</div>

 </td>

 <td class=”three-col-layout-middle padded-cell1”>

 <div class=”home”><a href=”/”>Home</

a> > About GPO</div><div class=”br”></div> 

 <div class=”section1”>

 <img src=”/images/gpo_entrance.gif” class=”image_

margins align_left” alt=”About GPO”/><h1 class=”main-page-title1 section1_

title”>About GPO</h1>

 <hr />

 <div class=”main-page-intro1”>The core mission of 

<i>Keeping America Informed</i>, dated to 1813 when Congress determined 

to make information regarding the work of the three branches of Government 

available to all Americans. The U.S. Government Printing Office (GPO) 

provides publishing and dissemination services for the official and authentic 

government publications to Congress, Federal agencies, Federal depository 

libraries, and the American public.</div>

 </div>

 <div class=”section2”>

 <div class=”br”></div>

 <p><span class=”section2_title”><strong>GPO 

Mission, Vision, Core Values, and Goals</strong></span><br />

 Review GPO’s <a href=”/about/annualreport.

htm”>Annual Report FY2011–2015</a>.</p>

 <p><span class=”section2_

title”><strong>GPO’s Strategic Plan—Customer Centric and 

Employee Driven</strong></span><br />

 Review GPO’s <a href=”/pdfs/about/2011_

StrategicPlan.pdf”>Strategic Plan for FY2011–2015</a>.</p>

 <p><span class=”section2_

title”><strong>Management Team</strong></span><br />

 <a href=”/about/management_team.htm”>View our 

organizational chart</a> and download leadership biographies.</p>

 <p><span class=”section2_title”><strong>Frequently 

Asked Questions</strong></span><br />

 <a href=”/about/faq.htm”>General questions</a>

 Keeping America Informed

 The U.S. Government Printing Office (GPO) 

 Annual Report FY2011

December 21, 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, 2011. 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

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

Keeping America Informed I www.gpo.gov

WILLIAM J. BOARMAN

Public Printer of the United States

732 North Capitol Street, NW, Washington, DC 20401-0001 | wboarman@gpo.gov
2

When the Founding Fathers met in Philadelphia in the summer 

of 1787 to devise a new charter for the fledgling national 

government, they brought with them a tradition of “publick 

printing”—the publication of official acts and proceedings for 

access by the people—as a means of assuring the people’s right 

to know about the activities and actions of their government. 

“The people have a right to know what their agents are doing or 

have done, and it should not be in the option of the legislature 

to conceal their proceedings,” said delegate James Wilson of 

Pennsylvania, a sentiment that was later enshrined in Article 

I, section 5, of the Constitution as a requirement that “Each 

House shall keep a Journal of its Proceedings, and from time 

to time publish the same, excepting such Parts as may in their 

Judgment require Secrecy...”

computers into its printing systems and 

then developing online products and 

systems to meet the information needs 

of the Government and the public in the 

increasingly digital era.

In 2011, GPO continued to perform 

the functions that trace their origins to 

the tradition of “publick printing,” but 

using technologies and systems that the 

Founders could never have imagined. 

Information content produced on digital 

systems by Congress and Federal agencies 

is stored on GPO’s Federal Digital System 

(FDsys), where it can be accessed and 

processed for new and innovative uses, 

such as Federal Register 2.0. 

Today’s U.S. passport, the direct 

descendant of the document first 

produced by Benjamin Franklin, is a 

hybrid of high-tech security printing 

with an embedded computer chip, 

facilitating travel across international 

borders worldwide while providing the 

highest standards of secure identity for 

American travelers. U.S. border crossings 

for frequently travelling citizens are also 

expedited by the NEXUS, SENTRI, and 

FAST smart cards produced by GPO for 

the Department of Homeland Security, 

another hybrid print and digital product. 

And GPO’s longstanding partnerships 

with the printing industry and the 

Federal depository library community 

are strengthened by electronic links 

providing competitive bid opportunities 

and online search and retrieval to the 

broad spectrum of information produced 

by all three branches of the Government.

Not long after GPO first went to 

work, it was able to report a significant 

savings in Government printing over 

pre-GPO costs. That trend has continued 

throughout our history, perhaps nowhere 

more prominently than in the savings 

resulting from our conversion from 

hot metal to computerized typesetting 

more than a generation ago, yielding 

reductions of up to two-thirds in the 

cost of congressional printing today as 

compared to previous years. 

Similarly, GPO’s implementation 

of online dissemination to depository 

libraries and other users in the early 

1990s has resulted in significant 

savings over the cost of producing and 

distributing printed materials while at 

the same time broadening public access 

exponentially. I am pleased to report 

that our businesslike operations and 

its record of savings for the taxpayer 

continued in 2011, with the agency 

generating $5.6 million in net income 

for the year.

The achievement of this positive 

financial result was not foreordained, 

however. Instead, the financial condition 

of the agency earlier in the year and the 

fiscal realities of 2011 presented GPO 

with a number of serious challenges. 

When I took office in January 2011, I 

found that overhead costs had increased 

significantly in recent years and were 

projected to increase further, threatening 

Public Printer’s Message

For the next 73 years, the early 

Congresses struggled to devise an 

effective, economical system for carrying 

out the constitutional responsibility to 

keep America informed, finally settling 

on the establishment of the Government 

Printing Office. Opening its doors on 

the day President Abraham Lincoln was 

inaugurated in 1861, 150 years ago this 

year, the new GPO carried out its job 

effectively and proved itself capable of 

changing with the times to meet the 

Government’s evolving printing and 

information needs.

In the ensuing years, the mechanization of printing, especially with the 

introduction of the linotype machine, 

led to vastly more efficient production, 

providing the printing needed by 

the growing Nation and helping the 

Government meet and overcome the 

crises of the Great Depression and two 

World Wars. In the postwar period, 

GPO adapted again, first incorporating 
our financial stability. There was also 

a longstanding problem of nearly $30 

million in unrecovered payments owed 

to the GPO by Federal agencies.

In response, we worked with the 

Senate and House Appropriations 

Committees to resolve GPO’s 

funding for FY 2011 at a level that 

was significantly lower than what was 

originally requested. We cut our annual 

spending plan for FY 2011 as previously 

submitted to the Joint Committee on 

Printing (JCP) by 15%. We held the 

line on salary increases consistent with 

the pay freeze ordered by the President, 

reduced the number of senior-level 

costs, we conducted the first-ever survey 

of Senate and House offices on their 

continued need for daily printed copies 

of the Congressional Record and other 

documents, resulting in the reduction of 

several hundred copies.

To meet what are expected to be 

substantially reduced appropriations 

levels for FY 2012, we conducted a 

buyout/early out retirement incentive 

program targeting a reduction of 15% 

of the workforce, and we expect to come 

in close to that target by the end of 

calendar 2011. We are also in discussions 

with outside agencies over their potential 

use of available GPO space, which could 

managers, and implemented controls 

on hiring, travel, overtime, and related 

discretionary accounts. Together these 

actions resulted in a significant reduction 

in overhead expenses.

To address the problem of 

outstanding payments from Federal 

agencies, we created a multi-disciplinary 

task force, an effort that by yearend 

recovered approximately $9 million. 

To help Congress reduce its printing 

While we 

worked 

to reduce 

costs, we 

made a 

commitment 

to do more 

with less. 

significantly reduce our facilities costs. 

While we worked to reduce costs, 

we made a commitment to do more 

with less. We developed and released a 

Strategic Vision Plan that emphasizes 

customer service. The focus of the plan 

has begun to take hold as shown by 

the results of a recent survey of GPO’s 

customer agencies. We submitted to the 

JCP a program of capital investments for 

(Above) Public Printer Bill Boarman discussed 

GPO’s buyout plan with employees on all 3 shifts 

in round-the-clock town hall meetings in June. 

3
Few other 

Federal 

agencies 

can count 

as part of 

their heritage 

the scope 

of the work 

GPO has 

performed.

(Above) GPO’s 150th anniversary  exhibit, 

Keeping America Informed, attracted thousands 

of visitors following its opening in June. (Left) 

Public Printer Boarman inspects an original 

printed edition of the 1862 Preliminary 

Emancipation Proclamation on its delivery by 

Library of Congress curators.

FY 2012 that will yield new efficiencies 

in GPO’s services. We continued the 

development of our Federal Digital 

System (FDsys) as Congress and Federal 

agencies move increasingly to the use 

of digital information products. This 

year, at the request of the National 

Archives and Records Administration, 

we used FDsys to support public access 

to the previously unreleased grand jury 

proceedings involving President Nixon.

