DOL Annual Report, Fiscal Year 2002 - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended September 30, 2002and 2001

ANNUAL REPORT FY 2002

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended September 30, 2002 and 2001

NOTE 14 - PROGRAM COST

Schedules A, B and C present detailed cost and revenue information by suborganization (responsibility segment) for programs in the Department, the Employment and Training Administration, and the Employment Standards Administration in support of the summary information presented in the Consolidated Statement of Net Cost for 2002.

Cost and revenue by suborganization for the nine outcome goals adopted in the Department's Annual Performance Plan for FY 2002, submitted under the requirements of the Government Performance and Review Act (GPRA), are presented in schedule D.

Detailed cost and revenue information by budget function for 2002 is presented in Schedule E and intra-governmental cost and revenue information by budget function for 2002 is presented in Schedule F.

A. Consolidating Statement of Net Cost by Suborganization

Net cost by suborganization for the year ended September 30, 2002 consisted of the following:

(Dollars in thousands)		Employment and Training Administration		Employment Standards Administration		Occupational Safety and Health Administration		Bureau of Labor Statistics		Mine Safety and Health Administration		Pension and Welfare Benefits Administration		Veterans' Employment and Training		Other Departmental Programs		Eliminations		Total

CROSSCUTTING PROGRAMS Income maintenance
Intra-governmental	$	222,855	$	672,553	$	-	$	-	$	-	$	-	$	-	$	13,990	$	(31,335)	$	878,063
With the public		54,982,858		2,971,177		-		-		-		-		-		25,331		4,101		57,983,467
Total cost		55,205,713		3,643,730		-		-		-		-		-		39,321		(27,234)		58,861,530
Less earned revenue		(537,306)		(2,302,943)		-		-		-		-		-		2		27,234		(2,813,013)
Net program cost		54,668,407		1,340,787		-		-		-		-		-		39,323		-		56,048,517
Employment and training
Intra-governmental		119,667		-		-		-		-		-		10,603		289		(35,238)		95,321
With the public		6,645,297		-		-		-		-		-		190,265		16,012		35,091		6,886,665
Total cost		6,764,964		-		-		-		-		-		200,868		16,301		(147)		6,981,986
Less earned revenue		(16,337)		-		-		-		-		-		-		-		147		(16,190)
Net program cost		6,748,627		-		-		-		-		-		200,868		16,301		-		6,965,796
Labor, employment and pension standards
Intra-governmental		-		105,054		-		-		-		38,653		244		18,616		(38,954)		123,613
With the public		-		229,909		-		-		-		106,634		4,292		120,050		38,864		499,749
Total cost		-		334,963		-		-		-		145,287		4,536		138,666		(90)		623,362
Less earned revenue		-		229		-		-		-		(7,710)		-		(1)		90		(7,392)
Net program cost		-		335,192		-		-		-		137,577		4,536		138,665		-		615,970
Worker Safety and Health
Intra-governmental		-		-		99,748		-		84,272		-		-		124		(41,609)		142,535
With the public		-		-		384,271		-		197,721		-		-		336		41,609		623,937
Total cost		-		-		484,019		-		281,993		-		-		460		-		766,472
Less earned revenue		-		-		(493)		-		(930)		-		-		-		-		(1,423)
Net program cost		-		-		483,526		-		281,063		-		-		460		-		765,049
OTHER PROGRAMS Statistics
Intra-governmental		-		-		-		178,419		-		-		-		-		(15,010)		163,409
With the public		-		-		-		335,094		-		-		-		-		8,281		343,375
Total cost		-		-		-		513,513		-		-		-		-		(6,729)		506,784
Less earned revenue		-		-		-		(12,765)		-		-		-		-		6,729		(6,036)
Net program cost		-		-		-		500,748		-		-		-		-		-		500,748
Cost not assigned to programs Less earned revenue not		-		-		-		-		-		-		-		139,959		(9,917)		130,042
attributed to programs		-		-		-		-		-		-		-		(44,987)		9,917		(35,070)
Net cost not assigned to programs		-		-		-		-		-		-		-		94,972		-		94,972
Net cost of operations	$	61,417,034	$	1,675,979	$	483,526	$	500,748	$	281,063	$	137,577	$	205,404	$	289,721	$	-	$	64,991,052

B. Consolidating Statement of Net Cost - Employment and Training Administration

Net cost of the Employment and Training Administration for the year ended September 30, 2002 consisted of the following:

(Dollars in Thousands)		Employment Security		Training and Employment Programs		Eliminations		Total

