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Secretary of Labor Thomas E. Perez
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DOL Annual Report, Fiscal Year 2007
Performance and Accountability Report

Principal Financial Statements and Notes

NOTE 2 — FUNDS WITH U.S. TREASURY

 

Entity Assets

 

 

 

Unobligated
Balance
Available

Unobligated
Balance
Unavailable

Obligated
Balance Not
Yet Disbursed

Total
Entity Assets

Non-entity
Assets

Total

(Dollars in thousands)

 

 

 

 

 

 

Revolving funds

$9,254

$-

$37,715

$46,969

$-

$46,969

Trust funds

172,261

-

(28,292)

143,969

(115)

143,854

General funds

2,415,351

1,604,964

5,692,427

9,712,742

-

9,712,742

Other

-

-

-

-

79,387

79,387

 

$2,596,866

$1,604,964

$5,701,850

$9,903,680

$79,272

$9,982,952

Funds with U.S. Treasury at September 30, 2006 consisted of the following:

 

Entity Assets

 

 

 

Unobligated
Balance
Available

Unobligated
Balance
Unavailable

Obligated
Balance Not
Yet Disbursed

Total
Entity Assets

Non-entity
Assets

Total

(Dollars in thousands)

 

 

 

 

 

 

Revolving funds

$3,946

$-

$35,694

$39,640

$-

$ 9,640

Trust funds

141,122

-

(41,062)

100,060

(159)

99,901

General funds

2,446,785

1,371,403

5,696,774

9,514,962

-

9,514,962

Other

-

-

-

-

62,646

62,646

 

$2,591,853

$1,371,403

$5,691,406

$9,654,662

$62,487

$9,717,149

The negative fund balances reported as of September 30, 2007 and 2006 relate to the Unemployment Trust Fund (UTF) and are the result of the timing of processing the investments and redemptions of UTF. The investments and redemptions relating to the last business day of the month are not processed until the first day of the next month. This could result in a negative cash position for the preceding business day if the disbursements are greater than the receipts to the fund.

Unobligated Balance Available includes $361 million of funds apportioned for use in the subsequent year.


NOTE 3 — INVESTMENTS

Investments at September 30, 2007 consisted of the following:

 

 

 

 

 

 

Face
Value

Premium
(Discount)

Net
Value

Market
Value

(Dollars in thousands)

 

 

 

 

Unemployment Trust Fund

 

Non-marketable

 

 

 

 

 

U.S. Treasury Certificates of Indebtedness

 

 

 

 

 

5.000% maturing June 30, 2008

8,208,313

-

8,208,313

8,208,313

 

Special issue U.S. Treasury Bonds

 

 

 

 

 

4.625% maturing June 30, 2008

10,879,148

-

10,879,148

10,879,148

 

4.875% maturing June 30, 2008

10,000,000

-

10,000,000

10,000,000

 

4.875% maturing June 30, 2009

9,980,072

-

9,980,072

9,980,072

 

5.000% maturing June 30, 2009

11,000,000

-

11,000,000

11,000,000

 

5.000% maturing June 30, 2010

24,855,747

-

24,855,747

24,855,747

 

 

74,923,280

-

74,923,280

74,923,280

Panama Canal Commission

Compensation Fund

 

Marketable

 

 

 

 

 

U.S. Treasury Bill

 

 

 

 

 

Maturing November 15, 2007

7,170

(43)

7,127

7,138

 

U.S. Treasury Notes

 

 

 

 

 

3.625% to 5.625% various maturities

43,152

(142)

43,010

43,418

 

U.S. Treasury Bonds

 

 

 

 

 

10.375% to 11.750% various maturities

27,078

1,013

28,091

28,054

 

 

77,400

828

78,228

78,610

Longshore and Harbor Workers'

Compensation Act Trust Fund

 

Non-marketable

 

 

 

 

 

One Day Certificate

 

 

 

 

 

3.99% maturing October 1, 2007

69,979

-

69,979

69,979

District of Columbia Workmen's

Compensation Act Trust Fund

 

Non-marketable

 

 

 

 

 

One Day Certificate

 

 

 

 

 

3.99% maturing October 1, 2007

6,585

-

6,585

6,585

Energy Employees Occupational Illness

Compensation Fund

 

Non-marketable

 

 

 

 

 

One Day Certificate

 

 

 

 

 

3.99% maturing October 1, 2007

53,062

-

53,062

53,062

 

 

$75,130,306

$828

$75,131,134

$75,131,516

Entity investments

$75,022,470

$828

$75,023,298

$75,023,680

Non-entity investments

107,836

-

107,836

107,836

 

$75,130,306

$828

$75,131,134

$75,131,516


Investments at September 30, 2006 consisted of the following:

 

Face
Value

Premium
(Discount)

