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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 18 - STATUS OF BUDGETARY RESOURCES

A. Apportionment Categories of Obligations Incurred

Obligations incurred reported on the Combined Statement of Budgetary Resources in 2007 and 2006 consisted of the following:

 

 

 

2007

2006

(Dollars in thousands)

 

 

Direct Obligations

 

 

 

Category A

 

$4,121,138

$,063,611

 

Category B

 

9,068,443

9,247,270

 

Exempt from apportionment

38,830,490

37,033,486

Total direct obligations

52,020,071

50,344,367

Reimbursable Obligations

 

 

 

Category A

 

194,918

188,504

 

Category B

 

2,689,784

2,906,630

Total reimbursable obligations

2,884,702

3,095,134

 

 

 

$54,904,773

$53,439,501


B. Permanent Indefinite Appropriations

DOL’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 Combined 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 Combined Statement of Budgetary Resources. Current year excess receipts are reported as temporarily not available pursuant to Public Law. 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 amounts 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, 2007 and 2006 reclassified from unobligated balances to UTF unavailable collections is presented on the following page.

 

 

 

 

2007

2006

(Dollars in millions)

 

 

 

Unemployment Trust Fund unavailable collections, beginning

$63,995

$52,213

 

Budget authority from current year appropriations

44,909

46,725

 

Less obligations

 

(36,456)

(34,943)

Excess of budget authority over obligations

8,453

11,782

Unemployment Trust Fund unavailable collections, ending

$72,448

$63,995


D. Explanation of Differences between the Combined 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, 2007 has not been published as of the issue date of these financial statements. This document will be available in February 2008. In addition, the reconciliation of the SF133 and the Combined Statement of Budgetary Resources will be performed in Fiscal Year 2008 after the Department receives the final SF133 reports from Trust Funds and allocated accounts.

A reconciliation of budgetary resources, obligations incurred and outlays, as presented in the Combined Statement of Budgetary Resources, to amounts included in the Budget of the United States Government for the year ended September 30, 2006 is shown below.

 

 

 

Budgetary
Resources

Obligations
Incurred

Gross
Outlays

(Dollars in millions)

 

 

 

Combined Statement of Budgetary Resources

$57,636

$53,440

$53,502

 

Pension Benefit Guaranty Corporation reported separately

19,405

4,438

4,444

 

Accruals not reported in the budget

(145)

(145)

-

 

Amounts in the budget not included in the Combined Statement of Budgetary Resources

146

131

134

 

Amounts in the Combined Statement of Budgetary Resources not included in the budget

-

-

(24)

 

Expired accounts

(1,310)

(88)

-

 

Other

 

12

13

15

Budget of the United States Government

$75,744

$57,789

$58,071


E. Undelivered Orders

Undelivered orders at September 30, 2007 and 2006 were as follows.

 

 

 

2007

2006

(Dollars in thousands)

 

 

Undelivered orders

$5,678,989

$5,773,816


F. Appropriations Received

The Combined Statements of Budgetary Resources discloses appropriations received of $56,922 and $58,971 million for FY 2007 and 2006, respectively. Appropriations received on the Consolidated Statements of Changes in Net Position are $11,007 and $10,704 million for FY 2007 and 2006, respectively. The differences of $45,915 and $48,267 million represent certain dedicated and earmarked receipts recognized as exchange revenue or non-exchange revenue reported on the Consolidated Statements of Net Cost or the Consolidated Statements of Changes in Net Position.


