2000 Financial Report                                                           2000
                                     ...
U.S. Census Bureau
                               2000 Financial Report

                               THE MISSION
    EC...
2000 Financial Report                              2000
                                                   Issued February...
Message           The U.S. Census Bureau performs large surveys and censuses that provide high
            quality statist...
Contents
     Mission
     A Message From the Chief Financial Officer


2    OVERVIEW: GENERAL INFORMATION

2    General I...
OVERVIEW: GENERAL INFORMATION




Overview: General Information

     General Information                           The va...
OVERVIEW: GENERAL INFORMATION




board to monitor, evaluate, and report          the Periodic Censuses and Programs appro...
OVERVIEW: GENERAL INFORMATION




that produces a wide range of information            With the adoption of the Constituti...
OVERVIEW: GENERAL INFORMATION




provider of timely, relevant, and quality data        Demographics
                     ...
OVERVIEW: GENERAL INFORMATION




(e.g., definitions of race and ethnicity,            Reimbursable Work
                 ...
OVERVIEW: ACCOMPLISHMENTS




Overview: Accomplishments,
Performance Measures, and Costs
                                 ...
OVERVIEW: ACCOMPLISHMENTS




management team in the 520 local census             The Bureau found it challenging to

offi...
OVERVIEW: ACCOMPLISHMENTS




was received. They also visited new            releasing apportionment counts by Decem-
hous...
OVERVIEW: ACCOMPLISHMENTS




statistics and incorporates its vast amount        Reimbursable Work
                       ...
OVERVIEW: ACCOMPLISHMENTS




Provide Accurate, Timely, and Relevant Statistical Data

                                   ...
OVERVIEW: ACCOMPLISHMENTS




     Ensuring Financial Systems              new performance measures have been
     Are Yea...
FINANCIAL MANAGEMENT INFORMATION




Financial Management Information

     Financial Management                     Branc...
FINANCIAL MANAGEMENT INFORMATION




     Financial Information
                                                  undelive...
FINANCIAL MANAGEMENT INFORMATION




     Converting Payments to Electronic
                                              ...
FINANCIAL STATEMENTS AND FOOTNOTES




Financial Statements
and Footnotes

U.S. Department of Commerce
Economics and Stati...
FINANCIAL STATEMENTS AND FOOTNOTES




U.S. Department of Commerce
Economics and Statistics Administration
U.S. Census Bur...
FINANCIAL STATEMENTS AND FOOTNOTES




U.S. Department of Commerce
Economics and Statistics Administration
U.S. Census Bur...
FINANCIAL STATEMENTS AND FOOTNOTES




U.S. Department of Commerce
Economics and Statistics Administration
U.S. Census Bur...
FINANCIAL STATEMENTS AND FOOTNOTES




U.S. Department of Commerce
Economics and Statistics Administration
U.S. Census Bur...
FINANCIAL STATEMENTS AND FOOTNOTES




Financial Footnotes

     Note 1. Summary of Significant
                          ...
FINANCIAL STATEMENTS AND FOOTNOTES




reimbursable statistical work the BOC           elected individuals represent. Cens...
FINANCIAL STATEMENTS AND FOOTNOTES




processing systems, electronic information       accounting policies, when applicab...
FINANCIAL STATEMENTS AND FOOTNOTES




other governmental and nongovernmental        of the BOC, which will be paid by oth...
FINANCIAL STATEMENTS AND FOOTNOTES




accounts receivable that are not available to         The BOC also records as accou...
FINANCIAL STATEMENTS AND FOOTNOTES




      Property and Equipment
                                                 estim...
FINANCIAL STATEMENTS AND FOOTNOTES




occurred. Liabilities for which an appropria-          Intragovernmental Deferred R...
FINANCIAL STATEMENTS AND FOOTNOTES




     FECA Liability
                                                benefits includ...
FINANCIAL STATEMENTS AND FOOTNOTES




withholding and the matching funds is             the responsibility of the U.S. Of...
FINANCIAL STATEMENTS AND FOOTNOTES




for pensions is received after retirement,           Unexpended Appropriations.
emp...
FINANCIAL STATEMENTS AND FOOTNOTES




certain assets not providing budgetary                    Note 2. Fund Balances
   ...
FINANCIAL STATEMENTS AND FOOTNOTES




      Note 3. Accounts                       receivables billed to employees and in...
FINANCIAL STATEMENTS AND FOOTNOTES




      The BOC estimates the allowance for                 Note 4. Inventories and
 ...
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2000financial Reports