We started a Facebook page for 

GPO, implemented a new pilot project 

to make Federal court opinions freely 

available online to the public, and 

to expand GPO’s critically important 

information services to the Senate 

and House of Representatives, as well 

as Federal agencies and the public, 

is working and showing real and 

measurable benefits, and we plan to 

continue following this path.

In 2011, we observed the 150th 

anniversary of the day GPO opened its 

doors for business by presenting a public 

exhibit of our history, with a companion 

publication, Keeping America Informed: 

The U.S. Government Printing Office/150 

Years of Service to the Nation. The exhibit 

features a copy of the most extraordinary 

document ever to have been printed 

by GPO, and perhaps ever issued by 

the Government: the Emancipation 

Proclamation, generously loaned to us 

by the Library of Congress. Both the 

exhibit and the book have been wellreceived, a testament to the extraordinary 

legacy of service that GPO has provided 

to Congress, Federal agencies, and the 

Nation over the past century and a half.

Few other Federal agencies can count 

as part of their heritage the scope of 

the work GPO has performed, from 

that first printing of the Emancipation 

Proclamation to the development of 

one of the Government’s largest and 

most comprehensive Web sites. The 

multitude of men and women who have 

worked here over the past 150 years, who 

produced the documents that have lasted 

to this day, and who adapted to and 

made technology change a reality, are 

the source of that legacy. In this annual 

report is the story of the work they 

performed in 2011, and a preview of the 

legacy that is being carried forward into 

the years to come.

Public Printer’s Message (continued)

expanded our partnership with Google 

Books to include Federal consumeroriented information made available 

by the General Services Administration 

as well as the first volume of the 

Public Papers of President Obama. We 

released a mobile app of our online 

Member Guide, the first of its kind by 

GPO, providing the public with access 

on a variety of devices to photos and 

other information about Members 

of Congress. I believe our program 

of reducing costs while continuing 

4
Throughout 

GPO’s history, 

its employees 

have adapted 

to the various 

needs of 

Congress and 

technology 

changes... 

Today, GPO produces the daily and 

permanent editions of the Congressional 

Record, bills, resolutions, amendments, 

hearings, committee reports, committee 

prints, documents, stationery, and a 

wide variety of other products, in both 

online and print formats, that are 

essential to the legislative process in 

Congress. GPO provides Congress with 

immediate, reliable service in a work 

environment under its direct control. 

All of the work performed by GPO for 

Congress is funded through the annual 

appropriation for Congressional Printing 

and Binding.

Digitized databases containing 

congressional information are now 

GPO’s essential product. GPO’s 

conversion to digital databases for 

the composition of congressional 

publications occurred more than a 

generation ago. Today the activities 

associated with creating congressional 

information databases comprise the 

majority of the work GPO performs for 

Congress.

In addition to using these databases 

to produce printed products as required 

by Congress, GPO uploads them to the 

Internet via our online information 

system, known previously as GPO Access 

and today as GPO’s Federal Digital 

System (FDsys) www.fdsys.gov. Since 

the agency first went online in 1994, 

these systems have provided Congress 

and the public with the definitive source 

of congressional information. GPO 

authenticates documents on FDsys by 

digital signature. This signature assures 

the public that the document has not 

been changed or altered. A digital 

signature, viewed through the GPO Seal 

of Authenticity, verifies the document’s 

integrity and authenticity.

Throughout GPO’s history, its 

employees have adapted to the various 

needs of Congress and technology 

changes to produce the Congressional 

Record in both online and print formats. 

Whenever Congress is in session, GPO 

employees in a matter of hours take the 

proceedings and debates of Congress 

and turn stacks of manuscript into the 

digital files that are then made available 

online via FDsys and in print.

Technological changes over the past 

generation have reduced the cost of this 

and other congressional publications 

GPO and Congress

GPO opened for business on March 4, 1861, the same day 

President Abraham Lincoln was inaugurated. This year marks 

GPO’s 150th anniversary of Keeping America Informed. GPO’s 

mission can be traced to the requirement in Article I of the 

Constitution that each House of Congress shall keep a journal 

of its proceedings and from time to time publish the same.

(Left and above) In March, Public Printer Boarman 

explained to the Senate Appropriations Committee 

that 70% of the cost of producing congressional 

work, such as the Congressional Record, is 

related to preparing the digital file that is used for 

both digital access as well as printing.

by more than two-thirds, and today 

the vast majority of the cost to produce 

the Congressional Record—nearly 

70%—is in the creation of the digital 

file for dissemination online and in 

print. For those print copies needed 

by Congress, Federal agencies, and the 

public, production is on 100% recycled 

newsprint with vegetable oil-based ink.

By law and regulation, House and 

Senate offices and committees are 

provided by GPO with printed copies 

of the Congressional Record and the 

Congressional Record Index, and—on 

behalf of the Office of the Federal 

5
Register (OFR)—with copies of the 

Federal Register, the Federal Register Index, 

and the Code of Federal Regulations. At 

the same time, GPO makes all of these 

publications available online on FDsys. 

Since 1994, when GPO first began 

providing congressional information 

products in online digital formats, 

the number of printed copies of the 

Congressional Record that GPO has been 

required to produce overnight has 

declined from nearly 20,000 to about 

3,000 today.

In May 2011, GPO developed and 

conducted the first-ever online survey of 

congressional offices and committees on 

their need for the printed Congressional 

Record and OFR publications. The online 

survey asked Members, committees, and 

other offices in the House and Senate 

of their needs for the daily Congressional 

Record, the Congressional Record Index, 

and other publications.

Initially, the survey elicited about 

a 50% response rate, with many—

though not all—offices and committees 

requesting to reduce or opt out of 

their receipt of these publications. We 

created a new online form allowing 

congressional offices and committees 

to update their need for printed 

publications from GPO quickly and 

easily. In addition, we followed up with 

offices and committees that did not 

respond to the survey or the Web form 

to ensure GPO is providing only the 

number of printed information products 

that congressional offices need. As a 

result of the survey, GPO is producing 

several hundred fewer copies of the 

Congressional Record every day Congress 

is in session.

GPO developed the agency’s first 

mobile Web application in a digital 

guide to the Members of the 112th 

Congress. The public can take advantage 

of this free downloadable app on any 

mobile device. Users can search for 

Members of Congress by last name, state, 

chamber, or party. Each member’s profile 

includes their picture, party affiliation, 

hometown, home state, and number 

of terms served. The creation of this 

app builds upon our role as the digital 

information platform for the Federal 

Government.

GPO is collaborating with the 

Library of Congress (LOC) to digitize 

some of our Nation’s most important 

legislative documents. The collaboration 

has already resulted in the digitized 

volumes of the Statutes at Large for 

1951-2002, which are now available 

online via FDsys. GPO and LOC have 

begun work on digitizing the official 

debates of Congress from the permanent 

volumes of the Congressional Record from 

1873-1998. GPO and LOC are also 

working together on a project to provide 

enhanced public online access to the 

Constitution of the United States: Analysis 

and Interpretation (CONAN), a Senate 

Document that analyzes Supreme Court 

cases relevant to the Constitution. 

Since the agency’s inception, GPO 

employees have worked through a 

GPO and Congress (continued)

number of unusual conditions to meet 

the needs of Congress, Federal agencies, 

and the public. In August 2011, an 

earthquake measuring 5.8 on the Richter 

Scale shook the Washington, DC, area. 

Following an evacuation of the building 

to ensure the structure was still sound, 

GPO employees went back to work to 

serve the needs of the Congress and 

Federal agencies. Approximately 100 

essential employees in the plant, IT, 

security, and facilities division worked 

through the night to be sure the 

Congressional Record, the Senate Calendar, 

and the daily Federal Register were 

printed and made available online.

6

(Left) In October, GPO issued its first mobile app, providing handheld access to GPO’s online guide to pictures and contact information for Members of the House and 

Senate, while earlier in the year GPO developed an online tool for congressional offices to opt in or out of receiving printed copies of the Congressional Record and 

other documents. (Right) In February, Public Printer Boarman and GPO Chief of Staff Davita Vance-Cooks accompanied the Archivist of the U.S. and staff of the Office of 

the Federal Register to the White House to present President Obama with the first volume of his Public Papers of the President. (Far right) OMB Director Jacob Lew and 

Public Printer Boarman unveiled President Obama’s budget for FY 2012 as it came off the production line at GPO in January.
7

GPO’s digital systems support key 

Federal publications, including the annual U.S. Budget and, most importantly, the 

Federal Register and associated products. 