Net
Value

Market
Value

(Dollars in thousands)

 

 

 

 

Unemployment Trust Fund

 

Non-marketable

 

 

 

 

 

U.S. Treasury Certificates of Indebtedness

 

 

 

 

 

4.875% maturing June 30, 2007

$8,662,384

$-

$8,662,384

$8,662,384

 

5.000% maturing June 30, 2007

343,768

-

343,768

343,768

 

Special issue U.S. Treasury Bonds

 

 

 

 

 

4.625% maturing June 30, 2007

17,927,258

-

17,927,258

17,927,258

 

4.625% maturing June 30, 2008

19,299,158

-

19,299,158

19,299,158

 

4.875% maturing June 30, 2008

10,000,000

-

10,000,000

10,000,000

 

4.875% maturing June 30, 2009

9,980,072

-

9,980,072

9,980,072

 

 

66,212,640

-

66,212,640

66,212,640

Panama Canal Commission

Compensation Fund

 

Marketable

 

 

 

 

 

U.S. Treasury Bill

 

 

 

 

 

Maturing November 16, 2006

13,608

(85)

13,523

13,016

 

U.S. Treasury Notes

 

 

 

 

 

3.625% to 6.625% various maturities

24,460

30

24,490

24,315

 

U.S. Treasury Bonds

 

 

 

 

 

10.375% to 11.750% various maturities

39,738

2,597

42,335

42,233

 

 

77,806

2,542

80,348

79,564

Longshore and Harbor Workers'

Compensation Act Trust Fund

 

Non-marketable

 

 

 

 

 

One Day Certificate

 

 

 

 

 

5.030% maturing October 2, 2006

73,146

-

73,146

73,146

District of Columbia Workmen's

Compensation Act Trust Fund

 

Non-marketable

 

 

 

 

 

One Day Certificate

 

 

 

 

 

5.030% maturing October 2, 2006

5,611

-

5,611

5,611

Energy Employees Occupational Illness

Compensation Fund

 

Non-marketable

 

 

 

 

 

One Day Certificate

83,307

-

83,307

83,307

 

5.030% maturing October 2, 2006

$66,452,510

$2,542

$66,455,052

$66,454,268

Entity investments

$66,351,966

$2,542

$66,354,508

$66,353,724

Non-entity investments

100,544

-

100,544

100,544

 

$66,452,510

$2,542

$66,455,052

$66,454,268


NOTE 4 — ACCOUNTS RECEIVABLE, NET OF ALLOWANCE

Accounts receivable at September 30, 2007 consisted of the following:

Gross
Receivables

Allowance

Net
Receivables

(Dollars in thousands)

     

Entity intra-governmental assets

 

Due for UCFE and UCX benefits

$302,723

$-

$302,723

 

Due for workers' compensation benefits

3,754,382

-

3,754,382

 

Other

11,598

-

11,598

 

 

4,068,703

-

4,068,703

Entity assets

 

State unemployment taxes

922,643

(646,571)

276,072

 

Due from reimbursable employers

489,269

(30,077)

459,192

 

Benefit overpayments

1,907,770

(1,656,975)

250,795

 

Other

8,864

(1,727)

7,137

 

 

3,328,546

(2,335,350)

993,196

Non-entity assets

 

Fines and penalties

92,805

(31,820)

60,985

 

Backwages

10,839

(4,797)

6,042

 

 

103,644

(36,617)

67,027

 

 

3,432,190

(2,371,967)

1,060,223

 

 

$7,500,893

$(2,371,967)

$5,128,926


Accounts receivable at September 30, 2006 consisted of the following:

 

Gross
Receivables

Allowance

Net
Receivables

(Dollars in thousands)

 

 

 

Entity intra-governmental assets

 

 

 

 

Due for UCFE and UCX benefits

$334,738

$-

$334,738

 

Due for workers' compensation benefits

3,696,581

-

3,696,581

 

Other

14,869

-

14,869

 

 

4,046,188

-

4,046,188

Entity assets

 

State unemployment taxes

932,626

(666,082)

266,544

 

Due from reimbursable employers

544,016

(32,357)

511,659

 

Benefit overpayments

1,949,362

(1,730,343)

219,019

 

Other

8,079

(2,443)

5,636

 

 

3,434,083

(2,431,225)

1,002,858

Non-entity assets

 

Fines and penalties

81,309

(36,808)

44,501

 

Backwages

23,966

(16,169)

7,797

 

 

105,275

(52,977)

52,298

 

 

3,539,358

(2,484,202)

1,055,156

 

 

$7,585,546

$(2,484,202)

$5,101,344


NOTE 5 — ADVANCES

Advances at September 30, 2007 and 2006 consisted of the following:

 

2007

2006

(Dollars in thousands)

