U . S . G O V E R N M E N T P R I N T I N G O F F I C E

2 0 1 0 A N N U A L R E P O R T

March 16, 2011

The Honorable Joseph R. Biden

The President of the Senate

The Honorable John A. Boehner

The Speaker of the House of Representatives

Sirs:

I have the honor to transmit herewith the Annual Report of the U.S. Government Printing Office 

(GPO) for the fiscal year ending September 30, 2010. The report contains the results of an audit of 

GPO’s financial statements conducted by an independent accounting firm.

Respectfully submitted,

WILLIAM J. BOARMAN

Public Printer

WILLIAM J. BOARMAN

Public Printer of the United States

7 3 2 N o r t h C a p i t o l S t r e e t , N W , W a s h i n g t o n , D C 2 0 4 0 1 - 0 0 0 1 I w b o a r m a n @ g p o . g o v

U. S. G O V E R N M E N T P R I N T I N G O F F I C E 

K e e p i n g A m e r i c a I n f o r m e d I w w w . g p o . g o v
2

GPO and Open Government

GPO has embraced various technological 

changes and methods to provide the 

public an open and transparent view 

of the workings of their Government. 

GPO’s Federal Digital System (FDsys) 

www.fdsys.gov is the one-stop site 

for authentic, 

published 

Government 

information. In 2010, as lawmakers 

passed historic health care and financial 

reform legislation, the public was able 

to view the bills and other legislative 

actions on FDsys. Since the early 1990s, 

GPO has maintained a depository 

of Federal Government information 

through GPO Access. The migration of 

information from GPO Access into FDsys 

has been completed.

In 2010, GPO and the Office of the 

Federal Register (OFR) accomplished 

a major milestone in open 

Government by launching 

Federal Register 2.0 (www.

federalregister.gov), a 

user-friendly online version of the 

Federal Register. This daily journal of 

Government has provided the public 

with access to Federal regulations and 

other documents for the past 75 years. 

Federal Register 2.0 features a new 

layout that organizes the content by 

topics similar to a newspaper Web site. 

The site displays individual sections for 

Money, Environment, World, Science 

and Technology, Business and Industry, 

and Health and Public Welfare. The Web 

site has improved search and navigation 

tools to guide readers to the most 

popular topics and relevant documents. 

GPO coordinated the development 

aspects of the new Web site in 

collaboration with OFR. FDsys feeds 

content into Federal Register 2.0 and 

acts as the holder of official content and 

archived information. GPO partners with 

OFR to provide the information in the 

Federal Register to the American people 

in both print and electronic form.

GPO and OFR made another open 

Government achievement by converting 

The Code of Federal Regulations (CFR) 

into XML (extensible markup language) 

and placing it online on Federal 

Government sites, which include FDsys 

and the site for Government data (www.

data.gov). CFR is the codification of the 

general and permanent rules published 

in the Federal Register by the executive 

departments and agencies of the Federal 

Government.

Plant Operations and 

Official Journals of Government

Employees in GPO’s Plant and Official 

Journals of Government business units 

are responsible for print services in 

support of the Congress, OFR, and 

other Federal agencies. Employees print 

the Congressional Record, House and 

Senate business calendars, congressional 

reports, bills and hearings, the Federal 

Register, the Code of Federal Regulations,

and the Budget of the United States 

Government, along with other essential 

documents.

The winter of 2010 showed the 

dedication of GPO’s employees. The 

Washington, D.C., area was hit by two 

blizzards in a week during February, 

which caused the Federal Government 

to close for four days. As the region 

dug out from more than two feet of 

snow, 200 GPO employees braved the 

elements to produce materials for the 

White House and Congress, delivering 

The Economic Report of the President, the 

Congressional Record, and the Federal 

Register on time throughout the week.

Print Procurement

GPO’s Print Procurement business unit 

works with Federal agencies to procure 

75 percent of GPO’s printing jobs from 

the private sector printing industry. The 

procurement of commercially obtainable 

Above: Printing Plant workers Laurie Ridgley (left) and Bernell Brown (right) package a congressional bill. 

Right: Second Web Pressperson Mark Zara (left) and Head Web Pressperson Williams Sands (right) operate a 

press in GPO’s plant.
3

Federal printing has been a staple of our 

operations since the Second World War. 

GPO has a longstanding partnership 

with the printing industry to provide for 

the Government’s printing needs.

GPO competitively buys products 

and services from thousands of private 

sector firms nationwide in one of 

the Government’s most successful 

procurement programs, assuring the 

most cost-effective use of the taxpayer’s 

printing dollar. The vast majority of the 

printing contracts GPO awards go to 

small businesses, supporting this vital 

sector of America’s economy.

By working with GPO’s Print 

Procurement business unit, Federal 

agencies ensure that Government 

publications and information products 

will be made available for dissemination 

to the public, and helps ensure 

compliance with laws and policies 

concerning recycled paper, vegetable 

oil-based inks, and other environmental 

requirements.

A variety of products are procured through 

GPO’s Print Procurement. 
4

One of GPO’s largest procurements 

was the 2010 Census. GPO, the Census 

Bureau, the U.S. Postal Service (USPS), 

and the private sector printing industry 

worked together to print and deliver the 

2010 Census to 120 million American 

households. GPO partnered with the 

Census Bureau to competitively procure 

nearly $110 million worth of Census 

materials to more than 120 printers 

throughout the country. Some of the 

contracts awarded include production of 

the main Census packages consisting of 

questionnaires, letters, and envelopes; 

advance letters and reminder postcards; 

and questionnaires that were used by 

enumerators going house to house. 

GPO participated with Census in a 

comprehensive quality control program 

to monitor the printing, addressing, 

inserting, and envelope manufacturing at 

contractor facilities.

Agency Accounts and Marketing

GPO’s Agency Accounts and Marketing 

(AAM) business unit educates Federal 

customers about the services the 

agency’s Plant, Print Procurement, and 

Creative Services can provide. The 

Marketing division works internally with 

the agency’s business units to develop 

and analyze GPO’s many services to 

thousands of Federal entities. Through 

GPO’s Creative Services 

has more than 13 full time 

designers on staff. Each 

award winning designer 

is versed in illustration, 

book/journal/report 

design, branding, corporate 

communications, 

promotional mediums, 

editorial design, 

multimedia (web, video and 

animation), photography, 

and top security design. 

With more than 80 

Federal agency customers 

including Congress, GPO’s 

design team services any 

Federal agency interested 

in obtaining top-of-theline innovative and custom 

design applications.

G P O P r i n t P r o c u r e m e n t O f f i c e s

http://www.gpo.gov/customers/print

Central Office

732 N Capitol Street, NW

Chicago Regional Office

200 North La Salle Street, Suite 810

San Antonio Regional Office

1531 Connally Street, Suite 2

Hampton Regional Office

11836 Canon Boulevard, Suite 400

Office Location

San Antonio

AK

HI

WA

OR

MT

ID

NV

CA

UT

WY

CO

AZ NM

KS

NE

SD

ND MN

IA

MO

OK

TX

AR

LA

WI

MI

IL

IN

OH

WV

KY

TN

MS AL

FL

NC

SC

VA

PA

NY

MD DE

NJ

CT RI

MA

NH

VT

ME

Dallas

Oklahoma City

Atlanta

Columbus Philadelphia

Washington Central Office

Hampton

Charleston

New York

Boston

Chicago

GA

Seattle

San Francisco

San Diego

Denver

✪

G P O P r i n t P r o c u r e m e n t O f f i c e s
5

social media, direct mail, and inventive 

promotional outlets, GPO Marketing 

generates overall brand management, 

marketing strategy, and customer 

solutions.

National Account Managers (NAMs) 

are the sales force of GPO and the first 

stop for new customers. NAMs are 

an integral part of GPO’s sales 

and marketing team and spend 

much of their time with GPO’s 

Federal agency customers. GPO 

has NAMs in its central office that 

facilitate the needs of the Federal 

agencies in the Washington, D.C., 

metropolitan area, as well as a 

nationwide team of NAMs that service 

regional offices across the nation. 

Wherever a customer is located, 

GPO strategically and conveniently 

has a NAM available to assist. 

During 2010, GPO’s AAM team 

developed an educational series of 

national road shows targeted to educate 

agency customers. With over 60 events 

throughout the year, GPO trained 

more than 800 customers on How to do 

Business with GPO including insights to 

billing procedures, forms completion, 

procurement tips and tricks, and feature 

series on individual business solutions. 

Over 40 percent of the attendees were 

new agency customers to GPO.

GPO’s AAM team is also responsible 

for the management of the GPOExpress

program. With almost 4,000 individual 

Federal users, GPOExpress partners the 

national network of FedEx Offices with 

GPO. This year saw the addition of the 

GPOExpress DocStore Catalog solution, 

which is the premier application for print 

professionals allowing users to access 

online catalogs of publications for print 

and distribution through any FedEx 

Office location nationwide, thereby 

eliminating warehousing and shipping 

costs for Federal customers.

GPO installs banners advertising its renovated 

bookstore.
Publication and Information Sales

GPO’s Publication and Information Sales 

business unit sells select Government 

print and electronic publications to the 

public. Some of the publications are 

available for sale through commercial 

sales channels, including chain and 

online bookstores and major book 

wholesalers. Throughout 2010, this 

business unit embraced a new kind of 

marketing through social media, but 

one of the biggest transformations was 

the renovation of GPO’s bookstore in 

Washington, D.C.

In August 2010, GPO opened the 

doors to its renovated bookstore, the 

only bookstore in the Nation’s capital 

that exclusively sells Federal Government 

publications. The renovation of the 

bookstore was done entirely by GPO 

employees. The agency’s Creative 

Services department designed the 

new facility with a modern look and 

feel, similar to popular commercial 

bookstores. The designers incorporated 

a large mural depicting the history and 

evolution of printing. Employees in 

GPO’s Facilities division renovated the 

Nick Crawford created 

illustrations and Jim 

Cameron wrote the 

story for GPO’s first 

educational comic book.

bookstore from floor to ceiling. The 

public can use the new North Capitol 

Street facility to browse titles on military, 

history, health, and other subjects, 

even children’s books. The shelves also 

contain congressional reports, hearings, 

bills, and the Budget of the United States 

Government. The new bookstore features 

a computer 

kiosk where 

customers can 

check an online 

catalog and 

order any book 
7

on the inventory list. The public also can 

view titles at GPO’s online bookstore: 

http://bookstore.gpo.gov.

In addition to using the social 

media sites YouTube and Twitter, 

GPO’s Publication and Information 

Sales business unit launched an award 

winning Government book blog in 2010 

to bring greater attention to Federal 

publications. Government Book Talk

reviews new and popular publications, 

provides information about new 

publications, discusses some out-of-print 

classics, and updates readers on GPO’s 

information dissemination activities. 

The blog includes information on 

everything from the health care reform 

legislation to older publications such as 

Department of Agriculture pamphlets 

from the 1920s. Nearly 1,000 subscribers 

are following Government Book Talk: 

http://govbooktalk.gpo.gov/.

One of the publications discussed on 

Government Book Talk was GPO’s first 

comic book, Squeaks Discovers Type!

The comic book was created by GPO 

employees as a teaching tool for children 

of all ages. The plot of the comic book 

takes a unique approach to educate 

readers on the important role printing has 

played from the beginnings of civilization 

to today’s digital world. The story centers 

around a video game space mouse, 

Squeaks, who helps an elementary school 

student discover the invention of printing 

and its evolution through the ages so he 

can write a report.

The Publication and Information 

Sales business unit won awards for 

developing creative techniques in 

promoting Government publications. 

The group won a Silver Inkwell Award 

from the Washington, D.C., chapter of 

the International Association of Business 

Communicators (IABC) in the electronic 

and interactive materials category for the 

Government Book Talk blog.

GPO’s Public Documents Distribution 

Center in Pueblo, CO also received 

accolades for its customer service. 

The American Customer Satisfaction 

Index (ACSI) measured the customer 

satisfaction of more than 200 companies 

and Government agencies. GPO’s Pueblo 

facility achieved a score of 85 points for 

order processing with complaints of only 

one percent. The average Government 

score was 69 points. ACSI surveyed 

customers on their satisfaction with 

phone, Web, and mail orders.

Employees at Pueblo’s Public 

Documents Distribution Center 

work with the General Services 

Administration’s Federal Citizen 

Information Center to process customer 

orders. The center is responsible for 

processing and distributing orders for 

consumer publications.

Library Services and 

Content Management

GPO has a partnership 

with more than 1,200 

depository libraries 

throughout the country to provide 

the public with access to Government 

publications. The Federal Depository 

Library Program (FDLP) was established 

by Congress to ensure the public has 

access to Government information. 

Depository libraries safeguard the 

public’s right to know by collecting, 

organizing, maintaining, preserving, and 

assisting patrons with information from 

the Federal Government. As institutions 

committed to equity of access and 

dedicated to free and unrestricted public 

use, depository libraries serve as one of 

the vital links between “We the People” 

and our Government.

GPO is working with libraries around 

the country to meet President Obama’s 

challenge to Federal agencies to create a 

more open and transparent Government. 

In 2010, GPO developed a partnership 

with Cornell University Law School to 

conduct a year long pilot project to 

evaluate the conversion process of the 

Code of Federal Regulations (CFR) into 

XML (extensible markup language) 

format. Cornell will convert various 

titles into XML and place them on the 

university’s Web site for students to 

research. GPO and Cornell will apply 

lessons learned from this pilot project and 

share the information with members of 

FDLP to find ways of providing the public 

openness to Government documents. 

FDsys is instrumental in enabling this 

enhanced capability for the CFR.

GPO also entered a partnership with 

the Association of Schools of Public 

Health to provide electronic access to 

public health reports. More than 700 

GPO’s Publications and Information Sales business 

unit won an award for using March Madness brackets 

as a way to promote government publications.

A page from GPO’s Government Book Talk.
8

depository libraries now have electronic 

access to this journal.

Preservation has been a key 

component in the partnership between 

GPO and the library community. To 

further that partnership in 2010, GPO 

joined a worldwide digital preservation 

alliance to further collaborate with 

Federal depository libraries on 

preservation initiatives. LOCKSS (Lots 

of Copies Keep Stuff Safe) provides 

libraries with digital preservation tools 

and support so they can collect and 

preserve their own copies of authorized 

electronic content. GPO’s participation 

in LOCKSS will support development 

efforts by libraries that utilize LOCKSS. 

GPO also established the agency’s 

first preservation librarian position to 

update the FDLP collection management 

plan for the preservation of Federal 

Government documents.

To help meet the challenge 

of the digital age, GPO has been 

implementing digital signatures to 

electronic documents on GPO Access

and FDsys that provide the assurance 

that an electronic document has not 

been altered since GPO disseminated 

it. A digital signature, viewed through 

the GPO Seal of Authenticity, verifies 

document integrity and authenticity on 

GPO online Federal documents. FDsys 

is continuing with the essential work of 

authenticating U.S. Government online 

publications. GPO continues to be a 

leader within the Federal Government 

for document authentication.

Security and Intelligent Documents 

GPO’s Security and Intelligent 

Documents business unit combines 

security printing with secure electronics 

to provide Federal agencies with the 

most trusted credentials in Government. 

The gold standard of secure Federal 

credentials is the U.S. passport.

GPO manufactures passports in 

conjunction with the DOS at two 

locations in the United States: GPO’s 

secure plant in Washington, D.C., and 

GPO’s secure production facility on the 

grounds of the Stennis Space Center 

in Mississippi. The Stennis facility 

achieved a milestone in 2010 by earning 

an ISO 9001 certification, a global 

manufacturing and quality certification. 

ISO is the International Organization for 

Standardization and the world’s largest 

developer of international standards 

used by Government, business, and new 

information technology companies and 

agencies. These globally recognized 

standards of excellence for production 

and quality processes assure customers 

that the agency or company meets 

their expectations. Since 2008, when 

Today, the passport 

includes an electronic chip 

that contains the same 

information that is printed in 

the passport: name, date of 

birth, gender, place of birth, 

dates of passport issuance 

and expiration, passport 

number, and photo image 

of the traveler. The passport 

contains security features to 

prevent the chips from being 

read, cloned, or changed. 

GPO has manufactured more 

than 52 million passports with 

these electronics, which is the 

standard issued by DOS. The 

passport of the 21st century 

illustrates how GPO connects 

precision printing with secure 

electronics.
9

Building on the success of the 

passport, GPO has developed a broad 

product line of electronic and nonelectronic credentials. GPO teams 

design, print, personalize, and deliver 

credentials that are tough to counterfeit 

but easy to authenticate. GPO has 

become the place to produce secure 

credentials for Federal agencies. 

GPO works with the Department of 

Homeland Security (DHS) Customs and 

Border Protection (CBP) to produce 

Trusted Traveler Program cards. GPO 

is responsible for designing, printing, 

personalizing, and mailing the cards, 

the secure production facility began 

implementing ISO procedures and 

process improvements, the average of 

material waste dropped from 5.9 percent 

to 0.5 percent today. One example of 

an ISO process that was implemented 

is the installation of digital access to the 

standard operating procedures on touch 

pad laptops to provide quick and easy 

access on the production room floor. 

Organizations and companies in 176 

countries have attained this status. GPO’s 

Washington, D.C., passport facility is on 

track to attain the ISO 9001 certification 

in FY 2011.

Passport Manager David Spiers and Foreman Dio Enterline inspect a print sheet at GPO’s secure production facility in Stennis, Mississippi.

which give pre-approved travelers 

faster service at America’s northern 

and southern borders. GPO produces 

three types of Trusted Traveler Program 

cards: NEXUS cards for the northern 

border, SENTRI cards for the southern 

border, and FAST cards for approved 

commercial truck drivers. The Trusted 

Traveler Program is part of the Western 

Hemisphere Travel Initiative (WHTI). In 

the last two years GPO has delivered 

nearly 900,000 of these cards.

GPO has produced nearly 100,000 

Puerto Rican Medicare health insurance 

cards for the Department of Health 
10

and Human Services. These are the 

first plastic cards used in the Medicare 

system to provide reliable and accurate 

access to their infrastructure, significantly 

reducing fraud. GPO also produced 

a credential for the U.S. Coast Guard. 

It verifies the identity, training, and 

qualifications of crew members aboard 

merchant ships.

The employees in this business 

unit meet the customers’ strategic 

requirement with effective secure 

credentials. GPO has produced secure 

credentials that contribute to national 

security in an environment controlled by 

the Government. Control extends to the 

full material supply chain, all personal 

data used, the production process, and 

delivery of the secure credential to the 

customer. The success of these programs 

has made GPO the state-of-the-art 

provider for secure Federal credentials.

Workplace Efficiency

GPO used the 5S methodology 

throughout the agency in 2010 to 

improve the office environment 

for employees and to organize and 

standardize business processes. ‘5S’ is 

the name of a workplace organization 

methodology that uses a list of five 

Japanese words which are seiri, seiton, 

seiso, seiketsu, and shitsuke. Translated 

into English, they are Sort, Straighten, 

Shine, Standardize, and Sustain. The 

list describes how items are stored and 

how the new order is maintained. The 

decision-making process usually comes 

from a dialogue about standardization 

which builds a clear understanding 

among employees of how work should 

be done. It also instills ownership of the 

process in each employee.

Many GPO Business Units during 

the year successfully applied the 5S 

methodology to improve business 

processes and overall efficiency. 

In addition, office environmental 

improvements refresh the office space, 

using low VOC paint, improving 

overhead and natural lighting, and 

balancing air flow to improve ventilation. 

5S improvements create a better 

work environment and more positive 

employee work place, with results 

measured in increased efficiency, service, 

and safety. 

Sort Straighten

Standardize Shine

Clearly distinguish needed 

items from unneeded and 

eliminate the latter

Keep needed items in the

correct place to allow for

easy and immediate

retrieval

Keep the

 workplace

neat and clean

The method by 

which “Sort,” 

“Straighten” and 

“Shine” are made habitual

Sustain

Maintain

established procedures
11

2010 U.S. Government Printing Office Financial Statements

The following summary tables are excerpts from the full audited consolidated financial statements and are not intended to 

substitute for the full audited financial statements.

For fiscal year 2010 (October 1, 2009 – September 30, 2010) GPO received a clean audit opinion on its consolidated 

financial statements from KPMG LLP.

Net income before other operating expenses was approximately $9.0M in fiscal 2010 compared to net income before 

other operating expenses of $1.2M in fiscal 2009. In fiscal 2010, both operating revenue and operating expenses were less 

than fiscal 2009. Comparing 2010 to 2009, operating revenues decreased $5.8M, or .6% (to $928.3M from $934.1M), while 

operating expenses decreased $13.5M, or 1.5% (to $919.3M from $932.8M). The decreases in both revenue and expenses were 

primarily due to workload decreases in the Printing Procurement business unit.

Other operating expenses in 2010 included a credit of $290,000 from a decrease to the agency’s long-term workers’ 

compensation liability. The long-term worker’s compensation charge is required to record the adjustment to the actuarially 

determined liability at September 30, 2010. Inclusive of other operating expenses, GPO had a net income of $9.3M in 2010 

compared to a net loss of $4.1M in 2009. 

Operations provided $86.0 million in cash in 2010 compared to using $53,000 in cash in 2009. In 2010, funds were 

provided by reducing the balance of accounts receivable by $38.9M (to $171.7M in 2010 from $210.6M in 2009), and by 

increasing deferred revenues (primarily customer agency deposit accounts) by $28.7M (to $127.3M in 2010 from $98.6M 

in 2009). GPO also made investments for capital items of $14.4M in 2010 compared to $30.0M in 2009. 

