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GPO Management 

The Joint Committee on Printing 

Frank Annunzio 

Representative from Illinois 

Chairman 

Joseph M. Gaydos 

Representative from Pennsylvania 

Leon E. Panetta 

Representative from California 

Robert E. Badham 

Representative from California 

Pat Roberts 

Representative from Kansas 

Wendell H. Ford 

Senator from Kentucky 

Vice Chairman 

Dennis DeConcini 

Senator from Arizona 

Albert Gore, Jr. 

Senator from Tennessee 

Ted Stevens 

Senator from Alaska 

Mark 0. Hatfield 

Senator from Oregon 

Richard Oleszewski 

Staff Director 

GPO Senior Staff 

Ralph E. Kennickell, Jr. 

Public Printer of the United States 

S. Bruce Scaggs 

Assistant Public Printer 

(Operations and Procurement) 

Burkey W. Boggs 

Assistant Public Printer 

(Night Operations) 

M. Joseph Cannon 

Assistant Public Printer 

(Financial Policy and Planning) 

Grant G. Moy, Jr. 

General Counsel 

Table of Contents 

Joseph E. Jenifer 

Deputy Public Printer 

Donald E. Fossedal 

Assistant Public Printer 

(Superintendent of Documents) 

James N. Joyner 

Assistant Public Printer 

(Administration and Resources 

M,anagement) 

Joyce Blalock 

Inspector General 

Stuart M. Foss 

Executive Advisor 

Public Printer's Message............................................................... 1 

Deputy Public Printer's Message.................................................. 3 

Operations..................................................................................... 5 

Procurement .................................................................................. 1 0 

Superintendent of Documents ....................................................... 12 

Administration and Resources Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 

Financial Policy and Planning ....................................................... 18 

Financial Highlights ....................................................................... 20 

Financial Statements ..................................................................... 22 
Ralph E. Kennickell, Jr. 

Public Printer 

Public Printer's Message 

I reflect with pride on the past year at the Government Printing Office, a year in 

which we strengthened our role as the "Nation's Printer." We continued to better 

our efforts in providing personal, individualized service to Congress and our 

customer agencies, and we became a leader and innovator in the integration of 

state-of-the-art electronic publishing technologies. 

As the watchword for today's Federal Government continues to be economy, it 

is imperative that for every Government dollar spent a product or service of 

equal value is received. Budgetary constraints have substantially reduced the 

amount of money our customers can allocate for printing. Therefore, we work 

with our customers to evaluate their needs, render advice, suggest 

modifications, and monitor in-house and contractor performance to ensure 

maximum return on their printing dollars. Through these cost-saving efforts, the 

continuing modernization of our printing equipment, the integration of new 

technologies, and our employees striving to work smarter and harder, GPO 

continues to end each year on a firm financial basis. Fiscal year 1988 showed a 

consolidated net income of $15.7 million, including $7.6 million from in-house 

printing operations, $4.3 million from procured printing operations, and $3.8 

million from sales of Government publications. 

Fiscal year 1988 was also a year in which we reached out to diverse segments 

involved in the "information industry." In June, GPO hosted the International 

Government Printers' Conference. Fifty-two government printers from around the 

world met to exchange their opinions and share information and knowledge of 

new technology so vital to this industry. The largest gathering ever in 

attendance, this highly distinctive group took the historic step of formalizing 

themselves into the International Government Printers' Association, pledging in 

their charter's preamble to "provide a forum for the exchange of information, 

advice, and assistance in the resolution of problems common to the 

government printing industry, and to seek the improvement of government 

printing operations through the application of new technology, methods, and 

techniques." 

During the last week of September, GPO hosted the 12th Annual National State 

Printing Association Conference. The association was formed in 1977 to provide 

a forum through which State printing officials could share their knowledge and 

expertise with peers and provide assistance to one another in solving problems 

relevant to the management of State printing operations. With 65 printers, 

representing nearly every State, the conference with its theme, "Technology and 

the Future of State Government Printing," brought together the largest gathering 

ever for the association. 

Earlier in the year, GPO launched a leadership effort in the war against illiteracy 

in our Nation with its cosponsorship of a Symposium for the Graphic Arts 

Industry, "The Image of Print Media and the Problem of Functional Illiteracy in 

the United States." Coordinated by our Office of Innovation and Development 

and jointly conducted by the Academic Advisory Council of the Government 

1 
Printing Office and the Adult Literacy Initiative of the U.S. Department of Education, the symposium stressed that literacy is a major societal issue and is crucial 

to the future of the printing and publishing industry. Prominent speakers included: Then Secretary of Education Dr. William J. Bennett; Congressman William 

Goodling; Harold W. McGraw (Chairman Emeritus of McGraw-Hill, Inc., and 

President of the Business Council for Effective Literacy); and Dr. David Harman 

(internationally renowned literacy expert and author). In a letter to symposium 

attendees, Mrs. Barbara Bush, wife of the Vice President of the United States, 

wrote: 

"The printing industry has an enormous stake in a more literate Americaso much to lose as a consequence of functional illiteracy, and so much to 

contribute to our national movement. I offer congratulatory thanks to the 

U.S. Government Printing Office and the Department of Education for jointly sponsoring today's very ambitious symposium, and to the literacy experts 

and printing industry leaders who are joining forces in this innovative effort. 

This kind of cooperation is absolutely essential when it comes to working 

for literacy." 

As a service organization, the GPO's future is dependent in large measure upon 

the needs and desires of our customers. The most recent years have seen a 

trend toward increasing requirements for even shorter schedules and more personalized service. It is imperative that the GPO continue to evolve in order to 

accommodate these requirements, for it is only through responsive service that 

GPO can fulfill its mission. As I look back over the accomplishments of the last 

4 years, I feel strongly that GPO is an agency that is moving confidently toward 

the 21st century, able to adapt and grow, and be a leader and innovator in 

new publishing technologies. Even more, it is an agency where "demand-driven 

and service-oriented" is no longer a revolutionary credo, but a quiet, integral 

part of its day-to-day operations. 

Ralph E. Kennickell, Jr. 

Public Printer 

2 
Joseph E. Jenifer 

Deputy Public Printer 

Office of 

Inspector General 

Deputy Public Printer's Message 

Fiscal year 1988 saw further refinement in GPO's organizational structure. The 

Administration and Human Resources areas were combined in January under 

the Assistant Public Printer (Administration and Resources Management). In 

addition, the position of Assistant Public Printer (Financial Policy and Planning) 

was established to serve as chief financial officer of the GPO and represent the 

agency on all financial matters. The Office of Financial Policy and Planning also 

serves as GPO's strategic planning center. 

As part of our continuing efforts to modernize our production processes, we 

purchased three new drilling machines for our Binding Division, procured a new 

film dispenser for our Negative Section, acquired a new 70-mm projection 

platemaker, developed custom software, and upgraded our Atex text 

processing systems. We also installed two new wastepaper baling machines 

including a dust collection/filtration system, and a new cleaning and crushing 

operation for emptied drums which brought us in line with new, more stringent 

environmental regulations. 

As GPO evolves from an ink-on-paper operation to full integration of the most 

sophisticated electronic publishing technologies, we are reaching out into 

diverse and exciting new areas. A pilot project to test the feasibility of using FM 

radio sidebands as an alternative method of distributing data was tested by our 

Office of Innovation and Development with promising results. Through an 

agreement between GPO, the Office of the Federal Register, and a private 

contractor, the Federal Register has been broadcast to a number of receiving 

stations every night. Software was developed in our Graphic Systems 

Development Division to compare the data received over the FM antenna 

against the data that were broadcast. Although some errors were found in the 

received data, none were the result of the new FM broadcast technology. 

CD-ROM mastering and replication is being accomplished through 

procurement, and we have leased a CO-Publisher PreMastering System which 

will be used in the production of CO-ROMs in-house. "Dial-up" composition is 

steadily growing with 40 customers, utilizing 136 workstations, taking advantage 

of this advanced technology at the close of the fiscal year. 

Never in GPO's history has the spirit of change and technological growth been 

so palpable. While meeting the requirements of the present, we look forward 

with anticipation to our evolving role as a leader and innovator in the new and 

ever-changing technologies of the information industry. 