 

 

Intra-governmental

 

 

 

Advances to the Department of Justice

$-

$4

 

-

4

Advances to states for UI benefit payments

509,848

474,153

Advances to grantees and contractors to finance future DOL program expenditures

29,504

78,537

Other

2,213

2,604

 

541,565

555,294

 

$541,565

$555,298


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

Property, plant and equipment at September 30, 2007 consisted of the following:

 

2007

 

Cost

Accumulated
Depreciation/
Amortization

Net Book
Value

(Dollars in thousands)

 

 

 

Structures, facilities and improvements

 

 

 

 

Structures and facilities

$1,014,233

$(409,570)

$604,663

 

Improvements to leased facilities

427,769

(228,257)

199,512

 

1,442,002

(637,827)

804,175

Furniture and equipment

 

 

 

 

Equipment held by contractors

168,049

(161,300)

6,749

 

Furniture and equipment

54,067

(36,653)

17,414

 

222,116

(197,953)

24,163

ADP software

190,014

(74,433)

115,581

Construction-in-progress

78,651

-

78,651

Land

93,249

-

93,249

 

$2,026,032

$(910,213)

$1,115,819


Property, plant and equipment at September 30, 2006 consisted of the following:

 

2006

 

Cost

Accumulated
Depreciation/
Amortization

Net Book
Value

(Dollars in thousands)

 

 

 

Structures, facilities and improvements

 

 

 

 

Structures and facilities

$862,100

$(378,086)

$484,014

 

Improvements to leased facilities

409,521

(222,152)

187,369

 

1,271,621

(600,238)

671,383

Furniture and equipment

 

 

 

 

Equipment held by contractors

159,771

(154,226)

5,545

 

Furniture and equipment

62,740

(39,973)

22,767

 

222,511

(194,199)

28,312

ADP software

192,270

(68,640)

123,630

Construction-in-progress

162,486

-

162,486

Land

90,999

-

90,999

 

$1,939,887

$(863,077)

$1,076,810


NOTE 7 — NON-ENTITY ASSETS

Non-entity assets consisted of the following at September 30, 2007 and 2006:

 

2007

2006

(Dollars in thousands)

   

Intra-governmental

 

 

 

Funds with U.S. Treasury

$79,272

$62,487

 

Investments

107,836

100,544

 

Interest receivable from investments

1,269

1,129

 

188,377

164,160

Accounts receivable, net of allowance

67,027

52,298

 

$255,404

$216,458


NOTE 8 — ADVANCES FROM U.S. TREASURY

Advances from U.S. Treasury to the Black Lung Disability Trust Fund during 2007 consisted of the following:

 

Balance at
September 30,
2006

Net
Borrowing

Balance at
September 30,
2007

(Dollars in thousands)

 

 

 

Intra-governmental

 

 

 

 

Borrowing from the Treasury

$9,631,557

$426,000

$10,057,557


Advances from U.S. Treasury to the Black Lung Disability Trust Fund during 2006 consisted of the following:

 

Balance at
September 30,
2005

Net
Borrowing

Balance at
September 30,
2006

(Dollars in thousands)

 

 

 

Intra-governmental

 

 

 

 

Borrowing from the Treasury

$9,186,557

$445,000

$9,631,557


NOTE 9 — ACCRUED BENEFITS

Accrued benefits at September 30, 2007 and 2006 consisted of the following:

 

2007

2006

(Dollars in thousands)

 

 

 

State regular and extended unemployment benefits payable

$1,053,055

$790,745

 

Federal extended unemployment benefits payable

35,945

36,615

 

Federal temporary extended unemployment benefits

23,641

24,532

 

Federal emergency unemployment benefits payable

44,950

42,649

 

Federal employees' unemployment benefits payable

30,432

36,725

 

Federal employees' unemployment benefits for existing

 

 

 

claims due in the subsequent year

123,576

137,161

 

Total unemployment benefits payable

1,311,599

1,068,427

 

Black lung disability benefits payable

43,277

46,329

 

Federal employees' disability and 10(h) benefits payable

65,937

59,735

 

Energy employees occupational illness compensation benefits payable

24,006

21,492

 

Longshore and harbor workers disability benefits payable

3,655

3,382

 

District of Columbia disability benefits payable

298

283

 

$1,448,772

$1,199,648


NOTE 10 — FUTURE WORKERS' COMPENSATION BENEFITS

DOL’s liability for future workers’ compensation benefits at September 30, 2007 and 2006 consisted of the following:

 

2007

2006

 

(Dollars in thousands)

 

 

 

Projected gross liability of the Federal government for future FECA benefits

 

 

 

Less liabilities attributed to other agencies:

$26,306,065

$25,851,505

 

 

U.S. Postal Service

(8,923,407)