  1. 1. 2000 Financial Report 2000 Issued February 2001 U.S. Department of Commerce USCENSUSBURE AU Economics and Statistics Administration U.S. CENSUS BUREAU Helping You Make Informed Decisions
  2. 2. U.S. Census Bureau 2000 Financial Report THE MISSION ECONOMICS AND STATISTICS The mission of the U.S. Census Bureau is to ADMINISTRATION be the preeminent collector and provider of timely, relevant, and quality data about the Economics people and economy of the United States. and Statistics Administration OUR GOAL J. Lee Price To provide the best mix of timeliness, Acting Under Secretary relevancy, quality, and cost for the data for Economic Affairs we collect and services we provide. Our Strategies: 1. Greater Customer Satisfaction— What our customers want must dictate what we do. 2. Greater Productivity— Improved productivity results in lower costs, greater timeliness, and higher U.S. CENSUS BUREAU quality. William G. Barron, Jr. 3. Better Public Perception Acting Director and Cooperation — By giving attention to public needs Nancy A. Potok and concerns, we improve the public’s Principal Associate Director perception of the Census Bureau and and Chief Financial Officer increase public cooperation with our censuses and surveys. 4. Develop a More Diverse, Effective, and Skilled Work Force— We want to benefit from diversity, strengthen relationships with employees, and use highly productive teams.
  3. 3. 2000 Financial Report 2000 Issued February 2001 U.S. Department of Commerce Donald L. Evans, Secretary Economics and Statistics Administration J. Lee Price, Acting Under Secretary for Economic Affairs U.S. CENSUS BUREAU William G. Barron, Jr., Acting Director
  4. 4. Message The U.S. Census Bureau performs large surveys and censuses that provide high quality statistics about the American people and economy. Our business activities can From the be divided into four categories: decennial censuses; demographic programs; economic CHIEF programs; and reimbursable work, mainly for other federal agencies. During FY2000, in addition to our ongoing surveys, we conducted the Decennial Census of Population and FINANCIAL Housing (Census 2000), our largest and most complex activity. OFFICER The results of Census 2000 will be used to apportion seats in the U.S. House of Representatives, draw congressional and state legislative districts, and form the basis for the distribution of $2 trillion of anticipated federal-program funds over the next decade. The costs of conducting Census 2000 are reflected in our financial statements. Census 2000 was a tremendous operational success. We completed every planned operation on schedule, achieved higher than expected mail response rates, met our very ambitious hiring goals, and were under budget. We delivered the apportionment numbers to the President on December 28, 2000, 3 days ahead of our statutory deadline. In addition, we believe that Census 2000 was successful in improving coverage of the population and in reducing undercounts for some population groups compared to the 1990 census. No less important than Census 2000, the Census Bureau conducts more than 200 demographic and economic surveys annually to collect official statistics on the current state of the economy, foreign trade, income and poverty, population, and housing charac- teristics on monthly, quarterly, and annual bases. For example, Census Bureau economic surveys provide a majority of the information used by the government to update Gross Domestic Product accounts. About 100 reimbursable surveys are conducted each year on behalf of other federal agencies covering a variety of critical topics. In addition, every 5 years, we conduct censuses of major sectors of the Nation’s economy as well as state and local governments. The Census Bureau supports the Department of Commerce’s mission to promote job creation, economic growth, sustainable development, and improved living standards for all Americans. We partner with businesses, universities, communities, and other gov- ernmental agencies to build for the future. The Census Bureau helps to promote U.S. competitiveness by providing an unrivaled information base used for effective manage- ment and stewardship of the Nation’s resources and assets. The Census Bureau continued in FY2000 to improve its financial control structure. Final modifications were made to financial and budgetary systems to make them Year 2000 compliant. Commerce Administrative Management System (CAMS) management and audit reports were further refined this year to support financial and audit activities. In addition, while supporting the massive field operations of the decennial census, the Finance Division improved its efficiency and effectiveness. The Census Bureau prepares its financial statements in conformity with generally accepted accounting principles for the federal government. We look forward to additional success and continued improvement in FY2001. Nancy A. Potok Chief Financial Officer
  5. 5. Contents Mission A Message From the Chief Financial Officer 2 OVERVIEW: GENERAL INFORMATION 2 General Information 3 Major Programs 7 OVERVIEW: ACCOMPLISHMENTS 7 Accomplishments, Performance Measures, and Costs 13 FINANCIAL MANAGEMENT INFORMATION 13 Financial Management Organization 15 Limitations of the Financial Statements 16 FINANCIAL STATEMENTS AND FOOTNOTES 16 Consolidated Balance Sheet 17 Consolidating Statement of Net Cost 18 Consolidating Statement of Changes in Net Position 19 Consolidated Statement of Budgetary Resources 20 Consolidated Statement of Financing 21 Financial Footnotes 42 Required Supplementary Information 46 Other Accompanying Information 47 AUDITOR’S REPORTS 47 Independent Auditor’s Report on the Financial Statements 49 Independent Auditor’s Report on Internal Control 61 Independent Auditor’s Report on Compliance With Laws and Regulations
  6. 6. OVERVIEW: GENERAL INFORMATION Overview: General Information General Information The vast array of data the BOC The U.S. Census Bureau (BOC) is the collects describes the Nation’s population, largest statistical agency of the federal housing, businesses, governmental financ- government. It conducts: es, foreign trade, and other vital character- • The constitutionally mandated istics. Its analysis forms the basis for (Article 1, Section 2) Census of Population fiscal and policy decisions by the Adminis- and Housing every 10 years for apportion- tration; the Congress; business leaders; ing seats in the House state, local, and tribal of Representatives. planners; trade • Eight census- associations; and es related to econom- academicians. ic entities and state The BOC is and local govern- composed of four ments every 5 years. major program areas: • More than 100 demographic and Decennial, Economic, Demographic, and economic surveys on monthly, quarterly, Reimbursable Programs. Statistical re- and annual bases. search, financial, administrative, and Our mission and goal support the information technology divisions support Department of Commerce’s (DOC) mission the work of these program areas. In to promote job creation, economic growth, addition, a corps of field representatives sustainable development, and improved carry out the direct collection of survey living standards by working in partnership data through 12 regional offices across the with businesses, universities, communities, United States. We operate three computer- and workers. We do this through decennial assisted telephone centers. Our National censuses, quinquennial economic censuses, Processing Center in Jeffersonville, Indiana, and numerous economic and demographic handles data processing, warehousing, surveys that measure changing individual publication distribution, and geographic and household demographics and the eco- services. Also, a Census Monitoring Board nomic condition of the Nation. was created as a nonpartisan, independent 2 2000 FINANCIAL REPORT
