Internal Control over Financial Reporting (ICOFR); 

* Federal Information Security Management Act (FISMA); 

* Improper Payments; 

* Annual Financial Statement Audit; 

* Federal Manager's Financial Integrity Act Reporting of 1982 (FMFIA); 

* Federal Financial Management Improvement Act of 1996 (FFMIA). 

Based on the results of these internal control assessments, the CFPB 
provided reasonable assurance that as of September 30, 2014: 

* The CFPB financial management systems substantially comply with the 
requirements for Federal financial management systems and applicable 
Federal accounting standards. 

Additionally, as discussed in the section on Financial Management 
System Strategy below, the CFPB has entered into an agreement with the 
Bureau of Fiscal Services, Administrative Resource Center (BFS/ARC) 
for the cross-servicing of the CFPB's core financial management system 
needs. As such, BFS/ARC has provided assurances to the CFPB that 
BFS/ARC's system is in compliance with the Federal Financial 
Management Improvement Act (FFMIA) whereby the system is substantially 
compliant with: 

* Federal financial management system requirements, 

* Applicable federal accounting standards, and, 

* The United States Standard General Ledger at the transaction level. 

BFS/ARC has reported that its system substantially complies with these 
three requirements of FFMIA and recently completed a Statement on 
Standards for Attestation Engagement (SSAE) No. 16, Reporting on 
Controls at a Service Organization. The independent auditors opined in 
the SSAE-16 report that BFS/ARC's controls were suitably designed to 
provide reasonable assurance that control objectives would be achieved 
if customer agencies applied the complementary customer agency 
controls. 

The CFPB evaluated its internal controls over the processing of 
transactions between the CFPB and BFS/ARC. The CFPB has determined it 
has adequate complementary customer controls in place. 

Financial statement audit and report on internal control over 
financial reporting: 

Sections 1017(a)(4)(B) and (D) of the Dodd-Frank Act require the CFPB 
to prepare and submit to GAO annual financial statements and an 
assertion of the effectiveness of the internal control over financial 
reporting. Section 1017(a)(5)(A) and (B) of the Dodd-Frank Act also 
require GAO to audit those financial statements and report their 
results to the Bureau, Congress and the President. The CFPB prepared 
comparative financial statements for fiscal years 2013 and 2014. 

GAO issued an unmodified or “clean” audit opinion on the CFPB's fiscal 
years 2013 and 2014 financial statements. GAO opined that due to a 
material weakness in internal control over the reporting of accounts 
payable, the CFPB did not maintain, in all material respects, 
effective internal control over financial reporting as of September 
30, 2014. However, GAO reported that its tests for compliance with 
selected provisions of applicable laws, regulations, contracts, and 
grant agreements disclosed no instances of noncompliance for fiscal 
year 2014 that would be reported under U.S. generally accepted 
government auditing standards. 

Financial management systems strategy: 

The CFPB recognized during its initial years of operation that it 
needed to leverage from other federal agencies existing financial 
management resources, systems and information technology platforms. 
Initially, all of the CFPB's financial management transactions were 
processed through the Department of the Treasury's Departmental 
Offices. The Bureau also relied on Treasury for much of its 
information technology infrastructure. The CFPB has maintained an 
agreement with the BFS for the cross-servicing of a commercial off-the-
shelf core financial management system designed and configured to meet 
generally accepted accounting principles for Federal entities. In 
addition to the core financial management system, BFS provides 
services that include transactional processing, financial reporting, 
human resource services, procurement services, and travel services. 
The CFPB's goal is to continue providing an effective strategy that 
supports our financial management systems. 

The CFPB recognizes the importance of financial management systems and 
oversight as a part of the capital planning and investment control 
process. Accordingly, the CFPB relies on its Investment Review Board 
(IRB) as the executive advisory body responsible for ensuring that all 
business and technology investments are aligned to the CFPB's mission, 
vision, strategic goals and initiatives, and utilize program 
management best practices to achieve the maximum return on 
investments. The IRB is chaired by the Chief Financial Officer (CFO). 
Investments over $0.5 million are reviewed by the IRB, unless waived 
by the Chair in consultation with IRB members. The Chair may require 
IRB review of investments less than $0.5 million if the investment is 
deemed significant. 

Federal Information Security Management Act: 

The Federal Information Security Management Act (FISMA) requires 
Federal agencies to develop, document, and implement an agency-wide 
program to provide security for the information and information 
systems that support the operations and assets of the agency. The CFPB 
has developed a Cyber Security Program in accordance with FISMA that 
is grounded in a foundation of well-documented policies, standards and 
processes. The Bureau relies on the soundness of this program to 
conduct reviews of its third-party service organizations including 
other federal entities with whom we have cross servicing agreements 
that enable us to leverage their existing information technology and 
platforms. As the CFPB continues to mature and grow, the security 
program will adjust as well to ensure the safety and protection of the 
Bureau's data and assets. 

Improper payments: 

The Improper Payments Elimination and Recovery Act of 2011 (IPERA) 
requires agencies to review their programs and activities annually to 
identify those susceptible to significant improper payments. While the 
CFPB's Bureau Fund is not subject to the Act, in the interest of being 
consistent with government best practices, the Office of the Chief 
Financial Officer conducted such a review of five areas of payments 
during fiscal year 2014 – Purchase Card, Contract Payments and/or 
Invoices, Travel Card, Claims and/or Vouchers and Payroll. The CFPB's 
risk assessment process did not identify any programs susceptible to 
significant improper payments. 

The Civil Penalty Fund is subject to the Act. In fiscal year 2013, the 
CFPB made no disbursements from the Civil Penalty Fund. In fiscal year 
2014, disbursements did not meet the reporting threshold for the Act. 

Limitations of the Financial Statements: 

The principal financial statements contained in this report have been 
prepared to present the financial position and results of operations 
of the CFPB pursuant to the requirements of the Dodd-Frank Act Section 
1017(a)(4)(B). While the statements have been prepared from the books 
and records of the Consumer Financial Protection Bureau, in accordance 
with generally accepted accounting principles for the Federal 
government, and follow the general presentation guidance provided by 
OMB, the statements are in addition to the financial reports used to 
monitor and control budgetary resources, which are prepared using 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. 

1.5 Financial analysis: 

Analysis of FY 2014 Financial Condition and Results: 

Since its inception in 2011 the Bureau has experienced considerable 
growth in the number of its employees, in the maturity of its 
processes and activities, and in the consumption of requested 
resources to conduct its activities. This is reflected in the data 
provided in Table 26 below that reports on significant changes between 
fiscal years 2014 and 2013. 

Table 26: Summary Of Financial Information: 

Total Assets: 
Percentage Change: 41%; 
FY 2014: $687,481,254; 
FY 2013: $485,889,146. 

Total Liabilities: 
Percentage Change: 90%; 
FY 2014: $149,420,380; 
FY 2013: $78,579,861. 

Total Net Position: 
Percentage Change: 32%; 
FY 2014: $538,060,874; 
FY 2013: $407,309,285. 

Total Net Cost of Operations: 
Percentage Change: 27%; 
FY 2014: $497,553,748; 
FY 2013: $391,324,842. 

Total Budgetary Resources: 
Percentage Change: 12%; 
FY 2014: $796,718,485; 
FY 2013: $708,690,708. 

Total Obligations Incurred: 
Percentage Change: -7%; 
FY 2014: $499,812,046; 
FY 2013: $538,759,116. 

Total Outlays: 
Percentage Change: 21%; 
FY 2014: $432,475,653; 
FY 2013: $356,591,467. 

[End of table] 

Total Assets are $687.5 million as of September 30, 2014, an increase 
of $201.6 million (or 41 percent) over fiscal year 2013. The main 
factors contributing to the net increase are collections into the 
Bureau Fund ($91 million increase in Investments of the Bureau Fund) 
and the Civil Penalty Fund ($75.5 million increase in the Civil 
Penalty Fund balance). The Bureau's accounts receivable increased 
significantly in fiscal year 2014 (from $54,883 to $15.4 million) due 
to Civil Penalties imposed by the Bureau in fiscal year 2014 but not 
yet collected as of September 30, 2014. (The collections occurred in 
October 2014, after the closing date of the 2014 statements, see Note 
18). Property and equipment increased from $27.7 million to $37.5 
million (an increase of 35 percent), resulting primarily from the 
addition of assets related to software development and the leasehold 
improvement project. 

Total Liabilities are $149.4 million as of September 30, 2014, an 
increase of $70.8 million (or 90 percent) over fiscal year 2013. The 
Bureau's liabilities generally represent the resources due to others 
such as benefits owed to employees and payments owed to vendors and 
Federal agencies for goods and services provided. Liabilities also 
include victim compensation amounts allocated from the Civil Penalty 
Fund (net of distributions to date), which increased from $13 million 
in 2013 to $30.3 million in fiscal year 2014. 

Total Net Position at the end of fiscal year 2014 increased by $130.8 
million from fiscal year 2013 as a result of the Bureau's total 
financing sources exceeding the cost of operations. While both the 
financing sources and cost of operations increased in 2014 due to the 
general growth of the agency, the increase in the net position is 
primarily due to activity in the Civil Penalty Fund, where Civil 
Monetary Penalties increased from about $49.5 million imposed in 
fiscal year 2013 to over $92.7 million imposed in fiscal year 2014, an 
increase in non-exchange revenue of $43.2 million. A similar increase 
is reflected in Total Budgetary Resources. 

Total Net Cost of Operations increased in fiscal year 2014 from $391.3 
million to $497.6 million (an increase of $106.2 million or 27 
percent) due to the growth of the agency in each of its four strategic 
goals: (1) Prevent Financial Harm to Consumers While Promoting Good 
Practices That Benefit Them; (2) Empower Consumers to Live Better 
Financial Lives; (3) Inform the Public, Policy Makers, and the CFPB's 
own Policy-Making with Data-Driven Analysis of Consumer Finance 
Markets and Consumer Behavior; and, (4) Advance the CFPB's Performance 
by Maximizing Resources Productivity and Enhancing Impact. The largest 
increase in program cost in fiscal year 2014 supported the strategic 
goal of preventing financial harm to consumers while promoting good 
practices that benefit them. This goal includes the Bureau's 
rulemaking and enforcement activities for the consumer financial 
market. 

How the CFPB is funded and other sources of revenue and collections: 

Bureau fund: 

Under the Dodd-Frank Act, the CFPB is funded principally by transfers 
from the Board of Governors of the Federal Reserve System up to a 
limit set forth in the statute. The CFPB requests transfers from the 
Board of Governors in amounts that are reasonably necessary to carry 
out its mission. Funding is capped at a pre-set percentage of the 
total 2009 operating expenses of the Federal Reserve System, subject 
to an annual adjustment. Specifically, the CFPB fund transfers are 
capped as follows: 

* In fiscal year 2011, up to 10 percent of these Federal Reserve 
System expenses (or approximately $498 million), 

* In fiscal year 2012, up to 11 percent of these expenses (or 
approximately $547.8 million), 

* In fiscal year 2013, up to 12 percent of these expenses (or 
approximately $597.6 million), and, 

* In fiscal year 2014 and beyond, the cap remains at 12 percent but 
will be adjusted annually based on the percentage increase in the 
employment cost index for total compensation for State and local 
government workers published by the Federal Government. 

The Dodd-Frank Act requires the CFPB to maintain an account with the 
Federal Reserve – “Bureau of Consumer Financial Protection Fund” 
(Bureau Fund). Funds requested from the Board of Governors are 
transferred into the Bureau Fund. Bureau funds determined not to be 
needed to meet the current needs of the CFPB are invested in Treasury 
securities on the open market. Earnings from the investments are also 
deposited into this fund. During fiscal year 2014 four transfers 
totaling $534 million were received from the Board of Governors. The 
amount transferred from the Board of Governors to the CFPB was $74 
million less than the funding cap of $608 million, and $36 million 
less than the $570 million budget for fiscal year 2014. 

The Dodd-Frank Act explicitly provides that Bureau funds obtained by 
or transferred to the CFPB are not Government funds or appropriated 
funds. 

Civil Penalty Fund: 

As discussed previously in Section 1.3 of this report entitled, “Civil 
Penalty Fund Annual Report,” the CFPB collected civil penalties from 
judicial or administrative actions in the amount of $77.5 million for 
fiscal year 2014 and $49.5 million for fiscal year 2013. 

Other collections: 

During fiscal year 2014, the CFPB collected $149,600 in filing fees 
pursuant to the Interstate Land Sales Full Disclosure Act of 1968. The 
fees were deposited into an account maintained by the Department of 
the Treasury, and are retained and available until expended for the 
purpose of covering all or part of the costs that the Bureau incurs to 
operate the Interstate Land Sales program. 

Fiduciary activity and custodial revenue: 

Dodd-Frank Act section 1055 authorizes a court in a judicial action, 
or the CFPB in an administrative proceeding, to grant any appropriate 
legal or equitable relief for a violation of Federal consumer 
financial law. Such relief may include redress for victims of the 
violations, including refunds, restitution, and damages. Relief that 
is intended to compensate victims is treated as fiduciary funds and 
deposited into the “Legal or Equitable Relief Fund” established at the 
Department of the Treasury. Fiduciary assets are not assets of the 
CFPB and are not recognized on the balance sheet. During fiscal year 
2014, the CFPB collected $28.2 million in redress to be administered 
by the CFPB. Further information is contained in our financial 
statements at Note 19 entitled, “Fiduciary Activities.” 

Further, section 1055 of the Act provides that the CFPB may obtain the 
remedy of disgorgement for a violation of Federal consumer law. 
Disgorgement paid by the defendant is treated by CFPB as custodial 
revenue and maintained in the Miscellaneous Receipts Fund of the U.S. 
Treasury. CFPB reported the fiscal year 2014 disgorged deposits of 
$27,076 and any other miscellaneous funds collected or receivable 
(e.g., FOIA fees of $18,841) on the Statement of Custodial Activity – 
a statement that displays all custodial revenue for fiscal year 2013. 

Table 27: Overall Summary Of CFPB Revenue And Receipts By Type And 
Fiscal Year: 

Fiscal Year: 2014; 
Transfers requested: $533,800,000; 
Civil Penalty Fund receipts: $77,502,001; 
Fiduciary receipts: $28,231,130; 
Custodial revenue: $45,694. 

Fiscal Year: 2013; 
Transfers requested: $518,400,000; 
Civil Penalty Fund receipts: $49,520,001; 
Fiduciary receipts: $122,804; 
Custodial revenue: $128,201. 

[End of table] 

What the CFPB has funded: 

As the CFPB migrated from its start-up efforts towards a steady state 
status as an entity during fiscal year 2014; many of its obligations 
related to resources essential to operations and activities such as 
personnel, information technology, mission-specific and human capital 
support, and other general support service activities. The CFPB 
incurred $499.8 million in obligations[A] – $259 million in Contracts 
& Support Services[B], $237 million in Salary & Benefits, and $4 
million in All Other. 

[A] Obligations incurred amount of $499.8 million that is reported 
here and on the Statement of Budgetary Resources, includes $4.8 
million in upward adjustments to prior year obligations, and $495 
million associated with the fiscal year 2014 budget. 

[B] Includes $104.7 million of interagency agreements (IAA) CFPB 
entered into with other Federal agencies. IAA's are not reported in 
USASpending.gov. 

Figure 4: Fiscal Year 2014 Obligations Incurred: 

[Refer to PDF for image: pie-chart] 

Contracts & support services: $259 million; 
Salary & benefits: $237 million; 
Other: $4 million. 