NOTE 19 — RECONCILIATION OF BUDGETARY RESOURCES OBLIGATED TO NET COST OF OPERATIONS

 

 

 

 

2007

2006

(Dollars in thousands)

 

 

Resources used to finance activities

 

 

 

Budgetary resources obligated

 

 

 

 

Obligations incurred

$54,904,773

$53,439,501

 

 

Recoveries of prior year obligations

(220,673)

(399,780)

 

 

Less spending authority from offsetting collections

(6,447,616)

(6,740,047)

 

 

Obligations, net of offsetting collections and recoveries

48,236,484

46,299,674

 

Other resources

 

 

 

 

Imputed financing from costs absorbed by others

129,859

122,782

 

 

Transfers, net

2,469

1,328

 

 

Exchange revenue not in budget

(784,278)

(929,202)

Total resources used to finance activities

47,584,534

45,494,582

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

108,524

139,777

 

Resources that finance the acquisition of assets

(129,596)

(116,035)

 

Allocation transfers to other agencies

-

(159,098)

 

Other resources that do not affect net cost of operations

-

209

Total resources used to finance items not part of the net cost of operations

(21,072)

(135,147)

Total resources used to finance the net cost of operations

47,563,462

45,359,435

Components of the net cost of operations that will not require or generate resources in the current period

 

 

 

Components requiring or generating resources in other periods

 

 

 

 

Increase in annual leave liability

3,735

2,670

 

 

Increase (decrease) in employee benefits liabilities

633,248

(518,152)

 

 

Other

 

24,250

(26,068)

 

Total

 

661,233

(541,550)

 

Components not requiring or generating resources

 

 

 

 

Depreciation and amortization

61,233

55,449

 

 

Revaluation of assets and liabilities

461,967

612,558

 

 

Benefit overpayments

(457,176)

(611,863)

 

Total

 

66,024

56,144

Total components of the net cost of operations that will not require or generate resources in the current period

727,257

(485,406)

Net cost of operations

$48,290,719

$44,874,029


NOTE 20 — SOURCES OF CUSTODIAL REVENUE

Custodial revenues in 2007 consisted of the following:

 

 

Cash
Collections

Less
Refunds

Net
Cash
Collections

Increase
(Decrease) in
Amounts to
be Collected

Total
Revenues

(Dollars in thousands)

 

 

 

 

 

Civil monetary penalties

 

 

 

 

 

OSHA

$65,660

$(233)

$65,427

$1,161

$66,588

 

MSHA

30,357

-

30,357

(1,330)

29,027

 

EBSA

24,168

-

24,168

3,511

27,679

 

ESA

11,689

-

11,689

395

12,084

 

 

131,874

(233)

131,641

3,737

135,378

ETA disallowed grant costs

4,670

-

4,670

11,377

16,047

Other

2,676

(2)

2,674

-

2,674

 

 

$139,220

$(235)

$138,985

$15,114

$154,099


Custodial revenues in 2006 consisted of the following:

 

 

Cash
Collections

Less
Refunds

Net
Cash
Collections

Increase
(Decrease) in
Amounts to
be Collected

Total
Revenues

(Dollars in thousands)

 

 

 

 

 

Civil monetary penalties

 

 

 

 

 

OSHA

$80,119

$(8)

$80,111

$(12,396)

$67,715

 

MSHA

24,411

-

24,411

(565)

23,846

 

EBSA

15,751

-

15,751

(551)

15,200

 

ESA

11,968

(59)

11,909

529

12,438

 

 

132,249

(67)

132,182

(12,983)

119,199

ETA disallowed grant costs

19,815

(2)

19,813

216

20,029

Other

816

(7)

809

-

809

 

 

$152,880

$(76)

$152,804

$(12,767)

$140,037


NOTE 21 — EARMARKED FUNDS

DOL is responsible for the operation of certain earmarked funds. Other earmarked funds include Gifts and Bequests, Panama Canal Commission Compensation Fund, and H-1B Funds. The financial position of the earmarked funds as of September 30, 2007 is shown below.

