FINANCIAL STATEMENTS
A Message From the Chief Financial Officer
I am pleased to present the U.S. Equal Employment Opportunity Commission's financial statements for fiscal year 2008. Our financial statements are an integral component of our Performance and Accountability Report (PAR). The Accountability of Tax Dollars Act of 2002 extends to the agency a requirement to prepare and submit audited financial statements. The President's Management Agenda, Improved Financial Performance component among other standards, requires us to obtain and sustain clean audit opinions on our financial statements. The Office of Management and Budget (OMB) issued Circular A-136, Financial Reporting Requirements, on June 3, 2008, which further consolidated and refined reporting requirements for the PAR submission. In addition, the OMB Memorandum M-08-25, Guidance for Completing FY 2008 Financial and Performance Reports, on August 29, 2008, establishes the reporting structure and due dates for the required reports.
Our fiscal year 2008 financial statements received an unqualified opinion through the hard work of the dedicated financial and administrative staff in the agency. This is the fifth consecutive year that the EEOC has received an unqualified opinion and represents our continuing successful efforts to improve the financial management of the agency. Two years ago the Department of the Interior’s National Business Center won a competition to replace the existing financial software with CGI’s Momentum® software package. The conversion and implementation were completed on October 9, 2007, for fiscal year 2008 operations. The implementation was on-time and within budget.
In support of the Budget and Performance Integration component of the President's Management Agenda, we completed the Performance Accountability Rating Tool (PART) assessment process working with the Office of Management and Budget. The program was rated “Results Not Demonstrated.” The agency is working to improve those areas that need management attention. The agency undertook a review and made adjustments to the six year Strategic Plan covering fiscal years 2007 through 2012.
In support of the Competitive Sourcing component of the President’s Management Agenda, we completed an OMB Circular A-76 study for the file disclosure function including back room processing of Freedom of Information Act (FOIA) and Section 83 Compliance Manual requests. In October 2007, the Most Efficient Organization (MEO) was announced as the winning vendor in the competition. The MEO implementation plan covers fiscal years 2008 through 2010 because of the budget resources required for hiring new employees with different skill sets and infusing some new technology.
For fiscal year 2008, the agency received a $329.3 million budget. We completed the fiscal year within budget with improved financial management and some additional focus on cost controls and cost accounting. Compensation and benefit costs continue to consume a substantial portion of the budget. Some additional progress has been made to bring rising office space rent costs under control by leasing less office space consistent with the number of employees onboard and approved vacancies. However, rent costs decreased to 8% of our total budget. With 8% of the budget dedicated to the State and local program, only 15% of the budget is available for technology, programs, travel, and other general expenses.
As reported in the past, I have identified several critical issues for the agency to focus on to continue to improve its long-term financial health. An update on each item is provided on the following page.
- Execute a disciplined analysis of future workforce and infrastructure requirements. Unfortunately for several years, the Agency has been unable to slow the growth of the current and future cost of compensation and benefits for current employees, which are on a path to increase to over 74% of the EEOC's budget. These costs include salary, health and life insurance, agency contributions for retirement plans, social security, Medicare, worker's compensation, unemployment insurance, reasonable accommodations, and transit subsidies. The continuing inability of the agency to implement any form of position management means that it will be very difficult to substantially change the cost of the compensation and benefits in future years.
Working with the General Services Administration, the agency has agreed to relocate the Headquarters office to 131 M Street, NE in Washington, D.C. in the first quarter of fiscal year 2009. A ten year office lease was signed May 23, 2007. The current lease is about 25% of the rent budget. The lease at the new location ensures the agency will not pay more than the current annual lease cost over the lease period.
The agency contracted for an independent top-down study of the information technology infrastructure and staffing, with a report finalized in September 2006. The report called for substantial changes in the governance, organization, use of contracts, server and network operations, desktop management, and the skill mix of staff in order to more effectively spend the $21 million annual budget for the information technology function. The agency is pursuing competitive IT services for managed hosting, managed network and managed desktop in an effort to better focus current government IT employees on strategic, budget, and acquisition planning, system security and end user needs.
- Recognize and manage competing budget priorities. We have kept spending controls in place for discretionary travel, training and other miscellaneous line items. Non-payroll costs continue to increase for homeland security, rent, facility services, and Government-wide programs such as financial management services with a shared service provider whose costs are increasing up to 15% per year. The agency has undertaken discussions with the Office of Management and Budget, the General Services Administration and the Department of the Interior’s National Business Center to determine the underlying causes of the significant cost increases. There is clearly a need for improved strategic sourcing for software licensing and warranties on commercial off-the-shelf software by leveraging the consolidated requirements and resources under the management control of the National Business Center as a Shared Services Provider.
- Formulate a long-term performance budget strategy. The agency continues to look into improved information approaches for annual budget justifications because of the workload by activity and the inventory of cases. More attention is needed on how we communicate our various workload metrics. An adjusted Strategic Plan is in effect and may help focus how the agency will support future requests for budget resources.
In fiscal year 2009, guided by our modified Strategic Plan, we will continue its focus on accountability, financial transparency, and results through improved budget planning, performance metrics and financial management.
Jeffrey A. Smith, CPA, CGFM
Chief Financial Officer
U.S. Equal Employment Opportunity Commission
November 17, 2008
November 14, 2008
MEMORANDUM
| TO: | Naomi C. Earp Chair |
|
| FROM: |  Aletha L. BrownInspector General |
|
| SUBJECT: | Audit of the Equal Employment Opportunity Commission’s Fiscal Year 2008 and 2007 Financial Statements (OIG Report No. 2008-05-FIN) | |
The Office of Inspector General (OIG) contracted with the independent certified public accounting firm of Cotton and Company LLP to audit the financial statements of the U.S. Equal Employment Opportunity Commission (EEOC) for fiscal years 2008 and 2007. The contract required that the audit be done in accordance with U.S. generally accepted government auditing standards; Office of Management and Budget’s Bulletin 07-04, Audit Requirements for Federal Financial Statements, and the Government Accounting Office/President’s Council on Integrity and Efficiency’s Financial Audit Manual.
Cotton and Company LLP issued an unqualified opinion on EEOC’s FY 2008 and 2007 financial statements. In its Report on Internal Control, Cotton and Company LLP noted two areas involving internal control and its operation that were considered to be significant deficiencies. These included time and attendance controls and controls over revenue and receivables. In its Report on Compliance, Cotton and Co. LLP noted no instances of non compliance with certain laws and regulations applicable to the agency.
In connection with the contract, OIG reviewed Cotton and Company LLP’s report and related documentation and inquired of its representatives. Our review, as differentiated from an audit in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express, and we do not express, opinions on EEOC’s financial statements or conclusions about the effectiveness of internal controls or on whether EEOC’s financial management systems substantially complied with FFMIA; or conclusions on compliance with laws and regulations. Cotton and Company LLP is responsible for the attached auditor’s report dated November 7, 2008 and the conclusions expressed in the report. However, OIG’s review disclosed no instances where Cotton and Company LLP did not comply, in all material respects, with generally accepted government auditing standards.
EEOC management was given the opportunity to review the draft report and to provide comments. The Office of the Chief Financial Officer, the Office of Legal Counsel and the Office of Information Technology indicated that that had no comments. The Office of Human Resources and the Office of Field Programs provided comments and they are included with the report as an attachment (Appendix A).
cc: Anthony Kaminski
Jeffrey A. Smith
Raj Mohan
Nicholas Inzeo
John Schmelzer
Anna Middlebrook
Joann Riggs
Kimberly Hancher
Reed Russell
APPENDIX A
November 13, 2008
MEMORANDUM
| TO | : | Aletha L. Brown Inspector General |
| FROM | : | Joann Riggs, Acting Chief Human Capital Officer |
| SUBJECT | : | Response to Draft Audit Reports |
This is in response to the draft audit reports from Cotton & Company dated November 11, 2008. By way of this memorandum our response is as follows:
Original Entry in the DRAFT letter:
Time and Attendance Reporting - Recommendation
We recommend that the EEOC Office of Human Resources (OHR) review and refine controls in place over time-and-attendance reporting to ensure that all employees report accurate and complete information to timekeepers. Additionally, we recommend that OHR implement a policy requiring timesheets with incorrect or incomplete information to be returned to employees for correction before certification of time-and –attendance information in EEOC’s online timekeeping system.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Response to Recommendation:
In early October 2008, the update for the FY 09 Time and Attendance Guidance was produced and placed on EEOC’s internal website for use. The manual dictates that “Timekeepers will review time and attendance documentation to determine that they are complete and accurate. If any documentation is missing or if the Bi-weekly Worksheet is coded inaccurately, the Timekeeper must return the form to the employee for correction.” Also, OHR sent an email through our FPPS GroupWise Mailbox; a reminder that this has been an issue in past audit results and advises them to review those documents that may be requested of them. With the implementation of NBC’s QuickTime or some other state-of-the-art time and attendance system in FY 09, there will be a significant decrease with the inaccurate reporting of information by both the employee and the timekeeper.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Original Entry in the DRAFT letter:
Appendix A
Payment to a Separated Employee – Recommendation
We recommend that OHR review and refine controls in place over time-and-attendance reporting to ensure that information is submitted to OHR and processed in a timely manner. Additionally, we recommend that OHR implement training procedures to ensure that timekeepers and approving officials are aware of their responsibilities and that information entered into FPPS is accurate.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Response to Recommendation:
In May 2008 an update to the EEOC Administrative Manual included actions the employee, supervisor and authorizing official are to take when an employee separates from the EEOC. We are continuing to review the procedures in place and refine the standard of operating procedures pertaining to the timeliness of processing personnel actions. During FY09 we will finalize our draft audit plan for payroll processing. In 2006 training was provided to all timekeepers, certifiers and releasers. Since then, there has been ongoing communication with regards to submitting time and attendance in the proper manner. There will be a continuing effort to provide additional training using current automation for field offices and onsite training for Headquarters’ timekeepers and certifiers. OHR conducts on average 5 to 6 HR Management Reviews which we will include, contingent on funds, additional time and/or resources to include an audit of time and attendance.
