Note 1. Summary of Significant Accounting Policies
A. Basis of Presentation
The Departmental consolidated financial statement has been prepared to report the financial position and results from operations of the Department of Transportation (DOT), as required by the Chief Financial Officers Act of 1990 (CFO Act), Title IV of the Government Management Reform Act of 1994 (GMRA). The statement has been prepared from the books and records of DOT in accordance with Office of Management and Budget (OMB) requirements for form and content for entity financial statements and DOT’s accounting policies and procedures.
OMB Circular No. A-136, Financial Reporting Requirements, has been used to prepare the Balance Sheet, Statement of Changes in Net Position, Statement of Budgetary Resources, and Statement of Financing. They are different from the financial reports prepared pursuant to OMB directives that are used to monitor and control the use of budgetary resources. Early implementation was not done for the Statement of Net Cost. OMB Bulletin 01-09, Form and Content of Agency Financial Statements, has been used to prepare the Statement of Net Cost.
The Balance Sheet presents agency assets and liabilities, and the difference between the two, which is the agency net position. Agency assets include both entity assets —those which are available for use by the agency—and non-entity assets —those which are managed by the agency but not available for use in its operations. Agency liabilities include both those covered by budgetary resources (funded) and those not covered by budgetary resources (unfunded).
The Statement of Net Cost presents the gross costs of programs less earned revenue to arrive at the net cost of operations for both programs and for the agency as a whole.
The Statement of Changes in Net Position reports beginning balances, budgetary and other financing sources, and net cost of operations, to arrive at ending balances.
The Statement of Budgetary Resources provides information about how budgetary resources were made available as well as their status at the end of the period. Recognition and measurement of budgetary information reported on this statement is based on budget terminology, definitions, and guidance in OMB Circular No. A-11, Preparation, Submission, and Execution of the Budget, dated June 2005.
The Statement of Financing is intended to be a bridge between an entity’s budgetary and financial (i.e., proprietary) accounting. The Statement of Financing illustrates the relationship between net obligations derived from an entity’s budgetary accounts and net cost of operations derived from an entity’s proprietary accounts by identifying and explaining key differences between the two numbers. Since DOT custodial activity is incidental to Departmental operations and not material, a Statement of Custodial Activity was not prepared. However, sources and dispositions of collections have been disclosed in Note 20 to the financial statements.
The Department is required to be in substantial compliance with all applicable accounting principles and standards established, issued, and implemented by the Federal Accounting Standards Advisory Board (FASAB), which is recognized by the American Institute of Certified Public Accountants (AICPA) as the entity to establish Generally Accepted Accounting Principles (GAAP) for the Federal Government. The Federal Financial Management Improvement Act (FFMIA) of 1996 requires the Department to comply substantially with (1) Federal financial management systems requirements, (2) applicable Federal accounting standards, and (3) the U.S. Government Standard General Ledger at the transaction level.
B. Reporting Entity
The Department serves as the focal point in the Federal Government for the Coordinated National Transportation Policy. It is responsible for ensuring the safety of all forms of transportation; protecting the interests of consumers; international transportation agreements; conducting planning and research for the future; and helping cities and States meet their local transportation needs through financial and technical assistance.
The Department of Transportation is comprised of the Office of the Secretary and the DOT Operating Administrations, each having its own management and organizational structure and collectively providing the necessary services and oversight to ensure the best transportation system possible. The Departmental consolidated financial statement represents the financial data, including various trust funds, revolving funds, appropriations, and special funds of the following organizations.
In November 2004, President Bush signed into law the Norman Y. Mineta Research and Special Program Improvement Act to be enacted in February 2005. This new law split Research and Special Programs Administration (RSPA) who ceases to exist into two different entities, Research and Innovative Technology Administration (RITA) and Pipeline and Hazardous Materials Safety Administration (PHMSA).
The Saint Lawrence Seaway Development Corporation (SLSDC) is also an entity of DOT. However, since it is subject to separate reporting under the Government Corporation Control Act and the dollar value of its activities is not material to Departmental totals, SLSDC’s financial data have not been consolidated in the DOT financial statements. However, condensed information about SLSDC’s financial position is included in Note 21.
C. Budgets and Budgetary Accounting
The Department of Transportation follows standard Federal budgetary accounting policies and practices in accordance with OMB Circular No. A-11, Preparation, Submission, and Execution of the Budget, dated June 2005. Budgetary accounting facilitates compliance with legal constraints and controls over the use of Federal funds. Each year, Congress provides each Operating Administration within the Department appropriations to incur obligations in support of agency programs. For FY 2005 the Department was accountable for trust fund appropriations, general fund appropriations, revolving funds, and borrowing authority. The Department recognizes budgetary resources as assets when cash (funds held by Treasury) is made available through warrants and trust fund transfers.
D. Basis of Accounting
Transactions are generally recorded on an accrual accounting basis and a budgetary basis. Under the accrual method, revenues are recognized when earned, and expenses are recognized with a liability is incurred, without regard to receipt or payment of cash. Budgetary accounting facilitates compliance with legal constraints and controls over the use of Federal funds.
E. Revenues and Other Financing Sources
The Department receives the majority of the funding needed to support all of its programs through appropriations. The Highway Trust Fund, Airport and Airway Trust Fund, and the Treasury General Fund fund some of these appropriations. DOT receives annual, multi-year and no-year appropriations that may be used, within statutory limits, for operating and capital expenditures. Additional amounts are obtained from offsetting collections and user fees (e.g., landing and registry fees) and through reimbursable agreements for services performed for domestic and foreign governmental entities. Additional revenue is earned from gifts from donors, sales of goods and services to other agencies and the public, the collection of fees and fines, interest and dividends on invested funds, and loans and cash disbursements to banks. Interest income received is recognized as revenue on the accrual basis. Appropriations are recognized as revenues as the related program or administrative expenses are incurred.
F. Funds with the U.S. Treasury and Cash
The Department does not generally maintain cash in commercial bank accounts. Cash receipts and disbursements are processed by the U.S. Treasury. The funds with the U.S. Treasury are appropriated, revolving, and trust funds that are available to pay current liabilities and finance authorized purchases. DOT has substantially reduced the number of petty cash (imprest) funds outside the U.S. Treasury to reduce the amount of cash paid outside of Treasury. This reduces the amount of interest that must be paid to borrow funds. Lockboxes have been established with financial institutions to collect payments, and these funds are transferred directly to Treasury on a daily (business day) basis. The Department does not maintain any balances of foreign currencies.
G. Receivables
Accounts receivable consist of amounts owed to the Department by other Federal agencies and the public. Federal accounts receivable are generally the result of the provision of goods and services to other Federal agencies and, with the exception of occasional billing disputes, are considered to be fully collectible. Public accounts receivable are generally the result of the provision of goods and services or the levy of fines and penalties from the Department’s regulatory activities. Amounts due from the public are presented net of an allowance for loss on uncollectible accounts, which is based on historical collection experience and/or an analysis of the individual receivables.
Loans are accounted for as receivables after funds have been disbursed. For loans obligated prior to October 1, 1991, loan principal, interest, and penalties receivable are reduced by an allowance for estimated uncollectible amounts. The allowance is estimated based on past experience, present market conditions, and an analysis of outstanding balances. Loans obligated after September 30, 1991 are reduced by an allowance equal to the present value of the subsidy costs associated with these loans, due to the interest rate differential between the loans and Treasury borrowing, the estimated delinquencies and defaults net of recoveries, the offset from fees, and other estimated cash flows.
H. Inventory and Operating Materials and Supplies
Inventory primarily consists of supplies that are for sale or used in the production of goods for sale. Operating materials and supplies primarily consist of unissued supplies that will be consumed in future operations. Valuation methods for supplies on hand at year-end include historical cost, last acquisition price, standard price/specific identification, standard repair cost, weighted average, and moving average. Expenditures or expenses are recorded when the materials and supplies are consumed or sold. Adjustments for the proper valuation of repairable, excess, obsolete, and unserviceable items are made to appropriate allowance accounts.
I. Investments in U.S. Government Securities
Investments that consist of U.S. Government securities are reported at cost or amortized cost net of premiums or discounts. Premiums or discounts are amortized into interest income over the term of the investment using the interest or straight-line method. The Department’s intent is to hold investments to maturity, unless they are needed to cover losses on loan guarantees, finance programs, or otherwise sustain the operation of the organization. Investments, redemptions, and reinvestments are controlled and processed by the Department of the Treasury.