 

 

 

 

Unemployment

Black Lung
Disability

Other

Total

(Dollars in thousands)

 

 

 

 

Assets

 

 

 

 

 

Intra-governmental

 

 

 

 

 

 

Funds with U.S. Treasury

$103,124

$40,359

$419,245

$562,728

 

 

Investments

74,923,280

-

78,228

75,001,508

 

 

Interest receivable from investments

881,498

-

1,833

883,331

 

 

Accounts receivable, net

 

 

 

 

 

 

 

Due from other Federal agencies

 

 

 

 

 

 

for UCX and UCFE benefits

302,912

-

-

302,912

 

Total intra-governmental

76,210,814

40,359

499,306

76,750,479

 

Accounts receivable, net

 

 

 

 

 

 

State unemployment tax

276,072

-

-

276,072

 

 

Due from reimbursable employers

459,192

-

-

459,192

 

 

Benefit overpayments

209,807

10,056

-

219,863

 

 

Other

-

-

2

2

 

Advances

509,848

-

379

510,227

 

Other

-

-

39

39

Total assets

$77,665,733

$50,415

$499,726

$78,215,874

Liabilities

 

 

 

 

 

Intra-governmental

 

 

 

 

 

 

Accounts payable to DOL agencies

$1,242,806

$-

$-

$1,242,806

 

 

Advances from U.S. Treasury

-

10,057,557

-

10,057,557

 

 

Amounts held for the Railroad

 

 

 

 

 

 

Retirement Board

108,990

-

-

108,990

 

 

Other

-

-

7,857

7,857

 

Total intra-governmental

1,351,796

10,057,557

7,857

11,417,210

 

Accounts payable

-

-

26,041

26,041

 

Accrued benefits

1,311,599

20,559

-

1,332,158

 

Future workers' compensation benefits

-

-

51,629

51,629

 

Other

-

-

655

655

Total liabilities

2,663,395

10,078,116

86,182

12,827,693

Net position

 

 

 

 

 

Cumulative results of operations

75,002,338

(10,027,701)

413,544

65,388,181

Total liabilities and net position

$77,665,733

$50,415

$499,726

$78,215,874


The net results of operations of the earmarked funds for the year ended September 30, 2007 is shown below.

 

 

 

Unemployment

Black Lung
Disability

Other

Total

(Dollars in thousands)

Cost, net of earned revenues

 

Benefits

$(32,325,084)

$(285,632)

$(3,139)

$(32,613,855)

 

Grants

-

-

(103,179)

(103,179)

 

Interest

(3,772)

(717,214)

-

(720,986)

 

Administrative

(446,430)

(593)

(19,615)

(466,638)

 

 

 

(32,775,286)

(1,003,439)

(125,933)

(33,904,658)

 

Earned revenue

723,914

-

-

723,914

 

 

 

(32,051,372)

(1,003,439)

(125,933)

(33,180,744)

Net financing sources

 

Taxes

39,271,749

639,197

-

39,910,946

 

Interest

3,344,577

463

3,537

3,348,577

 

Reimbursement of unemployment benefits

1,632,863

-

-

1,632,863

 

Imputed financing

-

-

253

253

 

Transfers-in

 

 

Department of Homeland Security

-

-

193,355

193,355

 

Transfers-out

 

 

DOL entities

(3,604,321)

(59,179)

-

(3,663,500)

 

 

 

40,644,868

580,481

197,145

41,422,494

 

Net results of operations

8,593,496

(422,958)

71,212

8,241,750

Net position, beginning of period

66,408,842

(9,604,743)

342,332

57,146,431

Net position, end of period

$75,002,338

$(10,027,701)

$413,544

$65,388,181


The financial position of the earmarked funds as of September 30, 2006 is shown below.

 

 

 

 

Unemployment

Black Lung
Disability

Other

Total

(Dollars in thousands)

 

 

 

 

Assets

 

 

 

 

 

Intra-governmental

 

 

 

 

 

 

Funds with U.S. Treasury

$60,257

$39,251

$330,775

$430,283

 

 

Investments

66,212,640

-

80,348

66,292,988

 

 

Interest receivable from investments

743,299

-

2,234

745,533

 

 

Accounts receivable, net

 

 

 

 

 

 

 

Due from other Federal agencies

 

 

 

 

 

 

for UCX and UCFE benefits

335,023

-

-

335,023

 

Total intra-governmental

67,351,219

39,251

413,357

67,803,827

 

