4/22/2020
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MONTANA
IN RE: Administration of the Court’s STANDING ORDER No. BMM-2
Non-Appropriated Fund.
I. Introduction
In accordance with the Guide to Judiciary Policy, Volume 4, Chapter 6, §
670.60, the court establishes the following standards and procedures for the
administration and operation of the District of Montana’s non-appropriated funds
held and collected by the court for the benefit of the bench and the bar. These
funds collectively are referred to herein as “non-appropriated funds” or “the Fund.”
This Standing Order supersedes Standing Orders PGH-4A and DLC-18, and those
orders are accordingly withdrawn.
II. Sources of the Fund
The Fund shall be derived from the following sources:
A. Fees paid by attorneys admitted to the Bar of this Court under the conditions
prescribed in Local Rule 83.1;
B. Fees paid by attorneys not admitted to the bar of this court who are admitted
under the conditions prescribed in Local Rule 83.1(d); and
C. All income derived from the sources described in Paragraphs A and B
above.
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III. Administration of the Fund
Advisory Committee
An Advisory Committee shall be appointed by the court to authorize
expenditures from the Fund in accordance with Judicial Conference Policy and this
Standing Order, and to advise the Fund's custodian on matters relating to the
administration of the Fund. A majority vote of the Advisory Committee is
necessary to authorize an expenditure.
The Advisory Committee shall consist of:
1. the chief United States district judge;
2. a United States magistrate judge;
3. the chief United States bankruptcy judge;
4. the clerk of court, who shall act as secretary to the committee; and
5. a lawyer representative who is a member in good standing of the bar
of this court.
Fund Custodian
The clerk of court is appointed custodian of the Fund. In the event of the
absence, retirement or resignation of the clerk, the chief deputy clerk of
administration, or such other person as the chief district judge designates, shall
serve as the custodian.
The custodian’s responsibilities and duties include:
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1. Receive, safeguard, deposit, disburse and account for all funds, as
prescribed in this Plan and in pertinent laws.
2. Establish an accounting system approved by the court.
3. Promptly pay reoccurring expenses approved by the advisory
committee.
4. Invest funds in federally insured interest-bearing accounts,
government securities or money market funds invested in government
obligations in accordance with this Plan.
5. Exercise independent approval authority for expenditures from the
Fund in amounts not to exceed those authorized by the Advisory
Committee, provided such expenditures are otherwise in compliance
with Judicial Conference Policy and this Standing Order.
6. Ensure that a financial statement and operating report is prepared
quarterly.
7. Provide an accounting of the Fund at least annually and ensure that
operating and expenditure reports are prepared monthly. The clerk
shall distribute a copy to the Advisory Committee, thereby certifying
that the statement and report accurately present the financial condition
of the Fund. The report shall state the following:
a. Beginning balance of assets;
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b. Revenue during reporting period: collections, investment;
c. Disbursements during reporting period, listed by major
classifications;
d. Ending balance of assets (bank balances and undeposited
collections);
e. Obligations, accounts payable or known future expenditures;
and
f. Available balance.
8. Act as Secretary to the advisory committee and keep records and
minutes of committee meetings.
9. Perform such other duties as the Advisory Committee may direct.
IV. Purposes and Uses of the Fund
In general, monies deposited into the Fund must be used for purposes which
inure to the benefit of members of the bench and bar of this court in the
administration of justice. Any judge, advisory committee member, staff member or
member of the bar of this court may make recommendations for expenditures from
the Fund on application to the custodian/trustee of the Fund. Examples of proper
use of the Fund include, but are not limited to:
A. Purchase of periodicals and publications for the court library for which
appropriated funds are not available;
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B. Surety bond for the custodian of the Fund. (The bond may cover only
monies in the Fund);
C. Fees for services rendered by outside auditors in auditing the Fund;
D. Reimbursement of appointed pro bono counsel for reasonable expenses;
E. Expenses for the training of court personnel for which appropriated funds
are not available, including attendance fees for conferences and seminars but
not including travel costs;
F. Collection and preservation of records of historical value to the court;
G. Development of the history of the court;
H. Enhancing the level of advocacy in the court;
I. Attorney admission proceedings (including expenses of admissions,
committees, and admissions ceremonies);
J. Costs associated with hosting the Montana Judicial Institute;
K. Attorney discipline proceedings (including expenses of investigating counsel
for disciplinary enforcement, travel expenses and witness fees in disciplinary
proceedings);
L. Furnishings, equipment, and amenities for lawyer lounges that may not be
purchased or funded from appropriations. Examples include: Furniture,
refrigerators, telephone and Internet service, and bottled water; or
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M. Any other purposes for which appropriated funds may not legally be used
that will benefit the bench and the bar in the administration of justice.
V. Limitations on Use of the Fund
The following limitations apply to the use of the Fund:
A. The Fund shall not be used to pay for goods or services for which
appropriations may legally be used, even if the appropriated funds are
exhausted or otherwise not available.
B. Notwithstanding this restriction, the Fund may be used to purchase books,
periodicals and other resource materials for the court’s libraries for which
appropriated funds may also be used.
C. The Fund shall not be used to supplement the salary of any judges or court
employees, or provide a personal benefit to any judge or court employee, or
their family members. As a limited exception, judges or court employees, or
their family members, may receive a de minimus personal benefit incidental
to a proper expenditure from the Fund, e.g., meals, refreshments or
hospitality items provided by the Fund.
D. The Fund must not be used to pay for official or personal travel by a judge
or court employee or by his or her family member, unless it is used to pay
for local transportation of a judge or court employee to attend bench/bar
events.
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E. The Advisory Committee shall avoid unreasonable accumulation of the
Fund.
VI. Audits and Inspections
Routine Audits
The financial records, disbursements, receipts and earning statements shall
be audited by the Audit Division of the AO as a part of periodic reviews of the
business of the court; and the clerk as part of the court’s annual internal audit. The
court may appoint an outside auditor or disinterested inspector (who may be a
government employee) to conduct such additional audits as the court determines
may be necessary or appropriate. The custodian shall provide the written results of
such audits to the court and make them available upon request to members of the
bar of the court. The auditor may receive reasonable compensation from the Fund
if the auditor is not a government employee acting in an official capacity. Any
costs of such an audit shall be paid out of the Fund.
Appointment of a Successor Custodian
Upon appointment of a successor custodian, the outgoing custodian shall
prepare and sign the following statements in conjunction with an exit audit or
inspection conducted by an auditor or disinterested inspector designated by the
court:
A. A statement of assets and liabilities; and
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B. A Statement of the balance in any Fund accounts as of the date of transfer to
the successor custodian.
The successor custodian shall execute a receipt for all funds after being
satisfied as to the accuracy of the statements provided by the outgoing custodian.
Acceptance may be conditioned upon audit and verification when the
circumstances warrant.
Dissolution of the Fund
The court may dissolve the Fund or any portion thereof, whenever
considered appropriate to do so. A final audit should be performed by an outside
auditor and a written accounting rendered to the court, before dissolution of the
Fund. The custodian shall ensure that all outstanding obligations are liquidated
before dissolution of the Fund, including any expenses resulting from the required
final audit. The court may direct the disposition of remaining assets from the Fund
in ways which will fulfill the purposes of the Fund as set forth in this plan.
The clerk shall immediately inform all judicial officers of this district of the
entry of this order.
DATED this 22nd day of April, 2020.
____________________________________
Brian Morris, Chief Judge
United States District Court
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