J. Property and Equipment
DOT agencies have varying methods of determining the value of property and equipment and how it is depreciated. The Department currently has a capitalization threshold of $200,000 for structures and facilities and for internal use software, and $25,000 for other property, plant and equipment. Capitalization at lesser amounts is permitted. Construction in progress is valued at direct (actual) costs plus applied overhead and other indirect costs as accumulated by the regional project material system. The system accumulates costs by project number assigned to the equipment or facility being constructed. The straight-line method is generally used to depreciate capitalized assets.
FASAB standards require DOT stewardship assets to be omitted from the Balance Sheet. Information on stewardship assets, as well as stewardship investments, is presented in the Required Supplementary Stewardship Reporting section of this statement.
K. Prepaid and Deferred Charges
Payments in advance of the receipt of goods and services are recorded as prepaid charges at the time of prepayment and recognized as expenses when the related goods and services are received.
L. Liabilities
Liabilities represent amounts expected to be paid as the result of a transaction or event that has already occurred. Liabilities covered by budgetary resources are liabilities incurred that are covered by realized budgetary resources as of the balance sheet data. Available budgetary resources include new budget authority, spending authority from offsetting collections, recoveries of unexpired budget authority through downward adjustments of prior year obligations, unobligated balances of budgetary resources at the beginning of the year or net transfers of prior year balances during the year, and permanent indefinite appropriations or borrowing authority. Unfunded liabilities are not considered to be covered by such budgetary resources. An example of an unfunded liability is actuarial liabilities for future Federal Employees’ Compensation Act payments. The Government, acting in its sovereign capacity, can abrogate liabilities arising from other than contracts.
M. Contingencies
The criteria for recognizing contingencies for claims are
DOT recognizes material contingent liabilities in the form of claims, legal action, administrative proceedings and environmental suits that have been brought to the attention of legal counsel, some of which will be paid by the Treasury Judgment Fund. It is the opinion of management and legal counsel that the ultimate resolution of these proceedings, actions and claims, will not materially affect the financial position or results of operations.
N. Annual, Sick, and Other Leave
Annual leave is accrued as it is earned, and the accrual is reduced as leave is taken. Accruals for other leave (e.g., credit hours and compensatory leave) are also recorded in the financial statements. Under the OST Working Capital Fund, the liability for accrued annual leave is a funded item. To the extent current or prior year appropriations are not available to fund annual leave earned but not taken, funding will be obtained from future financing sources. Sick leave and other types of non-vested leave are expended as taken.
Air traffic controllers covered under the Federal Employees’ Retirement System (FERS) are eligible, upon retirement, for a sick leave buy-back option. Under this option, an employee who attains the required number of years of service for retirement shall receive a lump sum payment for forty percent of the value of his or her accumulated sick leave as of the effective date of retirement.
O. Retirement Plan
For DOT employees who participate in the Civil Service Retirement System (CSRS), the Department contributes a matching contribution equal to 7 percent of pay. On January 1, 1987, FERS went into effect pursuant to Public Law 99-335. Most employees hired after December 31, 1983 are automatically covered by FERS and Social Security. Employees hired prior to January 1, 1984 could elect to either join FERS and Social Security or remain in CSRS. A primary feature of FERS is that it offers a savings plan to which the Department automatically contributes 1 percent of pay and matches any employee contribution up to an additional 4 percent of pay. For most employees hired since December 31, 1983, DOT also contributes the employer’s matching share for Social Security.
Employing agencies are required to recognize pensions and other post-retirement benefits during the employees’ active years of service. Reporting the assets and liabilities associated with such benefits is the responsibility of the administering agency, the Office of Personnel Management. Therefore, DOT does not report CSRS or FERS assets, accumulated plan benefits, or unfunded liabilities, if any, applicable to employees.
P. Comparative Data
Comparative data for the prior year have been presented for the principal financial statements and their related notes.
Q. Use of Estimates
Management has made certain estimates and assumptions when reporting assets, liabilities, revenue, expenses, and in the note disclosures. Actual results could differ from these estimates. Significant estimates underlying the accompanying financial statements include the allocation of trust fund receipts by the Office of Treasury’s Assessment, year-end accruals of accounts and grants payable, accrued workers’ compensation, and allowance for doubtful accounts receivable. Acutal results may differ from these estimates.
R. Reclassifications
Certain reclassifications were made to the FY 2004 financial statement presentation to conform with that used in FY 2005.
Note 2. Non-Entity Assets
Dollars in Thousands
As of September 30, |
2005 |
2004 |
---|---|---|
Intragovernmental |
||
Fund Balance with Treasury |
$ 7,066 |
$ (20,029) |
Accounts Receivable |
2,931 |
|
Other |
104 | |
Total Intragovernmental |
$ 9,997 |
$ (19,925) |
Accounts Receivable |
1,637 |
1,872 |
Total Non-Entity Assets |
$ 11,634 |
$ (18,053) |
Total Entity Assets |
65,956,912 |
68,304,062 |
Total Assets |
$ 65,968,546 |
$ 68,286,009 |
Note 3. Fund Balance With Treasury
Dollars in Thousands
As of September 30, |
2005 |
2004 |
---|---|---|
Fund Balances |
||
Trust Funds |
$ 4,992,309 |
$ 5,641,157 |
Revolving Funds |
609,041 |
565,957 |
Appropriated Funds |
22,713,473 |
22,940,005 |
Other Fund Types |
826,019 |
574,231 |
Total Fund Balances |
$ 29,140,842 |
$ 29,721,350 |
Status of Fund Balance With Treasury |
||
Unobligated |
||
Available |
$ 8,171,205 |
$ 7,919,946 |
Unavailable |
1,461,669 |
1,192,028 |
Obligated Balance Not Yet Disbursed |
19,145,967 |
20,609,376 |
Non-Budgetary Fund Balance With Treasury |
362,001 |
|
Total Status of Fund Balance With Treasury |
$ 29,140,842 |
$ 29,721,350 |
Fund Balances With Treasury are the aggregate amounts of the entity’s accounts with Treasury for which the entity is authorized to make expenditures and pay liabilities. Other Fund Types include uncleared Suspense Accounts, which temporarily hold collections pending clearance to the applicable account, and Deposit Funds, which are established to record amounts held temporarily until ownership is determined.
Note 4. Investments
Dollars in Thousands
As of September 30, 2005 |
Cost |
Amortized (Premium) Discount |
Investments (Net) |
Other Adjustments |
Market Value Disclosure |
---|---|---|---|---|---|
Intragovernmental Securities |
|||||
Marketable |
$ 65,850 |
$ (799) |
$ 65,051 |
$ (635) |
$ 64,416 |
Non-Marketable |
|||||
Par Value |
18,318,001 |
18,318,001 |
18,318,001 | ||
Market-Based |
528,116 |
(663) |
527,453 |
527,453 | |
Subtotal |
18,911,967 |
(1,462) |
18,910,505 |
(635) |
18,909,870 |
Accrued Interest |
91,129 |
91,129 |
91,129 | ||
Total Intragovernmental |
$19,003,096 |
$ (1,462) |
$ 19,001,634 |
$ (635) |
$ 19,000,999 |
As of September 30, 2004 |
Cost |
Amortized (Premium) Discount |
Investments (Net) |
Other Adjustments |
Market Value Disclosure |
---|---|---|---|---|---|
Intragovernmental Securities |
|||||
Marketable |
$ 88,269 |
$ (1,015) |
$ 87,254 |
$ 674 |
$ 87,928 |
Non-Marketable |
|||||
Par Value |
20,103,444 |
20,103,444 |
20,103,444 | ||
Market-Based |
351,488 |
(342) |
351,146 |
351,146 | |
Subtotal |
20,543,201 |
(1,357) |
20,541,844 |
674 |
20,542,518 |
Accrued Interest |
75,706 |
75,706 |
75,706 | ||
Total Intragovernmental |
$ 20,618,907 |
$ (1,357) |
$ 20,617,550 |
$ 674 |
$ 20,618,224 |
Investments in Federal securities include non-marketable par value Treasury securities, market-based Treasury securities, marketable Treasury securities, and securities issued by other Federal entities. Non-Federal securities include those issued by State and local governments, Government-sponsored enterprises, and other private corporations.
Marketable Federal securities can be bought and sold on the open market. Non-marketable par value Treasury securities are issued by the Bureau of Public Debt to Federal accounts and are purchased and redeemed at par exclusively through Treasury’s Federal Investment Branch. Non-marketable market-based Treasury securities are also issued by the Bureau of Public Debt to Federal accounts. They are not traded on any securities exchange but mirror the prices of particular Treasury securities trading in the Government securities market. Amortization is done using the interest or straight-line method.