[End of figure] 

Examples of some of the larger obligations incurred for CFPB's fiscal 
year 2014 activities included in the $259 million for contracts and 
support services include: 

* Assets in development, such as: 

- $6.9 million for supervisory compliance tools that will automate 
data analysis by providing functionality for examiners to analyze 
specific loan files in the field; 

- $22.9 million for maintaining ongoing operations of CFPB's consumer 
contact center and enhancements to the case management database; 

* $22.8 million to the Department of the Treasury, Departmental 
Offices for various services such as information technology and human 
resource systems support; 

* $7.5 million in agreements with the Board of Governors of the 
Federal Reserve System to provide Office of Inspector General 
services; and; 

* $12.1 million to the BFS/ARC and the Department of the Treasury 
Franchise Fund for cross-servicing of various human resource and 
financial management services, such as core financial accounting, 
transaction processing and reporting, travel, payroll and various IT 
services. 

Net costs of the CFPB's operations: 

The Statement of Net Cost presents the CFPB net cost for its four 
strategic goals: (1) Prevent Financial Harm to Consumers While 
Promoting Good Practices That Benefit Them; (2) Empower Consumers to 
Live Better Financial Lives; (3) Inform the Public, Policy Makers, and 
the CFPB's own Policy-Making with Data-Driven Analysis of Consumer 
Finance Markets and Consumer Behavior; and, (4) Advance the CFPB's 
Performance by Maximizing Resources Productivity and Enhancing Impact. 
Net program costs for fiscal year 2014 are displayed in the chart 
below. 

Figure 5: Fiscal Year 2014 Net Program Costs: 

[Refer to PDF for image: pie-chart] 

Prevent harm to consumers: $228.4 million; 
Advance CFPB's performance: $122.8 million; 
Empower consumers: $100.7 million; 
Inform the public $45.7 million. 

[End of figure] 

1.6 Possible future risks and uncertainties: 

Funding and independence: 

The Congress, in implementing the Dodd-Frank Act, followed a long-
established precedent in providing the CFPB with sources of funding 
outside of the Congressional appropriations process to ensure full 
independence as the Bureau supervises and regulates providers of 
consumer financial products and services and protects financial 
consumers. Congress has consistently provided for independent sources 
of funding for Federal banking supervisors to allow for long-term 
planning and the execution of complex initiatives and to ensure that 
financial institutions are examined regularly and thoroughly for 
compliance with the law. 

The CFPB has been tasked with supervising more entities than all other 
Federal bank supervisors combined, including supervising the largest, 
most complex banks. Effective supervision that assures a level playing 
field between bank and non-bank institutions requires dedicated and 
predictable resources and independent examiners. However, the CFPB is 
nonetheless the only banking supervisor with a statutory cap on its 
primary source of funding. 

Possible future impact on financial services environment: 

It is anticipated that markets in both U.S. and foreign financial 
services sectors will evolve to address different and ever-changing 
implications based on their programs, unique business mixes, and 
organizational structures. These future external challenges must be 
monitored, as they will impact the work of the CFPB in protecting 
financial consumers and addressing a continually changing financial 
environment. 

[End of section] 

2. Financial Statements and Note Disclosures: 

Message from the Chief Financial Officer: 

During fiscal year 2014, the Office of the Chief Financial Officer 
(OCFO) continued to provide support for the Consumer Financial 
Protection Bureau (CFPB). Fiscal year 2014 marked a significant 
transition from the Bureau's initial years' status, most appropriately 
characterized as one of continued growth and maturity towards its goal 
of achieving a steady state status as a Federal agency. While the rate 
of growth has slowed during fiscal year 2014, CFPB still required 
significant attention to the growth and maturity of its workforce, 
resources, and support contracts that facilitate the work of the only 
Federal agency with the sole focus of protecting the rights of 
financial consumers and enforcing Federal financial consumer laws. 

The OCFO made numerous improvements to CFPB's financial management 
processes and enhanced the reporting of financial management results 
to CFPB decision makers and interested stakeholders. Three major 
actions included: 

* Coordinating with the Bureau of Fiscal Services on the migration and 
training for travelers and supervisors to a new travel system and new 
processes for the decentralized review and approval of travel by 
immediate supervisors; 

* Coordinating the receipt, management and disbursement of monies in 
the Civil Penalty Fund and the Legal or Equitable Relief Fund 
resulting from the actions of various defendants who violated Federal 
financial consumer laws; and, 

* Continuing to provide program managers with monthly and quarterly 
financial data and information such as the status of funds for 
relevant programs, key investments, staffing status, and the 
availability to request funds for unanticipated needs. 

Provided are the CFPB's financial statements as an integral part of 
the fiscal year 2014 Financial Report. For fiscal year 2014, the 
Government Accountability Office (GAO) rendered an unmodified or “clean”
audit opinion on the CFPB's financial statements and noted one (1) 
material weakness regarding the accounts payable accruals process and 
one (1) significant deficiency regarding the recordation of property 
and equipment in the CFPB's internal control and cited no instances of 
non-compliance with laws and regulations. The OCFO will implement 
changes to the accounts payable accruals process and the property and 
equipment recordation process in fiscal year 2015 to remediate the 
issues identified by the GAO. The OCFO will work closely with the 
Chief Procurement Officer and the Contracting Officer Representatives, 
as well as other Bureau accountable officials to successfully 
remediate this material weakness and significant deficiency. 

Signed by: 

Stephen J. Agostini: 

[End of Message from the Chief Financial Officer] 

2.1. U.S. Government Accountability Office auditor's report: 

United States Government Accountability Office: 
GAO:
441 G St. N.W. 
Washington, DC 20548: 

Independent Auditor's Report: 

To the Director of the Bureau of Consumer Financial Protection 

In our audits of the fiscal years 2014 and 2013 financial statements 
of the Bureau of Consumer Financial Protection, known as the Consumer 
Financial Protection Bureau (CFPB), we found: 

* the CFPB financial statements as of and for the fiscal years ended 
September 30, 2014, and 2013, are presented fairly, in all material 
respects, in accordance with U.S. generally accepted accounting 
principles; 

* CFPB's internal control over financial reporting was not effective 
as of September 30, 2014; and; 

* no reportable noncompliance for fiscal year 2014 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 and on internal control over financial reporting, 
which includes required supplementary information (RSI)[Footnote 1] 
and other information[Footnote 2] included with the financial 
statements; (2) our report on compliance with laws, regulations, 
contracts, and grant agreements; and (3) agency comments. 

Report on the Financial Statements and on Internal Control over 
Financial Reporting: 

As required by the Dodd-Frank Wall Street Reform and Consumer 
Protection Act[Footnote 3] and the Full-Year Continuing Appropriations 
Act, 2011,[Footnote 4] we have audited CFPB's financial statements. 
CFPB's financial statements comprise the balance sheets as of 
September 30, 2014, and 2013; the related statements of net cost of 
operations, changes in net position, budgetary resources, and 
custodial activity for the fiscal years then ended; and the related 
notes to the financial statements. We also have audited CFPB's 
internal control over financial reporting as of September 30, 2014, 
based on criteria established under 31 U.S.C. § 3512(c), commonly 
known as the Federal Managers' Financial Integrity Act (FMFIA), and 
applicable sections of Office of Management and Budget (OMB) Circular 
A-123, Management's Responsibility for Internal Control. 

We conducted our audits in accordance with U.S. generally accepted 
government auditing standards. We believe that the audit evidence we 
obtained is sufficient and appropriate to provide a basis for our 
audit opinions. 

Management's Responsibility: 

CFPB 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; (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; 
(5) evaluating the effectiveness of internal control over financial 
reporting based on the criteria established under FMFIA and applicable 
sections of OMB Circular A-123; and (6) providing its assertion about 
the effectiveness of internal control over financial reporting as of 
September 30, 2014, based on its evaluation, included in the 
accompanying Management's Report on Internal Control over Financial 
Reporting in appendix I. 

Auditor's Responsibility: 

Our responsibility is to express an opinion on these financial 
statements and an opinion on CFPB's internal control over financial 
reporting based on our audits. U.S. generally accepted government 
auditing standards require that we plan and perform the audits to 
obtain reasonable assurance about whether the financial statements are 
free from material misstatement, and whether effective internal 
control over financial reporting was maintained in all material 
respects. We are also responsible for applying certain limited 
procedures to the 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. 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. An audit of internal 
control over financial reporting includes obtaining an understanding 
of internal control over financial reporting, assessing the risk that 
a material weakness exists,[Footnote 5] evaluating the design and 
operating effectiveness of internal control over financial reporting 
based on the assessed risk, and testing relevant internal control over 
financial reporting. Our audit of internal control also considered the 
entity's process for evaluating and reporting on internal control over 
financial reporting based on criteria established under FMFIA and 
applicable sections of OMB Circular A-123. Our audits also included 
performing such other procedures as we considered necessary in the 
circumstances. 

We did not evaluate all internal controls relevant to operating 
objectives as broadly established under FMFIA, such as those controls 
relevant to preparing performance information and ensuring efficient 
operations. We limited our internal control testing to testing 
controls over financial reporting. Our internal control testing was 
for the purpose of expressing an opinion on whether effective internal 
control over financial reporting was maintained, in all material 
respects. Consequently, our audit may not identify all deficiencies in 
internal control over financial reporting that are less severe than a 
material weakness. 

Definitions 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 laws 
governing the use of budget authority and with other applicable laws, 
regulations, contracts, and grant agreements that could have a direct 
and 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. We also caution that projecting any evaluation of 
effectiveness to future periods is subject to the risk that controls 
may become inadequate because of changes in conditions, or that the 
degree of compliance with the policies or procedures may deteriorate. 

Opinion on Financial Statements: 

In our opinion, CFPB's financial statements present fairly, in all 
material respects, CFPB's financial position as of September 30, 2014, 
and 2013, and its net cost of operations, changes in net position, 
budgetary resources, and custodial activity for the fiscal years then 
ended in accordance with U.S. generally accepted accounting principles. 

However, misstatements may nevertheless occur in other financial 
information reported by CFPB and not be detected as a result of the 
internal control deficiencies described in this report. 

Opinion on Internal Control over Financial Reporting: 

In our opinion, because of a material weakness in internal control 
over the reporting of accounts payable, CFPB did not maintain, in all 
material respects, effective internal control over financial reporting 
as of September 30, 2014, based on criteria established under FMFIA 
and applicable sections of OMB Circular A-123. 

Despite the material weakness in CFPB's internal control over 
reporting of accounts payable, CFPB made necessary and appropriate 
adjustments to its records and was therefore able to prepare financial 
statements that were fairly presented in all material respects for 
fiscal year 2014. However, the material weakness may adversely affect 
any decisions by CFPB's management that are based, in whole or in 
part, on information that is inaccurate because of this weakness. The 
issues constituting this material weakness, which are discussed in 
more detail below, were also disclosed by CFPB in its fiscal year 2014 
(1) FMFIA assurance statement and (2) Management's Report on Internal 
Control over Financial Reporting. We considered this material weakness 
in determining the nature, timing, and extent of our audit procedures 
on CFPB's fiscal year 2014 financial statements. 

In addition, we found that although CFPB took actions to attempt to 
address a significant deficiency in internal control over accounting 
for property and equipment that we reported in fiscal year 2013, our 
fiscal year 2014 audit continued to identify deficiencies in this 
area. These deficiencies, while not considered a material weakness, 
are important enough to merit the attention of those charged with 
governance of CFPB. Therefore, we considered these deficiencies over 
accounting for property and equipment collectively to be a significant 
deficiency in CFPB's internal control over financial reporting in 
fiscal year 2014.[Footnote 6] This significant deficiency is discussed 
in more detail later in this report. 

In addition to the material weakness and significant deficiency in 
internal control, we also identified other deficiencies in CFPB's 
internal control over financial reporting that we do not consider to 
be material weaknesses or significant deficiencies. Nonetheless, these 
deficiencies warrant CFPB management's attention. We have communicated 
these matters to CFPB management and, where appropriate, will report 
on them separately. 

Material Weakness in Internal Control over Reporting of Accounts 
Payable: 

During our fiscal year 2014 audit, we found serious control 
deficiencies that affected CFPB's determination and reporting of 
accounts payable accruals. Specifically, we found that CFPB did not 
have effective procedures in place to determine and record an 
appropriate amount for goods and services received but not yet paid 
for as of September 30, 2014. Additionally, CFPB did not have 
effective review procedures to timely detect and correct inaccuracies 
in the accrual amounts. 

CFPB's accounts payable balance consists primarily of amounts owed for 
goods and services received relating to contracts and property and 
equipment acquisitions that have not been paid. CFPB's accounts 
payable balance (including both intragovernmental and amounts due to 
the public) increased 75 percent from $32 million in fiscal year 2013 
to approximately $56 million in fiscal year 2014. CFPB's Office of the 
Chief Financial Officer (OCFO) is responsible for the accrual process. 
CFPB's established procedures state that the OCFO sends a report to 
the contracting officer representative (COR) (for contracts) and 
invoice approver (for interagency agreements) of each division or 
program office, asking each to respond with an amount for services 
provided or goods received through the end of each quarter, for which 
CFPB has not received an invoice. The COR and invoice approver are 
then responsible for estimating an amount for each contract or 
interagency agreement, respectively, that should be accrued as of the 
end of each quarter. On a quarterly basis, the OCFO reviews financial 
documents, such as open obligation and accrual reports, to ensure 
completeness and accuracy of accruals submitted by the CORs and 
invoice approvers. 

In our fiscal year 2013 audit opinion, we reported on a significant 
deficiency with respect to reporting accounts payable.[Footnote 7] 
Consequently, we separately reported the details of the significant 
deficiency, along with recommendations for corrective actions, in May 
2014.[Footnote 8] Based on these recommendations, with which it 
concurred, CFPB took actions in an attempt to improve the reporting of 
accounts payable. Such actions included (1) holding meetings with the 
CORs and invoice approvers to discuss responsibilities and challenges 
with the accounts payable accrual process, (2) requesting additional 
information and documentation from the CORs and invoice approvers to 
support the accrual amounts, (3) sampling accruals using a risk-based 
approach to perform reasonableness reviews, and (4) developing a guide 
for the CORs and invoice approvers discussing topics such as roles, 
responsibilities, accruals, open obligations, and fixed assets. 

However, as of the end of our fiscal year 2014 audit, the guidance for 
the CORs and invoice approvers was still in draft form. Our fiscal 
year 2014 testing results showed that the CORs and invoice approvers 
continued to make errors in determining the amount of accounts payable 
to be accrued for reporting purposes. Specifically, we found multiple 
instances in which the CORs did not adequately estimate the amount 
owed for goods and services received as of September 30, 2014, and the 
OCFO reviews were not effective in detecting and correcting the 
errors. Based on our testing of a statistical sample of 42 accounts 
payable accruals, we found that CFPB incorrectly recorded 
approximately $3.2 million for nine sample items that represented 
goods and services that had already been received and paid for as of 
September 30, 2014. We also identified five accruals totaling $0.9 
million for goods and services that had not yet been received in 
fiscal year 2014. In total, we identified 14 errors in our statistical 
sample of 42 that resulted in an overstatement to accounts payable of 
approximately $4.1 million. Most of these errors occurred as a result 
of the accounts payable accruals not being adjusted once the invoices 
were approved and paid. Because the OCFO's sampling methodology to 
review accruals was implemented in the third quarter of fiscal year 
2014 and included only the 10 largest accrual amounts, it was not 
effective at detecting these errors. 

After we brought these errors to CFPB's attention, CFPB management 
conducted an analysis to identify additional instances in which 
accounts payable accruals could have been misstated. We reviewed CFPB'
s analysis in relation to our testing results and determined that it 
was reasonable. Based on its analysis, CFPB reduced its accounts 
payable balance by $7.7 million. However, the cumulative impact of 
these continuing control deficiencies is such that a reasonable 
possibility exists that a material misstatement of CFPB's financial 
statements would not be prevented, or detected and corrected, on a 
timely basis. Consequently, these control deficiencies collectively 
represent a material weakness in CFPB's internal control over 
reporting of accounts payable. 