If you have any questions, please feel free to contact Arlethia Monroe of my staff by calling (202) 663-4340.
APPENDIX A
>>> NICHOLAS INZEO 11/13/2008 8:55 PM >>>
I have only one short comment:
The Office of Field Programs, within which the Revolving Fund Division is located, is committed to working with the Office of the Chief Financial Officer to ensure that the revenue transactions are properly recorded and revenue reconciliations are appropriately conducted.
Inspector General
Equal Employment Opportunity Commission
Independent Auditor’s Report
We have audited the Balance Sheets of the U.S. Equal Employment Opportunity Commission (EEOC) as of September 30, 2008, and 2007, and the related Statements of Net Cost, Changes in Net Position, and Budgetary Resources for the years then ended. These financial statements are the responsibility of EEOC management. Our responsibility is to express an opinion on the financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America; standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin 07-04, Audit Requirements for Federal Financial Statements. These standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting amounts and disclosures in the financial statements. An audit also includes assessing accounting principles used and significant estimates made by management, as well as evaluating overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of EEOC as of September 30, 2008, and 2007, and its net costs, changes in net position, and budgetary resources for the years then ended in conformity with accounting principles generally accepted in the United States of America.
Management’s Discussion and Analysis (MD&A) and other accompanying information are not required as part of EEOC’s basic financial statements. For MD&A, which is required by OMB Circular A-136, Financial Reporting Requirements, and the Federal Accounting Standards Advisory Board’s Statement of Federal Financial Accounting Standards No. 15, Management’s Discussion and Analysis, we made certain inquiries of management and compared the information for consistency with EEOC’s audited financial statements and against other knowledge we obtained during our audits. For other accompanying information, we compared the information with the financial statements. On the basis of this limited work, we found no material inconsistencies with the financial statements, U.S. generally accepted accounting principles, or OMB guidance. We did not audit the MD&A or other accompanying information and therefore express no opinion on them.
In accordance with Government Auditing Standards, we have also issued separate reports dated November 7, 2008, on our consideration of EEOC’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. The purpose of those reports is to describe the scope of our testing of internal control over financial reporting and compliance and results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing results of our audits.
Cotton & Company LLP
Colette Y. Wilson, CPA
Partner
November 7, 2008
Alexandria, Virginia
Inspector General
Equal Employment Opportunity Commission
Independent Auditor’s Report on Internal Control
We have audited the Balance Sheets of the U.S. Equal Employment Opportunity Commission (EEOC) as of September 30, 2008, and 2007, and the related Statements of Net Cost, Changes in Net Position, and Budgetary Resources for the years then ended. We have issued our report thereon dated November 7, 2008. We conducted our audits in accordance with auditing standards generally accepted in the United States of America; standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin 07-04, Audit Requirements for Federal Financial Statements.
In planning and performing our audits, we considered EEOC’s internal control over financial reporting as a basis for designing audit procedures for the purpose of expressing an opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of EEOC’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of EEOC’s internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity’s financial statements that is more than inconsequential will not be prevented or detected by the entity’s internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity’s internal control.
Our consideration of internal control over financial reporting was for the limited purpose described above and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. We did, however, note two matters involving internal control and its operation that we considered to be significant deficiencies.
1. Time-and-Attendance Controls
Inaccurate Timekeeping
EEOC continued to experience difficulties in correctly recording time-and-attendance information in FY 2008. In addition, timekeepers and certifiers did not perform thorough reviews of information entered into EEOC’s timekeeping system to ensure that it accurately reflected work performed by employees.
Per EEOC policy, each employee is required to complete a Cost Accounting Bi-weekly Timesheet each pay period. The employee is required to record time worked and allocate time among activity codes representing EEOC program areas. In addition, certifiers are expected to review and approve the assignment of hours to activity codes.
Failure to properly record hours worked and activity codes on the Bi-weekly Timesheet along with entering incorrect data into EEOC’s accounting system could lead to improper calculation of accrued annual leave liability as presented on the Balance Sheets as well as incorrect program cost allocation on the Statements of Net Cost.
Recommendation: We recommend that the EEOC Office of Human Resources (OHR) review and refine controls in place over time-and-attendance reporting to ensure that all employees report accurate and complete information to timekeepers. Additionally, we recommend that OHR implement a policy requiring timesheets with incorrect or incomplete information to be returned to employees for correction before certification of time-and-attendance information in EEOC’s online timekeeping system.
Management Response: EEOC management concurred with our finding and recommendation and is taking steps to correct this deficiency.
Payment to a Separated Employee
EEOC paid an employee who no longer worked for the agency for one pay period after employment separation. EEOC personnel did not submit required separation documents to OHR in a timely manner, and the employee was not removed from the Federal Personnel and Payroll System (FPPS). In addition, the timekeeper and certifier at the former employee’s office entered and certified the employee’s time for the pay period although the employee had left the agency. The certified time-and-attendance record led to payroll disbursements to the former employee.
The General Accountability Office’s (GAO) guide, Maintaining Effective Control over Employee Time and Attendance Reporting (GAO-03-352G), page 5, states:
The supervisor has primary responsibility for authorizing and approving T&A [time and attendance] transactions. Supervisors and timekeepers should be aware of the work time and absence of employees for whom they are responsible.
Information in T&A records should be promptly and properly recorded to meet control objectives. It should be complete, accurate, valid, and comply with legal requirements.
The failure to promptly report personnel actions and to ensure that time-and-attendance information entered into FPPS is accurate and supported led to an employee being paid subsequent to separation from the agency.
Recommendation: We recommend that OHR review and refine controls in place over time-and-attendance reporting to ensure that information is submitted to OHR and processed in a timely manner. Additionally, we recommend that OHR implement training procedures to ensure that timekeepers and approving officials are aware of their responsibilities and that information entered into FPPS is accurate.
Management Response: EEOC management concurred with our finding and recommendation and is taking steps to correct this deficiency.
2. Controls Over Revenue and Receivables
Untimely Revenue Recognition
Revenue transactions for the Revolving Fund (RF) were recorded in the wrong period. Our testing of RF training-event transactions identified $126,591 of revenues recorded in FY 2007 for training events that occurred in FY 2008. This error was noted during the FY 2007 audit, but an adjustment was not processed in FY 2008 to properly record the revenue. We also noted $12,994 of revenue recorded in FY 2008 for training events scheduled to occur in FY 2009. This amount was not included in the yearend deferred revenue accrual processed by EEOC.
SFFAS No. 7, Accounting for Revenue and Other Financing Sources, Paragraph 36, states:
Revenue from exchange transactions should be recognized when the services are performed.
SFFAS No. 7 also states:
When advance fees or payments are received, revenue should not be recognized until costs are incurred from providing the goods and services (regardless of whether the fee or payment is refundable). An increase in cash and an increase in liabilities, such as "unearned revenue," should be recorded when the cash is received.
The Revolving Fund Division (RFD) recognizes exchange revenue at the time a customer registers for a training course. In FY 2008, an accrual was processed at yearend to recognize that income that had not yet been earned as deferred for reporting purposes. This accrual did not, however, capture all unearned revenue at yearend.
Recommendation: We recommend that the CFO, along with the Director of the RFD, review accrual procedures in place and refine these procedures to ensure that all revenue not earned at yearend is properly classified as deferred in the financial statements.
Management Response: EEOC management concurred with our finding and recommendation and is taking steps to correct this deficiency.
Incorrect Amounts and Ineffective Reconciliations over Revenue
Reconciliations are ineffective between Momentum and Certain Registration, the feeder system used to record event registrations and product orders for the RF. Momentum activity reconciled for FY 2008 did not tie to the yearend revenue balance reported on the financial statements. Additionally, differences in reconciliations were not resolved in a timely manner.
Results of testing also noted improper revenue amounts recorded in the general ledger. Substantive testing of revenue balances revealed instances in which the revenue amount recorded in the general ledger did not tie to the revenue amount per the supporting documents provided by EEOC. This resulted in a known $8,355 overstatement of revenue and a projected $306,523 overstatement.
GAO’s Standards for Internal Control in the Federal Government states that control activities should be in place:
…to ensure that all transactions are completely and accurately recorded.
The failure to ensure that financial system data are complete and accurate could lead to inaccurate and incomplete information being reported in the financial statements.
Recommendation: We recommend that the CFO work with the Director of the RFD to ensure that information recorded in the general ledger is accurately recorded based upon supporting documentation. Additionally, we recommend that the CFO coordinate with the Director of RFD to ensure that timely, complete, and accurate reconciliations are performed between the general ledger and the subsidiary ledger and that differences identified are researched and resolved.