Note 5. Accounts Receivable
Dollars in Thousands
Gross Amount Due |
Allowance for Uncollectable Amounts |
FY 2005 Net Amount Due |
FY 2004 Net Amount Due |
|
---|---|---|---|---|
Intragovernmental |
||||
Accounts Receivable |
$ 358,878 |
$ 21 |
$ 358,857 |
$ 189,800 |
Total Intragovernmental |
358,878 |
21 |
358,857 |
189,800 |
Public |
||||
Accounts Receivable |
$ 222,861 |
$ 78,407 |
$ 144,454 |
$ 338,925 |
Accrued Interest |
113 |
113 |
127 | |
Total Public |
222,974 |
78,407 |
144,567 |
339,052 |
Total Receivables |
$ 581,852 |
$ 78,428 |
$ 503,424 |
$ 528,852 |
Allowance for Uncollectible Amounts is based on historical data or actual amounts that are determined to be uncollectible based upon review of individual receivables. Accrued interest includes interest, penalties, and other administrative charges pertaining to accounts receivable.
Note 6. Other Assets
Dollars in Thousands
FY 2005 |
FY 2004 |
|
---|---|---|
Intragovernmental |
||
Advances and Prepayments |
$ 95,627 |
$ 224,038 |
Undistributed Assets and Payments |
3,932 | |
Other |
719 |
1,036 |
Total Intragovernmental |
$ 96,346 |
$ 229,006 |
Public |
||
Advances to the States |
$ 95,861 |
$ 98,557 |
Other Advances and Prepayments |
62,486 |
149,397 |
Other |
2,536 |
669 |
Total Public |
$ 160,883 |
$ 248,623 |
Intragovernmental Other Assets are comprised of advance payments to other Federal Government entities for agency expenses not yet incurred and for goods or services not yet received and undistributed assets and payments for which DOT is awaiting documentation. Public Other Assets are comprised of advances to the States and advances to employees and contractors.
Note 7. Direct Loans and Loan Guarantees, Non-Federal
Borrowers
Dollars in Thousands
DOT administers the following direct loan and/or loan guarantee programs:
An analysis of loans receivable, allowance for subsidy costs, liability for loan guarantees, foreclosed property, modifications, reestimates, and administrative costs associated with the direct loans and loan guarantees is provided in the following sections.
LOANS RECEIVABLE AND RELATED FORECLOSED PROPERTY, NET
FY 2005 |
Loans Receivable, Gross |
Interest Receivable |
Foreclosed Property |
Foreclosed Allowance |
Value of Assets Related to Loans Receivable |
---|---|---|---|---|---|
Direct Loan Programs |
|||||
Prior to FY 1992 Allowance for Loss method |
|||||
(1) Railroad Rehab. Improvement |
$ 26,078 |
$ 26,078 | |||
Direct Loan Programs (After FY 1991) |
|||||
(1) Railroad Rehab. Improvement |
$ 398,197 |
$ 6,453 |
(10,242) |
$ 394,408 | |
(3) TIFIA Loan |
289,876 |
7,099 |
(22,903) |
274,072 | |
Subtotal |
688,073 |
13,552 |
(33,145) |
668,480 |
FY 2004 |
Loans Receivable, Gross |
Interest Receivable |
Foreclosed Property |
Foreclosed Allowance |
Value of Assets Related to Loans Receivable |
---|---|---|---|---|---|
Direct Loan Programs |
|||||
Prior to FY 1992 Allowance for Loss method |
|||||
(1) Railroad Rehab. Improvement |
$ 30,593 |
$ 981 |
$ 31,574 | ||
Direct Loan Programs (After FY 1991) |
|||||
(1) Railroad Rehab. Improvement |
$ 333,873 |
$ 4,539 |
$ (24,382) |
$ 314,030 | |
(3) TIFIA Loan |
190,162 |
7,738 |
(9,114) |
188,786 | |
Subtotal |
524,035 |
12,277 |
(33,495) |
502,816 |
TOTAL AMOUNT OF DIRECT LOANS DISBURSED (POST-1991)
Direct Loan Programs |
FY 2005 |
FY 2004 |
---|---|---|
(1) Railroad Rehab. Improvement |
$ 85,808 |
$ 222,619 |
(3) TIFIA Loan |
102,087 |
87,541 |
Subtotal |
$ 187,895 |
$ 310,160 |
SUBSIDY EXPENSE FOR DIRECT LOANS BY PROGRAM AND COMPONENT
FY 2005 Subsidy Expense for New Direct Loans Disbursed | Interest Differential |
Defaults |
Fees & Other Collections |
Modifications / Re-Estimates |
Total |
---|---|---|---|---|---|
Direct Loan Programs |
|||||
(1) Railroad Rehab. Improvement |
$ 14,585 |
$ 14,585 | |||
(3) TIFIA Loans |
6,926 |
2,884 |
9,810 | ||
Subtotal |
$ 0 |
$ 6,926 |
$ 0 |
$ 17,469 |
$ 24,395 |
FY 2004 Subsidy Expense for New Direct Loans Disbursed | Interest Differential |
Defaults |
Fees & Other Collections |
Modifications / Re-Estimates |
Total |
---|---|---|---|---|---|
Direct Loan Programs |
|||||
(1) Railroad Rehab. Improvement |
$ (16,333) |
$ (16,333) | |||
(3) TIFIA Loans |
462 |
462 | |||
Subtotal |
$ 0 |
$ 462 |
$ 0 |
$(16,333) |
$ (15,871) |
BUDGET SUBSIDY RATES FOR DIRECT LOANS FOR THE CURRENT YEAR COHORT
FY 2005 |
Interest Differential |
Defaults |
Fees & Other Collections |
Other |
Total |
---|---|---|---|---|---|
Direct Loan Programs |
|||||
(1) Railroad Rehab. Improvement |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
(3) TIFIA Loans |
0.00% |
5.51% |
0.00% |
0.00% |
5.51% |
Subtotal |
0.00% |
5.51% |
0.00% |
0.00% |
5.51% |
SCHEDULE FOR RECONCILING SUBSIDY COST ALLOWANCE BALANCES (POST-1991 DIRECT LOANS)
Beginning Balance, Changes, and Ending Balance |
FY 2005 |
FY 2004 |
---|---|---|
Beginning Balance of the Subsidy Cost Allowance |
$ 33,496 |
$ (138,048) |
Add: Subsidy Expense for Direct Loans Disbursed during the Reporting Years by Component |
||
Fees and Other Collections |
(1,238) |
(18,333) |
Other Subsidy Costs |
1,238 | |
Total of the Above Subsidy Expense Components |
$ (1,238) |
$ (17,095) |
Adjustments |
||
Subsidy Allowance Amortization |
(15,650) |
204,972 |
Ending Balance of the Subsidy Cost Allowance Before Reestimates |
$ 16,608 |
$ 49,829 |
Add or Subtract Subsidy Reestimates by Component |
||
Interest Rate Reestimate |
140 |
(16,333) |
Technical/Default Reestimate |
17,329 |
|
Total of the Above Reestimate Components |
$ 17,469 |
$ (16,333 |
Ending Balance of the Subsidy Cost Allowance |
$ 34,077 |
$ 33,496 |
DEFAULTED GUARANTEED LOANS FROM POST-1991 GUARANTEES
Loans Receivable, Gross |
Interest Receivable |
Foreclosed Property |
Foreclosed Allowance |
Assets Related to Loans Receivable |
|
---|---|---|---|---|---|
FY 2005 |
|||||
(4) Federal Ship Financing Fund (Title XI) |
$ 87,357 |
$ 2,617 |
$ 19,004 |
$ (43,088) |
$ 65,890 |
FY 2004 |
|||||
(4) Federal Ship Financing Fund (Title XI) |
$ 431,967 |
$ 5,876 |
$ 7,000 |
$ (375,146) |
$ 69,697 |
GUARANTEED LOANS OUTSTANDING
Outstanding Principal of Guaranteed Loans, Face Value |
Amount of Outstanding Principal Guaranteed |
|
---|---|---|
(3) TIFIA Loans |
$ 0 |
$ 0 |
(4) Federal Ship Financing Fund (Title XI) |
3,107,642 |
3,107,642 |
(5) OST Minority Business Resource Center |
8,600 |
6,450 |
(6) Federal Ship (Title XI) Liquidating Fund |
13,302 |
13,302 |
Subtotal |
$ 3,129,544 |
$ 3,127,394 |
NEW GUARANTEED LOANS DISBURSED
FY 2005 |
Outstanding Principal of Guaranteed Loans, Face Value |
Amount of Outstanding Principal Guaranteed |
---|---|---|
(3) TIFIA Loans |
$ 0 |
$ 0 |
(4) Federal Ship Financing Fund (Title XI) |
11,969 |
11,969 |
(5) OST Minority Business Resource Center |
6,200 |
4,650 |
Subtotal |
$ 18,169 |
$ 16,619 |
FY 2004 |
Outstanding Principal of Guaranteed Loans, Face Value |
Amount of Outstanding Principal Guaranteed |
---|---|---|
(3) TIFIA Loans |
$ 0 |
$ 0 |
(4) Federal Ship Financing Fund (Title XI) |
176,369 |