These serious deficiencies in internal control over reporting of 
accounts payable are likely to continue to exist until CFPB (1) 
finalizes, disseminates, and implements detailed guidance to the CORs 
and invoice approvers; (2) provides continuous and effective training 
for the CORs and invoice approvers; and (3) strengthens its 
methodology to review accounts payable accruals. Because CFPB 
continues to grow as an agency, which has resulted in higher volumes 
of transactions each year, it is imperative that it address these 
issues in an effective and timely manner. 

Significant Deficiency in Internal Control over Accounting for 
Property and Equipment: 

During our fiscal year 2014 audit, we continued to find that CFPB did 
not effectively implement internal controls over the recording of its 
property and equipment, which led to significant, but not material, 
misstatements in its financial statements. Specifically, we found that 
CFPB did not have effective procedures to properly distinguish between 
costs that should be recorded as property and equipment and those that 
should be recorded as gross costs (i.e., expensed) and appropriately 
record them in its financial records. Additionally, CFPB did not have 
effective review procedures to timely detect and correct errors in its 
records. 

CFPB's property and equipment consist of internal-use software, 
internal-use software in development, general-purpose furniture and 
equipment, and leasehold improvements in development. During fiscal 
year 2014, CFPB acquired approximately $15 million in property and 
equipment. CFPB policy requires capitalizing property and equipment 
with estimated useful lives of 2 or more years that meet the following 
criteria: internal-use software purchased or developed of $750,000 or 
more; leasehold improvements and equipment acquisitions of $50,000 or 
more; and bulk purchases of $250,000 or more of similar items. Other 
property items, normal repairs, and maintenance are charged to expense 
as incurred. CFPB's established procedures for recording its property 
and equipment additions include that on a quarterly basis, the OCFO 
reviews property and equipment acquisitions and goods and services 
transactions of $50,000 and greater to help ensure that purchased 
items and costs associated with property and equipment, including 
internal-use software, are appropriately classified as capitalized 
assets or operating costs, consistent with its capitalization policy. 
For internal-use software, federal accounting standards provide that 
capitalized costs should include the full cost incurred during the 
software development stage, and exclude costs associated with 
preliminary design and post-implementation services.[Footnote 9] 

In our fiscal year 2013 audit opinion, we reported on a significant 
deficiency with respect to accounting for property and equipment. 
[Footnote 10] Consequently, we separately reported the details of the 
significant deficiency, along with recommendations for corrective 
actions, in May 2014.[Footnote 11] Based on these recommendations, 
with which it concurred, CFPB took actions in an attempt to improve 
the reporting of property and equipment. Such actions included the 
OCFO (1) working in conjunction with the Office of Procurement through 
monthly roundtable meetings to discuss financial-related topics and 
(2) performing additional reviews and analytics of contracts and 
interagency agreements for items that may meet the CFPB capitalization 
threshold. 

However, the results of our fiscal year 2014 testing showed that CFPB 
continued to make errors in capitalizing costs and the OCFO's review 
was not effective in detecting and correcting these errors. 
Specifically, the results of our tests, which covered 100 percent of 
property and equipment additions in fiscal year 2014, revealed that 
CFPB erroneously capitalized as internal-use software and internal-use 
software in development $4.4 million in costs that related to 
maintenance and other operating costs that should have been included 
in gross cost. These errors occurred, in part, as a result of CFPB not 
having an effective mechanism to track the development stage for 
internal-use software. While the OCFO uses tracking schedules prepared 
by the applicable CORs and program offices to determine the current 
stage of internal-use software, these schedules change frequently and 
thus might be outdated at the time of capitalization. Consequently, 
CFPB cannot effectively determine whether the amounts invoiced 
represent costs associated with preliminary design, which should be 
expensed; software development, which should be capitalized; or post-
implementation services, which should be expensed. We also found that 
the OCFO's quarterly reviews were not effective in detecting and 
correcting these errors to ensure that the amounts recorded for 
property and equipment were accurate and complete. For example, we 
found instances in which the invoices were not properly reviewed to 
determine whether the goods and services charged met the 
capitalization criteria. After we brought these issues to CFPB's 
attention, CFPB made the corresponding corrections to its fiscal year 
2014 financial statements. 

These deficiencies increase the risk that CFPB's reported balances for 
property and equipment as well as its reported expenses could be 
misstated, and collectively represent a significant deficiency in CFPB'
s internal control over its accounting for property and equipment that 
merits attention by those charged with governance. Until CFPB 
strengthens its control procedures to ensure (1) adequate and 
continuous coordination between the OCFO, CORs, the Office of 
Procurement, and other program offices at the time of capitalization 
and (2) effective review of property and equipment costs, the 
deficiencies in internal control over the accounting for property and 
equipment are likely to continue to exist. 

Other Matters: 

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 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: 

CFPB's other information contains 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 CFPB's financial statements. We did not audit and do not 
express an opinion or provide any assurance on the other information. 

Report on Compliance with Laws, Regulations, Contracts, and Grant 
Agreements: 

In connection with our audits of CFPB's financial statements, we 
tested compliance with selected provisions of applicable laws, 
regulations, contracts, and grant agreements consistent with the 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: 

CFPB management is responsible for complying with laws, regulations, 
contracts, and grant agreements applicable to CFPB. 

Auditor's Responsibility: 

Our responsibility is to test compliance with selected provisions of 
laws, regulations, contracts, and grant agreements applicable to CFPB 
that have a direct effect on the determination of material amounts and 
disclosures in the CFPB financial statements, and perform certain 
other limited procedures. Accordingly, we did not test compliance with 
all laws, regulations, contracts, and grant agreements applicable to 
CFPB. 

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 2014 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 
CFPB. Accordingly, we do not express such an opinion. 

Intended Purpose of Report on Compliance with Laws, Regulations, 
Contracts, and Grant Agreements: 

The purpose of this report is solely to describe the scope of our 
testing of compliance with selected provisions of applicable laws, 
regulations, contracts, and grant agreements, and the results of that 
testing, and not to provide an opinion on compliance. This report is 
an integral part of an audit performed in accordance with U.S. 
generally accepted government auditing standards in considering 
compliance. Accordingly, this report on compliance with laws, 
regulations, contracts, and grant agreements is not suitable for any 
other purpose. 

Agency Comments: 

We provided a draft of this report to the Director of CFPB for 
comment. In his written comments, reprinted in appendix II, CFPB's 
Director stated that he was pleased to receive an unmodified audit 
opinion on the bureau's fiscal years 2014 and 2013 financial 
statements. The Director also agreed with the material weakness over 
reporting of accounts payable and the significant deficiency over 
accounting for property and equipment that we reported, and added that 
CFPB will continue to work to enhance its system of internal control 
and ensure the reliability of its financial reporting. The Director 
cited a number of steps CFPB plans to take in fiscal year 2015 to 
remediate these issues. Specifically, CFPB's plans for addressing the 
material weakness over reporting of accounts payable include 
completing and disseminating guidance for the CORs and invoice 
approvers; providing continuous and effective training to the CORs and 
invoice approvers; improving collaboration between the OCFO, CORs, and 
invoice approvers when calculating accrual amounts; increasing 
oversight of contracts and interagency agreements that affect accrual 
amounts; and performing more comprehensive review processes. To 
address the significant deficiency over accounting for property and 
equipment, CFPB stated that it plans to increase collaboration between 
the OCFO, CORs, invoice approvers, and the Office of Procurement; 
continue its review of contracts and interagency agreements; and 
implement a process to more systematically gather and disseminate 
information on fixed asset acquisitions to ensure that capitalized 
costs are accurately captured and recorded. 

We will evaluate CFPB's actions to address the deficiencies identified 
in this report as part of our fiscal year 2015 audit. 

Signed by: 

J. Lawrence Malenich: 
Director: 
Financial Management and Assurance: 

November 10, 2014: 

Independent Auditor's Report Footnotes: 

[1] RSI consists of Management's Discussion and Analysis, which is 
included with the financial statements. 

[2] Other information consists of information included with the 
financial statements, other than the RSI and the auditor's report. 

[3] Pub. L. No. 111-203, § 1017(a)(5), 124 Stat. 1376, 1976-1977 
(2010), codified at 12 U.S.C. § 5497(a)(5). 

[4] Pub. L. No. 112-10, § 1573(a), 125 Stat 38, 138 (2011), codified 
at 12 U.S.C. § 5496a. 

[5] 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. 

[6] A significant deficiency is a deficiency, or a combination of 
deficiencies, in internal control that is less severe than a material 
weakness, yet important enough to merit attention by those charged 
with governance. 

[7] GAO, Financial Audit: Bureau of Consumer Financial Protection's 
Fiscal Years 2013 and 2012 Financial Statements, [hyperlink, 
http://www.gao.gov/products/GAO-14-170R] (Washington, D.C.: Dec. 16, 
2013). 

[8] GAO, Management Report: Improvements Needed in CFPB's Internal 
Controls and Accounting Procedures, [hyperlink, 
http://www.gao.gov/products/GAO-14-455R] (Washington, D.C.: May 2, 
2014). 

[9] Statement of Federal Financial Accounting Standards No. 10, 
Accounting for Internal Use Software, October 9, 1998, as amended 
through June 30, 2014. 

[10] [hyperlink, http://www.gao.gov/products/GAO-14-170R]. 

[11] [hyperlink, http://www.gao.gov/products/GAO-14-455R]. 

[End of section] 

Appendix I. Management's report on internal control over financial 
reporting: 

Consumer Financial Protection Bureau: 
1700 G Street, NW: 
Washington, DC 20552: 

November 10, 2014: 

Mr. Gene Dodaro: 
Comptroller General of the United States: 
441 G Street, NW: 
Washington, DC 20548: 

Dear Mr. Dodaro, 

As required by Section 1017 of the Dodd-Frank Act, 12 U.S.C. Section 
5497(a)(4)(D), the Consumer Financial Protection Bureau (CFPB) 
provides this management assertion regarding the effectiveness of 
internal control that apply to financial reporting by the CFPB based 
on criteria established in Section 3512(c) of Title 31, United States 
Code (commonly known as the Federal Managers' Financial Integrity Act) 
and applicable sections of Office of Management and Budget Circular A-
123. 

The CFPB'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 laws 
governing the use of budget authority and with other applicable laws, 
regulations, contracts, and grant agreements that could have a direct 
and material effect on the financial statements. 

CFPB 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. CFPB 
management evaluated the effectiveness of CFPB's internal control over 
financial reporting as of September 30, 2014, based on the criteria 
established under 31 U.S.C. 3512(c) and applicable sections of Office 
of Management and Budget Circular A-123. 

Based on the results of this evaluation, other than the material 
weakness identified regarding the accounts payable accruals process, 
as of September 30, 2014, the CFPB's internal control over financial 
reporting was operating effectively and no other material weaknesses 
were found in the design or operation of the internal control. 

Signed by: 

Richard Cordray: 
Director: 
Consumer Financial Protection Bureau: 

Signed by: 

Stephen J. Agostini: 
Chief Financial Officer: 
Consumer Financial Protection Bureau: 

[End of section] 

Appendix II. Management's response to the auditor's report: 

Consumer Financial Protection Bureau: 
1700 G Street, NW: 
Washington, DC 20552: 

November 12, 2014: 

Mr. J. Lawrence Malenich: 
Director, Financial Management and Assurance: 
Government Accountability Office: 
441 G Street, N.W., Room 5T45: 
Washington, DC 20548: 

Dear Mr. Malenich, 

I appreciate the opportunity to respond to the Government 
Accountability Office's (GAO) draft audit report titled, Financial 
Audit: Bureau of Consumer Financial Protection's Fiscal Years 2014 and 
2013 Financial Statements, and want to thank you and your staff for 
your dedicated efforts and collaboration to meet the audit 
requirements. 

We are pleased that GAO's auditors rendered an unmodified or “clean” 
audit opinion, meaning GAO found that the Consumer Financial 
Protection Bureau (CFPB or Bureau) financial statements are presented 
fairly, in all material respects, and in conformity with U.S. 
generally accepted accounting principles, and that there were no 
instances of reportable noncompliance with laws and regulations tested 
by GAO. Maintaining an unmodified or “clean” audit opinion on the 
CFPB's comparative financial statements for fiscal years 2014 and 2013 
is a significant accomplishment. 

We acknowledge and concur with GAO's identification of one material 
weakness in internal control over the reporting of accounts payable. 
It is our understanding that this material weakness does not indicate 
that the Bureau overspent its funds in fiscal year 2014 (in fact it 
appears to have underspent them). Nevertheless, the Bureau is 
committed to correcting the imprecision in the accrual estimation 
process to ensure the proper accounting and reporting of the Bureau's 
expenses. In fiscal year 2013, a significant deficiency was identified 
in the accounts payable accrual process. During fiscal year 2014, the 
OCFO implemented corrective actions to mitigate the risks of this 
deficiency: provided additional outreach and guidance to Contracting 
Officer Representatives (COR) and invoice approvers, implemented a 
sampling methodology to review the accrual amounts, and began 
developing a resource and desk guide for the CORs and invoice 
approvers. The corrective actions implemented did not mitigate the 
risks appropriately and the errors in the accounts payable accrual 
amounts resulted in the identification of a material weakness. During 
fiscal year 2015, the Bureau will implement further steps to remediate 
these issues working with CORs, invoice approvers, and the Bureau's 
accountable officials. These corrective actions will include the 
completion and dissemination of the resource and desk guide for the 
CORs and invoice approvers, continuous and effective training for the 
CORs and invoice approvers, improved collaboration between the OCFO 
and the CORs and invoice approvers when calculating the accrual 
amounts, increased oversight by the OCFO over the budget execution of 
contracts and interagency agreements that impact the associated 
accrual amounts, and a more comprehensive OCFO review process over the 
accrual amounts. 

In fiscal year 2014, the GAO cited one repeat significant deficiency 
regarding property and equipment. As a result of this significant 
deficiency identified in fiscal year 2013, during fiscal year 2014 the 
OCFO implemented corrective actions: provided additional outreach and 
guidance to CORs and invoice approvers and implemented a review 
process over contracts and interagency agreements for the purchase or 
development of items that may be capitalized. The corrective actions 
implemented did not fully mitigate the risks and therefore this 
significant deficiency is still identified in fiscal year 2014. During 
fiscal year 2015, the Bureau will increase its collaboration between 
the OCFO, applicable CORs and invoice approvers, and the Office of 
Procurement; continue its review over contracts and interagency 
agreements; and implement a process to more systematically gather and 
disseminate information on fixed asset acquisitions to ensure 
capitalized costs are accurately captured and recorded. 

The CFPB will continue to work to enhance our system of internal 
control and ensure the reliability of CFPB's financial reporting. The 
CFPB looks forward to working with GAO in future audits and truly 
appreciates GAO's work over the past fiscal year. 

If you have any questions relating to this response, please contact 
Stephen J. Agostini, Chief Financial Officer. 

Signed by: 

Richard Cordray: 
Director: 
Consumer Financial Protection Bureau: 

[End of section] 

2.2 Financial statements and notes: 

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

Consumer Financial Protection Bureau: 
Balance Sheet: 
As of September 30, 2014 and 2013: 
(In Dollars): 

Assets: 

Intragovernmental: 

Fund Balance with Treasury (Note 2); 
2014: $39,658,210; 
2013: $26,764,046. 

Investments (Note 3); 
2014: $434,793,473;
2013: $343,797,086. 

Advances and Prepayments (Note 7); 
2014: $2,900,006
2013: $4,993,642. 

Total Intragovernmental; 
2014: $477,3561,689; 
2013: $375,554,774. 

Cash, and Other Monetary Assets: 

Cash in the Bureau Fund (Note 4); 
2014: $265,163; 
2013: $325,312. 

Cash in the Civil Penalty Fund (Note 4); 
2014: $157,001,716; 
2013: $81,520,001. 