The role of the Office of Inspector General is to identify problems and 

weaknesses and prevent fraud, waste, and abuse. During fiscal year 1988, the 

Office of Audits (OA) issued 50 reports which assisted GPO managers in 

reducing costs, improving operations, and strengthening internal controls 

against fraud, waste, and abuse. Implementation of OA recommendations 

resulted in cost savings and management commitments to avoid costs or more 

effectively use resources. Savings of up to $15.2 million may result from 

questioned costs on contractor claims. 

3 
Office of Public Affairs 

onfer 

The Office of Investigations (01) handled a total of 60 reported or referred 

matters. A total of 41 cases were opened and 28 closed. Of those cases 

opened, the 01 conducted 34 criminal and 7 noncriminal investigations. The 01 

carried over 9 active investigations and closed 25 investigations from previous 

fiscal years. The 01 presented three civil matters to United States Attorneys 

Offices resulting in court-assessed civil penalties totaling $85,000, monetary 

fines totaling $1,650, and restitutions totaling $406,730. 

During fiscal year 1988, GPO's Office of Public Affairs carried out its day-to-day 

recurring functions, while handling numerous special projects. 

Foremost among those was the preparation, conduct, and followup required for 

the hosting of the 1988 International Government Printers' Conference. The 

commitment made to this major project brought about a level of success 

surpassing even the highest of expectations. With support and assistance from 

other GPO organizations and external sources, the Public Affairs staff assumed 

overall responsibility for the conference and assured that the 52 international 

delegates, numerous spouses, and corporate, association, and Federal 

attendees were provided personalized service and attention throughout the 

event. Along with handling all preliminary and onsite technical and material 

needs for the conference, the staff followed up with thank you letters and 

communications to those individuals involved with its success. This event was 

the first of its kind in GPO's history and has enhanced the reputation of the 

Office on a worldwide scale. 

For the third year in a row, the Public Affairs Office coordinated the distribution 

of the Budget of the United States, provided for media opportunities, and 

handled arrangements for the GPO-hosted press conference. In addition, the 

Public Affairs staff was heavily involved in preparations and activities relating to 

Graph Expo '87, FOSE '88, the public celebration of "National Police Week," and 

the observance of "Constitution Week." Assistance in arranging for the Veterans 

Day program and in coordinating the Christmas Open House and Community 

Children's Day was also provided to the appropriate organizations. GPO's highly 

regarded Adopt-A-Family Program continued during the fiscal year under the 

coordination of this office, with eight families receiving assistance. Public Affairs 

support continued in the area of video coaching, with nearly all managers at 

the Department/Service level and above completing the program. 

Another important accomplishment was the reinstatement of the notification to 

Members of Congress when a contract valued at more than $100,000 is issued 

to a firm in their particular district or State. During fiscal year 1988, more than 

1 ,300 notification letters, with accompanying news releases suggested for 

publication, were processed. 

4 
Production Department 

Operations 

The Assistant Public Printer (Operations and Procurement) is responsible for all 

pre-press, press, and binding operations at GPO's central office printing plant; 

the quality control and related technical assistance to all GPO production and 

procurement operations; and technical expertise and liaison to GPO's customers 

to meet their printing requirements in the most cost-effective manner. The 

primary responsibility of the Assistant Public Printer (Night Operations) is to 

supervise the printing and delivery of the Congressional Record and Federal 

Register, and to correlate this delivery with the production of congressional bills, 

committee prints, documents, hearings, and reports; while, at the same time, 

rendering all possible assistance to requests for help in advancing departmental 

work. 

GPO's central office printing plant primarily serves the short-turnaround printing 

requirements of the Congress. It is located four blocks north of the U.S. Capitol 

and employs over 2,000 production personnel to provide a full line of printing, 

binding, and related products and services to the Federal community. Last 

year, GPO's central office in-plant operations produced a net income of $7.6 

million. Major congressional products include the Congressional Record, bills, 

resolutions, amendments, reports, and hearings. 

The Electronic Systems Development Division (ESDD) provides electronic 

technical services to the Congress, the GPO Production Department, other 

areas of the GPO, and other Government agencies. The workload in ESDD is 

increasing with the continuing expansion of dial-up composition and installation 

of a new text editing system which will require a substantial amount of wiring, 

testing, and training. The delivery of the Videocomp Model 570 phototypesetter 

will require retraining of technicians and rearranging the Phototypesetting 

Room. During the fiscal year, ESDD completed the process of upgrading all 

existing 30mb disk drives to 80mb disk drives on Atex systems; completed the 

process of upgrading all existing magnetic tape units from 800bpi to 

800/1600bpi on the Atex systems; and installed text editing systems consisting 

of all or part of the following components: IBM AT Personal Computer or PS/2 

Model 60, OMS laser printer, Hayes modem, with necessary cabling and 

switches at various agencies and congressional committees. 

During the fiscal year, the Graphic Systems Development Division (GSDD) 

continued to design, develop, and integrate automated graphic systems into 

operations for the production of the publications. Creation of new sections 

within the division was also accomplished during the year. The Composition 

Development Section endeavors to improve the composition software that is 

used in the Production Department, the Data Base Development Section is 

involved with the premastering of CO-ROMs, and the Systems/Communications 

Development Section maintains the operating systems and communications 

networks. In addition, the new Remote Applications Section will handle the 

number of new customers who are running composition over dial-up lines, fiber 

optic cable, or using PC-based composition software. There are now 40 

5 
customers using the GPO dial-up systems. Fifteen of these customers are using 

the fully automatic system on the PDP-11 /44. Seven of the 15 are connected 

into GPO over the Ethernet link and the other 8 are using modems. All modems 

now on the automatic system have been upgraded to operate at 9600 baud. 

The remaining customers will be moved onto the automatic system as their 

training period concludes. In support of the pilot project using FM radio 

sidebands as an alternative method of distributing data, software was 

developed in GSDD to compare the data received over the FM antenna against 

the data that were broadcast. In addition, the division has leased a COPublisher Premastering System which will be used in the production of 

CO-ROMs. 

The Electronic Photocomposition Division (EPD) is responsible for the operations 

necessary to produce camera-ready pages for use in preparation of plates for 

printing. These operations include copy markup, proofreading, data capture via 

keystroke and laser scanner, computerized composition operations, and 

typesetting. EPD continues to improve and enhance the abilities of its electronic 

printing system. The production of the Congressional Record and'lhe Federal 

Register runs smoothly and has been enhanced with the addition of timesaving 

devices, production standards for employees, and programming changes. The 

largest Congressional Record ever was printed in fiscal year 1988 and totaled 

712 pages. Introduction of custom software on PCs with bar code reading 

devices now provides fast, accurate production standard measurement reports 

for proofreaders in the Proof and Copy Markup Section. These systems upload 

to and download from the mainframe automatically daily. Use of these systems 

in the EPD proofroom allows supervisors to search their files for missing or "hot" 

material. An apprenticeship program has been established in the keyboard and 

proofreading areas to ensure an adequate workforce in order to meet the 

needs of Congress and our customer agencies. 

Specific goals of the Press Division are to continue to control the problems of 

waste, overruns and underruns, shortages, stock control, plate remakes, 

spoilage, and alcohol utilization, in an effort to reduce costs resulting from these 

problems. Improvements of new equipment replacing that which is old and 

worn out or outdated by new technology continues in all sections of the 

division. The Negative Section constructed a new camera workstation for the 

70-mm camera and film processor. The section also procured a new film 

dispenser capable of cutting roll film up to 42 inches in width. The Plate Section 

acquired a new 70-mm projection platemaker and a new step-and-repeat 

machine to replace an older model which had become mechanically unreliable. 

The Postal Card Section expanded to include a night shift to operate both the 

five-color press and the cut/pack system. With the two-shift operation, 

production increased in excess of 150 million cards, bringing the total 

production of cards produced in fiscal year 1988 to over 600 million. The last of 

the group 60 presses was removed from service. This marks the end of an era 

as these presses were manufactured in 1925 for printing postal cards. During 

the year the section produced seven commemorative postal cards and a 

complete set of regular cards for the April rate increase. 