Summary Statements of Cash Flows (in thousands) 2010 2009

Cash Flows from Operating Activities

Net Income (Loss) $ 9,288 $ (4,062)

Provided by (used in) operating activities:

 Depreciation and other 19,911 17,175 

 Impairment loss – 1,189 

 Decrease (Increase) in current assets 36,727 (38,328) 

 Increase in liabilities 20,380 21,284

 Workers’ compensation liability (290) 4,107

 Warranty liability – (1,418)

Total adjustments 76,728 4,009 

Net cash provided by (used in) operating activities 86,016 (53)

Cash flows (used in) Investing Activities (14,447) (30,029)

Cash flows from Financing Activities 12,470 20,957

Net Increase (Decrease) in Cash Balance $ 84,039 $ (9,125)

Summary of Revenues, Expenses, and Net Income (in thousands) 2010 2009

Operating Revenues $ 928,338 $ 934,058

Operating Expenses 919,340 932,824

Income before other operating expenses 8,998 1,234

Other Operating Expenses

 Impairment loss – (1,189)

 Decrease (Increase) in workers’ compensation liability 290 (4,107)

 Net Income (Loss) $ 9,288 $ (4,062)
12

Summary Balance Sheets (in thousands) 2010 2009

Assets

Current Assets

Fund balance with Treasury $ 340,165 $ 256,126 

Accounts receivable, net 171,677 210,564 

Inventory, net 32,570 28,831 

Prepaid expenses 244 1,823

Total current assets 544,656 497,344 

General property, plant and equipment, net 110,891 115,141

Total Assets $ 655,547 $ 612,485

Liabilities and Net Position

Current Liabilities

Accounts payable and accrued expenses $ 108,942 $ 116,137 

Deferred revenues 127,286 98,634

Accrued annual leave 11,153 11,016 

Total current liabilities 247,381 225,787 

Other Liabilities

Workers’ compensation liability 70,884 71,174

Voluntary separation incentive payment liability 4,562 4,562

Total Liabilities 322,827 301,523 

Net position

Cumulative results of operations

Retained earnings 159,651 150,363

Invested capital 92,879 92,879

Unexpended Appropriations 80,190 67,720

Total Net Position 332,720 310,962

Total Liabilities and Total Net Position $ 655,547 $ 612,485

GPO’s Balance Sheet continued strengthening from improved operating performance. Working capital increased by 

$25.7M, to $297.3M in 2010 from $271.6M in 2009, and total current assets increased by $47.4M, to $544.7M in 2010 from 

$497.3M in 2009. 

Total assets grew by $43.0M to $655.5M in 2010 from $612.5M in 2009. Cash increased to $340.2M in 2010 from $256.1M 

in 2009, due to the decrease in accounts receivable, the increase in deferred revenues, and a $12.5M increase in unexpended 

appropriations. Inventory increased by $3.8M to $32.6M in fiscal 2010 compared to $28.8M in fiscal 2009. The increase is 

attributable to a greater number of passport chips held in inventory at the end of fiscal 2010.

GPO ended fiscal 2010 with retained earnings of $159.7M, compared to $150.4M at the end of fiscal 2009.

2010 U.S. Government Printing Office Financial Statements (continued)

7 3 2 N o r t h C a p i t o l S t r e e t N W, Wa s h i n g t o n , D C 2 0 4 0 1 - 0 0 0 1

50% Black + 100% Black

PMS 540 + 100% Black

White (version for reverse)

White (version for reverse)

YEARS

1861-2 011
U . S . G O V E R N M E N T P R I N T I N G O F F I C E

F I N A N C I A L Y E A R I N R E V I E W

F i s cal Y ear s 2 0 1 0 an d 2 0 0 9 

(with Independent Auditors’ Report Thereon)

I. Management’s Discussion and Analysis (Unaudited) ..................................................................................2

Mission......................................................................................................................................................3

Basis of Financial Reporting.....................................................................................................................3

Programs and Operations .........................................................................................................................3

Funding ......................................................................................................................................................................... 3

Programs and Operations Overview ........................................................................................................................... 4

Management Initiatives to Improve Agency Operations............................................................................................. 5

Financial Position and Results for Fiscal Year 2010..................................................................................6

Consolidated Balance Sheets........................................................................................................................................ 6

Consolidated Statements of Revenues, Expenses, and Changes in Retained Earnings............................................. 7

Consolidated Revenues........................................................................................................................................... 7

Consolidated Expenses ........................................................................................................................................... 8

Changes in Retained Earnings ................................................................................................................................ 9

Consolidated Statements of Cash Flows ...................................................................................................................... 9

Performance Measures ............................................................................................................................10

Operating Performance Measures.............................................................................................................................. 10

Financial Performance Measures................................................................................................................................ 10

Possible Future Effects of Existing Events and Conditions.....................................................................11

Fiscal Year 2011 Financial Projections ....................................................................................................11

II. Inspector General’s Report........................................................................................................................12

III. Independent Auditors’ Report...................................................................................................................20

IV. Consolidated Financial Statements.............................................................................................................40

Consolidated Balance Sheets...................................................................................................................41

Consolidated Statements of Revenues, Expenses, and Changes in Retained Earnings ...........................42

Consolidated Statements of Cash Flows..................................................................................................43

Notes to Consolidated Financial Statements ...........................................................................................44

1. Summary of Significant Accounting Policies........................................................................................................... 44

2. Fund Balance with Treasury.................................................................................................................................... 49

3. Accounts Receivable, Net......................................................................................................................................... 50

4. Inventory, Net........................................................................................................................................................... 50

5. Prepaid Expenses ..................................................................................................................................................... 51

6. General Property, Plant and Equipment, Net ......................................................................................................... 51

7. Accounts Payable and Accrued Expenses............................................................................................................... 52

8. Deferred Revenues ................................................................................................................................................... 52

9. Workers’ Compensation Liability ............................................................................................................................. 53

10. Commitments ............................................................................................................................................................ 53

11. Contingencies............................................................................................................................................................ 54

12. Net Position............................................................................................................................................................... 54

13. Appropriated Funds.................................................................................................................................................. 56

14. Employee Benefit Plans............................................................................................................................................ 58

15. Major Customers ....................................................................................................................................................... 59

16. Impairment Loss........................................................................................................................................................ 59

17. Fair Value Measurement ........................................................................................................................................... 59

18. Subsequent Events ................................................................................................................................................... 59

Acronym List ...................................................................................................................................................60

UNITED STATES GOVERNMENT PRINTING OFFICE

FY 2010 Financial Year in Review — Table of Contents
2 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

SECTION I

Management’s 

Discussion 

and Analysis

(Unaudited)

As of September 30, 2010

2 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010
Mission

The mission of the U.S. Government 

Printing Office (GPO or Agency) is 

Keeping America Informed, by providing 

excellent publishing and dissemination services for official and authentic 

Government publications to its customers: 

the Congress, Federal agencies, Judiciary, 

Federal Depository Libraries, and the 

American public.

The GPO accomplishes this mission 

by working in close partnership with all 

three branches of the Federal Government 

in the creation, collecting, cataloging and 

indexing, reproduction, dissemination, 

authentication, and preservation of Federal 

Government information. GPO utilizes 

conventional and digital technology, and 

state-of-the-art methods, to produce and 

distribute Federal Government information. To ensure that Federal Government 

information is readily available to all citizens, GPO makes information accessible 

in an array of communication mediums 

from traditional printed products to digital 

documents and online databases that are 

accessible through the Internet.

The GPO was created when President 

James Buchanan signed Joint Resolution 

25 on June 23, 1860. GPO opened its 

doors for business on March 4, 1861. 

GPO has begun a year-long celebration 

marking its 150 years of Keeping America 

Informed.

Basis of Financial Reporting

The consolidated financial statements 

of the GPO are prepared pursuant to 

the requirements of United States Code 

(U.S.C.) Title 31, Money and Finance, § 

3515, Financial Statements of Agencies. 

The consolidated financial statements have 

been audited by an independent external 

auditor selected by the Public Printer in 

accordance with U.S.C. Title 44, Public 

Printing and Documents, § 309, Revolving 

Fund for Operation and Maintenance of 

Government Printing Office.

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 3

The consolidated financial statements 

of the GPO are prepared from GPO’s 

financial system on the accrual basis 

of accounting in conformity with U.S. 

generally accepted accounting principles 

(GAAP). Under the accrual basis, revenues 

are recognized (recorded) when earned, 

and expenses are recognized when 

incurred, without regard to the receipt or 

the payment of cash. GAAP also requires 

that accounting principles be applied in a 

manner consistent with the previous year. 

GPO’s consolidated financial statements 

and accompanying notes provide information on the Agency’s financial position, 

results of operations, changes in net 

position, and cash flows, and disclose all 

significant financial events and economic 

affairs controlled by GPO, in conformity 

with applicable laws, regulations, standards, and policies relevant to financial 

reporting. GPO is committed to maintaining strong financial systems and internal 

controls to ensure accountability, integrity, 

and reliability. GPO’s internal controls are 

designed to provide reasonable assurance that obligations and costs comply 

with applicable laws and regulations and 

are within budgetary limits; that funds, 

property, and other assets are safeguarded 

against loss from unauthorized acquisition, 

use, or disposition; and that transactions 

are properly recorded. 

GPO Instruction 825.18A, Internal 

Control Program, established the internal control standards and assessment 

methodology employed by GPO to 

ensure adequate and effective systems 

of management control and compliance 

with applicable laws and regulations. 

Management monitors the internal control 

systems and regularly conducts vulnerability assessments and internal control 

reviews of GPO’s programs, operations, 

and other activities.

The Office of the Inspector General 

(OIG) monitors the Internal Control 

Program at GPO and keeps the Public 

Printer informed of management’s progress 

in addressing internal control deficiencies 

identified in audits, reviews, and investigations. Occasionally, the OIG and the U.S. 

Government Accountability Office (GAO) 

conduct audits of GPO’s programs and 

operations, and as such, evaluate management controls. The Internal Control 

Program, along with recommendations 

from audits, reviews, and investigations, 

have strengthened management controls 

and improved the economy, efficiency, and 

effectiveness of GPO’s programs, operations, and other activities.

Programs and Operations

The Government-wide programs and 

operations managed by GPO are based 

on various public laws codified in U.S.C. 

Title 44. GPO’s statutory responsibilities 

include fulfilling the printing needs of 

the Federal Government and distributing 

Federal Government information products 

to the public.

Funding 

The Agency’s programs and operations are 

funded through a business-type revolving 

fund, authorized by U.S.C. Title 44, and by 

annual and certain no-year and multi-year 

appropriations provided by Congress. The 

GPO Revolving Fund is authorized to be 

self-sustaining, without fiscal year limitations applicable to most annual appropriations. Accordingly, the Revolving Fund 

pays for the cost of the Agency’s programs 

and operations and is reimbursed at rates 

and prices that are intended to recover the 

full cost of goods and services delivered 

to customers. GPO’s rates and prices for 

products and services are developed 

using estimates of direct labor and direct 

material expenses, overhead expenses, and 

anticipated volumes. 

The major sources of reimbursement 

to the GPO Revolving Fund are: 

n	 Payments from Federal customers for 

printing and binding, blank paper 

and paper products, and information 

products and design services; 

n	 Sales of Government publications and 

information products to the general 

public, bookstores, book dealers, and 

businesses; and, 

n	 Fund transfers from the Congressional 

Printing and Binding (CP&B) 

Appropriation and the Salaries and 

Expenses (S&E) Appropriation. 
4 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

The CP&B and S&E appropriations 

reimburse the GPO Revolving Fund for 

costs incurred to produce congressional 

work and fulfilling statutory requirements 

to disseminate Federal Government 

information to the public, respectively. 

Occasionally unexpended CP&B and 

S&E appropriations are authorized to be 

transferred to the Revolving Fund for these 

purposes with the approval of the House 

and Senate Appropriations Committees. 

Generally, unexpended annual appropriations are returned to the U.S. Department 

of the Treasury after five years. Also, 

Congress has occasionally made no-year 

and multi-year appropriations available 

to the Agency for special purposes. For 

example, appropriations have been made 

for building improvements, security 

enhancements, information systems, and 

workforce retraining. Reimbursements to 

the Revolving Fund from the appropriations are recorded as revenue when related 

liabilities are incurred. 

Programs and Operations Overview

The Agency is organized into separate 

business units or segments, as described 

below, to assist management in the various 

programs and operations of the Agency.

Plant Operations The Plant Operations 

unit publishes, conventionally and digitally, the important journals of the Federal 

Government, along with many other 

Federal Government documents that are 

available to the public. The Plant provides 

Congress with all legislative printing and 

binding services, including overnight production of the Congressional Record, and 

Congressional bills, reports, and hearings. 

GPO also publishes the daily Federal 

Register and produces the Code of Federal 

Regulations for the Executive Branch.

Official Journals of Government 

The need for traditional printed versions 

of the official records of government (for 

example, the Congressional Record and 

the Federal Register) will remain until 

practicable alternatives are developed 

and accepted. The Official Journals of 

Government business unit continues to 

meet Congressional and agency needs for 

these types of traditional products, while 

Section I: Management’s Discussion and Analysis

at the same time, ensuring the proper 

coordination of their digital versions 

with other GPO business operations and 

the compliance with GPO’s electronic 

information dissemination mandate.

Security and Intelligent Documents 

This business unit works with other 

Federal agencies to assist in the safe and 

secure design, production, and distribution of security and intelligent documents, 

credentials, forms, and tickets. These 

security products incorporate electronic 

technologies and other fraud and counterfeit protection security features. This unit’s 

principal products are electronic Passport 

books for the U.S. Department of State and 

electronically enabled secure credentials for 

the U.S. Department of Homeland Security, 

Customs and Border Protection, and 

Trusted Traveler Program. 

Print Procurement The majority of the 

Government’s printing needs are satisfied 

through Print Procurement’s partnership 

with industry that takes advantage of the 

vast resources, expertise, and specialization in the private sector. This business 

unit receives printing requisitions from 

Federal customers and acquires the 

information products competitively from 

the private sector through various types 

of procurement vehicles tailored to the 

specific needs of customers. Thousands 

of pre-qualified businesses, small to large 

in size, openly compete for printing jobs. 

GPO’s performance measures for on-time 

delivery and quality acceptance underscore the effectiveness of this partnership 

between industry and government.

GPO assigns print procurement teams 

to provide print brokerage, contract 

administration, and other related services 

to Federal customers. The teams work 

diligently to become authorities on the 

mission of their respective agencies to 

anticipate and exceed customer expectations. The teams are assisted by GPO’s 

sales force of national account managers. 

Both team members and national account 

managers meet regularly with customer 

agency program managers to ensure high 

levels of satisfaction.

Creative Services, Digital Media, and 

GPO University GPO provides Congress 

and Federal customers with many products and services to assist in the creation 

and dissemination of information.

Creative Services is comprised of 

a team of professional designers that 

provides branding and identity design, 

Web graphics, and multi-media presentations. The team consults with customers 

to develop appropriate solutions based on 

audience, budget, and delivery schedule 

requirements. Their work includes designing annual reports, magazines, brochures, 

books, posters, and Web layout and pages. 

They also create specialized security 

designs for passports, credentials, and 

other secure documents. 

The Digital Media team creates 

complex Web applications and rich media. 

They support Web site hosting and Web 

site maintenance services for other Federal 

agencies, including content management, 

Web statistics reporting, database management, and administration. In addition, 

they offer Web application development 

and digital consulting services to ensure 

compliance with Federal mandates.

GPO University was formed by 

combining GPO’s Institute for Federal 

Printing & Electronic Publishing (IFPeP) 

and Office of Workforce Development 

and Training in 2010. The change reflects 

GPO’s dedication to meeting the growing 

need of Federal employees to advance 

their technical skills in the digital work environment. GPO University offers a unique 

combination of courses that integrate GPO 

printing process knowledge with cuttingedge digital applications for print and 

online publishing.

Publication and Information 

Sales Program The Publication and 

Information Sales business unit increases 

public access to U.S. Government information through sales of Government information products. The public purchases 

copies of Federal Government 

publications and subscriptions via GPO’s 

Online Bookstore, as well as by e-mail, 

phone, fax, and mail. This business unit 

also works with commercial sales channels, including major bookstore chains 

and leading book distributors nationwide, 

to enhance Government information 

distribution. In addition to traditional sales 

activities, Publication and Information 

Sales provides Government agencies 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 5

with expert advice on how to make their 

publications more user-friendly and commercially viable.

Reimbursable Services Program 

This business unit provides a variety of 

global order fulfillment, inventory, and list 

management services to Federal agencies 

through two distribution centers located in 

Pueblo, Colorado, and Laurel, Maryland. 

The business unit supports the U.S. 

General Services Administration’s popular 

Federal Citizen Information Center.

Library Services and Content 

Management This business unit supports 

and manages the Federal Depository 

Library Program (FDLP), the Cataloging and 

Indexing Program, the By-Law Program, 

and the distribution component of the 

International Exchange Service of the 

Library of Congress. The FDLP, under the 

direction of Congress, ensures equitable, 

secure, convenient, and permanent no-fee 

access to published U.S. Government information. The FDLP includes 1,224 designated Federal depository libraries throughout 

the United States and its territories that 

provide the American public access to 

U.S. Government publications in tangible 

collections, and GPO Access and its successor service, the Federal Digital System 

(FDsys), which provide direct online 

access to Federal Government publications 

from all three branches of Government. 

Other popular online services managed 

by this business unit include the Catalog 

of U.S. Government Publications, the FDLP 

Desktop, the FDLP Community Site, and 

Ben’s Guide to the U.S. Government. 

Management Initiatives 

to Improve Agency Operations

The GPO is the Federal Government’s 

primary centralized resource for gathering, 

cataloging, producing, providing, authenticating, and preserving published U.S. 

Government information in all its forms. 

GPO is responsible for the production 

and distribution of information products 

and services for all three branches of 

the Federal Government. In addition to 

publication sales, GPO makes government information available at no cost to 

the public through GPO’s Federal Digital 

System and through partnerships with 

Section I: Management’s Discussion and Analysis

1,224 libraries nationwide participating in 

the Federal Depository Library Program.

The transformation program underway 

at GPO places emphasis on the effective 

and efficient accomplishment of GPO’s 

mission, while at the same time maintaining the Agency’s core values of integrity, 

teamwork, commitment, and dependability. 

The Strategic Vision for the 21st Century 

continues to keep GPO on track to embrace sustainable, environmentally friendly 

technology. Policy decisions, budgeting 

and capital investment decisions, workforce 

development plans, industry partnerships, 

customer relations, operational decisionmaking, and other actions are based on or 

tied to GPO’s strategic plan. 

The following is an overview of some 

of the major agency initiatives transforming GPO. These efforts will enable GPO to 

better satisfy the existing and future needs 

of the U.S. Congress, Federal agencies, the 

library and information communities, and 

the public. 

GPO’s Federal Digital System (FDsys) 

In fiscal 2009, GPO launched FDsys 

(www.gpo.gov/fdsys/), a world-class information management system developed to 

authenticate, preserve, maintain contents 

by version, and provide permanent public 

access to Federal Government information. The system provides users a one-stop 

site to authentic, published government 

information, while offering users advanced 

search and retrieval capabilities.

In fiscal 2010, GPO converted the 

text of the Federal Register and the Code 

of Federal Regulations into extensible 

markup language (XML), a form of text 

that allows manipulation in virtually 

limitless ways with digital applications, 

and placed it online in numerous Federal 

Government portals, including FDsys and 

Data.gov. The XML version supplements 

official publishing formats. 

At fiscal year-end there were more 

than 178,000 publications available on 

FDsys, including Congressional Bills, the 

Federal Register, and the United States 

Statutes at Large. Additionally, a backup 

site has been developed and deployed, 

providing nearly uninterrupted availability 

to publications in FDsys. 

In fiscal 2011, GPO will complete 

the migration of content to FDsys from 

GPO Access (the legacy site), as well as 

authenticate many of the collections that 

are available on FDsys. Future enhancements to FDsys that will further improve 

the transparency of Federal Government 

information are being developed and 

include user notifications for content; 

delivery by Really Simple Syndication 

(RSS), e-mail, and File Transfer Protocol 

(FTP); automatic harvesting of information 

from Federal websites; and automatically 

saved search preferences. Additionally, the 

structure to support mobile applications 

utilizing data in FDsys is being developed 

to address the ever-expanding market of 

e-readers and smart phone users.

Federal Register Website In addition 

to converting Federal Register and Code 

of Federal Register files to XML as part of 

FDsys, GPO and the Office of the Federal 

Register collaborated to give the Federal 

Register (www.federalregister.gov) a fresh 

new look to mark its 75th anniversary 

(Federal Register Act, July 26, 1935). With 

Federal Register 2.0, the process of submitting documents is the same as before. 

However, there is a major difference in 

the ease of navigation and searching. For 

example, the site redesign follows the 

layout of popular online newspapers, and 

high-interest documents are displayed 

on the front page for more than one day. 

The search engine allows users to limit 

results by date, agency, topic, or location. 

Another major difference is that the open 

source code now in use allows other Web 

applications to pull data from the site. This 

enhances Federal transparency by enabling 

Federal Register content to be displayed on 

a virtually unlimited number of websites. 

Mapping the Future of the FDLP 

The Agency, with input from the 

Depository Library Council and the depository community, is charting a future course 

for the Federal Depository Library Program. 

Based upon collaboration and flexibility, 

the program will continue to support the 

public with free and permanent access to 

official and authentic Federal Government 

content that will be available at the user’s 

fingertips through FDsys. Recognizing 

the role of online information, the future 

focuses on collaboration with the depository community to make Government more 

transparent by freely providing its information to all users. 
Customer-Friendly Print Procurement 

Vehicles The Agency has established 

two programs that allow GPO customers to work directly with GPO vendors. 

These programs generally handle small 

value or short turnaround requirements. Annual growth in these programs 

increases GPO and customer agency 

efficiency and effectiveness in delivering 

services to agency clients.

The GPOExpressSM Program allows 

Federal Government personnel to order 

from any FedEx OfficeSM print center, day 

or night, at any of the more than 1,800 

locations throughout the United States and 

around the world. Agencies receive significant discounts on printing and finishing 

needs at any store location when they use 

the new GPOExpressSM card. GPOExpressSM

continues to grow in use by Federal customers. Program sales increased in fiscal 

2010 by 16 percent from fiscal 2009.

The GPO Online Paper Store allows 

Federal Government organizations to 

purchase, at significant savings, environmentally safe, xerographic copier paper 

using a Web-based system. GPO teamed 

with Unisource® Worldwide, Inc., a global 

paper distributor, to develop the online 

store. Unisource® Worldwide, Inc. has 

approximately 75 domestic distribution 

centers that quickly fill customer orders. 

Program sales increased in fiscal 2010 by 

21 percent from fiscal 2009.