Management Response: EEOC management concurred with our finding and recommendation and is taking steps to correct this deficiency.
The status of recommendations included in the FY 2007 Report on Internal Control is detailed in the appendix.
We noted other matters involving internal control and its operation that we will report to EEOC management in a separate letter.
This report is intended solely for the information and use of EEOC management, others within EEOC, OMB, and Congress. It is not intended to be and should not be used by anyone other than these specified parties.
Cotton & Company LLP
Colette Y. Wilson, CPA
Partner
November 7, 2008
Alexandria, Virginia
Appendix
Status of Management's Actions on
Prior-Year Recommendations
Fiscal Year 2008 Financial Statement Audit
U.S. Equal Employment Opportunity Commission
| Recommendation | Status as of 11-7-2008 |
|---|---|
|
We recommend that the EEOC Office of Human Resources (OHR) review and refine controls in place over time-and-attendance reporting to ensure that all employees report accurate and complete information to timekeepers. Additionally, we recommend that OHR implement a policy requiring return of timesheets with incorrect or incomplete information to employees for correction before certification of time-and-attendance information in EEOC’s online timekeeping system. |
Unresolved: Repeat Condition |
|
We recommend that the EEOC Chief Financial Officer review and update policies and procedures in place over the apportionment of funds to ensure that all funds are apportioned before obligations are incurred, as required by law. |
Completed |
Inspector General
Equal Employment Opportunity Commission
Independent Auditor’s Report on
Compliance with Laws and Regulations
We have audited the Balance Sheets of the U.S. Equal Employment Opportunity Commission (EEOC) as of September 30, 2008, and 2007, and the related Statements of Net Cost, Changes in Net Position, and Budgetary Resources for the years then ended. We have issued our report thereon dated November 7, 2008. We conducted our audits in accordance with auditing standards generally accepted in the United States of America; standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin 07-04, Audit Requirements for Federal Financial Statements.
EEOC management is responsible for complying with laws and regulations applicable to the agency. As part of obtaining reasonable assurance about whether EEOC’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws and regulations, noncompliance with which could have a direct and material effect on the determination of financial statement amounts, and certain other laws and regulations specified in OMB Bulletin 07-04.
Results of our tests of compliance disclosed no instances of noncompliance with certain provisions of laws and regulations described in the preceding paragraph that we are required to report under Government Auditing Standards or OMB Bulletin 07-04.
Providing an opinion on compliance with those provisions was not an objective of our audits, and accordingly, we do not express such an opinion.
This report is intended solely for the information and use of EEOC management, others within EEOC, OMB, and Congress. It is not intended to be and should not be used by anyone other than these specified parties.
Cotton & Company LLP
Colette Y. Wilson, CPA
Partner
November 7, 2008
Alexandria, Virginia
Limitations of the Financial Statements
EEOC has prepared its financial statements to report its financial position and results of operations, pursuant to the requirements of the Accountability of Tax Dollars Act of 2002, the Government Management Reform Act of 1994, and OMB Circular A-136, Financial Reporting Requirements.
While the EEOC statements have been prepared from its books and records in accordance with the formats prescribed by the Office of Management and Budget, the statements are in addition to the financial reports used to monitor and control budgetary resources, which are prepared from the same books and records.
These statements should be read with the understanding that they are for a component of the United States Government, a sovereign entity. Liabilities not covered by budgetary resources cannot be liquidated without the enactment of an appropriation by Congress and payment of all liabilities, other than for contracts, can be abrogated by the federal government.
| FY 2008 | FY 2007 | |
|---|---|---|
| ASSETS | ||
| Intragovernmental: | ||
| Fund balance with treasury (Note 2) | $ 75,898,063 | $ 66,569,764 |
| Accounts receivable (Note 3) | 175,135 | 75,102 |
| Prepaid expenses | 53,250 | 28,840 |
| Total intragovernmental assets | 76,126,448 | 66,673,706 |
| Accounts receivable, net (Note 3) | 218,111 | 218,725 |
| General property and equipment, net (Note 4) | 836,651 | 1,771,809 |
| Advances and prepaid expenses | 210,264 | 124,858 |
| TOTAL ASSETS | 77,391,474 | 68,789,098 |
| LIABILITIES | ||
| Intragovernmental | ||
| Accounts payable (Note 6) | 1,811,954 | 278,947 |
| Employer payroll taxes | 2,050,655 | 1,671,057 |
| Worker's compensation liability (Note 7) | 2,203,419 | 2,400,861 |
| Amounts due to Treasury for non-entity assets (Note 5) | 5,486 | 7,740 |
| Total intragovernmental liabilities | 6,071,514 | 4,358,605 |
| Accounts payable | 21,131,474 | 14,212,309 |
| Accrued payroll | 8,293,380 | 6,856,639 |
| Accrued annual leave (Note 7) | 17,353,028 | 16,838,783 |
| Future worker's compensation liability (Note 7) | 10,095,229 | 9,422,646 |
| Contingent liabilities (Note 9) | - | - |
| Capital lease liability (Note 10) | 244,527 | 434,122 |
| Amounts Collected for Restitution | 5,692 | 261,277 |
| Deferred revenue | 76,859 | - |
| TOTAL LIABILITIES | 63,271,703 | 52,384,381 |
| NET POSITION | ||
| Unexpended appropriations | 38,806,307 | 40,455,171 |
| Cumulative results of operations -- earmarked funds (Note 15) | 4,248,975 | 3,113,811 |
| Cumulative results of operations -- other funds | (28,935,511) | (27,164,265) |
| Total net position | 14,119,771 | 16,404,717 |
| TOTAL LIABILITIES AND NET POSITION | $ 77,391,474 | $ 68,789,098 |
| FY2008 | FY2007 | |
|---|---|---|
| JUSTICE, OPPORTUNITY, AND INCLUSIVE WORKPLACES | ||
| Private Sector: | ||
| Enforcement | $ 162,493,249 | $ 153,126,393 |
| Mediation | 24,509,355 | 23,955,709 |
| Litigation | 61,962,714 | 59,273,198 |
| Outreach | 12,249,362 | 11,718,314 |
| Training | 3,457,428 | 3,265,619 |
| State and Local | 35,059,597 | 35,598,513 |
| Total program costs - Private Sector | 299,731,705 | 286,937,746 |
| Revenue | (2,536,228) | (2,935,744) |
| Net cost - Private Sector | 297,195,477 | 284,002,002 |
| Federal Sector: | ||
| Hearings | 28,868,877 | 27,625,991 |
| Appeals | 13,869,829 | 13,966,501 |
| Mediation | 884,957 | 817,123 |
| Oversight | 5,224,927 | 4,427,656 |
| Training | 2,716,551 | 2,463,537 |
| Total Program costs - Federal Sector | 51,565,141 | 49,300,808 |
| Revenue | (2,660,606) | (1,593,113) |
| Net cost - Federal Sector | 48,904,535 | 47,707,695 |
| Totals all programs | ||
| Program costs | 351,296,846 | 336,238,554 |
| Revenue (Note 11) | (5,196,834) | (4,528,857) |
| Net Cost of Operations | $ 346,100,012 | $ 331,709,697 |
| FY2008 | FY2007 | |||||
|---|---|---|---|---|---|---|
| Earmarked Funds (Note 15) |
All Other Funds | Consolidated | Earmarked Funds (Note 15) |
All Other Funds | Consolidated | |
| Cumulative Results of Operations | ||||||
| Beginning Balances: | $3,113,811 | $(27,164,265) | $(24,050,454) | $3,162,237 | $(26,251,262) | $(23,089,025) |
| Adjustments: | ||||||
| Correction of errors (Note 12) | - | (2,917) | (2,917) | - | - | - |
| Beginning balances, as adjusted | 3,113,811 | (27,167,182) | (24,053,371) | 3,162,237 | (26,251,262) | (23,089,025) |
| Budgetary Financing Sources: | ||||||
| Unexpended appropriations - used | - | 328,663,798 | 328,663,798 | - | 313,005,162 | 313,005,162 |
| Other Financing Sources: | ||||||
| Imputed financing sources (Note 16) | - | 16,803,049 | 16,803,049 | - | 17,743,106 | 17,743,106 |
| Transfers in/out without reimbursement | - | - | - | - | ||
| Total Financing Sources | - | 345,466,847 | 345,466,847 | - | 330,748,268 | 330,748,268 |
| Net Cost of Operations | 1,135,164 | (347,235,176) | (346,100,012) | (48,426) | (331,661,271) | (331,709,697) |
| Net Change | 1,135,164 | (1,768,329) | (633,165) | (48,426) | (913,003) | (961,429) |
| Cumulative Results of Operations | 4,248,975 | (28,935,511) | (24,686,536) | 3,113,811 | (27,164,265) | (24,050,454) |
| Unexpended Appropriations | ||||||
| Beginning Balances: | $ - | $ 40,455,171 | $ 40,455,171 | $ - | $ 26,487,334 | $ 26,487,334 |
| Budgetary Financing Sources: | ||||||
| Appropriations received (Note 13) | - | 329,300,000 | 329,300,000 | - | 328,745,219 | 328,745,219 |
| Recissions and canceled appropriations | - | (2,285,066) | (2,285,066) | - | (1,772,220) | (1,772,220) |
| Unexpended appropriations - used | - | (328,663,798) | (328,663,798) | - | (313,005,162) | (313,005,162) |
| Total Budgetary Financing Sources | - | (1,648,864) | (1,648,864) | - | 13,967,837 | 13,967,837 |
| Total Unexpended Appropriations | - | 38,806,307 | 38,806,307 | - | 40,455,171 | 40,455,171 |
| Net Position | $ 4,248,975 | $ 9,870,796 | $ 14,119,771 | $ 3,113,811 | $ 13,290,906 | $ 16,404,717 |
| FY2008 | FY2007 | |
|---|---|---|
| Budgetary Resources | ||
| Unobligated balance, brought forward, October 1: | $ 8,891,905 | $ 7,675,269 |
| Recoveries of prior year unpaid obligations | 2,535,159 | 3,402,528 |
| Budget authority: | ||
| Appropriation (Note 13) | 329,300,000 | 328,745,219 |
| Spending authority from offsetting collections: | ||
| Earned: | ||
| Collected | 6,275,341 | 5,118,385 |
| Change in receivables from Federal sources | 140,159 | (3,141) |
| Subtotal | 335,715,500 | 333,860,463 |