CROSSCUTTING PROGRAMS Income maintenance
Benefits	$	50,893,369	$	50	$	-	$	50,893,419
Grants		4,018,115		-		-		4,018,115
Interest		5,333		-		-		5,333
Other		288,603		3,243		(3,000)		288,846
Total cost		55,205,420		3,293		(3,000)		55,205,713
Less earned revenue		(540,306)		-		3,000		(537,306)
Net program cost		54,665,114		3,293		-		54,668,407
Employment and training
Benefits		-		28,335		-		28,335
Grants		-		6,495,931		-		6,495,931
Other		-		240,698		-		240,698
Total cost		-		6,764,964		-		6,764,964
Less earned revenue		-		(16,337)		-		(16,337)
Net program cost		-		6,748,627		-		6,748,627
	$	54,665,114	$	6,751,920	$	-	$	61,417,034

C. Consolidating Statement of Net Cost - Employment Standards Administration

Net cost of the Employment Standards Administration for the year ended September 30, 2002 consisted of the following:

(Dollars in Thousands)		Office Workers' Compensation Programs		Office of Federal Contract Compliance		Wage and Hour Division		Office of Labor Management Standards		Eliminations		Total

CROSSCUTTING PROGRAMS Income maintenance
Benefits	$	2,795,402	$	-		-	$	-	$	(1,884)	$	2,793,518
Interest		595,589		-		-		-		-		595,589
Other		254,623		-		-		-		-		254,6232
Total cost		3,645,614		-		-		-		(1,884)		3,643,730
Less earned revenue		(2,304,827)		-		-		-		1,884		(2,302,943)
Net program cost		1,340,787		-		-		-		-		1,340,787
Labor, employment and pension standards
Benefits		-		12,618		25,366		5,245		-		43,229
Other		-		83,975		175,584		32,175		-		291,734
Total cost		-		96,593		200,950		37,420		-		334,963
Less earned revenue		-		-		229		-		-		229
Net program cost		-		96,593		201,179		37,420		-		335,192
Net cost of operations	$	1,340,787	$	96,593	$	201,179	$	37,420	$	-	$	1,675,979

D. Consolidating Statement of Net Cost by Outcome Goal

Net cost by outcome goal for the year ended September 30, 2002 consisted of the following:

(Dollars in thousands)		Employment and Training Administration		Employment and Standards Administration		Occupational Safety and Health Administration		Bureau of Labor Statistics		Mine Safety and Health Administration		Pension and Welfare Benefits Administration		Pension and Employment and Training		Veterans' Departmental Programs		Other Eliminations		Total

Increase employment, earnings, and assistance	$	3,395,382	$	-	$	-	$	-	$	-	$	-	$	195,546	$	24,493	$	(1,459)	$	3,613,962
Less earned revenue		(19,158)		-		-		-		-		-		-		-		1,459		(17,699)
Net program cost		3,376,224		-		-		-		-		-		195,546		24,493		-		3,596,263
Increase the number of youth making a successful transition to work		2,826,873		-		-		-		-		-		-		2,214		(1)		2,829,086
Less earned revenue		(421)		-		-		-		-		-		-		-		1		(420)
Net program cost		2,826,452		-		-		-		-		-		-		2,214		-		2,828,666
Improve the effectiveness of information and analysis on the U.S. economy		-		-		-		513,513		-		-		-		8,475		(6,729)		515,259
Less earned revenue		-		-		-		(12,765)		-		-		-		-		6,729		(6,036)
Net program cost		-		-		-		500,748		-		-		-		8,475		-		509,223
Increase compliance with worker protection laws				232,676		-		-		-		100,752		-		21,892		(64)		355,256
Less earned revenue		-		-		-		-		-		(5,474)		-		-		64		(5,410)
Net program cost		-		232,676		-		-		-		95,278		-		21,892		-		349,846
Protect worker benefits		54,087,226		3,649,300		-		-		-		44,535		-		51,119		(25,947)		57,806,233
Less earned revenue		(533,906)		(2,302,713)		-		-				(2,236)		-		3		25,947		(2,812,905)
Net program cost		53,553,320		1,346,587		-		-		-		42,299		-		51,122		-		54,993,328
Provide worker retraining		1,661,197		-		-		-		-		-		-		837		-		1,662,034
Less earned revenue		(159)		-		-		-		-		-		-		-		-		(159)
Net program cost		1,661,038		-		-		-		-		-		-		837		-		1,661,875
Reduce workplace injuries, illnesses, and fatalities		-		-		484,019		-		281,993		-		-		16,469		-		782,481
Less earned revenue		-		-		(493)		-		(930)		-		-		-		-		(1,423)
Net program cost		-		-		483,526		-		281,063		-		-		16,469		-		781,058
Foster equal opportunity workplaces		-		96,716		-		-		-		-		9,858		10,100		-		116,674
Less earned revenue		-		-		-		-		-		-		-		(1)		-		(1)
Net program cost		-		96,716		-		-		-		-		9,858		10,099		-		116,673
Reduce exploitation of child labor and address core international labor standards issues		-		-		-		-		-		-		-		106,096		-		106,096
Less earned revenue		-		-		-		-		-		-		-		-		-		-
Net program cost		-		-		-		-								6106,09				106,096
Cost not assigned to goals		-		-		-		-		-		-		-		93,011		(9,917)		83,094
Less earned revenue not attributed to goals		-		-		-		-		-		-		-		(44,987)		9,917		(35,070)
Net cost not assigned to goals		-		-		-		-		-		-		-		48,024		-		48,024
Net cost of operations	$	61,417,034	$	1,675,979	$	483,526	$	500,748	$	281,063	$	137,577	$	205,404	$	289,721	$	-	$	64,991,052