Modernizing Agency Information 

Systems GPO launched the GPO 

Enterprise Program in 2004 to replace 

unsustainable legacy systems. This major 

program has been progressively implementing modern application systems to 

support GPO business units. Phase 2 of 

this modernization program became operational on May 1, 2009. The applications, 

known collectively as the Government 

Printing Office Business Information 

System (GBIS), replaced in-house 

developed mainframe software placed 

into operation more than 30 years ago. 

The launch provided GPO with a solid 

base of financial application software on 

which to build more efficient, sustainable 

processes. In fiscal 2010, GPO continued 

to streamline, revise, and automate within 

the baseline system, several back office 

administrative processes to conform to the 

new system. 

Section I: Management’s Discussion and Analysis

International Organization for 

Standardization (ISO) 9001: 2008 

Certification In fiscal 2010, GPO’s 

secure passport production facility at 

Stennis Space Center in Mississippi 

achieved ISO 9001:2008 certification. 

ISO, the International Organization for 

Standardization, is the world’s largest developer of international standards used by 

government, business, and new information technology companies and agencies. 

Achieving this certification assures the 

Agency and the customer that products or 

services are manufactured or performed 

with business operating procedures that 

conform to globally accepted production 

and service standards.

Redesign and Renovation of the 

GPO Bookstore In fiscal 2010, the GPO 

Bookstore underwent a drastic overhaul, 

utilizing 5S (an acclaimed workplace 

organization methodology) principles. 

Both the redesign and the renovation of 

the GPO Bookstore was accomplished 

by GPO designers, skilled craftworkers, 

and marketing staff. GPO changed the 

displays, retail counter, signage, and 

inventory stock; created power aisles 

that lead customers throughout the store; 

developed impulse buying opportunities; 

built a kiosk for online book searches; 

and built a reading area that also displays 

educational videos about GPO. GPO also 

created a “GPO and Printing” educational experience featuring a mural that 

describes the history of printing, exhibit 

panels that show how the Agency’s technology has evolved since its founding, and 

current and past photos of GPO employees working to Keep America Informed.

Process Improvement Methodology 

The Agency continues to emphasize process study and improvement methodologies. GPO is analyzing and re-engineering 

programs and processes to be less costly, 

faster, and more effective. This program 

includes adopting appropriate characteristics and capabilities of high-performing 

organizations; developing and identifying 

best practices to assess organizational 

transformation, structure, and management; and conducting targeted reviews 

and assessments of management practices 

in industry and applying best practices 

and lessons learned. 

Environmental Stewardship 

Initiatives In fiscal 2010, GPO began 

printing both the Congressional Record 

and the Federal Register on 100 percent 

recycled newsprint. These achievements, 

made with the cooperation and assistance 

of the U.S. Congress and the National 

Archives and Records Administration, respectively, will help reduce landfill waste.

Additionally, GPO is offering to customer agencies 30-percent post consumer 

fiber waste (PCW) recycled paper as 

required by Executive Order 13423 – 

Strengthening Federal Environmental, 

Energy, and Transportation Management 

through the GPO Online Paper Store.

GPO recently completed the installation of a new, highly reflective roofing 

system. This new roof includes several 

bio-based layers and reflective coating 

that increases the efficiency and life 

expectancy of the roof. The agency also 

updated its vehicle fleet used to deliver 

printed products to Congress and Federal 

agencies with alternative flex-fuel and 

hybrid vehicles. 

Financial Position and 

Results for Fiscal Year 2010

The following is an overview of the 

financial position and operating results 

reflected in GPO’s basic consolidated 

financial statements as of and for the fiscal 

year ended September 30, 2010.

Consolidated Balance Sheets

The consolidated balance sheets present the combined amounts the Agency 

had available to use (assets) versus the 

amounts the Agency owed (liabilities), and 

the residual amounts (net position) after 

liabilities were subtracted from assets. 

GPO’s total assets increased to $655.5 

million as of September 30, 2010 from 

$612.5 million as of September 30, 2009. 

The increase of $43.0 million (7.0 percent) 

in total assets was primarily attributable 

to $84.1 million increase in cash in the 

U.S. Treasury and $38.9 million decrease 

in accounts receivable. The increase in 

cash in the U.S. Treasury was due to faster 

collections and issue resolution through 

the billing system and an increase in de6 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010
posit accounts. The decrease in accounts 

receivable is primarily due to a decrease 

in unbilled accounts receivable. Unbilled 

accounts receivable balance at September 

2009 was greater in comparison with the 

balance at September 2010 because of a 

billing lag as a result of the conversion to 

GBIS in fiscal 2009. 

Net value of Property, Plant and 

Equipment decreased to $110.9 million as 

of September 30, 2010 from $115.1 million 

as of September 30, 2009. The decrease 

of $4.2 million (3.6 percent) during fiscal 

year 2010 occurred primarily from the net 

effect of $15.7 million in capital purchases 

(which increased the net value), offset 

by $19.9 million in depreciation expense 

recorded in fiscal 2010 (which reduced net 

value). Comparable figures in fiscal 2009 

were an increase of $7.9 million in net 

value, $30.0 million in capital purchases, 

and $17.2 million in depreciation expense. 

GPO’s liabilities increased to $322.8 

million as of September 30, 2010 from 

$301.5 million as of September 30, 2009. 

The increase of $21.3 million (7.1 percent) 

in total liabilities was primarily due to an 

increase in deferred revenues of approximately $29.0 million (29.4 percent) and a 

decrease in accounts payable and accrued 

expenses of $7.2 million (6.2 percent).

The increase in deferred revenues was 

primarily due to a $26.0 million increase 

in customer deposit accounts for printing 

and binding and a $3.0 million increase in 

advance billings. The decrease in accounts 

payable and accrued expenses of $7.2 million resulted from a decrease in accounts 

payable to printing contractors of $11.4 

million, offset by increases in payables for 

capital assets and production materials of 

$1.2 million and $3.0 million, respectively.

GPO’s net position increased to $332.7 

million as of September 30, 2010 from 

$311.0 million as of September 30, 2009. 

The increase of $21.7 million (7.0 percent) 

in GPO’s net position was primarily the 

result of an increase in unexpended 

appropriations of $12.5 million and an 

increase in retained earnings of $9.3 million. Agency unexpended appropriations 

increased due to increases in unliquidated 

obligations in the Congressional Printing 

and Binding Appropriations of $4.6 

million ($42.9 million at year-end 2010 

from $38.3 million at year-end 2009), in 

the Salaries and Expenses Appropriations 

Section I: Management’s Discussion and Analysis

of $4.6 million ($29.1 million at year-end 

2010 from $24.5 million at year-end 2009), 

and in unexpended Revolving Fund 

appropriations of about $3.3 million ($8.2 

million at year-end 2010 from $4.9 million 

at year-end 2009).

Consolidated Statements 

of Revenues, Expenses, and 

Changes in Retained Earnings

The consolidated statements of revenues, 

expenses, and changes in retained earnings present the accrued reimbursements 

for goods sold and services provided 

(revenues), the accrued cost of assets and 

services used (expenses) in the creation 

of revenues, and the change, within the 

period presented, of the accumulated 

net income of the Agency (changes in 

retained earnings). 

Consolidated Revenues 

GPO’s consolidated revenues are derived 

from four major sources: Printing and Binding; Appropriations; Sales of Publications; 

and Agency Distributions. Consolidated 

revenues were $928.3 million in fiscal 2010 

and $934.1 million in fiscal 2009. This 

is a decrease of about $5.8 million (0.6 

percent). Printing and binding revenues 

decreased to $774.0 million in fiscal 2010 

from $794.8 million in fiscal 2009, a 

decrease of $20.8 million (2.6 percent). 

Appropriation revenues increased from 

$119.2 million in fiscal 2009 to $134.9 

million in fiscal 2010. This is a $15.7 million 

(13.2 percent) increase. 

n Printing and Binding Revenues

The Agency earns revenues from Federal 

Government customers for printing, binding, and other related services performed 

by GPO business units and from work 

performed by commercial contractors. The 

printing and binding revenues were based 

on a system of rates, prices, and surcharges designed to recover costs. The revenues 

for printing and binding originate from the 

programs and operations of five business 

units at GPO: Plant Operations, Official 

Journals of Government, Security and 

Intelligent Documents, Print Procurement, 

and Creative and Digital Media Services. 

The revenues earned from jobs produced 

by GPO employees are generally recognized on a value-added basis, as work is 

performed. Revenues from contracted jobs 

are generally recognized on the date that 

contract requirements are fulfilled, i.e., 

the date finished products are shipped 

by the contractor to the customer agency. 

Revenues from the production of passports for the State Department are recognized at negotiated rates per passport at 

the time that the manufacturing process is 

completed.

Plant Operations generated revenues 

of $148.1 million in fiscal 2010 compared 

with revenues of $145.7 million in fiscal 

2009. This represents an increase of $2.4 

million (1.6 percent). Revenues were generated from the production of paper and 

electronic versions of the Congressional 

Record and all other legislative materials, 

as well as other documents including the 

Federal Register and the Code of Federal 

Regulations. Plant Operations revenues in 

fiscal 2010 include approximately $89.1 

million from the Congressional Printing and 

Binding Appropriations. 

Official Journals of Government generated revenues of $10.0 million in both fiscal 

2010 and fiscal 2009. Revenues generated 

by providing administrative services to the 

U.S. Congress were $4.3 million in fiscal 

2010 compared to $4.7 million in fiscal 

2009. Revenue from employees (printing 

specialists) detailed to House and Senate 

Committees increased by about $700,000 

from $2.8 million in fiscal 2009 to $3.5 

million in fiscal 2010. 

Overall revenues for the Security and 

Intelligent Documents (SID) business unit 

increased to $202.5 million in fiscal 2010 

from $173.6 million in fiscal 2009, or $28.9 

million (16.6 percent). SID’s major product 

is the electronic Passport, which was 

introduced in fiscal 2007. GPO produced 

13.2 million electronic Passports in fiscal 

2010, compared to 10.6 million electronic 

Passports in fiscal 2009, an increase of 24.5 

percent. The resulting electronic Passport 

revenues increased from $160.5 million in 

fiscal 2009 to $196.4 million in fiscal 2010, 

an increase of $35.9 million (22.4 percent). 

SID revenues in fiscal 2010 for the new 

Trusted Traveler and other secure credentials for the U.S. Department of Homeland 

Security decreased from $9.8 million in 

2009 to $4.9 million in 2010, a decrease of 

$4.9 million.

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 7
Print Procurement revenues decreased 

$44.4 million (8.2 percent) from $540.5 

million in fiscal 2009 to $496.1 million in 

fiscal 2010. Procured printing and binding revenues decreased approximately 

$40.1 million (8.1 percent) predominantly 

due to fewer new orders placed by the 

U.S. Department of Defense and the 

U.S. Department of Homeland Security. 

Revenues from the popular GPOExpressSM

program increased $1.4 million, from 

$7.5 million in fiscal 2009 to $8.9 million. 

The increase in revenue was offset by 

a decrease in the reimbursable postage 

program of $3.6 million, from $6.2 million 

in fiscal 2009 to $2.6 million, caused by a 

reduction in agency orders for this service.

Creative and Digital Media Services 

revenues were $3.8 million in fiscal 2010 

compared with $5.6 million in fiscal 2009, 

a decrease of $1.8 million (32.1 percent). 

Revenues decreased primarily due to loss 

of a few large customers during fiscal 2010.

n Appropriation Revenues

The GPO receives annual, no-year, and 

multi-year appropriations from Congress 

to finance certain costs in accordance 

with the underlying appropriation act 

and enabling legislation. The Legislative 

Branch Appropriations Act, 2010 (Public 

Law 111-68, October 1, 2009) made a total 

of $147.5 million in annual appropriations 

available to the Agency for fiscal 2010. 

Revenues earned from appropriations 

provided to the Agency totaled $134.9 million for fiscal 2010 and $119.2 million for 

fiscal 2009. The increase in appropriation 

revenue of $15.7 million (13.2 percent) 

was primarily due to increases in revenues 

from Revolving Fund, Congressional 

CP&B, and S&E. Revenue from appropriations to the Revolving Fund was $11.8 

million in fiscal 2010 compared to $6.9 

million in fiscal 2009, an increase of $4.9 

million (71.0 percent). This revenue is a 

reimbursement of qualifying expenses 

and is recognized when the appropriated funds are made available and the 

qualifying expenses are incurred. In fiscal 

2010, more Revolving Fund appropriated 

funds ($12.8 million) were available than 

in fiscal 2009 ($5.0 million), so more 

reimbursable expenses qualified. In fiscal 

2010, the $11.8 million recognized as 

revenues related to qualifying expenses 

of $982,000 for prior year appropriation 

shortfalls; $4.2 million for roof, elevator 

repairs, infrastructure improvements and 

information technology development; 

$6.1 million for FDsys development; and 

$548,000 for workforce retraining. In 

fiscal 2009, the $6.9 million recognized as 

revenues related to qualifying expenses of 

$3.0 million for prior year appropriation 

shortfalls; $2.3 million for roof, elevator 

repairs and infrastructure improvements; 

$1.0 million for FDsys development; and 

$600,000 for workforce retraining. 

Revenues from the CP&B 

Appropriation were $89.1 million in fiscal 

2010 compared to $80.8 million in fiscal 

2009, an increase of $8.3 million (10.3 

percent). The annual CP&B Appropriation 

is used to fund printing and binding provided to Congress by the Plant Operations 

business unit and services provided by the 

Official Journals of Government business 

unit. The increase in revenues was mainly 

due to increases in the Congressional 

Record products ($2.8 million increase), 

Hearings ($1.7 million increase), Public 

Document Envelopes ($2.3 million 

increase), and Committee Prints ($1.4 

million increase). 

The requirements of Congress for 

printing and other services requisitioned 

from GPO fluctuate because of many variables and cannot be precisely forecasted 

for budgeting purposes. At the end of 

fiscal 2010, the CP&B Appropriation was 

estimated to have a cumulative shortfall in 

funding of about $1.5 million. Generally, 

the CP&B Appropriation has been adequate to cover the costs of GPO services 

to Congress. However, in years when 

the Congressional printing requirements 

exceed the annual funding provided by 

Congress, GPO uses the Revolving Fund 

to temporarily fund the shortfall until 

sufficient appropriated funds are available 

as authorized by Congress. 

The S&E Appropriation provided 

revenues of $34.1 million in fiscal 2010 

and $31.9 million in fiscal 2009. The S&E 

Appropriation is provided annually by 

Congress to fund the dissemination of 

Federal Government information to the 

public by GPO’s Library Services and 

Content Management business unit.

n Sales of Publications Revenues

GPO earns revenues from the sales of 

publications to the public and others. 

The Publication and Information Sales 

Program sells publications, subscriptions, 

and other Federal Government information products at prices designed to recover 

costs. The demand for printed products 

continues to decline due to expansion in 

the availability of free information from 

the Federal Government on the Internet. 

Revenue from the sales of publications 

totaled $13.2 million for fiscal 2010 and 

$14.1 million for fiscal 2009, a decrease of 

about $900,000 (6.4 percent).

n Agency Distribution Revenues

GPO earns revenues from Federal 

agencies for the storage, packaging, 

and distribution of Federal Government 

publications to the public and others. 

Agency Distributions provides these 

services on a cost reimbursement basis, at 

rates and prices designed to recover costs. 

Revenues from Agency Distributions 

totaled $6.2 million for fiscal 2010 and 

$5.9 million for fiscal 2009. This represents 

an increase of about $300,000 (5.1 percent). Revenues for this program fluctuate 

because of the varying level of demand 

for services from customers over time. 

Consolidated Expenses

GPO incurred total consolidated operating expenses, before other operating 

expenses, of $919.3 million for fiscal 

2010 and $932.8 million for fiscal 2009, a 

decrease of $13.5 million (1.4 percent). 

The decrease in operating expenses was 

due primarily to a decrease in printing 

and reproduction expenses, especially 

decreased purchases of printing from 

private sector contractors by the Print 

Procurement business unit, partially offset 

by increases in other expense categories. 

A brief description of the major expense 

categories for the Agency follows.

n Printing and Reproduction Expenses

GPO incurred expenses for printing and 

reproduction of $459.0 million for fiscal 

2010 and $497.8 million for fiscal 2009. 

This represents a decrease in printing and 

reproduction expenses of $38.8 million 

(7.8 percent), which was attributable to decreased purchases of printing from private 

Section I: Management’s Discussion and Analysis

8 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010
sector contractors by the Print Procurement 

business unit. Expenses for purchased 

printing decreased to about $458.4 million 

in fiscal 2010 from $497.1 million in fiscal 

2009. 

n Personnel Compensation 

 and Benefits Expenses

GPO incurred expenses for personnel compensation and benefits of $242.5 million 

during fiscal 2010 and $234.6 million during 

fiscal 2009. This represents an increase 

in personnel compensation and benefit 

expenses of $7.9 million (3.4 percent). The 

increase was mostly due to annual pay 

increases that typically occur in January. 

n Supplies and Materials Expenses

The supplies and materials expense category includes production related paper 

and materials, general office supplies, and 

equipment, furniture, and vehicle purchases that were expensed because they 

did not meet the Agency’s capitalization 

threshold. The Security and Intelligent

Documents and Plant Operations business units operate production facilities 

that incur significant costs for supplies, 

materials, and paper. Agency expenses 

for supplies and materials were $128.4 

million in fiscal 2010 and $110.8 million in 

fiscal 2009. This represents an increase of 

$17.6 million (15.9 percent). The increase 

corresponds to the 24.5 percent volume 

increase from electronic Passports. 

n Other Services Expenses

This expense category includes the cost 

of professional services provided by 

contractors for consulting, system development, maintenance of equipment, audits, 

investigations, and employee training. 

These expenses are recognized when 

services ordered have been performed. 

GPO incurred expenses for these services 

of $36.5 million for fiscal 2010 and $34.1 

million for fiscal 2009. This represents 

an increase of $2.4 million (7.0 percent). 

The increase was primarily due to a $2.6 

million increase in professional services 

expenses, offset by a $788,000 decrease 

in maintenance expenses, and a $534,000 

decrease in bad debt expense. In addition, fiscal 2009 included a credit of $1.4 

million for warranty expense. There was 

no such expense in fiscal 2010.

n Depreciation and 

 Amortization Expense

Total depreciation and amortization 

expense for fiscal 2010 was $19.9 million 

compared with $17.2 million in fiscal 

2009. The increase in depreciation and 

amortization expense was primarily the 

result of placing FDsys into service in 

January 2009, and placing new computer 

infrastructure systems into service in fiscal 

2010. FDsys amortization in fiscal 2010 

includes $1.7 million for amortizing the 

FDsys placed in service in fiscal 2009 and 

new IT systems depreciation was $1.0 

million in fiscal 2010.

n Rents, Communications, 

and Utilities Expenses

This expense group includes rents for 

building space outside of Washington, 

DC, leased equipment and vehicles, and 

utilities. GPO incurred expenses for rents, 

communications, and utilities of $16.6 

million for fiscal 2010 and $17.6 million 

for fiscal 2009. This represents a decrease 

of $1.0 million (5.7 percent). The decrease 

was due primarily to a $1.7 million 

decrease in the cost of steam, offset by a 

$224,000 increase in the cost of water and 

a $216,000 increase in lease expense.

n Travel, Transportation, and Postage 

 Expenses

This expense category includes the cost of 

employee travel and relocation, commercial transportation and delivery services, 

postage (including postage reimbursable 

from customer agencies), and commercial 

mailing services. GPO incurred expense 

for travel, transportation, and postage of 

$12.4 million for fiscal 2010 and $15.9 

million for fiscal 2009. This represents a 

decrease of $3.5 million (22.0 percent). 

The decrease was primarily due to a 

decrease in reimbursable postage expenses of $3.0 million, and a decrease in 

other mailing expenses of $500,000. Both 

decreases were the result of a decline 

in orders that utilize these methods of 

shipping.

n Publications Sold Expenses

This expense is incurred when GPO’s 

Publication and Information Sales business 

unit sells publications, subscriptions, and 

other Federal Government information 

products to customers. This expense 

totaled $4.0 million in fiscal 2010 compared 

to $4.8 million in fiscal 2009. The decrease 

was the result of fewer publication sales.

Changes in Retained Earnings

GPO’s retained earnings increased by 

$9.3 million to $159.7 million at the end 

of fiscal 2010, compared to $150.4 million 

at the end of fiscal 2009. The increase 

resulted from GPO’s net income for fiscal 

2010. 

Consolidated Statements 

of Cash Flows

The consolidated statements of cash flows 

present the Agency’s cash position at 

the beginning and end of the reporting 

period, and the sources and uses of cash 

for all operating, investing, and financing 

activities. 

Fund Balance with Treasury (cash) 

increased by $84.0 million during fiscal 

2010 compared with a decrease of $9.1 

million in fiscal 2009. The increase in cash 

during fiscal 2010 was primarily the result 

of the following.

n	 In fiscal 2010, GPO generated $86.0 

million from operations compared to 

using $53,000 in operations in fiscal 

2009. This was mainly attributable to 

the increase in net income, an increase 

in deferred revenue, and a decrease in 

accounts receivable.

n	 Cash invested in capital assets was 

$14.4 million in fiscal 2010 compared 

with $30.0 million in fiscal 2009, a 

decrease of $15.6 million. In fiscal 

2009, several large investments were 

made, including FDsys software 

development and business information 

systems improvements. In fiscal 2010, 

the nature of the investments were 

similar, but of a smaller dollar value.

n	 Financing activities provided $12.5 

million cash inflow in fiscal 2010, compared with $21.0 million cash inflow 

in fiscal 2009. In fiscal 2010, GPO had 

cash provided from unexpended appropriations of $80.2 million compared 

to $67.7 million in fiscal 2009.

Section I: Management’s Discussion and Analysis

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 9
10 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Performance Measures

GPO gauges its overall efficiency and 

effectiveness using certain performance 

measures. Generally, these performance 

measures are based on established 

standards, goals, or objectives that are 

compared against actual performance or 

results for each fiscal year. The following 

sections discuss the major operating performance measures and financial performance measures used by the Agency.

