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Secretary of Labor Thomas E. Perez
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DOL Annual Report, Fiscal Year 2009
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 2009 and 2008 consisted of the following:

(Dollars in thousands)

2009

2008

Direct Obligations

 

 

Category A

$4,269,886

$4,075,613

Category B

44,407,391

9,137,416

Exempt from apportionment

126,042,413

49,244,270

Total direct obligations

174,719,690

62,457,299

Reimbursable Obligations

 

 

Category A

231,280

206,345

Category B

2,843,755

2,775,832

Total reimbursable obligations

3,075,035

2,982,177

 

$177,794,725

$65,439,476




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, 2009 and 2008 reclassified from unobligated balances to UTF unavailable collections is presented on the following page.

(Dollars in millions)

2009

2008

Unemployment Trust Fund unavailable collections, beginning

$69,509

$72,448

Budget authority from current year appropriations and borrowing authority

66,556

43,852

Less obligations

(121,844)

(46,791)

Excess (deficiency) of budget authority over obligations

(55,288)

(2,939)

Unemployment Trust Fund unavailable collections, ending

$14,221

$69,509




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, 2009 has not been published as of the issue date of these financial statements. This document will be available in February 2010.

A reconciliation of budgetary resources, obligations incurred and net 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, 2008 is shown below.

(Dollars in millions)

Budgetary Resources

Obligations Incurred

Distributed Offsetting Receipts

Net Outlays

Combined Statement of Budgetary Resources

$69,597

$65,439

(741)

$57,498

Pension Benefit Guaranty Corporation reported separately

17,817

4,735

-

1,377

Distributed offsetting receipts

-

-

-

741

Expired accounts

(1,077)

(36)

-

-

Other

(24)

(16)

(36)

1

Budget of the United States Government

$86,313

$70,122

$(777)

$59,617




E.  Undelivered Orders

Undelivered orders at September 30, 2009 and 2008 were as follows.

(Dollars in thousands)

2009

2008

Undelivered orders

$12,169,557

$5,604,384




F.  Appropriations Received

The Combined Statement of Budgetary Resources discloses appropriations received of $167,464 and $58,784 million for FY 2009 and 2008, respectively. Appropriations received on the Consolidated Statement of Changes in Net Position are $43,475 and $10,936 million for FY 2009 and 2008, respectively. The differences of $123,989 and $47,848 million primarily represent certain fiduciary and earmarked receipts recognized as exchange revenue or non-exchange revenue reported on the Consolidated Statement of Net Cost or the Consolidated Statement of Changes in Net Position, respectively, in the current or prior years. Detail of these differences is presented below.

(Dollars in millions)

2009

2008

Receipts recognized as revenue in current or prior years

 

 

Unemployment Trust Fund

$113,894

$46,854

Black Lung Disability Trust Fund

7,177

671

Other earmarked funds

193

193

Fiduciary funds (Dedicated collections in 2008)

145

130

 

121,409

47,848

Other

 

 

Unemployment Trust Fund borrowing authority realized

(7,950)

-

Black Lung Disability Trust Fund redemption of debt

10,484

-

Other

46

-

 

2,580

-

 

$123,989

$47,848




G. Borrowing Authority

As of September 30, 2009, section 2 of P.L. 111-46 (123 Stat. 1970 dated August 7, 2009) granted borrowing authority for repayable advances and other debt in the amount of “such sums as may be necessary” to the following trust funds: (1) Unemployment Trust Fund for advances as authorized by sections 905(d) and 1203 of the Social Security Act and (2) Black Lung Disability Trust Fund (BLDTF) for advances as authorized by section 9501(c)(1) of the Internal Revenue Code. Although section 9501 of the Internal Revenue Code and section 2 of P.L. 111-46 both use the terminology "advance," the Treasury has interpreted this to mean any debt owed by the BLDTF to the Bureau of the Public Debt.NOTE 19 — RECONCILIATION OF BUDGETARY RESOURCES OBLIGATED TO



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

(Dollars in thousands)

2009

2008

Resources used to finance activities

 

 

Budgetary resources obligated

 

 

 

Obligations incurred

 

$177,794,725

$65,439,476

 

Recoveries of prior year obligations

 

(262,069)

(418,195)

 

Less spending authority from offsetting collections

 

(7,191,289)

(6,718,139)

 

Obligations, net of offsetting collections and recoveries

 

170,341,367

58,303,142

Other resources

   

 

 

Imputed financing from costs absorbed by others

 