E. Consolidating Statement of Net Cost by Budget Function

Net cost by budget function for the year ended September 30, 2002 consisted of the following:

(Dollars in Thousands)		Education, Training and Employment		Health		Income Secuity		National Defense		Veterans' Benefits and Sevicces		Totals

CROSSCUTTING PROGRAMS Income maintenance
Intra-governmental	$	62,636	$	-	$	804,154	$	11,273	$	-	$	878,063
With the public		199,133		-		57,756,615		27,719		-		57,983,467
Total cost		261,769		-		58,560,769		38,992		-		58,861,530
Less earned revenue		(2,719)		-		(2,810,294)		-		-		(2,813,013)
Net program cost		259,050		-		55,750,475		38,992		-		56,048,517
Employment and training
Intra-governmental		89,437		-		-		-		5,884		95,321
With the public		6,694,888		-		-		-		191,777		6,886,665
Total cost		6,784,325		-		-		-		197,661		6,981,986
Less earned revenue		(16,190)		-		-		-		-		(16,190)
Net program cost		6,768,135		-		-		-		197,661		6,965,796
Labor, employment and pension standards
Intra-governmental		99,110		-		24,287		-		216		123,613
With the public		394,918		-		100,602		-		4,228		499,748
Total cost		494,028		-		124,889		-		4,444		623,361
Less earned revenue		229		-		(7,620)		-		-		(7,391)
Net program cost		494,257		-		117,269		-		4,444		615,970
Worker safety and health
Intra-governmental		10,688		131,847		-		-		-		142,535
With the public		32,347		591,590		-		-		-		623,937
Total cost		43,035		723,437		-		-		-		766,472
Less earned revenue		43,035		722,014		-		-		-		(1,423)
Net program cost		-		(1,423)		-		-		-		765,049
OTHER PROGRAMS Statistics
Intra-governmental		163,409		-		-		-		-		163,409
With the public		343,375		-		-		-		-		343,375
Total cost		506,784		-		-		-		-		506,784
Less earned revenue		(6,036)		-		-		-		-		(6,036)
Net program cost		500,748		-		-		-		-		500,748
Cost not assigned to programs		130,042		-		-		-		-		130,042
Less earned revenue not attributed to programs		(35,070)		-		-		-		-		(35,070)
Net cost not assigned to programs		94,972		-		-		-		-		94,972
Net cost of operations	$	8,160,197	$	722,014	$	55,867,744	$	38,992	$	202,105	$	64,991,052

F. Consolidating Statement of Net Cost by Budget Function (Intra-governmental)

Net intra-governmental cost by budget function for the year ended September 30, 2002 consisted of the following

(Dollars in Thousands)		Education, Training and Employment		Health		Income Secuity		National Defense		Veterans' Benefits and Sevicces		Totals