Operating Performance Measures

On-Time Delivery of 

Congressional Record

The Congressional Record is the official 

record of the proceedings and debates of 

the U.S. Congress. This important Federal 

information product is published daily 

when Congress is in session. GPO uses 

a performance measure to evaluate the 

timeliness of the delivery of this core 

product to Congress. To measure GPO’s 

success in delivering the Congressional 

Record to Congress on-time, GPO established a deadline of delivery to the House 

and Senate chambers before the start of 

the next day’s session when 100 percent of 

copy is received by midnight. The on-time 

delivery rate was 97.9 percent for fiscal 

2010 and 99.4 percent for fiscal 2009. The 

Agency’s goal of 95 percent or better was 

achieved for fiscal 2010. The goal will 

remain the same for fiscal 2011.

On-Time Delivery and Quality 

Acceptance of Procured Printing

Print Procurement contracted with commercial businesses to produce and ship 

95,100 jobs for GPO customers in fiscal 

2010. For fiscal 2010, the goals were to 

have at least 95 percent of procured printing orders delivered on schedule and a 

quality acceptance rate of at least 99 percent. Print Procurement met both of these 

goals for fiscal 2010, with 96.8 percent 

of procured printing jobs delivered on 

time and a quality acceptance rate of 99.9 

percent. In comparison, GPO contractors 

shipped 104,000 jobs in fiscal 2009, with 

96.7 percent of the procured printing jobs 

delivered on time and a quality acceptance rate of 99.7 percent. The two goals 

will remain the same for fiscal 2011.

Section I: Management’s Discussion and Analysis

Orders placed at GPO have decreased, 

in part, to the success of the GPOExpressSM

Program. This program enables Federal 

customers to purchase small printing jobs 

directly from a nationwide contractor, 

without sending the order to GPO. For 

fiscal 2010, customers used GPOExpressSM 

to place about 18,800 orders to purchase 

$8.9 million in convenience printing jobs 

locally without going through GPO. In 

fiscal 2009, customers placed about 15,200 

orders to purchase $7.5 million in convenience printing jobs through this program. 

Financial Performance Measures

Cash Management

Payment Performance 

In fiscal 2010, GPO continued to save 

millions of dollars by taking favorable 

prompt payment discounts offered by 

contractors for the payment of invoices 

within the discount period. GPO earned 

prompt payment discounts of $4.4 million 

on purchased printing expense of $458.6 

million. In comparison, GPO earned $6.1 

million in discounts on $500.9 million in 

printing expenses last year. The average 

discount rate earned was 0.96 percent for 

fiscal 2010 and 1.22 percent for fiscal 2009. 

The average discount rate earned for fiscal 

2010 was short of the goal of 1.4 percent. 

The goal will be the same for fiscal 2011.

Lost prompt payment discounts 

decreased to $994,000 in fiscal 2010 from 

$1.1 million in fiscal 2009. The percentage 

of discounts lost to discounts offered was 

18.4 percent, as compared to 15.0 percent 

in 2009. The increase in discounts lost 

ratio was a result of the fact that fiscal 

2010 saw a decrease in total discounts 

available compared to fiscal 2009 ($5.4 

million total discounts available in fiscal 

2010 compared to $7.2 million the prior 

year). GPO did not meet its goal of 2.5 

percent but will strive to achieve it in 

fiscal 2011.

Electronic Payments 

Electronic Funds Transfer (EFT) is the 

most secure, efficient, and economical 

method of making payments to GPO 

contractors, employees, and other nonFederal entities. While it costs the U.S. 

Government $1.03 to issue each check 

payment, the cost is only $0.11 to issue an 

EFT payment1

. In fiscal 2010, 69.7 percent 

of all payments were made by EFT. In 

comparison, about 78.4 percent of all payments were made by EFT in fiscal 2009. 

While the Agency’s EFT payments did not 

meet the goal of 90 percent for fiscal 2010, 

GPO will work closely with vendors to 

increase EFT participation rates and strive 

to achieve that goal for fiscal 2011.

Debt Management

Federal Receivables 

GPO billed customers about $958.0 

million for printing and binding services, 

including Congressional services funded 

by appropriations, during fiscal 2010. The 

U.S. Department of the Treasury’s Intragovernmental Payment and Collection 

(IPAC) System was used to collect about 

$741.5 million or 77.4 percent of this debt 

from customers. Additionally, about $77.4 

million or 8.1 percent of this debt, was collected from funds held in customer Printing 

and Binding Deposit Accounts maintained 

by GPO. Furthermore, $17.2 million, or 

1.8 percent of this debt, was collected via 

credit card. These electronic-based methods allow the prompt collection of funds, 

as opposed to the more traditional methods 

of collection that require the creation and 

exchange of paper documents and checks 

through the mail.

GPO’s billed accounts receivable from 

Federal Government customers totaled 

approximately $57.8 million at the end of 

fiscal 2010, compared with $51.8 million at 

the end of fiscal 2009. This represents an 

increase in billed accounts receivable of 

approximately $6.0 million.

IPAC collections initiated by GPO are 

sometimes charged back by Federal agencies, the customers, for various reasons. In 

these instances, GPO contacts the customer 

and inquires about the reason(s) for nonpayment of the indebtedness. 

In most instances, the customer’s 

financial representative requires additional 

information and supporting documentation 

on the billing before the IPAC collection 

is allowed. IPAC chargebacks, included in 

accounts receivable, totaled approximately 

$26.4 million at the end of fiscal 2010 and 

$16.4 million at the end of fiscal 2009. 

1. Source: U.S. Department of the Treasury, 

http://www.fms.treas.gov/eft.index.html 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 11

The U.S. Department of Defense (DoD) 

is GPO’s third largest customer and largest 

debtor. Exclusive of IPAC chargebacks, 

DoD owed GPO about $7.9 million at 

September 30, 2010, of which $7.8 million, 

or 98.7 percent, was past due in payment 

(i.e., over 30 days old). DoD owed $3.3 

million for invoices between 31 to 60 days 

old, $303,000 between 61 to 90 days old, 

and about $4.2 million over 90 days old. 

DoD’s indebtedness to GPO of $4.2 million 

represents 14.1 percent of GPO’s total 

billed accounts receivables of $29.7 million, 

over 90 days old, at year-end. At September 

30, 2009, DoD owed $6.9 million to GPO. 

At the end of the year, GPO maintained 

1,046 Printing and Binding deposit accounts 

valued at $118.6 million. Additionally, GPO 

held $3.0 million in customer deposit accounts for the Publication and Information 

Sales Program. Combined, these customer 

deposit accounts totaled about $121.6 

million as of September 30, 2010. At 

September 30, 2009, GPO maintained $95.3 

million in these two customer deposit 

accounts ($92.2 million and $3.1 million, 

respectively). The $26.4 million increase 

was primarily attributable to new customers, more accounts, and existing customers 

increasing their account balances. 

Customer agencies have the option of 

paying GPO by credit card. Credit card receipts in fiscal 2010 totaled $17.2 million, 

for approximately 20,300 printing jobs. In 

comparison, credit card receipts totaled 

$13.4 million, for approximately 11,300 

printing jobs, in fiscal 2009. The increase 

in credit card receipts of $3.8 million was 

due to the 9,000 increase in jobs paid by 

credit card.

Possible Future Effects of 

Existing Events and Conditions

Several events and conditions may have 

an impact on the Agency’s programs and 

operations in the future. A synopsis of 

each of these conditions follows.

Demand for Security and 

Intelligent Documents 

The continued production of security and 

intelligent documents, such as electronic 

Passports, and the development of new 

security documents such as Federal 

identification cards will be vital to GPO’s 

success. Demand for electronic Passports 

is estimated at 13.0 million in fiscal 2011. 

GPO produced 13.2 million electronic 

Passports in fiscal 2010 and 10.6 million 

electronic Passports in fiscal 2009. 

Demand growth is expected for sensitive documents, such as smartcards, immigration forms, Public Key Infrastructure 

(PKI) electronic certificates for credentialing, and traditional and embedded 

electronics security documents.

Possible Federal 

Appropriation Reductions 

Printing and duplicating are generally considered a discretionary cost for 

Federal customers. Possible future budget 

reductions and restrictions on growth may 

impact the availability of funds for Federal 

Government printing and duplicating. 

Decline in Ink-on-Paper Products 

GPO continues to manufacture and sell a 

sizable array of Federal Government information products. The upward trend in 

Government electronic documents available on the Internet, and a subsequent 

downward trend in customer demand for 

printed documents will continue to place 

downward pressure on in-plant revenues 

and publication sales. 

Some Plant Operations core ink-onpaper products, such as the Congressional 

Record or the Federal Register, have 

shorter production runs than in the past 

because these products are now available 

online. However, the demand for documents printed to support the legislative 

business of Congress, such as Bills, 

Hearings, Reports, and Committee Prints, 

remains strong. 

Plant Operations is committed to 

capitalizing on efficiencies in operations, 

advanced printing technologies, and the 

ability to satisfy requirements unique to 

Federal customers in order to provide best 

value.

The Publication and Information Sales 

Program business unit generated a positive 

operating margin for a third consecutive 

year. The major management focus in this 

business unit has been to identify market 

segments for the program’s vast product 

offerings, to employ focused advertising, 

and to provide better customer service 

to a niche customer base. This effort has 

stabilized the revenue decline and, when 

combined with further operating expense 

reductions, has created a turnaround for 

the program. However, operational efficiencies will need to continuously improve 

in order to maintain positive operating 

margins.

Fiscal Year 2011

Financial Projections

Congress established the GPO Revolving 

Fund to finance the operations of the 

Agency on July 1, 1953. The receipts and 

disbursements from the Agency’s continuing cycle of business-type operations are 

recorded in the GPO Revolving Fund 

that was established to be financially 

self-sustaining. 

The Agency’s overall financial objective has been to earn revenues sufficient 

to recover all costs, including depreciation 

and overhead, in accordance with Section 

309 of U.S.C. Title 44. This is accomplished through a system of rates, prices, 

and surcharges used to bill customers for 

goods delivered and services performed 

by the Agency. 

In fiscal 2010, the Agency realized 

a net gain of $9.0 million, before other 

operating expenses. Overall, including 

the long-term workers’ compensation 

adjustment which is excluded from GPO’s 

rate-setting process GPO realized a net 

gain of $9.3 million. Achievement of the 

Agency’s fiscal 2011 operating plan would 

result in net income of $0.5 million.

The Agency’s continued transformation, customer demand for secure and 

intelligent documents, and other management initiatives completed and underway 

have put GPO’s operations back on 

sound footing, both organizationally and 

financially. The Agency expects fiscal 2011 

to be a difficult year and has made provisions in its operating budget to ensure 

continued financial stability. Risks to be 

managed include unpredictable fluctuations in customer demand and changes in 

appropriations levels. Achieving positive 

financial results help to ensure that the 

GPO Revolving Fund remains financially 

self-sustaining as Congress intended and 

that GPO can continue Keeping America 

Informed.

Section I: Management’s Discussion and Analysis
SECTION II

Inspector 

General’s Report

12 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010
Date   

December 21, 2010 

To   

Public Printer 

From

Inspector General  

Subject

Report on the Consolidated Financial Statement Audit of the

Government Printing Office for Fiscal Years Ended  

September 30, 2010 and 2009  

Report Number 11­04

This report contains the audit of the annual consolidated financial 

statements of the Government Printing Office (GPO) as of the fiscal years 

(FY) ended September 30, 2010 and 2009.  We contracted with the

independent public accounting firm of KPMG LLP (KPMG) to audit the 

consolidated balance sheet, statement of revenue and expenses, and 

statement of cash flows for the years then ended.  The audits were 

conducted in accordance with auditing standards generally accepted in the 

United States, and the standards applicable to financial audits contained in 

overnment Auditing Standards (GAS) issued by the Comptroller General of 

he United States. 

G

t

Results of Independent Audit

KPMG expressed an unqualified opinion on the GPO consolidated financial 

statements as of the FYs ended September 30, 2010, and 2009, by

concluding that the GPO financial statements were fairly presented, in all 

material respects, in conformity with generally accepted accounting 

principles (GAAP).  KPMG’s consideration of internal control over financial 

reporting resulted in three significant deficiencies,1 which KPMG did not 

                                                      

1 A significant deficiency is a deficiency, or combination of deficiencies, in internal control 

that is less severe than a material weakness, yet important enough to merit attention by 

those charged with governance.  A material weakness is a deficiency, or combination of 

deficiencies, in internal control, such that there is a reasonable possibility that a material 

misstatement of the entity’s financial statements will not be prevented, or detected and 

corrected on a timely basis. 
14 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Public Printer 

Report 11‐04 

December 21, 2010 

Page 2 of 6 

consider to be material weaknesses.  Details on these three deficiencies, 

hich were in the areas of controls over special journal entries, controls 

ver human resource data, and information technology are as follows: 

w

o

1.  Controls over Preparation, Review and Approval of Special Journal

Entries

KPMG identified that internal controls over the preparation, review and 

approval of special journal entries need to be strengthened.  Specifically, it 

was noted that 27 of 85 (32%) special journal entries tested had been 

recorded in the wrong general ledger account and/or recorded in the wrong 

amount.  Of the 27 erroneous entries, 23 were subsequently detected and 

corrected by GPO.  Of the four entries not detected by GPO’s internal 

controls, two were subsequently corrected by management to adjust for net 

overstatements of assets and operating income of approximately $250 

housand.  The remaining two were not corrected as the errors were 

onsidered to be immaterial to the financial statements. 

t

c

2.  Controls over Processing and Maintenance of Human Resource Data

During 2010, KPMG noted the following areas where GPO needs to improve 

its internal controls over processing and maintenance of human resource 

ata in the areas of goal sharing, annual leave balances and discrepancies on 

ersonnel actions.  The details of these deficiencies ar

     

d

p e as follows: 

 Controls over GPO Goal Sharing Payments.  The lack of adequate 

controls over the calculation and distribution of goal sharing 

incentive resulted in goal sharing payments to ineligible employees. 

GPO annual goal sharing incentivizes employees to pay attention to 

specific areas of GPO operations in order to lower expenses and

reduce accidents.  During payroll test work, it was noted that the 

methodology used to determine eligible employees resulted in goal 

sharing payments to ineligible employees for amounts 

inconsequential to the financial statements.

 Discrepancies with Employee Annual Leave Balances.  KPMG 

noted that for 22 of 86 balances tested, the annual leave balance 

reflected in WebTA (GPO’s web‐based time and attendance program

which employees use to enter and keep track of their hours worked 

and leave used) did not agree with the annual leave balance reflected 

by the National Finance Center (NFC), GPO’s payroll/personnel 

service provider. 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 15

Public Printer 

Report 11‐04 

December 21, 2010 

Page 3 of 6 

 Discrepancies on Personnel Actions.  During payroll test work, 

KPMG noted that for six of 86 employee personnel files reviewed, the 

GPO payment plan reflected on the Standard Form 50, Notification of

Personnel Action, did not agree to the GPO payment plan reflected on 

the SF‐52, Request for Personnel Action, maintained in the employees’ 

file.  However, it was noted that in each of these instances, the 

amount of the employee’s rate of pay reflected on the SF‐50 and SF‐

52 was in agreement with the amount being processed by NFC for the 

pay period tested.  In addition, 2 of 86 instances were noted where an 

employee’s service date in WebTA did not agree with the employee’s 

service date reflected in NFC’s records (Statement of Earnings and 

Leave) or to the SF‐52 in the employee’s personnel file. 

3.  Information Technology General and Application Controls.  During 

fiscal year 2010, deficiencies in the design and/or operations of GPO’s 

information technology (IT) general and application controls were noted in 

Security Management, Access Controls, Segregation of Duties, Configuration 

Management and Contingency Planning.  Details of these conditions are as 

follows:   

 Security Management.  GPO made progress in fiscal year 2010 to 

formalize GPO’s established information security objectives and high 

level policy. However, KPMG noted the following conditions: 

o GPO performs the security authorization process only for 

major applications and high risk and new systems.  GPO’s 

minor applications, such as PROBE, are generally not included 

in the security authorization process. Although GPO had 

previously completed the security authorization process for 

both the GPO Business Information System (GBIS) and the 

General Support System (GSS), the GSS has operated without a 

current security authorization since February 2010 when the 

Interim Authorization to Operate (IATO) for the GSS expired.  

o GPO has not implemented a process to ensure that employees 

and contractors with significant information security 

responsibilities (SISR) receive role‐based IT security training.

o The Oracle On‐Demand Statement on Auditing Standards No. 

70, Service Organizations (SAS‐70) report provided by Oracle 

to GPO only partially covered GBIS.  Oracle hosts GBIS within 

the Federal Zone of its Austin, Texas data center.  The SAS‐70 

report for Oracle’s Austin Data Center (ADC) only partially 
16 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Public Printer 

Report 11‐04 

December 21, 2010 

Page 4 of 6 

applied to GBIS and did not include logical access or 

configuration management controls applicable to the Federal 

Zone.  The SAS‐70 report’s applicability to GBIS was limited to

such data‐center‐wide controls as physical access and 

environmental controls. However, management did not realize 

that the SAS‐70 did not cover the Federal Zone and 

inadvertently relied on the report. 

 Access Controls.  KPMG noted that overall, access controls at GPO 

continue to require strengthening in order to provide a more secure 

financial processing and computing environment.  GPO management

made progress in addressing the access control deficiencies noted in 

prior years. However, we noted the following access controls 

deficiencies that need improvement: 

o GPO does not consistently follow required policies and 

procedures for granting access and reviewing access to the 

financial systems or GPO network. Users were granted access 

to systems without documented approval. 

o User access was not consistently removed after users left GPO 

or changed job duties. 

o GPO does not have effective policies and procedures to revoke 

the physical and logical access of contractors after they leave

GPO.  

o Periodic reviews of user access were not consistently 

documented. 

o Access to the GBIS rate maintenance responsibility that 

controls the ability to modify the All Inclusive Hourly Rate 

(AIHR) is not properly restricted to only those users 

responsible for modifying rate information. 

o Audit logs at the application level for GBIS are not reviewed. 

o Of 3,903 network user access accounts, 315 enabled accounts 

had passwords that were set to never expire.  

o Information Technology and Systems was unable to provide 

evidence of the quarterly data center access review for one of 

two quarters selected for testing. 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 17

Public Printer 

Report 11‐04 

December 21, 2010 

Page 5 of 6 

 Segregation of Duties.  KPMG noted that the lack of adequate 

controls to prevent the assignment of incompatible functions within 

GBIS exposes GPO to the risk that certain users may be assigned the 

ability to perform multiple critical system transactions. As a result, 

users may be able to initiate and approve an erroneous transaction. 

 Configuration Management.  KPMG noted that implementation of 

configuration changes for GBIS did not adhere to strict configuration 

management practices.  Specifically, they identified that one of fifteen 

changes to the GBIS application closed in fiscal year 2010 that was 

tested did not have the documented approval or evidence of testing 

for the change.  The change where testing and approval was 

undocumented was an emergency change.  Due to the urgency of the 

change, approval appears to have been communicated informally. 

 Contingency Planning.  KPMG noted that a continuity of operations 

plan for GPO’s general support system has not been finalized and is 

still in draft form.  Furthermore, GPO did not provide evidence of 

periodic testing of the continuity of operations plan. 

KPMG disclosed no instances of noncompliance with certain provisions of 

aws, regulations and contracts or other matters that are required to be 

eported under GAS. 

l

r

Evaluation and Monitoring of Audit Performance

We reviewed the KPMG audit of the GPO consolidated financial statements 

by: 

 Evaluating the independence, objectivity, and qualifications of the 



auditors and specialists; 

Reviewing the approach of and 



planning for the audit; 

 Attending key meetings with auditors and GPO officials; 



Monitoring the audit progress; 



Examining audit documentation; 

Reviewing the auditors’ reports; and 

 Reviewing the financial statements and associated footnotes. 

KPMG is responsible for the attached reports dated December 20, 2010, and 

the conclusions expressed in the reports.  Our review, as differentiated from 

an audit in accordance with GAS, was not intended to enable us to express, 

and accordingly we do not express, an opinion on GPO’s financial 

statements, the effectiveness of internal controls, or compliance with laws 
18 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Public Printer 

Report 11‐04 

December 21, 2010 

Page 6 of 6 

and regulations.  However, our monitoring review, as limited to the 

procedures listed above, disclosed no instances in which KPMG did not 

comply, in all material respects, with GAS. 

If you have any questions or comments about this report, please do not 

hesitate to contact me, or Mr. Kevin Carson, Assistant Inspector General for 

udits and Inspections, at (202) 512‐2009 or through email at 

carson@gpo.gov

A

k . 

. Anthony Ogden 

neral 

J

Inspector Ge

Attachment 

cc: 

t Officer 

Deputy Public Printer 

Acting Chief Managemen

Acting General Counsel 

Chief Financial Officer 

Chief Technology Officer 

SECTION III

Independent

Auditors’ Report

20 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010
KPMG LLP 

2001 M Street, NW 

Washington, DC 20036-3389 

KPMG LLP is a Delaware limited liability partnership, 32 

the U.S. member firm of KPMG International Cooperative 

(“KPMG International”), a Swiss entity. 

Independent Auditors’ Report 

The Public Printer 

United States Government Printing Office: 

We have audited the accompanying consolidated balance sheets of the United States Government Printing 

Office (GPO) as of September 30, 2010 and 2009, and the related consolidated statements of revenues, 

expenses, and changes in retained earnings and cash flows (hereinafter referred to as “consolidated 

financial statements”) for the years then ended. The objective of our audits was to express an opinion on 

the fair presentation of these consolidated financial statements. In connection with our fiscal year 2010 

audit, we also considered GPO’s internal control over financial reporting and tested GPO’s compliance 

with certain provisions of applicable laws, regulations, and contracts that could have a direct and material 

effect on these consolidated financial statements. 

Summary 

As stated in our opinion on the consolidated financial statements, we concluded that GPO’s consolidated 

financial statements as of and for the years ended September 30, 2010 and 2009, are presented fairly, in all 

material respects, in conformity with U.S. generally accepted accounting principles. 

Our consideration of internal control over financial reporting resulted in identifying certain deficiencies 

that we consider to be significant deficiencies, as defined in the Internal Control over Financial Reporting 

section of this report, as follows:

A. Controls over Preparation, Review and Approval of Special Journal Entries 

B. Controls over Processing and Maintenance of Human Resource Data 

C. Information Technology General and Application Controls 

We did not identify any deficiencies in internal control over financial reporting that we consider to be 

material weaknesses as defined in the Internal Control over Financial Reporting section of this report. 