176,369 |
(5) OST Minority Business Resource Center |
6,961 |
5,221 |
Subtotal |
$ 183,330 |
$ 181,590 |
TOTAL LIABILITIES FOR LOAN GUARANTEES (PRESENT VALUE METHOD)
FY 2005 |
FY 2004 |
|
---|---|---|
Loan Guarantee Programs |
||
(4) Federal Ship Financing Fund (Title XI) |
$ 392,870 |
$ 378,061 |
(5) OST Minority Business Resource Center |
581 |
551 |
Total |
$ 393,451 |
$ 378,612 |
SUBSIDY EXPENSE FOR LOAN GUARANTEES BY PROGRAM AND COMPONENT
Subsidy Expense for New Loan Guarantees Disbursed
FY 2005 |
Defaults, Net |
Fees & Other Collections |
Other Subsidy Costs |
Modifications / Reestimates |
Total |
---|---|---|---|---|---|
(3) TIFIA Loans |
$ 0 |
$ 0 |
$ 0 |
$ 0 |
$ 0 |
(4) Federal Ship Financing Fund (Title XI) |
(876) |
5,793 |
9,582 |
4,499 | |
(5) OST Minority Business Resource |
131 |
(136) |
(5) | ||
Subtotal |
$ (745) |
$ 5,793 |
$ 9,582 |
$ (136) |
$ 14,494 |
FY 2004 |
|||||
(3) TIFIA Loans |
$0 |
$0 |
$0 |
$0 |
$0 |
(4) Federal Ship Financing Fund (Title XI) |
3,690 |
(27,774) |
(45,097) |
(69,181) | |
(5) OST Minority Business Resource |
(181) |
166 |
(15) | ||
Subtotal |
$ 3,509 |
$ (27,774) |
$0 |
$ (44,931) |
$ (69,196) |
BUDGET SUBSIDY RATES FOR LOAN GUARANTEES FOR THE CURRENT YEAR COHORT
Interest Differential |
Defaults |
Fees & Other Collections |
Other |
Total |
|
---|---|---|---|---|---|
FY 2005 |
|||||
Loan Guarantee Programs |
|||||
(3) TIFIA Loans |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
(4) Federal Ship Financing Fund (Title XI) |
0.00% |
5.00% |
0.00% |
0.00% |
5.00% |
(5) OST Minority Business Resource |
0.00% |
2.08% |
0.00% |
0.00% |
2.08% |
Subtotal |
0.00% |
7.08% |
0.00% |
0.00% |
7.08% |
SCHEDULE FOR RECONCILING LOAN GUARANTEE LIABILITY BALANCES (POST-1991 LOAN GUARANTEES)
FY 2005 |
FY 2004 |
|
---|---|---|
Beginning Balance of the Loan Guarantee Liability |
$ 378,612 |
$ 293,276 |
Add: Subsidy Expense for Guaranteed Loans Disbursed during the Reporting Years by Component |
||
Default Costs (net of recoveries) |
(745) |
(3,509) |
Fees and Other Collections |
5,793 |
27,774 |
Other Subsidy Costs |
9,582 |
|
Total of the Above Subsidy Expense Components |
$ 14,630 |
$ 24,265 |
Adjustments |
||
Fees Received |
(6,068) |
|
Interest Supplements Paid |
(12,000) |
|
Interest Accumulation on the Liability Balance |
18,413 |
16,140 |
Ending Balance of the Loan Guarantee Liability Before Reestimates |
$ 393,587 |
$ 333,681 |
Add or Subtract Subsidy Reestimates by Component |
||
Technical/Default Reestimate |
(136) |
44,931 |
Total of the Above Reestimate Components |
(136) |
$ 44,931 |
Ending Balance of the Loan Guarantee Liability |
393,451 |
$ 378,612 |
The Federal Credit Reform Act of 1990 divides direct loans and loan guarantees into two groups: (1) Pre1992 means the direct loan obligations or loan guarantee commitments made prior to FY 1992 and the resulting direct loan obligations or loan guarantees, and (2) Post-1991 means the direct loan obligations or loan guarantee commitments made after FY 1991 and the resulting direct loans or loan guarantees.
The Act provides that, for direct loan obligations or loan guarantee commitments made after FY 1991, the present value of the subsidy costs (which arises from interest rate differentials, interest subsidies, delinquencies and defaults, fee offsets, and other cash flows) associated with direct loans and loan guarantees be recognized as a cost in the year the direct or guaranteed loan is disbursed.
Direct loans are reported net of an allowance for subsidy at present value, and loan guarantee liabilities are reported at present value. Foreclosed property is valued at the net realizable value. Loans receivable, net, or their value of assets related to direct loans, is not the same as the proceeds that they would expect to receive from selling their loans. DOT calculated the allowance for pre-1992 using the allowance for loss method.
Administrative costs could not be determined and disclosed because DOT has not fully implemented cost accounting Department-wide.
Note 8. Inventory and Related Property
Dollars in
Thousands
Cost |
Allowance for Loss |
FY 2005 Net |
FY 2004 Net |
|
---|---|---|---|---|
Inventory |
||||
Inventory Held for Current Sale |
$ 87,928 |
$ 87,928 |
$ 78,396 | |
Excess, Obsolete and Unserviceable Inventory |
18,301 |
6,339 |
11,962 |
12,962 |
Inventory Held for Repair |
414,809 |
86,148 |
328,661 |
321,511 |
Other |
13,632 |
13,632 |
13,632 | |
Total Inventory |
$ 534,670 |
$ 92,487 |
$ 442,183 |
$ 426,501 |
Operating Materials and Supplies |
||||
Items Held for Use |
$ 451,334 |
$ 21,295 |
$ 430,039 |
$ 403,634 |
Items Held for Reserve for Future Use |
66,472 |
66,472 |
69,644 | |
Excess, Obsolete and Unserviceable Items |
71,862 |
71,862 |
11,619 | |
Items Held for Repair |
4,724 |
3,779 |
945 |
2,115 |
Total Operating Materials & Supplies |
$ 594,392 |
$ 96,936 |
$ 497,456 |
$ 487,012 |
Total Inventory and Related Property |
$ 939,639 |
$ 913,513 |
All DOT inventory is in FAA and the OST Working Capital Fund. Valuation methods used include moving weighted average, standard price/specific identification, and last acquisition price.
DOT operating materials and supplies are in FAA and MARAD. Valuation methods used include historical cost, last acquisition price, standard price/specific identification, standard repair cost, weighted average, and moving weighted average. The only restriction on use is that FAA is not permitted to donate.
Note 9. General Property, Plant and Equipment
Dollars in
Thousands
Major Classes |
Service Life |
Acquisition Value |
Accumulated Depreciation |
FY 2005 Net Book Value |
FY 2004 Net Book Value |
---|---|---|---|---|---|
Land and Improvements |
$ 103,176 |
$ 294 |
$ 102,882 |
$ 97,332 | |
Buildings and Structures |
Various |
4,244,680 |
2,160,573 |
2,084,107 |
2,108,539 |
Furniture and Fixtures |
Various |
124,981 |
84,243 |
40,738 |
28,656 |
Equipment |
Various |
14,959,696 |
7,304,412 |
7,655,284 |
7,121,918 |
ADP Software |
Various |
123,933 |
96,474 |
27,459 |
51,772 |
Electronics |
6-10 years |
738 |
730 |
8 |
14 |
Assets Under Capital Lease |
Various |
125,923 |
80,732 |
45,191 |
54,116 |
Leasehold Improvements |
Various |
55,014 |
23,441 |
31,573 |
33,874 |
Aircraft |
11-20 years |
401,614 |
263,143 |
138,471 |
150,309 |
Ships and Vessels |
Over 20 years |
1,738,934 |
1,117,017 |
621,917 |
693,760 |
Small Boats |
Various |
24,888 |
24,239 |
649 |
953 |
Other Vehicles |
1-5 years |
27 |
27 |
||
Construction in Progress |
4,565,239 |
4,565,239 |
5,037,358 | ||
Property Not in Use |
7,706 |
3,006 |
4,700 |
11,335 | |
Other Miscellaneous Property |
9,373 |
2,199 |
7,174 |
5,423 | |
Total |
$ 26,485,922 |
$ 11,160,530 |
$ 15,325,392 |
$ 15,395,359 |
Depreciation is computed using the straight line method. Net book value of multi-use heritage assets is now included in general property, plant and equipment, while “physical quantity” information is included in the Heritage Assets section of Required Supplemental Stewardship Information.