For 75 of GPO’s 150 years, the agency 

has worked with the Office of the Federal 

Register (OFR) of the National Archives 

and Records Administration (NARA) to 

produce the Federal Register.

Through GPO’s efforts, the online 

Federal Register is also being made 

available in extensible markup language 

(XML) to support bulk data downloads 

via www.data.gov, and with OFR, 

Working with the OFR, we developed the 

online Federal Register 2.0, an innovative 

approach to making information 

on Federal regulations and related 

documents available to the public. 

Our advanced authentication systems, 

supported by public key infrastructure 

(PKI), are an essential component for 

assuring the digital security of this and 

other Federal agency documents.

For the past two years, President 

Obama has asked Federal employees to 

submit suggestions on how to make the 

Government more effective and efficient 

and ensure taxpayer dollars are spent 

wisely through the White House SAVE 

Award (Securing Americans Value and 

Efficiency) initiative. The 2010 SAVE 

Award winning idea focused on the 

Federal Register, allowing recipients to 

opt-in for hard copy delivery in order 

to yield savings associated with printing 

and postage since the Federal Register 

is available and easily accessible online 

from GPO. GPO has been working with 

OFR in carrying out this White House 

initiative. As the quantities of the printed 

version of the Federal Register are 

reduced, GPO has adjusted staffing and 

resources accordingly.

Every year, GPO produces the 

President’s Budget of the United 

States Government for the Office of 

Management and Budget (OMB). In 

February 2011, OMB Director Jacob Lew 

visited GPO to inspect the production of 

President Obama’s Budget of the United 

States Government FY 2012 in GPO’s 

plant. Lew also met the employees who 

produce the Budget and was presented 

with his own copy by the Public Printer. 

In addition to printing the Budget, GPO 

makes it available online on FDsys.

GPO has a long history of working 

with the NARA and the OFR to produce 

the Public Papers of the President, 

which is published twice a year and 

covers a six-month period. The series 

includes volumes documenting the 

administrations of Presidents Hoover, 

Truman, Eisenhower, Kennedy, Johnson, 

Nixon, Ford, Carter, Reagan, George 

H.W. Bush, Clinton, and George W. 

Bush. In February 2011, Public Printer 

Boarman, Archivist David Ferriero, 

GPO’s Chief of Staff Davita VanceCooks, Director of the Federal Register 

Ray Mosley, and OFR staff presented 

President Barack Obama with the first 

volume of the Public Papers dedicated 

to his presidency in an Oval Office 

ceremony. The book, published by OFR 

and produced by GPO, is composed 

of a forward by President Obama, and 

public writings, addresses, remarks, and 

photographs that occurred from January 

20-June 30, 2009.

Also in 2011, NARA turned to GPO 

to host the transcripts of President 

Nixon’s Watergate grand jury testimony 

on FDsys. NARA opened 26 files from 

its Records of the Watergate Special 

Prosecution Force collection including 

transcripts of President Nixon’s grand 

jury testimony of June 23-24, 1975. 

NARA sought GPO’s services for its 

expertise in digital collections and role 

as the digital information platform for 

the Federal Government. This was the 

first time the public has had access to 

this historic collection.

The other major products that GPO 

produces are U.S. passports for the 

Department of State, the premier product 

of our secure and intelligent documents 

business unit. At one time no more than 

a conventionally printed blank book, the 

U.S. passport today incorporates a chip 

and antenna array capable of carrying 

biometric identification data, which with 

other security features has transformed 

this document into the most secure 

identification credential obtainable. In 

FY 2011, GPO produced 13 million U.S. 

passports for the Department of State 

through its main plant in Washington, 

GPO and Federal agencies

For more than a century, GPO’s mission under Title 44 of the 

U.S. Code has been to Keep America Informed: to fulfill the needs 

of the Congress and Federal agencies for official, authentic 

Government information products, and to make those products 

available to the public.
8

DC, and remote secure production 

facility at the Stennis Space Center in 

Mississippi.

GPO has also developed a line of 

secure identification “smart cards” 

used by a number of Federal agencies, 

including the Department of Homeland 

Security (DHS). In 2011, GPO achieved 

a milestone in the production of 

secure border credentials, when GPO 

employees produced the one millionth 

Trusted Traveler Program (TTP) card for 

DHS’ Customs and Border Protection 

(CBP). CBP’s Trusted Traveler Program 

provides an expedited entry process for 

pre-approved, low-risk travelers upon 

arrival in the United States. TTP cards 

include NEXUS, SENTRI and FAST and 

are approved travel documents under the 

Western Hemisphere Travel Initiative. 

GPO is now producing the Global Entry 

card, which is also part of TTP, and 

serves pre-approved international air 

travelers when they return to the United 

States. Global Entry cardholders present 

the cards at automated kiosks to enjoy 

expedited processing through customs. 

GPO also produces a secure 

identification card for the District of 

Columbia government. The DC One 

Card is a consolidated credential 

designed to give adults and children 

access to DC government facilities 

and programs. GPO’s employees are 

responsible for designing, printing, 

personalizing, and mailing the DC One 

Cards. In July 2011, DC Mayor Vincent 

C. Gray visited GPO and toured the 

agency’s secure card center. Public Printer 

Bill Boarman presented Gray with his 

own personalized DC One Card. GPO is 

producing 20,000 DC One Cards for the 

DC Government.

GPO’s secure credential unit has 

been certified by the General Services 

Administration (GSA) as the only 

Government-to-Government provider of 

credentials meeting the requirements of 

Homeland Security Presidential Directive 

12 (HSPD-12). GPO employees in the 

agency’s Secure Credential Center can 

print and personalize the cards with the 

cardholder’s picture and biographical 

data. GSA certified that GPO complies 

with Federal Information Processing 

Standard 201, which sets requirements to 

ensure that identification cards are secure 

and resistant to fraud. Federal agencies 

can now select GPO to produce their 

agency’s identification cards.

GPO works with Federal agencies 

to preserve and make available their 

collections of Government information 

on FDsys. In collaboration with the 

National Oceanic and Atmospheric 

Administration (NOAA) Coastal Services 

Center, GPO is providing digital access 

through FDsys to more than 5,000 

coastal-related documents from the 

Coastal Zone Information Collection. 

The collection provides nearly 30 

years of data and information crucial 

to the understanding of U.S. coastal 

management and NOAA’s mission to 

sustain healthy coasts. NOAA sought 

GPO’s preservation repository services 

on FDsys after planning to discontinue 

public access to the collection.

Other than congressional and 

inherently Governmental work such 

as the Federal Register, the Budget, and 

secure and intelligent documents, GPO 

produces virtually all other Federal 

information product requirements 

via contract through a longstanding 

partnership with the private sector 

printing industry. Our procurement 

operation handles approximately 75% 

of all work sent to GPO for production. 

This system is one of the Government’s 

longest running and most successful 

programs of utilizing the private sector, 

which is represented by more than 

16,600 individual firms registered to do 

business with us, the vast majority of 

whom are small businesses averaging 

20 employees per firm. Contracts are 

awarded on a purely competitive basis; 

there are no set-asides or preferences in 

contracting other than what is specified 

in law and regulation, including a 

requirement for Buy American. This 

partnership provides great economic 

opportunity for the private sector.

GPO closed out FY 2011 by 

conducting a customer satisfaction 

survey of more than 750 Federal agency 

customers. The survey focused on GPO’s 

printing and publishing services, billing 

processes, and employee customer 

service. This was the first customer 

satisfaction survey conducted since 2007 

with the purpose of identifying ways 

GPO can better serve Federal agency 

customers. Some of the results included:

n	 91 percent of customers are satisfied 

overall with the services they are 

receiving

n	 89 percent of customers are likely to 

recommend GPO to a colleague

n	 81 percent of customers utilize the 

forms and publications available on 

GPO’s Web site

The results of the customer 

satisfaction survey support a principal 

goal of GPO’s Strategic Plan, released 

in April 2011, to ensure that GPO meets 

customer agency needs and expectations. 

The survey reported improvements 

across the board in satisfaction with 

GPO’s billing process, including 

promptness of billing, accuracy of 

invoices, the billing problem resolution 

process, and satisfaction with GPO’s 

deposit accounts. Earlier this year GPO 

established a multidisciplinary task force 

to identify and resolve billing issues, 

to improve customer satisfaction and 

collect outstanding funds owed 

to GPO. By yearend, approximately 

$9 million in outstanding payments had 

been recovered.