CROSSCUTTING PROGRAMS Income maintenance
Intra-governmental	$	62,636	$	-	$	804,154	$	11,273	$	-	$	878,063
Less earned revenue		(2,721)		-		(2,810,294)		-		-		(2,813,015)
Net program cost		59,915		-		(2,006,140)		11,273		-		(1,934,952)
Employment and training Intra-governmental		89,437		-		-		-		5,884		95,321
Less earned revenue		(15,611)		-		-		-		-		(15,611)
Net program cost		73,826		-		-		-		5,884		79,710
Labor, employment and pension standards
Intra-governmental		99,110		-		24,287		-		216		123,613
Less earned revenue		229		-		(7,385)		-		-		(7,156)
Net program cost		99,339		-		16,902		-		216		116,457
Worker safety and health
Intra-governmental		10,688		131,847		-		-		-		142,535
Less earned revenue		-		(975)		-		-		-		(975)
Net program cost		10,688		130,872		-		-		-		141,560
OTHER PROGRAMS Statistics
Intra-governmental		163,409		-		-		-		-		163,409
Less earned revenue		(5,322)		-		-		-		-		(5,322)
Net program cost		158,087		-		-		-		-		158,087
Cost not assigned to programs
Intra-governmental		67,087		-		-		-		-		67,087
Less earned revenue not attributed to programs		(30,457)		-		-		-		-		(30,457)
Net cost not assigned to programs		36,630		-		-		-		-		36,630
Net cost of operations	$	438,485	$	130,872	$	(1,989,238)	$	11,273	$	6,100	$	(1,402,508)

Schedules G, H and I present detailed cost and revenue information by suborganization (responsibility segment) for programs in the Department, the Employment and Training Administration, and the Employment Standards Administration in support of the summary information presented in the Consolidated Statement of Net Cost for 2001.

Detailed cost and revenue information by budget function for 2001 is presented in Schedule J and intra-governmental cost and revenue information by budget function for 2001 is presented in Schedule K.

G. Consolidating Statement of Net Cost by Suborganization - Restated

Net cost by suborganization for the year ended September 30, 2001 consisted of the following:

(Dollars in thousands)		Employment and Training Administration		Employment and Standards Administration		Occupational Safety and Health Administration		Bureau of Labor Statistics		Mine Safety and Health Administration	Pension and Welfare Benefits Administration		Veterans' Employment and Training		Other Departmental Programs		Eliminations		Total

CROSSCUTTING PROGRAMS Income maintenance
Intra-governmental	$	194,248	$	624,166	$	-	$	-	$	-	$-	$	-	$	15,352	$	(25,015)	$	808,751
With the public		32,123,099		4,462,113		-		-		-	-		-		26,361		(1,583)		36,609,990
Total cost		32,317,347		5,086,279		-		-		-	-		-		41,713		(26,598)		37,418,741
Less earned revenue		(406,729)		(2,190,211)		-		-		-	-		-		-		26,598		(2,570,342)
Net program cost		31,910,618		54,668,407		-		-		-	-		-		41,713		-		34,848,399
Employment and training
Intra-governmental		66,799		-		-		-		-	-		9,750		416		(34,604)		42,361
With the public		5,608,738		-		-		-		-	-		178,818		1,211		34,604		5,823,371
Total cost		5,675,537		-		-		-		-	-		188,568		1,627		-		5,865,732
Less earned revenue		(9,437)		-		-		-		-	-		-		-		-		(9,437)
Net program cost		5,666,100		-		-		-		-	-		188,568		1,627		-		5,856,295
Labor, employment and pension standards
Intra-governmental		-		96,267		-		-		-	34,011		218		15,349		(34,581)		111,264
With the public		-		229,301		-		-		-	86,986		4,020		62,821		34,581		417,709
Total cost		-		325,568		-		-		-	120,997		4,238		78,170		-		528,973
Less earned revenue		-		(2,594)		-		-		-	(9,915)		-		-		-		(12,509)
Net program cost		-		322,974		-		-		-	111,082		4,238		78,170		-		516,464
Worker Safety and Health
Intra-governmental		-		-		88,293		-		82,043	-		-		93		(38,363)		132,066
With the public		-		-		352,568		-		195,802	-		-		271		38,363		587,004
Total cost		-		-		440,861		-		277,845	-		-		364		-		719,070
Less earned revenue		-		-		(2,127)		-		(897)	-		-		-		-		(3,024)
Net program cost		-		-		438,734		-		276,948	-		-		364		-		716,046
OTHER PROGRAMS Statistics
Intra-governmental		-		-		-		163,486		-	-		-		-		(14,189)		149,297
With the public		-		-		-		307,173		-	-		-		-		7,668		314,841
Total cost		-		-		-		470,659		-	-		-		-		(6,521)		464,138
Less earned revenue		-		-		-		(11,350)		-	-		-		-		6,521		(4,829)
Net program cost		-		-		-		459,309		-	-		-		-		-		459,309
Cost not assigned to programs Less earned revenue not		-		-		-		-		-	-		-		95,486		(7,083)		88,403
attributed to programs		-		-		-		-		-	-		-		(32,695)		7,083		(25,612)
Net cost not assigned to programs		-		-		-		-		-	-		-		62,791		-		62,791
Net cost of operations	$	37,576,718	$	3,219,042	$	438,734	$	459,309	$	276,948	$111,082	$	192,806	$	184,665	$	-	$	42,459,304