6 
Quality Control and 

Technical Department 

The Binding Division performs all finishing operations on work processed in the 

GPO. The division's modernization plan is still progressing as outdated 

machinery is being replaced with new equipment. Three new drilling machines 

were installed; contracts were awarded to Heidelberg Corporation for an 

automated hardcover book line and a 3-inch jumbo minibinder; and 

specifications for a 24-box adhesive binder with a side-stitch unit were 

completed. In addition, as of September 30, the bookbinder training program 

has produced 21 operators. Twenty-one additional trainees are presently 

enrolled in the program. U.S. passport production increased by approximately 2 

million books this fiscal year. This dramatic increase was attributable to a 

change to a nonwoven cover material and the addition of a second shift to 

operate the automated line. In addition, a number of equipment modifications 

were developed by employees assigned to this operation adding to the 

increased production. Peak issuing season production averaged approximately 

200,000 books per week. 

The Quality Control and Technical Department develops, coordinates, and 

monitors quality systems for products produced and procured by GPO. These 

systems encompass specifications and standards, sampling and inspection, 

process controls, quality audits, mathematical studies and analyses, and 

management reports. The Department accepted new responsibilities this fiscal 

year to help the Office cope with increasingly more stringent environmental 

regulations and new technology being utilized both in the graphic arts industry 

and by our more technically sophisticated customer agencies. 

Major Department accomplishments include the publication of GPO Contract 

Terms Quality Assurance Through Attributes Program for Microforms Publication 

310.3, Technical Report No. 27, on sampling, and a number of new or revised 

quality procedures needed to refine the GPO quality assurance system. In 

addition, the Paper Division continued work on the expansion of the JCP 

Government Paper Specification Standards to cover a variety of new 

commercial grades from No. 1 premium paper to less expensive publication 

grades. 

A new program was implemented to dispose of potentially hazardous wastes 

generated by the Office which included a cleaning and crushing operation for 

emptied drums that dramatically decreased disposal costs. The Department also 

supported a major and successful effort to bring our offset press operations into 

compliance with the volatile organic emission requirements imposed by the D.C. 

Department of Environmental Services. 

During the past year Quality Control accomplished numerous projects including 

monitoring Office asbestos removal, testing GPO drinking fountains for possible 

high levels of lead, cooperative efforts with Naval investigators regarding 

fraudulent NATO gas coupons, working on U.S. passport and FBI fingerprint 

card specifications, and participation in interagency efforts to provide guidelines 

on the longevity of commercial paper. Congressional interest was apparent in 

our test of soy oil ink for printing the Congressional Record and the Federal 

Register. 

7 
Engineering Service 

Customer Service 

Department 

Engineering Service provided support to the agency in the traditional areas of 

building maintenance, building renovation, and equipment installation and 

servicing. A structural realignment of the Facilities and Engineering Divisions 

provided more efficient engineering services in support of the agency's 

production mission. Significant in this realignment was the development and 

refinement of the Service's data processing apparatus. In the Facilities Division, 

introduction of the maintenance job order (MJO) and service call computer 

system will allow customers to request Engineering's services, as well as 

provide information relative to services requested, by accessing this system via 

their on-line stations. 

The Facilities Division processed 30,300 service calls and completed major 

projects of structural enhancements and equipment installations in the Binding 

and Press Divisions. The division also completed the GPO Self-Service Store, a 

major project in the Materials Management Service. The Engineering Division, 

which provides the Agency's structural design and production analysis needs, 

introduced the Computer Aided Drafting and Design (CADD) System. When 

completed, the system will eliminate manual drawing for various future projects. 

This fiscal year, the CADD System contributed immeasurably to the production 

of 10,000 prints of engineering drawings, the creation of 158 major new 

drawings, and 226 revised drawings. Other design projects either completed or 

in progress include the GPO Cafeteria renovation, a new audio-visual center in 

the Carl Hayden Room, replacement of the wastepaper bailing system, removal 

of asbestos, pollution control in the form of wastewater testing, and 

underground tank monitoring. 

The Customer Service Department coordinates all aspects of the printing, 

binding, and distribution requirements of the Congress and Federal agencies. 

During the fiscal year, Department representatives maintained active 

membership on the major electronic publishing committees in the area to 

disseminate information concerning GPO's advances in technology and to keep 

abreast of the needs and desires of the publishing community. Customer 

demand continued to be our primary driving force, with efforts directed toward 

the achievement of customer satisfaction through timely response, accurate 

information, and maximum service. 

As primary contact with our customer agencies, the Departmental Account 

Representative Division continued to expand and refine their customer outreach 

efforts. Division personnel were involved in over 700 meetings with 

representatives from the GPO, customer agencies, and commercial contractors. 

These meetings, including 268 agency visits, were concerned with all phases of 

planning and were a part of continuing efforts to offer more personalized 

service. The newly established Electronic Publishing Section made significant 

gains in staying abreast of current technology in such areas as CD-ROM, 

Standard Generalized Markup Language (SGML), and Computer Aided 

Acquisition and Logistics Support (CALS), in order to help GPO meet the 

technological challenges of the future. 

8 
The Congressional Printing Management Division (CPMD) coordinates the 

scheduling, printing, and distribution of congressional printing and binding, and 

performs as printing liaison specialists to the committees, offices, and officials of 

Congress. During fiscal year 1988, CPMD made significant gains in its efforts to 

automate congressional printing. In addition to receiving previously captured 

keystrokes on the approximately 250 to 300 pages of nominations which 

appear annually in the Congressional Record, coordinated efforts of 

congressional staff and GPO personnel resulted in an increase of customers 

using dial-up composition. At the end of fiscal year 1987 there were 8 

congressional offices using dial-up composition; at the end of fiscal year 1988 

there were 25 congressional dial-up customers, employing 42 systems. In 

conjunction with House Information Systems, receipt of files through the fiber 

optic cable from those congressional customers not yet using dial-up also 

increased. 

The Production Planning Division continued their efforts to plan and schedule 

in-house work in a cost-effective and expeditious manner. With the cooperation 

and joint efforts of division personnel and PEPS staff programmers, the 

Production Estimating and Planning System (PEPS) was completed during the 

fiscal year. Under a new "negotiated price" policy, 249 jobs were produced by 

GPO, saving our customers approximately $1.7 million. In addition, a negotiated 

price was established to allow the GPO to produce negatives at a discounted 

rate for commercially procured printing in order to increase the work-hours inhouse and provide our customer agencies with a competitive price. During 

fiscal year 1988, the division placed 88,811 such negatives, resulting in an 

additional 800 hours worked in GPO's Offset Negative Section. The Estimating 

and Jacket Preparation Section saw an overall increase in the number of formal 

and informal cost estimates, and an increase in jackets written of 11 percent. 

The Paper and Materials Control Section received requisitions from various 

ordering agencies for supplying requirements of blank paper, envelopes, inks, 

glues, cold padding compounds, and other miscellaneous supplies totaling 

4,149. 

The demand for design, illustration, consultation, photographic and video, and 

quality control services from the Typography and Design Division continued to 

increase dramatically throughout the fiscal year. There was a 42-percent 

increase in both the number of dummy pages pasted and layout sketches 

prepared each month, reflecting a growing demand for design services from 

our customer agencies due to staff reductions in their graphic design 

departments. New graphics computer workstations have facilitated the design 

process and will be enhanced as the industry's capabilities increase. In addition, 

Technical Review staff conducted 386 press sheet and bindery inspections at 

contractors' plants nationwide, as well as performing proof and press sheet 

inspections in GPO production areas. Typography and Design Division 

personnel assisted in the production of a number of prestigious publications. 

Among these were: The Capitol Magazine-a Pictorial History of the Capitol and 

of the Congress; The History of the Senate; Bicentennial Calendar; The Journey 

Continues, a documentary of the Space Shuttle; and, the many volumes of the 

Iran-Contra Reports. 

9 
Printing Procurement 

Department 

Procurement 

The Assistant Public Printer (Operations and Procurement) is responsible for the 

purchasing of the Government's printing and binding requirements from 

commercial contractors and for the acquisition and management of all materials, 

supplies, paper, and equipment used by the Office. 

In fulfilling the information needs of the Federal establishment, GPO adheres to 

the Governmentwide policy of utilizing private sector contractors to the 

maximum possible extent to obtain products and services at the most 

competitive prices. Reflecting this policy, about 74 percent of GPO's total fiscal 

year 1988 printing and binding revenue came from work contracted to 

commercial printers. 