  7. 7. OVERVIEW: GENERAL INFORMATION board to monitor, evaluate, and report the Periodic Censuses and Programs appro- on the planning and implementation of priation, is the Nation’s oldest and most Census 2000. comprehensive source The FY2000 Financial The BOC’s headquarters of population and housing Report of the Census is outside Washington, DC, information. Census 2000 Bureau is a compilation of in Suitland, Maryland, which is the 22nd decennial enu- descriptions of the Bureau’s is located in Prince George’s meration in our Nation’s programs, a narrative of County. Our mission is to history. As provided for the accomplishments of the be the preeminent collector in the Constitution, the Bureau, and statements on and provider of timely, U.S. Government uses our the use of Bureau financial relevant, and quality data resources. In sum, this count of the population about the people and report is designed to in each state to apportion economy of the United provide a complete picture the seats in the House States. Our goal is to pro- of the Bureau’s activities for of Representatives. The vide our customers with FY2000 - with an emphasis decennial census data the best mix of timeliness, on the financial aspect. are also used in drawing relevancy, quality, and cost However, the presentation congressional and state for the data we collect and of the financial statements legislative districts and for services we provide. alone would make for a the annual distribution of one-sided view of the billions of dollars of federal Bureau. We have included Major Programs funds. The data will be the “so what” factor - what The Bureau’s activities used by state and local did we and the American can be categorized in four governments to make a public’s gain as a result of different product lines: wide variety of decisions the Bureau’s programs. decennial censuses; econom- to improve their commu- This is the complete picture ic statistics; demographic nities. They will also of what was paid for versus statistics; and reimbursable be used as the basis for what was received. work, most often for other research, business plan- federal agencies. ning, and investment. The decennial The decennial census, funded through census is the only data collection operation 2000 FINANCIAL REPORT 3
  8. 8. OVERVIEW: GENERAL INFORMATION that produces a wide range of information With the adoption of the Constitution at the smallest geographic levels. Census in 1787 came the first census of the popu- 2000 has made an unprecedented effort to lation in 1790. At that time, the census count every household and person. It built was conducted through the offices of the partnerships at every stage of the process, U.S. Marshall. A census office was estab- made participation for respondents simple, lished in time for the 1880 census with used cutting-edge officers appointed technology, by the President. employed special The Census Bureau, techniques to however, was not improve coverage established as a ranging from permanent entity automating until 1902. operations to In addition re-engineering the address list developing to an enumeration of the population, the and incorporating it with the geographic government began to collect statistical database, and greatly expanded the market- information on other aspects of American ing and promotion programs. life, including a survey on manufacturing (1810) and agriculture (1840). In 1954, Title Decennial 13 of the U.S. Code was adopted, which “Representatives and direct Taxes shall codified the, by then, numerous activities be apportioned among the several States of the Census Bureau. In addition to which may be included within this Union, putting into one law the authority for the according to their respective Numbers... many censuses for which the Census The actual Enumeration shall be made Bureau is responsible, that law confirms the within three Years after the first Meeting principle of confidentiality of respondents’ of the Congress of the United States, and information. That principle is paramount within every subsequent Term of ten Years, in the operations of the Bureau’s programs. in such Manner as they shall by Law direct.” The mission of the U.S. Census Bureau United States Constitution is to be the preeminent collector and Article 1, Section 2 4 2000 FINANCIAL REPORT
  9. 9. OVERVIEW: GENERAL INFORMATION provider of timely, relevant, and quality data Demographics Important demographic program about the people and the economy of the efforts include: the preparation of official United States. It is the use to which the population estimates and projections; the information is put that has the most pro- collection of survey data for official statis- found impact on the country. Many key tics on income, poverty, families, race and components of the Bureau’s economic data ethnic groups; and the Nation’s housing form the basis of the Federal Reserve’s characteristics. Our decisions about interest Survey of Income and rate levels. The results Program Participation of the 2000 decennial (SIPP) provides other census will form the government agencies basis for the distribution with the data to evalu- of $2 trillion of anticipat- ate the effects of their ed federal programs’ aid programs upon the population. SIPP also over the next decade. provides insight into the causes of changes in an individual’s economic situation. This Economics The diverse activities of this program type of information is invaluable to policy produce information critical to the econom- makers who work to make government ic functioning of the United States and entitlement programs, such as welfare, as its citizens. Data, such as housing starts, effective as possible. retail sales, wholesale trade, merchandise The collection and analysis of housing imports and exports, mining, and manufac- and socioeconomic data also support the turing, are collected each month. These decennial census program. Federal govern- data support several leading indicators of ment agencies use our program data to national economic performance that shape allocate billions of dollars in federal funds the decisions of Wall Street investors and every year. The program data also set the the Federal Reserve Board. definitions and standards used throughout the federal government for policy decisions 2000 FINANCIAL REPORT 5
  10. 10. OVERVIEW: GENERAL INFORMATION (e.g., definitions of race and ethnicity, Reimbursable Work Work performed under reimbursable metropolitan statistical areas, and poverty). agreements with other federal agencies The demographic programs continued to (including the Departments of Labor, Health develop several major initiatives in the and Human Services, Housing and Urban fiscal year. We are working on the Continu- Development, and Justice) ous Measurement comprises a large part Program, which will of our activities. For provide annual pop- example, data from our ulation and housing Consumer Expenditures profiles. These are Survey are an important data we now obtain element of the Consumer only every 10 years Price Index, which the from the decennial U.S. Bureau of Labor Statistics calculates census long form. The main components and publishes. The Current Population of the Continuous Measurement Program Survey gathers data to calculate employ- are the American Community Survey and ment and unemployment statistics. Other the Small Area Income and Poverty Esti- major subject areas include health care, mates program, which produce current education, and criminal justice. estimates of population and housing characteristics derived from statistical models and provide more timely, accurate, and relevant data consistent with perfor- mance plan goals. 6 2000 FINANCIAL REPORT
  11. 11. OVERVIEW: ACCOMPLISHMENTS Overview: Accomplishments, Performance Measures, and Costs Ten years ago, the Strategic Planning, Goals, Objectives, Congress had before it a and Performance Measures The Census Bureau’s business is large- request for a supplemen- scale surveys and censuses. Our FY2000 tal appropriation because accomplishments support the 1990 DOC’s strategic planning, census goals, and objectives. In operations particular, the Census supports had not the FY2000 DOC priority and unfolded as expected and initiatives for enhancing the as budgeted. The FY2000 U.S. statistical infrastructure. program costs were They include: $3,977,693,000. This • Conduct an accurate, means the Bureau was able timely, relevant, and cost- to hold costs to less than effective decennial census what was appropriated. (Census 2000). This caps a year of succes- • Provide accurate, timely, and ses for Census 2000. As stated in a relevant statistical data (includes letter to the appropriations committee, demographic and economic programs). the Bureau was able to avoid at least $305 million in costs during FY2000. While Census 2000 the analysis of the exact elements that Every major operation in Census 2000 contributed to this savings has not yet performed better than predicted by the been completed, two factors weigh heavily. General Accounting Office, by the Census The first is the 67 percent mail response Monitoring Board, and in a few important rate, which was substantially higher than instances, by the Census Bureau itself. the original expectation (61 percent) and This year, the mail response rate improved higher than the 65 percent rate in 1990. over the previous census, arresting a This reverses a three decade-long decline in decades-long decline in response. We have mail response rates. The second factor is continually been on or ahead of schedule. the better than expected quality of the field 2000 FINANCIAL REPORT 7