| Permanently not available | (2,285,066) | (1,772,220) |
| Total Budgetary Resources | $344,857,498 | $343,166,040 |
| Status of Budgetary Resources | ||
| Obligations incurred | ||
| Direct obligations (Note 14) | 329,845,399 | 329,810,224 |
| Reimbursable obligations | 4,975,151 | 4,463,911 |
| Subtotal | 334,820,550 | 334,274,135 |
| Unobligated balance | ||
| Apportioned | 1,336,965 | 845,639 |
| Unobligated balance not available | 8,699,983 | 8,046,266 |
| Total Status of Budgetary Resources | $344,857,498 | $343,166,040 |
| Change in Obligated Balance: | ||
| Obligated balance, net | ||
| Unpaid obligations brought forward October 1 | 57,560,861 | 54,635,082 |
| Less: Uncollected customer payments from Federal sources, brought forward, October 1: |
(144,279) | (147,420) |
| Total unpaid obligated balance | 57,416,582 | 54,487,662 |
| Obligations incurred, net | 334,820,550 | 334,274,135 |
| Less: Gross outlays | (323,706,391) | (327,945,828) |
| Less: Recoveries of prior year unpaid obligations, net | (2,535,159) | (3,402,528) |
| Change in uncollected customer payments from Federal sources | (140,159) | 3,141 |
| Obligated balance, net, end of period | ||
| Unpaid obligations | 66,139,861 | 57,560,861 |
| Less: Uncollected customer payments from Federal sources | (284,438) | (144,279) |
| Total, unpaid obligation balance, net, end of period | 65,855,423 | 57,416,582 |
| Net Outlays: | ||
| Net Outlays: | ||
| Gross outlays | 323,706,391 | 327,945,828 |
| Less: Offsetting collections | (6,275,341) | (5,118,385) |
| Net Outlays | $ 317,431,050 | $ 322,827,443 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2008 and 2007
(In Dollars)
(1) Summary of Significant Accounting Policies
(a) Reporting Entity
The Equal Employment Opportunity Commission (EEOC) was created by Title VII of the Civil Rights Act of 1964 (78 Stat. 253:42 U.S.C. 2000e et seq) as amended by the Equal Employment Opportunity Act of 1972 (Public Law 92261), and became operational on August 2, 1965. Title VII requires that the Commission be composed of five members, not more than three of whom shall be of the same political party. The members are appointed by the President of the United States of America, by and with the consent of the Senate, for a term of 5 years. The President designates one member to serve as Chairman and one member to serve as Vice Chairman. The General Counsel is also appointed by the President, by and with the advice and consent of the Senate for a term of four years.
In addition, based on the EEOC Education Technical Assistance and Training Revolving Fund Act of 1992 (P.L. 102-411), the EEOC is authorized to charge and receive fees to offset the costs of education, technical assistance and training.
The Commission is concerned with discrimination by public and private employers of 15 or more employees (excluding elected or appointed officials of state and local governments), public and private employment agencies, labor organizations with 15 or more members or agencies which refer persons for employment or which represent employees of employers covered by the Act, and joint labor-management apprenticeship programs of covered employers and labor organizations. The Commission carries out its mission through investigation, conciliation, litigation, coordination, regulation in the federal sector, and through education, policy research, and provision of technical assistance.
(b) Basis of Presentation
These financial statements have been prepared to report the consolidated financial position of the EEOC, consistent with the Chief Financial Officers’ Act of 1990 and the Government Management Reform Act of 1994. This means that any intra-agency transactions have been eliminated. These financial statements have been prepared from the books and records of the EEOC in accordance with generally accepted accounting principles (GAAP) using guidance issued by the Federal Accounting Standards Advisory Board (FASAB), the Office of Management and Budget (OMB) and the EEOC’s accounting policies, which are summarized in this note. These consolidated financial statements present proprietary information while other financial reports also prepared by the EEOC pursuant to OMB directives are used to monitor and control the EEOC’s use of federal budgetary resources.
(c) Basis of Accounting
The Commission’s integrated Financial Management System uses CGI’s Momentum, which is a highly flexible financial accounting, funds control, management accounting, and financial reporting system designed specifically for federal agencies. Momentum complies with the Financial Systems Integration Office’s core requirements for federal financial systems.
Financial transactions are recorded in the financial system, using both an accrual and a budgetary basis of accounting. Under the accrual method, revenues are recognized when earned and expenses are recognized when a liability is incurred, without regard to the receipt or payment of cash. Budgetary accounting facilitates compliance with legal requirements and mandated controls over the use of federal funds. It generally differs from the accrual basis of accounting in that obligations are recognized when new orders are placed, contracts awarded, and services received that will require payments during the same or future periods. Any EEOC intra-entity transactions have been eliminated in the consolidated financial statements.
(d) Revenues, User Fees and Financing Sources
The EEOC receives the majority of the funding needed to support its programs through congressional appropriations. Financing sources are received in direct and indirect annual and no-year appropriations that may be used, within statutory limits for operating and capital expenditures. Appropriations used are recognized as an accrual-based financing source when expenses are incurred or assets are purchased.
The EEOC also has a permanent, indefinite appropriation. These additional funds are obtained through fees charged to offset costs for education, training and technical assistance provided through the revolving fund. The fund is used to pay the cost (including administrative and personnel expenses) of providing education, technical assistance, and training by the Commission. Revenue is recognized as earned when the services have been rendered.
An imputed financing source is recognized to offset costs incurred by the EEOC and funded by another federal source, in the period in which the cost was incurred. The types of costs offset by imputed financing are: (1) employees’ pension benefits; (2) health insurance, life insurance and other post-retirement benefits for employees; and (3) losses in litigation proceedings. Funding from other federal agencies is recorded as an imputed financing source.
(e) Assets and Liabilities
Assets and liabilities presented on the EEOC’s balance sheets include both entity and non-entity balances. Entity assets are assets that the EEOC has authority to use in its operations. Non-entity assets are held and managed by the EEOC, but are not available for use in operations. The EEOC’s non-entity assets represent receivables that, when collected will be transferred to the United States Treasury.
Intra-governmental assets and liabilities arise from transactions between the Commission and other federal entities. All other assets and liabilities result from activity with non-federal entities.
Liabilities covered by budgetary or other resources are those liabilities of the EEOC for which Congress has appropriated funds, or funding is otherwise available to pay amounts due. Liabilities not covered by budgetary or other resources represent amounts owed in excess of available congressionally appropriated funds or other amounts. The liquidation of liabilities not covered by budgetary or other resources is dependent on future congressional appropriations or other funding.
(f) Fund Balance with the U.S. Treasury
Fund Balances with Treasury are cash balances remaining as of the fiscal year-end from which the EEOC is authorized to make expenditures and pay liabilities resulting from operational activity, except as restricted by law. The balance consists primarily of appropriations. The EEOC records and tracks appropriated funds in its general funds. Also included in Fund Balance with Treasury are fees collected for services which are recorded and accounted for in the EEOC’s revolving fund.
(g) Accounts Receivable
Accounts receivable consists of amounts owed to the EEOC by other federal agencies and from the public.
Intra-governmental accounts receivable represents amounts due from other federal agencies. The receivables are stated net of an allowance for estimated uncollectible amounts. The method used for estimating the allowance is based on analysis of aging of receivables and historical data.
Accounts receivable from non-federal agencies are stated net of an allowance for estimated uncollectible amounts. The allowance is determined by considering the debtor’s current ability to pay, their payment record, and willingness to pay and an analysis of aged receivable activity. The allowance for accounts receivable is computed as follows: Accounts receivable between 365 days and 720 days old are computed at 50% and those older than 720 days years are calculated at 100%.
(h) Property, Plant and Equipment
Property, plant and equipment consist of equipment, leasehold improvements and capitalized software. There are no restrictions on the use or convertibility of property, plant and equipment.
For property, plant and equipment, the EEOC capitalizes equipment (including capital leases), and software purchases with a useful life of more than 2 years and an acquisition cost of $25,000 or more. Leasehold improvements are capitalized with a useful life of 2 years or more and an acquisition cost of at least $100,000.
