DOL Annual Report, Fiscal Year 2005 - Principal Financial Statements

DOL Annual Report, Fiscal Year 2005
Performance and Accountability Report

Principal Financial Statements Included in This Report

NOTE 2 — FUNDS WITH U.S. TREASURY

Funds with U.S. Treasury at September 30, 2005 consisted of the following:

	Entity Assets
(Dollars in thousands)	Unobligated Balance Available	Unobligated Balance Unavailable	Obligated Balance Not Yet Disbursed	Total Entity Assets	Non-entity Assets	Total

Revolving funds	$3,900	—	$27,682	$31,582	—	$31,582
Trust funds	107,154	16,921	(338,941)	(214,866)	(707)	(215,573)
Appropriated funds	2,290,830	1,187,214	5,865,841	9,343,885	—	9,343,885
Other	—	—	—	—	59,766	59,766

	$2,401,884	$1,204,135	$5,554,582	$9,160,601	$59,059	$9,219,660


Funds with U.S. Treasury at September 30, 2004 consisted of the following:

	Entity Assets
(Dollars in thousands)	Unobligated Balance Available	Unobligated Balance Unavailable	Obligated Balance Not Yet Disbursed	Total Entity Assets	Non-entity Assets	Total

Revolving funds	$3,900	—	$24,280	$28,180	—	$28,180
Trust funds	149,034	53	52,908	201,995	2	201,997
Appropriated funds	2,566,402	655,579	6,179,624	9,401,605	—	9,401,605
Other	—	—	—	—	68,975	68,975

	$2,719,336	$655,632	$6,256,812	$9,631,780	$68,975	$9,700,757

NOTE 3 — INVESTMENTS

Investments at September 30, 2005 consisted of the following:

		Face	Premium	Net	Market
(Dollars in thousands)		Value	(Discount)	Value	Value

Unemployment Trust Fund
	Non-marketable
	U.S. Treasury Certificates of Indebtedness
	4.625% maturing June 30, 2006	$2,285,274	—	$2,285,274	$2,285,274
	Special issue U.S. Treasury Bonds
	4.625% maturing June 30, 2007	26,000,000	—	26,000,000	26,000,000
	4.625% maturing June 30, 2008	19,299,158	—	19,299,158	19,299,158
	5.500% maturing June 30, 2006	7,221,451	—	7,221,451	7,221,451
		54,805,883	—	54,805,883	54,805,883

Panama Canal Commission
Compensation Fund
	Marketable
	U.S. Treasury Notes
	3.625% to 6.875% various maturities	32,307	711	33,018	32,784
	U.S. Treasury Bonds
	10.375% to 14.000% various maturities	44,232	4,941	49,173	49,798
		76,539	5,652	82,191	82,582

Longshore and Harbor Workers' Trust Fund
	Non-marketable
	One Day Deposit
	3.460% to 1.890% maturing October 3, 2005	60,000	—	60,000	60,000

District of Columbia Trust Fund
	Non-marketable
	One Day Deposit
	3.460% to 1.790% maturing October 3, 2005	3,000	—	3,000	3,000

Backwage Restitution Fund
	Marketable
	U.S. Treasury Bill
	2.920% to 3.160% maturing October 20, 2005	1,625	(55)	1,570	1,570

		$54,947,047	$5,597	$54,952,644	$54,953,035


Entity investments		$54,850,990	$5,652	$54,856,642	$54,857,033
Non-entity investments		96,057	(55)	96,002	96,002

		$54,947,047	$5,597	$54,952,644	$54,953,035


Investments at September 30, 2005 consisted of the following:
Unemployment Trust Fund
	Non-marketable
	U.S. Treasury Certificates of Indebtedness
	4.375% maturing June 30, 2005	$10,238,570	—	$10,238,570	$10,238,570
	Special issue U.S. Treasury Bonds
	4.375% maturing June 30, 2005	4,210,119	—	4,210,119	4,210,119
	6.250% maturing June 30, 2005	22,266,681	—	22,266,681	22,266,681
	5.500% maturing June 30, 2006	8,524,011	—	8,524,011	8,524,011
		45,239,381	—	45,239,381	45,239,381

Panama Canal Commission
Compensation Fund
	Marketable
	U.S. Treasury Notes
	3.625% to 7.875% various maturities	27,685	450	28,135	28,607
	U.S. Treasury Bonds
	10.375% to 14.000% various maturities	49,428	6,494	55,922	58,767
		77,113	6,944	84,057	87,374