Total Cash, and Other Monetary Assets; 
2014: $157,266,879; 
2013: $81,845,313. 

Accounts Receivable (Note 5); 
2014: $15,363,382; 
2013: $54,883. 

Property, Equipment, and Software, Net (Note 6); 
2014: $37,496,598; 
2013: $27,684,477. 

Advances and Prepayments (Note 7); 
2014: $2,706; 
2013: $749,699. 

Total Assets; 
2014: $687,481,254; 
2013: $485,889,146. 

Liabilities: 

Intragovernmental: 

Accounts Payable; 
2014: $27,209,775; 
2013: $12,778,174. 

Benefits Payable; 
2014: $12,094,603; 
2013: $6,570,070. 

Other (Note 8); 
2014: $442,000; 
2013: $270,811. 

Total Intragovernmental; 
2014: $39,746,378; 
2013: $19,619,055. 

Accounts Payable; 
2014: $28,7131,030; 
2013: $19,400,933. 

Employer Benefits Contributions; 
2014: $29,658,237; 
2013: $11,131,319. 

Accrued Funded Payroll; 
2014: $4,553,007; 
2013: $3,441,835. 

Civil Penalty Fund Allocation (Note 4); 
2014: $30,334,602; 
2013: $13,046,046. 

Unfunded Leave; 
2014: $16,400,954; 
2013: $11,939,809. 

Other (Note 8); 
2014: $14,172; 
2013: $864. 

Total Liabilities (Note 9); 
2014: $149,420,380; 
2013: $78,579,861. 

Commitments and Contingencies (Note 10): 

Net Position: 

Cumulative Results of Operations - Funds from Dedicated
Collections (consolidated totals) (Note 17); 
2014: $538,060,874; 
2013: $407,309,285. 

Total Liabilities and Net Position; 
2014: $687,481,254; 
2013: $485,889,146. 

[End of table] 

Consumer Financial Protection Bureau: 
Statement Of Net Cost: 
For the Fiscal Year Ended September 30, 2014 and 2013: 

Program Costs: 

Prevent Financial Harm to Consumers While Promoting Good Practices 
That Benefit Them: 
Gross Costs: 
2014: $228,378,527; 
2013: $166,120,841. 

Net Prevent Financial Harm to Consumers While Promoting Good Practices 
That Benefit Them; 
2014: $228,378,527; 
2013: $166,120,841. 

Empower Consumers to Live Better Financial Lives: 

Gross Costs; 
2014: $100,716,666; 
2013: $70,921,575. 

Net Empower Consumers to Live Better Financial Lives; 
2014: $100,716,666; 
2013: $70,921,575. 

Inform The Public, Policy Makers, and the CFPB's own Policy-Making 
with Data-Driven Analysis of Consumer Finance Markets and Consumer 
Behavior: 

Gross Costs; 
2014: $45,763,864; 
2013: $43,144,983. 

Less: Earned Revenue: 
2014: ($80,000). 

Net Inform The Public, Policy Makers, and the CFPB's own Policy-Making 
with Data-Driven Analysis of Consumer Finance Markets and Consumer 
Behavior; 
2014: $45,683,864; 
2013: $43,144,983. 

Advance the CFPB's Performance by Maximizing Resource Productivity & 
Enhancing Impact: 

Gross Costs: 
2014: $122,774,691; 
2013: $111,137,443. 

Net Advance the CFPB's Performance by Maximizing Resource Productivity 
& Enhancing Impact: 
2014: $122,774,691; 
2013: $111,137,443. 

Total Gross Program Costs: 
2014: $497,633,748; 
2013: $391,324,842. 

Net Cost of Operations (Note 11): 
2014: $497,553,748; 
2013: $391,324,842. 

[End of table] 

Consumer Financial Protection Bureau: 
Statement Of Changes In Net Position: 
For the Fiscal Year Ended September 30, 2014 and 2013: 

Cumulative Results of Operations: 

Beginning Balances: 
2014: $407,309,285; 
2013: $228,503,943. 

Budgetary Financing Sources: 

Nonexchange Revenue: 

Transfers from the Board of Governors of the Federal
Reserve System: 
2014: $533,800,000; 
2013: $518,400,000. 

Civil Penalties: 
2014: $92,702,001; 
2013: $49,520,001. 

Interstate Land Sales Fees: 
2014: $149,600; 
2013: $146,900. 

Interest from Investments: 
2014: $132,368; 
2013: $204,345. 

Total Nonexchange Revenue: 
2014: $626,783,969; 
2013: $568,271,246. 

Other: 
2014: $3,870; 
2013: $10,089. 

Other Financing Sources (Non-Exchange): 

Imputed Financing Sources: 
2014: $1,517,498; 
2013: $1,848,849. 

Total Financing Sources: 
2014: $628,305,337; 
2013: $570,130,184. 

Net Cost of Operations: 
2014: ($497,553,748); 
2013: ($391,324,842). 

Net Change: 
2014: $130,751,589; 
2013: $178,805,342. 

Cumulative Results of Operations--Funds from
Dedicated Collections (consolidated totals) (Note 17): 
2014: $538,060,874; 
2013: $407,309,285. 

Net Position: 
2014: $538,060,874;
2013: $407,309,285. 

[End of table] 

Consumer Financial Protection Bureau: 
Statement Of Budgetary Resources: 
For the Fiscal Year Ended September 30, 2014 and 2013: 

Budgetary Resources: 

Unobligated Balance Brought Forward, October 1: 
2014: $169,931,592; 
2013: $131,568,070. 

Recoveries of Prior Year Unpaid Obligations: 
2014: $14,992,113; 
2013: $8,750,005. 

Unobligated Balance from prior year budget authority, net: 
2014: $184,923,705; 
2013: $140,318,075. 

Funds Available for Obligation: 
2014: $611,594,848; 
2013: $568,288,019. 

Total Budgetary Resources: 
2014: $796,718,485; 
2013: $708,690,708. 

Status of Budgetary Resources: 

Obligations Incurred (Note 12): 
2014: $499,812,046; 
2013: $538,759,116. 

Unobligated Balance, end of year, Exempt From Apportionment: 
2014: $296,906,439; 
2013: $169,931,592. 

Total Budgetary Resources: 
2014: $$796,718,485; 
2013: $708,690,708. 

Change in Obligated Balance: 

Obligated Balance, Net, Unpaid Obligations, Brought Forward, October 1: 
2014: $282,450,772; 
2013: $109,033,128. 

Obligations Incurred: 
2014: $499,812,046; 
2013: $538,759,116. 

Gross Outlays: 
2014: ($432,475,653); 
2013: ($356,591,467). 

Recoveries of prior year unpaid obligations: 
2014: ($14,992,113); 
2013: ($8,750,005). 

Unpaid Obligations, End of year: 
2014: $334,795,052; 
2013: $282,450,772. 

Memorandum (non-add) entries: 

Obligated Balance, Start of Year: 
2014: $282,450,772; 
2013: $109,033,128. 

Obligated Balance, End of Year: 
2014: $334,795,052; 
2013: $282,450,772. 

Budget Authority and Outlays, Net: 

Budget Authority, Gross: 
2014: $611,794,780; 
2013: $568,372,633. 

Actual offsetting collections: 
2014: ($199,932); 
2013: ($84,614). 

Budget Authority, Net: 
2014: $611,594,848; 
2013: $568,288,019. 

Outlays, gross: 
2014: $432,475,63; 
2013: $356,591,467. 

Actual offsetting collections: 
2014: ($199,932); 
2013: ($84,614). 

Agency outlays, net: 
2014: $432,275,721; 
2013: $356,506,853. 

[End of table] 

Consumer Financial Protection Bureau: 
Statement Of Custodial Activity: 
For the Fiscal Years Ended September 30, 2014 and 2013: 
(In Dollars): 

Revenue Activity: 

Sources of Cash Collections: 

Disgorgement: 
2014: $27,076; 
2013: $118,194. 

Miscellaneous: 
2014: $20,002; 
2013: $3,369. 

Total Cash Collections: 
2014: $47,078; 
2013: $121,563. 

Accrual Adjustments: 
2014: ($1,384); 
2013: $6,638. 

Total Custodial Revenue: 
2014: $45,694; 
2013: $128,201. 

Disposition of Collections: 

Amounts Transferred to the Department of the Treasury: 
2014: $47,078; 
2013: $121,563. 

Increase/(Decrease) in Amounts Yet to be Transferred: 
2014: ($1,384); 
2013: $6,638. 

Net Custodial Activity: 
2014: [Empty]; 
2013: [Empty]. 

[End of table] 

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

Note 1: Summary of significant accounting policies: 

A. Reporting entity: 

The Bureau of Consumer Financial Protection, known as the Consumer 
Financial Protection Bureau (CFPB), was established on July 21, 2010 
under Title X of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act Public Law No. 111-203 (Dodd-Frank Act). The CFPB was 
established as an independent bureau within the Federal Reserve 
System. The Bureau is an Executive agency as defined in section 105 of 
Title 5, United States Code. Section 1017 of the Dodd-Frank Act 
provides that the CFPB financial statements are not to be consolidated 
with the financial statements of either the Board of Governors of the 
Federal Reserve or the Federal Reserve System. 

The Dodd-Frank Act authorizes the CFPB to exercise its authorities to 
ensure that, with respect to consumer financial products and services: 

a. Consumers are provided with timely and understandable information 
to make responsible decisions about financial transactions; 

b. Consumers are protected from unfair, deceptive, or abusive acts and 
practices and from discrimination; 

c. Outdated, unnecessary, or unduly burdensome regulations are 
regularly identified and addressed in order to reduce unwarranted 
regulatory burdens; 

d. Federal consumer financial law is enforced consistently in order to 
promote fair competition; and; 

e. Markets for consumer financial products and services operate 
transparently and efficiently to facilitate access and innovation. 

Under the Dodd-Frank Act, on the designated transfer date, July 21, 
2011, certain authorities and functions of several agencies relating 
to Federal consumer financial law were transferred to the CFPB in 
order to accomplish the above objectives. These authorities were 
transferred from the Board of Governors of the Federal Reserve System 
(Board of Governors), Comptroller of the Currency (OCC), Office of 
Thrift Supervision (OTS), Federal Deposit Insurance Corporation 
(FDIC), National Credit Union Administration (NCUA), and the 
Department of Housing and Urban Development (HUD). In addition, 
Congress vested the Bureau with authority to enforce in certain 
circumstances the Federal Trade Commission's (FTC) Telemarketing Sales 
Rule and its rules under the FTC Act, although the FTC retains full 
authority over these rules. The Dodd-Frank Act also provided the CFPB 
with certain other federal consumer financial regulatory authorities 
in addition to these transferred authorities. 

To accomplish its mission, the CFPB is organized into six primary 
divisions/offices: 

1. Consumer Education and Engagement: provides, through a variety of 
initiatives and methods, including offices on specific populations, 
information to consumers to allow them to make financial decisions 
that are best for them. 

2. Supervision, Enforcement and Fair Lending: ensures compliance with 
Federal consumer financial laws by supervising market participants and 
bringing enforcement actions when appropriate. 

3. Research, Markets and Regulations: conducts research to understand 
consumer financial markets and consumer behavior, evaluates whether 
there is a need for regulation, and determines the costs and benefits 
of potential or existing regulations. 

4. Legal Division: ensures the Bureau's compliance with all applicable 
laws and provides advice to the Director and the Bureau's divisions. 

5. External Affairs: manages the Bureau's relationships with external 
stakeholders and ensures that the Bureau maintains robust dialogue 
with interested stakeholders to promote understanding, transparency, 
and accountability. 

6. Operations: builds and sustains the CFPB's operational 
infrastructure to support the entire organization and hears directly 
from consumers about challenges they face in the marketplaces through 
their complaints, questions, and feedback. 

The CFPB workforce is spread across the country with its headquarters 
in Washington, D.C. and regional offices in Chicago, New York City, 
and San Francisco. The headquarters is temporarily spread across 
several locations within Washington, D.C., utilizing space pursuant to 
interagency agreements with the Department of the Treasury (Treasury), 
the Office of the Comptroller of the Currency, the General Services 
Administration (GSA) and the Federal Housing Finance Agency (FHFA). In 
addition to its locations within Washington D.C., the CFPB also 
utilizes space pursuant to occupancy agreements with GSA for the 
regional offices in New York, Chicago and San Francisco. 

Additional information on the organizational structure and 
responsibilities of CFPB is available on CFPB's website at [hyperlink, 
http://www.consumerfinance.gov/]. 

B. Basis of presentation: 

The CFPB's principal statements were prepared from its official 
financial records and general ledger in conformity with U.S. generally 
accepted accounting principles (GAAP) and, while not required to 
comply with all OMB guidance such as OMB Circular A-136, CFPB 
generally tracks the general presentation guidance established by OMB 
Circular A-136, Financial Reporting Requirements, as revised. The 
financial statements are a requirement of the Dodd-Frank Act. The 
financial statements are in addition to the financial reports prepared 
by the CFPB, which are used to monitor and control budgetary 
resources. The financial statements have been prepared to report the 
financial position, net cost of operations, changes in net position, 
the status and availability of budgetary resources, and the custodial 
activities of the CFPB. Financial statements are presented on a 
comparative basis. During fiscal year 2013, the CFPB prepared and 
issued a strategic plan that contains four strategic goals and 
associated performance metrics. The strategic plan was designed to 
meet the objectives of the Government Performance and Results Act and 
help the CFPB measure its performance in fulfilling its 
responsibilities under the Dodd-Frank Act. The comparative statement 
of net cost contains four responsibility segments based on the 
strategic plan. 

C. Basis of accounting: 

Transactions are recorded on both an accrual accounting basis and a 
budgetary basis. Under the accrual basis of accounting, revenues are 
recognized when earned, and expenses are recognized when a liability 
is incurred, without regard to receipt or payment of cash. Budgetary 
accounting facilitates compliance with legal requirements and controls 
over the use of funds. The Statement of Custodial Activity is 
presented on the modified cash basis of accounting. Cash collections 
and amounts transferred to Treasury are reported on a cash basis. The 
change in receivables is reported on an accrual basis. The CFPB 
conforms to GAAP for federal entities as prescribed by the standards 
set forth by the Federal Accounting Standards Advisory Board (FASAB). 
FASAB is recognized by the American Institute of Certified Public 
Accountants as the body designated to establish GAAP for federal 
government entities. Certain assets, liabilities and costs have been 
classified as intragovernmental throughout the financial statements 
and notes. Intragovernmental assets and liabilities are those due from 
or to other federal entities. Intragovernmental costs are payments or 
accruals due to other federal entities. The CFPB has rights and 
ownership of all assets, except for custodial assets, reported in 
these financial statements. Custodial/Non-entity assets can result 
from CFPB enforcement actions that require the defendant to pay 
disgorgement as well as from the collection of Freedom of Information 
Act fees. Disgorgement is an equitable remedy that a court or the CFPB 
can impose in a judicial or administrative action to deprive 
defendants of their ill-gotten gains and to deter violations of 
Federal consumer financial laws. In addition, as further discussed in 
Note 1.R. and Note 19, the CFPB also administers certain funds in a 
fiduciary capacity. 

D. Funding sources: 

The CFPB's funding is obtained primarily through transfers from the 
Board of Governors, interest earned on investments, and penalties and 
fees collected. The Dodd-Frank Act requires the CFPB to maintain an 
account with the Federal Reserve – the “Bureau of Consumer Financial 
Protection Fund” (Bureau Fund). The Director of the CFPB, or his 
designee, requests transfers from the Board of Governors in amounts 
necessary to carry out the authorities and operations of the Bureau. 
The Board of Governors transfers the funds into the Bureau Fund, which 
is maintained at the Federal Reserve Bank of New York (FRBNY). Bureau 
funds determined not needed to meet the current needs of the Bureau 
are invested in Treasury securities on the open market. Earnings from 
the investments are also deposited into this fund. The CFPB requests 
funds on a quarterly basis. The funds maintained at the FRBNY are 
reported in the financial statements and related notes and represent 
budget authority for CFPB. 