Note 10. Liabilities Not Covered By Budgetary
Resources
Dollars in Thousands
FY 2005 |
FY 2004 |
|
---|---|---|
Intragovernmental |
||
Debt |
$0 |
$ 363,583 |
Other Liabilities |
477,063 |
569,782 |
Total Intragovernmental |
$ 477,063 |
$ 933,365 |
Accounts Payable |
$ 44 |
$ 44 |
Federal Employee and Veterans’ Benefits Payable |
1,007,303 |
1,018,541 |
Environmental and Disposal Liabilities |
1,003,585 |
1,135,163 |
Other Liabilities |
1,011,512 |
980,690 |
Total Liabilities Not Covered by Budgetary Resources |
$ 3,499,507 |
$ 4,067,803 |
Total Liabilities Covered by Budgetary Resources |
9,372,831 |
9,340,146 |
Total Liabilities |
$ 12,872,338 |
$ 13,407,949 |
Note 11. Debt
Dollars in Thousands
FY 2004 Ending Balance |
Net Change During Fiscal Year |
FY 2005 Ending Balance |
|
---|---|---|---|
Intragovernmental Debt |
|||
Debt to the Treasury |
$ 1,147,529 |
$ (197,876) |
$ 949,653 |
Debt to the Federal Financing Bank |
3,077 |
(194) |
2,883 |
Total Intragovernmental |
$ 1,150,606 |
$ (198,070) |
$ 952,536 |
Net Change During Fiscal Year includes new borrowing, repayments and net change in accrued payables. Debt to the Treasury and to the Federal Financing Bank is for FRA direct loans to railroads, for FHWA direct loans under the Transportation Infrastructure Finance and Innovation Act (TIFIA), for MARAD Title XI guaranteed loans, and for the FAA Aircraft Purchase Loan Guarantee Program.
Note 12. Other Liabilities
Dollars in Thousands
FY 2005 |
Non-Current |
Current |
FY 2005 Total |
---|---|---|---|
Intragovernmental |
|||
Advances and Prepayments |
$ 0 |
$ 2,689,272 |
$ 2,689,272 |
Accrued Pay and Benefits |
45,902 |
45,902 | |
Undisbursed Loans |
152,634 |
152,634 | |
FECA Billings |
118,311 |
92,178 |
210,489 |
Uncleared Disbursements and Collections |
(35,698) |
(35,698) | |
Deposit Funds |
9,094 |
9,094 | |
Other Accrued Liabilities |
9,094 |
9,094 | |
Total Intragovernmental |
$ 273,070 |
$ 3,105,494 |
$ 3,378,564 |
Public |
|||
Other Accrued Unbilled Payments |
$ 0 |
$ 81,143 |
$ 81,143 |
Accrued Pay and Benefits |
134,055 |
721,692 |
855,747 |
Legal Claims |
470 |
6,588 |
7,058 |
Deferred Credits |
27,903 |
1,766 |
29,669 |
Capital Leases |
42,597 |
8,193 |
50,790 |
Advances and Prepayments |
258,418 |
258,418 | |
Uncleared Disbursements and Collections |
(7,495) |
(7,495) | |
Deposit Funds |
(2) |
2,145 |
2,143 |
Other Custodial Liability |
231 |
8,457 |
8,688 |
Other Accrued Liabilities |
331,577 |
23,678 |
355,255 |
Total Public |
$ 536,831 |
$ 1,104,585 |
$ 1,641,416 |
FY 2004 |
Non-Current |
Current |
FY 2004 Total |
---|---|---|---|
Intragovernmental |
|||
Advances and Prepayments |
$ 2,635,418 |
$ 238,309 |
$ 2,873,727 |
Accrued Pay and Benefits |
1,243 |
40,112 |
41,355 |
Undisbursed Loans |
166,915 |
148 |
167,063 |
FECA Billings |
121,895 |
96,248 |
218,143 |
Uncleared Disbursements and Collections |
1,002 |
1,002 | |
Deposit Funds |
6,233 |
6,233 | |
Other Accrued Liabilities |
356,460 |
4,322 |
360,782 |
Total Intragovernmental |
$ 3,281,931 |
$ 386,374 |
$ 3,668,305 |
Public |
|||
Other Accrued Unbilled Payments |
$ 0 |
$ 60,705 |
$ 60,705 |
Accrued Pay and Benefits |
557,084 |
216,800 |
773,884 |
Legal Claims |
215 |
26,190 |
26,405 |
Deferred Credits |
51,518 |
51,518 | |
Capital Leases |
46,909 |
13,663 |
60,572 |
Advances and Prepayments |
1,534 |
37,105 |
38,639 |
Uncleared Disbursements and Collections |
229 |
(3,771) |
(3,542) |
Deposit Funds |
16,933 |
16,933 | |
Other Accrued Liabilities |
144,347 |
119,632 |
263,979 |
Total Public |
$ 801,836 |
$ 487,257 |
$ 1,289,093 |
Accrued pay and benefits pertain to unpaid pay and benefits, and may be either current or non-current. Agency expenses for payments made under the Federal Employees Compensation Act (FECA) are forwarded to the Department of Labor (DOL). Funding for FECA is normally appropriated to agencies in the fiscal year two years subsequent to the actual FECA billing from DOL.
Note 13. Grant Accrual
Dollars in Thousands
Grant liabilities are accrued in two categories. The first category is grant related requests for payments that had been billed to an agency as of September 30, but had not yet been paid. The second category is for the grant related costs incurred, but not yet reported (IBNR). IBNR represents an estimate of amounts due to grantees for their expenditures made through September 30, for which payment requests have not been received from grantees as of September 30.
Grant accruals, by Operating Administration, at September 20, 2005 and 2004 are summarized as follows:
FY 2005 |
FY 2004 |
|
---|---|---|
Highway Trust Fund |
$ 2,274,780 |
$ 2,195,580 |
Federal Transit Administration |
1,281,550 |
1,541,381 |
Federal Aviation Administration |
507,590 |
435,879 |
Federal Highway Administration (non-trust fund) |
17,908 |
|
Federal Railroad Administration |
4,900 |
7,600 |
Total Grant Accrual |
$ 4,086,728 |
$ 4,180,440 |
Note 14. Environmental and Disposal Liabilities
Dollars in
Thousands
FY 2005 |
FY 2004 |
|
---|---|---|
Public |
||
Environmental Cleanup Liabilities |
||
FAA Environmental Remediation |
$ 596,536 |
$ 366,762 |
FAA Environmental Cleanup and Decommissioning |
239,499 | |
MARAD Environmental Cleanup (PCB, Lead, Oil) |
407,049 |
528,90 |
Total Public |
$ 1,003,585 |
$ 1,135,163 |
Environmental cleanup generally occurs under the Resource Conservation and Recovery Act of 1976 (RCRA), the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA or Superfund), or the Toxic Substances Control Act (TSCA). Environmental remediation includes the fuel storage tank program, fuels, solvents, industrial, and chemicals, and other environmental cleanup associated with normal operations or as a result of an accident. Cost estimates for environmental and disposal liabilities are not adjusted for inflation and are subject to revision as a result of changes in technology and environmental laws and regulations.
The current law requires all non-retention ships to be disposed of by the end of FY 2006. If an extension of this requirement is not granted and/or foreign scrapping is not available, then MARAD could realize a substantial increase in this unfunded environmental liabilities.
Note 15. Contingencies, Commitments, and Other Disclosures
Contingencies
Hurricane Katrina and Rita Disaster Relief. In September 2005, Hurricanes Katrina and Rita significantly affected certain sections with the states of Louisiana, Florida, Mississippi, Texas and Alabama.