(8,662,714)

 

 

Department of Navy

(2,694,074)

(2,698,683)

 

 

Department of Army

(1,977,872)

(1,973,869)

 

 

Department of Veterans Affairs

(1,826,564)

(1,811,947)

 

 

Department of Air Force

(1,381,158)

(1,369,905)

 

 

Department of Transportation

(949,465)

(952,969)

 

 

Department of Homeland Security

(1,683,569)

(1,519,329)

 

 

Tennessee Valley Authority

(538,096)

(553,322)

 

 

Department of Treasury

(573,038)

(600,737)

 

 

Department of Agriculture

(775,281)

(807,652)

 

 

Department of Justice

(1,046,480)

(991,560)

 

 

Department of Interior

(659,333)

(678,923)

 

 

Department of Defense, Other

(777,041)

(813,532)

 

 

Department of Health and Human Services

(275,776)

(273,374)

 

 

Social Security Administration

(271,981)

(274,763)

 

 

General Services Administration

(164,883)

(165,051)

 

 

Department of Commerce

(164,416)

(170,164)

 

 

Department of Energy

(105,231)

(96,386)

 

 

Department of State

(68,078)

(62,669)

 

 

Department of Housing & Urban Development

(81,779)

(79,873)

 

 

Department of Education

(16,186)

(16,952)

 

 

National Aeronautics and Space Administration

(64,060)

(60,217)

 

 

Environmental Protection Agency

(39,786)

(39,408)

 

 

Small Business Administration

(26,321)

(27,045)

 

 

Office of Personnel Management

(21,020)

(20,448)

 

 

National Science Foundation

(1,182)

(1,287)

 

 

Nuclear Regulatory Commission

(6,833)

(7,434)

 

 

Agency for International Development

(23,528)

(23,438)

 

 

Other

(533,779)

(549,540)

 

 

 

(25,670,217)

(25,303,191)

 

 

 

$635,848

$548,314

 

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

$346,299

$250,179

 

 

FECA benefits due to eligible workers of DOL and Job Corps enrollees

237,920

242,525

 

 

FECA benefits due to eligible workers of the Panama Canal Commission

51,629

55,610

 

 

 

$635,848

$548,314


NOTE 11 — OTHER LIABILITIES

Other liabilities at September 30, 2007 and 2006 consisted of the following current liabilities:

 

2007

2006

(Dollars in thousands)

 

 

Intra-governmental

 

 

 

Accrued benefits

$10,385

$10,070

 

Unearned FECA assessments

51,192

48,285

 

Deposit and clearing accounts

-

2

 

Non-entity receipts due to U.S. Treasury

59,615

44,501

 

Amounts held for the Railroad Retirement Board

108,990

101,514

 

Advances from other Federal agencies

750

1,013

Total intra-governmental

230,932

205,385

Accrued payroll and benefits

48,280

44,968

Due to Backwage recipients

85,583

71,235

Unearned assessment revenue

41,965

42,751

Deposit and clearing accounts

1,216

-

Readjustment allowances and other Job Corps liabilities

83,330

58,359

 

260,374

217,313

 

$491,306

$422,698


NOTE 12 — LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

Liabilities not covered by budgetary resources at September 30, 2007 and 2006 consisted of the following:

 

2007

2006

(Dollars in thousands)

 

 

Intra-governmental

 

 

 

Advances from U.S. Treasury

$10,057,557

$9,631,557

Future workers' compensation benefits

237,920

242,525

Accrued annual leave

96,014

92,506

Readjustment allowances and other Job Corps liabilities

83,330

58,359

 

417,264

393,390

 

$10,474,821

$10,024,947


NOTE 13 — CONTINGENCIES

The Department is involved in various lawsuits incidental to its operations. Judgments resulting from litigation against the Department are paid by the Department of Justice. In the opinion of management, the ultimate resolution of pending litigation will not have a material effect on the Department’s financial position.


NOTE 14 - PENSION EXPENSE

Pension expense in 2007 consisted of the following:

 

Employer
Contributions

Costs Imputed
by OPM

Total
Pension
Expense

(Dollars in thousands)

 

 

 

Civil Service Retirement System

$24,503

$39,287

$63,790

Federal Employees' Retirement System

94,390

-

94,390

Thrift Savings Plan

36,092

-

36,092

 

$154,985

$39,287

$194,272


Pension expense in 2006 consisted of the following:

 

Employer
Contributions

Costs Imputed
by OPM

Total
Pension
Expense

(Dollars in thousands)

 

 

 

Civil Service Retirement System

$26,506

$42,476

$68,982

Federal Employees' Retirement System

86,876

-

86,876

Thrift Savings Plan

33,003

-

33,003

 

$146,385

$42,476

$188,861

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