  12. 12. OVERVIEW: ACCOMPLISHMENTS management team in the 520 local census The Bureau found it challenging to offices coupled with the excellent perfor- attract and recruit the vast number of mance of a number of automated systems, employees required to conduct the census. including the payroll and administration Difficulties in recruitment included a robust system (PAMS/ADAMS). economy, limited labor pools in remote The first enumeration of Census 2000 areas, and competition from the private took place in Alaska in January 2000 and, sector. The Bureau overcame these diffi- by Census Day, 98 million culties and successfully questionnaires were in the performed another census. mail to 83 percent of the Independent of the Nation’s households. An nonresponse follow-up additional 22 million forms operation, enumerators also were hand delivered to contacted 314,000 house- households that did not have street name holds to conduct the Accuracy and Cover- and house number addresses. Five out of age Evaluation (A.C.E.), a quality check six households nationwide received the survey. Its results will be matched against short form, the rest received the long form. those of Census 2000 to develop the most The completed questionnaires were pro- accurate numbers possible for projections cessed at four state-of-the-art data capture or estimates for all nonapportionment facilities located in different regions of purposes, such as redistricting and distrib- the country. Beginning in late April 2000, uting federal program funds. These initial more than a half million temporary census contacts were completed in early Septem- workers conducted the most difficult and ber 2000. costly part of the census: trying to count From July to September 2000, the all the people in the Nation’s housing units Bureau also conducted the “Quality Counts” that did not return their Census 2000 phase of Census 2000. During this stage, questionnaires. These enumerators contact- experienced field representatives double- ed approximately forty-two million house- checked addresses classified in earlier holds during the nonresponse phase and operations as vacant or nonexistent or for finished ahead of schedule. which a blank or incomplete questionnaire 8 2000 FINANCIAL REPORT
  13. 13. OVERVIEW: ACCOMPLISHMENTS was received. They also visited new releasing apportionment counts by Decem- housing units constructed in the months ber 31, 2000 (already accomplished), using immediately before Census Day to insure traditional enumeration methods; adjusting that they were included in Census 2000. net population counts using the Accuracy Several other quality-assurance operations, and Coverage Evaluation Survey in all such as one that flags duplicate census states; and meeting all Census 2000 pub- responses and one that lished data release attempts to resolve milestones on time. inconsistent answers, Successful field were also conducted operations, including during the year. a higher mailback The first results of response rate for Census 2000 are the state Census 2000, have population totals used to helped ensure that reapportion the U.S. House these goals would of Representatives, which be met. were delivered to the President on December 28, 2000. More Economic Programs detailed data, used to redraw U.S. and state As a part of the Commerce FY2001 legislative districts, must be delivered to Annual Performance Plan for the Bureau’s governors and state majority and minority current Economic Statistics Programs in leaders by April 1, 2001. Over the next FY2000, all economic program performance 3 years, detailed data on population and measures were assigned for reporting to housing characteristics will be released the Economic and Statistics Administration as they are prepared. (ESA), Department of Commerce; the pri- There are no reportable performance mary customer of the Bureau’s economic measures in FY2000 for Census 2000. statistics programs. Bureau of Economic Several performance measures have been Analysis (BEA)/Economic and Statistics developed for FY2001. They include Administration uses census information to produce and disseminate economic 2000 FINANCIAL REPORT 9
  14. 14. OVERVIEW: ACCOMPLISHMENTS statistics and incorporates its vast amount Reimbursable Work The FY2000 program cost of of data into estimates of the U.S. Gross reimbursable work performed was Domestic Product. The results of the $166,654,000, which was offset by rev- measures will be reported by BEA/ESA. The enues received from customers for this FY2000 economic programs’ net of opera- work. The BOC per- tions was $130,703,000. forms more than 100 The majority of the cost surveys for other orga- supported regular on- nizations; 96 percent going economic statistic of which is for other programs. Additional federal agencies. These costs were incurred agencies use the survey to process the 1997 data in their programs Economic Census and and incorporate the begin releasing census results in their own reports. performance measures. Demographic Programs The Census Bureau reports the results Other Programs The FY2000 net cost of operations below against its performance goals in the for other programs was $106,638,000 as DOC’s fiscal years 1999 and 2000 Annual shown in the Consolidating Statement of Performance Plans. The FY2000 demo- Net Cost. The majority of the net costs graphic program cost was $98,109,000 as were for supporting Census Bureau pro- shown in the Consolidating Statement of grams, such as geographic support, infor- Net Cost. The majority of the costs were mation technology, survey methodology, for regular ongoing monthly surveys on and research. income, the labor force, and welfare reform and for population analyses. Other costs were incurred to continue to collect and process data from 31 test sites for the American Community Survey. 10 2000 FINANCIAL REPORT
  15. 15. OVERVIEW: ACCOMPLISHMENTS Provide Accurate, Timely, and Relevant Statistical Data FY1999 FY2000 FY2000 Measures actual target actual Household surveys with initial response rates >90% 100% 100% 100% Percent of household surveys attaining 100% of reliability specifications 100% 100% 100% Reduce time between data collection and data release for selected household surveys 9% Maintained Maintained decrease decrease decrease Conduct an Accurate, Timely, Relevant, and Cost-Effective Decennial Census FY1999 FY2000 FY2000 FY2001 Measures actual target actual target Produce apportionment counts using traditional census-taking methods N/A N/A N/A 100% on time Adjust net population counts using the Accuracy and Coverage Evaluation Survey in all states* N/A N/A N/A 100% on time Meet all Census 2000 published data release milestones on time N/A N/A N/A 100% on time * The Accuracy and Coverage Evaluation Survey is intended to evaluate the census counts produced for apportionment of Congres- sional Representatives among the states. It will be conducted subsequent to exhaustive efforts to enumerate everyone as accurately as possible using traditional census-taking methods. The adjusted counts will be available in a form that allows states to use them for redistricting purposes. The more accurate adjusted counts also can be used for determining the allocation of federal funds and for ongoing statistical and programmatic purposes. Source: Annual Performance Plan of the U.S. Department of Commerce for FY2001 (Revised) p.54. 2000 FINANCIAL REPORT 11
  16. 16. OVERVIEW: ACCOMPLISHMENTS Ensuring Financial Systems new performance measures have been Are Year 2000 Compliant applied to FY2000 programs. For Census Final modifications were made to 2000, activity was monitored constantly financial and budgetary systems to support using activity measures, such as response making them year 2000 com- rate and data capture effi- pliant. Prior-year, unobligated ciency. None of these mea- balances in the amount of sures were included in the $344,023 were available for Department’s Annual Perfor- FY2000. Of this amount, mance Plan as they did not $11,000 was transferred to represent program accom- the Information Technology plishments. System and Related Expenses Accordingly, the mea- account within the Office of sure for Census 2000 was to Management and Budget (OMB), which deliver and enumerate population count. provided a remaining balance of $333,023 This was to be done by December 31, 2000. carried forward for FY2000. It was accomplished on December 28, As implied in the 1999 Financial 2000. Report of the U.S. Census Bureau, page 6, 12 2000 FINANCIAL REPORT