136,653

118,009

 

Transfers, net

 

2,803

3,191

 

Exchange revenue not in budget

 

(2,211,750)

(733,748)

Total resources used to finance activities

168,269,073

57,690,594

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

 

(5,825,269)

(139,399)

Resources that finance the acquisition of assets

 

(98,743)

(102,539)

Obligations of fiduciary funds

 

(140,736)

-

Transfers that do not effect the net cost of operations

 

(23,809,019)

-

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

(29,873,767)

(241,938)

Total resources used to finance the net cost of operations

138,395,306

57,448,656

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

     

 

Depreciation and amortization

 

(4,196)

10,250

 

Revaluation of assets and liabilities

 

503,072

803,610

 

Benefit overpayments

 

233,161

(27,912)

Total

 

732,037

785,948

Components not requiring or generating resources

     

 

Depreciation and amortization

 

76,038

66,248

 

Revaluation of assets and liabilities

 

656,595

483,119

 

Benefit overpayments

 

(741,485)

(476,977)

Total

 

(8,852)

72,390

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

723,185

858,338

Net cost of operations

$139,118,491

$58,306,994




NOTE 20 — SOURCES AND DISPOSITIONS OF CUSTODIAL REVENUE

Custodial revenues in 2009 consisted of the following:

(Dollars in thousands)

Cash Collections

Less Refunds

Net Cash Collections and Transfers to U.S. Treasury General Fund

Increase (Decrease) in Amounts to be Collected and Transferred

Total Revenues

Civil monetary penalties

 

 

 

 

 

OSHA

$65,418

$(145)

$65,273

$6,077

$71,350

MSHA

63,527

(120)

63,407

954

64,361

EBSA

25,511

(475)

25,036

(203)

24,833

ESA

15,947

-

15,947

53

16,000

 

170,403

(740)

169,663

6,881

176,544

ETA disallowed grant costs

5,479

-

5,479

648

6,127

Other

1,292

(4)

1,288

(1)

1,287

 

$177,174

$(744)

$176,430

$7,528

$183,958




Custodial revenues in 2008 consisted of the following:

(Dollars in thousands)

Cash Collections

Less Refunds

Net Cash Collections and Transfers to U.S. Treasury General Fund

Increase (Decrease) in Amounts to be Collected and Transferred

Total Revenues

Civil monetary penalties

 

 

 

 

 

OSHA

$71,367

$(182)

$71,185

$1,362

$72,547

MSHA

56,004

-

56,004

8,083

64,087

EBSA

25,776

-

25,776

(5,286)

20,490

ESA

27,442

-

27,442

(1,305)

26,137

 

180,589

(182)

180,407

2,854

183,261

ETA disallowed grant costs

15,627

-

15,627

(19,392)

(3,765)

Other

1,209

-

1,209

(286)

923

 

$197,425

$(182)

$197,243

$(16,824)

$180,419




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, 2009 is shown below.

(Dollars in thousands)

Unemployment

Black Lung Disability

Other

Total

Assets

 

 

 

 

Intra-governmental

 

 

 

 

 

Funds with U.S. Treasury

$1,988,130

$52,469

$344,578

$2,385,177

 

Investments

19,845,269

-

73,254

19,918,523

 

Accounts receivable, net

 

 

 

 

 

Due from other Federal agencies for UCX and UCFE benefits

475,630

-

-

475,630

Total intra-governmental

22,309,029

52,469

417,832

22,779,330

Accounts receivable, net

 

 

 

 

 

State unemployment tax

262,970

-

-

262,970

 

Due from reimbursable employers

687,213

-

-

687,213

 

Benefit overpayments

308,359

15,129

-

323,488

 

Other

-

-

2

2

Advances

1,510,624

-

-

1,510,624

Other

-

-

588

588

Total assets

 

 

 

 

Liabilities

$25,078,195

$67,598

$418,422

$25,564,215

Intra-governmental

 

 

 

 

 

Accounts payable to DOL agencies

$2,283,650

$-

$-

$2,283,650

 

Debt

7,981,387

6,370,580

-

14,351,967

 

Amounts held for the Railroad

 

 

 

 

 

Retirement Board

35,552

-

-

35,552

 

Other

-

-

7,372

7,372

Total intra-governmental

10,300,589

6,370,580

7,372

16,678,541

Accounts payable

-

-

10,371

10,371

Future workers' compensation benefits

-

-

55,925

55,925

Accrued benefits

4,238,749

17,339

-

4,256,088

Other

-

-

624

624

Total liabilities

14,539,338

6,387,919

74,292

21,001,549

Net position

 

 

 

 

Cumulative results of operations

10,538,857

(6,320,321)

344,130

4,562,666

Total liabilities and net position

$25,078,195

$67,598

$418,422

$25,564,215




The net results of operations of the earmarked funds for the year ended September 30, 2009 is shown below.