Energy Employees Occupational Illness
Compensation Fund
	Marketable
	U.S. Treasury Bill
	1.720% maturing October 1, 2004	46,833	—	46,833	46,833

Longshore and Harbor Workers' Trust Fund
	Marketable
	U.S. Treasury Bills
	1.340% to 1.890% various maturities	69,863	(210)	69,653	69,653

District of Columbia Trust Fund
	Marketable
	U.S. Treasury Bills
	1.320% to 1.790% various maturities	5,020	(13)	5,007	5,007

Backwage Restitution Fund
	Marketable
	U.S. Treasury Bill
	1.543% to 1.553% various maturities	1,593	(14)	1,579	1,579

		$45,439,803	$6,707	$45,446,510	$45,449,827


Entity investments		$45,353,104	$6,707	$45,359,811	$45,363,128
Non-entity investments		86,699	—	86,699	86,699

		$45,439,803	$6,707	$45,446,510	$45,449,827

NOTE 4 — ACCOUNTS RECEIVABLE, NET OF ALLOWANCE

Accounts receivable at September 30, 2005 consisted of the following:

(Dollars in thousands)				Gross Receivables	Allowance	Net Receivables

Entity intra-governmental assets
	Due for UCFE and UCX benefits			$344,073	—	$344,073
	Due for workers' compensation benefits			3,640,388	—	3,640,388
	Other			6,809	—	6,809
				3,991,270	—	3,991,270

Entity assets
	State unemployment taxes			871,549	(636,367)	235,182
	Due from reimbursable employers			547,623	(31,513)	516,110
	Benefit overpayments			1,949,359	(1,737,979)	211,380
	Other			10,264	(2,314)	7,950
				3,378,795	(2,408,173)	970,622

Non-entity assets
	Fines and penalties			113,075	(55,807)	57,268
	Backwages			27,789	(12,661)	15,128
				140,864	(68,468)	72,396
				3,519,659	(2,476,641)	1,043,018

				$7,510,929	$(2,476,641)	$5,034,288


Changes in the allowance for doubtful accounts during 2005 consisted of the following:



(Dollars in thousands)		Balance at September 30, 2004	Write-offs	Revenue Adjustment	Bad Debt	Balance at September 30, 2005

Entity assets
State unemployment taxes		$(556,917)	$334,716	$(414,166)	—	$(636,367)
Due from reimbursable employers		(39,404)	27,088	(19,197)	—	(31,513)
Benefit overpayments		(1,862,710)	524,158	—	(399,427)	(1,737,979)
Other		(2,121)	234	—	(427)	(2,314)
		(2,461,152)	886,196	(433,363)	(399,854)	(2,408,173)

Non-entity assets
Fines and penalties		(56,326)	20,135	(19,616)	—	(55,807)
Backwages		(10,389)	—	—	(2,272)	(12,661)
		(66,715)	20,135	(19,616)	(2,272)	(68,468)

		$(2,527,867)	$906,331	$(452,979)	$(402,126)	$(2,476,641)


Accounts receivable at September 30, 2004 consisted of the following:


(Dollars in thousands)				Gross Receivables	Allowance	Net Receivables

Entity intra-governmental assets
	Due for UCFE and UCX benefits			$333,918	—	$333,918
	Due for workers' compensation benefits			3,572,765	—	3,572,765
	Other			9,991	—	9,991
				3,916,674	—	3,916,674

Entity assets
	State unemployment taxes			755,789	(556,917)	198,872
	Due from reimbursable employers			659,820	(39,404)	620,416
	Benefit overpayments			2,091,586	(1,862,710)	228,876
	Other			6,991	(2,121)	4,870
				3,514,186	(2,461,152)	1,053,034

Non-entity assets
	Fines and penalties			115,869	(56,326)	59,543
	Backwages			24,846	(10,389)	14,457
				140,715	(66,715)	74,000
				3,654,901	(2,527,867)	1,127,034

				$7,571,575	$(2,527,867)	$5,043,708


Changes in the allowance for doubtful accounts during 2004 consisted of the following:



(Dollars in thousands)		Balance at September 30, 2003	Write-offs	Revenue Adjustment	Bad Debt	Balance at September 30, 2004

Entity assets
State unemployment taxes		$(524,043)	$307,970	$(340,844)	—	$(556,917)
Due from reimbursable employers		(36,072)	18,974	(22,306)	—	(39,404)
Benefit overpayments		(1,881,135)	688,846	—	(670,421)	(1,862,710)
Other		(481)	1,061	—	(2,701)	(2,121)
		(2,441,731)	1,016,851	(363,150)	(673,122)	(2,461,152)