GPO and Federal agencies (continued)
GPO 

supports 

openness 

and 

transparency 

through 

its Federal 

Digital 

System 

(FDsys)

(Left) In September, Public Printer Boarman spoke 

at the dedication of a new Federal depository 

library at Towson University in Maryland, following 

its designation by Representative John Sarbanes. 

(Above)  In October, hundreds of members of the 

Federal depository library community gathered in 

Arlington, VA, for the annual meeting of the Federal 

Depository Library Council, workshops, and an 

address by Public Printer Boarman.

9

explores GPO’s history since it was 

created 150 years ago to bring an end 

to the costly and ineffective system of 

private sector printing originally used by 

the Federal Government. Through war 

and peace, boom and bust, GPO has 

produced countless historic publications 

for the Government. In addition to the 

Emancipation Proclamation, GPO has 

produced a vast range of documents that 

Americans have used for generations, 

such as passports, social security cards, 

census and tax forms, and others. The 

book focuses on GPO’s role as the 

source of information by and about 

the Government and the successive 

technologies used by the agency to carry 

The exhibit tells the story of how 

GPO’s employees through its history 

have moved from using hand-set 

type to employing hand-held devices 

for receiving the latest digital files of 

Government information. Among the 

exhibit’s highlights are copies of the 

memorable work produced by GPO 

through the years, including Thomas 

Jefferson’s Bible, the Warren Commission 

Report on the Assassination of President 

Kennedy, the colorful posters issued by 

the Government during World War II, a 

signed copy of President George H.W. 

Bush’s 1991 State of the Union address, 

and the latest Web 2.0 version of the 

Federal Register. Also on display is the 

linotype machine that accompanied 

General John J. Pershing’s headquarters 

staff in France during World War I, and 

visitors can use computer kiosks that 

provide access to GPO’s Federal Digital 

System (FDsys).

To accompany the exhibit, GPO 

released Keeping America Informed: The 

U.S. Government Printing Office/150 Years 

of Service to the Nation, the first official 

history to be released in 50 years. Along 

with the text, Keeping America Informed

includes many photographs that have 

never been published before. The book 

GPO and the Public

In 2011, GPO celebrated 150 years of service to the Nation. 

To commemorate this milestone, the agency opened an exhibit 

at its headquarters in Washington, DC, and released a new 

book on GPO’s history. The exhibit’s centerpiece is an original, 

printed copy of the preliminary Emancipation Proclamation, 

issued in September 1862 by President Abraham Lincoln and 

printed by GPO. The document, on loan from the Library of 

Congress, shows a proofreader’s edits marking revisions that 

were incorporated into the final version of the Proclamation 

that was issued in January 1863. 
10

out that role, from hand-set type to 

today’s digital files.

Throughout its history, GPO has 

been an important part of the District 

of Columbia and today employs 

approximately 300 DC residents. GPO 

also performs work for the District on 

a reimbursable basis, including design 

services for a number of District agency 

brochures and annual reports. In July 

2011 DC Mayor Vincent Gray visited 

GPO to promote the DC Summer Youth 

Employment Program. GPO placed 

26 District youths in various summer 

positions, giving them the opportunity 

to develop skills and undergo training 

in public service. He also toured GPO’s 

150th anniversary exhibit. Mayor Gray 

was the first DC Mayor to visit the 

agency in 35 years.

GPO supports openness and 

transparency in Government by 

providing permanent public access to 

Federal Government information at 

no charge through its Federal Digital 

System (FDsys), which has more than 

250,000 Federal titles online and sees 

more than 25 million documents 

downloaded every month and through 

partnerships with approximately 1,220 

libraries nationwide participating in 

the Federal Depository Library Program 

(FDLP). FDLP members include public, 

academic, law, and other libraries 

located in virtually every congressional 

district across the Nation. These libraries 

are critical links between “We the 

People” and the information provided 

by the Federal Government. GPO 

provides the libraries with information 

products in online or tangible formats. 

The libraries in turn make these available 

to the public at no charge and provide 

additional help and assistance to 

depository library users.

In September 2011, Public Printer 

Bill Boarman and Superintendent of 

Documents Mary Alice Baish joined 

Representative John Sarbanes in 

designating Towson University’s Albert S. 

Cook Library as a member of the FDLP. 

In October, GPO hosted the Fall Federal 

Depository Library Program Conference 

for more than 400 librarians nationwide.

GPO also provides public access to 

the wealth of official Federal information 

through a sales program featuring 

secure ordering through an online 

bookstore for GPO sales publications 

and a partnership with the private 

sector to offer Federal publications as 

eBooks. GPO and Google entered into 

a partnership to offer the public Federal 

Government titles in an eBook format. 

The titles are available from Google’s 

eBookstore, and can be searched, 

purchased, and read on any connected 

device with a capable browser. The GPO 

and Google partnership has increased 

Government transparency by making 

Government publications accessible to 

the public in a digital format.

Today, GPO has more than 200 

titles available in eBook format. Some 

noteworthy titles include the first 

volume of President Obama’s Public 

Papers of the President, The Financial Crisis 

Inquiry Report, and Wings in Orbit, the 

legacy of the space shuttle program. 

GPO’s sales program commemorated 

the 10th anniversary of the September 

11, 2001, attacks by making 9/11-related 

publications available to the public. 

GPO released for the first time the 

official edition of the 9/11 Commission 

Report in an eBook format and the 10th 

anniversary edition of Pentagon 9/11 with 

a new foreword by Secretary of Defense 

Leon Panetta.

For 40 years, GPO’s Public 

Documents Distribution Center in 

Pueblo, Colorado has worked with 

the General Services Administration’s 

(GSA) Federal Citizens Information 

Center to process and distribute orders 

for consumer publications. Last year, 

Congress passed an act naming the 

Center after former Representative Frank 

Evans, who died in June 2010. As a 

member of the House Appropriations 

Committee in the late 1960s, 

Representative Evans led the effort to 

establish the Center, which opened its 

doors for business in 1971. In April 2011, 

members of Representative Evans’ family 

joined GPO’s Assistant Public Printer of 

Operations Jim Bradley, representatives 

of the Pueblo city council, the GSA, 

and nearly 100 guests at the renaming 

ceremony. In September, Public Printer 

Boarman visited Pueblo to celebrate the 

Center’s 40th anniversary and to tour the 

facility and meet with employees.

GPO continues to develop its 

social media presence in an effort to 

engage with the public and increase 

transparency. In February 2011, the 

agency launched a GPO Facebook page, 

adding to its existing social media profile 

which includes Twitter and YouTube. 

GPO’s Government Book Talk blog is 

now in its second year and continues 

to connect the public to Government 

publications.

GPO and Congress (continued)

Public Printer Bill Boarman and Washington, DC, 

Mayor Vincent Gray following a tour in July of 

GPO’s smart card production facility, where GPO 

is producing the DC One Card for the District 

government.
2 0 1 1 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 S t a t e m e n t s

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 presented at http://www.gpo.gov/pdfs/congressional/archives/2011_

AnnualReport.pdf.

For fiscal year 2011 (October 1, 2010 - September 30, 2011) GPO received a clean audit opinion on its consolidated 

financial statements from KPMG LLP.

For the eighth consecutive year, GPO achieved positive financial results before other operating expenses. Net income 

before other operating expenses was approximately $2.9M in fiscal 2011 compared to net income before other operating 

expenses of approximately $9.0M in fiscal 2010. In fiscal 2011, both operating revenue and operating expenses decreased from 

fiscal 2010. Operating revenue was down $107.2M, or 11.5% (to $821.1M from $928.3M), while operating expenses dropped 

$101.1M, or 11.0% (to $818.2M from $919.3M). The decrease in revenue and expenses was primarily due to a drop in activity 

within the Customer Services business unit.

Other operating expenses in 2011 included a credit of $2.7M 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, 2011. Inclusive of other operating expenses, GPO had a net income of $5.6M in 2011 

compared to a net income of $9.3M in 2010.

Operations provided $46.4M in cash in 2011 as compared to $86.0M in cash in 2010. The GPO invested $12.7M on 

capital items in 2011 as compared to $14.4M in 2010. 

