DOL Annual Report, Fiscal Year
2008
Performance and Accountability Report
Principal Financial Statements and Notes
NOTE 2 — FUNDS WITH U.S. TREASURY
Funds with U.S. Treasury at September 30, 2008 consisted of the following:
Entity Assets
(Dollars in thousands)
Entity
Assets
Unobligated
Balance
Available
Unobligated
Balance
Unavailable
Obligated
Balance
Not Yet
Disbursed
Total
Entity
Assets
Non-entity
Assets
Total
Revolving funds
$13,388
$-
$45,518
$58,906
$-
$58,906
Trust funds
192,605
-
(285,620)
(93,015)
(503)
(93,518)
General funds
2,489,715
1,340,149
5,555,362
9,385,226
-
9,385,226
Other
-
-
-
-
78,316
78,316
$2,695,708
$1,340,149
$5,315,260
$9,351,117
$77,813
$9,428,930
Funds with U.S. Treasury at September 30, 2007 consisted of the following:
Entity Assets
(Dollars in thousands)
Unobligated
Balance
Available
Unobligated
Balance
Unavailable
Obligated
Balance
Not Yet
Disbursed
Total
Entity
Assets
Non-entity
Assets
Total
Revolving funds
$9,254
$-
$37,715
$46,969
$-
$46,969
Trust funds
172,261
-
(28,292)
143,969
(115)
143,854
General funds
2,415,351
1,604,964
5,692,427
9,712,742
-
9,712,742
Other
-
-
-
-
79,387
79,387
$2,596,866
$1,604,964
$5,701,850
$9,903,680
$79,272
$9,982,952
The negative fund balances reported as of September 30, 2008 and 2007 relate to the Unemployment Trust Fund (UTF) and are the result of the timing of processing the investments and redemptions of UTF. The investments and redemptions relating to the last business day of the month are not processed until the first day of the next month. This could result in a negative cash position for the preceding business day if the disbursements are greater than the receipts to the fund.
Unobligated Balance Available at September 30, 2008 includes $378 million of funds apportioned for use in the subsequent year.
NOTE 3 — INVESTMENTS
Investments at September 30, 2008 consisted of the following:
(Dollars in thousands)
Face
Value
Premium
(Discount)
Interest
Receivable
Net
Value
Market
Value
Unemployment Trust Fund
Non-marketable
Special issue U.S. Treasury Bonds
4.875% maturing June 30, 2009
3,304,955
-
40,279
3,345,234
3,304,955
5.000% maturing June 30, 2009
11,000,000
-
137,500
11,137,500
11,000,000
5.000% maturing June 30, 2010
24,855,747
-
310,697
25,166,444
24,855,747
4.500% maturing June 30, 2010
5,000,000
-
56,250
5,056,250
5,000,000
4.500% maturing June 30, 2011
28,271,737
-
318,057
28,589,794
28,271,737
72,432,439
-
862,783
73,295,222
72,432,439
Panama Canal Commission Compensation Fund
Marketable
U.S. Treasury Notes
3.500% to 4.750% various maturities
70,089
5
1,166
71,260
71,247
U.S. Treasury Bonds
11.750% various maturities
5,163
472
228
5,863
5,729
75,252
477
1,394
77,123
76,976
Longshore and Harbor Workers' Compensation Act Trust Fund
Non-marketable
One Day Certificate
0.330% maturing October 1, 2008
61,905
-
-
61,905
61,905
District of Columbia Workmen's Compensation Act Trust Fund
Non-marketable
One Day Certificate
0.330% maturing October 1, 2008
5,160
-
-
5,160
5,160
Energy Employees Occupational Illness Compensation Fund
Non-marketable
One Day Certificate
0.330% maturing October 1, 2008
125,265
-
-
125,265
125,265
$72,700,021
$477
$864,177
$73,564,675
$72,701,745
Entity investments
$72,590,369
$477
$862,871
$73,453,717
$72,592,093
Non-entity investments
109,652
-
1,306
110,958
109,652
$72,700,021
$477
$864,177
$73,564,675
$72,701,745
Investments at September 30, 2007 consisted of the following:
(Dollars in thousands)
Face
Value
Premium
(Discount)
Interest
Receivable
Net
Value
Market
Value
Unemployment Trust Fund
Non-marketable
U.S. Treasury Certificates of Indebtedness
5.000% maturing June 30, 2008