  17. 17. FINANCIAL MANAGEMENT INFORMATION Financial Management Information Financial Management Branch to ensure the financial integrity of Organization the financial statements. Finance Division Changes in the Census Bureau (BOC) ensured overall financial integrity by Financial Management Structure establishing a detailed management plan, Finance has continued its efforts to including specific timelines, to ensure meet the requirements of the Govern- timely preparation and submission of ment Performance and Results financial reports as mandated by the Act (GPRA), which took effect Department of Commerce and Financial for the BOC in fiscal year Management Services. 2000. Our two perfor- To ensure data integrity, mance goals are (1) Finance created a schedule “Provide accurate, timely, and to monitor and review relevant statistical data” and (2) assignments, timeframes, and “Conduct an accurate, timely, filing deadlines. Finance sent relevant, and cost-effective employees to training on the decennial census.” following courses: financial To that end, Finance Division statements, SF-224, FACTS II, made several organizational changes to GOALS II, and year-end 2000 closing improve its overall financial management in seminars. FY2000. The Finance Division consists of The Cost Analysis and Reconciliation three branches, Financial Management and Section was dissolved and Thompson, Cobb Reporting Branch (FMRB), Financial Infor- and Bazilio & Associates, P (TCBA) were .C. mation Requirements Branch (FIRB), and under contract to prepare FY2000 reconcili- Financial Services Branch (FSB). ations. The BOC management has played a Financial Management very active role in monitoring the account and Reporting Branch reconciliations. The division chief has been As a result of the reorganization that reviewing and signing off on all the recon- was approved in FY1999, Finance hired two ciliations. section chiefs and one branch chief for the Financial Management and Reporting 2000 FINANCIAL REPORT 13
  18. 18. FINANCIAL MANAGEMENT INFORMATION Financial Information undelivered orders/deobligations, estimat- Requirements Branch The Comptroller’s Office began ing accounts payable and accrued liabilities. scheduling monthly closeout meetings to They designed and conducted the training improve the coordination and the communi- of the accounts payable employees as well cation with the administrative and program as the program officials. offices throughout the Bureau. For year- Financial Services Branch end, Finance sent a “Fiscal Year-End Close- Payments Out” letter to the administrative and Over the past year, the Financial program offices to give Finance their Services Branch decreased the percentage support to ensure the financial records of late penalties paid by the Prompt Pay- accurately reflected their use of budgetary ment Act. In addition, Finance decreased resources. The Comptroller’s Office also the percentage of the delinquent invoices created a schedule to process various in spite of the increased dollar volumes reports and interfaces to minimize system because of decennial activity. The num- contention. ber of penalties paid represents 1.5 percent Financial Information Requirements of total invoices paid in FY2000 versus Branch (FIRB) also provided administrative 3.5 percent in FY1999. Also, an Accounts training for program officials for review of Payable Payment Processing Procedures manual for the staff was produced. Invoices Paid Subject to the Prompt Payment Act Penalties Amount Amount Fiscal year Number (millions) Number (thousands) 2000 2,390,044 $797.7 35,563 $352.0 1999 464,206 $252.4 16,304 $228.8 14 2000 FINANCIAL REPORT
  19. 19. FINANCIAL MANAGEMENT INFORMATION Converting Payments to Electronic to the requirements of 31 U.S.C. 3535(b). Funds Transfers (EFT) Effective January 3, 2000, Finance While the statements have been prepared Division required all federal payments to be from the books and records of the BOC in made via EFT (salary payments, Cash-in-a- , accordance with the format prescribed by Flash awards, travel the Office of Manage- advances, and local ment and Budget, the travel). The BOC has an statements are in EFT conversion plan. The addition to the financial plan includes converting: reports used to monitor salary payments, wage and control budgetary withholdings, vendor resources that are pre- payments, and miscellaneous payments to pared from the same EFT The plan also includes the pilot use of . books and records. debit card technology for Survey Incentive The statements should be read with Payments. the realization that they are for the compo- nent of the U.S. Government, a sovereign Limitations of the entity. One implication of this is that Financial Statements liabilities cannot be liquidated without The financial statements have been legislation that provides resources to do so. prepared to report the financial position and results of operations of the BOC, pursuant 2000 FINANCIAL REPORT 15
  20. 20. FINANCIAL STATEMENTS AND FOOTNOTES Financial Statements and Footnotes U.S. Department of Commerce Economics and Statistics Administration U.S. Census Bureau Consolidated Balance Sheet as of September 30, 2000 (In thousands) Consolidated total Assets Intragovernmental Fund balances with Treasury (Note 2) $1,127,674 Accounts receivable (Note 3) 9,889 Other (Note 6) 1,478 Total intragovernmental assets $1,139,041 With the Public Accounts receivable, net (Note 3) $4,296 Inventories and operating supplies, net (Note 4) 1,210 Property and equipment, net (Note 5) 47,378 Other (Note 6) 1,968 Total assets $1,193,893 Liabilities Intragovernmental Accounts payable $22,126 Deferred revenue 88,090 Accrued benefits (Note 7) 6,050 Unfunded FECA accrual (Note 13) 4,260 Other (Note 8) 4,961 Total intragovernmental liabilities $125,487 With the Public Accounts payable $111,770 Deferred revenue 4,502 Accrued payroll and benefits (Note 7) 36,896 Actuarial FECA liability (Note 13) 58,552 Unfunded accrued leave (Note 13) 33,194 Contingent liabilities (Note 11) 8,000 Other (Note 8) 7,205 Total liabilities $385,606 Net Position Unexpended appropriations (Note 14) $788,190 Cumulative results of operations 20,097 Total net position $808,287 Total liabilities and net position $1,193,893 The accompanying notes are an integral part of these statements. 16 2000 FINANCIAL REPORT
  21. 21. FINANCIAL STATEMENTS AND FOOTNOTES U.S. Department of Commerce Economics and Statistics Administration U.S. Census Bureau Consolidating Statement of Net Cost for the Period Ending September 30, 2000 (In thousands) Goal 1: Conduct an accurate, timely, relevant, and cost effective Goal 2: Provide accurate, timely, and decennial census relevant statistical data Demo- Reim- Consoli- Decennial Economic graphic bursable All Combined Elimi- dated census programs programs programs others totals nations totals Program costs Intragovernmental $814,882 $76,660 $59,366 $104,238 $325,683 $1,380,829 ($487,895) $892,934 Public 3,162,811 54,043 38,743 62,416 269,169 3,587,182 - 3,587,182 Total program costs $3,977,693 $130,703 $98,109 $166,654 $594,852 $4,968,011 ($487,895) $4,480,116 Less earned revenue - - - (171,933) (488,214) (660,147) 487,895 (172,252) Net cost of operations (Note 9) $3,977,693 $130,703 $98,109 ($5,279) $106,638 $4,307,864 $- $4,307,864 The accompanying notes are an integral part of these statements. 2000 FINANCIAL REPORT 17
  22. 22. FINANCIAL STATEMENTS AND FOOTNOTES U.S. Department of Commerce Economics and Statistics Administration U.S. Census Bureau Consolidating Statement of Changes in Net Position for the Period Ending September 30, 2000 (In thousands) Demo- Reim- Decennial Economic graphic bursable All census programs programs programs others Total Net cost of operations ($3,977,693) ($130,703) ($98,109) $5,279 ($106,638) ($4,307,864) Financing sources Appropriations used 4,006,381 143,888 101,344 - 48,241 4,299,854 Imputed financing 35,184 1,156 868 - - 37,208 Total financing sources $4,041,565 $145,044 $102,212 $- $48,241 $4,337,062 Net results of operations $63,872 $14,341 $4,103 $5,279 ($58,397) $29,198 Increase in unexpended appropriations 465,025 Change in net position $494,223 Net position - beginning of period 314,064 Net position - end of period $808,287 The accompanying notes are an integral part of these statements. 18 2000 FINANCIAL REPORT
  23. 23. FINANCIAL STATEMENTS AND FOOTNOTES U.S. Department of Commerce Economics and Statistics Administration U.S. Census Bureau Consolidated Statement of Budgetary Resources for the Period Ending September 30, 2000 (In thousands) Consolidated total Budgetary Resources Budget authority (Note 12) $4,774,597 Unobligated balances - beginning of period 24,895 Spending authority from offsetting collections (Note 12) 529,882 Recoveries of prior-year obligations 11,558 Cancellations and recissions (9,717) Total budgetary resources $5,331,215 Status of Budgetary Resources Obligations incurred $4,893,249 Unobligated balances - available 402,908 Unobligated balances - not available 35,058 Total status of budgetary resources $5,331,215 Outlays Obligations incurred $4,893,249 Less: spending authority from offsetting collections (Note 12) (529,882) Recoveries of prior-year obligations (11,558) Obligated balance, net - beginning of period 492,289 Less: obligated balance, net - end of period (633,856) Total outlays $4,210,242 The accompanying notes are an integral part of these statements. 2000 FINANCIAL REPORT 19