In fiscal year 1988, the Printing Procurement Department (PPD) made 

substantial improvements in automation, training, and overall operations. 

Although the workload decreased by 33,709 jobs in fiscal year 1988, the dollar 

volume increased by $56.5 million. The increased dollar volume was due to the 

printing of publications such as the AIDS booklet purchased by the Atlanta 

Regional Printing Procurement Office (RPPO) for $3.4 million. This was the 

largest single-award contract ever issued by a GPO regional office. Automation 

continues to enhance PPD's ability to be more responsive to GPO's customer 

agencies. Twenty-three additional agencies were provided access to the 

Procurement Information and Control System (PIGS) bringing the total number 

of agencies with access to 70. Many new reports, enhancements, and systems 

were implemented to further the Department's goal of procuring quality 

products in a timely manner. 

A major contract, Program 50-S, was negotiated and awarded during the fiscal 

year. It is a $9.2 million, 3-year contract that will procure all of the Air Force's 

technical publications. This automated publishing contract will be the prototype 

of all the military publications contracts of the future. To further improve our 

response time to our major customers, a satellite printing procurement office 

was opened in Pittsburgh, Pennsylvania. The first GPO contract for CD-ROM 

was awarded and successfully completed. 

Procured Printing vs. 

In-House Work 

Procured Printing vs. 

In-House Work 

Fiscal Year 1988 

(Dollars in Millions) 

$648.3/Procured Printing ---

$14.4/Regional Printing ---

$154.3/Piant Printing* -----' 

*Excludes blank paper and other operations. 

Fiscal Year 1987 

(Dollars in Millions) 

$591.8/Procured Printing 

$14.2/Regional 

$145.8/Piant Printing* __ _ 

10 
Materials Management 

Service 

The Materials Management Service is responsible for the acquisition of 

materials, equipment, supplies, commercial services, leasing of commercial and 

Federal space, and transportation services; receiving, shipping, and maintaining 

current inventory records of paper, envelopes, materials, and supplies; initiating 

and accounting for the shipment of Government postcards; and providing 

authorized support to GPO operations and other Federal agencies. 

During fiscal year 1988, eight major contracts procured equipment and repairs 

ranging from a saddle binder, to a mainframe computer upgrade, to a roof 

replacement. In addition, 23 various pieces of equipment were purchased for 

the regional printing offices throughout the country. Two leases were negotiated 

for new bookstores, and space was obtained for a satellite printing procurement 

office. The paper warehouse is particularly careful to maintain an inventory 

adequate to support the pressrooms. During the fiscal year, an average of 

33,400,000 pounds of paper was in inventory each month. 

In an effort to decrease labor costs, the GPO Self-Service Store opened in 

August. Through the use of bar-coded products, laser scanners, and the 

capabilities of the Materials Management Procurement and Control System 

(MMPCS), the facility quickly became a success. Two heavy-duty wastepaper 

baling machines complete with a dust collection/filtration system were installed 

in January replacing three smaller, outdated baling machines which had been 

in service since 1967. The Materials Management Procurement and Control 

System was expanded to the Denver RPPO allowing completely on-line 

processing, eliminating all manual records. 

11 
Marketing 

Superintendent of Documents 

The Assistant Public Printer (Superintendent of Documents) is responsible for a 

broad range of Government information dissemination programs and services, 

including the sale of Government publications, the compilation of catalogs and 

indexes of Government publications, the distribution of publications to 

depository libraries and as otherwise required by law, as well as reimbursable 

publications fulfillment services. 

Significant achievements in fiscal year 1988 included: Exhibits of GPO sales 

titles mounted at international book fairs in Frankfurt, Cairo, New Delhi, Manila, 

Buenos Aires, Mexico City, and Barcelona in cooperation with U.S. Information 

Agency's "Books Abroad" program; an exhibit of approximately 150 sales titles 

at the Sixth Riyadh International Book Fair in a cooperative project with the 

Department of Commerce Foreign Commercial Service; appointment of a Saudi 

bookdealer to distribute GPO sales titles; and continuing liaison with distributors 

in' Canada, the United Kingdom, and Italy. In addition, a U.S.-based distributor 

agreed to provide global importing services for Government books in countries 

not served by previous distribution agreements. 

The Office of Marketing continued to develop and distribute promotional 

materials designed to increase public awareness of and access to Government 

information through the Publications Sales and Federal Depository Library 

Programs. A new series of print Public Service Announcements (PSAs) created 

a wave of public interest for the U.S. Government Books catalog of new and 

popular publications. PSA sets were distributed nationwide to major newspapers 

and magazines, journals, newsletters, college newspapers, and to Federal 

publishers Governmentwide. Since their distribution in June 1988, the new 

PSAs have appeared in almost 200 newspapers and magazines, generating 

approximately 12,000 requests for the catalog. As in past years, Marketing 

developed sales promotions in cooperation with publishing agencies. 

During the fiscal year, Marketing produced 675,000 U.S. Government Books 

catalogs and 348,000 copies of New Books, a bimonthly listing of all new 

publications entering the sales program in a 2-month period. Marketing also 

produced more than 1 million direct-mail flyers promoting specific publications 

or groups of publications to specialized audiences. Expanded marketing efforts 

on behalf of the U.S. Government bookstore network included the development 

of flyer formats for use by individual bookstores ~.-onducting their own direct-mail 

programs, the creation and distribution of a flyer promoting the opening of a 

new bookstore in Portland, Oregon, direct-mail letters to specific audiences in 

bookstore cities, and extensive market research aimed at developing individual 

marketing plans for each bookstore. 

Depository Library Program marketing highlights included the redistribution of 

broadcast Depository Library Public Service Announcements to almost 50 cable 

TV systems nationwide, the distribution of large quantities of promotional 

bookmarks, brochures, and Depository Library directories, and the development 

and distribution of 'take-one" box-and-easel kits used for the dissemination of 

U.S. Government Books catalog request cards in depository libraries. 

12 
Library Programs 

Service 

Documents Sales 

Service 

During fiscal year 1988, Library Programs Service distributed 14.5 million 

copies of more than 28,000 titles in both paper and microfiche. This represents 

a reduction from fiscal year 1987 volumes, primarily due to problems with 

microfiche contracts. All issues of the hard copy Monthly Catalog were 

completed and distributed ahead of schedule. GPO has taken several steps to 

enhance its position as a primary provider of bibliographic information in 

machine-readable format. A complete Monthly Catalog master file was 

presented to the Library of Congress Cataloging Distribution Service, which can 

now provide the most accurate data to its customers. This updated file is 

available for sale from the Superintendent of Documents, and this summer was 

released to OCLC, GPO's first MoCat tape subscriber. 

The second edition of the Government Printing Office Cataloging Guidelines and 

a complete revision of the Instructions to Depository Libraries was developed 

and issued to all Federal Depository Libraries. Work was initiated on a revision 

of the Guidelines for the Depository Library System and the Federal Depository 

Library Manual. Late September saw the publication and distribution of The 

United States Congressional Serial Set Catalog: Numerical Lists and Schedules 

of Volumes for the 98th Congress. 

The Information Technology Program moved beyond the initial planning phase 

during fiscal year 1988 when the first CD-ROM disk was distributed to selected 

depository libraries. September marked the debut of this format for the 

Depository Library Program, when disk, hard copy documentation, and a floppy 

disk containing retrieval software published by the Census Bureau (and 

procured through GPO) was distributed to 143 depository libraries. The 

remaining 1,251 depositories will receive the material early in fiscal year 1989. 

Fiscal year 1988 ended with a number of developments that should keep 

Documents' programs on a firm footing as we begin the new fiscal year. 

Several special projects continued to improve customer service and generate 

revenue, while the Reimbursable Mailings Program continued to grow. The 

transfer of several activities from Financial Management Service to the Order 

Division provided Documents with greater control over order processing and 

invoicing. Customers calling the order and information desk now receive 

improved service with the recently installed Voice Connect System. Callers 

automatically reach the system and using their pushbutton telephones, are 

guided through a listing of recently released publications, told about the service 

areas, and given the opportunity to place an order or speak directly to a clerk. 