The results of our tests of compliance with certain provisions of laws, regulations and contracts disclosed 

no instances of noncompliance or other matters that are required to be reported under Government Auditing 

Standards, issued by the Comptroller General of the United States. 

The following sections discuss our opinion on GPO’s consolidated financial statements; our consideration 

of GPO’s internal control over financial reporting; our tests of GPO’s compliance with certain provisions 

of applicable laws, regulations, and contracts; and management’s and our responsibilities. 

Opinion on the Financial Statements 

We have audited the accompanying consolidated balance sheets of the United States Government Printing 

Office as of September 30, 2010 and 2009 and the related consolidated statements of revenues, expenses, 

and changes in retained earnings and cash flows for the years then ended. 
22 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

33 

In our opinion, the consolidated financial statements referred to above present fairly, in all material 

respects, the financial position of the United States Government Printing Office as of September 30, 2010 

and 2009, and the results of its operations and its cash flows for the years then ended, in conformity with 

U.S. generally accepted accounting principles. 

Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements 

taken as a whole. The information in the Management’s Discussion and Analysis section is presented for 

purposes of additional analysis and is not required as part of the consolidated financial statements. This 

information has not been subjected to auditing procedures and, accordingly, we express no opinion on it. 

Internal Control over Financial Reporting 

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, or 

detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination 

of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of 

the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. 

Our consideration of internal control over financial reporting was for the limited purpose described in the 

Responsibilities section of this report and was not designed to identify all deficiencies in internal control 

over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. In our 

fiscal year 2010 audit, we did not identify any deficiencies in internal control over financial reporting that 

we consider to be material weaknesses, as defined above. However, we identified certain deficiencies in 

internal control over financial reporting described in Exhibit I that we consider to be significant 

deficiencies in internal control over financial reporting. A significant deficiency is a deficiency, or a 

combination of deficiencies, in internal control that is less severe than a material weakness, yet important 

enough to merit attention by those charged with governance. 

Exhibit II presents the status of prior year significant deficiencies. 

We noted certain additional matters that we have reported to management of GPO in a separate letter dated 

December 21, 2010.

Compliance and Other Matters 

The results of our tests of compliance as described in the Responsibilities section of this report disclosed 

no instances of noncompliance or other matters that are required to be reported herein under Government

Auditing Standards.

* * * * * * * 

Responsibilities

Management’s Responsibilities. Management is responsible for the consolidated financial statements; 

establishing and maintaining effective internal control; and complying with laws, regulations, and contracts 

applicable to GPO. 

Auditors’ Responsibilities. Our responsibility is to express an opinion on the fiscal year 2010 and 2009 

consolidated financial statements of GPO based on our audits. We conducted our audits in accordance with 

auditing standards generally accepted in the United States of America; and the standards applicable to 

financial audits contained in Government Auditing Standards, issued by the Comptroller General of the 

United States. Those standards require that we plan and perform the audits to obtain reasonable assurance 

about whether the consolidated financial statements are free of material misstatement. An audit includes 

consideration of internal control over financial reporting as a basis for designing audit procedures that are 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 23

34 

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of 

GPO’s internal control over financial reporting. Accordingly, we express no such opinion. 

An audit also includes: 

 Examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated 

financial statements; 

 Assessing the accounting principles used and significant estimates made by management; and 

 Evaluating the overall consolidated financial statement presentation. 

We believe that our audits provide a reasonable basis for our opinion. 

In planning and performing our fiscal year 2010 audit, we considered GPO’s internal control over financial 

reporting by obtaining an understanding of GPO’s internal control, determining whether internal controls 

had been placed in operation, assessing control risk, and performing tests of controls as a basis for 

designing our auditing procedures for the purpose of expressing our opinion on the consolidated financial 

statements, but not for the purpose of expressing an opinion on the effectiveness of GPO’s internal control 

over financial reporting. Accordingly, we do not express an opinion on the effectiveness of GPO’s internal 

control over financial reporting. 

As part of obtaining reasonable assurance about whether GPO’s fiscal year 2010 consolidated financial 

statements are free of material misstatement, we performed tests of GPO’s compliance with certain 

provisions of laws, regulations, and contracts, noncompliance with which could have a direct and material 

effect on the determination of the consolidated financial statement amounts. We limited our tests of 

compliance to the provisions described in the preceding sentence, and we did not test compliance with all 

laws, regulations, and contracts applicable to GPO. However, providing an opinion on compliance with 

laws, regulations, and contracts was not an objective of our audit and, accordingly, we do not express such 

an opinion. 

______________________________ 

GPO’s responses to the findings identified in our audit are presented in Exhibit I. We did not audit GPO’s 

responses and, accordingly, we express no opinion on them. 

This report is intended solely for the information and use of GPO’s management, GPO’s Office of 

Inspector General, the U.S. Government Accountability Office, and the U.S. Congress and is not intended 

to be and should not be used by anyone other than these specified parties. 

December 21, 2010 
24 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Exhibit I

Fiscal Year 2010 Significant Deficiencies 

35 

A. Controls over Preparation, Review and Approval of Special Journal Entries 

We noted that internal controls over the preparation, review and approval of special journal 

entries need to be strengthened. Specifically, we noted 27 of 85 special journal entries tested that 

had been recorded in the wrong general ledger account and/or recorded in the wrong amount. 23 

of the 27 erroneous entries were subsequently detected and corrected by GPO. However, four of 

the 27 erroneous entries were not detected by GPO’s internal controls, of which two were 

subsequently corrected by management to adjust for net overstatements of assets and operating 

income of approximately $250 thousand, and two that were not corrected as the errors were 

considered to be immaterial to the financial statements. 

The Government Accountability Office’s (GAO) Standards for Internal Control in the Federal 

Government requires the following: 

 Control activities are the policies, procedures, techniques, and mechanisms that enforce 

management’s directives, such as the process of adhering to requirements or budget 

development and execution. They help ensure that actions are taken to address risks. Control 

activities are an integral part of an entity’s planning, implementing, reviewing, and 

accountability for stewardship of government resources and achieving effective results. 

 Control activities occur at all levels and functions of the entity. They include a wide range of 

diverse activities such as approvals, authorizations, verifications, reconciliations, 

performance reviews, maintenance of security, and the creation and maintenance of related 

records which provide evidence of execution of these activities as well as appropriate 

documentation. Control activities may be applied in a computerized information system 

environment or through manual processes. 

The causes of the conditions noted above were deficiencies in GPO’s internal control over the 

preparation, review and approval of special journal entries. Additionally, GPO personnel 

responsible for preparing special journal entries sometimes lacked the knowledge and 

understanding behind the purpose for the entry being recorded. In addition, GPO supervisors 

responsible for reviewing and approving the journal entry did not always have the requisite 

knowledge or understanding behind either the transaction at hand or the typical accounting 

related to the overall process or program area in general to perform an effective review of the 

special journal entries before they were recorded. 

Recommendations:

We recommend that GPO strengthen its internal control over the preparation, review and 

approval of special journal entries by: 

1. Requiring that the GPO personnel responsible for preparing an entry should (1) gather the 

necessary facts and supporting documentation to fully understand the entry that they are 

preparing; and (2) perform a self-review over the entry prior to submitting it for approval 

to ensure that the proper accounts, cost codes, function codes, and amounts are used for 

the journal entries; and
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 25

Exhibit I (continued) 

Fiscal Year 2010 Significant Deficiencies 

36 

2. Developing standard operating procedures documenting the requirements and instructions 

for supervisors reviewing journal entries, including: 1) which supervisors are qualified to 

review certain types of special journal entries that impact certain areas (i.e., for all entries 

that impact fixed assets, the Chief of Property and Accounting must approve); 2) what 

information should be verified before the entry can be approved; and 3) the type of 

documentation that is considered to be sufficient to support/justify the basis for the entry. 

Management Response:

Management concurs with these recommendations. 

B. Controls over Processing and Maintenance of Human Resource Data 

We noted the following areas where GPO needs to improve its internal controls over processing 

and maintenance of human resource data: 

a. GPO annual goal sharing incentivizes employees to pay attention to specific areas of GPO 

operations in order to lower expenses and reduce accidents. According to GPO Directive 

665.22, Goal Sharing, Human Capital calculates the share amount and payout for each 

eligible employee. Pursuant to the Directive, all employees who work at least 500 hours 

during the year and who are part of the Central and Field Offices are eligible to receive 

annual goal sharing, with the exception of the Public Printer, Deputy Public Printer, Senior 

Level Service employees, and any employee who is appointed as an Expert or Consultant. 

Annual goal sharing is accrued as of fiscal year end but is not usually paid out until 

February of the following fiscal year. During our fiscal year 2010 payroll test work, we 

noted that the methodology used to determine eligible employees resulted in goal sharing 

payments to ineligible employees for amounts inconsequential to the financial statements. 

b. In addition, we noted for 22 of 86 balances tested the annual leave balance reflected in 

WebTA (GPO’s web-based time and attendance program which employees use to enter 

and keep track of their hours worked and leave used) did not agree to the annual leave 

balance reflected by the National Finance Center (NFC), GPO’s payroll/personnel service 

provider. 

c. During our test work over payroll, we also noted for six of 86 employee personnel files 

reviewed that the GPO payment plan reflected on the Standard Form 50, Notification of 

Personnel Action, did not agree to the GPO payment plan reflected on the SF-52, Request

for Personnel Action, maintained in the employees’ file. However, we noted that in each 

of these instances the amount of the employee’s rate of pay reflected on the SF-50 and SF52 was in agreement with the amount being processed by NFC for the pay period tested. 

We also noted two of 86 instances where an employee’s service date in WebTA did not 

agree with the employee’s service date reflected in NFC’s records (Statement of Earnings 

and Leave) or the SF-52 in the employee’s personnel file. 

GAO’s Standards for Internal Control in the Federal Government requires the following: 

 Control activities are the policies, procedures, techniques, and mechanisms that enforce 

management’s directives, such as the process of adhering to requirements or budget 

development and execution. They help ensure that actions are taken to address risks. Control 
26 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Exhibit I (continued) 

Fiscal Year 2010 Significant Deficiencies 

37 

activities are an integral part of an entity’s planning, implementing, reviewing, and 

accountability for stewardship of government resources and achieving effective results. 

 Control activities occur at all levels and functions of the entity. They include a wide range of 

diverse activities such as approvals, authorizations, verifications, reconciliations, 

performance reviews, maintenance of security, and the creation and maintenance of related 

records which provide evidence of execution of these activities as well as appropriate 

documentation. Control activities may be applied in a computerized information system 

environment or through manual processes. 

The causes of the conditions above were due to deficiencies in internal controls to ensure all 

information processed is properly reviewed for accuracy and reasonableness. 

Recommendations:

We recommend that GPO strengthen its controls over the processing and maintenance of human 

resource and payroll information as follows: 

1. Improve controls within the Human Capital Office and the Finance Department to ensure that 

only employees who are eligible to participate in GPO’s annual goal sharing program 

pursuant to GPO Directive 665.22 receive annual goal sharing payments. 

2. Improve its internal controls to ensure that the GPO payment plan information reflected on 

the SF-50’s maintained in employee personnel files are accurate; and employee service dates 

reflected in WebTA agree with employee service dates reflected in NFC records and the SF52 maintained in the employee’s personnel file. 

3. Develop Standard Operating Procedures detailing how to correctly enter leave adjustments in 

the WebTA system and the NFC mainframe. 

4. Develop a report based on information from NFC that can be run bi-weekly that will identify 

any change made to an employee’s record subsequent to the initial interface with NFC. 

5. Implement a control where payroll personnel reconcile the annual leave balances per WebTA 

to NFC ensuring that the proper numbers of hours are being accrued per pay period and that 

the annual leave balance is correct. 

Management Response:

Management concurs with these recommendations. 

C. Information Technology General and Application Controls 

During fiscal year 2010, deficiencies in the design and/or operations of GPO’s information 

technology (IT) general and application controls were noted in Security Management, Access 

Controls, Segregation of Duties, Configuration Management and Contingency Planning. These 

conditions were generally due to resource constraints and competing priorities at GPO. The 

details of these conditions, several of which have been reported to management in prior years’ 

audit reports, are as follows: 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 27

Exhibit I (continued) 

Fiscal Year 2010 Significant Deficiencies 

38 

1. Security Management 

GPO made progress in fiscal year 2010 to formalize GPO’s established information security 

objectives and high level policy. However, we noted the following conditions: 

a. GPO performs the security authorization process only for major applications and high risk 

and new systems. GPO’s minor applications, such as PROBE, are generally not included in 

the security authorization process. Although GPO had previously completed the security 

authorization process for both the GPO Business Information System (GBIS) and the General 

Support System (GSS), the GSS has operated without a current security authorization since 

February 2010 when the Interim Authorization to Operate (IATO) for the GSS expired. Also, 

the following exceptions were observed during our test work: 

i. System Security Plans for the GPO GSS and GBIS did not describe how GPO’s IT 

security controls addressed the high impact control baseline from the National Institute of 

Standards and Technology (NIST) Special Publication (SP) 800-53. 

ii. Risk Assessment reports for the GSS and GBIS did not identify threats, identify 

vulnerabilities, determine risks, or sufficiently document the results of security 

assessment testing. Although GPO indicated within the risk assessment reports that 

security assessment testing had been performed, documentation was not available to 

evidence that all IT security controls had been tested. Documentation of security 

assessment testing was limited to a matrix in the GSS’s risk assessment report and a 

summarized security assessment report that described findings identified by GPO’s 

testing of the GSS controls, but did not describe the procedures performed or the results 

obtained from individual tests. In addition, security assessment testing was performed by 

the Information Security division at GPO and not by independent assessors. A security 

assessment report was not available for GBIS. 

b. GPO has not implemented a process to ensure that employees and contractors with significant 

information security responsibilities (SISR) receive role-based IT security training. 

c. The Oracle On-Demand Statement on Auditing Standards No. 70, Service Organizations

(SAS-70) report provided by Oracle to GPO only partially covered GBIS. Oracle hosts GBIS 

within the Federal Zone of its Austin, Texas data center. The SAS-70 report for Oracle’s 

Austin Data Center (ADC) only partially applied to GBIS and did not include logical access 

or configuration management controls applicable to the Federal Zone. The SAS-70 report’s 

applicability to GBIS was limited to such data-center-wide controls as physical access and 

environmental controls. However, management did not realize that the SAS-70 did not cover 

the Federal Zone and inadvertently relied on the report. 

The security authorization process is intended to drive the adoption of necessary IT security 

controls. Performing the security authorization process with incomplete information can lead to 

an incomplete assessment of the GPO’s security posture and to slow progress in adopting 

necessary IT security controls. 

Also, operating an application in production without a security authorization increases the risk 

that security control gaps or weaknesses can remain undetected. Not updating a system’s security 

authorization at a minimum of every three years, increases the risk that since the previous security 

authorization, the current state of the system, its controls or the environment it operates in will 
28 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Exhibit I (continued) 

Fiscal Year 2010 Significant Deficiencies 

39 

have changed to the point that the system security plan no longer describes the system’s current 

controls and the risk assessment no longer considers the full range of significant risks to which 

the system is subject. This may result in security control gaps remaining undetected. 

Incomplete system security plans may lead to incomplete security assessment testing that does 

not include all necessary IT security controls and does not document test procedures and results 

for all necessary IT security controls. Not performing security assessment testing of all necessary 

IT security controls, increases the risk that control gaps or weaknesses will not be detected and 

corrected or be mitigated with compensating controls. Also, incomplete security assessment 

testing limits GPO’s ability to perform risk assessments that consider a full range of relevant 

vulnerabilities and risks. Incomplete risk assessments are of limited use for tailoring and scoping 

system security plans. This may lead to necessary controls not being included in system security 

plans. The resulting control gaps may subject data and resources to unauthorized use, loss, or 

disclosure.

Additionally, not documenting system security plans in detail sufficient to plan IT controls that 

are identical or equivalent to the applicable NIST SP 800-53 baseline controls may lead to gaps in 

system security planning, and more specifically, may lead to the GPO not planning and 

implementing IT security controls that are equivalent or identical to those recommended by NIST 

SP 800-53. 

When management does not identify all employees that have significant information security 

responsibilities and monitor their compliance with training requirements, it increases the risk that 

employees with significant information security responsibilities will not be provided the IT 

security training necessary for them to effectively perform their information security functions.

Although GPO has exercised oversight of Oracle On-Demand through other means, the Oracle 

On-Demand SAS-70 report provided to GPO was only minimally applicable to GBIS. This 

limited GPO’s options for exercising effective oversight of Oracle On-Demand. 

2. Access Controls 

Overall, access controls at GPO continue to require strengthening in order to provide a more 

secure financial processing and computing environment. GPO management made progress in 

addressing the access control deficiencies noted in prior years. However, we noted the following 

access controls deficiencies that need improvement: 

a. GPO does not consistently follow required policies and procedures for granting access and 

reviewing access to the financial systems or GPO network. Users were granted access to 

systems without documented approval: 

i. Of a selection of 15 users, one Procurement Information and Control System 

(PICS) user was granted access without documented request and approval evidencing 

the need for the access. 

ii. Of a selection of 25 network user access accounts created in fiscal year 2010, the 

appropriate request forms and related approvals were not provided for six of the 

accounts, all of which were created by the Infrastructure Support Group. Two of the 

accounts were for users with domain administrator access. 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 29

Exhibit I (continued) 

Fiscal Year 2010 Significant Deficiencies 

40 

b. User access was not consistently removed after users left GPO or changed job duties: 

i. Of a list of 120 employees separated in fiscal year 2010, four separated employees 

retained GBIS access and four separated employees retained network access.

Additionally, for separations in the July to August 2010 timeframe, we identified an 

additional five separated employees who retained GBIS access for an average of 55 

days after their separation dates and two separated employees who retained network 

access for 59 days after their separation dates. 

ii. Two of twelve users with privileged super user access to PICS no longer required 

such access. The two users no longer required access because one user had recently 

retired and the other user’s job duties had changed. 

c. GPO does not have effective policies and procedures to revoke the physical and logical 

access of contractors after they leave GPO. To help ensure that the physical and logical 

access for contractors is revoked after they leave, GPO relies on the Contracting Officer’s 

Technical Representatives (COTRs) to report when contractors leave GPO, and also relies on 

contractor badges and network accounts that are set to expire to automatically remove the 

access of inactive contractors. However, from a list of 108 contractors with enabled network 

access accounts, we identified 12 contractor accounts set to never expire. Furthermore, GPO 

relies on a periodic contractor network access review to remove access from contractors who 

have left GPO or otherwise no longer need access. However, evidence of this review was not 

provided for one of the three groups participating in the review. 

d. Periodic reviews of user access were not consistently documented: 

i. The GPO Finance Office lacks documented evidence of a monthly GBIS user review 

and recertification. On a monthly basis, IT Security sent user access lists to the 

Finance Office for review. However, the Finance Office did not retain evidence of 

its reviews. 

ii. Of the eight major groups that take part in the Virtual Private Network recertification 

process, evidence of recertification for three of the groups was not provided. 

e. Access to the GBIS rate maintenance responsibility that controls the ability to modify the All 

Inclusive Hourly Rate (AIHR) is not properly restricted to only those users responsible for 

modifying rate information. 

f. Audit logs at the application level for GBIS are not reviewed. 

g. Of 3,903 network user access accounts, 315 enabled accounts had passwords that were set to 

never expire. A network account without a password expiration is generally appropriate for 

only system service accounts. Of the 25 network access accounts tested where the passwords 

were set never to expire, eight were not system service accounts, but instead belonged to 

employees or contractors. 

h. Information Technology and Systems (IT&S) was unable to provide evidence of the quarterly 

data center access review for one of two quarters selected for testing. 
30 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Exhibit I (continued) 

Fiscal Year 2010 Significant Deficiencies 

41 

Access controls should provide reasonable assurance that computer resources (data files, 

application programs, and computer-related facilities and equipment) are protected against 

unauthorized access, modification, disclosure, loss, or impairment. Granting access to users 

without documented approval increases the risk that unauthorized users will gain access to 

information systems. Not timely removing accounts for separated users increases the risk that 

unauthorized users will gain access to information systems. The effect of inconsistent operation 

of the employee separation process was partially mitigated by a monthly control to review 

separations and remove the system access of any separated employees whose access may have 

been missed by the sign out process. However, undue reliance on this secondary control to 

review and remove system access led to instances where separated employees retained system 

access for a number of weeks after their separation. 

Not consistently documenting periodic reviews of user access increases the risk that users who no 

longer require access will retain access. Also, allowing a user to retain unnecessary privileged 

access to a financially relevant application, such as PICS or GBIS, may result in unauthorized 

changes being made to GPO data. Additionally, not consistently performing and documenting a 

periodic review of the data center physical access list may lead to individuals who do need access 

to the data center retaining such access.

With no audit log reviews done at the application level for GBIS, events within the application 

that may represent attempts to gain unauthorized access or otherwise circumvent controls may not 

be detected and responded to. 

Setting a password to not expire gives an attacker an unlimited amount of time to try to obtain a 

user’s password and have unauthorized access to network resources. If a password is disclosed in 

any way, a user’s account could be indefinitely compromised. 

3. Segregation of Duties 

Effective segregation of duties starts with effective entity-wide policies and procedures that are 

implemented at the system and application levels. The Finance Office has not documented 

conflicting access privileges within GBIS. Instead, the Finance Office relies on the approver’s 

knowledge of GBIS responsibilities to avoid assigning conflicting access privileges to the same 

user. Lack of adequate controls to prevent the assignment of incompatible functions within GBIS 

exposes GPO to the risk that certain users may be assigned the ability to perform multiple critical 

system transactions. As a result, users may be able to initiate and approve an erroneous 

transaction.

4. Configuration Management 

Establishing controls over the modification of application software programs helps to ensure that 

only authorized programs and authorized modifications are implemented. This is accomplished 

by instituting policies, procedures, and techniques that help ensure that program modifications are 

properly authorized, tested, and approved and that access to and distribution of programs is 

carefully controlled. 

