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GAO-08-295R 1 (2008-02-26)

handle is hein.gao/gaocrptawgh0001 and id is 1 raw text is: S=GAO Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 February 26, 2008 Report to the Congress Subject: The Judgment Fund: Status of Reimbursements Required by the No FEAR Act and Contract Disputes Act The Notification and Federal Employee Antidiscrimination and Retaliation (No FEAR) Act of 2002' has, since October 1, 2003, required federal agencies to reimburse the Judgment Fund for payments made to claimants to cover judgments, awards, and settlements in equal employment opportunity (EEO) and whistleblower cases. As we previously reported in 2004, the reimbursement provision of the No FEAR Act was intended to make agencies more accountable for their violations of employment discrimination and whistleblower protection laws brought against the agencies.2 Similarly, the Contract Disputes Act of 1978 (CDA) also has, since March 1, 1979, required agencies to reimburse the Judgment Fund for payments to claimants in 3 cases involving federal contract disputes. The No FEAR Act mandated that we conduct a study of the payments, reimbursements, and effects of the reimbursement 4 provisions of both No FEAR Act and CDA cases. In 1956, Congress established the Judgment Fund, which is a permanent, indefinite appropriation to pay judgments against federal agencies that are not otherwise provided for by other appropriations.5 In 1961, legislation was enacted allowing the Judgment Fund to pay, among other things, Department of Justice (DOJ) settlements of ongoing or imminent lawsuits against federal agencies. The Judgment Fund is intended to allow for prompt payment of settlements and awards to claimants, thereby reducing the assessment of interest against federal agencies (where allowed by law) during the period between the rendering and payment of such settlements and awards. The Judgment Fund makes such payments upon certification that a 'Pub. L. No 107-174, § 201, 166 Stat. 566, 568 (May 15, 2002). See 5 U.S.C. § 2301 note. 2GAO, No FEAR Act: Methods the Justice Department Says It Could Use to Account for Its Costs Per Cases under the Act, GAO-04-863 (Washington, D.C.: July 22, 2004); GAO, Judgment Fund: Treasury's Estimates of Claim Payment Processing Costs under the No FEAR Act and Contract Disputes Act, GAO-04-481 (Washington, D.C.: Apr. 28, 2004). 3Pub. L. No. 95-563, § 13, 92 Stat. 2383, 2389 (Nov. 1, 1978) (codified, as amended, at 41 U.S.C. § 612). 4For purposes of this report, the term payment refers to disbursements from the Judgment Fund on behalf of a federal agency to a claimant for monies owed. The term reimbursement refers to federal agencies' repayment to the Judgment Fund for amounts disbursed on their behalf. 'Act of July 27, 1956, ch. 748, § 1302, 70 Stat. 694, (codified as amended at 31 U.S.C. § 1304). 6Pub. L. No. 87-187, § 2, 75 Stat. 415 (Aug. 30, 1961). Subsequent amendments expanded the scope of payments from the Judgment Fund to include certain administrative awards and awards by agency boards of contract appeals. GAO-08-295R Judgment Fund Reimbursements

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