(Dollars in thousands)

Unemployment

Black Lung Disability

Other

Total

Cost, net of earned revenues

 

 

 

 

Benefits

$(114,281,060)

$(240,625)

$(8,739)

$(114,530,424)

Grants

-

-

(110,869)

(110,869)

Interest

(34,228)

(231,292)

-

(265,520)

Loss on debt refinancing

-

(2,495,660)

-

(2,495,660)

Administrative and other

(368,303)

(384)

(15,688)

(384,375)

 

 

(114,683,591)

(2,967,961)

(135,296)

(117,786,848)

Earned revenue

1,004,431

-

-

1,004,431

 

 

(113,679,160)

(2,967,961)

(135,296)

(116,782,417)

Net financing sources

 

 

 

 

Taxes

35,309,497

644,881

-

35,954,378

Interest

2,056,548

1,283

1,976

2,059,807

Reimbursement of unemployment benefits

2,763,817

-

-

2,763,817

Imputed financing

-

-

170

170

Transfers-in

 

 

 

 

 

Department of Homeland Security

-

-

94,451

94,451

 

DOL entities

17,273,663

6,497,989

-

23,771,652

Transfers-out

 

 

 

 

 

DOL entities

(5,294,564)

(57,327)

-

(5,351,891)

 

 

52,108,961

7,086,826

96,597

59,292,384

Net results of operations

(61,570,199)

4,118,865

(38,699)

(57,490,033)

Net position, beginning of period

72,109,056

(10,439,186)

382,829

62,052,699

Net position, end of period

$10,538,857

$(6,320,321)

$344,130

$4,562,666



The financial position of the earmarked funds as of September 30, 2008 is shown below.

(Dollars in thousands)

Unemployment

Black Lung Disability

Other

Total

Assets

 

 

 

 

Intra-governmental

 

 

 

 

 

Funds with U.S. Treasury

$(147,882)

$53,064

$381,801

$286,983

 

Investments

73,295,222

-

77,123

73,372,345

 

Accounts receivable, net

 

 

 

 

 

Due from other Federal agencies for UCX and UCFE benefits

292,981

-

-

292,981

Total intra-governmental

73,440,321

53,064

458,924

73,952,309

Accounts receivable, net

 

 

 

 

 

State unemployment tax

183,985

-

-

183,985

 

Due from reimbursable employers

473,802

-

-

473,802

 

Benefit overpayments

220,191

10,776

-

230,967

 

Other

-

-

2

2

Advances

706,556

-

-

706,556

Other

-

-

366

366

Total assets

$75,024,855

$63,840

$459,292

$75,547,987

Liabilities

 

 

 

 

Intra-governmental

 

 

 

 

 

Accounts payable to DOL agencies

 

$1,176,351

$-

$-

$1,176,351

 

Debt

-

10,483,557

-

10,483,557

 

Amounts held for the Railroad

 

 

 

 

 

Retirement Board

110,455

-

-

110,455

 

Other

-

-

7,616

7,616

Total intra-governmental

1,286,806

10,483,557

7,616

11,777,979

Accounts payable

-

-

14,683

14,683

Future workers' compensation benefits

 

 

-

-

53,562

53,562

Accrued benefits

1,628,993

19,469

-

1,648,462

Other

-

-

602

602

Total liabilities

2,915,799

10,503,026

76,463

13,495,288

Net position

 

 

 

 

Cumulative results of operations

72,109,056

(10,439,186)

382,829

62,052,699

Total liabilities and net position

$75,024,855

$63,840

$459,292

$75,547,987




The net results of operations of the earmarked funds for the year ended September 30, 2008 is shown below.