Currently DOT in conjunction with other Federal entities is assessing the estimated financial impact of the affected areas. Congress may be providing supplemental appropriations to aid in the rebuilding efforts. As of September 30, 2005 DOT obligated $290 million of which $161 million will reimbursed to the DOT from FEMA. For FY 2006, DOT has obligated $233 million of which $.126 million will be reimbursed to DOT from FEMA.
These funds cover certain transit and travel costs used in evacuating and relocating displaced persons; a Ready Reserve Fleet of ships used for temporary housing, relief and recovery; airfield and terminal repairs; restoration of FAA facilities; pipeline inspection; emergency work to restore essential traffic and minimize damage, and protect remaining facilities and; repair and rebuild railroad infrastructure in a safe manner.
Legal Claims. As of September 30, 2005 and 2004, FAA's contingent liabilities for asserted and pending legal claims reasonably possible of loss were estimated at $65.1 million and $76.7 million, respectively. FAA does not have material amounts of known unasserted claims.
Grant Programs. FHWA pre-authorizes states to establish construction budgets without having received appropriations from Congress for such projects. FHWA does not guarantee the ultimate funding to the states for these “Advance Construction” projects and, accordingly, does not obligate any funds for these projects. When funding becomes available to FHWA, the States can then apply for reimbursement of costs that they have incurred on such project, at which time FHWA can accept or reject such request. For the fiscal year ended September 30, 2005 and 2004, FHWA has pre-authorized $40 billion and $36 billion, respectively, under these arrangements; however, no liability is reflected in the Highway Trust Fund financial statements at September 30, 2005 and 2004, for these arrangements.
FTA executes Full Funding Grant Agreements (FFGAs) under its Capital Investment program (New Starts) authorizing transit authorities to establish project budgets and incur costs with their own funds in advance of annual appropriations by Congress. As of June 30, 2005, approximately $2.183 billion in Section 5309 New Starts funds has been committed under FFGAs, but not yet appropriated by Congress. However, no liability is reflected in the DOT financial statements at June 30, 2005, for these agreements.
Contract Options and Negotiations. As of September 30, 2005 and 2004, FAA had contract options of $10 billion and $10.9 billion, respectively. These contract options give FAA the unilateral right to purchase additional equipment or services or to extend the contract terms. Exercising this right would require the obligation of funds in future years.
Aviation Insurance Program. FAA is authorized to issue hull and liability insurance under the Aviation Insurance Program for air carrier operations for which commercial insurance is not available on reasonable terms and when continuation of U.S. flag commercial air service is necessary in the interest of air commerce, National security, and the U.S. foreign policy. FAA may issue (1) non-premium insurance, and (2) premium insurance for which a risk-based premium is charged to the air carrier, to the extent practical.
FAA maintains standby non-premium war-risk insurance policies for 37 air carriers having approximately 1,433 aircraft available for Defense or State Department charter operations.
On September 22, 2001, the Air Transportation Safety and System Stabilization Act (Public Law 107-42) expanded premium insurance program authority to permit insurance of domestic operations. Under this program, FAA initially provided third party liability war-risk insurance to U.S. carriers whose coverage was cancelled following the terrorist attacks of September 11, 2001. Public Law 108-11 (and subsequent amendments) required FAA to extend policies in effect on July 19, 2002, until August 31, 2005 and gave the Secretary of Transportation discretion to further extend coverage through December 31, 2005. It also mandated provision of hull loss and passenger and third party war risk liability insurance for those policies. There are 77 FAA premium war-risk policies. Insured air carrier per occurrence limits for combined hull and liability coverage range from $100 million to $4 billion.
Current war risk coverage is intended as a temporary measure to provide insurance to qualifying carriers while allowing time for the commercial insurance market to stabilize. Premiums under this program are established by FAA and are based on the value of policy coverage limits and aircraft activity. However, airlines’ total charge for coverage is subject to a cap mandated by Congress. During FY 2005 and FY 2004, FAA recognized insurance premium revenue of $157.5 million and $145.6 million, respectively. Premiums are recognized as revenue on a straight-line basis over the period of coverage. Premium revenue is reported on the FAA’s Consolidated Statement of Net Cost, under “Regional and Center Operations and Other Programs.”
Typically, the maximum liability for both hull loss and liability, per aircraft, is $1.75 billion. No claims for losses were pending as of September 30, 2005, or 2004. In the past, FAA has insured a small number of air carrier operations and established a maximum liability for losing one aircraft. Since the inception of the Aviation Insurance Program dating back to 1951, only four claims, all involving minor dollar amounts, have been paid. Because of the unpredictable nature of war risk and the absence of historical claims experience on which to base an estimate, no reserve for insurance losses has been funded.
Environmental. FAA is a party to two major environmental remediation projects in which the extent of the liability is unknown. A study is in process to determine the magnitude and scope of the remediation required at the two sites. Of the total environmental liability reported as of September 30, 2005, and 2004, the amount related to these two sites is $50.3 million and $49.3 million, respectively. This liability includes FAA's share of the known remediation cost and the cost to complete the study.
Commitments
Grant Programs. FAA’s Airport Improvement Program provides grants for the planning and development of public-use airports that are included in the National Plan of Integrated Airport Systems. Eligible projects generally include improvements related to enhancing airport safety, capacity, security and environmental concerns. FAA's share of eligible costs for large and medium primary hub airports is 75% with the exception of noise program implementation, which is 80%. For remaining airports (small primary, relievers, and general aviation airports), FAA's share of eligible costs is 90%.
FAA has authority under 49 U.S.C. 47110(e) to issue letters of intent to enter into Airport Improvement Program grant agreements. FAA records an obligation when a grant is awarded. Through September 30, 2005, FAA issued letters of intent covering FY 1988 through FY 2015 totaling $4.7 billion. As of September 30, 2005, FAA had obligated $3.6 billion of this total amount leaving $1.2 billion unobligated.
Through September 30, 2004, FAA issued letters of intent covering FY 1988 through FY 2014 totaling $4.7 billion. As of September 30, 2004, FAA had obligated $3.3 billion of this total amount, leaving $1.4 billion unobligated.
Other Disclosures
Overflight User Fees. FAA aviation overflight user fees were the subject of litigation for several years. As a result, FAA suspended these billings in April 2003 and had no collections during fiscal year 2004. The litigation ended in the latter part of FY 2004, and FAA resumed billing in FY 2005. Aviation overflight user fee revenue was $109.7 million in FY 2005. Also, in FY 2005, the FAA Adminstrator appointed an Aviation Rulemaking Committee. The Committee is studying FAA's fee-setting procedures with a view to making recommendations in FY 2006 as to how procedures might be improved and the fees updated. Depending on the outcome of the Committee's deliberations and the Administrator's assessment of its recommendations, the fee structure may change accordingly.