Summary Statements of Cash Flows (in thousands) 2011 2010

Cash Flows from Operating Activities

Net Income $ 5,637 $ 9,288

Provided by operating activities:

Depreciation and other 21,499 19,911 

Decrease in assets 202 36,727 

Increase in liabilities 21,799 20,380

Workers’ compensation liability (2,740) (290)

Total adjustments 40,760 76,728 

Net cash provided by Operating Activities 46,397 86,016

Cash flows used in Investing Activities (12,667) (14,447)

Cash flows provided by Financing Activities 12,959 12,470

Net Increase in Fund Balance with Treasury $ 46,689 $ 84,039

Summary of Revenues, Expenses, and Net Income (in thousands) 2011 2010

Operating Revenues $ 821,109 $ 928,338

Operating Expenses 818,212 919,340

Income before other operating expenses 2,897 8,998

Other Operating Expenses

Decrease in workers’ compensation liability 2,740 290

Net Income $ 5,637 $ 9,288

11
12

Summary Balance Sheets (in thousands) 2011 2010

Assets

Current Assets

Fund balance with Treasury $ 386,854 $ 340,165 

Accounts receivable, net 172,271 171,677 

Inventory, net 31,919 32,570 

Prepaid expenses 99 244

Total current assets 591,143 544,656 

General property, plant and equipment, net 103,261 110,891

Total Assets $ 694,404 $ 655,547

Liabilities and Net Position

Current Liabilities

Accounts payable and accrued expenses $ 120,957 $ 108,942 

Deferred revenues 143,144 127,286

Accrued annual leave 10,843 11,153 

Total current liabilities 274,944 247,381 

Other Liabilities

Workers’ compensation liability 68,144 70,884

Voluntary separation incentive program — 4,562

Total Liabilities 343,088 322,827 

Net position

Cumulative results of operations

Retained earnings 165,288 159,651

Invested capital 92,879 92,879

Unexpended appropriations 93,149 80,190

Total Net Position 351,316 332,720

Total Liabilities and Net Position $ 694,404 $ 655,547

GPO’s Balance Sheet continued to strengthen as a result of the positive operating performance. Working capital increased 

by $18.9M, to $316.2M in 2011 from $297.3M in 2010, and total current assets increased by $46.4M, to $591.1M in 2011 from 

$544.7M in 2010. 

Total assets grew by $38.9M to $694.4M in 2011 from $655.5M in 2010. Cash increased to $386.9M in 2011 from 

$340.2M in 2010. Inventory decreased by $700,000 to $31.9M in fiscal 2011 compared to $32.6M in fiscal 2010. The decrease is 

attributable to a reduced number of passport chips held in inventory at the end of fiscal 2011.

GPO ended fiscal 2011 with retained earnings of $165.3M, compared to $159.7M at the end of fiscal 2010.
GPO’s main Web site: www.gpo.gov

GPO’s Federal Digital System: www.fdsys.gov

Facebook: http://www.facebook.com/USGPO

Twitter: http://twitter.com/USGPO

YouTube: http://www.youtube.com/user/gpoprinter

Government Book Talk blog: http://govbooktalk.gpo.gov/
 </div>

 </td>

 <td class=”three-col-layout-middle padded-cell1”>

 <div class=”home”><a href=”/”>Home</

a> > About GPO</div><div class=”br”></div> 

 <div class=”section1”>

 <img src=”/images/gpo_entrance.gif” class=”image_

margins align_left” alt=”About GPO”/><h1 class=”main-page-title1 section1_

title”>About GPO</h1>

 <hr />

 <div class=”main-page-intro1”>The core mission of 

<i>Keeping America Informed</i>, dated to 1813 when Congress determined 

to make information regarding the work of the three branches of Government 

available to all Americans. The U.S. Government Printing Office (GPO) 

provides publishing and dissemination services for the official and authentic 

government publications to Congress, Federal agencies, Federal depository 

libraries, and the American public.</div>

 </div>

 <div class=”section2”>

 <div class=”br”></div>

 <p><span class=”section2_title”><strong>GPO 

Mission, Vision, Core Values, and Goals</strong></span><br />

 Review GPO’s <a href=”/about/annualreport.

htm”>Annual Report FY2011–2015</a>.</p>

 <p><span class=”section2_

title”><strong>GPO’s Strategic Plan—Customer Centric and 

Employee Driven</strong></span><br />

 Review GPO’s <a href=”/pdfs/about/2011_

StrategicPlan.pdf”>Strategic Plan for FY2011–2015</a>.</p>

 <p><span class=”section2_

title”><strong>Management Team</strong></span><br />

 <a href=”/about/management_team.htm”>View our 

organizational chart</a> and download leadership biographies.</p>

 <p><span class=”section2_title”><strong>Frequently 

Asked Questions</strong></span><br />

 <a href=”/about/faq.htm”>General questions</a>

 Keeping America Informed

 The U.S. Government Printing Office (GPO) 

 Financial Year In Review | Fiscal Years 2011 And 2010
U.S. Government Printing Office Financial Year In Review – FY 2011 2 

I. Management’s Discussion and Analysis (Unaudited)........................................................... . 3 

 Mission ................................................................................................................................... 4 

 Basis of Financial Reporting ............................................................................................... 4 

 Programs and Operations ................................................................................................... 5

 Funding ............................................................................................................................ 5 

 Programs and Operations Overview ................................................................................ 6 

 Management Initiatives to Improve Agency Operations ................................................. 8 

 Financial Position and Results for Fiscal Year 2011 ........................................................ 13 

 Consolidated Balance Sheets ........................................................................................... 13 

 Consolidated Statements of Revenues, Expenses, and Changes in Retained Earnings... 14 

 Consolidated Revenues .............................................................................................. 14 

 Consolidated Expenses............................................................................................... 16 

 Changes in Retained Earnings ................................................................................... 18 

 Consolidated Statements of Cash Flows.......................................................................... 18 

 Performance Measures ........................................................................................................ 19 

 Operating Performance Measures.................................................................................... 19 

 Financial Performance Measures ..................................................................................... 19 

 Possible Future Effects of Existing Events and Conditions ............................................. 22 

 Fiscal Year 2012 Financial Projections.............................................................................. 24

II. Inspector General’s Report..................................................................................................... 25 

III. Independent Auditors’ Report................................................................................................ 28

IV. Consolidated Financial Statements ........................................................................................ 43 

 Consolidated Balance Sheets............................................................................................... 44 

 Consolidated Statements of Revenues, Expenses, and Changes in Retained Earnings. 45 

 Consolidated Statements of Cash Flows ............................................................................ 46 

 Notes to Consolidated Financial Statements ..................................................................... 47 

 1. Summary of Significant Accounting Policies.................................................................. 48 

 2. Fund Balance with Treasury ............................................................................................ 56

 3. Accounts Receivable, Net ................................................................................................ 56 

 4. Inventory, Net .................................................................................................................. 57 

 5. Prepaid Expenses ............................................................................................................. 58 

 6. General Property, Plant and Equipment, Net................................................................... 58 

 7. Accounts Payable and Accrued Expenses........................................................................ 59 

 8. Deferred Revenues........................................................................................................... 60 

 9. Workers’ Compensation Liability.................................................................................... 60 

 10. Commitments ................................................................................................................... 61 

 11. Contingencies................................................................................................................... 62 

 12. Net Position...................................................................................................................... 62 

 13. Appropriated Funds.......................................................................................................... 65 

 14. Employee Benefit Plans ................................................................................................... 67 

 15. Major Customers.............................................................................................................. 68 

 16. Voluntary Separation Incentive Program......................................................................... 68 

 17. Subsequent Events ........................................................................................................... 69 

Acronym List .................................................................................................................................... 70 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 3 

SECTION I 

MANAGEMENT’S 

DISCUSSION 

AND 

ANALYSIS 

(UNAUDITED)
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 4 

U.S. Government Printing Office 

Management’s Discussion and Analysis 

As of September 30, 2011 

Mission 

The mission of the U.S. Government Printing Office (GPO or Agency) is Keeping America 

Informed, by providing publishing and dissemination services to its customers: the Congress, 

Federal agencies, and the public. GPO was created on June 23, 1860, when President James 

Buchanan signed Joint Resolution 25. GPO’s first day of operation was March 4, 1861. 

GPO accomplishes its 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 to produce and distribute Federal Government 

information. To ensure that Federal information is readily available to all citizens, GPO makes it 

accessible in an array of communication mediums from traditional printed products to digital 

documents and online databases that are accessible through the Internet. 

Basis of Financial Reporting 

GPO’s consolidated financial statements are prepared pursuant to the requirements of Title 31 

United States Code (U.S.C.), 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 Title 44 U.S.C. Public Printing and 

Documents, § 309, Revolving Fund for Operation and Maintenance of Government Printing 

Office. 

The consolidated financial statements 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 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 5 

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, establishes 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. 