The CFPB funding requests for the Bureau Fund are capped as follows: 

The amount that shall be transferred to the Bureau in each fiscal year 
shall not exceed a fixed percentage of the total operating expenses 
($4.98 billion) of the Federal Reserve System, subject to an annual 
inflation adjustment, as reported in the Annual Report, 2009, of the 
Board of Governors, equal to: 

* In fiscal year 2011, up to 10 percent of these Federal Reserve 
System expenses (or approximately $498 million), 

* In fiscal year 2012, up to 11 percent of these expenses (or 
approximately $547.8 million), 

* In fiscal year 2013, up to 12 percent of these expenses (or 
approximately $597.6 million), and, 

* In fiscal year 2014 and beyond, the cap remains at 12 percent but 
will be adjusted annually based on the percentage increase in the 
employment cost index for total compensation for State and local 
government workers published by the Federal Government. 

The Dodd-Frank Act explicitly provides that Bureau funds obtained by 
or transferred to the Bureau Fund are not Government funds or 
appropriated funds. 

If the Director were to determine that the non-appropriated funds to 
which it is entitled under the Act are insufficient to carry out its 
responsibilities, the Act provided the potential for the CFPB also to 
obtain appropriated funds, up to a capped amount, in fiscal years 2011-
2014. There has been no such determination. In accordance with the Act 
and appropriations law requirements, further action would have been 
required on the part of the Director and Congress in order for CFPB to 
obtain such appropriated funds. 

The CFPB also collects filing fees from developers under the 
Interstate Land Sales Full Disclosure Act (ILSA). ILSA protects 
consumers from fraud and abuse in the sale or lease of land. On July 
21, 2011, the responsibility for administering ILSA was transferred to 
the CFPB from HUD pursuant to the Dodd-Frank Act. The Dodd-Frank Act 
requires land developers to register subdivisions of 100 or more non-
exempt lots and to provide each purchaser with a disclosure document 
called a Property Report. Developers must pay a fee when they register 
such subdivisions. While the CFPB continues to administer the 
legislation with respect to the transfer of these functions under the 
ILSA, and collect the fees, the fees are currently being deposited 
into an account maintained by Treasury. The fees collected may be 
retained and are available until expended for the purpose of covering 
all or part of the costs that the Bureau incurs for ILSA program 
operations. 

Pursuant to the Dodd-Frank Act, the CFPB is also authorized to obtain 
civil penalties for violations of Federal consumer financial laws. The 
Act requires the CFPB to maintain a separate fund, known as the 
Consumer Financial Civil Penalty Fund (Civil Penalty Fund). Civil 
penalties are deposited into the Civil Penalty Fund established and 
maintained at the FRBNY. The Act authorizes the CFPB to use the Civil 
Penalty Fund for payment to the victims of activities for which civil 
penalties have been imposed and, in certain circumstances, for 
consumer education and financial literacy programs. Amounts in the 
Civil Penalty Fund are available “without fiscal year limitation.” The 
Civil Penalty Fund had its initial collections and deposits in fiscal 
year 2012. 

The CFPB also recognizes imputed financing sources. An imputed 
financing source is recognized by the receiving entity for costs that 
are paid by other entities. The CFPB recognized imputed costs and 
financing sources in fiscal years 2014 and 2013 as prescribed by 
accounting standards. The CFPB recognizes as an imputed financing 
source the amount of pension and post-retirement benefit expenses for 
current employees that OCC and the Office of Personnel Management 
(OPM) has or will pay on the CFPB's behalf. Further, CFPB recognized 
earned revenue for reimbursable activity of CFPB staff detailed to an 
educational institution for conducting research. 

E. Use of estimates: 

The Bureau has made certain estimates and assumptions relating to the 
reporting of assets, liabilities, revenues, expenses, and the 
disclosure of contingent liabilities to prepare these financial 
statements. The estimates are based on current conditions that may 
change in the future. Actual results could differ from these 
estimates. Some of the significant transactions subject to estimates 
include costs regarding benefit plans for the CFPB employees that are 
administered by OPM, OCC and the Federal Reserve System, costs 
regarding payments to victims from the Civil Penalty Fund, and cost 
allocations among the programs on the Statement of Net Cost. 

F. Funds from dedicated collections: 

FASAB's Statement of Federal Financial Accounting Standards (SFFAS) 
No. 27 “Identifying and Reporting Earmarked Funds” established certain 
disclosure requirements for funds defined as “earmarked.” In June 
2012, FASAB issued SFFAS 43, Funds from Dedicated Collections: 
Amending Statement of Federal Financial Accounting Standards 27, 
Identifying and Reporting Earmarked Funds. SFFAS 43 amendments include 
changing the term “earmarked funds” to “funds from dedicated 
collections.” SFFAS 27, as amended by SFFAS 43, contains three 
requirements for funds to be considered funds from dedicated 
collection: (1) A statute committing the federal government to use 
specifically identified revenues and/or other financing sources that 
are originally provided to the federal government by a non-federal 
source only for designated activities, benefits or purposes; (2) 
Explicit authority for the fund to retain revenues and/or other 
financing sources not used in the current period for future use to 
finance the designated activities, benefits, or purposes; and (3) A 
requirement to account for and report on the receipt, use and 
retention of the revenues and/or other financing sources that 
distinguishes the fund from the federal government's general revenues. 

Based on the standard's criteria, CFPB has determined that the Bureau 
Fund is a fund from dedicated collections due to its meeting the three 
required criteria – source of funds are from a non-federal source, 
explicit authority to retain funds for future use, and a requirement 
to account for and report on the funds receipt, use and retention 
separate from the federal government's general revenues. Further, the 
CFPB has determined based on the criteria of SFFAS 27 & 43 that the 
Civil Penalty Fund is also a fund from dedicated collections and has 
established a separate special fund to account for its activity. These 
funds, which also qualify as special funds, are discussed further in 
Note 1.H. below. SFFAS 43 is effective for fiscal year 2013 reporting 
beginning on October 1, 2012. Accordingly, the CFPB's comparative 
statements for fiscal years 2014 and 2013 are displayed consistent 
with the reporting requirements of SFFAS 27 & 43. See additional 
disclosure in Note 17 “Funds from Dedicated Collections.” 

G. Entity and non-entity assets: 

Entity assets are assets that the CFPB may use in its operations. This 
includes amounts where the CFPB management has the authority to decide 
how funds will be used. Non-Entity Assets are those assets that an 
agency holds on behalf of another Federal agency or on behalf of a 
third party and are not available for the agency's use. The CFPB's non-
entity assets include cash from disgorgement payments made by 
defendants and collections from Freedom of Information Act fees as 
recorded in the Statement of Custodial Activity. 

H. Fund balance with Treasury: 

The U.S. Treasury holds funds in the Treasury General Account for CFPB 
which are available to pay agency liabilities and to finance 
authorized purchase obligations. Treasury processes cash receipts, 
such as fees collected from the ILSA program, and makes disbursements 
on CFPB's behalf. As discussed in Note 1.D. above, CFPB also maintains 
an account with the FRBNY known as the Bureau Fund. During the year, 
increases to the Bureau Fund are generally comprised of fund transfers 
from the Board of Governors and investment interest. These funds are 
available for transfer to CFPB's Fund Balance with Treasury. Also, as 
discussed above in Note 1.D., CFPB maintains an additional account at 
the FRBNY for the Civil Penalty Fund. These funds are also available 
for transfer to CFPB's Fund Balance with Treasury under a separate 
fund symbol from the Bureau Fund. CFPB's Fund Balance with Treasury 
for the activity described above is maintained in special funds. A 
special fund is established where the law requires collections to be 
used for a specific purpose, and the law neither authorizes the fund 
to conduct a cycle of business-type operations (making it a revolving 
fund) nor designates it as a trust fund. 

CFPB also receives custodial revenues and fiduciary activity that are 
maintained in the Miscellaneous Receipts Fund of the U.S. Treasury, 
and a deposit fund respectively. The Miscellaneous Receipts fund holds 
non-entity receipts from custodial collections that the CFPB cannot 
deposit into funds under its control. This fund includes disgorgement 
deposits and any other miscellaneous funds collected (i.e., FOIA fees) 
that will be sent to the U.S. Treasury General Fund upon collection. 
Enforcement activity can result in CFPB receiving redress funds that 
are maintained in a deposit fund. Redress funds are held in a 
fiduciary capacity until CFPB can make payment directly to the harmed 
individuals or entities. 

I. Investments: 

CFPB has the authority to invest the funds in the Bureau Fund account 
that are not required to meet the current needs of the Bureau. CFPB 
invests solely in U.S. Treasury securities purchased at a discount on 
the open market, which are normally held to maturity and carried at 
cost. CFPB selects investments with maturities suitable to its needs, 
currently three-month Treasury bills. Investments are adjusted for 
discounts. In accordance with GAAP, CFPB records the value of its 
investments in U.S. Treasury securities at cost and amortizes the 
discount on a straight-line basis over the term of the respective 
issues. Results under the straight line method approximate results 
under the interest method. Interest is credited to the Bureau Fund. 

J. Accounts receivable: 

Accounts receivable consists of amounts owed to CFPB by the public. An 
allowance for uncollectible accounts receivable from the public is 
established when either (1) management determines that collection is 
unlikely to occur after a review of outstanding accounts and the 
failure of all collection efforts, or (2) an account for which no 
allowance has been established is submitted to Treasury for 
collection, which generally takes place when it becomes 120 days 
delinquent. 

K. Property, Equipment, and Software, Net: 

Property, Equipment, and Software is recorded at historical cost. It 
consists of tangible assets and software. Under CFPB's property 
management policy, equipment acquisitions of $50,000 or more are 
capitalized and depreciated using the straight-line method (using a 
half year convention for the year assets are placed into service) over 
the estimated useful life of the asset. Similarly, internal use 
software, software purchased or developed to facilitate the operation 
of an entity's programs, is capitalized for software of $750,000 or 
more and depreciated using the straight-line method (using a half year 
convention) over the estimated useful life of the asset. Additionally, 
for bulk purchases of similar items, which individually do not meet 
the capitalization threshold, the acquisition is capitalized and 
depreciated if the depreciated basis of the bulk purchase is $250,000 
or more. Applicable standard governmental guidelines regulate the 
disposal and convertibility of agency property and equipment. 

The useful life classifications for capitalized assets are as follows: 

PP&E Category: Laptop/Desktop Computers; 
Useful Lives (years): 3. 

PP&E Category: Internal Use Software; 
Useful Lives (years): 5. 

PP&E Category: Mainframe Computer System; 
Useful Lives (years): 7. 

PP&E Category: Servers; 
Useful Lives (years): 7. 

PP&E Category: Telecommunications Equipment; 
Useful Lives (years): 7. 

PP&E Category: Furniture; 
Useful Lives (years): 8. 

PP&E Category: Other Equipment; 
Useful Lives (years): 10. 

[End of table] 

A leasehold (capital) improvement's useful life is equal to the 
remaining occupancy agreement term or the estimated useful life of the 
improvement, whichever is shorter. CFPB has no real property holdings 
or stewardship or heritage assets. Other property items, normal 
repairs, and maintenance are charged to expense as incurred. 

L. Advances and Prepaid Charges: 

Advances and prepayments may occur as a result of reimbursable 
agreements, subscriptions, payments to contractors and employees, and 
payments to entities administering benefit programs for CFPB 
employees. Payments made in advance of the receipt of goods and 
services are recorded as advances or prepaid charges at the time of 
prepayment and recognized as expenses when the related goods and 
services are received. 

M. Liabilities: 

Liabilities represent the amount of monies likely to be paid by CFPB 
as a result of transactions or events that have already occurred. 
Liabilities may be intragovernmental (claims against the CFPB by other 
Federal agencies) or with the public (claims against CFPB by an entity 
or person that is not a Federal agency). However, no liability can be 
paid if there is no funding. Liabilities for which funds are not 
available, therefore, are classified as not covered by budgetary 
resources. There is no certainty that the funding will be received. 
Additionally, the Government, acting in its sovereign capacity, can 
abrogate liabilities. Liabilities not covered by budgetary resources 
on the Balance Sheet are equivalent to amounts reported as components 
not requiring or generating resources on the Reconciliation of Net 
Cost to Budget. 

Civil Penalty Fund: 

The CFPB has determined that for the funds collected and deposited 
into the Civil Penalty Fund (CPF), victims do not have ownership 
rights to those funds that the Federal government must uphold. 
Accordingly, until CFPB decides to allocate CPF monies to classes of 
victims, no liabilities exist. The estimated amount of the liabilities 
of the Civil Penalty Fund will be recorded based on the results of the 
defined allocation process. The measurement of the liability will be 
based on the amount allocated by the Fund Administrator via the Civil 
Penalty Fund allocation process. The amount allocated by the Fund 
Administrator may differ from the amount of uncompensated harm 
initially estimated based on the court order, settlement agreement, or 
documentation provided by the Office of Enforcement. The allocated 
amount may differ based on additional research and documentation 
obtained after the initial estimate was calculated. 

N. Annual, Sick, and Other Leave: 

Annual leave, compensatory time, and credit hours earned by the Bureau'
s employees, but not yet used, are reported as accrued liabilities. 
The accrued balance is adjusted annually to current pay rates. The 
accrued leave, for which funding is not available, is recorded as an 
unfunded liability. Sick and other leave are expensed as taken. 

O. Employee Benefits: 

CFPB employees can elect to enroll in various benefit programs – 
medical, vision, dental, long-term disability, life insurance, etc. 

Benefits For Employees Transferred Pursuant To The Dodd-Frank Act: 

The Dodd-Frank Act provided employees transferred from other agencies 
(Board of Governors, Federal Reserve Banks, OCC, OTS, FDIC, NCUA, and 
HUD) with the ability to continue participation in the transferring 
agency or bank's non-Title 5 benefit programs for one year from the 
CFPB transfer date of July 21, 2011. The transferring agencies 
continued to administer the non-Title 5 benefit programs for those 
transferred employees continuing participation in the transferring 
agencies' plans for the one-year period. Upon conclusion of the one-
year period, the employees had the opportunity to enroll in Title 5 
benefit programs and/or in non-Title 5 benefit programs sponsored by 
CFPB. Title 5 of the U.S. Code outlines benefit programs for the 
majority of the Federal workforce, which are typically administered by 
OPM. For those employees participating in the transferring agencies' 
programs, CFPB reimbursed the transferring agencies for the employer's 
contribution to the programs. CFPB also has reimbursed the 
transferring agencies for administrative costs pursuant to memoranda 
of understanding with the transferring agencies. These costs are 
reflected as expenses in CFPB's financial statements. 

Benefits For Employees Not Transferred Pursuant To The Dodd-Frank Act: 

Employees not transferred to the Bureau pursuant to the Dodd-Frank Act 
may enroll in some benefit programs administered by OPM and also have 
the option to enroll in non-Title 5 benefit programs sponsored by CFPB 
in addition to, or in lieu of, OPM programs. For those employees 
participating in OPM's benefit programs, CFPB records the employer's 
contribution to those programs. For those employees participating in 
CFPB's non-Title 5 benefit programs, CFPB directly contracts with 
vendors to provide those services. The Bureau recognizes the 
employer's contributions for these benefits as the benefits are 
earned. All of these costs are reflected as expenses in CFPB's 
financial statements. 

P. Pension costs and other retirement benefits: 

CFPB employees are enrolled in several retirement and pension programs 
and post-employment benefits in accordance with the Dodd-Frank Act. 

