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:
