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 15 — NON-EXCHANGE REVENUE

Non-exchange revenues reported on the Consolidated Statement of Changes in Net Position in 2005 and 2004 consisted of the following:

(Dollars in thousands)			2005	2004

Employer taxes
	Unemployment Trust Fund
		Federal unemployment taxes	$6,810,122	$6,514,194
		State unemployment taxes	33,151,082	24,678,538
			39,961,204	31,192,732
	Black Lung Disability Trust Fund excise taxes		610,417	506,081
			40,571,621	31,698,813

Interest
	Unemployment Trust Fund		2,586,064	3,447,565
	Longshore and Harbor Workers' Trust Fund		1,007	511
	District of Columbia Trust Fund		63	48
	Panama Canal Commission Compensation Fund		3,915	6,155
	Energy Employees Occupational Illness Compensation Fund		1,722	263
	Black Lung Disability Trust Fund		644	(497)
			2,593,415	3,454,045
Assessments
	Longshore and Harbor Workers' Trust Fund		133,566	127,661
	District of Columbia Trust Fund		11,216	9,510
	Other		533	552
			145,315	137,723

Reimbursement of unemployment benefits from state and local governments and non-profit organizations to the Unemployment Trust Fund			1,857,193	2,050,363

			$45,167,544	$37,340,944

NOTE 16 — TRANSFERS WITHOUT REIMBURSEMENT

Transfers from (to) other Federal agencies in 2005 and 2004 consisted of the following:

(Dollars in thousands)		2005	2004

Budgetary financing sources
	From DOL general fund unexpended appropriation
	accounts to the DOL Working Capital Fund	$3,000	$3,000

Other financing sources
	Liability for EEOICPA, Part D, from the Department of Energy	(810,000)	—
	Liability for RECA, Section 5, from the Department of Justice	(316,993)	—
	From General Services Administration	3,564	1,063
	To General Services Administration	(3,943)	(1,051)
		(1,127,372)	12

		$(1,124,372)	$3,012

NOTE 17 — STATUS OF BUDGETARY RESOURCES

A. Apportionment Categories of Obligations Incurred

Obligations incurred reported on the Combined Statement of Budgetary Resources in 2005 and 2004 consisted of the following:

(Dollars in thousands)		2005	2004

Direct Obligations
	Category A	$4,021,560	$3,815,410
	Category B	9,551,655	10,265,880
	Exempt from apportionment	37,760,421	58,650,191

Total direct obligations		51,333,636	72,731,481

Reimbursable Obligations
	Category A	172,936	150,970
	Category B	2,609,991	2,444,032

Total reimbursable obligations		2,782,927	2,595,002

		$54,116,563	$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, 2005 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, 2004 is shown below.

(Dollars in millions)		Budgetary Resources	Obligations Incurred	Total Outlays

Consolidated Statement of Budgetary Resources		$67,890	$64,313	$58,201

	Pension Benefit Guaranty Corporation reported separately	15,627	3,168	(247)
	Overstatement of unemployment taxes in the Budget
	of the United States	300	-	-
	Overstatement of draws for unemployment benefits in the
	Budget of the United States	-	300	300
	Accruals not reported in the budget	325	325	-
	Amounts in the budget not included in the Consolidated
	Statement of Budgetary Resources	50	49	87
	Amounts in the Consolidated Statement of Budgetary Resources
	not included in the budget	(18)	-	-
	Expired accounts	(871)	(199)	-

Budget of the United States Government		$83,303	$67,956	$58,341

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, 2004, reclassified from unobligated balances to UTF unavailable collections, is presented below.

(Dollars in millions)		2004

Unemployment Trust Fund unavailable collections, beginning		$45,489

	Budget authority from current year appropriations	43,203
	Less obligations	(45,728)

Excess of obligations over budget authority		(2,525)

Unemployment Trust Fund unavailable collections, ending		$42,964

NOTE 18 — CUSTODIAL REVENUES

Custodial revenues in 2005 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	$62,548	$—	$62,548	$10,005	$72,553
	MSHA	18,553	—	18,553	(1,202)	17,351
	EBSA	13,654	—	13,654	2,079	15,733
	ESA	12,577	(3)	12,574	509	13,083
		107,332	(3)	107,329	11,391	118,720

ETA disallowed grant costs		4,893	—	4,893	(738)	4,155
Other		18,660	(211)	18,449	298	18,747

		$130,885	$(214)	$130,671	$10,951	$141,622


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

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, 2005 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		$(273,027)	$41,906	$13,310	$2,066
		Investments		54,805,883	—	60,000	3,000
		Accounts receivable, net
			Due from other Federal agencies
			for UCX and UCFE benefits	344,238	—	—	—
		Interest receivable from investments		634,736	—	—	—
	Total intra-governmental			55,511,830	41,906	73,310	5,066

	Accounts receivable, net
		State unemployment tax		235,182	—	—	—
		Due from reimbursable employers		516,110	—	—	—
		Benefit overpayments		177,640	9,055	—	—
		Other		—	—	1,222	813
	Advances to states			489,177	—	—	—

Total assets				$56,929,939	$50,961	$74,532	$5,879

Liabilities
	Intra-governmental
		Accounts payable to DOL agencies		$1,406,934	—	$477	—
		Advances from U.S. Treasury		—	9,186,557	—	—
		Amounts held for the Railroad
		Retirement Board		94,820	—	—	—
	Total intra-governmental			1,501,754	9,186,557	477	—

	Accrued benefits			931,672	24,413	3,234	375
	Other			—	—	45,012	3,898
Total liabilities				2,433,426	9,210,970	48,723	4,273

Net position
	Cumulative results of operations			54,496,513	(9,160,009)	25,809	1,606

Total liabilities and net position				$56,929,939	$50,961	$74,532	$5,879

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

Cost, net of earned revenues
	Benefits			$(31,980,909)	$(327,860)	$(130,883)	$(10,700)
	Interest			(2,699)	(674,894)	—	—
	Administrative			(288,968)	(212)	—	—
				(32,272,576)	(1,002,966)	(130,883)	(10,700)
	Earned revenue			783,657	—	—	—
				(31,488,919)	(1,002,966)	(130,883)	(10,700)

Net financing sources
	Taxes			39,961,204	610,417	—	—
	Interest			2,586,064	646	1,007	62
	Assessments			1,857,193	—	133,566	11,217
	Transfers-in
		DOL Entities		150	—	—	—
	Transfers-out
		DOL entities		(3,815,031)	(56,662)	(2,023)	—
				40,589,580	554,401	132,550	11,279
	Net results of operations			9,100,661	(448,565)	1,667	579

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

Net position, end of period				$54,496,513	$(9,160,009)	$25,809	$1,606



(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



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

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