Non-entity assets
Fines and penalties		(51,700)	8,504	(13,130)	—	(56,326)
Backwages		(921)	—	—	(9,468)	(10,389)
		(52,621)	8,504	(13,130)	(9,468)	(66,715)

		$(2,494,352)	$1,025,355	$(376,280)	$(682,590)	$(2,527,867)

NOTE 5 — ADVANCES

Advances at September 30, 2005 and 2004 consisted of the following:

(Dollars in thousands)				2005	2004

Intra-governmental
	Advances to the Bureau of the Census			$10,812	—
Advances to states for UI benefit payments				489,177	623,172
Advances to grantees and contractors to finance future DOL program expenditures				89,520	146,463
Other				5,442	7,397

				$594,951	$777,032



NOTE 6 — PROPERTY, PLANT AND EQUIPMENT, NET OF DEPRECIATION

Property, plant and equipment at September 30, 2005 and 2004 consisted of the following:

		2005			2004

(Dollars in thousands)		Cost or Basis	Accumulated Depreciation/ Amortization	Net Book Value	Net Book Value

Structures, facilities and improvements
	Structures and facilities	$884,117	$(356,235)	$527,882	$464,054
	Improvements to leased facilities	385,067	(213,858)	171,209	150,788
		1,269,184	(570,093)	699,091	614,842
Furniture and equipment
	Equipment held by contractors	162,064	(156,852)	5,212	6,026
	Furniture and equipment	63,135	(37,286)	25,849	29,310
		225,199	(194,138)	31,061	35,336

ADP software		177,463	(69,656)	107,807	52,347
Construction-in-progress		94,464	—	94,464	106,668
Land		90,999	—	90,999	67,076

		$1,857,309	$(833,887)	$1,023,422	$876,269



NOTE 7 — NON-ENTITY ASSETS

Non-entity assets consisted of the following at September 30, 2005 and 2004:

(Dollars in thousands)				2005	2005

Intra-governmental
	Funds with U.S. Treasury			$59,059	$68,977
	Investments			96,002	86,699
	Interest receivable from investments			1,095	1,086
				156,156	156,762
Accounts receivable, net of allowance				72,396	74,000

				$228,552	$230,762

NOTE 8 — ADVANCES FROM U.S. TREASURY

Advances from U.S. Treasury to the Black Lung Disability Trust Fund during 2005 consisted of the following:

(Dollars in thousands)		Balance at September 30, 2004	Net Borrowing	Balance at September 30, 2005

Intra-governmental
	Borrowing from the Treasury	$8,740,557	$446,000	$9,186,557

		$8,740,557	$446,000	$9,186,557


Advances from U.S. Treasury to the Black Lung Disability Trust Fund during 2004 consisted of the following:

(Dollars in thousands)		Balance at September 30, 2003	Net Borrowing	Balance at September 30, 2004

Intra-governmental
	Borrowing from the Treasury	$8,243,557	$497,000	$8,740,557

		$8,243,557	$497,000	$8,740,557


Assuming the continuation of current operating conditions, repayment of these and necessary future advances will require a change in the statutory operating structure of the fund. (See note 19.)



NOTE 9 — ACCRUED BENEFITS

Accrued benefits at September 30, 2005 and 2004 consisted of the following:

(Dollars in thousands)			2005	2005

	State regular and extended unemployment benefits payable		$646,473	$869,504
	Federal extended unemployment benefits payable		36,338	36,265
	Federal temporary extended unemployment benefits		23,620	23,581
	Federal emergency unemployment benefits payable		37,714	31,951
	Federal employees' unemployment benefits payable		41,885	26,200
	Federal employees' unemployment benefits for existing claims due in the subsequent year		145,642	141,022
	Total unemployment benefits payable		931,672	1,128,523
	Black lung disability benefits payable		51,995	55,542
	Federal employees' disability and 10(h) benefits payable		156,570	155,716
	Energy employees occupational illness compensation benefits payable		3,812	790
	Longshore and harbor workers disability benefits payable		3,234	3,155
	District of Columbia disability benefits payable		375	283

			$1,147,658	$1,344,009

NOTE 10 — FUTURE WORKERS' COMPENSATION BENEFITS

DOL's liability for future workers' compensation benefits at September 30, 2005 and 2004 consisted of the following:

(Dollars in thousands)			2005	2005

	Projected gross liability of the Federal government
	for future FECA benefits		$26,007,693	$25,570,723
	Less liabilities attributed to other agencies:
		U.S. Postal Service	(8,663,963)	(8,379,832)
		Department of Navy	(2,725,371)	(2,744,041)
		Department of Army	(1,950,173)	(1,937,818)
		Department of Veterans Affairs	(1,776,459)	(1,752,895)
		Department of Air Force	(1,399,314)	(1,418,832)
		Department of Transportation	(1,007,910)	(1,020,500)
		Department of Homeland Security	(1,473,295)	(1,398,161)
		Tennessee Valley Authority	(580,506)	(594,461)
		Department of Treasury	(644,620)	(678,272)
		Department of Agriculture	(834,415)	(836,341)
		Department of Justice	(926,336)	(829,336)
		Department of Interior	(689,306)	(664,856)
		Department of Defense, Other	(844,007)	(858,146)
		Department of Health and Human Services	(270,354)	(266,389)
		Social Security Administration	(284,589)	(288,158)
		General Services Administration	(170,113)	(176,351)
		Department of Commerce	(173,415)	(179,186)
		Department of Energy	(98,479)	(95,184)
		Department of State	(60,288)	(59,984)
		Department of Housing & Urban Development	(81,613)	(78,622)
		Department of Education	(18,082)	(19,882)
		National Aeronautics and Space Administration	(62,430)	(68,876)
		Environmental Protection Agency	(39,380)	(40,281)
		Small Business Administration	(28,967)	(28,436)
		Office of Personnel Management	(25,653)	(13,077)
		National Science Foundation	(1,381)	(1,465)
		Nuclear Regulatory Commission	(8,417)	(8,114)
		Agency for International Development	(23,726)	(24,523)
		Other	(580,826)	(580,636)
			(25,443,388)	(25,042,655)

			$564,305	$528,068

	Projected liability of the Department of Labor for future FECA benefits
		FECA benefits not chargeable to other Federal agencies payable by
		DOL's Federal Employees' Compensation Act Special Benefit Fund	$270,255	$228,487
		FECA benefits due to eligible workers of DOL and Job Corp enrollees	233,652	236,560
		FECA benefits due to eligible workers of the Panama Canal Commission	60,398	63,021

			$564,305	$528,068

NOTE 11 — OTHER LIABILITIES

Other liabilities at September 30, 2005 and 2004 consisted of the following current liabilities:

(Dollars in thousands)		2005	2004

Intra-governmental
	Accrued payroll and benefits	$9,666	$8,281
	Unearned FECA assessments	44,347	39,261
	Non-entity receipts due to U.S. Treasury	57,268	59,542
	Amounts held for the Railroad Retirement Board	94,820	86,209
	Advances from other Federal agencies	—	1,134
Total intra-governmental		206,101	194,427

Accrued payroll and benefits		45,261	40,833
Due to Backwage recipients		71,632	63,901
Unearned assessment revenue		48,910	48,117
Deposit and clearing accounts		5,503	20,738
Readjustment allowances and other Job Corps liabilities		84,427	58,244
Other advances		7,500	7,500
		263,233	239,333

		$469,334	$433,760



NOTE 12 — LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

Liabilities not covered by budgetary resources at September 30, 2005 and 2004 consisted of the following:

(Dollars in thousands)		2005	2005

Intra-governmental
	Advances from U.S. Treasury	$9,186,557	$8,740,557

Accrued benefits		13,519	94,846
Future workers' compensation benefits		230,721	236,559
Accrued annual leave		90,222	94,846
Readjustment allowances and other Job Corps liabilities		84,427	58,244
		418,889	389,649

		$9,605,446	$9,130,206

NOTE 13 — PENSION EXPENSE

Pension expense in 2005 consisted of the following:

(Dollars in thousands)	Employer Contributions	Accumulated Costs Imputed by OPM	Total Pension Expense

Civil Service Retirement System	$27,034	$43,919	$70,953
Federal Employees' Retirement System	81,359	—	81,359
Thrift Savings Plan	30,824	—	30,824

	$139,217	$43,919	$183,136


Pension expense in 2004 consisted of the following:

(Dollars in thousands)	Employer Contributions	Accumulated Costs Imputed by OPM	Total Pension Expense

Civil Service Retirement System	$31,473	$46,281	$77,754
Federal Employees' Retirement System	72,622	3,199	75,821
Thrift Savings Plan	28,712	—	28,712

	$132,807	$49,480	$182,287