H. Consolidating Statement of Net Cost - Employment and Training Administration

Net cost of the Employment and Training Administration for the year ended September 30, 2001 consisted of the following:

(Dollars in Thousands)		Employment Security		Training and Employment Programs		Eliminations		Total

CROSSCUTTING PROGRAMS Income maintenance
Benefits	$	28,548,424	$	49	$	-	$	28,548,473
Grants		3,637,669		-		-		3,637,669
Interest		4,029		-		-		4,029
Other		126,938		238		-		127,176
Total cost		32,317,060		287		-		32,317,347
Less earned revenue		(406,729)		-		-		(406,729)
Net program cost		31,910,331		287		-		31,910,618
Employment and training
Benefits		2,539		31,582		-		34,121
Grants		47,957		5,378,218		-		5,426,175
Other		22,020		193,221		-		215,241
Total cost		72,516		5,603,021		-		5,675,537
Less earned revenue		-		(9,437)		-		(9,437)
Net program cost		72,516		5,593,584		-		5,666,100
Net cost of operations	$	31,982,847	$	5,593,871	$	-	$	37,576,718

I. Consolidating Statement of Net Cost - Employment Standards Administration

Net cost of the Employment Standards Administration for the year ended September 30, 2001 consisted of the following:

(Dollars in Thousands)		Office of Workers' Compensation Programs		Office of Federal Contract Compliance		Wage and Hour Division		Office of Labor Management Standards		Eliminations		Totals

CROSSCUTTING PROGRAMS Income maintenance
Benefits	$	4,351,196	$	-	$	-	$	-	$	(1,623)	$	4,349,573
Interest		567,814		-		-		-		-		567,814
Other		168,892		-		-		-		-		168,892
Total cost		5,087,902		-		-		-		(1,623)		5,086,279
Less earned revenue		(2,191,834)		-		-		-		1,623		(2,190,211)
Net program cost		2,896,068		-		-		-		-		2,896,068
Labor, employment and pension standards
Benefits		-		11,768		23,009		4,813		-		39,590
Other		-		82,734		173,104		30,140		-		285,978
Total cost		-		94,502		196,113		34,953		-		325,568
Less earned revenue		-		-		(2,594)		-		-		(2,594)
Net program cost		-		94,502		193,519		34,953		-		322,974
Net cost of operations	$	2,896,068	$	94,502	$	193,519	$	34,953	$	-	$	3,219,042

J. Consolidating Statement of Net Cost by Budget Function - Restated

Net cost by budget function for the year ended September 30, 2001 consisted of the following:

(Dollars in Thousands)		Education, Training and Employment		Health		Income Secuity		National Defense		Veterans' Benefits and Sevicces		Totals

CROSSCUTTING PROGRAMS Income maintenance
Intra-governmental	$	54,503	$	-	$	753,328	$	920	$	-	$	808,751
With the public		178,063		-		34,822,299		1,609,628		-		36,609,990
Total cost		232,566		-		35,575,627		1,610,548		-		37,418,741
Less earned revenue		(2,628)		-		(2,567,714)		-		-		(2,570,342)
Net program cost		229,938		-		33,007,913		1,610,548		-		34,848,399
Employment and training
Intra-governmental		37,279		-		-		-		5,082		42,361
With the public		5,598,079		-		47,925		-		177,367		5,823,371
Total cost		5,635,358		-		47,925		-		182,449		5,865,732
Less earned revenue		(9,437)		-		-		-		-		(9,437)
Net program cost		5,625,921		-		-		-		182,449		5,856,295
Labor, employment and pension standards
Intra-governmental		89,708		-		21,367		-		189		111,264
With the public		332,284		-		81,510		-		3,915		417,709
Total cost		421,992		-		102,877		-		4,104		528,973
Less earned revenue		(2,594)		-		(9,915)		-		-		(12,509)
Net program cost		419,398		-		92,962		-		4,104		516,464
Worker safety and health
Intra-governmental		9,776		122,290		-		-		-		132,066
With the public		31,355		555,649		-		-		-		587,004
Total cost		41,131		677,939		-		-		-		719,070
Less earned revenue		-		(3,024)		-		-		-		(3,024)
Net program cost		41,131		674,915		-		-		-		716,046
OTHER PROGRAMS Statistics
Intra-governmental		149,297		-		-		-		-		149,297
With the public		314,841		-		-		-		-		314,841
Total cost		464,138		-		-		-		-		464,138
Less earned revenue		(4,829)		-		-		-		-		(4,829)
Net program cost		459,309		-		-		-		-		459,309
Cost not assigned to programs		88,403		-		-		-		-		88,403
Less earned revenue not attributed to programs		(25,612)		-		-		-		-		(25,612)
Net cost not assigned to programs		62,791		-		-				-		62,791
Net cost of operations	$	6,838,488	$	674,915	$	33,148,800	$	1,610,548	$	186,553	$	42,459,304