8,208,313
-
64,004
8,272,317
8,208,313
Special issue U.S. Treasury Bonds
4.625% maturing June 30, 2008
10,879,148
-
125,790
11,004,938
10,879,148
4.875% maturing June 30, 2008
10,000,000
-
121,875
10,121,875
10,000,000
4.875% maturing June 30, 2009
9,980,072
-
121,632
10,101,704
9,980,072
5.000% maturing June 30, 2009
11,000,000
-
137,500
11,137,500
11,000,000
5.000% maturing June 30, 2010
24,855,747
-
310,697
25,166,444
24,855,747
74,923,280
-
881,498
75,804,778
74,923,280
Panama Canal Commission Compensation Fund
Marketable
U.S. Treasury Bill
Maturing November 15, 2007
7,170
(43)
-
7,127
7,138
U.S. Treasury Notes
3.625% to 5.625% various maturities
43,152
(142)
753
43,763
43,418
U.S. Treasury Bonds
10.375% to 11.750% various maturities
27,078
1,013
1,080
29,171
28,054
77,400
828
1,833
80,061
78,610
Longshore and Harbor Workers' Compensation Act Trust Fund
Non-marketable
One Day Certificate
3.99% maturing October 1, 2007
69,979
-
16
69,995
69,979
District of Columbia Workmen's Compensation Act Trust Fund
Non-marketable
One Day Certificate
3.99% maturing October 1, 2007
6,585
-
1
6,586
6,585
Energy Employees Occupational Illness Compensation Fund
Non-marketable
One Day Certificate
3.99% maturing October 1, 2007
53,062
-
12
53,074
53,062
$75,130,306
$828
$883,360
$76,014,494
$75,131,516
Entity investments
$75,022,470
$828
$882,091
$75,905,389
$75,023,680
Non-entity investments
107,836
-
1,269
109,105
107,836
$75,130,306
$828
$883,360
$76,014,494
$75,131,516
NOTE 4 — ACCOUNTS RECEIVABLE, NET OF ALLOWANCE
Accounts receivable at September 30, 2008 consisted of the following:
(Dollars in thousands)
Gross
Receivables
Allowance
Net
Receivables
Entity intra-governmental assets
Due for UCFE and UCX benefits
$292,833
$-
$292,833
Due for workers' compensation benefits
3,771,775
-
3,771,775
Other
12,269
-
12,269
4,076,877
-
4,076,877
Entity assets
State unemployment taxes
823,667
(639,682)
183,985
Due from reimbursable employers
502,342
(28,540)
473,802
Benefit overpayments
1,935,897
(1,678,795)
257,102
Other
13,126
(2,127)
10,999
3,275,032
(2,349,144)
925,888
Non-entity assets
Fines and penalties
76,778
(32,605)
44,173
Backwages
16,785
(10,418)
6,367
93,563
(43,023)
50,540
3,368,595
(2,392,167)
976,428
$7,445,472
$(2,392,167)
$5,053,305
Accounts receivable at September 30, 2007 consisted of the following:
(Dollars in thousands)
Gross
Receivables
Allowance
Net
Receivables
Entity intra-governmental assets
Due for UCFE and UCX benefits
$302,723
$-
$302,723
Due for workers' compensation benefits
3,754,382
-
3,754,382
Other
11,598
-
11,598
4,068,703
-
4,068,703
Entity assets
State unemployment taxes
922,643
(646,571)
276,072
Due from reimbursable employers
489,269
(30,077)
459,192
Benefit overpayments
1,907,770
(1,656,975)
250,795
Other
8,864
(1,727)
7,137
3,328,546
(2,335,350)
993,196
Non-entity assets
Fines and penalties
92,805
(31,820)
60,985
Backwages
10,839
(4,797)
6,042
103,644
(36,617)
67,027
3,432,190
(2,371,967)
1,060,223
$7,500,893
$(2,371,967)
$5,128,926
NOTE 5 — PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION
Property, plant and equipment at September 30, 2008 consisted of the following:
(Dollars in thousands)
Cost
Accumulated
Depreciation
/Amortization
Net
Book
Value
Structures, facilities and improvements
Structures and facilities
$1,067,982
$(437,047)
$630,935
Improvements to leased facilities
423,580
(233,798)
189,782
1,491,562
(670,845)
820,717
Furniture and equipment
Equipment held by contractors
166,504
(159,612)
6,892
Furniture and equipment
51,777
(36,132)
15,645
218,281
(195,744)
22,537
ADP software
206,369
(92,110)
114,259
Construction-in-progress
90,233
-