  24. 24. FINANCIAL STATEMENTS AND FOOTNOTES U.S. Department of Commerce Economics and Statistics Administration U.S. Census Bureau Consolidated Statement of Financing for the Period Ending September 30, 2000 (In thousands) Consolidated total Resources Used to Finance Activities Obligations incurred $4,893,249 Less: spending authority from offsetting collections (529,882) Recoveries of prior-year obligations (11,558) Financing imputed for cost subsidies 37,208 Exchange revenue not in the budget (508) Total obligations as adjusted and nonbudgetary resources $4,388,509 Resources Used That Do Not Fund Net Cost of Operations Change in obligations incurred for goods, services, and benefits ordered but not yet received or provided ($164,545) Change in unfilled customer orders 57,636 Costs capitalized on the balance sheet (26,217) Other 3,230 Total resources used that do not fund net cost of operations ($129,896) Costs That Do Not Require Budgetary Resources Depreciation and amortization $19,954 Bad debt expense 955 Loss on disposition of assets 2,674 Total costs that do not require budgetary resources $23,583 Costs that will be financed with budgetary resources received in future periods 25,668 Net cost of operations $4,307,864 The accompanying notes are an integral part of these statements. 20 2000 FINANCIAL REPORT
  25. 25. FINANCIAL STATEMENTS AND FOOTNOTES Financial Footnotes Note 1. Summary of Significant All BOC funding is under the Com- Accounting Policies merce and Housing Credit budget functional Reporting Entity classification. The U.S. Census Bureau’s (BOC) mission is to collect and provide high Budgets and Budgetary Accounting quality statistics about the American people To support its mission, the BOC and economy. To deliver high value, the receives financial resources from the BOC must target meas- following: urement on those Salaries and trends and segments Expense (S&E) of our population and Appropriation economy most critical Annual 1-year to continued American appropriations are success and prosperity. provided by Con- The Congressional Act of March 6, 1902, gress and are available for obligation in established a Census Bureau and provides the fiscal year for which it was provided for various surveys and censuses. Title 13 to fund the overall operation of the BOC. of the United States Code regulates laws Periodic Censuses and Programs pertaining to the BOC’s statistical programs (PCP) Appropriation and ensures confidentiality of data. Section No-year appropriations are provided 401 of Executive Order 12656 directs the by Congress to fund the decennial census Secretary of Commerce to provide for the conducted every 10 years; the economic collection and reporting of census informa- censuses and the census of governments, tion on human and economic resources and which are conducted every 5 years; as well to maintain a capability to conduct emer- as other programs that are conducted on a gency surveys to provide information on cyclical basis. the status of these resources as required Working Capital Fund for national security emergencies. The BOC This is a nonappropriated account is a bureau within the U.S. Department of used to finance services within the BOC. Commerce (DOC). These services are more efficiently per- formed on a centralized basis and include 2000 FINANCIAL REPORT 21
  26. 26. FINANCIAL STATEMENTS AND FOOTNOTES reimbursable statistical work the BOC elected individuals represent. Census 2000 performs for other federal agencies, state was the largest in America’s history. and local governments, foreign govern- Economic Programs ments, and the private sector. Economic programs produce informa- tion critical to the economic functioning Census Programs of the United States and its The BOC is the largest citizens. Data, such as housing statistical agency of the federal starts, retail sales, wholesale government. While best known trade, merchandise imports and for the decennial census, the exports, mining, and manu- BOC conducts other facturing, are collected surveys and censuses each month. that measure changing Demographic Programs individual and household demographics and Important demographic efforts include economic conditions of the United States. the preparation of official population esti- Major program functions and activities mates and projections, plus the collection include: of survey data for official statistics on Decennial Census of income and poverty, families, race and Population and Housing ethnic groups, and the Nation’s housing The decennial census is one of the characteristics. few federal activities for which authority Reimbursable Programs rests in the Constitution (Article 1, Section Reimbursable programs receive funds 2). The decennial census is the Nation’s from other federal agencies, such as the oldest and most comprehensive source Departments of Labor, Health and Human of population and housing information. Services, Housing and Urban Development, Decennial census data provide the basis for and Justice, in exchange for the BOC’s apportioning among the states the seats in survey and data collection activities. the U.S. House of Representatives and for Other Programs developing the districts that members of Other programs include methodology Congress, state legislators, and other and standards, geographical support, data 22 2000 FINANCIAL REPORT
  27. 27. FINANCIAL STATEMENTS AND FOOTNOTES processing systems, electronic information accounting policies, when applicable, which collection, continuous measurement, are summarized in this note. demographic surveys sample redesign, cost The financial statements are different collection, and the working capital fund. from the financial reports prepared by the BOC pursuant to OMB directives that are Basis of Accounting used to monitor and control the BOC’s use The accompanying financial state- of budgetary resources. ments have been prepared to The BOC records report the financial position, accounting transactions net costs, and changes in net on both the accrual and position of the BOC, together budgetary basis of with budgetary resources and accounting. Under the a reconciliation of net costs to accrual method, revenue budgetary obligations, as is recognized when earned, and expenses required by the Government Management are recognized when a liability is incurred, Reform Act of 1994 and in accordance with without regard to receipt or payment of generally accepted accounting principles cash. Budgetary accounting facilitates (GAAP). GAAP for federal financial reporting compliance with legal constraints and entities recognizes the Federal Accounting controls over the use of federal funds. Standards Advisory Board (FASAB) as the standards-setting body designated to Revenues and Other establish these principles for these entities. Financing Sources The BOC receives the funding needed The financial statements have also been to support its programs through appropria- prepared from the books and records of tions. Both annual and multiyear appropria- the BOC in accordance with the form and tions are received and used, within statu- content for entity financial statements tory limits, for operating and capital specified by the Office of Management and expenditures. Additional resources are Budget (OMB) Bulletin 97-01, Form and obtained through the collection of amounts Content of Agency Financial Statements, as from reimbursable programs performed for amended, and Department of Commerce 2000 FINANCIAL REPORT 23
  28. 28. FINANCIAL STATEMENTS AND FOOTNOTES other governmental and nongovernmental of the BOC, which will be paid by other entities. federal agencies, are recorded in the Appropriations are recognized as “Statement of Net Cost.” A corresponding revenue at the time the related program or amount is recognized in the “Statement of administrative expenses are incurred. The Changes in Net Position” as an “Imputed consumption of appropriations Financing Source.” BOC’s used to purchase property and imputed expenses are for equipment are recognized when health care, life insurance, and the purchases are made. pension plans for employees, Appropriations. Through which will be paid by the Congressional appropriations, Office of Personnel Manage- the BOC is provided financing ment. Expenses are recorded sources for its programs. The at year-end for losses in funds are warranted by the litigation proceeding against Treasury and apportioned by the BOC. Losses paid by the the OMB. Treasury Judgement Fund are Recoveries. No-year recognized as an imputing funds are authorized by the OMB’s Letter of financing source by the BOC. Apportionment to expend recoveries from Assets prior-years’ obligations. Assets defined as Entity Assets, such Reimbursements. Reimbursements as Fund Balance With Treasury, property and are authorized in various appropriations equipment, and accounts receivable, are based on the Letter of Apportionment. available for use in the BOC’s operations. Imputed Financing Sources. In Nonentity assets are assets for which accordance with OMB Bulletin No. 97-01, an agency has fiduciary responsibility and certain expenses should be reported by are not available for use in the agency’s agencies whether or not these expenses operations. Nonentity assets consist of will be paid by the agency that incurs the suspense deposit funds and collection of an expense. The amounts for certain expenses 24 2000 FINANCIAL REPORT