During our test work, we noted implementation of configuration changes for GBIS did not adhere 

to strict configuration management practices. Specifically, we noted that one of fifteen changes to 

the GBIS application closed in fiscal year 2010 that we tested did not have the documented 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 31

Exhibit I (continued) 

Fiscal Year 2010 Significant Deficiencies 

42 

approval or evidence of testing for the change. The change where testing and approval was 

undocumented was an emergency change. Due to the urgency of the change, approval appears to 

have been communicated informally. 

During fiscal year 2010, GPO management continued the development of a desktop patch 

management plan which started in fiscal year 2008. However, GPO has not been able to 

complete the implementation of the patch management plan and process. Although in fiscal year 

2010, GPO had implemented a centralized patch management process for Windows servers, it 

had not yet implemented centrally managed security patching of Windows desktops and laptops. 

Failing to test and approve emergency changes before or as soon as possible after migration into 

production could result in errors in programs or data which could cause data to be inaccurate or 

incomplete. Additionally, desktop and laptop computers without current security patches may not 

be properly safeguarded from security vulnerabilities. As a result, vulnerabilities may be 

exploited and data and resources may be subject to unauthorized use, loss, or disclosure. 

.

5. Contingency Planning 

During fiscal year 2010, GPO continued its efforts to minimize the risk of unplanned 

interruptions and recover critical operations. However, a continuity of operations plan for GPO’s 

general support system has not been finalized and is still in draft form. Furthermore, GPO did not 

provide evidence of periodic testing of the continuity of operations plan, although GPO informed 

us that the plan was periodically tested in fiscal year 2010. 

Having a contingency plan that is not approved by management and finalized may lead to the 

plan not being distributed within the GPO. This could limit the plan’s usefulness in the event of a 

disaster.

Without documentation of contingency plan test results, the effectiveness of management’s 

oversight of contingency plan testing is diminished. Specifically, a lack of documented results 

diminishes management’s ability to verify that the scope of testing and test procedures were 

performed consistent with their intent, which could lead to ineffective testing. Also, without 

documented results, management may be unaware of any weaknesses in disaster recovery 

capabilities that may have been revealed by disaster recovery testing. 

Criteria:

Federal Information Processing Standards (FIPS) Publication 200, Minimum Security 

Requirements for Federal Information and Information Systems, requires organizations to 

authorize the operation of organizational information systems. Appendix III to OMB Circular 

No. A-130, Security of Federal Automated Information Resources, requires that major 

applications be authorized “at least every three years”. 

FIPS Publication 200, Minimum Security Requirements for Federal Information and Information 

Systems, requires that organizations ensure that personnel are adequately trained to carry out their 

assigned information security-related duties and responsibilities. 

NIST Special Publication 800-35, NIST Guide to Information Technology Security Services, 

states that IT security managers need to ensure service providers are complying with IT security 
32 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Exhibit I (continued) 

Fiscal Year 2010 Significant Deficiencies 

43 

policy and processes and that compliance reports (such as SAS-70 reports) are a means to 

monitor service providers.

NIST Special Publication 800-53 Revision 3, Recommended Security Controls for Federal 

Information Systems, states that organizations should exercise oversight of external service 

providers. 

NIST Special Publication 800-53 Revision 3, Recommended Security Controls for Federal 

Information Systems, provides more detailed guidance for the security authorization process and 

directs organizations to: 

 Develop security plans for information systems that describe the security controls in place or 

planned for meeting the control requirements from SP 800-53 including rationale for control 

tailoring and supplementation decisions, and

 Assess the planned security controls to determine the extent to which the controls are 

implemented correctly, operating as intended, and producing the desired outcome and to 

document the results of the assessment to provide to the authorizing official. 

NIST Special Publication 800-30, Risk Management Guide for Information Technology Systems,

contains best practices regarding performing risk assessments and directs that risk assessments 

should identify threats, identify vulnerabilities and determine risks. 

NIST Special Publication 800-53 Revision 3, Recommended Security Controls for Federal 

Information Systems, provides guidance for managing access controls and directs organizations 

to:

 Require appropriate approvals for requests to establish accounts; 

 Operate procedures for disabling and removing access when users are terminated, transferred, 

or information system usage or need-to-know/need-to-share changes; 

 Periodically review accounts; 

 Employ the concept of least privilege, by allowing only authorized accesses for users which 

are necessary to accomplish assigned tasks in accordance with organizational missions and 

business functions; 

 Implement separation of duties through assigned information system access authorizations; 

 Enforce password minimum and maximum lifetime restrictions, and 

 Review and keep current a list of personnel with authorized access to the facility where the 

information system resides. 

NIST Special Publication 800-53 Revision 3, Recommended Security Controls for Federal 

Information Systems, states that organizations should remediate vulnerabilities by maintaining a 

process to install security patches. 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 33

Exhibit I (continued) 

Fiscal Year 2010 Significant Deficiencies 

44 

NIST Special Publication 800-53 Revision 3, Recommended Security Controls for Federal 

Information Systems, states that organizations should review and analyze information system 

audit records for indications of inappropriate or unusual activity and report findings to designated 

organizational officials. 

NIST Special Publication 800-53 Revision 3, Recommended Security Controls for Federal 

Information Systems, states that organizations should approve and test configuration-controlled 

changes to the system. 

NIST Special Publication 800-53 Revision 3, Recommended Security Controls for Federal 

Information Systems, states that organizations should develop contingency plans for their 

information systems that are reviewed and approved by designated officials, should test to 

determine the plans’ effectiveness, should review the contingency plan test results and 

initiate corrective actions. 

Recommendations:

We recommend that GPO continue to strengthen its IT general and application controls in each of 

the five identified domains, as follows: 

1. Security Management 

We recommend that GPO management documents system security plans in detail sufficient 

to plan system security controls for general support systems and major applications that are 

identical or equivalent to the applicable NIST SP 800-53 baseline controls. In addition, we 

recommend the following: 

a. GPO management documents its risk assessments and considers a full range of significant 

risks to be consistent with risk assessment requirements from NIST SP 800-30. Also, we 

recommend that when creating a security authorization package, GPO documents procedures 

performed and results obtained for security assessment testing of all planned IT security 

controls. Additionally, we recommend that GPO updates the security authorization package 

for the GSS and, after planning and successfully testing the necessary IT security controls, reauthorizes it for operation. 

b. GPO management documents and implements procedures to identify all personnel with 

significant information security responsibilities and ensures that they receive periodic rolebased IT security training. 

c. GPO requests that Oracle amends the scope of the SAS-70 report for Oracle On-Demand to 

include the Federal Zone where the servers for GBIS are hosted. 

2. Access Controls 

We recommend that GPO management: 

a. Evaluates, revises as necessary, and formally documents procedures for approving access to 

the GSS and GBIS to help ensure that approvals are documented prior to granting users 

access. 
34 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Exhibit I (continued) 

Fiscal Year 2010 Significant Deficiencies 

45 

b. Evaluates, revises as necessary, and formally documents procedures for removing system 

access from separated employees to help ensure that system access is removed timely when 

employees leave GPO. 

c. Ensures that controls for removing system access from separated contractors, including the 

periodic contractor network access review and setting contractor network user accounts to 

expire, are consistently operated for all contractors with access to GPO’s network. 

d. Evaluates, revises as necessary and formally documents procedures for periodically 

reviewing and recertifying access to GPO systems to help ensure that access that users do not 

need is removed timely. 

e. Restricts access to applications and systems, including the GBIS rate maintenance 

responsibility, to personnel based on defined roles and responsibilities. Access should be 

removed from user access accounts that do not require such access. 

f. Enhances its policies and procedures over password settings. With the exception of system 

service accounts, management should ensure that password expiration settings are applied to 

all users’ network accounts. 

g. Designs and implements a risk-based approach to reviewing application audit log events for 

GBIS. 

h. Consistently performs and documents a periodic review and recertification of the data center 

physical access list. The review and certification should be performed and documented, at a 

minimum, on a quarterly basis. 

3. Segregation of Duties 

We recommend that GPO management documents the permissions used within GBIS, identifies 

which permissions conflict, and ensures that conflicting permissions are not assigned to the same 

user.

4. Configuration Management

We recommend that GPO management: 

a. Takes steps to ensure that emergency changes to GBIS are approved and are tested as soon as 

possible after implementation into production. 

b. Completes the development of centrally managed desktop and laptop patch management 

procedures to help ensure that security patches are deployed to desktop and laptop computers 

in a timely manner. We also recommend that GPO documents its standard operating 

procedures for patch management. 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 35

Exhibit I (continued) 

Fiscal Year 2010 Significant Deficiencies 

46 

5. Contingency Planning

We recommend that GPO management: 

a. Finalizes and approves the contingency plan for GPO General Support System Number 1. 

b. Periodically performs contingency plan testing and documents the test plans and the results 

for GPO General Support System Number 1. 

Management Response:

Management concurs with these recommendations. 
36 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Exhibit II 

Status of Prior Year Findings 

47 

Prior Year 

Condition

Prior Year 

Recommendation 

Status as of 

September 30, 

2010 

 Significant Deficiencies 

Review and 

Reporting of 

General Property, 

Plant and 

Equipment

1. We recommend that GPO implement controls to ensure 

that GPO accountants are recording PP&E in the PP&E 

subsidiary ledger and general ledger at full costs upon 

receiving title to the assets. Additionally, program 

managers and accountants should be provided additional 

guidance to ensure proper coding and recording of 

advanced payments. 

2. We recommend that GPO validate the receipt and 

acceptance of an asset (through physical inspection, 

confirmation from program managers, and cross-checking 

the invoice to the receiving documents) or validate GPO’s 

title to an asset, whichever is applicable before recording 

the asset in its books. 

Closed 

Certain

Reconciliation

Controls

We recommend that GPO enforce its existing policies that 

require monthly reconciliations to be performed and timely 

investigate and resolve all differences identified.

Control

Deficiency

Significant 

progress has been 

made and this 

condition is no 

longer considered 

to be a significant 

deficiency. The 

FY 2010 control 

deficiency will be 

reported to 

management of 

GPO in a separate 

letter dated 

December 21, 

2010.

Controls over 

Compilation of the 

Statement of Cash 

Flows

We recommend that GPO implement controls to ensure that 

changes in accounts payable are properly classified in arriving 

at cash flows from operating and investing activities in the 

statement of cash flows.

Closed 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 37

Exhibit II (continued) 

Status of Prior Year Findings 

48 

Prior Year 

Condition

Prior Year 

Recommendation 

Status as of 

September 30, 

2010 

Information Technology General and Application Controls 

Security

Management 

a. We recommend that GPO continue its efforts to implement 

security controls that address the identified risks such that 

GPO may properly certify and accredit its major 

applications and systems, including GBIS and the GSS. 

We further recommend that GPO maintain a schedule to 

track the certification and accreditation process for each 

system, the expected date of authorization, and the 

projected date of re-certification.

b. We recommend GPO enforce compliance with security 

awareness training policies and procedures, including 

disciplinary actions for employees who fail to complete 

the required annual training. 

c. We recommend that GPO complete the development of 

the Memorandum of Understanding with NFC, re-visit the 

agreement periodically to ensure that it continues to meet 

GPO’s needs, and ensure that the agreement is maintained 

through the duration of its relationship with NFC.

d. We recommend that GPO include procedures for tracking 

and monitoring the status of system-specific weaknesses in 

its POA&M process and develop executive-level 

summaries for the POA&Ms. The tracking and review 

should be done at least quarterly.

e. We recommend that GPO enhances the existing system 

inventory to ensure it contains all major agency systems 

and supporting interfaces and peripheral equipments. 

Significant

Deficiency 

This finding has 

been partially 

repeated in the 

current year; see 

Exhibit I, Item 

C.1.
38 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Exhibit II (continued) 

Status of Prior Year Findings 

49 

Prior Year 

Condition

Prior Year 

Recommendation 

Status as of 

September 30, 

2010 

Access Controls a. We recommend that GPO management review and refine 

its procedures for the performance of periodic reviews of 

access to the data center. Such procedures should include 

i) examining the list of users who have been granted 

access to the data center to ensure that all users are 

properly authorized, ii) comparing the list of authorized 

users to the system-generated list of users to ensure that 

access permissions are properly granted for authorized 

users, and iii) updating access permissions to reconcile 

noted exceptions. 

b. We recommend that access to applications and systems in 

the production environment, including GBIS, is restricted 

to personnel based upon defined roles and responsibilities. 

In the event that non-routine access is needed, we 

recommend that the minimum level of access necessary to 

perform the required task(s) be granted temporarily. 

We further recommend that GPO management monitor 

and review for appropriateness the activities of users with 

administrative or special user privileges. We recommend 

that GPO management further develop its policies and 

procedures for requesting and authorizing access to the 

GPO information technology resources to include requests 

for non-standard system accounts.

c. We recommend that GPO management enhance its 

policies and procedures for fulfilling requests for 

password resets. 

d. We recommend that management improve its policies and 

procedures for requesting and authorizing access to GPO 

IT resources to include requests for non-standard system 

accounts.

We further recommend that management ensure that such 

policies and procedures are consistently followed and all 

requests for access are documented and approved.

e. We recommend that GPO develop a complete and 

comprehensive process for identifying, reporting, and 

resolving computer security incidents. 

Significant

Deficiency 

This finding has 

been partially 

repeated in the 

current year; see 

Exhibit I, Item 

C.2.
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 39

Exhibit II (continued) 

Status of Prior Year Findings 

50 

Prior Year 

Condition

Prior Year 

Recommendation 

Status as of 

September 30, 

2010 

Configuration

Management We recommend that management develop and implement the 

following controls to ensure that configuration changes are 

properly developed, tested, and implemented: 

a. Develop detailed descriptions of required deliverables for 

each phase of the System development Life Cycle as 

stated in the GPO Instruction 705.28, GPO Information 

Technology System Development Life Cycle Policy.

b. Continue to develop new and refine existing configuration 

management policies, procedures, and guidance. 

c. Logically restrict access to configuration changes from 

developers in the non-production instance of Oracle after 

the configuration changes are scheduled for testing to 

ensure that no additional changes are made. 

d. Restrict the ability to request and approve changes to 

GBIS through Oracle’s service request process to only 

those individuals who are responsible for the configuration 

management of GBIS. 

e. Complete the development of the desktop patch 

management procedures and process to ensure that 

security patches are deployed to desktop computers in a 

timely and controlled manner. 

Significant

Deficiency 

This finding has 

been partially 

repeated in the 

current year; see 

Exhibit I, Item 

C.4.

Contingency

Planning We recommend that management continue the development of 

its business resumption and contingency planning efforts to 

enable appropriate contingency support to mission critical 

business functions.

Significant

Deficiency 

This finding has 

been repeated in 

the current year; 

see Exhibit I, 

Item C.5.
SECTION IV

Consolidated 

Financial 

Statements

40 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010
Consolidated Balance Sheets

As of September 30, 2010 and 2009

(Dollars in thousands)

U.S. GOVERNMENT PRINTING OFFICE

The accompanying notes are an integral part of these financial statements.

 2010 2009

ASSETS 

	 Current assets	 	

	 	 Fund balance with Treasury (Note 2) $	 340,165	 $	 256,126

	 	 Accounts receivable, net (Note 3)	 	 171,677	 	 210,564

	 	 Inventory, net (Note 4)	 	 32,570	 	 28,831

	 	 Prepaid expenses (Note 5)	 	 244 	 	 1,823

	 	 	 Total current assets 544,656 497,344 

	 General property, plant and equipment, net (Note 6)	 	 110,891	 	 115,141

	 	 	 Total assets $ 655,547 $ 612,485

LIABILITIES AND NET POSITION

	 Current liabilities	

	 	 Accounts payable and accrued expenses (Note 7)	 $	 108,942	 $	 116,137

	 	 Deferred revenues (Note 8)	 	 127,286	 	 98,634

	 	 Accrued annual leave 	 11,153 	 	 11,016

 Total current liabilities 247,381 225,787 

	 Other liabilities	 	

	 	 Workers’ compensation liability (Note 9)	 	 70,884	 	 71,174

	 	 Voluntary separation incentive program	 	 4,562	 	 4,562

 Total liabilities 322,827 301,523 

	 Commitments and contingencies (Notes 10 and 11)	

	 Net position (Note 12)	

	 	 Cumulative results of operations:	

	 	 	 Retained earnings 	 159,651	 	 150,363

	 	 	 Invested capital	 	 92,879	 	 92,879

	 	 Unexpended appropriations	 	 80,190	 	 67,720	

	 	 Total net position 332,720 310,962

 Total liabilities and total net position $ 655,547 $ 612,485 

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 41
Consolidated Statements of Revenues, Expenses, 

and Changes in Retained Earnings

For the Fiscal Years Ended September 30, 2010 and 2009 

(Dollars in thousands)

U.S. GOVERNMENT PRINTING OFFICE

 2010 2009

OPERATING REVENUES 	 	

	 Printing and binding	 $	 774,031	 $	 794,801

	 Appropriations	 	 134,894	 	 119,239

	 Sales of publications	 	 13,244	 	 14,101

	 Agency distributions	 	 6,169 	 5,917

	 	 Total operating revenues 928,338 934,058

OPERATING EXPENSES

	 Printing and reproduction	 	 459,027	 	 497,829

	 Personnel compensation and benefits	 	 242,477	 	 234,623

	 Supplies and materials	 	 128,377 	 	 110,845

	 Other services	 	 36,497	 	 34,118

	 Depreciation and amortization	 	 19,913	 	 17,182

	 Rents, communications, and utilities	 	 16,610 	 	 17,582

	 Travel, transportation, and postage	 	 12,393	 	 15,873

	 Publications sold	 	 4,046 	 	 4,772

	 	 Subtotal 919,340 932,824 

	 	 Income before other operating expenses 8,998 1,234 

OTHER OPERATING EXPENSES

	 Impairment loss (Note 16)	 	 —	 	 (1,189)

	 Decrease (increase) in workers’ compensation liability (Note 9) 	 290	 	 (4,107)

 Net Income (Loss) 9,288 (4,062)

 Retained Earnings, beginning of year 150,363 154,425

 Retained Earnings, end of year $ 159,651 $ 150,363

42 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

The accompanying notes are an integral part of these financial statements.
Consolidated Statements of Cash Flows

For the Fiscal Years Ended September 30, 2010 and 2009

(Dollars in thousands)

U.S. GOVERNMENT PRINTING OFFICE

The accompanying notes are an integral part of these financial statements.

 2010 2009

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $ 9,288 $ (4,062)

	 Adjustments to reconcile net income (loss) to net cash

	 	 provided by (used in) operating activities:	

	 	 	 Depreciation and amortization	 	 19,913 	 	 17,182

	 	 	 Impairment loss	 	 —	 	 1,189

	 	 	 Gain on disposal of general property, plant and equipment	 (2)	 	 (7)

	 	 Changes in assets and liabilities:	

	 	 	 (Increase) decrease in assets-	

	 	 	 	 Accounts receivable	 38,887	 	 (56,868)	 	 	 	

	 	 	 	 Inventory	 	 (3,739) 	 	 19,460

	 	 	 	 Prepaid expenses	 	 1,579	 	 (920)

	 	 	 Increase (decrease) in liabilities-	

	 	 	 	 Accounts payable and accrued expenses	 	 (8,409)	 	 11,559

	 	 	 	 Deferred revenues	 	 28,652	 	 9,258

	 	 	 	 Accrued annual leave	 	 137 	 	 467

	 	 	 	 Workers’ compensation liability	 	 (290) 	 	 4,107	 	 	 	

	 	 	 	 Product warranty liabilities	 	 — 	 (1,418)

 Total adjustments 76,728 4,009

 Net cash provided by (used in) operating activities 86,016 (53)

CASH FLOWS FROM INVESTING ACTIVITIES

	 Capital purchases	 (14,449)	 	 (30,036)

	 Proceeds from sale of general property, plant and equipment	 2	 	 7

 Net cash used in investing activities (14,447) (30,029)

CASH FLOWS FROM FINANCING ACTIVITIES 

	 Increase in unexpended appropriations	 	 12,470	 	 20,957

 Net cash provided by financing activities 12,470 20,957

 Net Increase (decrease) in fund balance with Treasury 84,039 (9,125)

Fund balance with Treasury, beginning of year	 	 256,126 	 	 265,251

Fund balance with Treasury, end of year $ 340,165 $ 256,126

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 43
44 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

SECTION IV (cont’d)

Notes to Consolidated Financial Statements

September 30, 2010 and 2009

1. Summary of Significant Accounting Policies

A. Reporting Entity

The U.S. Government Printing Office (GPO or Agency) is a Legislative Branch agency of the Federal Government. The Agency’s 

mission and authority are derived from various statutes codified in Title 44, Public Printing and Documents, of the United States Code

(U.S.C.). The Congress established GPO to provide the Federal Government with an efficient and effective means for the production, 

procurement, and dissemination of Federal Government information to the Nation.

The Public Printer of the United States, appointed by the President of the United States with the advice and consent of the 

U.S. Senate, serves as the Agency head and oversees GPO’s programs and operations. These programs and operations are funded 

through a business-type revolving fund, authorized by 44 U.S.C. § 309, and annual and special appropriations provided by Congress. 

The GPO Revolving Fund maintains a system of accounts and records transactions to comply with the requirements of Section 309 

of U.S.C. Title 44.

The Joint Committee on Printing (JCP) has primary responsibility for Congressional oversight of GPO’s programs and operations. 

The JCP is comprised of five members of the U.S. House of Representatives and five members of the U.S. Senate. Every two years 

the JCP chairmanship and vice-chairmanship rotate between the House and the Senate.

B. Accounting Environment

Basis of Accounting

As allowed by the Federal Accounting Standards Advisory Board (FASAB), the consolidated financial statements of GPO have been 

prepared in conformity with U.S. generally accepted accounting principles (GAAP) as promulgated by the Financial Accounting 

Standards Board (FASB). Under GAAP, revenues are recognized when earned, and expenses are recognized when incurred, without 

regard to the timing of the receipt or disbursement of cash.

Basis of Presentation and Consolidation

GPO prepares annual financial statements that reflect the overall financial position and results of operations to meet the requirements of GAAP and 31 U.S.C. § 3515(b) mandated by 44 U.S.C. § 309(e). The accompanying consolidated financial statements include 

all funds under GPO’s control that have been established and maintained to account for the resources of the Agency. All significant 

intra-agency balances and transactions have been eliminated in the preparation of the consolidated financial statements. The GPO 

consolidated financial statements do not include the effects of centrally administered assets and liabilities of the Federal Government, 

as a whole, such as interest on the public debt, which may in part be attributable to GPO. Other Federal agencies make financial 

decisions and report certain financial matters on behalf of the entire Federal Government, including matters in which individual 

agencies may be an indirect party. Financial matters maintained or reported by other Federal agencies in which GPO is indirectly 

involved include employee benefit plans and certain legal settlements.