Employees Transferred From The Federal Reserve, OCC, OTS, FDIC, and 
HUD: 

The Dodd-Frank Act allowed employees transferred from OCC, OTS, FDIC, 
and HUD to continue participating in the pension or retirement plans 
in which they were enrolled at their transferring agency or to 
affirmatively elect, between January 21, 2012 and January 20, 2013, to 
join the Federal Reserve System Retirement Plan and the Federal 
Reserve System Thrift Plan. Many transferee employees from these 
agencies are in the traditional Title 5 retirement plans (Federal 
Employees Retirement System (FERS), Civil Service Retirement System 
(CSRS), or CSRS Offset); however, a few transferees from OTS are in a 
non-Title 5 plan (i.e., Pentegra Defined Benefit Plan). Transferees 
from the Federal Reserve were allowed to remain in the Federal Reserve 
System retirement program or to affirmatively elect into the 
appropriate Title 5 retirement plan during that same timeframe. For 
those employees who elected to enroll in an alternative retirement 
plan, the enrollment became effective in January 2013. 

CFPB does not report on its financial statements information 
pertaining to the retirement plans covering its employees. Reporting 
amounts such as plan assets, accumulated plan benefits, and related 
unfunded liabilities, if any, is the responsibility of the Federal 
Reserve System, OCC, or OPM as the administrator of their respective 
plans. In all cases, CFPB pays any employer contributions required by 
the plans. Refer to the chart below for information on which agency 
administers each of the retirement plans for CFPB employees. 

OCC, OTS, and FDIC also offered other agency-only savings plans to 
employees. Any transferees who participated in such plans are allowed 
to continue their participation as long as they remain enrolled in 
their current retirement plans. In such cases, CFPB pays any employer 
contributions. Employees who elect to enroll in the Federal Reserve 
System retirement plan will not be allowed to continue their 
participation in either the Title 5 Thrift Savings Plan or the OCC, 
OTS, and FDIC agency savings plans. 

CFPB has also reimbursed the transferring agencies for administrative 
costs pursuant to memoranda of understanding with the transferring 
agencies. These costs are reflected as expenses in CFPB's financial 
statements. 

All Other Employees Of CFPB: 

Employees hired with prior Title 5 Federal Retirement System coverage 
who are not transferees under the Dodd Frank Act may remain enrolled 
in the appropriate retirement programs administered by OPM – CSRS, 
CSRS Offset, or FERS. These employees alternatively have the option to 
enroll in the Federal Reserve System retirement plans. CFPB began 
providing these new employees the opportunity to enroll in the Federal 
Reserve retirement system plans beginning in November 2011. For those 
employees electing to enroll in the Federal Reserve System's 
retirement plans, the enrollment becomes effective at the beginning of 
the pay period following receipt of their written election decision. 
New employees with no previous coverage under a Title 5 retirement 
plan are automatically enrolled in the Federal Reserve System's 
retirement plans. CFPB pays the employer's contribution into those 
plans. 

Table 28: Pension/retirement Plans For CFPB Employees: 

Name: Federal Reserve System Retirement Plan (FRSRP); 
Administering Agency: Federal Reserve System. 

Name: Federal Reserve System Thrift Plan; 
Administering Agency: Federal Reserve System. 

Name: Pension Enhancement Plan for Officers of the Board of Governors 
of the Federal Reserve System; 
Administering Agency: Federal Reserve System. 

Name: Retirement Plan for Employees of the Federal Reserve System 
Benefits Equalization Plan[A];
Administering Agency: Federal Reserve System. 

Name: Retirement Plan for Employees of the Federal Reserve System 
Benefits Equalization Plan for Section 415 Excess Benefits; 
Administering Agency: Federal Reserve System. 

Name: Thrift Plan for Employees of the Federal Reserve System Benefits 
Equalization Plan[A];
Administering Agency: Federal Reserve System. 

Name: Civil Service Retirement System (CSRS); 
Administering Agency: OPM. 

Name: CSRS Offset; 
Administering Agency: OPM. 

Name: Federal Employees Retirement System (FERS); 
Administering Agency: OPM. 

Name: Thrift Savings Plan; 
Administering Agency: Federal Retirement Thrift Investment Board 

Name: FDIC Savings Plan; 
Administering Agency: FDIC. 

Name: OCC 401(k); 
Administering Agency: OCC. 

Name: OTS 401(k); 
Administering Agency: OCC. 

Name: OTS Deferred Compensation Plan; 
Administering Agency: OCC. 

Name: Pentegra Defined Benefit Plan (OTS); 
Administering Agency: OCC (administration is through Pentegra). 

[A] This retirement program does not have any CFPB participants for 
fiscal years 2013 or 2014. 

[End of table] 

The Bureau does not have a separate pension or retirement plan 
distinct from the plans described above. CFPB expenses its 
contributions to the retirement plans of covered employees as the 
expenses are incurred. CFPB reported imputed costs (not paid by CFPB) 
with respect to retirement plans (OPM-administered), health benefits 
and life insurance (for employees retiring under Title 5 retirement 
plans; OPM-administered) pursuant to guidance received from OPM. These 
costs are paid by OPM. Disclosure is intended to provide information 
regarding the full cost of CFPB's program in conformity with GAAP. 
CFPB, however, records expenses for the post-retirement health 
benefits (i.e., health benefits also OPM-administered) for those 
employees retiring under the Federal Reserve System retirement plans. 
These costs are not imputed costs with OPM. The associated liabilities 
for these post-retirement health benefits are incorporated as part of 
the line item on the Balance Sheet for Benefits Payable. 

The Bureau recognizes the employer's contributions for the retirement 
plans administered by the Federal Reserve. The Bureau is responsible 
for transferring to the Federal Reserve both the employer's 
contributions and the employee's contributions that the Bureau has 
collected from employees. Under section 1013(a)(3)(C) of the Dodd-
Frank Act, CFPB is required to pay an employer contribution to the 
FRSRP in an amount established by the employer contribution under the 
Federal Employees Retirement System – currently 11.9 percent of 
salary. For fiscal years 2014 and 2013 those amounts were $16.9 and 
$13.1 million, respectively. 

Consistent with the disclosures in the financial statements of the 
Board of Governors of the Federal Reserve System, the FRSRP provides 
retirement benefits to employees of the Board, the Reserve Banks and 
certain employees of the CFPB. The FRBNY, on behalf of the Federal 
Reserve System, recognizes the net assets and costs associated with 
the System Plan in its financial statements. Consistent with 
provisions of a single-employer plan, costs associated with the System 
Plan are aggregated by the FRBNY on behalf of the Federal Reserve 
Systems and were not redistributed to individual entities (e.g., 
CFPB). Accordingly, the CFPB cannot report the full cost of the plan 
benefits applicable to CFPB employees. Please see the Federal Reserve 
Banks Combined Financial Statements for the net assets and costs 
associated with the System Plan [hyperlink, 
http://www.federalreserve.gov/publications/annual-report/files/2013-
annual-report.pdf]. 

Q. Commitments and Contingencies: 

A commitment is a preliminary action that reserves available funds 
until an obligation is made which will result in a legal liability of 
the U.S. government. Examples of a commitment include purchase 
requisitions or unsigned contracts. All open commitments at year end 
are closed out and new commitments (requisitions) need to be recorded 
in the next fiscal year. Accordingly, no open commitments exist at 
year end to report in the either the financial statements or notes. 

Liabilities are deemed contingent when the existence or amount of the 
liability cannot be determined with certainty pending the outcome of 
future events. Contingencies are recognized on the balance sheet and 
statement of net cost when the liability is probable and can be 
reasonably estimated. Contingencies are disclosed in the notes to the 
financial statements when there is a reasonable possibility of a loss 
from the outcome of future events or when there is a probable loss 
that cannot be reasonably estimated. See Note 10 for additional 
information. 

R. Fiduciary activities: 

The Dodd-Frank Act, section 1055 authorizes the court in a judicial 
action or the CFPB in an administrative proceeding to grant any 
appropriate legal or equitable relief for a violation of Federal 
consumer financial law. Such relief may include redress for victims of 
the violations, including refunds, restitution, and damages. Relief 
that is intended to compensate victims is treated as fiduciary funds 
and deposited into the “Legal or Equitable Relief Fund” established at 
the Department of the Treasury. Fiduciary assets are not assets of the 
CFPB and are not recognized on the balance sheet. See Note 19, 
Fiduciary Activities. 

S. Custodial activities: 

Under section 1055 of the Dodd-Frank Act, the CFPB may obtain 
disgorgement for violations of Federal consumer law. Disgorgement paid 
by the defendant is treated by CFPB as a custodial activity. CFPB will 
report those disgorged deposits and any other miscellaneous funds 
collected (i.e., FOIA fees) on the Statement of Custodial Activity. 

Note 2: Fund balance with Treasury: 

Fund Balance with Treasury account balances as of September 30, 2014 
and September 30, 2013 were as follows: 

Fund Balances: 

Special Fund: 
2014: $39,658,201; 
2013: $26,764,046. 

Total: 
2014: $39,658,201; 
2013: $26,764,046. 

Status of Fund Balance with Treasury: 

Unobligated Balance, Available: 
2014: $296,906,439; 
2013: $169,931,592. 

Obligated Balance Not Yet Disbursed: 
2014: $334,795,052; 
2013: $282,450,772. 

Investments at Cost: 
2014: ($434,776,402); 
2013: ($343,773,005). 

Cash Held Outside of Treasury (See Note 4); 
2014: ($157,266,879); 
2013: ($81,845,313). 

Total: 
2014: $39,658,210; 
2013: $26,764,046. 

[End of table] 

Unobligated Balance Available represents the amount of budget 
authority that can be used to enter into new obligations. This amount, 
or a portion thereof, may be administratively dedicated for specific 
purposes that have not yet been obligated. The Obligated Balance Not 
Yet Disbursed represents amounts designated for payment of goods and 
services ordered but not received or goods and services received but 
for which payment has not yet been made. 

Note 3: Investments: 

As discussed further in Note 4, at the direction of the CFPB, the 
FRBNY invests the portion of the Bureau Fund that is not required to 
meet the current needs of the Bureau. When directed by CFPB, the FRBNY 
will utilize the funds available to purchase investments on the open 
market. At this time, CFPB only invests in three month U.S. Treasury 
bills. The market value is determined by the secondary U.S. Treasury 
market and represents the value an individual investor is willing to 
pay for these securities, as of September 30, 2014 and September 30, 
2013. 

Investments as of September 30, 2014 consist of the following: 

Intragovernmental Securities: Marketable: 
Cost: $434,776,402; 
Amortization Method: Straight-Line; 
Amortized Discount: $17,071; 
Investments Net: $434,793,473; 
Market Value Disclosure: $434,794,302. 

Total: 
Cost: $434,776,402; 
Amortized Discount: $17,071; 
Investments Net: $434,793,473; 
Market Value Disclosure: $434,794,302. 

Investments as of September 30, 2013 consist of the following: 

Intragovernmental Securities: Marketable: 
Cost: $343,773,005; 
Amortization Method: Straight-Line; 
Amortized Discount: $24,081; 
Investments Net: $343,797,086; 
Market Value Disclosure: $343,797,757. 

Total: 
Cost: $343,773,005; 
Amortized Discount: $24,081; 
Investments Net: $343,797,086; 
Market Value Disclosure: $343,797,757. 

[End of table] 

Note 4: Cash and other monetary assets: 

CFPB has both cash and investments held outside of Treasury. When 
transfers are made from the Board of Governors to CFPB, the funds are 
deposited into an account held within the FRBNY referred to as the 
Bureau Fund. The account has a required minimum balance of $250,000 
and any funds in excess of this minimum are invested in Treasury 
securities in increments of $100,000 by the FRBNY utilizing an 
automatic investment process based on direction from CFPB. CFPB 
requests cash disbursement from the Bureau Fund to the CFPB's Fund 
Balance with Treasury based on projections of future cash outlays. 

Funds obtained by, transferred to, or credited to the Bureau Fund are 
immediately available to CFPB and under the control of the Director, 
and shall remain available until expended, to pay for the expenses of 
the Bureau in carrying out its duties and responsibilities. Any civil 
penalty obtained from any person in any judicial or administrative 
action under Federal consumer financial laws is deposited into the 
Civil Penalty Fund. Amounts in the Civil Penalty Fund are immediately 
available to CFPB and under the control of the Director, and shall 
remain available until expended, for payments to victims of activities 
for which civil penalties have been imposed. To the extent that such 
victims cannot be located or such payments are otherwise not 
practicable, the Bureau may use funds in the Civil Penalty Fund for 
the purpose of consumer education and financial literacy programs. 

In enforcement actions and proceedings under Federal consumer 
financial laws, a court or the CFPB may order any appropriate legal or 
equitable relief for a violation of Federal consumer financial law. 
Relief provided may include certain types of monetary relief, 
including refunds, restitution, disgorgement, and civil penalties. The 
CFPB deposits civil penalties it obtains in these judicial and 
administrative actions into the Civil Penalty Fund. The CFPB makes 
biannual allocations from the Civil Penalty Fund. As of September 30, 
2014, the cash balance in the Civil Penalty Fund was $157 million. 
During FY 2014 and FY 2013, the CFPB had allocated a total of $31.3 
million in compensable harm to victims, $13.4 million for consumer 
education and financial literacy programs, and $1.6 million in 
administrative costs. Victim compensation0f $30.3 million (net of $ 1 
million of distributions in FY 2014) is reported as a liability and 
displayed as “Civil Penalty Fund Allocation” on the balance sheet as 
of September 30, 2014. No distributions were made from the Civil 
Penalty Fund in FY 2013. 

Funds obtained by or transferred to the Bureau Fund shall not be 
construed to be Government funds or appropriated monies. Funds in the 
Bureau Fund and the Civil Penalty Fund are not subject to 
apportionment for purposes of chapter 15 Title 31, United States Code, 
or under any other authority. 

Account balances as of September 30, 2014 and September 30, 2013: 

Cash: 

Cash Held in the Bureau Fund at the Federal Reserve: 
2014: $265,163; 
2013: $325,312. 

Cash Held in the Civil Penalty Fund at the Federal Reserve: 
2014: $157,001,716; 
2013: $81,520,001. 

Total Cash and Other Monetary Assets: 
2014: $157,266,879; 
2013: $81,845,313. 

[End of table] 

Note 5: Accounts receivable: 

Accounts receivable represents amounts owed to the CFPB by the Public. 
Account balances as of September 30, 2014 and September 30, 2013: 

Accounts Receivable: 

Bureau Fund: 
2014: $155,575; 
2013: $45,692. 

Civil Penalty Fund: 
2014: $15,200,000; 
2013: [Empty]. 

Custodial Funds: 
2014: $7,807; 
2013: $9,191. 

Total Accounts Receivable: 
2014: $15,363,382; 
2013: $54,883. 

[End of table] 

Note 6: Property, equipment and software, net 

Schedule of Property, Equipment, and Software as of September 30, 2014 
consist of the following: 

Schedule of Property, Equipment, and Software as of September 30, 2013 
consist of the following: 

Major Class: Furniture & Equipment; 
Acquisition Cost: $15,432,387;
Accumulated Amortization/Depreciation: $3,971,039;
Net Book Value: $11,461,348. 

Major Class: Internal Use Software; 
Acquisition Cost: $17,226,280;
Accumulated Amortization/Depreciation: $4,823,716; 
Net Book Value: $12,402,564. 

Major Class: Leashold (Capital) Improvement-in-Development; 
Acquisition Cost: $9,562,227; 
Accumulated Amortization/Depreciation: N/A; 
Net Book Value: $9,562,227. 

Major Class: Software-in-Development; 
Acquisition Cost: $4,071,459; 
Accumulated Amortization/Depreciation: N/A; 
Net Book Value: $4,071,459. 

