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Secretary of Labor Thomas E. Perez
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DOL Annual Report, Fiscal Year 2008
Performance and Accountability Report

Principal Financial Statements and Notes

NOTE 2 — FUNDS WITH U.S. TREASURY

Funds with U.S. Treasury at September 30, 2008 consisted of the following:

 

Entity Assets

 

 

(Dollars in thousands)

Entity
Assets
Unobligated 
Balance
Available 

Unobligated
Balance 
Unavailable 

Obligated
Balance
Not Yet
Disbursed 

Total 
Entity
Assets 

Non-entity 
Assets 

Total 

Revolving funds

$13,388

$-

$45,518

$58,906

$-

$58,906

Trust funds

192,605

-

(285,620)

(93,015)

(503)

(93,518)

General funds

2,489,715

1,340,149

5,555,362

9,385,226

-

9,385,226

Other

-

-

-

-

78,316

78,316

 

$2,695,708

$1,340,149

$5,315,260

$9,351,117

$77,813

$9,428,930




Funds with U.S. Treasury at September 30, 2007 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

$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




The negative fund balances reported as of September 30, 2008 and 2007 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 at September 30, 2008 includes $378 million of funds apportioned for use in the subsequent year.




NOTE 3 — INVESTMENTS

Investments at September 30, 2008 consisted of the following:

(Dollars in thousands)

Face 
Value 

Premium 
(Discount) 

Interest 
Receivable 

Net 
Value 

Market 
Value 

Unemployment Trust Fund

 

 

 

 

 

Non-marketable

 

 

 

 

 

Special issue U.S. Treasury Bonds

   

 

 

 

4.875% maturing June 30, 2009

3,304,955

-

40,279

3,345,234

3,304,955

5.000% maturing June 30, 2009

11,000,000

-

137,500

11,137,500

11,000,000

5.000% maturing June 30, 2010

24,855,747

-

310,697

25,166,444

24,855,747

4.500% maturing June 30, 2010

5,000,000

-

56,250

5,056,250

5,000,000

4.500% maturing June 30, 2011

28,271,737

-

318,057

28,589,794

28,271,737

 

72,432,439

-

862,783

73,295,222

72,432,439

Panama Canal Commission Compensation Fund

 

 

 

 

 

Marketable

 

 

 

 

 

U.S. Treasury Notes

 

 

 

 

 

3.500% to 4.750% various maturities

70,089

5

1,166

71,260

71,247

U.S. Treasury Bonds

 

 

 

 

 

11.750% various maturities

5,163

472

228

5,863

5,729

 

75,252

477

1,394

77,123

76,976

Longshore and Harbor Workers' Compensation Act Trust Fund

   

 

 

 

Non-marketable

 

 

 

 

 

One Day Certificate

 

 

 

 

 

0.330% maturing October 1, 2008

61,905

-

-

61,905

61,905

District of Columbia Workmen's Compensation Act Trust Fund

   

 

 

 

Non-marketable

 

 

 

 

 

One Day Certificate

 

 

 

 

 

0.330% maturing October 1, 2008

5,160

-

-

5,160

5,160

Energy Employees Occupational Illness Compensation Fund

   

 

 

 

Non-marketable

 

 

 

 

 

One Day Certificate

 

 

 

 

 

0.330% maturing October 1, 2008

125,265

-

-

125,265

125,265

 

$72,700,021

$477

$864,177

$73,564,675

$72,701,745

Entity investments

$72,590,369

$477

$862,871

$73,453,717

$72,592,093

Non-entity investments

109,652

-

1,306

110,958

109,652

 

$72,700,021

$477

$864,177

$73,564,675

$72,701,745




Investments at September 30, 2007 consisted of the following:

(Dollars in thousands)

Face 
Value 

Premium 
(Discount) 

Interest 
Receivable 

Net 
Value 

Market 
Value 

Unemployment Trust Fund

 

 

 

 

 