Note 16. Net Cost By Program
Dollars in Thousands
FY 2005 |
FY 2004 |
|
---|---|---|
PROGRAM COSTS |
||
SURFACE |
||
Highway Surface Transportation |
$ 7,496,099 |
$ 7,256,287 |
Mass Transit |
8,007,313 |
8,195,431 |
National Highway System |
7,149,319 |
7,116,070 |
Interstate Maintenance |
4,109,000 |
3,933,214 |
Bridge Program |
3,986,213 |
3,498,203 |
Highway Minimum Guarantee |
2,302,346 |
2,516,100 |
Other Highway Trust Fund Programs |
1,523,654 |
1,572,855 |
Other Highway Programs |
399,239 |
217,537 |
High Priority Projects |
1,102,491 |
1,183,664 |
Federal Railroad Administration Grants |
1,267,104 |
1,187,760 |
Congestion Mitigation and Air Quality |
810,589 |
937,166 |
Highway Safety Programs |
463,792 |
780,926 |
Appalachian Development Highway |
291,269 |
261,943 |
DOT Allocated Highway Programs |
700,362 |
23,144 |
Department of Interior Allocated Highway Programs |
98,252 |
401,112 |
Federal Lands Highways |
314,338 |
221,599 |
Federal Motor Carrier Safety |
381,217 |
396,829 |
Highway Research and Development |
566,411 |
816,813 |
Pipeline and Hazardous Materials Safety Administration |
121,542 |
120,869 |
Research and Innovative Technology Administration |
8,424 |
35,810 |
Rail Safety and Operations |
139,509 |
117,490 |
Highway Planning |
140,420 |
142,232 |
Highway Emergency Relief |
800,782 |
177,015 |
Other Rail Programs |
10,816 |
31,014 |
Rail Research and Development |
46,112 |
24,978 |
Next Generation High Speed Rail |
19,357 |
36,213 |
Alaska Railroad |
31,831 |
22,599 |
Surface Transportation Board |
21,609 |
20,478 |
Alameda Corridor |
41,728 | |
Total Surface Program Costs |
$ 42,309,410 |
$ 41,287,079 |
AIR |
||
Air Traffic Services |
$ 8,931,418 |
$ 8,079,011 |
Airports |
3,711,927 |
2,977,068 |
Aviation Security |
1,075,118 |
|
Regulation and Certification |
939,728 | |
Other Federal Aviation Administration Programs |
296,560 |
185,660 |
Commercial Space |
14,073 |
12,527 |
Total Air Program Costs |
$ 14,029,096 |
$ 12,193,994 |
MARITIME |
||
Maritime Operations and Training |
$ 54,872 |
$ (7,845) |
Maritime Guaranteed Loan |
(14,403) |
10,793 |
Maritime Security Program |
98,484 |
98,580 |
Maritime Ocean Freight Differential Program |
105,503 |
147,558 |
Maritime Vessel Operations Revolving Fun |
26,788 |
(18,066) |
Maritime Operating Differential Subsidy |
517 |
194 |
Maritime Operating Ship Disposal |
14,332 |
|
Other Maritime Programs |
(7,179) |
5,947 |
Total Maritime Program Costs |
$ 278,914 |
$ 237,161 |
CROSS-CUTTING |
||
Office of the Secretary Working Capital Fund |
$ 3,999 |
$ (2,274) |
Volpe National Transportation Systems Center |
4,729 |
3,020 |
Total Cross-Cutting Program Costs |
$ 8,728 |
$ 746 |
In order to provide more accurate reporting, FHWA changed the manner in which it allocated costs to the Highway Trust Fund programs in FY 2004. Such changes involved the method of categorizing projects within programs and a revision to the allocation of the grant accrual to each program. The “Other Highway Trust Fund Programs” category is comprised of small miscellaneous projects.
Note 17. Gross Cost and Earned Revenue By Budget Functional
Classification
Dollars in Thousands
FY 2005 |
|||
---|---|---|---|
Gross Cost |
Earned Revenue |
Net Cost | |
Gross Cost and Earned Revenue by Budget Functional Classification |
|||
054 Defense-Related Activities |
$ 99,048 |
$ 0 |
$ 99,048 |
401 Ground Transportation |
42,345,414 |
165,970 |
42,179,444 |
402 Air Transportation |
14,618,959 |
589,863 |
14,029,096 |
403 Water Transportation |
636,167 |
456,301 |
179,866 |
407 Other Transportation |
778,127 |
576,559 |
201,568 |
808 Other General Government |
195,199 |
21,327 |
173,872 |
Total |
$ 58,672,914 |
$ 1,810,020 |
$ 56,862,894 |
Intragovernmental Gross Cost and Earned Revenue by Budget Functional Classification |
|||
401 Ground Transportation |
$ 581,361 |
$ 10,041 |
$ 571,320 |
402 Air Transportation |
1,999,237 |
133,073 |
1,866,164 |
403 Water Transportation |
150,505 |
448,796 |
(298,291) |
407 Other Transportation |
102,500 |
587,398 |
(484,898) |
Total |
$ 2,833,603 |
$ 1,179,308 |
$ 1,654,295 |
FY 2004 |
|||
Gross Cost and Earned Revenue by Budget Functional Classification |
|||
054 Defense-Related Activities |
$ 99,119 |
$ 0 |
$ 99,119 |
401 Ground Transportation |
41,479,699 |
313,489 |
41,166,210 |
402 Air Transportation |
12,506,942 |
312,948 |
12,193,994 |
403 Water Transportation |
399,930 |
261,888 |
138,042 |
407 Other Transportation |
857,669 |
677,027 |
180,642 |
808 Other General Government |
283,540 |
7,334 |
276,206 |
Total |
$ 55,626,899 |
$ 1,572,686 |
$ 54,054,213 |
Intragovernmental Gross Cost and Earned Revenue by Budget Functional Classification |
|||
401 Ground Transportation |
$ 553,081 |
$ (1,075) |
$ 554,156 |
402 Air Transportation |
2,380,081 |
84,246 |
2,295,835 |
403 Water Transportation |
22,047 |
260,710 |
(238,663) |
407 Other Transportation |
99,526 |
670,378 |
(570,852) |
808 Other General Government |
110,076 |
7,334 |
102,742 |
Total |
$ 3,164,811 |
$ 1,021,593 |
$ 2,143,218 |
Note 18. Statement of Changes in Net Position
Dollars in
Thousands
Prior Period Adjustments
Prior Period Adjustments for FY 2005 and FY 2004 are primarily due to MARAD for correction of an error for the Ocean Freight Differential appropriation.
Non-Exchange Revenue
FY 2005 |
FY 2004 |
|
---|---|---|
Highway Trust Fund |
||
Receipts |
||
Excise Taxes and Other Non-Exchange Revenue (transferred from the general fund) |
||
Gasoline |
$ 23,420,989 |
$ 18,244,158 |
Diesel and Special Motor Fuels |
9,551,359 |
8,935,465 |
Trucks |
4,549,657 |
3,237,017 |
Gasohol |
1,797,493 |
5,716,127 |
Fines and Penalties |
14,070 |
16,457 |
IMPT Revenue |
25 | |
Total Taxes |
$ 39,333,568 |
$ 36,149,249 |
Less: Transfers to Land and Water Conservation Fund |
||
Transfers to General Fund |
(1,000) |
(1,000) |
Transfers to Aquatic Reserve |
(113,994) |
(111,350) |
Gross Taxes |
(320,127) |
(311,639) |
$ 38,898,447 |
$ 35,725,260 |
|
Less: Refunds of Taxes (reimbursed to general fund) |
||
Gasoline |
(308,508) |
(305,286) |
Gasohol |
(17,063) |
(27,751) |
Diesel |
(639,083) |
(625,821) |
Special Motor Fuel |
(4,454) |
(1,342) |
Gas to make Gasohol |
(11,500) |
(22,865) |
Diesel Fuel Bus Use |
(26,246) |
(31,423) |
Total Refunds of Taxes |
$ 37,891,593 |
$ 34,710,772 |
Total Excise Taxes |
$ 37,891,593 |
$ 34,710,772 |
Other Non-Exchange Revenue |
10,035 |
13,556 |
Net Non-Exchange Revenue |
$ 37,901,628 |
$ 34,724,328 |
FY 2005 |
FY 2004 |
|
---|---|---|
Federal Aviation Administration |
||
Taxes and Other Non-Exchange Revenue |
||
Passenger Ticket |
$ 7,007,134 |
$ 6,554,599 |
International Departure |
1,922,368 |
1,455,529 |
Fuel (Air) |
926,860 |
774,150 |
Waybill |
460,563 |
498,871 |
Investment Income |
439,793 |
446,956 |
Gasoline |
43,934 |
|
Tax Refunds and Credits |
(100,628) |
(55,596) |
Net Non-Exchange Revenue |
$ 10,700,024 |
$ 9,674,509 |
Other Miscellaneous Net Non-Exchange Revenue |
1,179 |
(1,462) |
Total Non-Exchange Revenue |
$ 48,602,831 |
$ 44,397,375 |
The financial statements of DOT for the Highway Trust Fund and the Airport and Airway Trust Fund reflect actual tax collections for the six months ended March 31, 2005, plus an estimate of tax collections expected for quarters ended June 30, 2005 and September 30, 2005. Actual tax collection data for the two quarters ended June 30, 2005 and September 30, 2005 will not be available from the IRS until December 2005 and March 2006, respectively.
Motor Vehicle Tax Evasion (MTFE) Issues
Federal Highway Administration is addressing actions to be taken about the possible effects of anticipated future demands, events and trends related to MFTE, generally accepted to cost the trust fund approximately $1 billion or more annually. MFTE-related monies have been spent by the Internal Revenue Service (IRS) to improve MFTE enforcement and determine the necessary program management changes needed. Working with the IRS, FHWA will develop a written oversight plan to identify future actions to oversee the development and implementation of highway use tax evasion activity. During fiscal year 2005, expenditures for the Highway Trust Fund (HTF) exceeded revenues by approximately $6.4 billion. The HTF equity (Corpus) available as of September 30, 2005 is $10.8 billion. However, Congress has authorized appropriations in excess of current available trust fund assets that amounts to $.9 billion after considering amounts already transferred to the HTF agencies. FHWA is continuing to analyze the impact that SAFETEA-LU will have on the trust fund.