Accounts receivable, net

 

 

 

 

 

 

State unemployment tax

266,544

-

-

266,544

 

 

Due from reimbursable employers

511,659

-

-

511,659

 

 

Benefit overpayments

183,437

8,800

-

192,237

 

 

Other

-

-

2

2

 

Advances

474,153

-

3,525

477,678

 

Other

-

-

23

23

Total assets

$68,787,012

$48,051

$416,907

$69,251,970

Liabilities

 

 

 

 

 

Intra-governmental

 

 

 

 

 

 

Accounts payable to DOL agencies

$1,208,229

$-

$-

$1,208,229

 

 

Advances from U.S. Treasury

-

9,631,557

-

9,631,557

 

 

Amounts held for the Railroad

 

 

 

 

 

 

Retirement Board

101,514

-

-

101,514

 

 

Other

-

-

7,689

7,689

 

Total intra-governmental

1,309,743

9,631,557

7,689

10,948,989

 

Accounts payable

-

-

10,654

10,654

 

Accrued benefits

1,068,427

21,237

-

1,089,664

 

Future workers' compensation benefits

-

-

55,610

55,610

 

Other

-

-

622

622

Total liabilities

2,378,170

9,652,794

74,575

12,105,539

Net position

 

 

 

 

 

Cumulative results of operations

66,408,842

(9,604,743)

342,332

57,146,431

Total liabilities and net position

$68,787,012

$48,051

$416,907

$69,251,970


The net results of operations of the earmarked funds for the year ended September 30, 2006 is shown below.

 

 

 

Unemployment

Black Lung
Disability

Other

Total

(Dollars in thousands)

 

 

 

 

Cost, net of earned revenues

 

 

 

 

 

Benefits

$(31,025,168)

$(299,479)

$(2,051)

$(31,326,698)

 

Grants

-

-

(51,388)

(51,388)

 

Interest

(3,010)

(694,964)

-

(697,974)

 

Administrative

(295,807)

(342)

(15,647)

(311,796)

 

 

 

(31,323,985)

(994,785)

(69,086)

(32,387,856)

 

Earned revenue

818,294

-

-

818,294

 

 

 

(30,505,691)

(994,785)

(69,086)

(31,569,562)

Net financing sources

 

 

 

 

 

Taxes

41,406,645

607,387

-

42,014,032

 

Interest

2,780,114

297

3,647

2,784,058

 

Reimbursement of unemployment benefits

1,855,188

-

-

1,855,188

 

Imputed financing

-

-

238

238

 

Transfers-in

 

 

 

 

 

 

Department of Homeland Security

-

-

390,823

390,823

 

Transfers-out

 

 

 

 

 

 

DOL entities

(3,623,927)

(57,633)

-

(3,681,560)

 

 

 

42,418,020

550,051

394,708

43,362,779

 

Net results of operations

11,912,329

(444,734)

325,622

11,793,217

Net position, beginning of period

54,496,513

(9,160,009)

16,710

45,353,214

Net position, end of period

$66,408,842

$(9,604,743)

$342,332

$57,146,431


NOTE 22 — DEDICATED COLLECTIONS

The Department administers four trust funds that receive dedicated collections. Statement of Federal Financial Accounting Standards 27, Identifying and Reporting Earmarked Funds, became effective in FY 2006. This standard affected former standards dealing with dedicated collections, and as a result, the Unemployment Trust Fund and the Black Lung Disability Trust Fund were classified as earmarked funds. The financial position of the two remaining trust funds as of September 30, 2007 is shown below.

 

Longshore
and Harbor
Workers'
Compensation
Act

District of
Columbia
Workmen's
Compensation
Act

(Dollars in thousands)

 

 

Assets

 

 

 

Intra-governmental

 

 

 

 

Funds with U.S. Treasury

$154

$75

 

 

Investments

69,979

6,585

 

 

Interest receivable from investments

16

1

 

Total intra-governmental

70,149

6,661

 

Other accounts receivable, net

3,803

327

Total assets

$73,952

$6,988

Liabilities

 

 

 

Accrued benefits

$3,655

$298

 

Other

39,408

2,557

Total liabilities

43,063

2,855

Net position

 

 

 

Cumulative results of operations

30,889

4,133

Total liabilities and net position

$73,952

$6,988


The net results of operations of each trust fund for the year ended September 30, 2007 is shown below.

