United States Department of Labor

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:

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.

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.

E.  Undelivered Orders

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

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.

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

NOTE 20 — SOURCES AND DISPOSITIONS OF CUSTODIAL REVENUE

Custodial revenues in 2009 consisted of the following:

Custodial revenues in 2008 consisted of the following:

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.

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

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

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

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.

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

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.