  29. 29. FINANCIAL STATEMENTS AND FOOTNOTES accounts receivable that are not available to The BOC also records as accounts finance BOC activities. receivable amounts due from the public for BOC’s assets are also classified as employees’ indebtedness for salary over- either intragovernmental or with the public. payments, health benefits, and other in- Intragovernmental assets are held by or due debtedness of all current and noncurrent from federal government agencies. Assets employees. Accounts receivable due from with the public result from transactions the public also includes with nonfederal entities. amounts owed by state and local governments and non- Fund Balance With U.S. Treasury profit organizations that The BOC does not, for are not allowed to pay the most part, maintain cash for services in advance. in commercial bank accounts. The amounts due for The U.S. Treasury processes public receivables are stated cash receipts and disburse- net of an allowance for un- ments. Funds with the U.S. collectible amounts. This Treasury consist of appropriated and allowance is based on an analysis of the deposited funds that are available to pay outstanding balances. No allowance for current liabilities and finance authorized uncollectible accounts is recognized for purchase commitments. intragovernmental accounts receivable because these accounts are due from other Accounts Receivable, Net of Allowance federal agencies and are deemed to be fully The BOC intragovernmental accounts collectible. receivable consists of receivables from the Department of Labor for erroneously billed Inventories Federal Employee Compensation (FEC) The BOC inventories are comprised account activity as well as receivables from of operating supplies as well as data and other federal agencies for reimbursable information contained in CD-ROMs held for projects. sale. The inventories on hand are stated at average cost using the lower of cost or net realizable value. 2000 FINANCIAL REPORT 25
  30. 30. FINANCIAL STATEMENTS AND FOOTNOTES Property and Equipment estimated number of years of their useful The land and buildings that the BOC life. Assets purchased for less than the operates in are provided by the General new capitalization threshold will be re- Services Administration (GSA), which corded as accountable property and inven- charges the BOC a Standard Level Users toried along with capitalized items. Charge (SLUC) that Depreciation rates approximates the are established on the commercial rental basis of a reasonable rates for similar estimate of the useful life properties. The BOC of the assets to be depre- allocates its rent ciated and are applied on expense to its various a straight-line basis. In funding sources. establishing useful lives for assets, due Leasehold improvements are capital- consideration is given to: ized and amortized over the lives of the • Factors cited in feasibility studies related leases. and documents authorizing the acquisition Effective October 1, 1996, the Office of the ADP or other specialized equipment. of Financial Management amended the • The BOC actual prior experiences DOC’s accounting policy, raising the capitali- on the replacement of similar assets. zation threshold from $5,000 to $25,000. The ADP software service life was The policy requires all equipment and adjusted downward from 5 to 3 years software purchased after FY1996 for effective October 1, 1997. The service amounts $25,000 and over with a useful life for ADP software purchased prior to life of at least 2 years to be recorded as a October 1, 1997, remains at 5 years. capital asset and depreciated/amortized over its estimated economic useful life. Liabilities Assets purchased prior to FY1996, which Liabilities represent the amount of were capitalized at the former $5,000 money or other resources that are sched- threshold, are not affected by this change uled to be paid by the BOC as the result and will continue to be depreciated over the of a transaction or event that has already 26 2000 FINANCIAL REPORT
  31. 31. FINANCIAL STATEMENTS AND FOOTNOTES occurred. Liabilities for which an appropria- Intragovernmental Deferred Revenue tion has not been enacted are classified as is primarily advances from federal agencies unfunded liabilities. No liability can be paid for services that have not yet been pro- by the BOC absent an appropriation. vided. Deferred Revenue with the public All expenses and related accrued is comprised mostly of unfinished work liabilities are recorded and reported by for state and local governments, nonprofit agencies whether or not amounts are organizations, and universities. funded. Appropriation law, however, Accrued Payroll and Benefits prohibits federal agencies from obligating Accrued Payroll and Benefits repre- or spending funds for which appropriations sents salaries, wages, and benefits earned have not been authorized. In order to by the employees, but not disbursed as comply with the above requirements and of September 30, 2000. The employees’ to provide accountability for unfunded benefits accrued are payable to other expenses anticipated to be funded from federal agencies and are, therefore, re- future appropriations, the amounts for ported under intragovernmental. current unfunded expenses are reported in the “Statement of Net Cost,” and related Annual, Sick, and Other Leave liabilities are included in the “Balance Sheet” Annual leave is accrued as earned, and disclosed as Liabilities Not Covered by and the accrual is reduced as leave is taken. Budgetary Resources (see Note 13). Each year, the balance in the accrued annual and compensatory leave account is adjust- Deferred Revenue ed to reflect current leave balances and pay BOC receives advances from others rates. To the extent current or prior-year for goods to be delivered or services to be appropriations are not available to fund performed. Deferred Revenue represents annual leave earned but not taken, funding amounts received from others for goods will be obtained from future financing and services yet to be provided or rendered sources. Sick leave and other types of by the BOC. Revenue is recognized as nonvested leave are expensed as taken. costs are incurred, and the Deferred Revenue balance is reduced accordingly. 2000 FINANCIAL REPORT 27
  32. 32. FINANCIAL STATEMENTS AND FOOTNOTES FECA Liability benefits includes the expected liability for The Federal Employees’ Compensation death, disability, medical, and miscella- Act (FECA) provides income and medical neous costs for approved compensation cost protection to covered federal civilian cases. The liability is determined utilizing employees historical injured on the benefit pay- job, employees ment patterns who have related to a incurred a specific period work-related to estimate occupational the ultimate disease, and payments beneficiaries of employees whose death related to that period. is attributable to a job-related injury or occupational disease. Claims incurred for Employee Retirement Plans benefits for BOC employees under FECA Employees hired after December 31, are administered by the Department of 1983, are automatically covered by the Labor and are ultimately paid by the BOC. Federal Employees’ Retirement System FECA liability includes two compo- (FERS), implemented on January 1, 1987, nents: (1) the accrued liability, which while employees hired prior to that date represents money owed for claims paid may elect to join either FERS or to remain in through the current fiscal year; and (2) the Civil Service Retirement System (CSRS). the actuarial liability, which represents For employees in FERS, the BOC withholds the expected future liability for approved 1.05% of gross earnings in addition to Social compensation claim cases. Security (FICA), and matches the withhold- Future workers’ compensation esti- ing with a 10.7% contribution. The sum mates were generated from an application is transferred to the Federal Employees’ of actuarial procedures developed to Retirement Fund. For employees covered estimate the liability for FECA benefits. The by the CSRS, the BOC withholds 7.25% liability for future workers’ compensation of gross earnings. This withholding is matched by the BOC, and the sum of the 28 2000 FINANCIAL REPORT