Expenditures for normal repairs and maintenance are charged to expense as incurred unless the expenditure is equal to or greater than $25,000 and the improvement increases the asset’s useful life by more than two years.
For fiscal year 2008, the capitalization threshold for equipment and software and repairs and maintenance meeting the criteria has been changed from $15,000 to $25,000. For fiscal year 2007 and prior years, the threshold is $15,000.
Depreciation or amortization of equipment is computed using the straight-line method over the assets’ useful lives ranging from 5 to15 years. Copiers are depreciated using a 5-year life. Lektriev power files are depreciated over 15 years and computer hardware is depreciated over 10 to 12 years. Capitalized software is amortized over a useful life of 2 years. Amortization of capitalized software begins on the date it is put in service, if purchased, or when the module or component has been successfully tested if developed internally. Leasehold improvements are amortized over the remaining life of the lease.
The EEOC leases the majority of its office space from the General Services Administration. The lease costs approximate commercial lease rates for similar properties.
(i) Advances and Prepaid Expenses
Amounts advanced to EEOC employees for travel are recorded as an advance until the travel is completed and the employee accounts for travel expenses.
Expenses paid in advance of receiving services are recorded as a prepaid expense until the services are received.
(j) Accrued Annual, Sick and Other Leave and Compensatory Time
Annual leave, compensatory time and other leave time, along with related payroll costs, are accrued when earned, reduced when taken, and adjusted for changes in compensation rates. Sick leave is not accrued when earned, but rather expensed when taken.
(k) Retirement Benefits
EEOC employees participate in the Civil Service Retirement System (CSRS) or the Federal Employees’ Retirement System (FERS). 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.
For employees under FERS, the EEOC contributes an amount equal to 1% of the employee’s basic pay to the tax deferred thrift savings plan and matches employee contributions up to an additional 4% of pay. For the calendar years of 2008 and 2007, FERS employees can contribute $15,500 of their gross earnings to the plan. For calendar years 2008 and 2007, CSRS employees’ contribution is also $15,500 of their gross earnings. However, they receive no matching agency contribution. There is also an additional $5,000 that can be contributed as a “catch-up” contribution for those 50 years of age or older.
The EEOC recognizes the full cost of providing future pension and Other Retirement Benefits (ORB) for current employees as required by SFFAS No. 5, Accounting for Liabilities of the Federal Government. Full costs include pension and ORB contributions paid out of EEOC appropriations and costs financed by the U.S. Office of Personnel Management (OPM). The amount financed by OPM is recognized as an imputed financing source. Reporting amounts such as plan assets, accumulated plan benefits, or unfunded liabilities, if any, is the responsibility of OPM.
Liabilities for future pension payments and other future payments for retired employees who participate in the Federal Employees Health Benefits Program (FEHBP) and the Federal Employees Group Life Insurance Program (FEGLI) are reported by OPM rather than EEOC.
(l) Workers’ Compensation
A liability is recorded for estimated future payments to be made for workers’ compensation pursuant to the Federal Employees’ Compensation Act (FECA). The FECA program is administered by the U.S. Department of Labor, (DOL) which initially pays valid claims and subsequently seeks reimbursement from federal agencies employing the claimants. Reimbursements to the DOL on payments made occur approximately 2 years subsequent to the actual disbursement. Budgetary resources for this intra-governmental liability are made available to the EEOC as part of its annual appropriation from Congress in the year that reimbursement to the DOL takes place. A liability is recorded for actual un-reimbursed costs paid by DOL to recipients under FECA.
Additionally, an estimate of the expected future liability for death, disability, medical and miscellaneous costs for approved compensation cases is recorded. The EEOC employs an actuary to compute this estimate using a method that utilizes historical benefit payment patterns related to a specific period to predict the ultimate payments related to the current period. The estimated liability is not covered by budgetary resources and will require future funding. This estimate is recorded as a future liability.
(m) Contingent Liabilities
Contingencies are recorded when losses are probable, and the cost is measurable. When an estimate of contingent losses includes a range of possible costs, the most likely cost is reported, but where no cost is more likely than any other, the lowest possible cost in the range is reported.
(n) Amounts Collected for Restitution
The courts directed an individual to pay amounts to the EEOC as restitution to several claimants named in a court case. These monies will be paid to claimants as directed by the courts.
(o) Cost Allocations to Programs
Costs associated with the EEOC’s various programs consist of direct costs consumed by the program, including personnel costs, and a reasonable allocation of indirect costs. The indirect cost allocations are based on actual hours devoted to each program from information provided by EEOC employees.
(p) Unexpended Appropriations
Unexpended appropriations represent the amount of EEOC’s unexpended appropriated spending authority as of the fiscal year-end that is unliquidated or is unobligated and has not lapsed, been rescinded or withdrawn.
(q) Income Taxes
As an agency of the federal government, EEOC is exempt from all income taxes imposed by any governing body, whether it is a federal, state, commonwealth, local, or foreign government.
(r) Use of Estimates
Management has made certain estimates and assumptions in reporting assets and liabilities and in the footnote disclosures. Actual results could differ from these estimates. Significant estimates underlying the accompanying financial statements include the allowance for doubtful accounts receivable, contingent liabilities and future workers’ compensation costs.
(2) Fund Balance with Treasury
Treasury performs cash management activities for all federal agencies. The net activity represents Fund Balance with Treasury. The Fund Balance with Treasury represents the right of the EEOC to draw down funds from Treasury for expenses and liabilities. Fund Balance with Treasury by fund type as of September 30, 2008, and 2007 consists of the following:
| FY 2008 | FY 2007 | ||||
|---|---|---|---|---|---|
|
Fund Type |
|
|
|
|
|
|
Revolving funds |
$ |
4,118,095 |
|
$ |
2,972,574 |
|
Appropriated funds |
|
71,774,276 |
|
|
63,335,913 |
|
Other fund types |
|
5,692 |
|
|
261,277 |
|
Totals |
$ |
75,898,063 |
|
$ |
66,569,764 |
The status of the fund balance is classified as unobligated available, unobligated unavailable, or obligated. Unobligated funds, depending on budget authority, are generally available for new obligations in the current year of operations. The unavailable amounts are those appropriated in prior fiscal years, which are not available to fund new obligations. The obligated, but not yet disbursed, balance represents amounts designated for payment of goods and services ordered but not yet received, or goods and services received, but for which payment has not yet been made.
The Fund Balance with Treasury includes items for which budgetary resources are not recorded, such as deposit funds and miscellaneous receipts. These funds are shown in the table below as a Non-budgetary Fund Balance with Treasury.
The undelivered orders at the end of the period consist of $33,115,913 and $34,695,607 for FY 2008 and 2007, respectively.
For fiscal years ended September 30, 2008 and 2007, funds in closed accounts of $2,285,066 and $1,772,220 were returned to Treasury.
Status of Fund Balance with Treasury as of September 30, 2008 and 2007 consists of the following:
| FY 2008 | FY 2007 | ||||
|---|---|---|---|---|---|
|
Status of Funds |
|
|
|
|
|
|
Unobligated balance: |
|
|
|
|
|
|
Available |
$ |
1,336,965 |
|
$ |
845,639 |
|
Unavailable |
|
8,699,983 |
|
|
8,046,266 |
|
Obligated balance not yet disbursed |
|
65,855,423 |
|
|
57,416,582 |
|
Non-budgetary Fund Balance with Treasury |
|
5,692 |
|
|
261,277 |
|
Totals |
$ |
75,898,063 |
|
$ |
66,569,764 |
(3) Accounts Receivable, Net
Intra-governmental accounts receivable due from federal agencies arise from the sale of services to other federal agencies. This sale of services generally reduces the duplication of effort within the federal government resulting in a lower cost of federal programs and services. While all receivables from federal agencies are considered collectible, an allowance for doubtful accounts is sometimes used to recognize the occasional billing dispute. In FY 2008, this was not deemed necessary.
