The Office of Management and Budget (OMB) Circular Number A-136 was used as guidance for the preparation of the accompanying financial statements. The EEOC prepares five financial statements: the Consolidated Balance Sheets, Consolidated Statements of Net Cost of Operations, Consolidated Statements of Changes in Net Position, Consolidated Statements of Budgetary Resources, and Consolidated Statements of Financing. The purpose of each statement, an explanation of any significant amounts, and an explanation of significant fluctuations between FY 2005 and FY 2004 are provided next.
The Consolidated Balance Sheets present amounts that are owned or managed by the EEOC (assets), amounts owed (liabilities), and the net position of the agency, divided between cumulative results of operations and unexpended appropriations. Intra-governmental accounts payable increased in FY 2005 because EEOC owed the General Services Administration $1,258,875 for field telephone service. The cumulative result of operations shows a negative balance of $24 million. This is due to amounts accumulated over the years by EEOC from financing sources less expenses and losses and an amount representing liabilities for such items as accrued leave and actuarial liabilities not covered by available budgetary resources.
The Consolidated Statements of Net Cost of Operations present the gross cost incurred by major programs less any revenue earned. In FY 2005, the total Net Cost of Operations increased by 1%. The allocation of costs for FY 2005 shows that resources used for Justice and Opportunity increased by 2%, with a decrease of 1% for Inclusive Workplace. This is due to a change in the methodology for capturing costs. During FY 2004, the EEOC used hours worked by employees, as reported by employees through a survey instrument, to capture costs by major programs. This survey was completed twice during the fiscal year. For FY 2005, we used the Federal Personnel Payroll System to capture employees' biweekly hours worked by major program element. This allowed EEOC to routinely accumulate and report more accurate costs.
The Consolidated Statements of Changes in Net Position represent the change in the net position for FY 2005 and FY 2004 from cost of operations, appropriations received and used, net of rescissions, and the financing of some costs by other Government agencies. The cumulative results of operations increased by $1.4 million, primarily because of an increase in the net cost of operations. Most of this was for employee salaries and benefits.
The Combined Statements of Budgetary Resources shows how budgetary resources were made available and the status of those resources at the end of the fiscal year. Our budgetary resources increased by $1 million in FY 2005. Appropriations received increased by $2.8 million; authority from collections and beginning balances decreased by $1.8 million; and recoveries, rescissions, and cancelled appropriations decreased by $0.2 million. Resources that remained unobligated at year-end were $9.6 million and $9.8 million in FY 2005 and FY 2004, respectively. These unobligated amounts are from appropriation authority from prior years that are no longer available for obligation.
The Consolidated Statement of Financing is presented to explain the difference between budgetary- and accrual-based accounting. Total resources available increased by $1.6 million; however, resources used to purchase assets and reduce liabilities were lower in FY 2005 by $3.5 million, resulting in a $5.1 million increase from FY 2004 of resources used in operations. The cost of operations that did not require current resources decreased by $0.7 million. Adding these together yields an increase in the net cost of operations of $4.4 million.
The chart below displays a 6-year historical view of the EEOC's use of resources. On average, the EEOC's total budget level obligated has increased by 1%. Compensation and benefits continue to consume the majority of the budget at 70%, including a 4% increase in average salary and benefit costs for full-time equivalent (FTE) employees from FY 2004. The second and third items that continue to consume major portions of the budget are State and Local Programs at 10% and rent at 9%. Rent is included in nonpayroll costs.
This page was last modified on December 2, 2005