Non-marketable

 

 

 

 

 

U.S. Treasury Certificates of Indebtedness

   

 

 

 

5.000% maturing June 30, 2008

8,208,313

-

64,004

8,272,317

8,208,313

Special issue U.S. Treasury Bonds

   

 

 

 

4.625% maturing June 30, 2008

10,879,148

-

125,790

11,004,938

10,879,148

4.875% maturing June 30, 2008

10,000,000

-

121,875

10,121,875

10,000,000

4.875% maturing June 30, 2009

9,980,072

-

121,632

10,101,704

9,980,072

5.000% maturing June 30, 2009

11,000,000

-

137,500

11,137,500

11,000,000

5.000% maturing June 30, 2010

24,855,747

-

310,697

25,166,444

24,855,747

 

74,923,280

-

881,498

75,804,778

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)

753

43,763

43,418

U.S. Treasury Bonds

 

 

 

 

 

10.375% to 11.750% various maturities

27,078

1,013

1,080

29,171

28,054

 

77,400

828

1,833

80,061

78,610

Longshore and Harbor Workers' Compensation Act Trust Fund

   

 

 

 

Non-marketable

 

 

 

 

 

One Day Certificate

 

 

 

 

 

3.99% maturing October 1, 2007

69,979

-

16

69,995

69,979

District of Columbia Workmen's Compensation Act Trust Fund

   

 

 

 

Non-marketable

 

 

 

 

 

One Day Certificate

 

 

 

 

 

3.99% maturing October 1, 2007

6,585

-

1

6,586

6,585

Energy Employees Occupational Illness Compensation Fund

   

 

 

 

Non-marketable

 

 

 

 

 

One Day Certificate

 

 

 

 

 

3.99% maturing October 1, 2007

53,062

-

12

53,074

53,062

 

$75,130,306

$828

$883,360

$76,014,494

$75,131,516

Entity investments

$75,022,470

$828

$882,091

$75,905,389

$75,023,680

Non-entity investments

107,836

-

1,269

109,105

107,836

 

$75,130,306

$828

$883,360

$76,014,494

$75,131,516




NOTE 4 — ACCOUNTS RECEIVABLE, NET OF ALLOWANCE

Accounts receivable at September 30, 2008 consisted of the following:

(Dollars in thousands)

Gross
Receivables 

Allowance 

Net
Receivables 

Entity intra-governmental assets

 

 

 

 

Due for UCFE and UCX benefits

$292,833

$-

$292,833

 

Due for workers' compensation benefits

3,771,775

-

3,771,775

 

Other

12,269

-

12,269

 

 

4,076,877

-

4,076,877

Entity assets

 

 

 

 

State unemployment taxes

823,667

(639,682)

183,985

 

Due from reimbursable employers

502,342

(28,540)

473,802

 

Benefit overpayments

1,935,897

(1,678,795)

257,102

 

Other

13,126

(2,127)

10,999

 

 

3,275,032

(2,349,144)

925,888

Non-entity assets

 

 

 

 

Fines and penalties

76,778

(32,605)

44,173

 

Backwages

16,785

(10,418)

6,367

 

 

93,563

(43,023)

50,540

 

 

3,368,595

(2,392,167)

976,428

 

 

$7,445,472

$(2,392,167)

$5,053,305




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

(Dollars in thousands)

Gross
Receivables 

Allowance 

Net
Receivables 

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




NOTE 5 — PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION

Property, plant and equipment at September 30, 2008 consisted of the following:

(Dollars in thousands)

Cost 

Accumulated
Depreciation
/Amortization 

Net
Book
Value 

Structures, facilities and improvements

 

Structures and facilities

$1,067,982

$(437,047)

$630,935

 

Improvements to leased facilities

423,580

(233,798)

189,782

 

 

1,491,562

(670,845)

820,717

Furniture and equipment

 

 

Equipment held by contractors

166,504

(159,612)

6,892

 