Accounts receivable due to EEOC from the public arise from enforcement or prevention and training services provided to public and private entities or state and local agencies. An analysis of accounts receivable is performed to determine collectibility and an appropriate allowance for uncollectible receivables is recorded. The allowance for accounts receivable is computed as follows: Accounts receivable between 365 days and 720 days old are computed at 50% and those older than 720 days years are calculated at 100%. Accounts receivable as of September 30, 2008, and 2007 are as follows:
|
|
FY 2008 |
|
|
FY 2007 | |
|---|---|---|---|---|---|
|
Intra-governmental: |
|
|
|
|
|
|
Accounts receivable (see detail below) |
$ |
175,135 |
|
$ |
75,953 |
|
Allowance for uncollectible receivables |
|
— |
|
|
(851) |
|
Totals |
$ |
175,135 |
|
$ |
75,102 |
|
|
FY 2008 |
|
|
FY 2007 | |
|---|---|---|---|---|---|
|
With the public: |
|
|
|
|
|
|
Accounts receivable |
$ |
331,980 |
|
$ |
269,993 |
|
Allowance for uncollectible receivables |
|
(113,869) |
|
|
(51,268) |
|
Totals |
$ |
218,111 |
|
$ |
218,725 |
Amounts due from various federal agencies are for accounts receivable as of September 30, 2008 and 2007. These are related to registered participants’ training fees due to the revolving fund and appropriated interagency agreements as shown in the table below:
|
|
FY 2008 |
|
|
FY 2007 | |
|---|---|---|---|---|---|
|
Agency |
|
|
|
|
|
|
Environmental Protection Agency |
$ |
43,599 |
|
$ |
8,599 |
|
Department of Transportation |
|
29,655 |
|
|
520 |
|
Executive Office of the President |
|
18,120 |
|
|
— |
|
Defense Agencies |
|
16,073 |
|
|
165 |
|
Department of the Army |
|
13,520 |
|
|
22,394 |
|
Department of Treasury |
|
12,365 |
|
|
1,030 |
|
Department of Homeland Security |
|
10,632 |
|
|
1,805 |
|
Department of Agriculture |
|
5,580 |
|
|
4,080 |
|
Department of the Interior |
|
4,470 |
|
|
2,974 |
|
Department of Education |
|
3,700 |
|
|
1,850 |
|
Department of the Navy |
|
3,625 |
|
|
4,025 |
|
National Labor Relations Board |
|
3,525 |
|
|
— |
|
Department of Justice |
|
3,350 |
|
|
855 |
|
Department of State |
|
2,025 |
|
|
— |
|
Department of Labor |
|
1,235 |
|
|
1,990 |
|
Department of Health and Human Services |
|
1,220 |
|
|
335 |
|
Department of Veterans Affairs |
|
696 |
|
|
696 |
|
Department of Housing and Urban Development |
|
670 |
|
|
1,340 |
|
Securities and Exchange Commission |
|
35 |
|
|
1,860 |
|
General Services Administration |
|
— |
|
|
3,000 |
|
Independent Agencies |
|
— |
|
|
1,900 |
|
Department of the Air Force |
|
— |
|
|
995 |
|
Other agencies |
|
1,040 |
|
|
678 |
|
Subtotal revolving fund |
|
175,135 |
|
|
61,091 |
|
Appropriated Funds (interagency agreements) |
|
|
|
|
|
|
National Aeronautics and Space Administration |
|
— |
|
|
14,862 |
|
Subtotal appropriated funds |
|
— |
|
|
14,862 |
|
Totals |
$ |
175,135 |
|
$ |
75,953 |
(4) Property, Plant and Equipment, Net
Property, plant and equipment consist of that property which is used in operations and consumed over time. The following tables summarize cost and accumulated depreciation of property, plant and equipment.
|
As of September 30, 2008 |
|
Cost |
|
|
Accumulated Depreciation |
|
|
Net Book Value |
|---|---|---|---|---|---|---|---|---|
|
Equipment |
$ |
1,207,664 |
|
$ |
(784,396) |
|
$ |
423,268 |
|
Capital leases |
|
865,257 |
|
|
(656,968) |
|
|
208,289 |
|
Internal use software |
|
4,018,975 |
|
|
(4,018,975) |
|
|
— |
|
Leasehold improvements |
|
2,924,120 |
|
|
(2,719,026) |
|
|
205,094 |
|
Totals |
$ |
9,016,016 |
|
$ |
(8,179,365) |
|
$ |
836,651 |
|
As of September 30, 2007 |
|
Cost |
|
|
Accumulated Depreciation |
|
|
Net Book Value |
|---|---|---|---|---|---|---|---|---|
|
Equipment |
$ |
1,286,681 |
|
$ |
(854,077) |
|
$ |
432,604 |
|
Capital leases |
|
904,821 |
|
|
(513,893) |
|
|
390,928 |
|
Internal use software |
|
4,018,975 |
|
|
(3,643,952) |
|
|
375,023 |
|
Leasehold improvements |
|
2,924,120 |
|
|
(2,350,866) |
|
|
573,254 |
|
Totals |
$ |
9,134,597 |
|
$ |
(7,362,788) |
|
$ |
1,771,809 |
Depreciation expense for the periods ended September 30, 2008 and 2007 is:
|
|
FY 2008 |
|
|
FY 2007 |
|---|---|---|---|---|
|
$ |
1,054,161 |
|
$ |
1,205,074 |
(5) Non-Entity Assets
The EEOC has $5,486 of net receivables to collect on behalf of the U.S. Treasury as of September 30, 2008 and $7,740 of net receivables to collect on behalf of the U.S. Treasury as of September 30, 2007. Cash collections of $138,018 were returned to Treasury on September 30, 2008, and $109,915 was returned to Treasury as on September 30, 2007, as instructed by Treasury.
(6) Liabilities Owed to Other Federal Agencies
As of September 30, 2008 and 2007, the following amounts were owed to other federal agencies:
|
Agency: |
|
FY 2008 |
|
|
FY 2007 |
|---|---|---|---|---|---|
|
General Services Administration |
$ |
1,391,137 |
|
$ |
144,820 |
|
Department of Justice |
|
114,105 |
|
|
114,105 |
|
Department of Homeland Security |
|
86,461 |
|
|
— |
|
Office of Personnel Management |
|
74,787 |
|
|
— |
|
Department of Interior |
|
57,267 |
|
|
1,267 |
|
Department of the Treasury |
|
43,325 |
|
|
— |
|
Department of Health and Human Services |
|
19,081 |
|
|
12,805 |
|
National Archives and Records |
|
15,583 |
|
|
— |
|
Department of Agriculture |
|
10,200 |
|
|
5,950 |
|
Other agencies |
|
8 |
|
|
— |
|
Totals |
$ |
1,811,954 |
|
$ |
278,947 |
(7) Liabilities Not Covered by Budgetary Resources
Liabilities not covered by budgetary resources represent amounts owed in excess of available congressionally appropriated funds or other amounts.
Liabilities not covered by budgetary resources as of September 30 are shown in the following table:
|
|
FY 2008 |
|
|
FY 2007 | |
|---|---|---|---|---|---|
|
Intra-governmental: |
|
|
|
|
|
|
Accrued worker’s compensation |
$ |
2,203,419 |
|
$ |
2,400,861 |
|
Total intra-governmental |
|
2,203,419 |
|
|
2,400,861 |
|
Accrued annual leave |
|
17,353,028 |
|
|
16,838,783 |
|
Worker’s compensation due in the future |
|
10,095,229 |
|
|
9,422,646 |
|
Capital lease liability |
|
244,527 |
|
|
434,122 |
|
Total liabilities not covered by budgetary resources |
|
29,896,203 |
|
|
29,096,412 |
|
Total liabilities covered by budgetary resources |
|
33,375,500 |
|
|
23,287,969 |
|
Total liabilities |
$ |
63,271,703 |
|
$ |
52,384,381 |
The EEOC employs an actuary to determine the future workers’ compensation liability.
(8) Liabilities Analysis
Current and non-current liabilities as of September 30, 2008 are shown in the following table:
|
|
|
Current |
|
|
Non-Current |
|
|
Totals |
|---|---|---|---|---|---|---|---|---|
|
Covered by budgetary resources: |
|
|
|
|
|
|
|
|
|
Intra-governmental: |
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
1,811,954 |
|
$ |
— |
|
$ |
1,811,954 |
|
Payroll taxes |
|
2,050,655 |
|
|
— |
|
|
2,050,655 |
|
Due to Treasury |
|
5,486 |
|
|
— |
|
|
5,486 |
|
Total Intra—governmental |
|
3,868,095 |
|
|
— |
|
|
3,868,095 |
|
Accounts payable |
|
21,131,474 |
|
|
— |
|
|
21,131,474 |
|
Accrued payroll |
|
8,293,380 |
|
|
— |
|
|
8,293,380 |
|
Amounts collected for restitution |
|
5,692 |
|
|
— |
|
|
5,692 |
|
Unearned revenue |
|
76,859 |
|
|
— |
|
|
76,859 |
|
Liabilities covered by |
|
|
|
|
— |
|
|
|
|
Liabilities not covered by budgetary resources: |
|
|
|
|
|
|
|
|
|
Intra-governmental: |
|
|
|
|
|
|
|
|
|
Worker’s compensation |
|
1,054,223 |
|
|
1,149,196 |
|
|
2,203,419 |
|
Total Intra-governmental |
|
1,054,223 |
|
|
1,149,196 |
|
|
2,203,419 |
|
Accrued annual leave |
|
17,353,028 |
|
|
— |
|
|
17,353,028 |
|
Actuarial worker’s compensation |
|
— |
|
|
10,095,229 |
|
|
10,095,229 |
|
Capital lease liability |
|
146,560 |
|
|
97,967 |
|
|
244,527 |
|
Liabilities not covered by budgetary resources |
|
|
|
|
|
|
|
|
|
Total liabilities |
$ |
51,929,311 |
|
$ |
11,342,392 |
|
$ |
63,271,703 |
Current and non-current liabilities as of September 30, 2007 are shown in the following table:
|
|
|
Current |
|
|
Non-Current |
|
|
Totals |
|---|---|---|---|---|---|---|---|---|
|
Covered by budgetary resources: |
|
|
|
|
|
|
|
|
|
Intra-governmental: |
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
278,947 |
|
$ |
— |
|
$ |
278,947 |
|
Payroll taxes |
|
1,671,057 |
|
|
— |
|
|
1,671,057 |
|
Due to Treasury |
|
7,740 |
|
|
— |
|
|
7,740 |
|
Total Intra-governmental |
|
1,957,744 |
|
|
— |
|
|
1,957,744 |
|
Accounts payable |
|
14,212,309 |
|
|
— |
|
|
14,212,309 |
|
Accrued payroll |
|
6,856,639 |
|
|
— |
|
|
6,856,639 |
|
Amounts collected for restitution |
|
261,277 |
|
|
— |
|
|
261,277 |
|
Liabilities covered by |
|
|
|
|
— |
|
|
|
|
Liabilities not covered by budgetary resources: |
|
|
|
|
|
|
|
|
|
Intra-governmental: |
|
|
|
|
|
|
|
|
|
Worker’s compensation |
|
1,054,223 |
|
|
1,346,638 |
|
|
2,400,861 |
|
Total Intra-governmental |
|
1,054,223 |
|
|
1,346,638 |
|
|
2,400,861 |
|
Accrued annual leave |
|
16,838,783 |
|
|
— |
|
|
16,838,783 |
|
Actuarial worker’s compensation |
|
— |
|
|
9,422,646 |
|
|
9,422,646 |
|
Capital lease liability |
|
189,685 |
|
|
244,437 |
|
|
434,122 |
|
Liabilities not covered by budgetary resources |
|
|
|
|
|
|
|
|
|
Total liabilities |
$ |
41,370,660 |
|
$ |
11,013,721 |
|
$ |
52,384,381 |
(9) Contingent Liabilities
EEOC is a party to various administrative proceedings, legal actions and claims that may eventually result in the payment of substantial monetary claims to third parties, or in the reallocation of material budgetary resources. Any financially unfavorable administrative or court decision could be funded from either the various claims to judgment funds maintained by Treasury or paid by EEOC. In FY 2008 and FY 2007 $0 and $0, respectively was recorded for contingent liabilities, which are the amounts considered probable and measurable by EEOC’s management and legal counsel. In addition for FY 2008, there is one claim for which it is reasonably possible that damages will be paid. This pending litigation is for overtime for which employees claim they were entitled. The estimated amount of this claim is between three million ($3,000,000) and seven million ($7,000,000). The chance of this claim succeeding is less than probable, but more than remote. The agency has and will continue to vigorously contest this claim. In the opinion of EEOC’s management, the ultimate resolution of pending litigation will not have a material effect on the EEOC’s financial statements.