The bookstore program showed an increase in revenue for the fiscal year. 

Fiscal year 1988 also involved an opening of a new bookstore in Portland, 

Oregon, relocation of the Cleveland store, and the closing of the Commerce 

Department bookstore. 

Automation projects showed progress during the year. Detailed Functional 

System Requirements for the Automated Sales Records System were 

completed. Further, data entry forms and a users guide were prepared for the 

Subscription Management System Interim. In addition, progress was made on 

development of the Subject Bibliography Production System. The IRS tax form 

fulfillment system was also improved for the upcoming tax year. 

13 
Financial Management 

Service 

Information Resources 

Management 

Administration and 

Resources Management 

The Assistant Public Printer (Administration and Resources Management) is 

responsible for the information, financial, and human resource management; 

security; administrative support; and equal employment opportunity programs of 

the GPO. 

Financial Management Service (FMS) is responsible for developing systems and 

procedures and for providing comprehensive accounting, collecting, disbursing, 

and billing services in support of GPO's operations. This year, FMS focused its 

efforts on improving service to GPO's customers, contractors, and employees, 

and on delivering timely and accurate financial information to GPO managers. 

Through the utilization of new office automation technology and new 

management approaches to the workflow process, FMS achieved a 3-percent 

decrease in its total operating costs from last year. In addition, emphasis on an 

improved cash management program resulted in approximately $9 million taken 

in cash discounts offered by contractors and suppliers and a 1 0-percent 

increase in GPO's cash posture. 

Financial Management Service has been actively involved in the automation of 

many of its functions. For example, the Millennium upgrade to the off-the-shelf 

general ledger software package was implemented. This upgrade eliminates the 

use of punched cards, allows the on-line design of reports, and provides an online query capability. The GPO Cost Center Data Base, which is the first data 

base designed specifically for use by all GPO organizations, was installed on 

the mainframe. In addition, the FMS Network, a local area network for on-line 

access to current financial data, was expanded to include top GPO 

management officials. 

Financial Management Service converted the processing of U.S. Savings Bonds 

for 1 ,600 GPO employees to a personal computer-based system in April 1988. 

This change, which was necessitated by the Department of the Treasury's 

redesigned bond format and directive to issue paper bonds, is faster and more 

cost-effective than the manual system it replaced. An electronic funds transfer 

payment option for GPO's commercial printing contractors located throughout 

the United States was initiated in August; about 1 , 700 contractors have elected 

to participate thus far. This is the first step in the projected conversion of 

payment systems to electronic means, which will eventually include the option 

of direct deposit of employee paychecks and savings allotments. FMS is also 

investigating acquisition of an optical disk system that would virtually eliminate 

paper from the invoice processing system. 

The Office of Information Resources Management (OIRM) provides Officewide 

information automation services. This year, OIRM implemented several new 

information systems and many major enhancements to existing systems to 

better serve the GPO, other Federal agencies, and the public. For example, the 

development of a structured, nonredundant corporate data base was greatly 

enhanced by the conversion of many conventional computer files to operate 

within GPO's Data Base Management System (ADABAS), the introduction of 

Computer Aided Software Engineering (CASE} tools, and the installation of 

SUPERNATURAL, a user query language. 

14 
Security and Support 

Services 

The Congressional Record electronic access and retrieval system was installed 

in October 1987 and has operated in a pilot test mode. The contractor's 

proposal for system enhancements based on a modified user requirements 

report by the Senate Computer Center is under review. In addition, the 

Computer Data Center underwent major changes. The purchase of a new 

computer mainframe was finalized, and a new mainframe operating system was 

installed which provides additional parameters for the installation of new 

systems and removes operating restrictions from on-line systems. 

The newly developed Government Bill of Lading System expedites the billing 

and control of bill of lading preparation, and the establishment of the GPO SelfService Store on-line system permits users to obtain office supplies by utilizing 

bar- code technology. Enhancements were also made to the IRS Order 

Fulfillment System; originally planned as a minor system, this has evolved as an 

all-inclusive system supporting data entry, order fulfillment, inquiry, on-line and 

batch reporting, billing, and credit card charging. For tax year 1987, the system 

handled approximately 42,000 orders providing over $2.2 million in revenue. 

Security and Support Services is responsible for GPO's law enforcement, 

physical and information security, and administrative support functions. During 

fiscal year 1988, GPO's Information Security Program was enhanced with the 

revision of guidelines concerning the handling of national security information 

within GPO. The Uniformed Police Branch received new communications 

equipment allowing it to maintain better radio contact with its police units, the 

Emergency Command Center, and various emergency response teams. 

Physical security within GPO has also been enhanced with the installation of a 

new closed-circuit television system and the acquisition of a new automated 

alarm system. 

Security has also been active in developing and implementing antiterrorist 

procedures and facilities. It is presently working with the Capitol Police to devise 

new security measures to protect the Capitol from the introduction of 

contraband through materials GPO delivers to the Capitol. Responsibility for 

computer security and compliance with the Computer Security Act of 1987 was 

undertaken by the newly established Telecommunications and Automated 

Information Systems Security Group. 

Support Services continued to automate and update Officewide functions and 

programs to better serve GPO's information and support needs. In an effort 

aimed at total accountability of postage expenses, which were in excess of $12 

million in the last year, postage meter systems have been installed in GPO's 

regional offices and bookstores. All administrative mail leaving the central office 

is also metered. The Technical Services Group will be responsible for receipt of 

contractors' mailing statements from the Postal Service and verification of billing 

and postage on future Printing Procurement contracts. 

15 
Human Resources GPO's Office of Human Resources is responsible for programs and services 

which impact all areas of human resources management including policy 

development and all personnel, labor-management relations, and employee 

safety and health matters at GPO. Human Resources developed a number of 

innovative programs and initiatives to improve employee morale and meet 

workforce needs, as well as to improve support to management. 

The introduction of state-of-the-art training resources highlighted the activities of 

Personnel Service. An interactive videodisc training station for individualized 

tutorial training was installed; the first application will be in the Executive 

Management Development Program. An automated classification system was 

developed, and plans for creating a training guide/manual are underway. A 

new Personal Computer Center was established; it has been used to train more 

than 300 employees, saving over $40,000 in tuition thus far. Personnel also 

conducted an on-campus recruitment program for college graduates, and the 

apprentice program was revitalized. 

The Labor and Employee Relations Service negotiated a Master Agreement 

with 13 central office unions covering about 4,000 employees as well as a 

3-year wage agreement with 11 unions covering 2,600 employees. A central 

office smoking policy paralleling the GSA guidelines was also negotiated. 

Effective· June 1988, the Joint Committee on Printing determined that GPO must 

negotiate wages for employees in the American Federation of Government 

Employees' bargaining unit, which precluded adopting the August wage 

increase for clerical employees. The Employee Relations Branch administered 

GPO's highly successful Combined Federal Campaign; a total of $206,000 was 

collected, $41,000 over GPO's goal. 

16 
Equal Employment 

Opportunity Service 

Occupational Health and Environmental Services and the Policy and Evaluation 

Staff teamed up to address two of the most pressing social issues in today's 

workplace. At the direction of the Public Printer, they developed a policy and 

program directive on a drug-free workplace, including guidelines on reasonable 

suspicion testing, testing of job applicants, counseling, and disciplinary options. 

They have also established a GPO Task Force on AIDS, and developed an 

informational manual on the disease. This booklet, which will be distributed to 

all GPO employees, will include information concerning the disease and its 

effects, both emotional and physiological; health benefits; treatment centers and 

psychological support groups; and privacy considerations. 

The Occupational Health Division held GPO's first annual Health Fair, providing 

GPO employees with such benefits as blood testing and computer-generated 

"Health Risk Assessments." As part of an all-out assault on smoking in the 

workplace, a formal "Freedom from Smoking" clinic was conducted. In addition, 

the position of Industrial Hygienist was established to monitor the workplace 

environment. 

The Equal Employment Opportunity Service (EEO) assists GPO management in 

adhering to Government laws, regulations, and policies concerning equal 

employment opportunity for all employees and applicants for employment. The 

Service administers the discrimination complaint system, provides counseling 

services, and evaluates EEO plans and programs throughout GPO. 

