DOL Annual Report, Fiscal Year 2005 - Principal Financial Statements

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May 22, 2008 DOL Home > About DOL > Annual Report 2005 > Principal Financial Statements

DOL Annual Report, Fiscal Year 2005
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) Circular A-136, Financial Reporting Requirements.EThe 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 2005 and 2004 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) 2005 and 2004 consisted of the following

The Consolidated Balance Sheets, which present as of September 30, 2005 and 2004 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, 2005 and 2004. 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, 2005 and 2004.
The Combined Statements of Budgetary Resources, which present the budgetary resources available to DOL during FY 2005 and 2004, the status of these resources at September 30, 2005 and 2004, and the outlay of budgetary resources for the years ended September 30, 2005 and 2004.
The Consolidated Statements of Financing, which reconcile the net cost of operations with the obligation of budgetary resources for the years ended September 30, 2005 and 2004.
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, 2005 and 2004.


CONSOLIDATED BALANCE SHEETS As of September 30, 2005 and 2004 (Dollars in Thousands)
					2005	2004

ASSETS
	Intra-governmental
		Funds with U.S. Treasury (Notes 1-C and 2)			$9,219,660	$9,700,757
		Investments (Notes 1-D and 3)			54,952,644	45,446,510
		Interest receivable from investments			637,443	580,180
		Accounts receivable (Notes 1-E and 4)			3,991,270	3,916,674
		Advances (Notes 1-F and 5)			10,812	—
	Total intra-governmental				59,644,121	59,644,121

	Accounts receivable, net of allowance (Notes 1-E and 4)				1,043,018	1,127,034
	Advances (Notes 1-F and 5)				584,139	777,032
	Property, plant and equipment, net of depreciation (Notes 1-G and 6)				1,023,422	876,269

Total assets					$71,462,408	$62,424,456


LIABILITIES AND NET POSITION
Liabilities (Note 1-I)
	Intra-governmental
		Accounts payable			$16,429	$22,207
		Advances from U.S. Treasury (Notes 1-J and 8)			9,186,557	8,740,557
		Other liabilities (Note 11)			206,101	194,427
	Total intra-governmental				9,409,087	8,957,191

	Accounts payable				1,111,031	1,008,450
	Accrued leave (Note 1-K)				94,852	99,676
	Accrued benefits (Notes 1-L and 9)				1,147,658	1,344,009
	Future workers' compensation benefits (Notes 1-M and 10)				564,305	528,068
	Energy employees occupational illness compensation benefits (Note 1-N)				7,436,243	2,793,823
	Other liabilities (Note 11)				263,233	239,333

Total liabilities					20,026,409	14,970,550

Net position (Note 1-R)
	Unexpended appropriations				8,115,461	8,299,897
	Cumulative results of operations				43,320,538	39,154,009

Total net position					51,435,999	47,453,906

Total liabilities and net position					$71,462,408	$62,424,456



CONSOLIDATED STATEMENTS OF NET COST For the Years Ended September 30, 2005 and 2004 (Dollars in Thousands)
					2005	2004
NET COST OF OPERATIONS (Notes 1-S and 14)

CROSSCUTTING PROGRAMS

Income maintenance
	Gross cost				$45,380,694	$51,437,650
	Less earned revenue				(3,144,410)	(3,274,386)
		Net program cost			42,236,284	48,163,264
Employment and training
	Gross cost				$6,027,121	$6,434,017
	Less earned revenue				(17,737)	(17,140)
		Net program cost			6,009,384	6,416,877
Labor, employment and pension standards
	Gross cost				$724,211	$700,428
	Less earned revenue				(9,860)	(11,475)
		Net program cost			714,351	688,953
Worker safety and health
	Gross cost				$798,110	$801,890
	Less earned revenue				(3,690)	(5,207)
		Net program cost			794,420	796,683

OTHER PROGRAMS

Statistics
	Gross cost				$531,675	$538,105
	Less earned revenue				(6,664)	(5,504)
		Net program cost			525,011	532,601

Costs not assigned to programs					95,244	98,721
	Less earned revenue not attributed to programs				(10,800)	(20,643)
		Net cost not assigned to programs			84,444	78,078

Net cost of operations					$50,363,894	$56,676,456




CONSOLIDATED STATEMENTS OF CHANGES IN NET POSITION For the Years Ended September 30, 2005 and 2004 (Dollars in Thousands)


				2005		2004
				Cumulative		Cumulative
				Results of	Unexpended	Results of	Unexpended
				Operations	Appropriations	Operations	Appropriations