K. Consolidating Statement of Net Cost by Budget Function (Intra-governmental)

Net intra-governmental cost by budget function for the year ended September 30, 2001 consisted of the following:

(Dollars in Thousands)		Education, Training and Employment		Health		Income Secuity		National Defense		Veterans' Benefits and Sevicces		Totals

CROSSCUTTING PROGRAMS Income maintenance
Intra-governmental	$	54,503	$	-	$	753,328	$	920	$	-	$	808,751
Less earned revenue		(2,623)		-		(2,567,714)		-		-		(2,570,337)
Net program cost		51,880		-		(1,814,386)		920		-		(1,761,586)
Employment and training
Intra-governmental		37,279		-		-		-		5,082		42,361
Less earned revenue		(8,915)		-		-		-		-		(8,915)
Net program cost		28,364		-		-		-		5,082		33,446
Labor, employment and pension standards
Intra-governmental		89,708		-		21,367		-		189		111,264
Less earned revenue		(30)		-		(9,443)		-		-		(9,473)
Net program cost		89,678		-		11,924		-		189		101,791
Worker safety and health
Intra-governmental		9,776		122,290		-		-		-		132,066
Less earned revenue		-		(1,013)		-		-		-		(1,013)
Net program cost		9,776		121,277		-		-		-		131,053
OTHER PROGRAMS Statistics
Intra-governmental		149,297		-		-		-		-		149,297
Less earned revenue		(3,740)		-		-		-		-		(3,740)
Net program cost		145,557		-		-		-		-		145,557
Cost not assigned to programs
Intra-governmental		57,947		-		-		-		-		57,947
Less earned revenue not attributed to programs		(24,060)		-		-		-		-		(24,060)
Net cost not assigned to programs		33,887		-		-		-		-		33,887
Net cost of operations	$	359,142	$	121,277	$	(1,802,462)	$	920	$	5,271	$	(1,315,852)

NOTE 15 - NON-EXCHANGE REVENUE

Non-exchange revenues reported on the Consolidated Statement of Changes in Net Position in 2002 and 2001 consisted of the following:

(Dollars in thousands)		2002		2001

Employer taxes
Unemployment Trust Fund
Federal unemployment taxes	$	6,613,294	$	6,937,235
State unemployment taxes		19,642,722		19,775,275
		26,256,016		26,712,510
Black Lung Disability Trust Fund excise taxes		566,645		522,197
		26,822,661		27,234,707
Interest
Unemployment Trust Fund		5,083,191		5,764,079
Longshore and Harbor Workers' Trust Fund		854		1,891
District of Columbia Trust Fund		85		157
Panama Canal Commission Compensation Fund		6,380		6,099
Energy Employees Occupational Illness Compensation Fund		1,468		1,744
Black Lung Disability Trust Fund		2,343		1,296
		5,094,321		5,775,266
Assessments
Longshore and Harbor Workers' Trust Fund		134,081		133,948
District of Columbia Trust Fund		11,559		12,170
Other		(27)		595
		145,613		146,713
Reimbursement of unemployment benefits from state and local governments and non-profit organizations
to the Unemployment Trust Fund		1,371,411		1,072,686
	$	33,434,006	$	34,229,372

NOTE 16 - TRANSFERS WITHOUT REIMBURSEMENT

Transfers from (to) other Federal agencies in 2002 and 2001 consisted of the following:

(Dollars in thousands)		2002		Restated 2001

Budgetary financing sources
From DOL general fund unexpended appropriation
accounts to the DOL Working Capital Fund	$	3,000	$	3,000
Other financing sources
From General Services Administration		3,009		2,802
To General Services Administration		(662)		(4,306)
		2,347		(1,504)
	$	5,347	$	1,496

NOTE 17 - STATUS OF BUDGETARY RESOURCES

A. Apportionment Categories of Obligations Incurred

Obligations incurred reported on the Combined Statement of Budgetary Resources in 2002 and 2001 consisted of the following:

(Dollars in thousands)		2002		2001

Direct Obligations
Category A	$	3,748,936	$	3,468,986
Category B		9,843,443		8,861,729
Exempt from apportionment		56,907,290		33,360,507
Total direct obligations		70,499,669		45,691,222
Reimbursable Obligations
Category A		174,901		177,453
Category B		2,388,904		2,393,485
Total reimbursable obligations		2,563,805		2,570,938
	$	73,063,474	$	48,262,160

B. Permanent Indefinite Appropriations

The Department of Labor's permanent indefinite appropriations include all trust funds, the Federal Employees' Compensation Act Special Benefit Fund, the Panama Canal Commission Compensation Fund, the Energy Employees Occupational Illness Compensation Fund, ETA and ESA H-1b funds, and portions of State Unemployment Insurance and Employment Service Operations and Federal Unemployment Benefits and Allowances. These funds are described in Note 1-A.3.

C. Legal Arrangements Affecting Use of Unobligated Balances

Unemployment Trust Fund receipts are reported as budget authority in the Consolidated Statement of Budgetary Resources. The portion of UTF receipts collected in excess of amounts needed to pay benefits and other valid obligations are precluded by law from being available for obligation at year end. Therefore, these excess receipts are not classified as budgetary resources in the Consolidated Statement of Budgetary Resources and are not included in unobligated balances in the status of budgetary resources included in that Statement. All excess receipts are reported as assets of the UTF and are included in the Consolidated Balance Sheet. They will become available for obligation as needed in the future

D. Explanation of Differences Between the Statement of Budgetary Resources and the Budget of the United States Government

The Budget of the United States Government with actual amounts for the year ended September 30, 2002 has not been published as of the issue date of these financial statements. This document will be available in February, 2003.

NOTE 18 - CUSTODIAL REVENUES

Custodial revenues in 2002 consisted of the following:

(Dollars in thousands)		Cash Collection		Less Refunds		Net Cash Collections		Increase (Decrease) in Amount to Be Collected		Total Revenues

Civil monetary penalties
OSHA	$	59,535	$	-	$	59,535	$	1,585	$	61,120
MSHA		17,888		-		17,888		552		18,440
PWBA		11,429		-		11,429		584		12,013
ESA		15,456		(12)		15,444		865		16,309
		104,308		(12)		104,296		3,586		107,882
ETA disallowed grant costs		9,190		(12)		9,178		(5,652)		3,526
Other		580		(2)		578		-		578
	$	114,078	$	(26)	$	114,052	$	(2,066)	$	111,986

Custodial revenues in 2001 consisted of the following:

(Dollars in thousands)		Cash Collection		Less Refunds		Net Cash Collections		Increase (Decrease) in Amount to Be Collected		Total Revenues

Civil monetary penalties
OSHA	$	57,974	$	186	$	58,160	$	1,768	$	59,928
MSHA		18,576		-		18,576		1,598		20,174
PWBA		14,667		-		14,667		(1,220)		13,447
ESA		12,714		-		12,714		694		13,408
		103,931		186		104,117		2,840		106,957

ETA disallowed grant costs		10,260		(16)		10,244		(8,253)		1,991
Other		1,330		-		1,330		-		1,330
	$	115,521	$	170	$	115,691	$	(5,413)	$	110,278

NOTE 19 - DEDICATED COLLECTIONS

DOL is responsible for the operation of four major trust funds. The financial position of each trust fund as of September 30, 2002 is shown below.

(Dollars in thousands)		Unemployment		Black Lung Disability		Longshore and Harbor Worker's		District of Columbia

Assets
Intra-governmental Funds with U.S. Treasury	$	(23,255)	$	38,828	$	629	$	34
Investments		68,264,647		-		63,052		6,077
Accounts receivable, net Due from other Federal agencies For UCX and UCFE benefits		267,737		-		-		-
Interest receivable from investments		1,071,299		-		-		-
Total intra-governmental Accounts receivable, net		69,580,428		38,828		6,111		63,681
State unemployment tax		220,618		-		-		-
Due from reimbursable employers,		372,786		-		-		-
Benefit overpayments		105,384		24,728		-		-
Other		-		2,821		4,025		204
Advances to states		504,283		-		-		-
Total assets	$	70,783,499	$	66,377	$	67,706	$	6,315


Liabilities
Intra-governmental
Accounts payable to ETA - SUIESO	$	1,284,215	$	-	$	-	$	-
Advances from U.S. Treasury Amounts held for the Railroad		-		7,718,557		-		-
Retirement Board		28,268		-		-		-
Total intra-governmental		1,312,483		7,718,557		-		-

Accrued benefits		2,074,234		29,469		2,052		154
Other		-		-		35,035		3,219
Total liabilities		3,386,717		7,748,026		37,087		3,373
Net position
Cumulative results of operations		67,396,782		(7,681,649)		30,619		2,942
Total liabilities	$	70,783,499	$	66,377	$	67,706	$	6,315

NOTE 19 - DEDICATED COLLECTIONS - Continued

The net results of operations of each trust fund for the year ended September 30, 2002 is shown below.