The Service prepared and submitted GPO's Multiyear Affirmative Employment 

Program Plan for fiscal years 1988-1992 to the Equal Employment Opportunity 

Commission. EEO also completed the first segment of a cyclical evaluation of all 

GPO installations, including the central office, regional offices, and bookstores. 

The evaluation is designed to determine strengths and weaknesses in all areas 

of the total EEO program; specific recommendations were made to the Public 

Printer as a result of this effort. 

The Handicapped/Disabled Veterans Program was added to the Division of 

Affirmative Programs. Its mission includes establishing programs which address 

the concerns of employees and applicants with physical and mental handicaps, 

including the hearing impaired and disabled veterans. 

Thanks to its activities in career programs and community-related efforts with its 

adopted schools, GPO was cited for the second consecutive year as an 

Outstanding Partner among Federal agencies as part of the Partners in 

Education Program. More than 80 students worked at GPO in the D.C. 

Government's Summer Youth Employment Program and 9 students from GPOadopted schools participated in the In-School Program. 

17 
Financial Policy and Planning 

The Assistant Public Printer (Financial Policy and Planning) serves as the chief 

financial officer of the Government Printing Office and represents the GPO on 

all financial matters before the House and Senate Appropriations Committees, 

the Joint Committee on Printing, the Office of Management and Budget, and 

other external agencies/departments. The Assistant Public Printer also serves as 

Chairman of the GPO Management Resources Committee (MRC). The Office of 

Financial Policy and Planning (FPP) is GPO's strategic planning center with 

responsibility for coordinating the establishment of all GPO financial policy, 

planning, and analysis, including the preparation of GPO's budget and capital 

investment priorities and the development of annual and outyear revenue and 

spending targets. 

This year, FPP prepared and coordinated the presentation of GPO's fiscal year 

1989 appropriations request before the Legislative Branch Appropriations 

subcommittees of the Senate and House of Representatives. The request was 

for $104.5 million, including $77.7 million for the Congressional Printing and 

Binding Appropriation and $26.8 million for the Superintendent of Documents' 

Salaries and Expenses Appropriation. In addition, the appropriations package 

contained a variety of administrative proposals to provide GPO with additional 

authorities and otherwise clarify the intent of Title 44. Final congressional action 

on the request resulted in total appropriations of $85.7 million ($72 million for 

Congressional Printing and Binding and $13.7 million for Salaries and 

Expenses). In addition, $11.4 million in net income generated by the 

Superintendent of Documents' Sales of Publications Program in fiscal year 1987 

was made available to offset the requirements of the Salaries and Expenses 

Appropriation. Most of the administrative proposals in the appropriations 

package were approved, with the exception of GPO's request for flextime 

authority and for elimination of the statutory ceiling on Full-Time Equivalent 

(FTE) employees. 

The office is responsible for overseeing the exe9ution of budget and spending 

priorities in accordance with congressional policy. A key policy governing GPO 

expenditures is the congressionally imposed limitation on employment of FTEs. 

For fiscal year 1988, the FTE ceiling was 5,237; the ceiling approved for fiscal 

year 1989 is 5, 117. The office is responsible for proposing allocations of FTEs 

throughout GPO to the Public Printer and for monitoring their use. 

The office proviqes essential staff support to the MRC by performing 

cost/benefit analyses on spending proposals requiring MRC approval. During 

the year, the staff performed cost/benefit analyses on 35 such projects, valued 

at $4.6 million. Twenty-four of these projects were approved, valued at $2.9 

million, including the relocation of the Chicago RP&PO and the Atlanta 

bookstore. In addition to the fiscal year 1988 proposals submitted to the MRC, 

the fiscal year 1989 proposals for MRC approval were prepared and presented 

by office staff. Almost $11.8 million in new spending projects was approved by 

the MRC for the coming fiscal year, while approximately $5.8 million in new 

spending proposals was disapproved or deferred pending additional information 

or action. 

18 
140 

130 

120 

110 

100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

The formulation of financial policy outside of the budget process is also a 

responsibility of the Financial Policy and Planning area. For example, in 

response to the announcement of a moratorium on expenditures by Department 

of Defense agencies for the last half of the third quarter of fiscal year 1988, the 

office developed spending reduction guidelines to help offset anticipated 

decreases in revenue at GPO. These proposals were formally issued by the 

Public Printer and called for reductions in nonessential overtime as well as 

deferrals of travel, training, outside hires, and purchases of nonessential 

supplies and equipment. 

Office staff are available to other GPO areas requiring financial policy and 

planning expertise. The office provided support to the management team 

participating in the 1988 wage negotiations by developing specific cost 

projections for the implementation of various wage and benefit proposals. 

Similar support was provided for management's analysis of the impact of 

granting bargaining status to the American Federation of Government 

Employees. In addition, support was provided for GPO's review of the Office of 

Technology Assessment's draft report, "Informing the Nation: The Future of 

Federal Electronic Printing, Publishing, and Dissemination." 

Quarterly financial briefings covering GPO's operations were presented to GPO's 

management during the year, and in April, staff of the JCP were invited to 

attend the Public Printer's Quarterly Financial Briefing for the first time. 

GPO Appropriations and Transfers 

Millions of Dollars 

129.9 

1980 1981 1982 1983 1984 1985 1986 1987 

Salaries and Expenses 

- Congressional Printing and Binding 

19 

1988 
Results of GPO 

Operations 

GPO's 1988 Revenue Dollar 

Where It Came From 

66.0e/Purchased Printing __ _ 

.5e/Reimbursements ____ _ 

2.2e/S & E Appropriation __ _ 

7.6e/Sales of Publications ___ _ 

23.7e/ln-House Printing ___ _ 

Financial Highlights 

Title 44 of the U.S. Code requires the U.S. Government Printing Office to fulfill 

the printing and binding needs of the Federal Government, and to distribute 

Government publications to the public. GPO's printing and binding activities are 

accomplished through a network of operations consisting of a Central Office in 

Washington DC, six regional printing plants, 14 regional procurement offices, 

and six satellite procurement offices. Superintendent of Documents' operations 

include the sale of publications, distribution to depository and international 

exchange libraries, reimbursable and statutory distribution, and the cataloging 

and indexing of Government documents. 

All GPO activities are financed through a revolving fund that is reimbursed by 

payments from customer agencies, sales to the public, and transfers from 

various appropriations. These appropriations are used to reimburse GPO for 

costs incurred in performing printing and binding for Congress and for the 

printing, binding, and distribution of Government publications that are, by 

statute, distributed without charge to the recipient. Reimbursements from the 

appropriations are included in GPO's total printing and binding revenue. 

GPO achieved a consolidated net income for fiscal year 1988 of $15.7 million, 

compared to $22.9 million in fiscal year 1987. Total revenue increased to 

$940.9 million in 1988 from $870.6 million in 1987, while total expenses 

increased to $925.2 million in 1988 from $847.8 million in 1987. 

Where It Went 

62.4e/Procured Printing __ _ 

.5e/Capital Expenditures ---

1.5e/Other ______ _____.-

3.4e/Rents, Comm., 

6.5e/Supplies & Ma1:eriatls __ __/ 

21.8e/Labor ______ ./ 

1.7e/Surplus--------------' 

20 
Printing and Binding 

Operations 

In-House Printing 

Operations 

Central and Regional 

Printing Procurement 

Operations 

Sales of Publications 

Operations 

GPO's 1987 Revenue Dollar 

Where It Came From 

64.84:/Purchased Printing __ _ 

.64:/Aeimbursements ____ _ 

2.24:/S & E Appropriation __ ___ 

24.04:/ln-House 

In fiscal year 1988 GPO's in-house and commercially-procured activities 

generated revenue of $875.3 million, accounting for 90 percent of GPO's total 

revenue before eliminations. Revenue from commercially-procured printing was 

$648.3 million or 7 4 percent of the total printing and binding revenue. 

GPO's in-house printing operations earned $7.6 million in net income this year 

compared to net income of $6.7 million in 1987. Total revenues were $227.0 

million compared to $212.7 million last year, while expenses were $219.4 

million compared to $206.0 million in 1987. 