(10) Leases
Capital Leases
The EEOC has several capital leases for copiers in the amount of $865,257 for FY 2008. These leases can be canceled without penalty. The future lease payments and net capital lease liability as of September 30, 2008 is as follows:
| Fiscal Year |
|
Future Payments |
|---|---|---|
|
2009 |
$ |
171,043 |
|
2010 |
|
58,423 |
|
2011 |
|
58,423 |
|
2012 |
|
— |
|
2013 |
|
— |
|
Thereafter |
|
— |
|
Total future lease payments |
|
287,889 |
|
Less: imputed interest |
|
(43,362) |
|
Net capital lease liability |
$ |
244,527 |
None of the future lease payments are covered by budgetary resources.
Operating leases
The EEOC has several cancelable operating leases with the General Services Administration (GSA), for office space which do not have a stated expiration. The GSA charges rent that is intended to approximate commercial rental rates. Rental expenses for operating leases during FYs 2008 and 2007 are $26,563,033 and $26,021,773, respectively. The EEOC has estimated its future minimum liability on GSA operating leases by adding inflationary adjustments to the FY 2008 lease rental expense. Future estimated minimum lease payments, for five fiscal years under GSA as of September 30, 2008 are:
| Fiscal Year |
|
Estimated Payments |
|---|---|---|
|
2009 |
$ |
29,300,000 |
|
2010 |
|
27,594,000 |
|
2011 |
|
28,284,000 |
|
2012 |
|
29,133,000 |
|
2013 |
|
29,861,000 |
|
Total |
$ |
144,172,000 |
(11) Earned Revenue
The EEOC charges fees to offset costs for education, training and technical assistance. These services are provided to other federal agencies, the public, and to some State and Local agencies, as requested. In the chart below, the fees from services does not include intra-agency transactions. The Commission also has a small amount of reimbursable revenue from contracts with other federal agencies to provide on-site personnel. Revenue earned by the Commission as of September 30, 2008, and 2007 was as follows:
|
|
FY 2008 |
|
|
FY 2007 | |
|---|---|---|---|---|---|
|
Reimbursable revenue |
$ |
175,078 |
|
$ |
121,019 |
|
Fees from services |
|
5,021,756 |
|
|
4,407,838 |
|
Total Revenue |
$ |
5,196,834 |
|
$ |
4,528,857 |
(12) Correction of Errors
It was discovered during the reconciliation between the Fixed Asset System and the general ledger that a copier that had been leased in 2004 was not recorded in the general ledger. The correction below is to record the remaining portion of the capital lease liability as of September 30, 2008.
|
Cumulative Results of Operations |
|
FY 2008 |
|
|
FY 2007 |
|---|---|---|---|---|---|
|
Reclassify principle payments on capital lease obligation |
|
|
|
|
|
|
Totals |
$ |
2,917 |
|
|
— |
(13) Appropriations Received
Warrants received by the Commission as of September 30, 2008 and 2007 are:
|
|
FY 2008 |
|
|
FY 2007 |
|---|---|---|---|---|
|
$ |
329,300,000 |
|
$ |
328,745,219 |
There was no rescission for the warrant received by the EEOC for fiscal year September 30, 2008, and fiscal year ended September 30, 2007 was net of rescissions.
(14) Apportionment Categories of Obligations Incurred: Direct vs. Reimbursable Obligations
Direct and Reimbursable obligations were restated for FY 2007 for comparative purposes to FY 2008. They were also restated on the Combined Statement of Budgetary Resources for FY 2007.
| Obligations |
|
FY 2008 |
|
|
FY 2007 |
|---|---|---|---|---|---|
|
Direct A |
$ |
301,205,348 |
|
$ |
300,287,453 |
|
Direct B |
|
28,640,051 |
|
|
29,522,771 |
|
Subtotal Direct Obligations |
|
329,845,399 |
|
|
329,810,224 |
|
Reimbursable—Direct A |
|
4,975,151 |
|
|
4,463,911 |
|
Total Obligations |
$ |
334,820,550 |
|
$ |
334,274,135 |
(15) Earmarked Funds (Permanent Indefinite Appropriations)
The Commission has permanent, indefinite appropriations from fees earned from services provided to the public and to other federal agencies. These fees are charged to offset costs for education, training and technical assistance provided through the revolving fund. This fund is an earmarked fund and is accounted for separately from the other funds of the Commission. The fund is used to pay the cost (including administrative and personnel expenses) of providing education, technical assistance and training by the Commission. Revenue is recognized as earned when the services have been rendered by the EEOC.
| Balance Sheet as of September 30, |
|
2008 |
|
|
2007 |
|---|---|---|---|---|---|
|
ASSETS |
|
|
|
|
|
|
Fund balance with Treasury |
$ |
4,118,095 |
|
$ |
2,972,574 |
|
Accounts receivable (net of allowance) |
|
263,718 |
|
|
110,888 |
|
Advances and prepaid expenses |
|
111,591 |
|
|
62,840 |
|
TOTAL ASSETS |
$ |
4,493,405 |
|
$ |
3,146,301 |
|
LIABILITIES |
|
|
|
|
|
|
Accounts payable |
|
167,571 |
|
|
32,490 |
|
Deferred revenue |
|
76,859 |
|
|
— |
|
TOTAL LIABILITIES |
|
244,430 |
|
|
32,490 |
|
NET POSITION |
|
|
|
|
|
|
Cumulative results of operations |
|
4,248,975 |
|
|
3,113,811 |
|
TOTAL LIABILITIES AND NET POSITION |
$ |
|
|
$ |
|
| Statement of Net Cost for the Period Ended September 30, |
|
2008 |
|
|
2007 |
|---|---|---|---|---|---|
|
Program Costs |
$ |
4,934,523 |
|
$ |
5,042,652 |
|
Revenue |
|
(6,069,687) |
|
|
(4,994,226) |
|
Net Cost (Revenue) |
$ |
(1,135,164) |
|
$ |
48,426 |
The Revenue includes $1,047,931 and $586,388 of intra-agency revenue for fiscal years ended September 30, 2008, and 2007, respectively, that is eliminated in the Principal Statements.