GPO’s 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. The OIG and occasionally the 

Government Accountability Office (GAO) conduct audits of GPO’s programs and operations, 

and as such, evaluate management controls. GPO’s Internal Control Program, along with 

recommendations from audits, reviews, and investigations, has strengthened management 

controls and improved the economy, efficiency, and effectiveness of GPO’s programs, 

operations, and other activities. 

Programs and Operations 

The programs and operations managed by GPO are based on various public laws codified in 

Title 44 U.S.C. GPO’s statutory responsibilities include fulfilling the printing and information 

product needs of the Federal Government and distributing Federal Government information to 

the public. 

Funding 

GPO’s programs and operations are funded through a business-type revolving fund, authorized 

by Title 44 U.S.C. and by annual and certain no-year and multi-year appropriations provided by 

Congress. GPO’s Revolving Fund is authorized to be self-sustaining, without fiscal year 

limitations applicable to most annual appropriations. 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 GPO’s Revolving Fund are: 

 Payments from Federal customers for printing and binding, blank paper and paper 

products, and information products and design services; 

 Sales of Government publications and information products to the general public, 

 bookstores, book dealers, and businesses; and 

 Fund transfers from the Congressional Printing and Binding (CP&B) Appropriation and 

 the Salaries and Expenses (S&E) Appropriation. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 6 

The CP&B and S&E appropriations reimburse GPO’s Revolving Fund for costs incurred to 

produce congressional work and fulfill statutory requirements to disseminate Federal 

Government information to the public, respectively. Unexpended CP&B and S&E appropriation 

balances may be authorized to be transferred to the Revolving Fund for these purposes with the 

approval of the House and Senate Appropriations Committees. Otherwise, unexpended annual 

appropriations are returned to the U.S. Department of the Treasury after five years. Congress has 

also made no-year and multi-year appropriations available to GPO’s Revolving Fund for specific 

purposes. For example, appropriations have been made for building improvements, security 

enhancements, information systems, and workforce retraining. Reimbursements to the 

Revolving Fund from the CP&B and S&E appropriations are recorded as revenue when related 

liabilities are incurred. 

Programs and Operations Overview

GPO is organized into separate business units or segments, as described below, to carry out the 

various programs and operations of the Agency. 

Plant Operations – The Plant Operations business unit publishes, conventionally and digitally, 

the important official journals of the Federal Government, along with many other Federal 

Government documents that are available to the public. This business unit provides Congress 

with all legislative printing and binding services, including overnight production of the 

Congressional Record, and congressional bills, reports, and hearings. GPO also produces the 

daily Federal Register and the Code of Federal Regulations for the Executive Branch. 

Congressional and Federal Register documents created in digital formats are posted on GPO's 

Federal Digital System (FDsys). 

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 supports congressional and agency requirements for traditional 

products, while ensuring the proper coordination of their digital versions with other GPO 

business operations in compliance with GPO’s electronic information dissemination mandate. 

Security and Intelligent Documents – This business unit designs, prints, manufactures, and 

distributes secure credentials, documents, tickets, and smartcards for other Federal agency 

customers. These security products and services incorporate advanced electronic technologies 

and integrated security features to prevent fraud and counterfeit activities. Security and 

Intelligent Documents (SID) products and services include the production of all of our Nation’s 

passports and a family of secure diplomatic drivers’ licenses and protocol cards for the 

Department of State. Additionally, SID supports the Department of Homeland Security’s 

Trusted Traveler border crossing smartcard program as well as the HSPD-12 PIV card program 

used for access to Federal facilities and systems. SID also provides secure products and services 

for the Department of Health and Human Services, the Department of Defense, and the District 

of Columbia government. 

SID operates within a certified International Organization for Standardization (ISO) 9001 

production and quality control environment. SID protects the Personal Identifiable Information 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 7 

(PII) data of customers used in the personalization of credentials, and is certified by the General 

Services Administration as the only Government entity capable of graphically personalizing the 

Nation’s HSPD-12 PIV smart cards now used in all agencies for physical access to Federal 

Government facilities and logical access to Federal Government computer systems. SID 

accomplishes all this by leveraging GPO’s long and successful security printing tradition with 

expertise in biometrics, advanced chip and antenna technologies and state-of-the-art security 

features found in inks, threads, holograms, paper, and plastic substrates. 

Customer Services – The majority of the Government’s printing needs are satisfied through 

Customer Service’s partnership with the printing and information product industries that takes 

advantage of the vast resources, expertise, and specialization within the private sector. This 

business unit receives printing requisitions from Federal customers and acquires the information 

products and services competitively from the private sector through various types of procurement 

vehicles tailored to the specific needs of customers. Thousands of businesses, small to large in 

size, openly compete for printing jobs. GPO assigns Customer Service teams to provide 

consulting, print procurement, contract administration, and other related services to Federal 

customers. Dedicated Customer Service teams are in continuous contact with Printing Officers 

and Program Managers at their assigned agencies to maintain high levels of satisfaction and to 

expand their expertise on each agency’s specific mission, needs, and challenges. GPO’s 

performance measures for on-time delivery and quality acceptance (see Performance Measures 

section) underscore the effectiveness of this partnership between industry and Government. 

Digital Media and Creative Services – GPO provides Congress and Federal agency customers 

with many products and services to assist in the creation and dissemination of information. 

GPO’s Digital Media team creates digital information solutions, including: Web design, Web 

development, Web consulting, and Web hosting for other Federal agencies. In addition, they 

offer digital consulting services to ensure compliance with Federal mandates. 

GPO’s Creative Services team is composed of professional designers who provide branding and 

identity design, Web graphics, and multi-media presentations. The team consults with agency 

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. 

Publication and Information Sales Program – GPO’s Publication and Information Sales 

business unit increases public access to U.S. Government information through sales of 

Government information products. The public may purchase paper 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. Publication and Information Sales also provides customer agencies 

with expert advice on how to make their publications more user-friendly and commercially 

viable. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 8 

Reimbursable Services Program – This business unit provides a variety of global order 

fulfillment, inventory, and list management services to Federal agencies through distribution 

centers in Pueblo, CO, and Laurel, MD. This business unit supports the General Services 

Administration’s popular Federal Citizen Information Center in Pueblo. 

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 ensures equitable, secure, convenient, and permanent no-fee access to 

published U.S. Government information. The FDLP includes 1,214 designated Federal 

depository libraries throughout the United States and its territories that provide the American 

public free access to U.S. Government publications in tangible and electronic collections. 

Library Services and Content Management (LSCM) also supports the development of, promotion 

of, and education about GPO’s Federal Digital System (FDsys), which provides direct online 

access to Federal Government publications from all three branches of Government 

(www.fdsys.gov). Other online services managed by this business unit include the Catalog of 

U.S. Government Publications (http://catalog.gpo.gov), the FDLP Desktop (www.fdlp.gov), the 

FDLP Community Site (http://community.fdlp.gov), and Ben’s Guide to the U.S. Government 

(http://bensguide.gpo.gov). LSCM’s major operational functions include: cataloging, acquiring 

new electronic and tangible publications for the FDLP, Web services development and 

sustainment, program planning, distributing publications to libraries, education and outreach, 

library technical services, and archival management. 

Management Initiatives to Improve Agency Operations

GPO is the Federal Government's primary resource for producing, procuring, cataloging, 

indexing, authenticating, disseminating, and preserving the official information products of the 

U.S. Government in digital and tangible forms. GPO is responsible for the production and 

distribution of information products and services for all three branches of the Federal 

Government, including U.S. Passports for the Department of State as well as the official 

publications, in both electronic and print formats, of Congress, the White House, and other 

Federal agencies. In addition to publication sales, GPO provides for permanent public access to 

Federal Government information at no charge through FDsys and through partnerships with 

libraries nationwide participating in the FDLP. 

GPO’s Strategic Vision Plan for 2011 – 2015 places emphasis on the effective and efficient 

accomplishment of the Agency’s mission, while maintaining and promoting the Agency’s core 

values of integrity, teamwork, commitment, and dependability. The plan has been developed to 

guide the Agency in satisfying stakeholders, strengthening GPO’s organizational foundation, and 

offering best value and service. The plan also encourages employees to be fully engaged in 

accomplishing GPO’s mission. Policy decisions, budgeting and capital investment decisions, 

workforce development, industry partnerships, customer relations, operational decision-making, 

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. These efforts will enable 

GPO to better satisfy the existing and future needs of Congress, Federal agencies, and the public. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 9 

Congressional Printing Survey – In 2011 GPO conducted its first-ever survey of Congressional 

offices and committees on their need for printed Congressional Record, Congressional Record 

Index, and Office of the Federal Register publications (Federal Register, Federal Register Index, 

and the Code of Federal Regulations). 

