DOL Annual Report, Fiscal Year 2004 - Principal Financial Statements

DOL Annual Report, Fiscal Year 2004
Performance and Accountability Report

Principal Financial Statements Included in This Report

NOTE 15 - NON-EXCHANGE REVENUE

Non-exchange revenues reported on the Consolidated Statement of Changes in Net Position in 2004 and 2003 consisted of the following:

(Dollars in thousands)			2004	2003

Employer taxes
	Unemployment Trust Fund
		Federal unemployment taxes	$6,613,154	$6,514,194
		State unemployment taxes	30,196,902	24,678,538
			36,810,056	31,192,732
	Black Lung Disability Trust Fund excise taxes		565,979	506,081
			37,376,035	31,698,813

Interest
	Unemployment Trust Fund		2,522,421	3,447,565
	Longshore and Harbor Workers' Trust Fund		421	511
	District of Columbia Trust Fund		31	48
	Panama Canal Commission Compensation Fund		1,299	6,155
	Energy Employees Occupational Illness Compensation Fund		655	263
	Black Lung Disability Trust Fund		308	(497)
			2,525,135	3,454,045
Assessments
	Longshore and Harbor Workers' Trust Fund		135,813	127,661
	District of Columbia Trust Fund		10,352	9,510
	Other		(601)	552
			145,564	137,723

Reimbursement of unemployment benefits from state and local governments and non-profit organizations to the Unemployment Trust Fund			2,411,887	2,050,363

			$42,458,621	$37,340,944

NOTE 16 - TRANSFERS WITHOUT REIMBURSEMENT

Transfers from (to) other Federal agencies in 2004 and 2003 consisted of the following:

(Dollars in thousands)		2004	2003

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	1,063	2,123
	To General Services Administration	(1,051)	(2,809)
		12	(686)

		$3,012	$2,314

NOTE 17 - STATUS OF BUDGETARY RESOURCES

A. Apportionment Categories of Obligations Incurred

Obligations incurred reported on the Combined Statement of Budgetary Resources in 2004 and 2003 consisted of the following:

(Dollars in thousands)		2004	2003

Direct Obligations
	Category A	$3,961,569	$3,815,410
	Category B	10,399,454	10,265,880
	Exempt from apportionment	47,205,222	58,650,191

Total direct obligations		61,566,245	72,731,481

Reimbursable Obligations
	Category A	154,951	150,970
	Category B	2,591,348	2,444,032

Total reimbursable obligations		2,746,299	2,595,002

		$64,312,544	$75,326,483

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, 2004 has not been published as of the issue date of these financial statements. This document will be available in February 2005. In addition, the reconciliation of the SF133 and the Statement of Budgetary Resources will be performed in Fiscal Year 2005 after the Department receives the final SF 133 reports from Trust Funds and allocated accounts.

A reconciliation of budgetary resources, obligations incurred and outlays, as presented in the Consolidated Statement of Budgetary Resources, to amounts included in the Budget of the United States Government for the year ended September 30, 2003 is shown below.

(Dollars in millions)		Budgetary Resources	Obligations Incurred	Total Outlays

Consolidated Statement of Budgetary Resources		$78,500	$75,326	$69,574

	Pension Benefit Guaranty Corporation reported separately	14,764	2,546	229
	Special benefits for disabled coal miners reported by the Social Security Administration	410	420	421
	Reimbursements recognized as budgetary resources in the budget	639	639	639
	Accruals not reported in the budget	686	686	-
	Amounts in the budget not included in the Consolidated Statement of Budgetary Resources	(43)	(43)	-
	Amounts in the Consolidated Statement of Budgetary Resources not included in the budget	-	-	9
	Expired accounts	(460)	(177)	-
	Other	(4)	(3)	(3)

Budget of the United States Government		$94,492	$79,394	$70,869

Unemployment Trust Fund receipts are reported as budget authority in the Consolidated Statement of Budgetary Resources. The portion of UTF receipts collected in the current year in excess of amounts needed to pay benefits and other valid obligations are precluded by law from being available for obligation. Therefore, these excess receipts are not classified as budgetary resources in the Consolidated Statement of Budgetary Resources. Conversely, when obligations exceed receipts in the current year, amounts are drawn from unavailable collections to meet these obligations. Cumulative excess receipts 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.

The cumulative amount of excess UTF receipts are denoted as unavailable collections in the Budget of the United States Government. The cumulative amount of these excess receipts at September 30, 2003, reclassified from unobligated balances to UTF unavailable collections, is presented below.

(Dollars in millions)		2003

Unemployment Trust Fund unavailable collections, beginning		$65,021

	Budget authority from current year appropriations	37,584
	Less obligations	(57,116)

Excess of obligations over budget authority		(19,532)

Unemployment Trust Fund unavailable collections, ending		$45,489

NOTE 18 - CUSTODIAL REVENUES

Custodial revenues in 2004 consisted of the following:

(Dollars in thousands)		Cash Collections	Less Refunds	Net Cash Collections	Increase (Decrease) in Amounts to be Collected	Total Revenues

Civil monetary penalties
	OSHA	$60,390	-	$60,390	$917	$61,307
	MSHA	17,399	-	17,399	6,017	23,416
	EBSA	13,373	-	13,373	843	14,216
	ESA	24,370	(318)	24,052	(3,543)	20,509
		115,532	(318)	115,214	4,234	119,448

ETA disallowed grant costs		15,526	(1,808)	13,718	(6,198)	7,520
Other		581	(80)	501	-	501

		$131,639	$(2,206)	$129,433	$(1,964)	$127,469


Custodial revenues in 2003 consisted of the following:



(Dollars in thousands)		Cash Collections	Less Refunds	Net Cash Collections	Increase (Decrease) in Amounts to be Collected	Total Revenues

Civil monetary penalties
	OSHA	$59,563	-	$59,563	$(985)	$58,578
	MSHA	16,628	-	16,628	4,532	21,160
	EBSA	9,450	-	9,450	(1,520)	7,930
	ESA	23,789	(96)	23,693	136	23,829
		109,430	(96)	109,334	2,163	111,497

ETA disallowed grant costs		4,853	(6)	4,847	128	4,975
Other		5,628	-	5,628	-	5,628

		$119,911	$(102)	$119,809	$2,291	$122,100

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, 2004 is shown below.