(16) Imputed Financing
OPM pays pension and other future retirement benefits on behalf of federal agencies for federal employees. OPM provides rates for recording the estimated cost of pension and other future retirement benefits paid by OPM on behalf of federal agencies. The costs of these benefits are reflected as imputed financing in the consolidated financial statements. The U.S. Treasury’s Judgment Fund paid certain judgments on behalf of the EEOC. Expenses of the EEOC paid or to be paid by other federal agencies at September 30, 2008 and 2007 consisted of:
| FY 2008 |
|
|
FY 2007 | ||
|---|---|---|---|---|---|
|
Office of Personnel Management: |
|
|
|
|
|
|
Pension expenses |
$ |
6,856,778 |
|
$ |
7,205,337 |
|
Federal employees health benefits (FEHB) |
|
9,783,585 |
|
|
10,453,072 |
|
Federal employees group life insurance (FEGLI) |
|
30,722 |
|
|
29,911 |
|
Subtotal OPM |
|
16,671,085 |
|
|
17,688,320 |
|
Treasury Judgment Fund |
|
131,964 |
|
|
54,786 |
|
Total Imputed Financing |
$ |
16,803,049 |
|
$ |
17,743,106 |
(17) Intragovernmental Costs and Exchange Revenue:
|
|
FY 2008 |
|
|
FY 2007 | |
|---|---|---|---|---|---|
|
Costs |
|
|
|
|
|
|
Office of Personnel Management |
$ |
46,341,576 |
|
$ |
41,397,487 |
|
General Services Administration |
|
33,786,061 |
|
|
31,470,289 |
|
Social Security Administration |
|
9,844,705 |
|
|
9,517,231 |
|
Federal Retirement Thrift Investment Board |
|
5,268,598 |
|
|
5,012,752 |
|
Department of the Interior |
|
4,465,135 |
|
|
3,617,539 |
|
Department of Homeland Security |
|
1,732,863 |
|
|
— |
|
Department of Transportation |
|
1,126,024 |
|
|
647,169 |
|
Department of Labor |
|
897,485 |
|
|
1,236,202 |
|
Department of the Treasury |
|
475,442 |
|
|
59,612 |
|
Government Printing Office |
|
304,549 |
|
|
253,419 |
|
Department of Health and Human Services |
|
238,531 |
|
|
191,298 |
|
Library of Congress |
|
101,972 |
|
|
38,213 |
|
National Archives and Records Administration |
|
84,577 |
|
|
61,109 |
|
Other agencies |
|
17,204 |
|
|
81,618 |
|
Intragovernmental Costs |
|
104,684,722 |
|
|
93,583,938 |
|
Public costs |
|
246,612,124 |
|
|
242,654,616 |
|
Total Program costs |
$ |
351,296,846 |
|
$ |
336,238,554 |
|
|
FY 2008 |
|
|
FY 2007 | |
|---|---|---|---|---|---|
|
Revenue |
|
|
|
|
|
|
Department of the Army |
$ |
438,375 |
|
$ |
264,260 |
|
Department of the Navy |
|
433,393 |
|
|
261,257 |
|
Department of Homeland Security |
|
331,272 |
|
|
198,946 |
|
Department of Labor |
|
315,251 |
|
|
175,619 |
|
Department of Transportation |
|
216,697 |
|
|
130,628 |
|
Department of Interior |
|
201,752 |
|
|
121,619 |
|
Environmental Protection Agency |
|
201,752 |
|
|
121,619 |
|
Department of Commerce |
|
122,047 |
|
|
73,572 |
|
Department of Justice |
|
74,723 |
|
|
45,044 |
|
United States Postal Service |
|
74,723 |
|
|
45,044 |
|
Department of Agriculture |
|
67,251 |
|
|
40,540 |
|
Department of Veterans Affairs |
|
67,251 |
|
|
40,540 |
|
Securities and Exchange Commission |
|
37,361 |
|
|
22,522 |
|
Federal Maritime Commission |
|
35,399 |
|
|
— |
|
Department of the Treasury |
|
22,417 |
|
|
13,513 |
|
Department of Education |
|
9,125 |
|
|
— |
|
National Aeronautics and Space Administration |
|
— |
|
|
29,724 |
|
Other Agencies |
|
11,817 |
|
|
53 |
|
Intragovernmental earned revenue |
|
2,660,606 |
|
|
1,584,500 |
|
Public earned revenue |
|
2,536,228 |
|
|
2,944,357 |
|
Total Program earned revenue (Note 11) |
|
5,196,834 |
|
|
4,528,857 |
|
Net Cost of Operations |
$ |
346,100,012 |
|
$ |
331,709,697 |
(18) Explanation of Differences between the Statement of Budgetary Resources and the Budget of the United States Government
The EEOC’s budget is allocated to Justice, Opportunity, and Inclusive Workplaces.
Information from the President’s Budget and the Combined Statement of Budgetary Resources for the period ended September 30, 2007 is shown in the following tables. A reconciliation is not presented for the period ended September 30, 2008, since the President’s Budget for this period has not been issued by Congress.
| Dollars in millions |
President’s Budget FY 2007 actual as of 9/30/07 |
|
Statement of Budgetary Resources FY 2007 as of 9/30/07 | Estimated FY 2008 |
Estimated FY 2009 |
|---|---|---|---|---|---|
|
Budgetary resources |
$ 329 |
|
$ 344 |
$ 329 |
$ 342 |
|
Total new obligations |
328 |
|
334 |
329 |
342 |
|
Total outlays |
323 |
|
323 |
330 |
341 |
The differences between the President’s 2007 budget and the Combined Statement of Budgetary Resources for 2007 are shown below:
| Dollars in millions |
|
Budgetary Resources |
|
Obligations |
|
Outlays (g) |
|---|---|---|---|---|---|---|
|
As reported on the Combined Statement of Budgetary Resources for FY 2007 |
|
$ 344 |
|
$ 334 |
|
$ 323 |
|
Revolving fund collections not reported in the budget |
|
(6) |
|
|
|
|
|
Obligations in the revolving fund and no-year fund not included in the President’s budget |
(b) |
|
|
(3) |
|
|
|
Carry-forwards and recoveries in the revolving fund and no-year fund not included in the President’s Budget |
(c) |
(2) |
|
|
|
|
|
Carry-forwards and recoveries in expired funds |
|
(9) |
|
|
|
|
|
Obligations in expired funds |
(e) |
|
|
(3) |
|
|
|
Canceled appropriations |
(f) |
2 |
|
|
|
|
|
As reported in the President’s Budget for FY 2007 |
$ 329 |
|
$ 328 |
|
$ 323 |
|
(a) The EEOC’s revolving fund provides training and charges fees to offset the cost. The collections are reported on the Combined Statement of Budgetary Resources as a part of total budgetary resources, but are not reported in the President’s Budget.
(b) The obligations incurred by the revolving fund and no year fund are not a part of the President’s Budget but are included in total obligations incurred in the Combined Statement of Budgetary Resources.
(c) Revolving funds and no-year funds have carry-overs of unobligated balances and recoveries of obligations that are included in total resources on the Combined Statement of Budgetary Resources, but are not included in the President’s Budget.
(d) Expired funds have carry-overs of unobligated balances and recoveries of obligations that are included in total resources on the Combined Statement of Budgetary Resources until they are canceled, but are not included in the President’s Budget.
(e) New obligations in expired funds are shown as a part of obligations incurred on the Combined Statement of Budgetary Resources, but are not included in the President’s Budget.
(f) Canceled appropriations are not shown in the President’s Budget, but are reported as a reduction to resources in the Combined Statement of Budgetary Resources.
(g) All outlays, whether from current year funds, expired funds, revolving funds or special funds are included in the President’s Budget and on the Combined Statement of Budgetary Resources.
(19) Reconciliation of Net Cost of Operations to Budget as of September 30:
|
|
FY 2008 |
|
|
FY 2007 | |
|---|---|---|---|---|---|
|
Resources used to finance activities |
|
|
|
|
|
|
Budgetary Resources Obligated: |
|
|
|
|
|
|
Obligations incurred |
$ |
334,820,550 |
|
$ |
334,274,135 |
|
Less: Spending authority from offsetting collections |
|
(6,415,500) |
|
|
(5,115,244) |
|
Less: Spending authority from recoveries |
|
(2,535,159) |
|
|
(3,402,528) |
|
Net obligations |
|
325,869,891 |
|
|
325,756,363 |
|
Other Resources: |
|
|
|
|
|
|
Imputed financing from costs absorbed by others |
|
16,803,049 |
|
|
17,743,106 |
|
Total resources used to finance activities |
|
342,672,940 |
|
|
343,499,469 |
|
|
|
|
|
|
|
|
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 provided. |
|
|
|
|
|
|
Resources that fund expenses recognized in prior periods |
|
197,442 |
|
|
622,351 |
|
Resources that finance the acquisition of assets |
|
119,003 |
|
|
65,304 |
|
Principal payments on capital leases |
|
192,512 |
|
|
198,027 |
|
Total resources used to finance items not part of the net cost of operations |
|
|
|
|
|
|
Total resources used to finance the net cost of operations |
|
343,743,677 |
|
|
329,902,170 |
|
|
|
|
|
|
|
|
Components of the net cost of operations that will not require or generate resources in the current period: |
|
|
|
|
|
|
Components requiring or generating resources in future periods: |
|
|
|
|
|
|
Increase in annual leave liability |
|
514,245 |
|
|
403,369 |
|
Increase in accounts receivable from the Public |
|
(22,396) |
|
|
— |
|
Increase in worker’s compensation |
|
— |
|
|
11,710 |
|
Increase in deferred revenue |
|
76,859 |
|
|
— |
|
Total components requiring or generating resources in future periods |
|
568,708 |
|
|
415,079 |
|
Components not requiring or generating resources: |
|
|
|
|
|
|
Depreciation |
|
1,054,161 |
|
|
1,205,074 |
|
Revaluation of assets or liabilities |
|
— |
|
|
10,872 |
|
Other components that do not require or generate resources |
|
733,466 |
|
|
176,502 |
|
Total components of net cost of operations that will not require or generate resources. |
|
|
|
|
|
|
Total components of net cost of operations that will not require or generate resources in the current period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cost of operations |
$ |
346,100,012 |
|
$ |
331,709,697 |