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

Budgetary financing
sources (Note 1-T)
	Appropriations received				11,100,600		11,510,488
	Appropriations transferred				(622,286)		(646,727)
	Appropriations not available			—	(326,001)	—	(153,632)
	Appropriations used			10,336,749	(10,336,749)	10,997,898	(10,997,898)
	Nonexchange revenue (Note 15)
		Employer taxes		40,571,621		37,376,035
		Interest		2,593,415		2,525,135
		Assessments		145,315		145,564
		Reimbursement of
		unemployment benefits		1,857,193		2,411,887
	Total nonexchange revenue			45,167,544		42,458,621
	Transfers without reimbursement (Note 16)			3,000		3,000

Other financing sources (Note 1-U)
	Donations			41,760		-
	Imputed financing from costs absorbed by others			108,742		110,344
	Transfers without reimbursement (Note 16)			(1,127,372)		12

Total financing Sources				54,530,423	(184,436)	53,569,875	(287,769)

Net cost of operations				(50,363,894)		(56,676,456)

Ending balances				$43,320,538	$8,115,461	$39,154,009	$8,299,897


COMBINED STATEMENTS OF BUDGETARY RESOURCES For the Years Ended September 30, 2005, and 2004 (Dollars in Thousands)

					2005	2004

BUDGETARY RESOURCES
	Budget authority
		Appropriations received			$57,248,865	$58,039,574
		Borrowing authority			446,000	497,000
		Net transfers			(387,115)	(516,879)
	Unobligated balance
		Beginning of period			3,577,791	3,173,996
		Net transfers			(215)	(37,592)
	Spending authority from offsetting collections
		Earned
			Collected		2,545,382	2,645,532
			Receivable from Federal sources		57,700	(24,109)
		Change in unfilled customer orders
			Advance received		10,756	(5,534)
		Transfers from trust funds			3,873,716	3,884,725
	Total spending authority from offsetting collections				6,487,554	6,500,614
	Recoveries of prior year obligations				408,672	463,631
	Temporarily not available pursuant to public law				(9,296,717)	(22,661)
	Permanently not available				(496,197)	(207,353)

Total budgetary resources					$57,988,638	$67,890,330

STATUS OF BUDGETARY RESOURCES
	Obligations incurred (Note 17)
		Direct			$51,333,636	$61,566,245
		Reimbursable			2,782,927	2,746,299
	Total obligations incurred				54,116,563	64,312,544
	Unobligated balances available
		Apportioned			2,093,925	2,344,404
		Exempt from apportionment			—	(5)
		Other available			175,310	212,708
	Unobligated balances not available				1,602,840	1,020,679

Total status of budgetary resources					$57,988,638	$67,890,330

RELATIONSHIP OF OBLIGATIONS TO OUTLAYS
	Obligated balance, net, beginning				$8,511,826	$9,364,834
	Obligated balance transferred, net				—	—
	Obligated balance, net, ending
		Accounts receivable			(1,473,474)	(1,344,626)
		Undelivered orders			5,879,080	6,227,548
		Accounts payable			3,603,546	3,628,904
	Outlays
		Disbursements			54,081,511	64,693,879
		Collections			(6,358,706)	(6,492,578)
	Total outlays				47,722,805	58,201,301
	Offsetting receipts				(829,392)	(1,549,472)

Net outlays					$46,893,413	$56,651,829


CONSOLIDATED STATEMENTS OF FINANCING As of September 30, 2005 and 2004 (Dollars in Thousands)

					2005	2005

RESOURCES USED TO FINANCE ACTIVITIES
Budgetary resources obligated
	Obligations incurred				$54,116,563	$64,312,544
	Recoveries of prior year obligations				(408,672)	(463,631)
	Less spending authority from offsetting collections				(6,487,554)	(6,500,614)
	Obligations, net of offsetting collections and recoveries				47,220,337	57,348,299
Other resources
	Imputed financing from costs absorbed by others				108,742	110,344
	Transfers, net				(1,124,372)	3,012
	Exchange revenue not in budget				(6,874)	(71,873)
	Trust fund exchange revenue				(783,657)	(823,315)

Total resources used to finance activities					45,414,176	56,566,467

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				536,240	583,394
	Resources that finance the acquisition of assets				(167,252)	(102,862)
	Allocation transfers to other agencies				(198,524)	(77,215)
	Other resources that do not affect net cost of operations				1,128,086	(800,760)

Total resources used to finance items not part of the net cost of operations					1,298,550	(397,443)

Total resources used to finance the net cost of operations					46,712,726	56,169,024

COMPONENTS OF THE NET COST OF OPERATIONS THAT WILL NOT REQUIRE OR GENERATE RESOURCES IN THE CURRENT PERIOD
	Components requiring or generating resources in future periods
		Increase in annual leave liability			(4,823)	1,763
		Increase (decrease) in employee benefits and retirement liabilities			3,556,208	495,628
		Other			26,183	(