90,233
Land
93,253
-
93,253
$2,099,698
$(958,699)
$1,140,999
Property, plant and equipment at September 30, 2007 consisted of the following:
(Dollars in thousands)
Cost
Accumulated
Depreciation
/Amortization
Net
Book
Value
Structures, facilities and improvements
Structures and facilities
$1,014,233
$(409,570)
$604,663
Improvements to leased facilities
427,769
(228,257)
199,512
1,442,002
(637,827)
804,175
Furniture and equipment
Equipment held by contractors
168,049
(161,300)
6,749
Furniture and equipment
54,067
(36,653)
17,414
222,116
(197,953)
24,163
ADP software
190,014
(74,433)
115,581
Construction-in-progress
78,651
-
78,651
Land
93,249
-
93,249
$2,026,032
$(910,213)
$1,115,819
NOTE 6 — ADVANCES
Advances at September 30, 2008 and 2007 consisted of the following:
(Dollars in thousands)
2008
2007
Advances to states for UI benefit payments
$706,556
$509,848
Advances to grantees and contractors to finance future DOL program expenditures
35,947
29,504
Other
13,907
2,213
$756,410
$541,565
NOTE 7 — NON-ENTITY ASSETS
Non-entity assets consisted of the following at September 30, 2008 and 2007:
(Dollars in thousands)
2008
2007
Intra-governmental
Funds with U.S. Treasury
$77,813
$79,272
Investments
110,958
109,105
188,771
188,377
Accounts receivable, net of allowance
50,540
67,027
$239,311
$255,404
NOTE 8 — ADVANCES FROM U.S. TREASURY
Advances from U.S. Treasury to the Black Lung Disability Trust Fund during 2008 consisted of the following:
(Dollars in thousands)
Balance at
September 30, 2007
Net
Borrowing
Balance at
September 30, 2008
Intra-governmental
Borrowing from the Treasury
$10,057,557
$426,000
$10,483,557
Advances from U.S. Treasury to the Black Lung Disability Trust Fund during 2007 consisted of the following:
(Dollars in thousands)
Balance at
September 30, 2006
Net
Borrowing
Balance at
September 30, 2007
Intra-governmental
Borrowing from the Treasury
$9,631,557
$426,000
$10,057,557
These advances were retired on October 7, 2008 under the refinancing agreement authorized by the enactment of the Energy Improvement and Extension Act of 2008 on October 3, 2008. (See Note 23)
NOTE 9 — FUTURE WORKERS' COMPENSATION BENEFITS
DOL’s liability for future workers’ compensation benefits at September 30, 2008 and 2007 consisted of the following:
(Dollars in thousands)
2008
2007
Projected gross liability of the Federal governmentfor future FECA benefits
$27,589,632
$26,306,065
Less liabilities attributed to other agencies:
U.S. Postal Service
(9,543,798)
(8,923,407)
Department of Navy
(2,685,911)
(2,694,074)
Department of Army
(1,980,257)
(1,977,872)
Department of Veterans Affairs
(1,905,472)
(1,826,564)
Department of Air Force
(1,395,449)
(1,381,158)
Department of Transportation
(985,336)
(949,465)
Department of Homeland Security
(1,795,351)
(1,683,569)
Tennessee Valley Authority
(532,499)
(538,096)
Department of Treasury
(593,196)
(573,038)
Department of Agriculture
(832,013)
(775,281)
Department of Justice
(1,136,570)
(1,046,480)
Department of Interior
(692,389)
(659,333)
Department of Defense, Other
(800,883)
(777,041)
Department of Health and Human Services
(282,517)
(275,776)
Social Security Administration
(297,932)
(271,981)
General Services Administration
(163,826)
(164,883)
Department of Commerce
(169,580)
(164,416)
Department of Energy
(104,734)
(105,231)
Department of State
(68,892)
(68,078)
Department of Housing & Urban Development
(84,529)
(81,779)
Department of Education
(16,554)
(16,186)
National Aeronautics and Space Administration
(63,977)
(64,060)
Environmental Protection Agency
(44,615)
(39,786)
Small Business Administration
(27,061)
(26,321)
Office of Personnel Management