(Dollars in thousands)		Unemployment		Black Lung Disability		Longshore and Harbor Worker's		District of Columbia

Cost, net of earned revenues
Benefits	$	(50,887,009)	$	(367,911)	$	(129,139)	$	(10,962)
Investments		(5,333)		(595,589)		-		-
Administrative		(227,363)		(33)		-		-
		(51,119,705)		(963,533)		(129,139)		(10,962)
Earned revenue		520,264		-		-		-
		(50,599,441)		(963,533)		(129,139)		(10,962)
Net financing sources
Taxes		26,256,016		566,645		-		-
Interest		5,083,191		2,343		854		85
Assessments		1,371,411		-		134,081		11,559
Transfers-in
Treasury		270,090		-		-		-
DOL entities		102,079		-		-		-
Transfers-out
DOL entities		(4,092,672)		(54,239)		(1,970)		-
		28,990,115		514,749		132,965		11,644
Net results of operations		(21,609,326)		(448,784)		3,826		682
Net position, beginning of period		89,006,108		(7,232,865)		26,793		2,260
Net position, end of period	$	67,396,782	$	(7,681,649)	$	30,619	$	2,942

The financial position of each trust fund as of September 30, 2001 is shown below and on the following page

(Dollars in thousands)		Unemployment		Black Lung Disability		Longshore and Harbor Worker's		District of Columbia

Assets
Intra-governmental
Funds with U.S. Treasury	$	387,435	$	38,066	$	274	$	32
Investments		88,638,295		-		58,712		5,433
Accounts receivable, net
Due from other Federal agencies
for UCX and UCFE benefits		194,989		-		-		-
Interest receivable from investments		1,436,331		-		-		-
Total intra-governmental Accounts receivable, net		90,657,050		38,066		58,986		5,465
State unemployment tax		165,847		-		-		-
Due from reimbursable employers		326,373		-		-		-
Benefit overpayments		154,490		11,229		-		-
Other		-		1,100		3,538		197
Advances to states		169,095		-		-		-
Total assets	$	91,472,855	$	50,395	$	62,524	$	5,662

(Dollars in thousands)		Unemployment		Black Lung Disability		Longshore and Harbor Worker's		District of Columbia

Liabilities
Intra-governmental
Accounts payable to ETA - SUIESO	$	1,027,198	$	-	$	-	$	-
Advances from U.S. Treasury Amounts held for the Railroad		-		7,253,557		-		-
Retirement Board		32,381		-		-		-
Total intra-governmental		1,059,579		7,253,557		-		-
Accrued benefits		1,407,168		29,703		1,739		121
Other		-		-		33,992		3,281
Total liabilities		2,466,747		7,283,260		35,731		3,402
Net position
Cumulative results of operations		89,006,108		(7,232,865)		26,793		2,260
Total liabilities net position	$	91,472,855	$	50,395	$	62,524	$	5,662

The net results of operations of each trust fund for the year ended September 30, 2001 is shown below.

(Dollars in thousands)		Unemployment		Black Lung Disability		Longshore and Harbor Worker's		District of Columbia

Cost, net of earned revenues
Benefits	$	(28,544,470)	$	(391,087)		$(130,727)	$	(11,229)
Interest		(4,029)		(567,814)		-		-
Administrative		(88,579)		(51)		-		-
		(28,637,078)		(958,952)		(130,727)		(11,229)
Earned revenue		390,155		-		-		-
		(28,246,923)		(958,952)		(130,727)		(11,229)
Net financing sources
Taxes		26,712,510		522,197		-		-
Interest		5,764,079		1,296		1,891		157
Assessments		1,072,686		-		133,948		12,170
Transfers-in
DOL entities		7,300		-		-		-
Transfers-out
DOL entities		(3,539,681)		(51,897)		(1,981)		-
		30,016,894		471,596		133,858		12,327
Net results of operations		1,769,971		(487,356)		3,131		1,098
Net position, beginning of period		87,236,137		(6,745,509)		23,662		1,162
Net position, end of period	$	89,006,108	$	(7,232,865)	$	26,793	$	2,260