The survey elicited about a 50 percent response rate, with many, though not all, offices and 

committees requesting to reduce or opt-out of receiving these publications. The greatest savings 

from the survey was a reduction in the number of printed copies of the Congressional Record. 

At May 2, 2011, the number of printed copies of the daily Congressional Record was 3,623. The 

number of copies printed at November 7, 2011 was 2,955, or a reduction of 18 percent within 6 

months. This compares to an average annual reduction in printed copies over the last 17 years of 

about 4 percent. The 668 fewer copies included 590 copies paid for by the Congressional 

Printing and Binding Appropriation, thereby saving the appropriation almost $300,000 annually. 

During the year, there was also a White House initiative to reduce the number of printed copies 

of the Federal Register produced for Federal agencies. At May 2, 2011, there were 5,476 copies 

of the Federal Register printed daily. At November 7, 2011, the number was 2,644, a reduction 

of 2,832, or about 52 percent. The estimated production savings from this initiative were about 

$400,000 annually.

GPO’s Federal Digital System Enhancements – GPO’s FDsys provides free online access to 

official information from all three branches of the Federal Government. FDsys is: 

• A Content Management System – FDsys provides free online access to official Federal 

Government publications and securely controls digital content throughout its lifecycle to 

ensure content integrity and authenticity. 

• A Preservation Repository – The repository guarantees long-term preservation and 

access to digital Government content. To meet this critical need for permanent access to 

Government information, FDsys follows archival system standards. 

• An Advanced Search Engine – FDsys combines modern search technology with 

extensive metadata creation to ensure the highest quality search experience. 

In fiscal 2011, GPO completed the migration of content to FDsys from GPO Access (the legacy 

site), as well as authenticated the majority of the collections that are available on FDsys. In 2011 

the following FDsys enhancements were deployed: 

• The Coastal Zone Information Center collection was added through a partnership with the 

National Oceanic and Atmospheric Administration (NOAA) Coastal Services Center. 

This collection provides digital access to more than 5,000 coastal related documents and 

nearly 30 years of data and information GPO received from the NOAA Central Library. 

• Digitized United States Statutes at Large – In fiscal 2011, The United States Statutes at 

Large, years 1951 - 2002, covering the 82nd – 115th Congresses, were ingested and 

released on FDsys through a partnership with the Library of Congress. 

• In partnership with the Administrative Office of the United States Courts, the United 

States Courts Opinions collection was made available on FDsys as a public beta. This 

pilot was at the request of the Judicial Conference to increase public access to select 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 10 

opinions of the United States appellate, district, and bankruptcy courts. Collection 

holdings date from April 2004 and are authenticated with digital signatures. 

• Microsoft Excel spreadsheets were added to the Economic Indicators collection. 

• The Government Manual collection was updated to be able to accept XML data. 

• The Public Papers of the President collection was updated to accept XML data. The 

XML data is also available through Data.gov. 

• Beginning with the 112th Congress, the Constitutional Authority Statements (CAS) 

printed in the Congressional Record were made available in FDsys as individual 

documents. This enables users to perform a search on and then link directly to the 

individual document CAS in HTML and PDF formats. 

At September 30, 2011, there were more than 225,000 publications available on FDsys, 

including congressional Bills, the Federal Register, and the United States Statutes at Large. 

This volume of Government information represents over 8 million searchable granules of 

content. Additionally, a continuity of access backup site has been developed and deployed, 

providing uninterrupted availability to publications in FDsys. 

Future enhancements to FDsys that will improve the transparency of Federal Government 

information are being developed, including the capability to accommodate the submission of 

large batches of content more efficiently, and the capability to support mobile applications to 

address the expanding market of e-reader and smart phone users. 

Conversion of GPO’s Historic Shelflist – GPO’s historic shelflist (paper bibliographic records 

on 3”x 5” index cards), with over one million cards, contains records of materials distributed to 

Federal depository libraries dating from the 1870’s to the shelflist’s closure in 1992. The 

shelflist contains information on publications in all formats (monographs, serials, maps, 

integrating resources, and microfiche) as well as publications distributed by the publishing 

agency. The cards were also used by GPO staff to record information about how to obtain copies 

of a title, information discovered about publication history, and contact information for staff at 

the publishing agencies. 

GPO is in the process of converting this material to electronic format so that it can be made 

available to the public and Federal depository libraries nationwide. At the end of fiscal 2011, the 

project had added over 100,000 records to GPO’s Catalog of U.S. Government Publications

(http://catalog.gpo.gov). 

GPO Partnerships – Partnerships with the library community have been an important 

contributor to GPO’s success in maintaining a vibrant Federal Depository Library Program. 

During fiscal 2011, the following partnerships helped increase the value of the FDLP to its users. 

• GPO signed a partnership with the Department of Labor and the National Technical 

Information Service for permanent public access to the Davis-Bacon wage determination 

on the Wage Determinations Online Web site (http://www.wdol.gov). This is the official 

Federal Acquisition Regulations (FAR) mandated site, containing both current and 

archived wage determinations. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 11 

• GPO signed a partnership with the University of Iowa Libraries for permanent public 

access to their collection of digitized Federal posters which date from before World War 

II through the 1990’s. 

• GPO renewed the partnership with the University of Illinois at Chicago for the 

Government Information Online: Ask a Librarian service. The participating depository 

libraries provide e-mail and chat reference service to the public for questions about 

Government information. 

 

Efficient and Effective Printing Procurement – GPO has continued to enhance existing 

contracting solutions and continues to explore new services that allow agency customers to work 

directly with GPO vendors. These programs generally handle small value or short turnaround 

requirements. Annual growth in these programs increases GPO efficiency and effectiveness in 

delivering services to agency clients. 

 

The GPOExpressSM Program allows Federal Government personnel to order from any of the 

approximate 1,900 FedEx OfficeSM print center locations, day or night. Agencies receive 

discounts on printing and finishing needs at any store location when they use the GPOExpressSM

card. GPOExpressSM program sales increased in fiscal 2011 by 4 percent from fiscal 2010. 

 

The GPO Online Paper Store allows Federal agencies to purchase 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 85 domestic distribution centers that quickly fill customer orders. Program sales 

increased in fiscal 2011 by 9 percent from fiscal 2010. 

During fiscal 2011 GPO surveyed 750 Federal agency customers with the purpose of identifying 

ways GPO can better serve them. This was the first customer survey since 2007. The results 

show that the majority of customers are satisfied with the service provided by GPO. Some of the 

key metrics measured by the survey: 

• 91 percent of customers are satisfied overall with the services they are receiving, 

• 89 percent of customers are likely to recommend GPO to a colleague, and 

• 81 percent of customers utilize the forms and publications available on GPO’s Web site. 

Modernizing Agency Information Systems – GPO launched the GPO Enterprise Program in 

2004 to replace unsustainable legacy systems. This major undertaking has been implementing 

modern application systems to support the Agency’s business units. The applications, known 

collectively as the Government Printing Office Business Information System (GBIS), have 

provided a platform of financial application software on which to build more efficient and 

sustainable processes. 

In fiscal 2011, a streamlined process for rebilling chargebacks from U.S. Department of the 

Treasury’s Intra-governmental Payment and Collection (IPAC) System was completed. The new 

process enables one-step billing correction and rebilling versus a three-step process. In addition, 

a pre-billing process for the Defense Logistics Agency (DLA), a major GPO customer, was 

developed to provide a transaction validation process before IPAC billing and collection 

processes are initiated. The pre-bill process greatly improved transaction efficiency at both GPO 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 12 

and DLA by providing the ability to resolve billing discrepancies quickly. 

Modernizing FDLP Legacy Systems – Progress continued in fiscal 2011 related to the 

migration of several key legacy FDLP systems. The migration and modernization of these 

systems are essential to GPO’s growth and efficiency in service to Federal depository libraries 

and the public. 

• Library Information System Transformation – At the end of fiscal 2011, the Library 

Information System Transformation project to migrate three separate legacy systems to 

one modern platform was underway. The project will utilize Oracle Enterprise 

Architecture applications to replace the Depository Distribution and Information 

System’s Item Lister functionality in the Library Services and Content Management 

business unit. A successful demonstration of preliminary development was conducted in 

2011. The project is on track to launch in 2012. 

• Disposition of Depository Materials – Progress continued in the development of a new 

tool to make the disposition of materials in Federal depository libraries more effective 

and efficient. Beta testing is targeted to begin in 2012. 