(22,139)
(21,020)
National Science Foundation
(1,198)
(1,182)
Nuclear Regulatory Commission
(7,059)
(6,833)
Agency for International Development
(23,137)
(23,528)
Other
(569,922)
(533,779)
(26,826,796)
(25,670,217)
$762,836
$635,848
Projected liability of the Department of Labor for future FECA benefits
FECA benefits not chargeable to other Federal agencies payable by
DOL's Federal Employees' Compensation Act Special Benefit Fund
$473,892
$346,299
FECA benefits due to eligible workers of DOL and Job Corps enrollees
235,382
237,920
FECA benefits due to eligible workers of the Panama Canal Commission
53,562
51,629
$762,836
$635,848
NOTE 10 — ACCRUED BENEFITS
Accrued benefits at September 30, 2008 and 2007 consisted of the following:
(Dollars in thousands)
2008
2007
State regular and extended unemployment benefits payable
$966,415
$1,053,055
Federal extended unemployment benefits payable
39,144
35,945
Federal emergency unemployment benefits payable, 2008
324,534
-
Federal temporary extended unemployment benefits payable
23,971
23,641
Federal emergency unemployment benefits payable, other
46,739
44,950
Federal employees' unemployment benefits payable
25,431
30,432
Federal employees' unemployment benefits for existing
claims due in the subsequent year
202,759
123,576
Total unemployment benefits payable
1,628,993
1,311,599
Black lung disability benefits payable
40,003
43,277
Federal employees' disability and 10(h) benefits payable
76,952
65,937
Energy employees occupational illness compensation benefits payable
24,712
24,006
Longshore and harbor workers disability benefits payable
4,571
3,655
District of Columbia disability benefits payable
345
298
$1,775,576
$1,448,772
NOTE 11 — OTHER LIABILITIES
Other liabilities at September 30, 2008 and 2007 consisted of the following current liabilities:
(Dollars in thousands)
2008
2007
Intra-governmental
Accrued benefits
$13,055
$10,385
Unearned FECA assessments
52,724
51,192
Non-entity receipts due to U.S. Treasury
42,803
59,615
Amounts held for the Railroad Retirement Board
110,455
108,990
Advances from other Federal agencies
300
750
Total intra-governmental
219,337
230,932
Accrued payroll and benefits
59,043
48,280
Due to Backwage recipients
84,925
85,583
Unearned assessment revenue
41,217
41,965
Deposit and clearing accounts
1,127
1,216
Readjustment allowances and other Job Corps liabilities
54,537
83,330
240,849
260,374
$460,186
$491,306
NOTE 12 — LIABILITIES NOT COVERED BY BUDGETARY RESOURCES
Liabilities not covered by budgetary resources at September 30, 2008 and 2007 consisted of the following:
(Dollars in thousands)
2008
2007
Intra-governmental
Advances from U.S. Treasury
$10,483,557
$10,057,557
Future workers' compensation benefits
231,965
237,920
Accrued annual leave
105,763
96,014
Readjustment allowances and other Job Corps liabilities
54,537
83,330
392,265
417,264
$10,875,822
$10,474,821
NOTE 13 — CONTINGENCIES
The Department is involved in various lawsuits incidental to its operations. Judgments resulting from litigation against the Department are generally paid by the Department of Justice. In the opinion of management, the ultimate resolution of pending litigation will not have a material effect on the Department’s financial position.
NOTE 14 — PENSION EXPENSE
Pension expense in 2008 consisted of the following:
(Dollars in thousands)
Employer
Contributions
Costs
Imputed
by OPM
Total
Pension
Expense
Civil Service Retirement System
$22,251
$36,925
$59,176
Federal Employees' Retirement System
103,805
-
103,805
Thrift Savings Plan
39,286
-
39,286
$165,342
$36,925
$202,267
Pension expense in 2007 consisted of the following:
