Back to TOC | Notes 1-8
FY 2002 Annual financial Statements

U.S. Department of Justice
Notes to the Principal Financial Statements
(Dollars in Thousands)


Note 9.  Other Assets

       

FY 2002

 

FY 2001

Intragovernmental

 
 
 
 
 

Advances to Others

 

$ 61,446

 

$ 82,101

 

Prepayments

 

980

 

1,408

 

Other

 

43,823

 

-

     
 
 

Total Intragovernmental

106,249

 

83,509

       
 
 
 

Other Assets

 

5,751

 

3,242

   
 
 

Total Other Assets

 

$ 112,000

 

$ 86,751

       
 

 

Other represents funds in the amount of $100,000 disbursed from and $56,255 deposited into the Treasury General Fund during FY 2002.  The FY 2002 disbursement from the Treasury General Fund resulted because during FY 2000, Debt Collection Management was instructed to deposit the proceeds from a case settlement into the Treasury General Fund.  A subsequent change in application document required the distribution of the funds to another Federal Agency instead of the Treasury General Fund.

Note 10.  Non-Entity Assets

       

FY 2002

 

FY 2001

Intragovernmental

 
 
 
 
 

Fund Balance with U.S. Treasury

 

$ 481,607

 

$ 758,088

 

Accounts Receivable, Net

 

-

 

18

 

Investments, Net

 

517,359

 

528,271

 

Other

 

43,745

 

-

     
 
   

Total Intragovernmental

 

1,042,711

 

1,286,377

       
 
 
 

Cash and Other Monetary Assets

 

65,143

 

72,380

Accounts Receivable, Net

 

9,443

 

3,014

   
 
 

Total Non-Entity Assets

 
 

1,117,297

 

1,361,771

 

Total Entity Assets

 

30,026,510

 

27,962,470

     
 
 

Total Assets

 

$ 31,143,807

 

$ 29,324,241

       
 

 

Note 11.  Debt

During 1988, Congress granted FPI borrowing authority pursuant to Public Law 100-690.  Under this authority, FPI borrowed $20,000 from the U.S. Treasury with an extended lump-sum maturity date of September 30, 2008.  The funds received under this loan were internally restricted for use in the construction of factories and the purchase of equipment.  The loan accrues interest, payable March 31 and September 30 of each year, at 5.5 percent (the rate equivalent to the yield of U.S. Treasury obligations of comparable maturities which existed on the date of the loan extension).  Accrued interest payable under the loan is either fully or partially offset to the extent the non-interest bearing cash deposits are maintained with the U.S. Treasury.  In this regard, there is no accrual of interest unless the cash balance, on deposit with the U.S. Treasury, falls below $20,000.  When this occurs, interest is calculated on the difference between the loan amount ($20,000) and the cash balance.

The loan agreement provides for certain restrictive covenants and a prepayment penalty for debt retirements prior to FY 2008.  Additionally, the agreement limits authorized borrowings in an aggregate amount not to exceed 25 percent of the FPI’s net equity.  There were no net interest expenses for the years ended

September 30, 2002 and 2001.

Note 12.   Environmental Cleanup Costs

The FIST-5 (Fuel In Storage Tank 5-Year) Program is a nation-wide effort begun in FY 1995 to upgrade and optimize automotive and aviation bulk fueling capabilities.  The Department monitors the environmental cleanup and any required remediation for all its known underground storage tanks.  The original FIST-5 proposal indicated that the program would develop and identify new projects as time passes.  During the course of the 5-year effort, the FIST-5 program has grown from 41 projects to 91 individual projects.  Completed projects total 78, with the remaining 13 projects scheduled for completion over the next 12 -18 months.  The total cumulative estimated remediation costs decreased from $21,200 in FY 2000 to $18,800 in FY 2001 and remained $18,800 for FY 2002.  Of the $18,800, $15,867 has been disbursed.  The remaining $2,933 has been accrued and is included in the environmental and disposal liability, of which $2,698 is covered and $235 is not covered by budgetary resources at September 30, 2002.  All the Department underground storage tanks have been certified in compliance with the new, more stringent Environmental Protection Agency (EPA) regulations that took effect on December 22, 1999. 

The DEA owns a section of land located in Chicago, Illinois.  Soil samples taken from this land, after removal of underground storage tanks indicated levels of benzene, ethyl benzene, and lead that were above soil remediation standards.  Phase I of an environmental site assessment was conducted on January 15, 2002, for this site.  The assessment revealed evidence of a potential environmental condition and recommended the study be extended to determine the extent of the contamination.  Phase II of the environmental site assessment is scheduled to begin in FY 2003.  At this time, needs for remediation activities have not been resolved nor have potential cleanup costs been determined.  Although DEA may have a liability to cleanup this land, costs can not be estimated at this time.  Therefore, no costs are reflected in the financial statements for this environmental cleanup project.

Note 13.   Leases

Capital leases include a Federal Detention Center (25 year lease term) and an airplane hangar (20 year lease term) in Oklahoma City, Oklahoma and a training facility (16 year lease term) in Pineville, Louisiana.

Capital Leases:

 

FY 2002

 

FY 2001

 

Summary of Assets Under Capital Lease:

 
 
 
 

Land & Buildings

 

$ 104,070

 

$ 103,910

 
 

Machinery & Equipment

 

21,889

 

4,533

 
 

Accumulated Amortization

 

(37,093)

 

(28,079)

 
     
 
 
 

Total

 

$ 88,866

 

$ 80,364

 
     
 
 

Future Payments Due:

 
 
 
 

Fiscal Year

 

Building

 

Equipment

 

Total

 

2003

 

$ 10,577

 

$ 4,732

 

$ 15,309

 

2004

 

10,577

 

2,739

 

13,316

 

2005

 

10,577

 

797

 

11,374

 

2006

 

10,577

 

441

 

11,018

 

2007

 

10,577

 

130

 

10,707

 

After 2007

 

68,434

 

-

 

68,434

     
 
 
 

Subtotal

 

$ 121,319

 

$ 8,839

 

$ 130,158

     
 
 
 

Less: Imputed Interest

 

(43,552)

 

(815)

 

(44,367)

     
 
 
 

FY 2002 Net Capital Lease Liability

 

$ 77,767

 

$ 8,024

 

$ 85,791

     
 
 
 

FY 2001 Net Capital Lease Liability

 

$ 81,704

#

$ 1,971

 

$ 83,675

     
 
 
     
 

FY 2002

 

FY 2001

 

Net Capital Leases Liability Covered by Budgetary Resources

 

$ 3,465

 

$ 676

 

Net Capital Leases Liability Not Covered by Budgetary Resources

 

$ 82,326

 

$ 82,999

     
 
 
     
 
 
     
 
 

Operating Leases:

 
 
 

Future Operating Lease Payments Due:

 
 
 
 

Fiscal Year

 

Buildings

 

Equipment

 

Total

 

2003

 

$ 1,256,004

 

$ 20,792

 

$ 1,276,796

 

2004

 

1,358,523

 

21,240

 

1,379,763

 

2005

 

1,458,802

 

21,919

 

1,480,721

 

2006

 

1,564,949

 

22,732

 

1,587,681

 

2007

 

1,682,082

 

23,626

 

1,705,708

 

After 2007

 

3,481,250

 

60,984

 

3,542,234

     
 
 
 

Total Future Lease Payments

 

$ 10,801,610

 

$ 171,293

 

$ 10,972,903

     
 
 

 

The majority of space occupied by the Department is leased from the General Services Administration (GSA).  The space is assigned to the Department by the GSA based on the Department’s square footage requirements.  The rent charged to the Department is intended to approximate commercial rates. Most of these leases may be terminated without incurring termination charges, however, it is anticipated that the Department will continue to lease space from the  GSA in future years.  Total future operating lease payments of $10,972,903 include GSA leases.

Operating leases have been established for multiple years.  Many of the operating leases that expire over an extended period of time include an option to purchase the equipment at the current fair market value, or to renew the lease for additional periods.  Approximately $10,801,610 was for office space, parking facilities, and warehouses, and the remainder for office equipment and vehicles.  Vehicles are leased from vendors for 12 months or less.                                      

Note 14.  Other Liabilities

         

FY 2002

 

FY 2001

Intragovernmental Liabilities

 
 
 

Other Accrued Liabilities

 

$ 159

 

$ 627

 

Employer Contributions and Payroll Taxes

66,750

 

120,573

 

Advances from Others

 

187,638

 

130,208

 

Advances from Others (Non - Current)

 

5,971

 

3,852

 

Liability for Deposit Fund, Clearing

 
 
 

Accounts & Undeposited Collections

 

19,586

 

31,734

     

Resources Payable to Treasury

 

-

 

-

 

Other Liabilities

 

6,667

 

198,004

     
 
   

Total Intragovernmental

 

286,771

 

484,998

         
 

Other Accrued Liabilities

 

2,635

 

2,293

Advances from Others

 

5,378

 

6,290

Liability for Deposit Fund, Clearing

 
 

Accounts & Undeposited Collections

 

272,119

 

236,992

Other Actuarial Liabilities

 

-

 

-

Accounts Payable Canceled

 

-

 

-

Custodial Liabilities

 

34,220

 

43,530

Other Liabilities

 

8,896

 

11,494

   
 
   

Total With the Public

 

323,248

 

300,599

       
 

Total Other Liabilities

 

$ 610,019

 

$ 785,597

         
 

 

Intragovernmental other liabilities primarily represent civil debt collections where the Treasury General Fund is designated as the recipient of either a portion of a collection or the entire amount of a collection.

Note 15.  Liabilities Not Covered by Budgetary Resources

       

FY 2002

 

FY 2001

Intragovernmental

 
 
 

Custodial Liability

 

$ 232,731

 

$ 269,054

 

Accrued FECA Liability

 

216,852

 

201,154

 

Other Liabilities (Note 14)

 

7,614

 

2,904

     
 
   

Total Intragovernmental

 

457,197

 

473,112

       
 

Environmental Cleanup Cost

 

235

 

352

FECA Actuarial Liabilities

 

1,204,284

 

1,193,590

Accrued Annual and Compensatory Leave

 

628,818

 

590,331

Capital Lease Liabilities (Note 13)

 

82,326

 

82,999

Contingent Liabilities (Note 16)

 

142,996

 

73,909

Deferred Revenue

 

1,223

 

1,175

Other Liabilities (Note 14)

 

37,280

 

46,394

   
 
   

Total With the Public

 

2,097,162

 

1,988,750

       
 
 

Total Liabilities Not Covered by Budgetary Resources

 

2,554,359

 

2,461,862

 

Total Liabilities Covered by Budgetary Resources

 

4,986,496

 

4,840,272

     
 
 

Total Liabilities

 

$ 7,540,855

 

$ 7,302,134

       
 

 


Generally, liabilities not covered by budgetary resources are liabilities for which Congressional action is needed before budgetary resources can be provided.  However, some of the liabilities not covered by budgetary resources do not require appropriations and will be liquidated by the assets of these entities.  They include civil and criminal debt collections and revolving fund operations.

Note 16.  Contingencies and Commitments

The Department is party to various administrative proceedings, legal actions, and claims, including environmental damage claims, equal opportunity matters, and contractual bid protests.  The balance sheet includes an estimated liability for those legal actions where adverse decisions are considered "probable" by the Chief Counsel.  Management has determined that it is probable that some of these proceedings and actions will result in the incurrence of liabilities, and the amounts are reasonably estimable.  The estimated liability for these cases for FYs 2002 and 2001 were $142,996 and $73,909, respectively and recorded in the financial statements. There also are legal actions pending where adverse decisions are considered to be reasonably possible.  The range for potential loss is undetermined at this time.

Note 17.  Future Funding Requirements

The total liabilities not covered by budgetary resources presented in Note 15 for FYs 2002 and 2001 of $2,554,359 and $2,461,862, respectively do not equal the Components of net cost of operations requiring or generating resources in future periods on the Statement of Financing for FYs 2002 and 2001 of $93,947 and $250,725, respectively.  Total components requiring or generating resources in future periods on the Statement of Financing include only current unfunded expense amounts and increases in exchange revenue receivable from the public, while the unfunded liabilities included on the Balance Sheet represent both current and prior year unfunded expense amounts including the unfunded annual and compensatory leave balances for FYs 2002 and 2001 of $628,818 and $590,331, respectively. The actuarial/accrued FECA liability for FYs 2002 and 2001 were  $1,421,136 and $1,394,744, respectively.

Note 18.  Imputed Financing Source

Imputed financing recognizes actual cost of future benefits, the Federal Employees Health Benefits Program (FEHB), the Federal Employees Group Life Insurance Program (FEGLI), and the Pension that are paid by other Federal entities.  The Treasury Judgment Fund was established by the Congress and funded at 31 U.S.C. 1304 to pay in whole or in part the court judgments and settlement agreements negotiated by the Department on behalf of agencies, as well as certain types of administrative awards.  Interpretation of SFFAS No. 2, "Accounting for Treasury Judgment Fund Transactions,” requires agencies to recognize liabilities and expenses when unfavorable litigation outcomes are probable and the amount can be estimated and will be paid by the Treasury Judgment Fund. 

SFFAS No. 5, “Accounting for Liabilities of the Federal Government,” requires that employing agencies recognize the cost of pensions and other retirement benefits during their employees active years of service.  SFFAS No. 5 requires OPM to provide cost factors necessary to calculate cost.  OPM actuaries calculate the value of pension benefits expected to be paid in the future, and then determine the total funds to be contributed by and for covered employees.  For FERS and CSRS employees, OPM calculated that 11.5 (24.6 law enforcement) percent and 24.2 (40.0 law enforcement) percent respectively of each employee’s salary would be sufficient to fund these projected pension benefits.

The cost to be paid by other agencies is the total calculated future costs, less employee and employer contributions.  In addition, other retirement benefits which include the Federal Employees Health Benefits Program (FEHB) and the Federal Employees Group Life Insurance Program (FEGLI) that are paid by other Federal entities must also be disclosed.   

Imputed financing sources:

   

FY 2002

 

FY 2001

   
 

Judgment Fund

 

$ 30,697

 

$ 53,416

Health Insurance

 

380,261

 

326,828

Life Insurance

 

1,281

 

1,199

Pension

 

172,632

 

193,972

   
 

Total

 

$ 584,871

 

$ 575,415

   
 

 


Note 19.  Restatements and Reclassifications

In accordance with SFFAS No. 21, “Reporting Corrections of Errors and Changes in Accounting Principles” the Department’s FY 2001 financial statements were restated as follows: 

     

As Reported

 

As Restated

 

Difference

     
 
 

Combined Statement of Budgetary Resources:

 
 
 
 

Budgetary Resources:

 
 
 
 

Budget Authority

 

$ 22,825,163

 

$ 24,660,397

 

$ 1,835,234

 

Unobligated Balance

 

$ 4,185,860

 

$ 4,401,675

 

$ 215,815

 

Spending Authority from Offsetting

 
 
 
 

Collections

 

$ 5,599,326

 

$ 5,629,602

 

$ 30,276

 

Other

 

$ (314,120)

 

$ (512,507)

 

$ (198,387)

     
 
 
 

Status of Budgetary Resources:

 
 
 
 

Obligations Incurred

 

$ 29,332,372

 

$ 31,062,922

 

$ 1,730,550

 

Unobligated Balances

 

$ 2,963,857

 

$ 3,116,245

 

$ 152,388

     
 
 
 

Outlays

 

$ 21,612,063

 

$ 23,312,338

 

$ 1,700,275

     
 
 
 

Unobligated Balance, End to Beginning

 

$ 3,116,245

 

$ 3,118,516

 

$ 2,271

     
 
 

 

In FY 2001, the INS presented a consolidated Statement of Budgetary Resources (SBR), where their Fee Accounts and Salaries & Expense Accounts were combined and intra-fund reimbursement transactions were eliminated.  The INS SBR was restated to reflect the Fee Accounts as a separate fund type from the Salaries and Expense Accounts.  The restatement increased Total Budgetary Resources and Status of Resources by $1,716,662.  In addition, amounts appropriated to INS by Treasury related to H1-B custodial collections were also adjusted to be reflected as offsetting receipts.  The USMS also presented a consolidated SBR in FY 2001 and accordance with OMB Bulletin No. 01-09, “Form and Content of Agency Financial Statements,” restated the SBR to a combined presentation.

As a result of the restatements discussed above, similar restatements were made to the Statement of Financing to account for these errors.

The Department has fully implemented the provisions of OMB Bulletin No. 01-09 that became effective in FY 2002 and substantially changed the presentation of the Statement of Changes in Net Position and the SBR.  As a result, the Department’s FY 2001 SBR, as discussed below, was reclassified to account for changes in financial presentation.   

In FY 2001, the OBD’s Radiation Exposure Trust Fund received $126,641 in appropriations to pay eligible claimants who suffered certain injuries during the 1950s as a result of atmospheric nuclear tests and radiation in underground uranium mines.  The appropriation was originally credited to an annual fund but was then transferred to a no-year expenditure fund to be disbursed to eligible claimants.  In accordance with OMB Bulletin No. 01-09, the OBD’s reclassified $126,617 in transfers to the following SBR line items: Appropriations Received, Obligations Incurred, Outlays, and Offsetting Receipts.  Although the reclassification increased the OBD’s FY 2001 budgetary resources and obligations incurred by $126,617, it had no net effect on the total resources provided or used to pay claims during FY 2001.

Additionally, a change in accounting treatment related to OJP transfers to the Department of Health and Human Services (HHS) is reflected in the change from the FY 2001 unobligated balance ending to the FY 2002 unobligated balance beginning. 

Note 20.  Consolidated Gross Cost and Earned Revenue by Budget Functional Classification

Consolidated Cost and Earned Revenue by Budget Functional Classification

     
 
 
     

Gross
Costs

 

Earned
Revenue

 

Net
Costs

Budget Functional Classification

       

Fiscal Year Ended September 30, 2002

 
 
 

National Defense

050

 

$ 224,614

 

$ -

 

$ 224,614

International Affairs

150

 

946

 

-

 

946

Administration of Justice

750

 

27,889,711

 

(3,492,571)

 

24,397,140

     
 
 

General Government

800

 

15

 

-

 

15

     
 
 

Total

   

$ 28,115,286

 

$ (3,492,571)

 

$ 24,622,715

     
 
 

Fiscal Year Ended September 30, 2001

 
 
 

National Defense

050

 

$ 58,067

 

$ -

 

58,067

International Affairs

150

 

812

 

-

 

812

Administration of Justice

750

 

24,504,014

 

(3,425,583)

 

21,078,431

General Government

800

 

32

 

-

 

32

     
 
 

Total

   

$ 24,562,925

 

$ (3,425,583)

 

$ 21,137,342

     
 
 
     
 
 

Intragovernmental Gross Cost and Earned Revenue by Budget Functional Classification

     
 
 
     

Gross
Costs

 

Earned
Revenue

 

Net
Costs

Budget Functional Classification

       

Fiscal Year Ended September 30, 2002

 
 
 

National Defense

050

 

$ 1,052

 

$ -

 

$ 1,052

International Affairs

150

 

375

 

-

 

375

Administration of Justice

750

 

5,967,185

 

(1,235,665)

 

4,731,520

     
 
 

Total

   

5,968,612

 

(1,235,665)

 

4,732,947

     
 
 

Total

   

$ 11,937,224

 

$ (2,471,330)

 

$ 9,465,894

     
 
 

Fiscal Year Ended September 30, 2001

 
 
 

National Defense

050

 

$ 1,484

 

$ -

 

$ 1,484

International Affairs

150

 

492

 

-

 

492

Administration of Justice

750

 

4,973,291

 

(1,129,345)

 

3,843,946

General Government

800

 

(113)

 

-

 

(113)

     
 
 

Total

   

$ 4,975,154

 

$ (1,129,345)

 

$ 3,845,809

     
 
 


Note 21.   Net Custodial Revenue Activity

Debt Collection Management (DCM) is responsible for implementing the provisions of the Federal Debt Recovery Act of 1986, which authorizes the Attorney General to contract with private counsel to help the U.S. Attorneys collect delinquent Federal civil debts.  Since FY 1994, the Attorney General has been authorized to credit the WCF up to 3 percent of the total civil cash collections to be used for paying the costs of "processing and tracking" such litigation.  DCM is responsible for the operation of the Nationwide Central Intake Facility, the private counsel pilot project, and other projects funded by the 3 percent of the civil debt collections.

The Department, through the INS, is also responsible for collections for other Federal agencies that are deposited in the U.S. Treasury. These collections are reported on the Statement of Custodial Activity. The largest of these collections in the Custodial Statement relates to the $1,000 fee paid by employers sponsoring nonimmigrant petitioners for employment authorization in accordance with Section 214(c)(9) of the INA. In accordance with the enacting legislation, these monies are deposited by the INS directly to the Nonimmigrant Petitioner Account in the General Fund of the US Treasury who distributes these collections (via Treasury warrant) to the Department of Labor and the National Science Foundation with four percent transferred back to the INS.

In general, SFFAS No. 7, “Accounting for Revenue and Other Financing Sources” requires that agencies collecting exchange revenue report such revenue on the Statement of Net Cost regardless of whether the entity retains the revenue for its own use or transfers to others.  SFFAS No. 7 does, however, provide for an alternative treatment in certain exceptional circumstances such as when the reporting entity recognizes virtually no costs in connection with collecting the revenue. In such cases where the entity collects these amounts on behalf of others, entities are to report such exchange revenue as custodial activity.

The Department believes the H1-B nonimmigrant petitioner collections meet the requirement of the exception to the general standard, and have reported these collections as custodial activity. To ensure that INS is reporting the H1-B collection in accordance with the accounting standards, an interpretation is being requested from the FASAB. Should FASAB determine that the INS needs to report this activity differently, the Department will include these collections on the Statement of Net Cost and show the respective transfer out on the Statement of Changes in Net Position.

During the periods reported the DEA and INS also collected fines, penalties, and restitution payments that were incidental to their missions.  Since these agencies have no statutory authority to use the funds they are transmitted to the Treasury’s General Fund upon receipt.

Note 22.   Permanent Indefinite Appropriations

A permanent indefinite appropriation is open-ended as to both its period of availability (amount of time the agency has to spend the funds) and its amount.  Congress enacted a permanent indefinite appropriation to fund the expenses of Independent Counsel investigations and prosecutions in the 1988 Department of Justice Appropriations Act (P.L. 100-202).  Under this appropriation, all necessary costs and expenses incurred in the pursuit of these investigations were funded from amounts available in the Treasury.  On June 30, 1999, the Reauthorization Act of 1994 expired.  To date there has been no reauthorization; however, several investigations are on going.  This account also pays for appointed Special Counsel.

Note 23.   Statement of Budgetary Resources vs Budget of the United States Government

     

Budgetary
Resources

 

Obligations
Incurred

 

Outlays

As of September 30, 2001 (Restated)

     
     
 
 

Statement of Budgetary Resourses (SBR)

 

$ 34,179,000

 

$ 31,063,000

 

$ 23,312,000

     
 
 

Funds not Reported in Budget of the U.S.:

 
 
 
 

USMS Court Security Funds

 

(216,000)

 

(203,000)

 

(207,000)

 

OBDs Health Care Fraud and Abuse Funds

 

(53,000)

 

(42,000)

 

(37,000)

 

DEA, FBI and BOP Expired Funds

 

(297,000)

 

(142,000)

 

-

 

INS and USMS Recovery of PY Obligations

 

(609,000)

 

(497,000)

 

-

 

INS Fee Account Offsetting Receipts

 

(1,709,000)

 

(1,565,000)

 

-

     
 
 

Other

 

(55,000)

 

21,000

 

66,000

     
 
 

Budget of the United States (excluding Full

 
 
 
 

Funding for Federal Retiree Costs)

 

$ 31,240,000

 

$ 28,635,000

 

$ 23,134,000

     
 
 

Full Funding for Federal Retiree Costs

 

534,000

 

534,000

 

484,000

     
 
 

Budget of the United States

 

$ 31,774,000

 

$ 29,169,000

 

$ 23,618,000

     
 
 

 

The reconciliation as of September 30, 2002 is not presented, because the submission of the Budget of the United States occurs after publication of these financial statements.  The Department of Justice Budget Appendix can be found on the OMB website (http://www.whitehouse.gov/omb/budget) and will be available in early February 2003.

Other differences represent financial statement adjustments, timing differences and other immaterial differences between amounts reported in the Department SBR and the Budget of the United States.

In addition to the above, a reconciliation with the SF-133, “Report on Budget Execution and Budgetary Resources”, was also performed and confirmed that differences between the Statement of Budgetary Resources and the SF-133 are also the result of the adjustments identified above.

Note 24.   Apportionment Categories of Obligations Incurred

               

Total
Obligations
Incurred

       

Direct
Obligations

 

Reimbursable
Obligations

 
           

Fiscal Year Ended September 30, 2002

         
 

Obligations Apportioned Under:

         
   

Category A

 

$ 26,615,809

 

$ 5,877,342

 

$ 32,493,151

   

Category B

 

1,649,560

 

6,164

 

1,655,724

       
 
 
 

Total

 

$ 28,265,369

 

$ 5,883,506

 

$ 34,148,875

       
 
 

Fiscal Year Ended September 30, 2001

         
 

Obligations Apportioned Under:

         
   

Category A

 

$ 24,168,642

 

$ 5,265,702

 

$ 29,434,344

   

Category B

 

1,622,512

 

6,066

 

1,628,578

       
 
 
 

Total

 

$ 25,791,154

 

$ 5,271,768

 

$ 31,062,922

       
 
 

 

Category A obligations represent resources apportioned for calendar quarters.  Category B obligations represent resources apportioned for other time periods; for activities, projects, objectives or for combination there of.

Note 25.  Dedicated Collections

In 1984, Congress enacted the Victims of Crime Act (VOCA), which authorized the establishment of a Crime Victims Fund and direct services programs and national-scope training and technical assistance efforts on behalf of crime victims.  In support of VOCA, OJP provides federal leadership for the rights and needs of crime victims through policy development, funding promising practices, monitoring compliance with federal victims’ rights statutes, public awareness, and educational activities intended to promote justice for crime victims. The funds or revenue are inflows from the public provided by U.S. Courts, Army, Debt Management and collections for criminal fines. FYs 2002 and 2001 condensed financial information about assets, liabilities, net position, gross cost, exchange revenues and net cost of operations is presented below:

   

FY 2002

 

FY 2001

   
 

Assets:

 
 

Fund Balance with U.S. Treasury

$ 2,097,678

 

$ 2,062,584

 

Other Assets

8,561

 

-

Liabilities

60,360

 

53,088

Net Position

2,045,879

 

2,009,496

Gross Cost of Operations

561,610

 

453,561

Exchange Revenues

469

 

281

Net Cost of Operations

561,141

 

453,280

   
 

 


Note 26.  Allocation Transfers of Appropriation

During both FY 2002 and 2001, the Department transferred $17,000 for the Crime Victims Fund to HHS.  This transfer is required by law and is used for child abuse prevention and treatment grants.  These amounts are obligated and expended by the Secretary of HHS for grants.  However, because the amounts transferred to HHS are not material to HHS they are included as part of these financial statements.  

28 U.S.C. §524(c)(9)(E) provides authority for the Attorney General to use excess end-of-year monies, without fiscal year limitation, in the AFF for authorized purposes of the Department of Justice.  For 2002 and FY 2001 transfers of $18,937 and 17,302 were made, respectively.  In addition, during FY 2002 and FY 2001, the AFF transferred out forfeited property for official use of $6,134 and $7,747.

The Department also allocated funds from BOP to Public Health Services (PHS) that provides a portion of medical treatment for federal inmates.  The money is designated and expended for current year obligation of PHS staff salaries, benefits, and applicable relocation expenses.  The amounts transferred to PHS are not material to PHS and are therefore included as part of these financial statements.

Note 27.  Status of the September 11th Victim Compensation Fund

The Air Transportation Safety and System Stabilization Act of 2001 (P.L. 107-42) created the September 11th Victim Compensation Fund to provide compensation to those physically injured or to personal representatives of those killed as a result of the terrorist attacks of September 11, 2001.  It created a program that is administered by a Special Master appointed by the Attorney General.  Its mission is to fairly and expeditiously resolve claims, consistent with the Act and associated regulations.  All claims must be filed within two years of the publication of regulations.

The Act established an indefinite appropriation for making payments on approved claims.  The Department of Justice received appropriations of $486,000 for FY 2002, however $354,000 was not required for the period and was made permanently not available.  Through the end of FY 2002, 728 claims for compensation were submitted.  Some of these claims sought initial benefits, resulting in initial payments totaling $3,925.  A total of 52 final benefit award letters were sent to claimants.  Claimants have 21 days to accept the award or request a hearing.  Through FY 2002, 12 final benefit claims were paid, for a total of $16,275.  In total, initial and final benefit payments of $20,200 were disbursed in FY 2002.  Summarized financial information about appropriated funds received, donations received from the public, benefit payments disbursed and payable, and the Fund balance is presented below:

Appropriated Funds Received

 

$ 132,000.0

Donations Received From The Public

 

0.4

   

Total Funding

 

132,000.4

Less: Benefit Payments Disbursed

 

20,200.4

   

Fund Balance Remaining With Treasury

 

$ 111,800.0

   

Accounts Payable

 

$ 39,996.8

     

 

Note 28.  OMB Form and Content Consolidated Balance Sheet Presentation

DEPARTMENT OF JUSTICE

Consolidated Balance Sheets

As of September 30, 2002 and 2001

               

Dollars in Thousands

 

2002

 

2001

               

ASSETS

       
 

Intragovernmental

       
   

Fund Balance with U.S. Treasury

 

$ 20,863,080

 

$ 19,835,320

   

Investments, Net

 

1,291,472

 

1,398,665

   

Accounts Receivable, Net

 

243,046

 

232,516

   

Other

 

106,249

 

83,509

       
 
 

Total Intragovernmental

 

22,503,847

 

21,550,010

         
 
 

Accounts Receivable, Net

 

182,983

 

116,805

 

Cash and Other Monetary Assets

 

115,956

 

132,303

 

Inventory and Related Property

 

196,367

 

178,642

 

General Property, Plant and Equipment, Net

 

7,429,863

 

6,476,848

 

Other Assets

 

714,791

 

869,633

     
 

Total Assets

 

$ 31,143,807

 

$ 29,324,241

         
 

LIABILITIES

       
 

Intragovernmental

       
   

Accounts Payable

 

$ 328,437

 

$ 268,485

   

Debt

 

20,000

 

20,000

   

Other

 

741,097

 

957,432

       
 
 

Total Intragovernmental

 

1,089,534

 

1,245,917

         
 
 

Accounts Payable

 

2,368,765

 

1,991,875

 

Environmental and Disposal Liabilities

 

2,933

 

5,101

 

Contingent Liabilities

 

142,996

 

73,909

 

Other

 

3,936,627

 

3,985,332

     
 

Total Liabilities

 

$ 7,540,855

 

$ 7,302,134

         
 

NET POSITION

       
 

Unexpended Appropriations

 

$ 14,835,234

 

$ 14,125,349

 

Cumulative Results of Operations

 

8,767,718

 

7,896,758

     
 

Total Net Position

 

$ 23,602,952

 

$ 22,022,107

         
 

Total Liabilities and Net Position

 

$ 31,143,807

 

$ 29,324,241

         
 

 

Note 29.  Subsequent Events

On November 25, 2002, the President signed the Homeland Security Act of 2002, which creates a new Department of Homeland Security.  Agencies that will become part of the new department, including the Immigration and Naturalization Service and other selected functions of the Department, will be transferred some time during a one-year transition period.  In addition, the Act also transfers most of the functions of the Bureau of Alcohol, Tobacco, and Firearms from the Department of the Treasury to the Department of Justice, to create a new Bureau of Alcohol, Tobacco, Firearms, and Explosives.



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