FY 2004 is the first year that agencies covered by the Accountability of Tax Dollars Act of 2002 are required to prepare a Performance and Accountability Report that includes audited financial statements. The Office of Management and Budget (OMB) Bulletin Number 01-09 and related OMB memoranda were used as guidance for the preparation of the accompanying financial statements.
EEOC prepares five financial statements: the Consolidated Balance Sheet and Consolidated Statements of Net Cost of Operations, Changes in Net Position and Financing, and the Combined Statement of Budgetary Resources.
Outlined in the following section are the purpose of each statement, an explanation of any significant amounts, and an explanation of significant fluctuations between FY 2004 and FY 2003.
The Consolidated Balance Sheet presents amounts that are owned or managed by EEOC (assets), amounts owed (liabilities) and the net position of the agency, divided between cumulative results of operations and unexpended appropriations.
Property, plant, and equipment increased by 35% in FY 2004 because EEOC leased additional copiers that are recorded as capital assets at a total value of $607,000. In addition, EEOC made leasehold improvements valued at $816,000. The improvements were made to relocate the Washington field office to space in the headquarters building in order to reduce the rental cost of space. The future worker's compensation liability decreased by 10%. An actuary calculated the liability for FY 2004. For FY 2003, a template provided by the Department of Labor was used to make the computation.
The cumulative result of operations shows a negative balance of $23 million. This is due to amounts accumulated over the years by EEOC from financing sources less expenses and losses - and an amount representing EEOC's liabilities for such things as accrued leave - and actuarial liabilities not covered by available budgetary resources
The Consolidated Statement of Net Cost of Operations presents the gross cost incurred by major programs less any revenue earned. For FY 2004, EEOC used hours worked by employees, as reported by employees through a survey instrument, to capture costs by major programs. For FY 2003, EEOC used an estimate of hours worked to allocate costs. The allocation of costs for FY 2004 shows that resources used for Justice and Opportunity (administrative charge processing, mediation, litigation, and State and local) increased by 2% with a corresponding decrease of 2% for Inclusive Workplace (training/technical assistance and outreach). Total costs decreased by $1.3 million; however, fees earned for training increased by $444,000. The net cost of operations decreased by $1.7 million.
The Consolidated Statement of Changes in Net Position represents
the change in the net position for
FY 2004 and FY 2003 from cost of operations, appropriations received and used, net of recissions and the financing of some costs by other government agencies. Unexpended appropriations decreased by $2.8 million primarily because of an increase in appropriation recissions and canceled authority. This resulted in a net decrease in net position of $2 million.
The Combined Statement of Budgetary Resources presents how
budgetary resources were made available and the status of those
resources at the end of the fiscal year. Our budgetary resources
$2 million in FY 2004. Appropriations received increased by $4.6 million and authority from collections and beginning balances increased by $2.4 million. Recoveries of prior year funds decreased and unavailable authority increased which resulted in a total decrease of $4.9 million in authority. Resources that remained unobligated at year-end were $9.4 million and $11.1 million in FY 2004 and FY 2003, respectively.
The Consolidated Statement of Financing is presented to explain the difference between budgetary and accrual based accounting. Total resources available increased by $5 million; however, resources used to purchase assets and reduce liabilities were greater in FY 2004 by $6.6 million, resulting in a reduction from FY 2003 of resources used in operations of $1.5 million. Additionally, costs of operations that did not require current resources decreased by $.2 million. Adding these together shows the decrease in the net cost of operations of $1.7 million.
The chart below displays a six-year historical view of EEOC's use of resources. Compensation and benefits consumes the majority of the budget at 70 %, including a 7% increase in average salary and benefit costs by FTE. Rent is the second item that has consumed a major portion of the budget at 9%.
This page was last modified on November 18, 2004
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