Major Class: Total; 
Acquisition Cost: $46,291; 
Accumulated Amortization/Depreciation: $8,794,755; 
Net Book Value: $37,496,598. 

Schedule of Property, Equipment, and Software as of September 30, 2013 
consist of the following: 

Major Class: Furniture & Equipment; 
Acquisition Cost: $8,320,022;
Accumulated Amortization/Depreciation: $2,485,208;
Net Book Value: $5,834,814. 

Major Class: Internal Use Software; 
Acquisition Cost: $12,576,978;
Accumulated Amortization/Depreciation: $1,834,265; 
Net Book Value: $10,742,713. 

Major Class: Leashold (Capital) Improvement-in-Development; 
Acquisition Cost: $6,075,513; 
Accumulated Amortization/Depreciation: N/A; 
Net Book Value: $6,075,513. 

Major Class: Software-in-Development; 
Acquisition Cost: $5,031,437; 
Accumulated Amortization/Depreciation: N/A; 
Net Book Value: $5,031,437. 

Major Class: Total; 
Acquisition Cost: $32,003,950; 
Accumulated Amortization/Depreciation: $4,319,473; 
Net Book Value: $27,684,477. 

[End of table] 

Note 7: Advances & prepayments: 

Advances and Prepayment balances as of September 30, 2014 and 
September 30, 2013 were as follows: 

Intragovernmental: Advances and Prepayments: 
2014: $2,900,006; 
2013: $4,993,642. 

Total Intragovernmental: Advances and Prepayments: 
2014: $$2,900,006; 
2013: $4,993,642. 

With the Public: Advances and Prepayments: 
2014: $2,706; 
2013: $749,699. 

Total Public Advances and Prepayments: 
2014: $$2,706; 
2013: $749,699. 

[End of table] 

The intragovernmental advance and prepayment balance is primarily 
comprised of $1.9 million for FY 2014 represents prepayments made to 
the Board of Governors for the Office of Inspector General services on 
a calendar year basis and represents funds needed for the period 
October 1 through December 31, 2014. The intragovernmental advance 
balance of $5 million for FY 2013 represents funds advanced and 
prepaid to the Department of the Treasury for services provided by the 
working capital fund and funds advanced to FHFA for the development & 
maintenance of a joint National Mortgage Database. Other advances and 
prepayments include subscriptions and other miscellaneous items. 

Note 8: Other liabilities: 

Other liabilities as of September 30, 2014 and September 30, 2013 
consist of the following: 

FECA Liabilities: 
2014: $162,816; 
2013: $46,110. 

Payroll Taxes Payable: 
2014: $271,377; 
2013: $215,510. 

Custodial Liability: 
2014: $7,807; 
2013: $9,191. 

Total Intragovernmental Liabilities: 
2014: $442,000; 
2013: $270,811. 

With the Public: 

Employee Withholdings: 
2014: $14,171; 
2013: $864. 

Other: 
2014: $1; 
2013: [Empty]. 

Total Public Liabilities: 
2014: $14,172; 
2013: $864. 

All other liabilities are considered current liabilities. 

[End of table] 

Note 9: Liabilities not covered by budgetary resources: 

Liabilities not covered by budgetary resources as of September 30, 
2014 and September 30, 2013 consist of the following: 

Intragovernmental: 

FECA: 
2014: $162,816; 
2013: $46,110. 

Other Liabilities: 
2014: $11,669,945; 
2013: $6,097,058. 

With the Public: 

Unfunded Leave: 
2014: $16,400,954; 
2013: $11,939,809. 

Actuarial FECA: 
2014: $1,179,641; 
2013: [Empty]. 

Total Liabilities Not Covered by Budgetary Resources: 
2014: $29,413,356; 
2013: $18,082,977. 

Total Liabilities Covered by Budgetary Resources: 
2014: $120,007,024; 
2013: $60,496,884. 

Total Liabilities: 
2014: $149,420,380; 
2013: $78,579,861. 

[End of table] 

As described in Note 1.O., other liabilities include costs for post-
retirement benefits for CFPB employees retiring under the Federal 
Reserve retirement plans. 

Note 10: Commitments and contingencies: 

CFPB is responsible for reimbursing the Federal Reserve Retirement 
Plan for certain costs related to employees, transferred to CFPB under 
Section 1064 of the Dodd Frank Act, that enroll in the Plan. A 
memorandum of understanding between the Board of Governors and the 
Bureau established that the Board of Governors would provide the 
Bureau a final cost estimate for this payment by September 30, 2014. 
CFPB has not yet received that estimate as of November 10, 2014. 

The Civil Penalty Fund Administrator made the third allocation from 
the Civil Penalty Fund on May 30, 2014. At that time, the Fund 
Administrator determined that there were five cases with classes of 
victims who are eligible for payment from the Civil Penalty Fund but 
whose uncompensated harm cannot be estimated at this time. The Fund 
Administrator will make the fourth allocation from the Civil Penalty 
Fund on November 29, 2014. At that time, there will be 18 cases 
considered for allocation and the total amount available for 
allocation is $112.8 million. As of September 30, 2014, no amounts 
were accrued in the financial statements for these cases as the future 
outflows of resources do not meet the definition of probable and 
estimable. 

Note 11: Intragovernmental costs and exchange revenue: 

Intragovernmental costs represent goods and services provided between 
two reporting entities within the Federal government, and are in 
contrast to those with non-federal entities (the public). Earned 
exchanged revenue with the public results from transactions between 
the Federal government and a non-Federal entity. 

Such costs and earned revenues for fiscal years 2014 and 2013 are 
summarized as follows: 

Intragovernmental Costs; 
2014: $55,377,866; 
2013: $35,736,563. 

Public Costs;
2014: $173,000,661; 
2013: $130,384,278. 

Total Program Costs;
2014: $228,378,527; 
2013: $166,120,841. 

Net Prevent Financial Harm to Consumers While Promoting Good Practices 
That Benefit Them Cost;
2014: $228,378,527; 
2013: $166,120,841. 

Empower Consumers to Live Better Financial Lives: 

Intragovernmental Costs;
2014: $24,422,060; 
2013: $15,256,926. 

Public Costs;
2014: $76,294,606; 
2013: $55,664,649. 

Total Program Costs;
2014: $100,716,666; 
2013: $70,921,575. 

Net Empower Consumers to Live Better Financial Lives Cost;
2014: $100,716,666; 
2013: $70,921,575. 

Inform The Public, Policy Makers, and the CFPB's own Policy-Making 
with Data-Driven Analysis of Consumer Finance Markets and Consumer 
Behavior: 

Intragovernmental Costs; 
2014: $11,096,950; 
2013: $9,281,517. 

Public Costs;
2014: $34,666,914; 
2013: $33,863,466. 

Total Program Costs;
2014: $45,763,864; 
2013: $43,144,983. 

Less: Public Earned Revenue;
2014: ($80,000); 
2013: [Empty]. 

Net Inform The Public, Policy Makers, and the CFPB's own Policy-Making 
with Data-Driven Analysis of Consumer Finance Markets and Consumer 
Behavior Cost;
2014: $45,683,864; 
2013: $43,144,983. 

Advance the CFPB's Performance by Maximizing Resource Productivity & 
Enhancing Impact: 

Intragovernmental Costs;
2014: $25,861,445; 
2013: $23,908,320. 

Public Costs;
2014: $96,913,246; 
2013: $87,229,123. 

Total Program Costs;
2014: $122,774,691; 
2013: $111,137,443. 

Net Advance the CFPB's Performance by Maximizing Resource Productivity 
& Enhancing Impact Cost;
2014: $$122,774,691; 
2013: $111,137,443. 

Total Intragovernmental Costs;
2014: $116,758,321; 
2013: $84,183,326. 

Total Public Costs;
2014: $380,874,427; 
2013: $307,141,516. 

Total Program Costs;
2014: $497,63,748; 
2013: $391,324,842. 

Less: Total Public Earned Revenue;
2014: ($80,000); 
2013: [Empty]. 

Total Program Net Cost;
2014: $497,553,748; 
2013: $391,324,842. 

[End of table] 

Note 12: Apportionment categories of obligations incurred: 

All obligations incurred are characterized as Category E, Exempt from 
apportionment (i.e., not apportioned), on the Statement of Budgetary 
Resources. Obligations incurred and reported in the Statement of 
Budgetary Resources in fiscal years 2014 and 2013 consisted of the 
following: 

Direct Obligations, Category C: 
2014: $499,732,046; 
2013: $538,759,116. 

Reimbursable Obligations, Category E: 
2014: ($80,000); 
2013: [Empty]. 

Total Obligations Incurred: 
2014: $499,812,046; 
2013: $538,759,116. 

[End of table] 

Note 13: Undelivered orders at the end of the period: 

SFFAS 7, Accounting for Revenue and Other Financing Sources and 
Concepts for Reconciling Budgetary and Financial Accounting, states 
that the amount of budgetary resources obligated for undelivered 
orders at the end of the period should be disclosed. CFPB's 
Undelivered Orders represent obligated amounts designated for future 
payment of goods and services ordered but not received. 

Undelivered Orders as of September 30, 2014 and September 30, 2013 
were as follows: 

Total Undelivered Orders at the End of the Period: 
2014: $245,130,881; 
2013: $235,009,127. 

[End of table] 

Note 14: Reconciliation of net cost to budget: 

CFPB has reconciled its budgetary obligations and non-budgetary 
resources available to its net cost of operations for the periods 
ended September 30, 2014 and September 30, 2013. 

CFPB has reconciled its budgetary obligations and non-budgetary 
resources available to its net cost of operations for the periods 
ended September 30, 2013 and September 30, 2012. 

Consumer Financial Protection Bureau: 
Reconciliation Of Net Cost Of Operations To Budget: 
For the Fiscal Years Ended September 30, 2014 and 2013: 

Resources Used to Finance Activities: 

Budgetary Resources Obligated, Obligations Incurred: 
2014: $499,812,046; 
2013: $538,759,116. 

Less: Spending Authority From Offsetting Collections and Recoveries: 
2014: ($15,192,045); 
2013: ($8,834,619). 

Net Obligations: 
2014: $484,620,001; 
2013: $529,924,497. 

Other Resources: 

Imputed Financing From Costs Absorbed By Others: 
2014: $1,517,498; 
2013: $1,848,849. 

Total Resources Used to Finance Activities: 
2014: $486,137,499; 
2013: $531,773,346. 

Resources Used to Finance Items Not Part of the Net Cost of 
Operations: 

Change In Budgetary Resources Obligated For Goods, Services and 
Benefits Ordered But Not Yet Provided: 
2014: ($7,281,125); 
2013: ($139,842,104). 

Resources That Finance the Acquisition of Assets: 
2014: ($13,536,261); 
2013: ($24,335,242). 

Total Resources Used to Finance Items Not Part of Net Cost of 
Operations: 
2014: ($20,817,386); 
2013: ($164,177,346). 

Total Resources Used to Finance the Net Cost of Operations: 
2014: $465,320,113; 
2013: $367,596,000. 

Components of the Net Cost of Operations That Will Not Require or 
Generate Resources in the Current Period: 

Components Requiring or Generating Resources in Future Periods 
Increase In Annual Leave Liability: 
2014: $4,461,145; 
2013: $4,172,585. 

Civil Penalty Fund Allocation: 
2014: $17,288,556; 
2013: $13,046,046. 

Increase In Post Retirement Health Benefits: 
2014: $5,572,887; 
2013: $4,020,389. 

Other: 
2014: $1,296,347; 
2013: $45,690. 

Total Components of Net Cost of Operations That Will Require or 
Generate Resources In The Current Period: 
2014: $28,618,935; 
2013: $21,284,710. 

Components Not Requiring or Generating Resources: 

Depreciation and Amortization: 
2014: $4,475,283; 
2013: $2,470,726. 

Other: 
2014: ($751,143); 
2013: ($26,594). 

Total Components of Net Cost of Operations That Will Not Require or 
Generate Resources: 
2014: $3,614,700; 
2013: $2,444,132. 

Total Components of Net Cost of Operations That Will Not Require or 
Generate Resources In The Current Period: 
2014: $32,233,635; 
2013: $23,728,842. 

Net Cost of Operations: 
2014: $497,553,748; 
2013: $391,324,842. 

[End of table] 

Note 15: President's Budget: 

Statement of Federal Financial Accounting Standards 7, Accounting for 
Revenue and Other Financing Sources and Concepts for Reconciling 
Budgetary and Financial Accounting, requires explanations of material 
differences between amounts reported in the Statement of Budgetary 
Resources and the actual balances published in the Budget of the 
United States Government (President's Budget). However, the 
President's Budget that will include fiscal year 2014 actual budgetary 
execution information has not yet been published. The President's 
Budget is scheduled for publication in February 2015 and can be found 
at the OMB Web site: [hyperlink, http://www.whitehouse.gov/omb/]. The 
2015 Budget of the United States Government, with the “Actual” column 
completed for 2013, has been reconciled to the 2013 Statement of 
Budgetary Resources and there were no material differences. 

Note 16: Rental payments for space: 

For all Interagency Agreements the CFPB enters into with another 
Federal Agency, the CFPB records the rental payments based on the 
stated monthly amount due in the occupancy agreement. 

Description Of Agreement: 

A. Interagency agreement with the Department of the Treasury's Office 
of the Comptroller of the Currency (OCC) for space to accommodate the 
CFPB staff assigned to its headquarters in Washington, DC. The 
occupancy agreement with OCC covers use of the premises for a period 
of 20 years expiring on February 17, 2032 with two optional five (5) 
year renewal periods expiring February 17, 2037 and 2042 respectively. 
The annual rent shall escalate two percent each year. 

Future Payments Due: 

Fiscal Year: 2015; 
Buildings: $11,822,235. 

Fiscal Year: 2016; 
Buildings: $12,061,452. 

Fiscal Year: 2017; 
Buildings: $12,305,453. 

Fiscal Year: 2018; 
Buildings: $12,554,334. 

Fiscal Year: 2019; 
Buildings: $12,808,193. 

Fiscal Year: 2020 through February 17, 2032; 
Buildings: $181,758,063. 

Total Future Payments: 
Buildings: $254,310,063. 

[End of table] 

Description Of Agreement: 

B. Occupancy Agreement (OA) between the CFPB and the General Services 
Administration for supplies, services and the use of space at 1275 
First Street, N.E., Washington D.C. The OA is for a period of 18 
months expiring October 31, 2015. The rent is to be adjusted annually 
for operating cost and real estate taxes. The CFPB entered into this 
OA in order to secure temporary swing space while the CFPB undergoes a 
full-building renovation of its primary headquarters located at 1700 G 
Street, NW, Washington DC. The space assigned in this OA will permit 
the CFPB to conduct a single-phase renovation. Upon completion of the 
renovation, the CFPB plans to vacate the space governed by this OA and 
return to its primary headquarters. 

Future Payments Due: 

Fiscal Year: 2015; 
Buildings: $10,700,287. 

Fiscal Year: 2016 through October 31, 2015; 
Buildings: $2,413,492. 

Total Future Payments: 
Buildings: $13,113,779. 

[End of table] 

Description Of Agreement: 

C. Interagency agreement with the Federal Housing Finance Agency 
(FHFA) for supplies, services and the use of space at 1625 I Street, 
N.W., Washington D.C. The interagency agreement is for 3 years and 3 
months expiring on June 30, 2015. The annual rent shall escalate four 
percent each year. 

Future Payments Due: 

Fiscal Year: 2015 through June 30, 2015; 
Buildings: $2,318,606. 

Total Future Payments: 
Buildings: $2,318,606. 

Description Of Agreement: 

D. Occupancy Agreement (OA) between the CFPB and the General Services 
Administration for supplies, services and the use of space at 140 East 
45th Street, New York, NY. The OA is for a period of 120 months 
expiring September 28, 2023. The rent is to be adjusted annually for 
operating cost and real estate taxes. 