Furniture and equipment

51,777

(36,132)

15,645

 

 

218,281

(195,744)

22,537

ADP software

206,369

(92,110)

114,259

Construction-in-progress

90,233

-

90,233

Land

93,253

-

93,253

 

 

$2,099,698

$(958,699)

$1,140,999




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

(Dollars in thousands)

Cost 

Accumulated
Depreciation
/Amortization 

Net
Book
Value 

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




NOTE 6 — ADVANCES

Advances at September 30, 2008 and 2007 consisted of the following:

(Dollars in thousands)

2008 

2007 

Advances to states for UI benefit payments

$706,556

$509,848

Advances to grantees and contractors to finance future DOL program expenditures

35,947

29,504

Other

13,907

2,213

 

 

 

$756,410

$541,565




NOTE 7 — NON-ENTITY ASSETS

Non-entity assets consisted of the following at September 30, 2008 and 2007:

(Dollars in thousands)

2008 

2007 

Intra-governmental

 

 

 

Funds with U.S. Treasury

$77,813

$79,272

 

Investments

110,958

109,105

 

 

 

188,771

188,377

Accounts receivable, net of allowance

50,540

67,027

 

 

 

$239,311

$255,404




NOTE 8 — ADVANCES FROM U.S. TREASURY

Advances from U.S. Treasury to the Black Lung Disability Trust Fund during 2008 consisted of the following:

(Dollars in thousands)

Balance at
September 30, 2007 

Net
Borrowing 

Balance at
September 30, 2008 

Intra-governmental

 

 

 

Borrowing from the Treasury

$10,057,557

$426,000

$10,483,557




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

(Dollars in thousands)

Balance at
September 30, 2006 

Net
Borrowing 

Balance at
September 30, 2007 

Intra-governmental

 

 

 

Borrowing from the Treasury

$9,631,557

$426,000

$10,057,557

These advances were retired on October 7, 2008 under the refinancing agreement authorized by the enactment of the Energy Improvement and Extension Act of 2008 on October 3, 2008. (See Note 23)




NOTE 9 — FUTURE WORKERS' COMPENSATION BENEFITS

DOL’s liability for future workers’ compensation benefits at September 30, 2008 and 2007 consisted of the following:

(Dollars in thousands)

2008 

2007 

 

Projected gross liability of the Federal government for future FECA benefits

$27,589,632

$26,306,065

 

Less liabilities attributed to other agencies:

 

 

 

U.S. Postal Service

(9,543,798)

(8,923,407)

 

 

Department of Navy

(2,685,911)

(2,694,074)

 

 

Department of Army

(1,980,257)

(1,977,872)

 

 

Department of Veterans Affairs

(1,905,472)

(1,826,564)

 

 

Department of Air Force

(1,395,449)

(1,381,158)

 

 

Department of Transportation

(985,336)

(949,465)

 

 

Department of Homeland Security

(1,795,351)

(1,683,569)

 

 

Tennessee Valley Authority

(532,499)

(538,096)

 

 

Department of Treasury

(593,196)

(573,038)

 

 

Department of Agriculture

(832,013)

(775,281)

 

 

Department of Justice

(1,136,570)

(1,046,480)

 

 

Department of Interior

(692,389)

(659,333)

 

 

Department of Defense, Other

(800,883)

(777,041)

 

 

Department of Health and Human Services

(282,517)

(275,776)

 

 

Social Security Administration

(297,932)

(271,981)

 

 

General Services Administration

(163,826)

(164,883)

 

 

Department of Commerce

(169,580)

(164,416)

 

 

Department of Energy

(104,734)

(105,231)

 

 

Department of State

(68,892)

(68,078)

 

 

Department of Housing & Urban Development

(84,529)

(81,779)

 

 

Department of Education

(16,554)

(16,186)

 

 

National Aeronautics and Space Administration

(63,977)

(64,060)

 

 

Environmental Protection Agency

(44,615)

