OMB Number A-136 was used as guidance for the preparation of the accompanying financial statements. EEOC prepares five financial statements: the Consolidated Balance Sheets, Statements of Net Cost, Changes in Net Position, Combined Statements of Budgetary Resources, and Financing. 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 2006 and FY 2005.
The Consolidated Balance Sheets present amounts that are owned or managed by EEOC (assets), amounts owed (liabilities), and the net position of the agency divided between the cumulative results of operations and unexpended appropriations.
The FY 2006 cumulative result of operations shows a negative balance. 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 items as accrued leave and actuarial liabilities not covered by available budgetary resources. EEOC’s
FY 2006 future funded annual leave balance and actuarial FECA liability totaled $25 million.
The Consolidated Statements of Net Cost present the gross cost incurred by major programs less any revenue earned. Overall, in FY 2006 EEOC’s Net Cost of Operation decreased by 3%. The allocation of costs for FY 2006 shows that resources used for Justice and Opportunity (administrative charge processing, mediation, litigation, and state and local) decreased by 2% with a decrease of 1% for Inclusive Workplace (training/technical assistance and outreach).
The Consolidated Statements of Changes in Net Position represent the change in the net position for
FY 2006 and FY 2005 from cost of operations, appropriations received and used, net of recissions, and the financing of some costs by other government agencies. EEOC’s Net Position improved over last year with a $4.2 million increase. This favorable condition is attributed to the decrease in the net cost of operation.
The Combined Statements of Budgetary Resources show how budgetary resources were made available and the status of those resources at the end of the fiscal year. In FY 2006, EEOC received the same funding amount as in its FY 2005 appropriation. The budgetary resources from collections, unobligated balances brought forward, and recoveries increased by $1.3 million; and recissions and cancelled appropriations decreased by $1.8 million. Resources that remained unobligated at year end were $7.7 million and $9.7 million in FY 2006 and FY 2005, respectively. These un-obligated amounts represent expired budget authority from prior years that are no longer available for new obligations.
The Consolidated Statements of Financing are presented to explain the difference between budgetary and accrual-based accounting. Although total resources available to finance activities remained the same as last year, resources used to purchase assets and reduce liabilities continued to decline over the past year. This resulted in a decrease of resources used in operations of $9.9 million from
FY 2005. Net cost of operation that did not require current resources increased by
$0.5 million. The total of these changes yields a decrease in EEOC’s FY 2006 net cost of operations of $9.4 million.
The chart on the preceding page displays a 6-year historical view of EEOC’s use of resources. Compensation and benefits consumes the majority of the budget at 69%. The second item that has consumed a portion of the budget is state and local at 10%. A third item is rent which consumes 9% of the budget and is included in nonpayroll costs.
The pie chart on preceding page displays EEOC’s obligations for FY 2006. As shown in the previous chart, salaries and benefits and the state and local program consumed a large portion of the budget with rent as the third item. Resources used for Information Technology as well as general operating expenses were consumed at the same rate of 5%. Other agency programs (Litigation, ADR contracts, Outreach, and the National Contact Center) were consumed at the lowest rate of 2%.
The chart below depicts EEOC’s compensation and benefits versus full-time equivalents (FTEs) over
6 years. Generally, FTEs have decreased while salaries and benefits have increased. (The current average salary is approximately $104,000, an increase of $24,000, or 30%, of the FY 2002 average salary.) The exception to the overall increases appears in FY 2006 when FTEs decreased as well as salaries and benefits. This was a result of eligible employees taking early outs and buyouts offered by the EEOC during June 2006.
This page was last modified on December 7, 2006
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