  33. 33. FINANCIAL STATEMENTS AND FOOTNOTES withholding and the matching funds is the responsibility of the U.S. Office of transferred to the CSRS. Personnel Management. On April 1, 1987, the federal govern- Statement of Federal Financial Ac- ment initiated the Thrift Savings Plan (TSP), counting Standards (SFFAS) 5, Accounting which is a retirement savings and for Liabilities of the Federal investment plan for employees Government, and OMB Bulletin covered by either FERS or CSRS. 97-01, Form and Content of The BOC makes a mandatory Agency Financial Statements, contribution of 1% of basic pay for require federal entities to FERS-covered employees. Employ- recognize an expense for ees are eligible to contribute up pension and other retirement to 10% of basic pay to their TSP benefits at the time the account. In addition, BOC makes employees’ services are matching contributions of up to rendered. 5% of basic pay for employees who contri- To calculate the liability for pensions bute to the Thrift Savings Plan. CSRS and other retirement benefit costs, the participants may contribute up to 5% of “service cost” or normal cost is calculated. their gross pay, but there is no governmen- Service cost is defined as the actuarial tal matching contribution. The maximum present value of benefits attributed by the amount that either FERS or CSRS employees pension plan’s benefit formula to services may contribute to the plan in calendar year rendered by employees during the account- 2000 was $10,500. The sum of employee ing period. The amount of the service cost, and BOC contributions is transferred to the less any employee contributions attribut- Federal Retirement Thrift Investment Board able to post-retirement benefits, is defined to administer. as the “pension expense” for the entity. To The BOC financial statements do not calculate the amount of additional expense report CSRS or FERS assets, accumulated to be recorded, the employer’s contribution plan benefits, or unfunded liabilities, if any, is subtracted from the pension expense which may be applicable to BOC’s employ- since the employer’s contribution is expend- ees and funded by BOC. Such reporting is ed with each pay period. Since the benefit 2000 FINANCIAL REPORT 29
  34. 34. FINANCIAL STATEMENTS AND FOOTNOTES for pensions is received after retirement, Unexpended Appropriations. employee and employer contributions are Unexpended appropriations include appro- attributed to the period after retirement and priations not yet obligated or expended, are subtracted from the service costs. The represented by the unobligated balances employee and employer contributions for and undelivered orders of BOC’s appropri- health care and life ated funds. Multiyear insurance are attrib- appropriations remain uted to the current available to BOC for period, and therefore, obligation in future there is no offset to periods. Unobligated these service costs balances associated to calculate the other with appropriations retirement benefit that expire at the end expenses for the of the fiscal year remain entity. These addi- available for obligation tional expenses represent the “subsidy” adjustments, but not new obligations, until being made by the Office of Personnel that account is closed, 5 years after the Management (OPM) for employees’ retire- appropriations expire (see Note 14). ment benefits. Cumulative Results of Operations. BOC recognizes these imputed costs Cumulative results of operations at Septem- on the Consolidating Statement of Net Cost. ber 30, 2000, include the accumulated In addition, BOC recognizes an imputed difference between expenses consuming financing source on the Consolidating budgetary resources and financing sources Statement of Changes in Net Position and providing budgetary resources during the the Consolidated Statement of Financing. current and prior fiscal years; BOC’s invest- For FY2000, the amount of imputed financ- ment in capitalized assets, which increases ing is $37,208 thousand. as capital assets are acquired and decreases as capital assets are depreciated or dispos- Net Position ed of; and the excess of certain liabilities BOC’s net position at September 30, not consuming budgetary resources, net of 2000, consisted of the following: 30 2000 FINANCIAL REPORT
  35. 35. FINANCIAL STATEMENTS AND FOOTNOTES certain assets not providing budgetary Note 2. Fund Balances With the U.S. Treasury resources, whose liquidation will require The BOC cash receipts and disburse- obligation of funds and may require funding ments are processed by the U.S. Treasury. from future Congressional appropriations or Nonfederal receipts are deposited daily in other budgetary resources. commercial banks, which transfer the Elimination of Intra-Census receipts to the U.S. Treasury. Federal Transactions and Balances checks are mailed directly to the Federal All significant Intra-Census transac- Reserve Bank. Funds with the U.S. Treasury tions and balances among BOC funds have represent appropriated and reimbursable been eliminated from BOC’s financial funds available to finance expenditures. statements. Included in the Fund Balance With Treasury Use of Estimates are entity deposit funds for unfinished The preparation of financial state- reimbursable work with other federal ments in accordance with generally ac- agencies and the public. Other Funds cepted accounting principles requires include nonentity deposit funds, which are management to make estimates and suspense funds that are not available to assumptions that affect the amounts finance BOC activities. reported in the financial statements and accompanying footnotes. Actual results could differ from those estimates. (In thousands) Entity Nonentity Total Revolving funds $165,534 $- $165,534 Appropriated funds 955,062 - 955,062 Other funds 6,910 168 7,078 Total $1,127,506 $168 $1,127,674 2000 FINANCIAL REPORT 31
  36. 36. FINANCIAL STATEMENTS AND FOOTNOTES Note 3. Accounts receivables billed to employees and in the Receivable, Net process of repayment as well as unbilled The BOC maintains an accounts receivables that will not be billed until the receivable subsidiary ledger for amounts employee returns to active status and a due for goods and services provided to salary offset is initiated. The detail of other federal agencies, the public, and accounts receivable from other federal foreign entities. In addition, the Depart- agencies is in the Required Supplementary ment of Agriculture, National Finance Information, Intragovernmental Assets. Center (NFC), maintains an accounts The nonentity accounts receivable is from receivable subsidiary ledger on behalf the United States Patent and Trademark of BOC for salary overpayments, health Office. These funds will be transferred to benefits, and other indebtedness of all the general fund of the United States current and noncurrent employees. The Treasury upon collection. NFC receivables include both current (In thousands) Gross Net accounts accounts receivable Allowance receivable Entity intragovernmental $9,616 $- $9,616 Nonentity intragovernmental 273 273 $9,889 $- $9,889 Entity with the public $5,366 ($1,070) $4,296 Total $15,255 ($1,070) $14,185 32 2000 FINANCIAL REPORT
  37. 37. FINANCIAL STATEMENTS AND FOOTNOTES The BOC estimates the allowance for Note 4. Inventories and Operating Supplies, Net uncollectible accounts receivable with the The BOC’s inventory is comprised public based on the following aging sched- of operating supplies as well as data and ule, reflective of historical collection information contained in CD-ROMs held patterns: for future sale to other federal government agencies and to the public. The inventories 1 - 90 days ......................... 0% on hand are stated at average cost using 91 - 180 days ................... 15% the lower of cost or net realizable value. 181 - 360 days ................. 35% Expenses are recorded when the inventories Over 360 days ............... 100% are sold and revenues are received from the customer. A reserve for obsolete items is Allowance for Uncollectible based on items held in inventory that may Accounts Receivable not be sold and would be removed from (In thousands) inventory at a later date. Inventories also FY2000 include operating materials and supplies, such as unused postage meters. The Beginning of period ($115) BOC intends to maintain inventory levels FY2000 increase in allowance (955) sufficient to meet only current demand. End of period ($1,070) (In thousands) Obsolete Inventory inventory Inventory, amount allowance net Inventory $1,241 ($124) $1,117 Operating supplies 93 - 93 Total $1,334 ($124) $1,210 2000 FINANCIAL REPORT 33

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