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

Assets

	Intra-governmental
		Funds with U.S. Treasury		$157,591	$43,777	$465	$2
		Investments		45,239,381	-	69,653	5,007
		Accounts receivable, net
			Due from other Federal agencies
			for UCX and UCFE benefits	333,918	-	-	-
		Interest receivable from investments		577,341	-	-	-
	Total intra-governmental			46,308,231	43,777	70,118	5,009

	Accounts receivable, net
		State unemployment tax		198,872	-	-	-
		Due from reimbursable employers		620,416	-	-	-
		Benefit overpayments		196,156	9,651	-	-
		Other		-	1,003	1,317	280
	Advances to states			623,172	-	-	-

Total assets				$47,946,847	$54,431	$71,435	$5,289

Liabilities
	Intra-governmental
		Accounts payable to DOL agencies		$1,336,263	-	-	-
		Advances from U.S. Treasury		-	8,740,557	-	-
		Amounts held for the Railroad
		Retirement Board		86,209	-	-	-
	Total intra-governmental			1,422,472	8,740,557	-	-

	Accrued benefits			1,128,523	25,318	3,155	283
	Other			-	-	44,138	3,979
Total liabilities				2,550,995	8,765,875	47,293	4,262

Net position
	Cumulative results of operations			45,395,852	(8,711,444)	24,142	1,027

Total liabilities and net position				$47,946,847	$54,431	$71,435	$5,289

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

Cost, net of earned revenues
	Benefits			$(41,424,320)	$(344,340)	$(133,560)	$(10,800)
	Interest			(3,421)	(650,579)	-	-
	Administrative			(293,243)	(60)	-	-
				(41,720,984)	(994,979)	(133,560)	(10,800)
	Earned revenue			823,315	-	-	-
				(40,897,669)	(994,979)	(133,560)	(10,800)

Net financing sources
	Taxes			36,810,056	565,979	-	-
	Interest			2,522,421	309	421	30
	Assessments			2,411,887	-	135,813	10,352
	Transfers-in
		Treasury		80,000	-	-	-
		DOL Entities		721,054	-	-	-
	Transfers-out
		DOL entities		(3,829,105)	(55,743)	(2,021)	-
				38,716,313	510,545	134,213	10,382
	Net results of operations			(2,181,356)	(484,434)	653	(418)

Net position, beginning of period				47,577,208	(8,227,010)	23,489	1,445

Net position, end of period				$45,395,852	$(8,711,444)	$24,142	$1,027



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

Assets

	Intra-governmental
		Funds with U.S. Treasury		$(59,434)	$30,432	$56	$4
		Investments		48,188,383	-	64,348	4,898
		Accounts receivable, net
			Due from other Federal agencies
			for UCX and UCFE benefits	254,677	-	-	-
		Interest receivable from investments		723,114	-	-	-
	Total intra-governmental			49,106,740	30,432	64,404	4,902

	Accounts receivable, net
		State unemployment tax		141,918	-	-	-
		Due from reimbursable employers		502,470	-	-	-
		Benefit overpayments		179,479	10,638	-	-
		Other		-	1,131	2,541	87
	Advances to states			471,592	-	-	-

Total assets				$50,402,199	$42,201	$66,945	$4,989



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

Liabilities
	Intra-governmental
		Accounts payable to DOL agencies		$1,304,116	-	-	-
		Advances from U.S. Treasury		-	8,243,557	-	-
		Amounts held for the Railroad
		Retirement Board		55,806	-	-	-
	Total intra-governmental			1,359,922	8,243,557	-	-

	Accrued benefits			1,465,069	25,654	2,172	175
	Other			-	-	41,284	3,369
Total liabilities				2,824,991	8,269,211	43,456	3,544

Net position
	Cumulative results of operations			47,577,208	(8,227,010)	23,489	1,445

Total liabilities and net position				$50,402,199	$42,201	$66,945	$4,989



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

Cost, net of earned revenues
	Benefits			$(53,417,598)	$(375,031)	$(133,286)	$(11,055)
	Interest			(3,350)	(620,582)	-	-
	Administrative			(386,531)	(59)	-	-
				(53,807,479)	(995,672)	(133,286)	(11,055)
	Earned revenue			613,146	-	-	-
				(53,194,333)	(995,672)	(133,286)	(11,055)

Net financing sources
	Taxes			31,192,732	506,081	-	-
	Interest			3,447,565	(497)	511	48
	Assessments			2,050,363	-	127,661	9,510
	Transfers-out
		DOL entities		(3,315,901)	(55,273)	(2,016)	-
				33,374,759	450,311	126,156	9,558
	Net results of operations			(19,819,574)	(545,361)	(7,130)	(1,497)

Net position, beginning of period				67,396,782	(7,681,649)	30,619	2,942

Net position, end of period				$47,577,208	$(8,227,010)	$23,489	$1,445