GPO's printing procurement operations generated revenue of $648.3 million 

compared to last year's $591.8 million. Net income was $4.3 million, down from 

the prior year's net income of $4.8 million. Central printing procurement's 

revenue increased to $394.5 million from $354.4 million in 1987. Regional 

printing procurement's revenue grew to $253.8 million in 1988 from $237.4 

million in 1987. 

GPO's Sales of Publications Operations generated net income of $3.8 million on 

sales of $71.1 million, compared to net income of $11.4 million on sales of 

$73.4 million in 1987. Bookstore revenue increased 6 percent to $13.0 million 

in 1988 from $12.3 million in 1987. 

Where It Went 

22.44:/Labor ______ , 

2.64:/Surplus ____________ ..../ 

21 
Financial Statements 

Consolidated Balance Sheet 

As of September 30, 1988, and 1987 (Notes 1 and 2) (in thousands of dollars) 

Assets 

Current Assets: 

Cash: 

On-hand and in-transit 

Revolving Fund 

Appropriations 

Accounts receivable (Note 3) 

Inventories: 

Publications for sale, net (Note 4) 

Paper 

Materials and supplies 

Total Current Assets 

Property, Plant, and Equipment (Note 5}: 

Land and buildings 

Equipment and building improvements 

Less: accumulated depreciation 

Net Property, Plant, and Equipment 

Total Assets 

1988 

$1 '150 

114,909 

32,796 

218,147 

12,185 

15,410 

8,769 

$403,364 

18,648 

111,887 

130,535 

76,586 

53,949 

$457,313 

1987 

$1,860 

94,564 

46,271 

236,186 

12,214 

12,415 

8,430 

$411,940 

18,648 

107,761 

126,409 

70,348 

56,061 

$468,001 

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

22 
Liabilities and Investment 1988 1987 

Current Liabilities: 

Accounts payable (Note 6) $82,463 $87,697 

Advances from customers (Note 7) 35,633 35,115 

Accrued salaries, wages, benefits and other 

withholdings 4,155 10,038 

State and local payroll taxes 1,232 821 

Total Current Liabilities $123,483 $133,671 

Other Liabilities: 

Accrued annual leave 10,064 9,004 

Excess receipts from sales 

of publications, due U.S. Treasury 

(Note 8) 3,799 11,424 

Total Other Liabilities $13,863 $20,428 

Total Liabilities $137,346 $154,099 

Investment of U.S. Government: 

Appropriations: 

Unliquidated obligations 33,996 45,525 

Revolving Fund: 

Contributed capital (Note 9) 110,136 110,413 

Retained earnings 164,411 152,464 

Reserved for intra-office funding (Note 8) 11,424 5,500 

Total Revolving Fund $285,971 $268,377 

Total Investment $319,967 $313,902 

Total Liabilities and Investment $457,313 $468,001 

23 
Consolidated Statement of Revenue and Expenses 

by Function and Retained Earnings 

Fiscal Years 1988 and 1987 (Notes 1 and 2) (in thousands of dollars) 

Printing and Binding 

Revenue: 

Printing and Binding 

Sales of Publications 

Appropriations 

Reimbursements 

Total Revenue 

Expenses: 

Personnel compensation and 

benefits 

Travel and transportation 

Rents, communications and 

utilities 

Printing and reproduction 

Other services 

Supplies and materials 

Depreciation 

Publications sold 

Unsaleable publications 

Total Expenses 

Net Income 

In-House 

Printing 

$227,030 

$227,030 

$142,155 

571 

10,780 

2,498 

57,902 

5,484 

$219,390 

$7,640 

Retained Earnings, Beginning of Fiscal Year 

Retained earnings before payable to U.S. Treasury 

Less: 

Purchased 

Printing 

$648,296 

$648,296 

$29,961 

1,752 

2,961 

607,072 

281 

1,237 

725 

$643,989 

$4,307 

Total 

$875,326 

$875,326 

$172,116 

2,323 

13,741 

607,072 

2,779 

59,139 

6,209 

$863,379 

$11,947 

Excess receipts from current sales of publications, due U.S. Treasury 

Retained Earnings, End of Fiscal Year 

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

24 
Information Dissemination 

Sales 

of Publications 

$71,111 

$71 '111 

$26,885 

984 

14,057 

1,376 

638 

1,899 

191 

16,384 

4,898 

$67,312 

$3,799 

Salaries 

and 

Expenses 

$21,518 

4,895 

$26,413 

$9,735 

340 

4,777 

10,024 

651 

640 

246 

$26,413 

Total 

71 '111 

21,518 

4,895 

$97,524 

$36,620 

1,324 

18,834 

11,400 

1,289 

2,539 

437 

16,384 

4,898 

$93,725 

$3,799 

25 

Total GPO 

Eliminations 

1988 1987 

($31 ,528) $843,798 $772,697 

71 '111 73,448 

(426) 21,092 19,570 

4,895 4,931 

{$31,954} $940!896 $870,646 

($2,883) $205,853 $195,278 

3,647 3,306 

(563) 32,012 28,485 

(27,784) 590,688 535,314 

(537) 3,531 5,901 

(187) 61,491 53,312 

6,646 6,096 

16,384 17,343 

4,898 2,751 

($31,954) $925,150 $847,786 

$15,746 $22,860 

$152,464 $141,012 

$168,210 $163,872 

3,799 11,408 

$164,411 $152,464 
Consolidated Statement of 

Changes in Financial Position 

Fiscal Years Ended September 30, 1988, and 1987 (Notes 1 and 2) (in 

thousands of dollars) 

1988 1987 

Funds Provided: 

Net Income $15,746 $22,860 

Add expenses not requiring working capital: 

Depreciation 6,646 6,096 

Total Funds Provided by Operations 22,392 28,956 

Book value of retired assets 209 46 

Appropriations 89,521 95,085 

Reimbursements 4,895 4,931 

Increase in accrued annual leave 1,060 345 

Total Funds Provided $118,077 $129,363 

Funds Applied: 

Purchase of fixed assets 5,019 7,030 

Funds returned to U.S. Treasury from appropriations 5,155 8,758 

Expended Appropriations (Note 1 0) 106,290 95,995 

Total Funds Applied $116,464 $111,783 

Increase in Working Capital $1,613 $17,580 

Changes in Working Capital 

Current Assets: 

Cash: 

On-hand and in-transit ($710) $490 

Revolving Fund 20,345 (5,772) 

Appropriations (13,475) (3,268) 

Accounts receivable (18,039) 33,593 

Publications for sale (29) 550 

Paper 2,995 (175) 

Materials and supplies 339 116 

Current Liabilities: 

Accounts payable 5,234 (7,613) 

Advances from customers (518) 377 

Accrued salaries, wages, benefits and other 

with holdings 5,883 (668) 

State and local payroll taxes (411) (50) 

Increase (Decrease) in Working Capital $1,613 $17,580 

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

26 
Status of Appropriated Funds 

Fiscal Years Ended September 30, 1988, and 1987 (Notes 1 and 2) 

(in thousands of dollars) 

Congressional Printing Salaries Total 

Appropriated Funds Printing and and and 

Binding Binding Expenses 1988 1987 

Status of 

Appropriations, 

Beginning of 

Fiscal Year $26,301 $4,366 $15,604 $46,271 $49,539 

Funds Provided: 

Appropriations 70,359 19,162 89,521 95,085 

Intra-Office Funding 5,500 5,500 1,378 

Reimbursements 4,895 4,895 4,931 

Total Funds Available $96,660 $4,366 $45,161 $146,187 $150,933 

Funds Applied: 

Obligated 

appropriations: 

Current Fiscal Year 62,522 21,507 84,029 71,065 

Prior Fiscal Years 18,043 935 5,229 24,207 24,839 

Funds returned to 

U.S. Treasury 4,787 368 5,155 8,758 

Total Funds Applied $85,352 $1,303 $26,736 $113,391 $104,662 

Status of 

Appropriations, 

End of 

Fiscal Year $11,308 $3,063 $18,425 $32,796 $46,271 

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

27 
Notes to Financial Statements 

As of September 30, 1988, and September 30, 1987 

(1) Organization 

The Government Printing Office provides printing, binding, and distribution 

services to the Congress and Federal agencies and distributes publications to 

the public. Title 44 of the U.S. Code established the Government Printing Office 

Revolving Fund to finance these operations. The Revolving Fund is reimbursed 

by payments from agencies, receipts from sales of publications, and by 

transfers from the Congressional Printing and Binding and Printing and Binding 

Appropriations. 