Funds

GPO maintains a revolving fund and a general fund to account for its various programs and operations. Each of these funds is a distinct fiscal and accounting entity that accounts for cash and other financial resources together with all related liabilities and equities.

Revolving Fund – The GPO Revolving Fund is an inter-governmental fund established by Congress on July 1, 1953. This businesstype revolving fund is available without fiscal limitation for financing the operation and maintenance of GPO, except for those 

information dissemination programs of the Agency that are funded by annual appropriations.

The GPO Revolving Fund is a self-sustaining financial entity used primarily to finance and account for GPO’s Printing and 

Binding Operations and Publication and Information Sales Program. Accordingly, the two major sources of revenue to the Revolving 

Fund are reimbursements from the Congressional Printing and Binding Appropriations and other Federal customers for providing 

printing, binding and distribution services, including U.S. Passport production, and publication and subscription sales to the public.
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 45

The Printing and Binding Operations account for the revenues and expenses associated with services provided by in-plant printing and purchased printing. The costs of these services are recovered through a system of rates used to bill customers. These rates 

include direct costs, depreciation, overhead, and related expenses permitted under 44 U.S.C. § 309.

The Publication and Information Sales Program sells Federal Government information products to the public. The price of 

Federal Government publications sold through this program is established in accordance with 44 U.S.C. § 1708. 

General Fund – The General Fund is financed by two annual Congressional appropriations to the Agency. These appropriated 

funds finance the cost of GPO’s support of the Congress, and the Government information dissemination services provided to the 

public without charge to the recipients.

The Congressional Printing and Binding (CP&B) Appropriation is used to pay the cost of the printing and binding requirements 

of the Congress, and the printing, binding, and distribution of publications authorized by law to be distributed to others without 

charge to the recipient. 

The Salaries and Expenses (S&E) Appropriation is used by the Library Services and Content Management, a GPO business unit, 

to fund four information dissemination programs: the Federal Depository Library Program (FDLP) that includes FDsys and 

GPO Access; the Cataloging and Indexing Program; the By-Law Distribution Program; and the International Exchange Program. The 

majority of this annual appropriation is used to finance the FDLP.

Expenditures from these appropriations are used to reimburse the GPO Revolving Fund for printing and binding, and other 

services and supplies furnished by GPO in accordance with U.S.C. Title 44.

C. Fund Balance with Treasury

Fund balance with Treasury represents all balances in GPO accounts with the U.S. Department of the Treasury (Treasury). Treasury 

processes cash receipts and disbursements for GPO.

D. Accounts Receivable 

Accounts receivable consist of intra-governmental amounts due to GPO, as well as amounts due from the public. Accounts receivable are shown net of a provision for uncollectible accounts. The allowance for doubtful accounts is based on GPO’s recent debt 

collection experience.

E. Inventories

Inventories of publications held for sale are valued at the lower of cost, using the weighted average cost method, or market. The 

publication inventories are shown net of a provision for excess inventory that may be disposed of by the Agency in the future. 

The allowance for surplus publications is based on life cycle studies of product sales that provide a historical basis for determining 

the percentage of potential excess inventory stock items on hand. Inventories of paper, supplies and materials include the cost of 

production material (e.g., computer chips, ink, book cloth), as well as the cost of administrative-use supplies. These inventories are 

valued at the lower of cost, using the weighted moving average cost method, or market. Inventories of supplies and materials are 

shown net of a provision for obsolescence. The allowance for obsolescence is determined based on historical usage of paper, supplies and materials.

F. Property, Plant and Equipment

Property, plant and equipment purchases are generally valued 

at their acquisition cost. The Agency capitalizes the cost of the 

property as an asset when the cost is $25,000 or more, and the 

estimated useful life is two years or more. The costs of major 

alterations and renovations to the GPO facility are capitalized 

and depreciated, while the costs of maintenance and repairs are 

expensed when incurred. The depreciation of property, plant 

and equipment is calculated on a straight-line basis over the 

estimated useful life of the asset. The depreciation of an asset 

commences the month after the asset is first placed in service. 

The table at right reflects the standard estimated useful 

life of each major asset category. Exceptions to these standard 

estimated asset lives are authorized when justified.

Section IV: Consolidated Financial Statements

Estimated Useful Life Of Capitalized Assets

Asset Category Estimated Useful Life (Years)

Land	 N/A

Building Improvements	 20

Building Appurtenances	 20

Other Structures and Facilities	 20

Furniture and Fixtures	 20

Leasehold Improvements	 10

Plant Machinery and Equipment	 10

Office Machinery and Equipment	 5

Motor Vehicles	 5

Computer Software	 3
46 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Land has an indefinite life and is not subject to depreciation. Leasehold improvements are generally depreciated over 10 years or 

the remaining duration of the lease for real property, whichever is shorter.

Printing equipment transferred to GPO from other Federal agencies under the provisions of 44 U.S.C. § 312 is valued in accordance with JCP Regulation Number 26, Government Printing and Binding Regulations. This valuation approximates fair market 

value at the time of the property transfer.

G. Deferred Revenues

Deferred revenues are funds received in advance from customers for the future delivery of goods and services. The Agency records 

these advances as revenue when the goods are delivered or the services are performed.

H. Accrued Annual Leave

Annual leave is accrued as a liability when earned. The liability is reduced when leave is used. The annual leave liability is calculated 

using the current hourly salary or wage of employees multiplied by their total hours of unused annual leave. Employees will receive 

a lump-sum payment for any unused annual leave when they separate from Federal service or enter active military service. 

Sick leave and other types of non-vested leave are expensed when used. Employees are not entitled to a lump-sum payment for 

their unused sick leave.

I. Workers’ Compensation Liability

The Federal Employees’ Compensation Act (FECA) provides income and medical cost protection to covered Federal civilian employees injured on the job, employees who have incurred a work-related occupational disease, and beneficiaries of employees whose 

deaths are attributable to job-related injuries or occupational diseases.

The U.S. Department of Labor (DOL) administers the FECA Program, which provides workers’ compensation benefits to GPO 

employees and others through the Special Benefit Fund. GPO annually reimburses DOL for the cost of FECA benefits paid on GPO’s 

behalf. Unreimbursed balances due to DOL at year end are included in accounts payable and accrued expenses in the accompanying consolidated balances sheets.

Future workers’ compensation estimates are generated from the application of actuarial procedures developed by DOL to 

estimate the liability for FECA benefits. The liability for future workers’ compensation benefits includes the expected liability for 

death, disability, medical, and miscellaneous costs for approved compensation cases, and a component related to injuries incurred 

but not reported. The liability is determined by utilizing historic benefit payment patterns related to a particular period to estimate 

the ultimate payments related to that period.

J. Commitments and Contingencies

FASB Accounting Standards Codification, Asset Retirement Obligations (ASC 410-20), requires a reporting entity to recognize a liability 

for the fair value of a conditional asset retirement obligation if the fair value of the liability can reasonably be estimated. Accordingly, 

GPO has estimated and recorded the asset retirement obligations. Liabilities from loss contingencies, including environmental remediation costs not within the scope of ASC 410-20, arising from claims, assessments, litigation, fines and penalties, and other sources, 

are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be 

reasonably estimated. Loss contingencies that do not meet these criteria are not accrued. 

K. Revenue Recognition

Printing and Binding – GPO must be reimbursed for the cost of printing and binding services furnished to customers at rates 

set by the Public Printer in accordance with 44 U.S.C. §309. Revenues from in-house printing and binding work are recognized on 

a value-added basis, as work is performed, while revenues from commercially procured printing and binding are recognized on 

the date the contract requirements are fulfilled, which is generally the date of shipment by the commercial printer to the customer 

agency. Revenues related to the manufacture of passports by GPO for the U.S. Department of the State are recognized at annually 

negotiated rates per passport at the time that the printing and binding process is complete.

Section IV: Consolidated Financial Statements
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 47

Appropriations – Appropriation revenues are recorded when a liability is incurred for purposes permitted by the appropriations 

act and program legislation. Unexpended appropriations are recorded as a component of net position. Unexpended appropriation 

balances are generally canceled after 5 years.

Sales of Publications – Revenues from the sale of publications and subscriptions to customers are recognized when shipped by 

the Publication and Information Sales Program.

Agency Distributions – Revenues from the storage, packaging, and distribution of publications for other Federal agencies are 

recorded when services have been performed.

L. Expense Recognition 

Printing and Reproduction – This expense includes the cost of printing, duplicating, and reproduction orders that are procured 

by GPO from the private sector to satisfy the needs of the Federal Government. The expense is generally recorded on the date of 

shipment by the contractor, and is shown net of vendor prompt payment discounts earned by the Agency.

Personnel Compensation and Benefits – Personnel compensation consists of the wages and salaries, including overtime 

premium and night differential, paid to GPO employees on a biweekly cycle. Personnel benefits include the Agency’s share of 

contributions towards Federal Employees Health Benefits (FEHB), Federal Employees’ Group Life Insurance (FEGLI) and two Federal 

Government civilian employee retirement programs. The two retirement programs are the Civil Service Retirement System (CSRS) 

and the Federal Employees Retirement System (FERS) that includes the related Thrift Savings Plan (TSP). Personnel benefits also include the current cost of workers’ compensation expense, transit benefits provided by GPO to employees, and the cost of incentive 

and performance awards to employees. Personnel compensation and benefits are recorded as expenses when earned by employees.

Supplies and Materials – Computer chips required for passport production are the most significant cost component within the 

category of supplies and materials. Passport supplies and materials are recorded as an expense when used in production operations. The second most significant component is paper and paper products that are commercially procured to satisfy GPO’s in-plant 

printing requirements and customer orders for blank paper. The expense is recorded when paper is drawn from inventory to fulfill 

an order or delivered to the customer, in the case of direct mill-to-customer shipments. This expense category also includes all other 

supplies and materials that are not capitalized as property, such as personal computers, furniture, and office supplies. 

Other Services – This expense category includes the costs of professional services by contractors and the expenses related to a 

provision for uncollectible accounts receivable. The expenses for professional services are recognized when the contracted services 

have been performed. The expenses for uncollectible accounts receivable are recognized when receivables are deemed as potentially uncollectible, based on GPO’s collection experience.

Depreciation and Amortization – GPO uses the straight-line method of depreciation and amortization to allocate a portion of 

the acquisition cost of property, plant and equipment to each accounting period. The acquisition cost of each capitalized asset is 

depreciated, or amortized, over the asset’s estimated useful life which is generally measured in years. The monthly depreciation, or 

amortization, of a capitalized asset commences at the beginning of the first full-month after the date that the capitalized asset was 

placed in service.

Rents, Communications, and Utilities – Rent and lease costs are incurred for the use of building space, equipment, and motor 

vehicles. GPO leases office and warehouse space from the U.S. General Services Administration (GSA) and commercial landlords. 

GPO also rents automobiles and other motor vehicles. Communications costs include data, voice, video, and wireless services. 

Utilities include electricity, gas, steam, and water. Expenses are recorded as services are provided and energy resources are used.

Travel, Transportation, and Postage – This category includes travel and transportation costs of persons or things, including 

employee relocation costs, and postage expenses. Travel costs are incurred by persons on official business for audits, attendance at 

conferences, inspections, investigations, training, or other authorized business of the Agency. Transportation includes shipping costs 

for printing and reproduction products from GPO or contractors to customer agencies, depository libraries, or other GPO locations. 

Incurred travel expenses are accrued when they are estimable, while transportation costs are generally recorded on the date of 

shipment. Postage and commercial mail services are recorded as expenses when the delivery services are provided by the U.S. Postal 

Service and commercial carriers.

Section IV: Consolidated Financial Statements
48 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

Publications Sold – Publications sold expense represents the cost of publications sold to customers and the cost of subscriptions 

issued to subscribers. Expenses are recorded at the time of publication sale or subscription issuance. Additionally, this expense 

includes any change in the estimated cost of the publications held in inventory for sale to the public that are potentially obsolete, 

damaged, or surplus. The allowance for surplus publications is based on life cycle studies of product sales that provide a historical 

basis for the determination of potential excess inventory on hand.

M. Consolidated Statements of Cash Flows 

The consolidated statements of cash flows identify cash receipts and disbursements and classify each into operating, investing, and 

financing activity categories. This statement assesses the ability of GPO to generate funds from current operations, to identify financing acquired from outside sources, and to identify the major non-operating (investing) uses of funds.

N. Use of Estimates

The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and 

assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent liabilities at the date of 

the consolidated financial statements, and the amount of revenues and expenses reported during the reporting period. Actual results 

could differ from these estimates. 

The estimates that most significantly impact assets, liabilities, revenues, and expenses reflected in the accompanying consolidated financial statements are: the allowance for inventory obsolescence for supplies, materials, and publications held for sale; the 

allowance for doubtful accounts related to accounts receivable; the estimated useful lives of capitalized assets; the actuarial estimated 

liability for future workers’ compensation benefits; and the estimate for contingent liabilities.

O. Fair Value Measurement

GPO adopted FASB Accounting Standards Codification, Fair Value Measurements and Disclosures (ASC 820-10), on October 1, 2008 

for fair value measurements of financial assets and financial liabilities that are recognized or disclosed at fair value in the financial 

statements on a recurring basis. ASC 820-10 defines “fair value” as the price that would be received to sell an asset, or paid to 

transfer a liability, in an orderly transaction between market participants at the measurement date. This standard also establishes a 

framework for measurement of fair value and expands disclosure about fair value measurements.

P. Reclassifications

Certain amounts in the Consolidated Balance Sheet as of and for the year ended September 30, 2009, have been reclassified to conform to September 30, 2010 presentation. Specifically, the long-term obligation to the Office of Personnel Management (OPM) for the 

Voluntary Separation Incentive Program in fiscal 2009 was reclassified to a separate line item from the accounts payable and accrued 

expense line item on the Consolidated Balance Sheets.

Q. Tax Status

GPO is a legislative branch agency within the Federal Government, and therefore, is not subject to federal, state, or local income 

taxes. Accordingly, no provisions for income taxes are recorded by the Agency.

Section IV: Consolidated Financial Statements
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 49

2. Fund Balance with Treasury

A table of items included in GPO’s funds with Treasury, including funds on-hand or in-transit to the Treasury, as of 

September 30, 2010 and 2009 follows.

Unrestricted funds are available to meet the financial obligations of the Revolving Fund. Restricted funds are comprised 

of customer deposit accounts, other deferred revenues, and restrictions for accrued wages and salaries, payroll taxes and 

other withholdings, earned annual leave not used by employees, and amounts due to the Office of Personnel Management 

(OPM) from the GPO Voluntary Separation Incentive Program. These funds can only be used for the purpose specified.

Supplemental and other general funds include unexpended appropriations made to the GPO for specific purposes as 

discussed in Net Position, Unexpended Appropriations (Note 12B). 

Section IV: Consolidated Financial Statements

(Dollars in thousands)

 2010 2009

Fund Balances: 

	 Revolving Fund:	 	

	 	 Unrestricted $	101,016	 $	 60,160

	 	 Restricted: 

	 	 	 Customer deposit accounts	 	 121,623	 	 95,290

	 	 	 Other	 	 	 	 34,205	 	 31,021

	 	 	 	 Total revolving fund 256,844 186,471

	 General Funds:	 	

	 	 Congressional printing and binding 	 42,922	 	 38,261

	 	 Salaries and expenses 	 32,183	 	 26,451

	 	 Supplemental and other	 	 8,216 	 	 4,943

	 	 	 	 Total general funds 83,321 69,655

 Total $ 340,165 $ 256,126 

Status of Fund Balance with Treasury:

	 Unobligated balance:	

	 	 Available	 	 $	 111,989	 $	 42,556

	 	 Unavailable	 	 	 8,216	 	 4,943

	 	 	 	 Total 120,205 47,499

	 Obligated balance not yet disbursed	 	 219,960	 	 208,627

	 	 	 	 Total $ 340,165 $ 256,126
50 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

3. Accounts Receivable, Net

Accounts receivable, net of an allowance for doubtful accounts, as of September 30, 2010 and 2009, consisted of the following.

The majority of accounts receivable are due from other Federal agencies that ordered goods and services from GPO. By law, these 

customers are required to reimburse the GPO Revolving Fund for the cost of their orders.

Unbilled accounts receivable results from the delivery of the goods and performance of services for which bills have not been 

presented to the customer for payment yet. Accordingly, unbilled accounts receivable includes the value of work in process and 

completed work for customer orders as of September 30, 2010 and 2009.

Employee accounts receivable includes amounts owed by current and former employees who were advanced leave. Employees 

generally repay their leave indebtedness through biweekly installments from their earned leave or from leave donations from other 

employees under the GPO Leave Donation Program. 

4. Inventory, Net

Inventories, net of an allowance for surplus and obsolete stock, as of September 30, 2010 and 2009, consisted of the following.

The supplies and materials inventory included $14.1 million in electronic chips at September 30, 2010, compared to $10.2 million at 

September 30, 2009. The computer chips are used in the production of electronic Passports. 

Section IV: Consolidated Financial Statements

(Dollars in thousands)

 2010 2009

Federal Agencies:		

	 Unbilled accounts receivable	 $	117,608	 $	 160,730

	 Billed completed work	 	 57,755	 	 51,801

	 	 	 Subtotal 175,363 212,531

Other receivables:		

	 The public		 	 	 	 1,795	 	 4,340

	 GPO employees	 	 	 1,255	 	 1,125

 Subtotal 3,050 5,465

	 	 	 Total accounts receivable 178,413 217,996

Less: Allowance for doubtful accounts	 	 (6,736)	 	 (7,432)

 Total accounts receivable, net $ 171,677 $ 210,564

(Dollars in thousands)

 2010 2009

Publications for sale	 	 $	 7,859	 $	 7,485

Paper	 	 	 	 	 	 5,172 4,539

Supplies and materials	 20,714 	 16,920

Work in process	 	 	 3,977	 4,882

	 	 	 Total inventory 37,722 33,826

Less: Allowance for surplus and obsolete inventory	 (5,152) 	 (4,995)

	 	 	 Inventory, net $ 32,570 $ 28,831
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 51

5. Prepaid Expenses

Prepaid expenses were $244,000 as of September 30, 2010, and $1.8 million as of September 30, 2009. The decrease of 

$1.6 million prepaid expenses in the fiscal 2010 was due to a prepayment for computer infrastructure upgrades made in 

fiscal 2009. 

6. General Property, Plant and Equipment, Net

Net property, plant and equipment as of September 30, 2010 and 2009, consisted of the following.

General property, plant and equipment decreased by $4.2 million in fiscal 2010 from fiscal 2009 due primarily to capital 

additions of approximately $15.7 million and offset by annual depreciation of approximately $19.9 million. The majority of 

the capital additions were for computers and computer software of $15.3 million. The increase in computers and computer 

software was primarily due to FDsys software ($10.9 million) placed into service during fiscal 2010, $5.5 million of which 

was in capitalized software in process at September 30, 2009. 

During fiscal 2010, GPO also made other capital expenditures including printing production equipment for about $1.1 

million, and renovating the GPO bookstore for $460,000.

Capital improvements in process at September 30, 2010 were mainly comprised of the Heidelberg Press of about 

$884,000, the uninterruptible power supply (UPS) to the data center of about $388,000, and a card punching and die cutting system of $189,000.

Depreciation expense was $19.9 million for fiscal 2010 and $17.2 million for fiscal 2009. The increase of $2.7 million in 

fiscal 2010 was largely the result of amortizing FDsys (placed into service in fiscal 2009) for the entire year, and amortizing 

new FDsys software modules placed into service in fiscal 2010.

Section IV: Consolidated Financial Statements

(Dollars in thousands)

 2010 2009

Land	 	 	 	 	 	 $	 9,971 $	 9,971

Buildings and improvements	 	 82,629 	 78,181

Plant machinery and equipment	 	 93,121 	 	 93,323 

Computers and computer software	 85,703 	 70,407 

Furniture and fixtures	 	 6,113 6,321

Motor vehicles	 	 	 	 	 719 	 719

Leasehold improvements	 10,115 	 10,191

Capitalized software in process 	 3,103	 	 5,457

Capital improvements in process 	 1,523	 	 4,776

 Total 292,997 279,346

Less: Accumulated depreciation and amortization	 (182,106)	 	(164,205)

 General property, plant and equipment, net $ 110,891 $ 115,141 
52 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

7. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2010 and 2009, were composed of the following. 

The decrease in accounts payable and accrued expenses of $7.2 million resulted from a decrease in accounts payable to printing 

contractors of $11.4 million, offset by increases in payables for capital assets and production materials of $1.2 million and $3.0 

million, respectively. At September 30, 2010 and 2009, accounts payable U.S. Government agencies includes amounts due to DOL for 

unreimbursed FECA benefits paid by DOL on GPO’s behalf of $7.2 million and $7.8 million, respectively. 

8. Deferred Revenues 

As of September 30, 2010 and 2009, deferred revenues from customers consisted of the following.

GPO held $121.6 million and $95.3 million in customer deposit accounts as of September 30, 2010 and 2009, respectively. Of these 

amounts, Federal Government customers had advanced funds of $118.7 million and $92.2 million for printing and binding deposit 

accounts, and customers advanced $2.9 million and $3.1 million for publication and information sales program deposit accounts as of 

September 30, 2010 and 2009, respectively. Additionally, GPO held advanced funds from the Federal Government and other customers of $2.3 million and $2.9 million for subscriptions for the sales of publications as of September 30, 2010 and 2009, respectively. The 

restricted funds in these deposit accounts will generally be applied to future orders placed by customers or refunded on request.

GPO defers the recognition of revenues for subscription services that will be provided to customers in the future. Customers pay 

for ink-on-paper subscriptions to the Congressional Record, the Federal Register, and other publications in advance of delivery. The 

revenues from subscriptions are recognized as the periodicals are published and distributed to subscribers. The unfilled subscription balance will be refunded in instances where the subscription is no longer available for sale, or the customers cancel their 

subscription.