Future Payments Due: 

Fiscal Year: 2015; 
Buildings: $1,120,401. 

Fiscal Year: 2016; 
Buildings: $1,129,645. 

Fiscal Year: 2017; 
Buildings: $1,139,166. 

Fiscal Year: 2018; 
Buildings: $1,148,974. 

Fiscal Year: 2019; 
Buildings: $1,216,041. 

Fiscal Year: 2020 to September 28, 2023; 
Buildings: $5,151,376. 

Total Future Payments: 
Buildings: $10,950,603. 

Description Of Agreement: 

E. Occupancy Agreement (OA) between the CFPB and the General Services 
Administration for supplies, services and the use of space at 301 
Howard Street, San Francisco, California. The OA is for a period of 54 
months expiring December 16, 2017. The rent is to be adjusted annually 
for operating cost and real estate taxes. 

Future Payments Due: 

Fiscal Year: 2015; 
Buildings: $934,515. 

Fiscal Year: 2016; 
Buildings: $1,003,488. 

Fiscal Year: 2017; 
Buildings: $1,026,498. 

Fiscal Year: 2018; 
Buildings: $257,577. 

Total Future Payments: 
Buildings: $3,222,078. 

[End of table] 

Description Of Agreement: 

F. Occupancy Agreement (OA) between the CFPB and the General Services 
Administration for supplies, services and the use of space at 230 S. 
Dearborn Street, Chicago, IL. The OA is for a period of 60 months 
expiring June 30, 2019. The rent is to be adjusted annually for 
operating cost. 

Future Payments Due: 

Fiscal Year: 2015; 
Buildings: $486,207. 

Fiscal Year: 2016; 
Buildings: $488,293. 

Fiscal Year: 2017; 
Buildings: $490,423. 

Fiscal Year: 2018; 
Buildings: $492,598. 

Fiscal Year: 2019 through June 30, 2019; 
Buildings: $370,740. 

Total Future Payments: 
Buildings: $2,328,261. 

[End of table] 

Description Of Agreement: 

G. Occupancy Agreement (OA) between the CFPB and the General Services 
Administration for supplies, services and the use of space at 1800 F 
Street N.W., Washington D.C. The OA is for a period of 34 months 
expiring August 15, 2017. The rent is to be adjusted annually for 
operating cost. The CFPB entered into this OA in order to secure 
temporary swing space while the CFPB undergoes a full-building 
renovation of its primary headquarters located at 1700 G Street, NW, 
Washington DC. The space assigned in this OA will permit the CFPB to 
continue to provide space for the Small Savers Childcare Development 
Center. 

Future Payments Due: 

Fiscal Year: 2015; 
Buildings: $325,839. 

Fiscal Year: 2016; 
Buildings: $357,102. 

Fiscal Year: 2017 through August 15, 2017; 
Buildings: $328,988. 

Total Future Payments: 
Buildings: $1.011.929. 

[End of table] 

Note 17: Funds from dedicated collections: 

Provided below is summary consolidated component entity information 
for CFPB's two primary funds from dedicated collections -- the Bureau 
Fund and the Civil Penalty Fund. Custodial collections (disgorgement 
paid and FOIA fees collected) reside in non-budgetary FBWT accounts 
and are excluded from this presentation. 

A. Fund Balances & Status of Funds: 

Fund Balances: 

Special Fund: 
Bureau Fund: $38,961,246; 
Civil Penalty Fund: $696,964; 
FY 2014: $39,658,210. 

Total:
Bureau Fund: $38,961,246; 
Civil Penalty Fund: $696,964; 
FY 2014: $39,658,210. 

Status of Fund Balance with Treasury: 

Unobligated Balance Available:
Bureau Fund: $139,827,331; 
Civil Penalty Fund: $157,079,108; 
FY 2014: $296,906,439. 

Obligated Balance Not Yet Disbursed:
Bureau Fund: $334,175,480; 
Civil Penalty Fund: $619,572; 
FY 2014: $334,795,052. 

Investments at Cost:
Bureau Fund: ($434,776,402); 
Civil Penalty Fund: 0; 
FY 2014: ($434,776,402). 

Cash Held Outside of Treasury:
Bureau Fund: ($265,163); 
Civil Penalty Fund: ($157,001,716); 
FY 2014: ($157,266,879). 

Total: 
Bureau Fund: $38,961,246;
Civil Penalty Fund: $696,964; 
FY 2014: $39,6658,210. 

B. Summary Assets, Liabilities, and Net Position: 

Assets: 

Total Intragovernmental:
Bureau Fund: $476,654,725;
Civil Penalty Fund: $696,964; 
FY 2014: $477,351,689. 

Cash and Other Monetary Assets:
Bureau Fund: $265,173; 
Civil Penalty Fund: $157,001,716; 
FY 2014: $157,266,879. 

Other: 
Bureau Fund: $37,662,686; 
Civil Penalty Fund: $15,200,000; 
FY 2014: $52,862,686. 

Total Summary Assets: 
Bureau Fund: $514,582,574; 
Civil Penalty Fund: $172,898,680; 
FY 2014: $687,481,254. 

Liabilities and Net Position: 

Total Liabilities:
Bureau Fund: $119,058,422;
Civil Penalty Fund: $30,361,958; 
FY 2014: $149,420,380. 

Cumulative Results of Operations:
Bureau Fund: $395,524,152; 
Civil Penalty Fund: $142,536,722; 
FY 2014: $538,060,874. 

Total Liabilities & Net Position:
Bureau Fund: $514,582,574; 
Civil Penalty Fund: $172,898,680; 
FY 2014: $687,481,254. 

C. Summary Statement of Net Cost: 

Total Gross Program Costs:
Bureau Fund: $478,994,514;
Civil Penalty Fund: $18,639,234; 
FY 2014: $497,633,748. 

Less: Total Earned Revenues:
Bureau Fund: ($80,000);
Civil Penalty Fund: 0; 
FY 2014: ($80,000). 

Net Cost of Operations:
Bureau Fund: $478,914,514;
Civil Penalty Fund: $18,639,234; 
FY 2014: $497,553,748. 

D. Summary Statement of Changes in Net Position: 

Net Position Beginning of Period:
Bureau Fund: $338,835,330;
Civil Penalty Fund: $68,473,955; 
FY 2014: $407,309,285. 

Total Financing Sources:
Bureau Fund: $535,603,336; 
Civil Penalty Fund: $92,702,001; 
FY 2014: $628,305,337. 

Net Cost of Operations:
Bureau Fund: ($478,914,514); 
Civil Penalty Fund: ($18,639,234); 
FY 2014: ($497,553,748). 

Change in Net Position:
Bureau Fund: $56,688,822; 
Civil Penalty Fund: $74,062,767; 
FY 2014: $130,751,589. 

Net Position End of Period:
Bureau Fund: $395,524,152;
Civil Penalty Fund: $142,536,722;
FY 2014: $538,060,874. 

A. Fund Balances & Status of Funds: 

Fund Balances: 

Special Fund: 
Bureau Fund: $26,764,046
Civil Penalty Fund: 0; 
FY 2013: $26,764,046 

Total:
Bureau Fund: $26,764,046
Civil Penalty Fund: 0; 
FY 2013: $26,764,046 

Status of Fund Balance with Treasury: 

Unobligated Balance Available:
Bureau Fund: $88,437,750; 
Civil Penalty Fund: $81,493,842; 
FY 2013: $169,931,592. 

Obligated Balance Not Yet Disbursed:
Bureau Fund: $282,424,613; 
Civil Penalty Fund: $26,159; 
FY 2013: $282,450,772. 

Investments at Cost:
Bureau Fund: ($343,773,005); 
Civil Penalty Fund: 0; 
FY 2013: ($343,773,005). 

Cash Held Outside of Treasury:
Bureau Fund: ($325,312); 
Civil Penalty Fund: ($81,520,001); 
FY 2013: ($81,845,313). 

Total: 
Bureau Fund: $26,764,046;
Civil Penalty Fund: 0; 
FY 2013: $26,764,046. 

B. Summary Assets, Liabilities, and Net Position: 

Assets: 

Total Intragovernmental:
Bureau Fund: $375,554,774;
Civil Penalty Fund: 0; 
FY 2013: $375,554,774. 

Cash and Other Monetary Assets:
Bureau Fund: $325,312; 
Civil Penalty Fund: $81,520,001; 
FY 2013: $81,845,313. 

Other: 
Bureau Fund: $28,489,059; 
Civil Penalty Fund: 0; 
FY 2013: $28,489,059. 

Total Summary Assets: 
Bureau Fund: $404,369,145; 
Civil Penalty Fund: $81,520,001; 
FY 2013: $485,889,146. 

Liabilities and Net Position: 

Total Liabilities:
Bureau Fund: $65,533,815;
Civil Penalty Fund: $13,046,046; 
FY 2013: $78,579,861. 

Cumulative Results of Operations:
Bureau Fund: $338,835,330; 
Civil Penalty Fund: $68,473,955; 
FY 2013: $407,309,285. 

Total Liabilities & Net Position:
Bureau Fund: $404,369,145; 
Civil Penalty Fund: $81,520,001; 
FY 2013: $485,889,146. 

C. Summary Statement of Net Cost: 

Total Gross Program Costs:
Bureau Fund: $378,278,796;
Civil Penalty Fund: $13,046,046; 
FY 2013: $391,324,842. 

Net Cost of Operations:
Bureau Fund: $378,278,796;
Civil Penalty Fund: $13,046,046; 
FY 2013: $391,324,842. 

D. Summary Statement of Changes in Net Position: 

Net Position Beginning of Period:
Bureau Fund: $196,503,943;
Civil Penalty Fund: $32,000,000; 
FY 2013: $228,503,943. 

Total Financing Sources:
Bureau Fund: $520,610,183; 
Civil Penalty Fund: $49,520,001; 
FY 2013: $5 70,130,184. 

Net Cost of Operations:
Bureau Fund: ($378,278,796); 
Civil Penalty Fund: ($13,046,046); 
FY 2013: ($391,324,842). 

Change in Net Position:
Bureau Fund: $142,331,387; 
Civil Penalty Fund: $36,473,955; 
FY 2013: $1 78,805,342. 

Net Position End of Period:
Bureau Fund: $338,835,330;
Civil Penalty Fund: $68,473,955;
FY 2013: $407,309,285. 

[End of table] 

Note 18: Subsequent events: 

Since October 2014, the CFPB has entered into one Consent Order with 
an entity for violations of Federal consumer financial law. The Order 
required the entity to pay in $200,000 in civil monetary penalties to 
the CFPB's Civil Penalty Fund. The Order was agreed to, and the amount 
ordered was paid in fiscal year 2015. Further, CFPB collected accounts 
receivable from fiscal year 2014 imposed penalties of $15.2 million 
and Bureau Administer Redress of $27.5 million. 

In October 2014, the Bureau and an entity which violated Federal 
consumer financial law entered into an agreement requiring the entity 
to disgorge funds to Treasury. That agreement will result in the 
disgorgement of $6.8 million in fiscal year 2015. 

A Civil Penalty Fund distribution also occurred in fiscal year 2015. 
In the National Legal Help Center case $1.2 million was distributed to 
harmed consumers. 

Note 19: Fiduciary activities: 

Section 1055 of the Dodd-Frank Act authorizes the court in a judicial 
action, or the CFPB in an administrative proceeding, to grant any 
appropriate legal or equitable relief for a violation of Federal 
consumer financial law. Such relief may include redress for victims of 
the violations, including refunds, restitution, and damages. Funds 
paid as relief that is intended to compensate victims of violations 
are treated as fiduciary funds and deposited into the “Legal or 
Equitable Relief Fund” established at the Department of the Treasury. 
Fiduciary assets are not assets of the CFPB. The victims have an 
ownership interest in the cash or other assets held by the CFPB under 
provision of law, regulation, or other fiduciary arrangement 

During fiscal years 2014 and 2013, the CFPB had the following 
fiduciary activity: 

Consumer Financial Protection Bureau: 
Schedule Of Fiduciary Activity: 
For the Year Ended September 30, 2013 and 2012: 

Consumer Financial Legal or Equitable Relief Fund: 

Fiduciary Net Assets, Beginning of Year: 

Fiduciary Revenues: 
2013: $122,804; 
2012: 0. 

Administrative Expenses: 
2013: 0; 
2012: 0. 

Disbursements to and on behalf of beneficiaries: 

Increase/(Decrease) in Fiduciary Net Assets: 
2013: $122,804; 
2012: 0. 

Fiduciary Net Assets, End of Year: 
2013: $122,804; 
2012: 0. 

Consumer Financial Protection Bureau: 
Schedule Of Fiduciary Activity: 
For the Year Ended September 30, 2014 and 2013: 

Consumer Financial Legal or Equitable Relief Fund: 

Fiduciary Assets: Cash; 
2014: $19,019,186; 
2013: $122,804. 

Fiduciary Assets: Accounts Receivable; 
2014: $29,599,000; 
2013: 0. 

Fiduciary Liabilities: 

Less: Liabilities; 
2014: $385; 
2013: 0. 

Total Fiduciary Net Assets; 
2014: $48,617,801; 
2013: $122,804. 

[End of table] 

2.3 Other information: 

The following Schedule of Spending presents an overview of the funds 
available for the CFPB to spend and how the CFPB spent these funds as 
of and for the fiscal year ended September 30, 2014. The financial 
data used to populate this schedule is the same underlying data used 
to populate the CFPB's Statement of Budgetary Resources. Similar data 
can be found on www.USAspending.gov for goods and services purchased 
via contracts with non-Federal vendors. 

Consumer Financial Protection Bureau: 
Other Accompanying Information: 
Schedule Of Spending: 
For The Periods Ended September 30, 2014 and 2013: 

What Money is Available to Spend? 

Total Resources; 
2014: $798,718,485; 
2013: $708,690,708. 

Less Amount Available but Not Agreed to be Spent; 
2014: ($296,906,439); 
2013: ($169,931,592). 

Total Amounts Agreed to be Spent; 
2014: $499,812,046; 
2013: $538,759,116. 

How was the Money Spent? 

Personnel Compensation; 
2014: $171,702,260; 
2013: $146,088,987. 

Personnel Benefits;
2014: $65,271,703; 
2013: $44,086,226. 

Benefits for Former Personnel; 
2014: $39,246; 
2013: $72,652. 

Travel and transportation of persons; 
2014: $17,232,663; 
2013: $12,979,842. 

Transportation of things;
2014: $114,159; 
2013: $92,546. 

Rent, Communications, and utilities; 
2014: $11,049,627; 
2013: $3,122,222. 

Printing and reproduction; 
2014: $2,424,626; 
2013: $1,336,520. 

Other contractual services; 
2014: $201,948,343; 
2013: $116,628,726. 

Supplies and materials; 
2014: $4,552,106; 
2013: $3,671,031. 

Equipment; 
2014: $21,452,780; 
2013: $22,993,517. 

Land and structures; 
2014: $4,023,950; 
2013: $5,516,676. 

Interest and dividends; 
2014: $211; 
2013: $2,522. 

Total Spending; 
2014: $499,812,046; 
2013: $356,591,467. 

Total Amounts Agreed to be Spent; 
2014: $499,812,046; 
2013: $538,759,116. 

Who did the Money go to? 

Federal;
2014: $131,721,047; 
2013: $237,421,195. 

Non-Federal;
2014: $368,090,999; 
2013: $301,337,921. 

Total Amounts Agreed to be Spent; 
2014: $499,812,046; 
2013: $538,759,116. 

[End of table] 

The presentation for the fiscal year 2013 column was reclassified and 
now reflects the amounts consistent with the required reporting for 
fiscal year 2014 column, per OMB Circular A-136 issued in September 
2014. The difference in reporting is spending by categories on an 
obligation incurred basis rather than a disbursement basis. 

[End of section] 

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