Beginning in fiscal year 1988, the Printing and Binding and the 

Congressional Printing and Binding Appropriations were combined into one 

appropriation. This appropriation is for printing and binding performed directly 

for Congress and for printing and binding of publications authorized by law to 

be distributed without charge to recipients. 

The Salaries and Expenses Appropriation is appropriated for necessary 

expenses incurred by the Superintendent of Documents' operations for 

depository library, international exchange, and other by-law distribution of 

publications, and for the cataloging and indexing of Government publications. 

Customer agencies are billed for services performed on a reimbursable basis. 

(2) Summary of Significant Accounting Policies 

Principles of Consolidation-The consolidated financial statements 

include all funds of the Government Printing Office. Inter-fund and interoperational transactions and balances have been eliminated. 

Basis of Accounting- Assets, liabilities, revenue, and expenses are 

recognized on the accrual basis of accounting following generally accepted 

accounting principles and the associated principles of fund accounting. 

Expense Allocations-General and administrative expenses have been 

distributed among the various expense categories. To the extent practicable, 

general and administrative expenses were allocated to the various programs 

based on the estimated level of effort associated with each program. 

Revenue Recognition-Printing and binding revenue is recognized on the 

basis of work performed by the Government Printing Office due to the fact that 

all printing and binding work is required by law to be reimbursed on the basis 

of services rendered. Revenue on work procu,red from commercial printers is 

recognized based on the constructive-receipt concept. Revenue for distributing 

and selling publications to the public is recognized when publications have 

been shipped, or when services have been performed. 

28 
Inventories- Publications for sale are valued using the first-in, first-out cost 

method. During the year, the valuation method for publications for sale was 

changed from weighted-average cost method to first-in, first-out cost method. 

The effect of this change on the valuation of yearend inventory is immaterial. 

The allowance for unsaleable publications is established to estimate the value of 

potentially obsolete publications held in inventory at fiscal year end. Paper, 

materials and supplies are valued using the moving-average cost method. 

Property, Plant and Equipment-Property, plant, and equipment are 

carried at cost. Expenditures which substantially increase the useful life of the 

assets are capitalized. Maintenance and repairs are expensed as incurred. 

Depreciation is computed using the straight-line method with estimated useful 

lives ranging from 42 to 50 years for buildings and from 3 to 30 years for 

machinery and equipment and building improvements. Depreciation expense 

for machinery and equipment and building improvements is recovered from 

~illings to customer agencies. Buildings and structures have been paid from 

Legislative appropriations. Accordingly, depreciation is recorded but not 

reimbursed on these items. 

Intra-Office Funding-The Salaries and Expenses Appropriation was 

funded in part by excess receipts derived from sales of publications. Pursuant 

to Public Law 100-202 this type of funding provided $5,500,000 to the 

Appropriation in fiscal year 1988. For fiscal year 1989, Public Law 100-458 will 

provide the Salaries and Expenses Appropriation $11 ,424,000 from the sale of 

publications. 

Pensions-Government Printing Office employees are covered by the Civil 

Service Retirement and Disability Fund, the Federal Old-Age, Survivor, and 

Disability Insurance Fund and/or the Federal Employee Retirement Fund. 

Consequently, the GPO is responsible for withholding the required percentage 

from each employee's salary and for contributing to the funds. The agency's 

contributions were $12,645,000 and $11,616,000 in 1988 and 1987, 

respectively. 

Contingencies-GPO is involved in three major lawsuits pending in United 

States Claims Court at September 30, 1988. However, ultimate payment arising 

from the settlement of such actions usually is disbursed from the judgment fund 

administered by the General Accounting Office. Therefore, no estimated liability 

has been recorded. 

29 
(3) Accounts Receivable 

Accounts receivable were comprised of the following: 

U.S. Government agencies 

Unbilled completed work 

Unbilled work in process 

Other 

Totals 

September 30 

1988 1987 

$35,285,000 

121 ,588,000 

59,324,000 

1,950,000 

$218,147,000 

$52,256,000 

132,404,000 

50,166,000 

1,360,000 

$236,186,000 

(4) Inventory-Publications for Sale, Net 

Publications for sale, net were comprised of the following: 

Publications for sale 

Allowance for unsaleable publications 

Publications for sale, net 

(5) Property, Plant, and Equipment 

September 30 

1988 1987 

$15,585,000 

(3,400,000) 

$12,185,000 

$15,614,000 

(3,400,000) 

$12,214,000 

Property, plant, and equipment consist of the following: 

September 30 

1988 1987 

Acquisition Accumulated Net Net 

Value Depreciation Book Value Book Value 

Land $9,992,000 $9,992,000 $9,992,000 

Buildings 8,656,000 $8,655,000 1,000 184,000 

Building 

improvements 34,524,000 16,274,000 18,250,000 16,346,000 

Leasehold 

improvements 824,000 153,000 671,000 610,000 

Plant machinery 

and equipment 67,793,000 45,091,000 22,702,000 24,876,000 

Office machinery 

and equipment 7,105,000 5,273,000 1,832,000 2,129,000 

Computer software 309,000 299,000 10,000 48,000 

Furniture and 

fixtures 239,000 181,000 58,000 69,000 

Motor vehicles 769,000 660,000 109,000 73,000 

Capital 

improvements in 

progress 324,000 324,000 1,734,000 

Totals $130,535,000 $76,586,000 $53,949,000 $56,061 !000 

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(6) Accounts Payable 

Accounts payable were composed of the following: 

Category 

Commercial printing 

U.S. Government agencies 

Other 

Totals 

(7) Advances from Customers 

September 30 

1988 

$71 ,090,000 

6,538,000 

4,835,000 

$82,463,000 

1987 

$75,007,000 

7,312,000 

5,378,000 

$87,697,000 

Advances from customers were comprised of the following: 

Category 

Advanced billings to customer agencies 

Customer deposits for publication orders 

Deferred subscription revenue 

Undelivered publication orders 

Totals 

(8) Amount Due U.S. Treasury 

September 30 

1988 

$6,127,000 

8,314,000 

18,535,000 

2,657,000 

$35,633,000 

1987 

$5,501,000 

8,148,000 

19,263,000 

2,203,000 

$35,115,000 

Title 44 requires the Government Printing Office to deposit in the United 

States Treasury excess receipts from sales of publications. The amount due the 

U.S. Treasury as of September 30, 1988, was determined as follows: 

Amount due U.S. Treasury, September 30, 

1987 

Amount to be used to finance 

Fiscal Year 1989 Salaries and Expenses 

Appropriation as per Public Law 1 00-458 

Fiscal Year 1988 Excess Receipts 

Amount Due U.S. Treasury, 

September 30, 1988 

31 

$11 ,424,000 

(11 ,424,000) 

3,799,000 

$3,799,000 
(9) Contributed Capital 

Contributed Capital was derived from the following: 

Contributed Capital 

Beginning net worth when the Revolving 

Fund was established 

Book value of contributed buildings 

and land 

Appropriations for improvements to air 

conditioning and electrical systems 

Appropriations for working capital and site 

acquisition 

Donated equipment 

Totals 

(10) Expended Appropriations 

Expended appropriations were as follows: 

Programs 

Congressional Printing and Binding 

Printing and Binding 

Depository library distribution 

Cataloging and indexing 

By-law distribution 

International exchange 

Distribution for other agencies 

Totals 

September 30 

1988 1987 

$33,807,000 $33,807,000 

430,000 613,000 

12,900,000 12,900,000 

62,600,000 62,600,000 

399,000 493,000 

$110,136,000 $110,413,000 

September 30 

1988 

$77,642,000 

2,235,000 

17,391,000 

2,184,000 

1,213,000 

292,000 

5,333,000 

$106,290,000 

1987 

$62,490,000 

8,620,000 

15,897,000 

2,357,000 

977,000 

295,000 

5,359,000 

$95,995,000 

U.S. GOVERNMENT PRINTING OFFICE : 1989 0 - 220-970 : QL 3 

32