(39,786)

 

 

Small Business Administration

(27,061)

(26,321)

 

 

Office of Personnel Management

(22,139)

(21,020)

 

 

National Science Foundation

(1,198)

(1,182)

 

 

Nuclear Regulatory Commission

(7,059)

(6,833)

 

 

Agency for International Development

(23,137)

(23,528)

 

 

Other

(569,922)

(533,779)

 

 

 

(26,826,796)

(25,670,217)

 

 

 

$762,836

$635,848

 

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

$473,892

$346,299

 

 

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

235,382

237,920

 

 

FECA benefits due to eligible workers of the Panama Canal Commission

53,562

51,629

 

 

 

$762,836

$635,848




NOTE 10 — ACCRUED BENEFITS

Accrued benefits at September 30, 2008 and 2007 consisted of the following:

(Dollars in thousands)

2008 

2007 

 

State regular and extended unemployment benefits payable

$966,415

$1,053,055

 

Federal extended unemployment benefits payable

39,144

35,945

 

Federal emergency unemployment benefits payable, 2008 

324,534

-

 

Federal temporary extended unemployment benefits payable

23,971

23,641

 

Federal emergency unemployment benefits payable, other

46,739

44,950

 

Federal employees' unemployment benefits payable

25,431

30,432

 

Federal employees' unemployment benefits for existing

 

claims due in the subsequent year

202,759

123,576

 

Total unemployment benefits payable

1,628,993

1,311,599

 

Black lung disability benefits payable

40,003

43,277

 

Federal employees' disability and 10(h) benefits payable

76,952

65,937

 

Energy employees occupational illness compensation benefits payable

24,712

24,006

 

Longshore and harbor workers disability benefits payable

4,571

3,655

 

District of Columbia disability benefits payable

345

298

 

 

 

$1,775,576

$1,448,772




NOTE 11 — OTHER LIABILITIES

Other liabilities at September 30, 2008 and 2007 consisted of the following current liabilities:

(Dollars in thousands)

2008 

2007 

Intra-governmental

 

 

Accrued benefits

$13,055

$10,385

 

Unearned FECA assessments

52,724

51,192

 

Non-entity receipts due to U.S. Treasury

42,803

59,615

 

Amounts held for the Railroad Retirement Board

110,455

108,990

 

Advances from other Federal agencies

300

750

Total intra-governmental

219,337

230,932

Accrued payroll and benefits

59,043

48,280

Due to Backwage recipients

84,925

85,583

Unearned assessment revenue

41,217

41,965

Deposit and clearing accounts

1,127

1,216

Readjustment allowances and other Job Corps liabilities

54,537

83,330

 

 

240,849

260,374

 

 

$460,186

$491,306




NOTE 12 — LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

Liabilities not covered by budgetary resources at September 30, 2008 and 2007 consisted of the following:

(Dollars in thousands)

2008 

2007 

Intra-governmental

 

 

Advances from U.S. Treasury

$10,483,557

$10,057,557

Future workers' compensation benefits

231,965

237,920

Accrued annual leave

105,763

96,014

Readjustment allowances and other Job Corps liabilities

54,537

83,330

 

 

392,265

417,264

 

 

$10,875,822

$10,474,821




NOTE 13 — CONTINGENCIES

The Department is involved in various lawsuits incidental to its operations. Judgments resulting from litigation against the Department are generally 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 2008 consisted of the following:

(Dollars in thousands)

Employer
Contributions 

Costs
Imputed
by OPM 

Total
Pension
Expense 

Civil Service Retirement System

$22,251

$36,925

$59,176

Federal Employees' Retirement System

103,805

-

103,805

Thrift Savings Plan

39,286

-

39,286

 

$165,342

$36,925

$202,267




Pension expense in 2007 consisted of the following:

(Dollars in thousands)

Employer
Contributions 

Costs
Imputed
by OPM 

Total
Pension
Expense 

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

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