Note 19. Statement of Budgetary Resources
Dollars in
Thousands
FY 2005 |
FY 2004 (Restated) |
|
---|---|---|
The amount of direct and reimbursable obligations incurred against amounts apportioned under Category A, B, and exempt from apportionment as of end of fiscal year: |
69,765,896 |
$ 67,244,353 |
Available Contract Authority as of end of fiscal year |
38,783,649 |
$ 31,532,182 |
Available Borrowing Authority as of end of fiscal year |
$ 20,607 |
$ 0 |
Adjustments during fiscal year to Beginning Balance of Budgetary Resources |
||
Rescissions |
$ (9,068) |
$ (496) |
Prior Year Recoveries |
519,964 |
92,160 |
Temporarily Not Available |
(60,947) |
(199) |
Cancelled Authority |
(5,190) |
1,965 |
Permanently Not Available |
(762,764) |
276,691 |
Other Adjustments |
43,401 |
(39,040) |
Total Adjustments to Budgetary Resource |
$ (274,604) |
$ 331,081 |
Significant adjustments were needed to the amounts previously reported on the Statement of Budgetary Resources at September 30, 2004 for the Federal Highway Administration’s (FHWA) Highway Trust Fund (HTF). The error was discovered by the management after the publication of its financial statements in November, 2004. The adjustments principally related to a SF 132 Apportionment and Reapportionment Schedule received in October 2004 relating to FY 2004 activity. Accordingly, adjustments have been made to correct these errors resulting in a net increase in “Total Budgetary Resources” and “Total Status of Budgetary Resources” of $2.97 billion. In addition an error was discovered in unobligated balances and budget authority temporarily not available pursuant to public law which had been brought forward on FHWA’s Apportionment and Reapportionment Schedule since at least FY 2002. This correction resulted in a net decrease to “Total Budgetary Resources” and “Total Status of Budgetary Resources” of $2.54 billion at September 30, 2004. A new SF 132 has been issued, including corrected balances to reflect the proper amount of carried forward budget authority, and approved by OMB.
Significant adjustments were also needed to the amounts previously reported on the Statement of Budgetary Resources at September 30, 2004 for the FHWA’s Non-Budgetary Financing Accounts for the Transportation Infrastructure Finance and Innovation Act (TIFIA) Loan Program. The error was discovered by management after the publication of its financial statements in November, 2004. The adjustments principally related to a journal entry that obligated balances and reduced unapportioned authority and borrowing authority as of September 30, 2004. This correction resulted in a net increase to “Total Budgetary Resources” and “Total Status of Budgetary Resources” of $.2 billion
The next table on the following page details specific line items being restated on the Combined Statement of Budgetary Resources.
2004 Originally Stated |
Effect of Restatement |
2004 As Restated |
|
---|---|---|---|
Budgetary Resources (Selected Components) |
|||
Borrowing Authority |
$ 1,923,602 |
$ 172,661 |
$ 2,096,263 |
Contract Authority |
43,489,033 |
2,742,508 |
46,231,541 |
Net Transfers |
(216,487) |
241,722 |
25,235 |
Unobligated balance – beginning of period |
38,336,603 |
(2,543,098) |
35,793,505 |
Permanently Not Available |
(45,323,853) |
(15,028) |
(45,338,881) |
Status of Budgetary Resources (Selected Components) |
|||
Obligations Incurred – Direct |
$ 64,756,645 |
$ (965,192) |
$ 63,791,453 |
Unobligated balance available |
14,840,959 |
241,722 |
15,082,681 |
Unobligated balance not available |
23,391,134 |
1,322,235 |
24,713,369 |
Existence, Purpose, and Availability of Permanent Indefinite Appropriations
FAA has permanent indefinite appropriations for the Facilities and Equipment, Grants-in-Aid, and Research, Development and Engineering appropriations in order to fully fund special projects that were on-going and spanned several years.
Additional Disclosures
Unobligated balances of budgetary resources for unexpired accounts are available in subsequent year until expiration, upon receipt of an apportionment from OMB. Unobligated balances of expired accounts are not available.
The Federal-Aid Highway Act of 1956, as amended by subsequent legislation, established the Highway Trust Fund (HTF) as a mechanism for financing the accelerated highway program. It is a user-supported fund, with the revenues of the HTF identified for financing highways, and the taxes dedicated to the HTF paid by the users of highways. The HTF Corpus is a utility account that receives no budgetary resources. Excise and user taxes are collected by the Treasury and deposited to the HTF Corpus. Deposits not needed immediately for payments are invested by the Treasury's Bureau of Public Debt (BPD) in non-interest bearing public debt securities. As funds are needed for payments, HTF Corpus investments are liquidated and funds are transferred to FHWA for payment of obligations. Given the nature of the HTF Corpus activity, the budgetary resources relating to "HTF Corpus" account is not reflected in the DOT Statement of Budgetary Resources (SBR) at September 30, 2004; however, such budgetary resources are reflected in the "Budget of the United States Government".
There are other differences between information required by SFFAS No. 7 and the amounts in the amounts described as actual "actual" FY 2004 "Budget of the United States Government" aggregating approximately $1 billion for which management is researching with Treasury. Adjustments were posted to the unobligated balance carried forward at the beginning of FY 2004 as part of the restatement of the FY 2004 Budgetary SBR. This adjustment resulted in differences of $2.5 billion to the unobligated balance at the beginning of period and $2.3 billion to the unobligated balances end of period that were less than what was reported in the 2004 actual column of the FY 2006 Budget of the United States Government. In addition, material differences exists between the fiscal year 2004 Statement of Budgetary Resources and the fiscal year 2004 President's Budget "Actual" column for borrowing authority, unobligated balances not available, obligated balances end of period and outlays of approximately $ 1.2 billion, $ 1.3 billion and $ .2 billion, respectively.
Certain errors related to the preparation of FACTS II reporting for the period ending September 30, 2004 resulted in erroneous reporting of balances in the FY 2004 actual column of the President's Budget that have resulted in material differences from the DOT consolidated financial statements. The reporting errors were confined to the FACTS II reporting and did not result in any material adjustments to the FY 2005 unobligated balance carried forward line on the FY 2005 SBR with the exception of amounts related to the restatement of the 2004 SBR as described in the above table.
For FY 2006, the enacted budget of the United States has not been finalized. The President's Budget of the United States for FY 2007 will not be published until February 2006, therefore DOT is unable to confirm if differences exist between the information required by SFFAS No. 7 and the amounts described as "actual" for FY 2005 in the FY 2007 Budget of the United States. The information will be published on OMB's website located at www.whitehouse.gov/omb.
Note 20. Incidental Custodial Collections
Dollars in
Thousands
FY 2005 |
FY 2004 |
|
---|---|---|
Revenue Activity |
||
Sources of Cash Collections |
||
Miscellaneous Receipts |
$ 20,758 |
$ 19,157 |
Fines, Penalties, and Forfeitures |
11,022 | |
Total Cash Collections |
$ 20,758 |
$ 30,179 |
Total Custodial Revenue |
$ 20,758 |
$ 30,179 |
Disposition of Collections |
||
Transferred to Treasury (General Fund) |
$ 20,758 |
$ 30,179 |
Net Custodial Revenue Activity |
$ 0 |
$ 0 |
Note 21. Saint Lawrence Seaway Development
Corporation
Dollars in Thousands
FY 2005 |
FY 2004 |
|
---|---|---|
Condensed Information: |
||
Cash and Short-Term Time Deposits |
$ 15,594 |
$ 14,084 |
Long-Term Time Deposits |
882 |
1,210 |
Accounts Receivable |
79 |
82 |
Inventories |
249 |
246 |
Property, Plant and Equipment |
76,835 |
78,329 |
Deferred Charges |
2,716 |
2,234 |
Other Assets |
602 |
538 |
TOTAL ASSETS |
$ 96,957 |
$ 96,723 |
Current Liabilities |
$ 2,820 |
$ 2,428 |
Actuarial Liabilities |
2,716 |
2,234 |
TOTAL LIABILITIES |
$ 5,536 |
$ 4,662 |
Invested Capital |
$ 91,818 |
$ 93,313 |
Cumulative Results of Operations |
(397) |
(1,252) |
TOTAL NET POSITION |
$ 91,421 |
$ 92,061 |
TOTAL LIABILITIES AND NET POSITION |
$ 96,957 |
$ 96,723 |