(Dollars in thousands)

Unemployment

Black Lung Disability

Other

Total

Cost, net of earned revenues

 

 

 

 

Benefits

$(42,533,112)

$(266,960)

$(8,538)

$(42,808,610)

Grants

-

-

(90,490)

(90,490)

Interest

(3,519)

(739,469)

-

(742,988)

Administrative and other

(414,822)

(376)

(21,769)

(436,967)

 

(42,951,453)

(1,006,805)

(120,797)

(44,079,055)

Earned revenue

711,675

-

-

711,675

 

(42,239,778)

(1,006,805)

(120,797)

(43,367,380)

Net financing sources

 

 

 

 

Taxes

37,655,181

652,650

-

38,307,831

Interest

3,635,617

551

3,108

3,639,276

Reimbursement of unemployment benefits

1,768,182

-

-

1,768,182

Imputed financing

-

-

195

195

Transfers-in

 

 

 

 

 

Department of Homeland Security

-

-

86,779

86,779

 

DOL entities

2,396

-

-

2,396

Transfers-out

 

 

 

 

 

DOL entities

(3,714,880)

(57,881)

-

(3,772,761)

 

39,346,496

595,320

90,082

40,031,898

Net results of operations

(2,893,282)

(411,485)

(30,715)

(3,335,482)

Net position, beginning of period

75,002,338

(10,027,701)

413,544

65,388,181

Net position, end of period

$72,109,056

$(10,439,186)

$382,829

$62,052,699



NOTE 22 — FIDUCIARY ACTIVITY

The Department has one deposit fund and two trust funds that fall under the definition of fiduciary activity promulgated by SFFAS 31, "Accounting for Fiduciary Activities” which the Department implemented effective October 1, 2008. The schedule of fiduciary activity for these funds for the year ended September 30, 2009 is shown below.

(Dollars in thousands)

Wage and Hour and Public Contracts Restitution Fund

Longshore and Harbor Workers' Compensation Act Trust Fund

District of Columbia Workmen's Compensation Act Trust Fund

Total Fiduciary Funds

Fiduciary activity

 

 

 

 

Assessments

$37,941

$130,209

$10,730

$178,880

Investment earnings

-

44

4

48

Administrative and other expenses

-

(2,101)

-

(2,101)

Transfer of funds to Treasury

(9,783)

-

-

(9,783)

Disbursements to beneficiaries

(23,653)

(128,993)

(9,777)

(162,423)

 

Increase (decrease) in fiduciary net assets

4,505

(841)

957

4,621

Fiduciary net assets, beginning of year

81,942

27,245

3,023

112,210

Fiduciary net assets, end of year

$86,447

$26,404

$3,980

$116,831




The schedule of fiduciary net assets for these funds as of September 30, 2009 is shown below.

(Dollars in thousands)

Wage and Hour and Public Contracts Restitution Fund

Longshore and Harbor Workers' Compensation Act Trust Fund

District of Columbia Workmen's Compensation Act Trust Fund

Total Fiduciary Funds

Fiduciary assets

 

 

 

 

Cash

$80,034

$2,085

$995

$83,114

Investments

-

58,969

5,228

64,197

Other assets

6,413

3,756

674

10,843

Less: liabilities

-

(38,406)

(2,917)

(41,323)

Total fiduciary net assets

$86,447

$26,404

$3,980

$116,831




Unqualified opinions were given on separate financial statements issued for the Longshore and Harbor Workers’ Compensation Act Trust Fund and the District of Columbia Workmen’s Compensation Act Trust Fund for FY 2008. These separate financial statements were presented in accordance with U.S. GAAP.



NOTE 23 — SUBSEQUENT EVENTS

The financial statements, notes, and required supplementary information do not reflect the effects of the subsequent events described below.

A. P.L. 111-92, the Worker, Homeownership, and Business Assistance Act of 2009

P.L. 111-92, the Worker, Homeownership, and Business Assistance Act of 2009, was enacted on November 6, 2009. The Act amended section 4002 of P.L. 110-252 (26 USC 3304 note), Supplemental Appropriations Act, 2008, to extend unemployment benefits to eligible recipients up to 14 additional weeks in all States and a total of up to 20 additional weeks in States with unemployment of 8.5 percent or greater. The Act also amended section 3301 of the Internal Revenue Code of 1986 to extend the 0.2 percent Federal Unemployment Tax Act (FUTA) surtax on covered employers through June 30, 2011. No benefits are payable for weeks of unemployment commencing before the date of enactment of the Act.

B. Employment Standards Administration

The Employment Standards Administration (ESA) was dissolved on November 8, 2009. The Wage and Hour Division (WHD), Office of Federal Contract Compliance Programs (OFCCP), Office of Workers’ Compensation Programs (OWCP), and Office of Labor-Management Standards (OLMS) now report directly to the Office of the Secretary.

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