 

 

 

Longshore
and Harbor
Workers'
Compensation
Act

District of
Columbia
Workmen's
Compensation
Act

(Dollars in thousands)

 

 

Cost, net of earned revenues

 

 

 

Benefits

$(129,040)

$(9,819)

Net financing sources

 

 

 

Interest

2,077

250

 

Assessments

128,934

11,264

 

Transfers-out

 

 

 

 

DOL entities

(2,042)

-

 

 

 

128,969

11,514

 

Net results of operations

(71)

1,695

Net position, beginning of period

30,960

2,438

Net position, end of period

$30,889

$4,133


The financial position of each trust fund as of September 30, 2006 is shown below.

 

 

 

Longshore
and Harbor
Workers'
Compensation
Act

District of
Columbia
Workmen's
Compensation
Act

(Dollars in thousands)

 

 

Assets

 

 

 

Intra-governmental

 

 

 

 

Funds with U.S. Treasury

$154

$76

 

 

Investments

73,146

5,611

 

 

Interest receivable from investments

10

1

 

Total intra-governmental

73,310

5,688

 

Other accounts receivable, net

2,431

412

Total assets

$75,741

$6,100

Liabilities

 

 

 

Intra-governmental

 

 

 

 

Accounts payable to DOL agencies

$2,028

$-

 

Accrued benefits

3,382

283

 

Other

39,371

3,379

Total liabilities

44,781

3,662

Net position

 

 

Cumulative results of operations

30,960

2,438

Total liabilities and net position

$75,741

$6,100


The net results of operations of each trust fund for the year ended September 30, 2006 is shown below.

 

 

 

Longshore
and Harbor
Workers'
Compensation
Act

District of
Columbia
Workmen's
Compensation
Act

(Dollars in thousands)

 

 

Cost, net of earned revenues

 

 

 

Benefits

$(133,694)

$(10,112)

Net financing sources

 

 

 

Interest

2,016

155

 

Assessments

138,857

10,789

 

Transfers-out

 

 

 

 

DOL entities

(2,028)

-

 

 

 

138,845

10,944

 

Net results of operations

5,151

832

Net position, beginning of period

25,809

1,606

Net position, end of period

$30,960

$2,438


NOTE 23 — BALANCE SHEET CLASSIFICATIONS AGGREGATED TO CONFORM WITH OMB CIRCULAR NO. A-136 CLASSIFICATIONS

The Department’s consolidated balance sheet has different classifications of certain assets and liabilities from those suggested in OMB Circular No. A-136. The following aggregate Department of Labor classifications into OMB Circular No. A-136 classifications.

 

 

 

 

2007

2006

(Dollars in thousands)

 

 

 

ASSETS

 

 

 

 

Intra-governmental

 

 

 

 

 

Other

 

 

 

 

 

 

Interest receivable from investments

$883,360

$745,556

 

 

 

Advances

-

4

 

 

Total other

 

$883,360

$745,560

 

Other

 

 

 

 

 

Advances

 

$541,565

$555,294

 

Total other

 

$541,565

$555,294

LIABILITIES

 

 

 

 

Federal employee and veteran benefits

 

 

 

 

Future workers' compensation benefits

$635,848

$548,314

 

Total Federal employee and veteran benefits

$635,848

$548,314

 

Other

 

 

 

 

 

Energy employees occupational illness

 

 

 

 

compensation benefits

 

$7,501,838

$6,942,442

 

 

Accrued leave

 

101,257

97,522

 

 

Other liabilities

 

260,374

217,313

 

Total other

 

$7,863,469

$7,257,277

 

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