DOL Annual Report, Fiscal Year 2004 - Principal Financial Statements

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May 16, 2008 DOL Home > About DOL > Annual Report 2004 > Principal Financial Statements

DOL Annual Report, Fiscal Year 2004
Performance and Accountability Report

Principal Financial Statements Included in This Report

The principal financial statements included in this report have been prepared in accordance with the requirements of the Chief Financial Officers Act of 1990 (P.L. 101-576), the Government Management Reform Act of 1994 and the Office of Management and Budget's (OMB) Bulletin 01-09, Form and Content of Agency Financial Statements. The responsibility for the integrity of the financial information included in these statements rests with management of the U.S. Department of Labor (DOL). The audit of DOL's principal financial statements for FY 2004 and 2003 was performed by R. Navarro & Associates, Inc., Certified Public Accountants. The auditors' report accompanies the principal statements.

The Department's principal financial statements for fiscal years (FY) 2004 and 2003 consisted of the following:

The Consolidated Balance Sheets, which present as of September 30, 2004 and 2003 those resources owned or managed by DOL which are available to provide future economic benefits (assets); amounts owed by DOL that will require payments from those resources or future resources (liabilities) and residual amounts retained by DOL, comprising the difference (net position).
The Consolidated Statements of Net Cost, which present the net cost of DOL operations for the years ended September 30, 2004 and 2003. DOL's net cost of operations includes the gross costs incurred by DOL less any exchange revenue earned from DOL activities. Due to the complexity of DOL's operations, the classification of gross cost and exchange revenues by major program and suborganization is presented in Note 14 to the consolidated financial statements.
The Consolidated Statements of Changes in Net Position, which present the change in DOL's net position resulting from the net cost of DOL operations, budgetary financing sources other than exchange revenues and other financing sources for the years ended September 30, 2004 and 2003.
The Combined Statements of Budgetary Resources, which present the budgetary resources available to DOL during FY 2004 and 2003, the status of these resources at September 30, 2004 and 2003, and the outlay of budgetary resources for the years ended September 30, 2004 and 2003.
The Consolidated Statements of Financing, which reconcile the net cost of operations with the obligation of budgetary resources for the years ended September 30, 2004 and 2003.
The Consolidated Statements of Custodial Activity, which present the sources and disposition of non-exchange revenues collected or accrued by DOL on behalf of other recipient entities for the years ended September 30, 2004 and 2003.


CONSOLIDATED BALANCE SHEETS As of September 30, 2004 and 2003 (Dollars in Thousands)
					2004	2003

ASSETS
	Intra-governmental
		Funds with U.S. Treasury (Notes 1-C and 2)			$9,700,757	$9,615,513
		Investments (Notes 1-D and 3)			45,446,510	48,408,153
		Interest receivable from investments			580,180	726,160
		Accounts receivable (Notes 1-E and 4)			3,916,674	3,789,999
	Total intra-governmental				59,644,121	62,539,825

	Accounts receivable, net of allowance (Notes 1-E and 4)				1,127,034	939,688
	Advances (Notes 1-F and 5)				777,032	481,078
	Property, plant and equipment, net of depreciation (Notes 1-G and 6)				876,269	830,558

Total assets					$62,424,456	$64,791,149


LIABILITIES AND NET POSITION
Liabilities (Note 1-I)
	Intra-governmental
		Accounts payable			$22,207	$37,948
		Advances from U.S. Treasury (Notes 1-J and 8)			8,740,557	8,243,557
		Other liabilities (Note 11)			194,427	170,184
	Total intra-governmental				8,957,191	8,451,689

	Accounts payable				1,008,450	669,873
	Accrued leave (Note 1-K)				99,676	97,913
	Accrued benefits (Notes 1-L and 9)				1,344,009	1,638,594
	Future workers' compensation benefits (Notes 1-M and 10)				528,068	592,125
	Energy employees occupational illness compensation benefits (Note 1-N)				2,793,823	2,222,574
	Other liabilities (Note 11)				239,333	270,125

Total liabilities					14,970,550	13,942,893

Net position (Note 1-R)
	Unexpended appropriations				8,299,897	8,587,666
	Cumulative results of operations				39,154,009	42,260,590

Total net position					47,453,906	50,848,256

Total liabilities and net position					$62,424,456	$64,791,149



CONSOLIDATED STATEMENTS OF NET COST For the Years Ended September 30, 2004 and 2003 (Dollars in Thousands)
					2004	2003
NET COST OF OPERATIONS (Notes 1-S and 14)

CROSSCUTTING PROGRAMS

Income maintenance
	Intra-governmental				$972,951	$852,394
	With the public				50,464,699	60,808,540
Total cost					51,437,650	61,660,934
	Less earned revenue				(3,274,386)	(3,015,750)
		Net program cost			48,163,264	58,645,184
Employment and training
	Intra-governmental				44,642	43,709
	With the public				6,389,375	7,198,735
Total cost					6,434,017	7,242,444
	Less earned revenue				(17,140)	(17,630)
		Net program cost			6,416,877	7,224,814
Labor, employment and pension standards
	Intra-governmental				137,019	138,110
	With the public				563,409	459,858
Total cost					700,428	597,968
	Less earned revenue				(11,475)	(10,644)
		Net program cost			688,953	587,324
Worker safety and health
	Intra-governmental				163,696	158,339
	With the public				638,194	642,819
Total cost					801,890	801,158
	Less earned revenue				(5,207)	(5,351)
		Net program cost			796,683	795,807

OTHER PROGRAMS

Statistics
	Intra-governmental				165,549	168,252
	With the public				372,556	359,768
Total cost					538,105	528,020
	Less earned revenue				(5,504)	(4,438)
		Net program cost			532,601	523,582

Costs not assigned to programs					98,721	126,139
	Less earned revenue not attributed to programs				(20,643)	(29,669)
		Net cost not assigned to programs			78,078	96,470

Net cost of operations					$56,676,456	$67,873,181




CONSOLIDATED STATEMENTS OF CHANGES IN NET POSITION For the Years Ended September 30, 2004 and 2003 (Dollars in Thousands)


				2004		2003
				Cumulative		Cumulative
				Results of	Unexpended	Results of	Unexpended
				Operations	Appropriations	Operations	Appropriations

Beginning balances				$42,260,590	$8,587,666	$61,929,810	$9,343,624

Budgetary financing
sources (Note 1-T)
	Appropriations received				11,510,488		10,891,922
	Appropriations transferred				(646,727)		(702,501)
	Appropriations not available			-	(153,632)	-	(190,679)
	Appropriations used			10,997,898	(10,997,898)	10,754,700	(10,754,700)
	Nonexchange revenue (Note 15)
		Employer taxes		37,376,035		31,698,813
		Interest		2,525,135		3,454,045
		Assessments		145,564		137,723
		Reimbursement of
		unemployment benefits		2,411,887		2,050,363
	Total nonexchange revenue			42,458,621		37,340,944
	Transfers without reimbursement (Note 16)			3,000		3,000

Other financing sources (Note 1-U)
	Imputed financing from costs absorbed by others			110,344		106,003
	Transfers without reimbursement (Note 16)			12		(686)

Total financing Sources				53,569,875	(287,769)	48,203,961	(755,958)

Net cost of operations				(56,676,456)		(67,873,181)

Ending balances				$39,154,009	$8,299,897	$42,260,590	$8,587,666


COMBINED STATEMENTS OF BUDGETARY RESOURCES For the Years Ended September 30, 2004, and 2003 (Dollars in Thousands)

					2004	2003

BUDGETARY RESOURCES
	Budget authority
		Appropriations received			$58,039,574	$68,937,478
		Net transfers			(19,879)	(80,878)
	Unobligated balance
		Beginning of period			3,173,996	2,971,602
		Net transfers			(37,592)	(732)
	Spending authority from offsetting collections
		Earned
			Collected		2,645,532	2,633,039
			Receivable from Federal sources		(24,109)	(45,828)
		Change in unfilled customer orders
			Advance received		(5,534)	17,650
			Without advance from Federal sources		-	(2,396)
		Transfers from trust funds			3,884,725	4,012,226
	Total spending authority from offsetting collections				6,500,614	6,614,691
	Recoveries of prior year obligations				463,631	308,966
	Temporarily not available pursuant to public law				(22,661)	-
	Permanently not available				(207,353)	(250,856)

Total budgetary resources					$67,890,330	$78,500,271

STATUS OF BUDGETARY RESOURCES
	Obligations incurred (Note 17)
		Direct			$61,566,245	$72,731,481
		Reimbursable			2,746,299	2,595,002
	Total obligations incurred				64,312,544	75,326,483
	Unobligated balances available
		Apportioned			2,344,404	2,423,022
		Exempt from apportionment			(5)	(208)
		Other available			212,708	207,400
	Unobligated balances not available				1,020,679	543,574

Total status of budgetary resources					$67,890,330	$78,500,271

RELATIONSHIP OF OBLIGATIONS TO OUTLAYS
	Obligated balance, net, beginning				$9,364,834	$10,538,670
	Obligated balance transferred, net				-	1,304,116
	Obligated balance, net, ending
		Accounts receivable			(1,344,626)	(1,336,589)
		Undelivered orders			6,227,548	7,112,519
		Accounts payable			3,628,904	3,588,904
	Outlays
		Disbursements			64,693,879	76,534,321
		Collections			(6,492,578)	(6,960,265)
	Total outlays				58,201,301	69,574,056
	Offsetting receipts				(1,549,472)	(1,277,239)

Net outlays					$56,651,829	$68,296,817


CONSOLIDATED STATEMENTS OF FINANCING As of September 30, 2004 and 2003 (Dollars in Thousands)

					2004	2003

RESOURCES USED TO FINANCE ACTIVITIES
Budgetary resources obligated
	Obligations incurred				$64,312,544	$75,326,483
	Recoveries of prior year obligations				(463,631)	(308,966)
	Less spending authority from offsetting collections				(6,500,614)	(6,614,691)
	Obligations, net of offsetting collections and recoveries				57,348,299	68,402,826
Other resources
	Imputed financing from costs absorbed by others				110,344	106,003
	Transfers, net				3,012	2,314
	Exchange revenue not in budget				(71,873)	(78,398)
	Trust fund exchange revenue				(823,315)	(613,147)

Total resources used to finance activities					56,566,467	67,819,598

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 received or provided				583,394	931,663
	Resources that finance the acquisition of assets				(102,862)	(101,221)
	Allocation transfers to other agencies