The Agency also defers the recognition of revenues for unfilled customer orders of publications and other information products 

until the orders are shipped.

GPO defers the recognition of revenues for advance billings to Federal Government customers. Advance billings are occasionally 

used to finance the cost of producing certain large printing and binding jobs. GPO will recognize the revenue as work is completed.

Section IV: Consolidated Financial Statements

(Dollars in thousands)

2010 2009

Deposit accounts	 	 	 $	 121,623	 $	 95,290 

Subscriptions	 	 	 	 	 2,308 	 2,909

Unfilled orders 	 	 	 208 	 247

Advance billings	 	 	 	 3,147 	 188

	 	 	 Total $ 127,286 $ 98,634

(Dollars in thousands)

2010 2009

Accounts payable:	

	 Commercial printing $ 	 53,687 	 $ 	 65,057

	 U.S. Government agencies	 	 8,213 	 12,596

	 Other	 	 	 	 	 	 34,453 	 	 27,261 

	 	 	 Total accounts payable 96,353 104,914 

Accrued salaries and payroll taxes	 	 12,589 	 11,223

	 	 	 Total accounts payable and accrued expenses $ 108,942 $ 116,137
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 53

9. Workers’ Compensation Liability

The DOL develops an actuarial estimate of future workers’ compensation benefits for each Federal entity to use for financial reporting each year. The U.S. Department of the Treasury requires Federal entities to use DOL’s estimates for intra-governmental accounting of this liability. The workers’ compensation liability estimate for GPO was $70.9 million as of September 30, 2010, and $71.2 

million as of September 30, 2009. 

The DOL liability estimate includes the expected payments for death, disability, medical, and miscellaneous costs for approved 

compensation cases, as well as a component for incurred but not reported claims. The liability is determined using historical benefit 

payment patterns related to specific incurred periods to predict the ultimate payments related to those periods. The methodology 

provides for the effects of inflation and adjusts historical payments to current year constant dollars by applying wage inflation factors 

(cost of living adjustments or COLAs) and medical inflation factors (consumer price index medical or CPIMs) to the calculation of 

projected benefits. The COLAs and CPIMs used in the compensation projections for 2010 and 2009 follow.

Projected annual payments were discounted to the present value based on the Office of Management and Budget’s (OMB) 

economic assumptions for 10-year Treasury notes and bonds. For fiscal 2010, interest rate assumptions were 3.653 percent in Year 1, 

and 4.300 percent in Year 2 and thereafter. For fiscal 2009, interest rate assumptions were 4.223 percent in Year 1, and 4.715 percent 

in Year 2 and thereafter. 

10. Commitments

 10. A. Operating Leases

As of September 30, 2010, GPO was committed to various non-cancelable operating leases, primarily covering warehouse and 

office space. Some of these leases contain escalation clauses and renewal options. Lease and rental expenses for real and personal 

property were $3.9 million and $3.7 million for fiscal 2010 and 2009, respectively.

A schedule of future minimum rental payments required under operating leases by type, which have initial or remaining noncancelable lease terms in excess of one year, follows.

Section IV: Consolidated Financial Statements

	 	 	 	

COLA CPIM

Fiscal Year 2010 2009 2010 2009

2010	 N/A	 0.47%	 N/A	 3.42%

2011	 2.23%	 1.40%	 3.45%	 3.29%

2012	 1.13%	 1.50%	 3.43%	 3.48%

2013	 1.70%	 1.80%	 3.64%	 3.71%

2014	 1.90%	 2.00%	 3.66%	 3.71%

2015 and beyond	 1.93%	 2.00%	 3.73%	 3.71%

Future Minimum Rental Payments Required Under Operating Leases

(Dollars in thousands)

Fiscal Year Warehouse Office Total

2011	 $	 993	 $	 517 	 $	 1,510

2012	 	 1,002	 	 502	 	 1,504

2013	 697	 	 197	 	 894

2014	 	 159	 	 111	 	 270

2015	 	 —	 	 113	 	 113

2016 and beyond	 —	 9	 9

Total minimum lease payments $ 2,851 $ 1,449 $ 4,300
54 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

 10. B. Obligations

GPO had unliquidated obligations of $220.0 million and $208.6 million, at September 30, 2010 and 2009, respectively, of which 

$117.1 million and $122.1 million, respectively, are undelivered orders related to commercial printing. These obligations include 

purchase orders and contractual obligations by GPO to acquire goods and services from the private sector and other sources. Some 

of these orders are scheduled for delivery or performance in the next fiscal year.

11. Contingencies

 11. A. Administrative Proceedings, Legal Actions, and Claims

GPO is a party in various administrative proceedings, legal actions, and claims brought against the Federal Government by employees, contractors, and other parties. The uncertainty involving the outcome of these pending matters will be resolved when future 

events occur or fail to occur. In some cases, legal matters relate to contractual arrangements GPO has entered into for goods and 

services procured on behalf of other Federal entities. The costs of administering, litigating, and resolving these actions are borne 

by the GPO Revolving Fund unless the costs are recovered from another Federal entity. As of September 30, 2010 and 2009, GPO 

has recorded estimated liabilities of $2,290 and $33,500, respectively, related to claims that management believes the likelihood of 

an adverse result against GPO is probable. Such amounts are included in accounts payable and accrued expenses in the financial 

statements. Certain legal matters in which GPO is a named party may be administered and litigated on behalf of GPO by the U.S. 

Department of Justice. In these cases, amounts paid under any judgment, compromise settlement, or award are funded from the 

Judgment Fund administered by the U.S. Department of the Treasury (31 U.S.C. § 1304). The Judgment Fund paid a total of $81,000 

and $366,000 on behalf of GPO for the years ended September 30, 2010 and 2009, respectively. These amounts are not reflected in 

GPO’s consolidated financial statements.

There were no litigation contingencies involving GPO where the risk of loss was reasonably possible as of September 30, 2010 

and 2009, respectively.

 11. B. Environmental Liabilities

The GPO Central Office in Washington, DC, is located in an industrial facility comprised of four older buildings that contain asbestos 

building materials. When they were constructed, asbestos was a common building material used as flame retardant, thermal system 

insulation, and in a variety of building materials (e.g., wall, floor, and ceiling tiles). GPO asbestos abatement efforts have been 

successful in the removal, enclosure, and encapsulation of friable asbestos to comply with applicable laws and regulations. GPO 

routinely performs asbestos abatement when unexposed asbestos is detected during building renovation projects.

The estimated costs to remove exposed asbestos within the GPO facility, mainly encapsulated pipe insulation, were $604,000 

as of September 30, 2010 and $599,000 as of September 30, 2009. These amounts are included in accounts payable and accrued 

expenses on the financial statements. The cost to remediate all non-visible asbestos is not reasonably estimable and accordingly has 

not been accrued in the financial statements due to the uncertainty surrounding the date and manner in which the liability will be 

settled.

12. Net Position

 12. A. Cumulative Results of Operations

Retained Earnings – Retained earnings include the net operating results of the GPO Revolving Fund, since inception, less certain 

required transfers to other Federal agencies.

Invested Capital – Invested capital represents the resources of the Federal Government that were directly appropriated to the 

Agency by Congress for investment in GPO assets (land, buildings, equipment, and capital).

Section IV: Consolidated Financial Statements
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 55

 12. B. Unexpended Appropriations

The following table presents unexpended appropriation balances from September 30, 2008 through September 30, 2010, for appropriations made available to GPO. 

 

As of September 30, 2010, GPO had obligated all the $42.9 million of the unexpended appropriations available for Congressional 

printing and binding, and all of the $29.1 million of the unexpended appropriations available for Salaries and Expenses. The obligations are based on the estimated cost of open orders as of September 30, 2010. At September 30, 2009, the obligations were $38.3 

million in Congressional Printing and Binding Appropriations and $24.5 million in Salaries and Expenses Appropriations.

The Revolving Fund unexpended appropriations balances at September 30, 2010 and September 30, 2009 were $8.2 million and 

$4.9 million, respectively. The Revolving Fund unexpended appropriations balances are the result of the following appropriation 

activities:

n In fiscal 2001, Congress authorized the transfer of $3.3 million to the Revolving Fund from prior year Salaries and Expenses 

Appropriations to pay for the printing and distribution of publications to depository libraries. As of September 30, 2010, GPO 

expended $2.4 million from this appropriation. At the end of fiscal 2010 and 2009, balances of $877,000 and $951,000 were 

available for future expenditures, respectively. 

n In fiscal 2006, Congress appropriated $2 million (before rescission of $20,000) to the Revolving Fund for workforce retraining. 

In fiscal 2010 there was no expenditure. As of September 30, 2009, GPO had expended the entire $1,980,000.

n In fiscal 2007, Congress appropriated an additional $1 million to the Revolving Fund for workforce retraining. As of September 

30, 2010, GPO had expended $567,000. At the end of fiscal 2010 and 2009, balances of $433,000 and $982,000 were available 

for future expenditures, respectively.

n In fiscal 2007, Congress authorized the transfer of $5.7 million to the GPO Revolving Fund from prior year Congressional 

Printing and Binding Appropriations to help cover appropriation shortfalls. As of September 30, 2009, the entire $5.7 million 

of this appropriation was expended.

n In fiscal 2008, Congress authorized the transfer of $1.23 million to the GPO Revolving Fund from prior year Congressional 

Printing and Binding Appropriations to help cover appropriation shortfalls. GPO fully expended this appropriation as of 

September 2010. At the end of fiscal 2009, $808,000 was available for expenditure.

Section IV: Consolidated Financial Statements

(Dollars in thousands)	 	 	

Revolving Salaries and Congressional

Fund Expenses Printing and

Appropriations Appropriation Appropriation Binding Appropriation Total

Unexpended balance at September 30, 2008 $ 6,414 $ 18,110 $ 22,239 $ 46,763 

2009 fiscal year appropriation activity:

Received	 	 4,995	 	 38,744 	 96,828 	 140,567

Transferred	 	 479	 	 (479) 	 	 —	 —

Expended	 	 (6,945)	 	 (31,859)	 	 (80,806)	 	 (119,610)

Unexpended balance at September 30, 2009 4,943 24,516 38,261 67,720 

2010 fiscal year appropriation activity:

Received	 	12,782	 	 40,911	 	 93,768 	 147,461

Transferred	 	 2,231	 	 (2,231)	 	 —	 	 —

Expended	 	 (11,840)	 	 (34,144)	 	 (89,107)	 	 (135,091)

Appropriation restoration from previous year	 	 100	 	 —	 	 —	 	 100

Unexpended balance at September 30, 2010 $ 8,216 $ 29,052 $ 42,922 $ 80,190 

 
56 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

n In fiscal 2009, Congress appropriated $4.995 million to the Revolving Fund for information technology development and 

facilities repair. GPO expended about $4.8 million from this appropriation as of September 2010. At the end of fiscal 2010, 

$183,000 was available for future expenditures. At the end of fiscal 2009, $2.2 million was available for future expenditures. 

n In fiscal 2009, GPO transferred $479,000 from the Salaries and Expenses Appropriation to the Revolving Fund for infrastructure improvements for the Federal Depository Library Program. In fiscal 2010, GPO transferred $460,000 from the Salaries and 

Expenses Appropriation to the Revolving Fund for additional infrastructure improvements for the Federal Depository Library 

Program.

n In fiscal 2010, Congress appropriated $12.8 million to the Revolving Fund. As of September 2010, GPO expended about $7.6 

million from the appropriation. At the end of fiscal 2010, balance of $5.2 million was available for expenditure. 

n In fiscal 2010, GPO transferred $228,000 from the Salaries and Expenses Appropriation to the Revolving Fund for information 

technology infrastructure projects.

n In fiscal 2010, GPO transferred $1.5 million from prior year Salaries and Expenses Appropriation to the Revolving Fund to 

help cover appropriation shortfalls. As of September 30, 2010, the balance of $1.5 million was available for future expenditure.

13. Appropriated Funds

 13. A. Total Appropriations Made Available

The total appropriations made available to GPO, net of rescissions, for fiscal 2010 and 2009 were as follows.

Section IV: Consolidated Financial Statements

(Dollars in thousands)

 2010 2009

Congressional printing and binding	 $	 93,768 $	 96,828

Salaries and expenses	 	 40,911	 	 38,744

Revolving fund	 	 12,782	 	 4,995 

Total available appropriations $ 147,461 $ 140,567
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 57

 13. B. Expended Appropriations

The total appropriations expended by GPO during fiscal 2010 and 2009 were as follows.

Section IV: Consolidated Financial Statements

(Dollars in thousands)

 2010 2009

Congressional printing and binding:

Congressional Record products	 $	 25,154 $	 22,368

	 Miscellaneous publications and printing and binding	 	 21,015	 	 22,016

	 Hearings		 	 19,748 	 	 18,064

	 Bills, resolutions, and amendments	 	 6,009 	 	 7,177

	 Business and committee calendars	 	 3,777 	 	 2,517

	 Committee reports	 	 3,263 	 	 2,153

	 Public document envelopes	 	 2,946 	 	 650

	 Committee prints	 	 2,901 	 	 1,517

	 Details to Congress	 	 2,493 	 	 2,567

	 Other	 	 	 1,801	 	 1,777

	 	 	 Total congressional printing and binding 89,107 80,806

Salaries and expenses:

	 Depository library distribution	 	 24,414 	 	 22,857

	 Cataloging and indexing	 	 7,547 	 	 6,911

	 By-law distribution	 	 582 	 	 704 

	 International exchange	 	 1,601 	 	 1,387 

	 	 	 Total salaries and expenses 34,144 31,859 

Revolving Fund:

	 Infrastructure improvements and other	 	 11,292	 	 6,353

	 Workforce retraining	 	 548 	 592

 Total revolving fund 11,840 6,945

 Total expended appropriations $ 135,091 $ 119,610

Reconciliation of expended appropriations to the	

	 consolidated statements of revenues, expenses,

	 and changes in retained earnings:

	 	 	 Total expended appropriations $ 135,091 $ 119,610 

Eliminations (Intra-agency)	 	 (197)	 	 (371)

Consolidated revenues from appropriations $ 134,894 $ 119,239
58 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

14. Employee Benefit Plans

GPO funds a portion of pension contributions for its employees under the Civil Service Retirement System (CSRS) and the Federal 

Employees Retirement System (FERS), and makes payroll deductions from employees for their pension contributions. OPM 

determines the employer contributions for these defined benefit plans that are required to be paid by GPO. OPM is responsible for 

Government-wide reporting of CSRS and FERS assets, accumulated plan benefits, and unfunded liabilities. In accordance with FASB, 

and consistent with multi-employer pension plans, GPO has reflected only the required contribution to these programs in its financial statements. OPM is responsible for funding any other costs. Therefore, GPO is not required to disclose the unfunded pension 

liability and post-employment benefits relative to its employees.

Civil Service Retirement System

The CSRS is a defined benefit plan. Generally, it covers Agency employees first hired before 1984. Total GPO (employer) contributions to CSRS for employees covered under this retirement program were 7.5 percent of basic pay in both 2010 and 2009 for 

investigators and law-enforcement officers, and 7.0 percent of basic pay in both years for all other employees. GPO contributions 

were $3.8 million and $3.9 million for the years ended September 30, 2010 and 2009, respectively.

Federal Employees Retirement System

Using Social Security benefits as a base, FERS provides a defined benefit plan (Basic Benefit Plan) and a voluntary defined contribution plan. Employees first hired after December 31, 1983 were automatically covered by FERS and Social Security, while employees 

hired prior to January 1, 1984 were able to choose between joining this plan or remaining in CSRS.

The employer contribution rate to FERS for GPO law enforcement officers was 24.9 percent of basic pay in fiscal 2010 and 2009. 

The FERS contribution rate for all other employees was 11.2 percent in both years. GPO contributions to FERS totaled $13.8 million 

for fiscal 2010 and $12.6 million for fiscal 2009.

Thrift Savings Plan

The Thrift Savings Plan (TSP) allows employees to defer the recognition of income tax on contributions made to the plan. The TSP 

elective deferral limit for employees was $16,500 for 2010 and 2009. Employees, who were 50 years old or older, were allowed 

additional catch-up contributions of $5,500 in 2010 and 2009. For FERS employees, the employer is required to contribute 1 percent 

of the employee’s base pay to the TSP, and to match voluntary employee contributions dollar-for-dollar for the first 3 percent of pay, 

and 50 cents on the dollar for the next 2 percent of pay. Thus, the employer contribution to the TSP can be up to 5 percent for FERS

employees. Employees participating in CSRS may contribute to the TSP, but they do not receive any matching contributions from the 

employer. GPO made employer contributions to the TSP of $4.8 million in fiscal 2010 and $4.2 million in fiscal 2009. 

Social Security System

As an employer, GPO matches employee contributions to the U.S. Social Security Administration (SSA) under the Federal Insurance 

Contributions Act (FICA) for employees in the FERS. GPO contributes matching amounts of 6.2 percent of gross pay (up to $106,800 

in 2010 and 2009) to SSA’s Old Age, Survivors, and Disability Insurance (OASDI) Program. Additionally, GPO makes matching contributions for all employees of 1.45 percent of gross pay, without limit, to SSA’s Medicare Hospital Insurance Program. Contributions to 

these SSA programs for the years ended September 30, 2010 and 2009 totaled $10.8 million and $10.0 million, respectively.

Employment, Pension, and Other Post-Employment Benefits Provided by Others

OPM is responsible for the management, administration, and funding of certain Government-wide programs that provide pension 

and other post-employment benefits to retired employees of the Federal Government. These OPM administered programs provide 

benefits to former employees of GPO. OPM administered pension programs include the CSRS and the FERS. Other OPM administered programs provide health, life, and long-term care insurance benefits to active, inactive, and retired employees. Permanent employees of GPO may participate in the Federal Employees Health Benefit Program (FEHBP), Federal Employee Group Life Insurance 

Program (FEGLIP), and/or Federal Long Term Care Insurance Program (FLTCIP) before and after their retirement from the Agency.

Section IV: Consolidated Financial Statements
15. Major Customers

GPO’s primary customers are the Congress and large Federal agencies in the Executive Branch of the Federal Government. In 

fiscal 2010 and 2009, billings to those customers representing approximately 10 percent or more of GPO’s total billings follow. 

The increase in billings to the U.S. Department of State in fiscal 2010 is attributable to the increased demand for 

U.S. Passports. 

16. Impairment Loss 

There was no impairment loss in fiscal 2010. In fiscal 2009, GPO wrote off $1.19 million of capitalized costs of a module 

of FDsys as an impairment loss. The decision was made because the software code that was developed had scalability 

constraints that rendered the code unable to meet requirements. The scalability constraints negated the future economic 

benefit of the module to GPO. 

17. Fair Value Measurement

The fair values in GPO’s financial instruments represent GPO’s best estimates of the amounts that would be received to sell 

those assets, or that would be paid to transfer those liabilities, in an orderly transaction between market participants at that 

date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, 

if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects GPO’s own 

judgments about the assumptions that market participants would use in pricing the asset or liability. GPO developed those 

judgments based on the best information available in the circumstances.

ASC 820-10 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair 

value. The hierarchy gives the highest priority to unadjusted price quote in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 

measurements).

GPO’s financial instruments are comprised of cash, accounts receivable, accounts payable, and accrued liabilities as of 

September 30, 2010 and 2009. The carrying amounts of these financial instruments approximate fair value because of the 

short-term nature of these instruments. GPO holds no financial instruments that are measured at fair value on a recurring 

basis or for which the fair value option has been elected at September 30, 2010.

18. Subsequent Events

GPO has evaluated subsequent events through December 21, 2010, the date which the financial statements were available 

to be issued. There were no material events that required adjustment, accrual, or disclosure.

Section IV: Consolidated Financial Statements

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010 59

(Dollars in thousands)

 2010 2009

Amount Percent Amount Percent

Department of State	 $	 201,024	 21.7%	 $	 174,312 	 18.7%

Department of Health & Human Services	 	 105,689 	 11.4%	 	 95,827 	 10.3%

Department of Defense 	 91,336 	 9.8%	 109,162 	 11.7%

Congress of the United States	 	 90,824 	 9.8%	 	 84,114 	 9.0%
60 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2010

ACRONYM LIST

ASC	 Accounting Standards Codification

COLA	 Cost of Living Adjustments

CP&B	 Congressional Printing and Binding

CPIM	 Consumer Price Index Medical

CSRS	 Civil Service Retirement System

DoD	 U.S. Department of Defense

DOL	 U.S. Department of Labor

EFT	 Electronic Funds Transfer

FASAB	 Federal Accounting Standards Advisory Board

FASB	 Financial Accounting Standards Board

FDLP	 Federal Depository Library Program

FDsys	 GPO’s Federal Digital System

FECA	 Federal Employees’ Compensation Act

FEGLI	 Federal Employees’ Group Life Insurance

FEGLIP	 Federal Employee Group Life Insurance Program

FEHB	 Federal Employees Health Benefits

FEHBP	 Federal Employees Health Benefit Program

FERS	 Federal Employees Retirement System

FICA	 Federal Insurance Contributions Act

FLTCIP	 Federal Long Term Care Insurance Program

FTP	 File Transfer Protocol

GAAP	 U.S. Generally Accepted Accounting Principles

GAO	 U.S. Government Accountability Office

GBIS	 U.S. Government Printing Office Business Information System

GCN	 Government Computer News

GPO or Agency	 U.S. Government Printing Office

GSA	 U.S. General Services Administration

IPAC	 Intra-governmental Payment and Collection

ISO	 International Organization for Standardization

JCP	 Joint Committee on Printing

OASDI	 Old Age, Survivors, and Disability Insurance

OIG	 Office of the Inspector General

OMB	 Office of Management and Budget

OPM	 Office of Personnel Management

PKI	 Public Key Infrastructure

RSS	 Really Simple Syndication

S&E	 Salaries and Expenses

SID	 Secure and Intelligent Documents

SPF	 Secure Passport Facility

SSA	 U.S. Social Security Administration

Treasury	 U.S. Department of the Treasury

TSP	 Thrift Savings Plan

UPS	 Uninterruptible Power Supply

U.S.C.	 United States Code

VSIP	 GPO Voluntary Separation Incentive Program

XML	 Extensible Markup Language

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