International Organization for Standardization (ISO) 9001:2008 Certification – In fiscal 

2011, GPO’s secure passport production facility in Washington DC and the second secure 

production site at the Stennis Space Center in Mississippi maintained their ISO 9001:2008 

certifications. ISO, the International Organization for Standardization, is the world’s largest 

developer of international standards used by governments, businesses, and information 

technology companies and agencies. Achieving this certification assures GPO’s customers that 

products and services are manufactured with business operating procedures that conform to 

globally recognized standards of excellence. Audited by an outside authorized ISO entity on an 

annual basis, the world class ISO 9001 certification guarantees customers that GPO, “says what 

it does, and does what it says.” 

Process Improvement Methodology – GPO 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. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 13 

Financial Position and Results for Fiscal Year 2011 

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, 2011. 

Consolidated Balance Sheets

The consolidated balance sheets present the combined amounts that GPO 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 $694.4 million as of September 30, 2011, from $655.5 million as 

of September 30, 2010. The increase of $38.9 million (5.9 percent) in total assets was primarily 

attributable to $46.7 million increase in fund balance with Treasury. The increase in fund 

balance with Treasury was due to faster collections and issue resolution through the billing 

system and an increase in deposit accounts. 

Net value of general property, plant and equipment decreased to $103.3 million as of September 

30, 2011 from $110.9 million as of September 30, 2010. The decrease of $7.6 million (6.9 

percent) during fiscal 2011 occurred primarily from the net effect of $13.6 million in capital 

acquisition (which increased the net value), offset by $21.5 million in depreciation expense 

recorded in fiscal 2011 (which reduced net value). Comparable figures in fiscal 2010 were a 

decrease of $4.2 million in net value, $15.7 million in capital acquisition, and $19.9 million in 

depreciation expense. 

GPO’s liabilities increased to $343.1 million as of September 30, 2011, from $322.8 million as 

of September 30, 2010. The increase of $20.3 million (6.3 percent) in total liabilities was 

primarily due to an increase in deferred revenues of approximately $15.9 million (12.4 percent) 

and in accounts payable and accrued expenses of $12.0 million (11.0 percent), offset by 

decreases of $7.3 million (9.7 percent) associated with the long term workers’ compensation (a 

$2.7 million decrease) and prior years’ voluntary separation incentive liabilities (a $4.6 million 

decrease). 

The increase in deferred revenues was primarily due to a $13.7 million increase in customer 

deposit accounts for printing and binding and a $2.7 million increase in advance billings, offset 

by a $500,000 decrease in customer advanced payments for subscriptions. The increase in 

accounts payable and accrued expenses of $12.0 million resulted from an increase in accounts 

payable to printing contractors of $17.8 million, offset by decreases in payables for professional 

services of $2.2 million, production materials of $1.8 million, and capital assets of $488,000. 

GPO’s net position increased to $351.3 million as of September 30, 2011 from $332.7 million as 

of September 30, 2010. The increase of $18.6 million (5.6 percent) in GPO’s net position was 

primarily the result of an increase in unexpended appropriations of $12.9 million and an increase 

in retained earnings of $5.6 million. Agency unexpended appropriations increased due to 

increases in unliquidated obligations in the Congressional Printing and Binding Appropriations 

of $14.4 million ($57.3 million at year-end 2011 from $42.9 million at year-end 2010), offset by 

decreases in unliquidated obligations in the Salaries and Expenses Appropriations of $500,000 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 14 

($28.6 million at year-end 2011 from $29.1 million at year-end 2010), and in unexpended 

Revolving Fund appropriations of $900,000 ($7.3 million at year-end 2011 from $8.2 million at 

year-end 2010). 

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 

$821.1 million in fiscal 2011 and $928.3 million in fiscal 2010. This is a decrease of about 

$107.2 million (11.5 percent). Printing and binding revenues decreased to $681.5 million in 

fiscal 2011 from $774.0 million in fiscal 2010, a decrease of $92.5 million (11.9 percent). 

Appropriation revenues decreased from $134.9 million in fiscal 2010 to $122.1 million in fiscal 

2011. This is a $12.8 million (9.5 percent) decrease. 

■ Printing and Binding Revenues

GPO 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. 

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, Customer Services, and Digital Media and Creative 

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 $140.4 million in fiscal 2011 compared with revenues of 

$148.1 million in fiscal 2010. This represents a decrease of $7.7 million (5.2 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 

2011 include approximately $79.2 million from the Congressional Printing and Binding (CP&B) 

Appropriations, compared to $89.1 million in fiscal 2010. 

Official Journals of Government generated revenues of $11.5 million in fiscal 2011 compared 

with revenues of $10.0 million in fiscal 2010. Revenues generated by providing administrative 

services to the U.S. Congress were $4.5 million in fiscal 2011 compared to $4.3 million in fiscal 

2010. Revenue from employees (printing specialists) detailed to House and Senate Committees 

increased by about $700,000 from $3.5 million in fiscal 2010 to $4.2 million in fiscal 2011. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 15 

Overall revenues for the Security and Intelligent Documents (SID) business unit increased to 

$209.4 million in fiscal 2011 from $202.5 million in fiscal 2010, or $6.9 million (3.4 percent). 

SID’s major product is the electronic Passport, which was introduced in fiscal 2007. GPO 

produced 13.2 million electronic Passports in both fiscal 2011 and fiscal 2010. The electronic 

Passport revenues increased from $196.4 million in fiscal 2010 to $202.1 million in fiscal 2011, 

an increase of $5.7 million (2.8 percent). The growth was attributable to greater production 

quantities of higher-priced tourist passports in fiscal 2011 over fiscal 2010. SID revenues in 

fiscal 2011 for the new Trusted Traveler and other secure credentials for the U.S. Department of 

Homeland Security increased from $4.9 million in 2010 to $7.3 million in 2011, an increase of 

$2.4 million. 

Customer Services revenues decreased $103.3 million (20.8 percent) from $496.1 million in 

fiscal 2010 to $392.8 million in fiscal 2011. Fiscal 2010 included approximately $51.1 million 

for the Decennial Census (2010). Fiscal 2011 revenue also decreased due to fewer customer 

orders from Department of Commerce, Defense Logistics Agency and the Department of 

Treasury. Revenues from the GPOExpressSM program increased $400,000, from $8.9 million in 

fiscal 2010 to $9.3 million in fiscal 2011. Revenue from the reimbursable postage program 

increased from $2.4 million in fiscal 2010 to $2.5 million in fiscal 2011. 

Digital Media and Creative Services revenues were $3.6 million in fiscal 2011 compared with 

$3.8 million in fiscal 2010, a decrease of $200,000 (5.3 percent). 

■ Appropriation Revenues

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, 2011 (Public Law 112-10, April 15, 2011) made a total 

of $135.1 million in annual appropriations available to the Agency for fiscal 2011. 

Revenues earned from appropriations provided to GPO totaled $122.1 million for fiscal 2011 and 

$134.9 million for fiscal 2010. The decrease in appropriation revenue of $12.8 million (9.5 

percent) was primarily due to decreases in appropriation revenues from the Revolving Fund, and 

CP&B. Revenue from appropriations to the Revolving Fund was $5.2 million in fiscal 2011, 

which included $1.7 million from fiscal 2011 appropriations and $3.5 million from fiscal 2010 

appropriations. In comparison, the Revolving Fund appropriation revenue was $11.8 million in 

fiscal 2010. Year over year, this revenue decreased $6.6 million (55.9 percent). The Revolving 

Fund appropriation 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 

2011 less Revolving Fund appropriations ($1.7 million) were available than in fiscal 2010 ($12.8 

million), so less reimbursable expenses qualified. The $5.2 million recognized as revenues in 

fiscal 2011 were related to qualifying expenses of $3.3 million for FDsys development and $1.9 

million for roof, elevator repairs and infrastructure improvements. 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, and infrastructure improvements; 

$6.1 million for FDsys development; and $548,000 for workforce retraining. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 16 

Revenues from the CP&B Appropriation were $79.2 million in fiscal 2011 compared to $89.1 

million in fiscal 2010, a decrease of $9.9 million (11.1 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 

decrease in revenues was mainly due to decreases in the Congressional Record products ($4.9 

million decrease), miscellaneous publications ($2.9 million decrease), and Public Document 

Envelopes ($2.2 million decrease). 

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. 

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

Congress. However, in years when 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 $37.6 million in fiscal 2011 and $34.1 million in 

fiscal 2010. 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. 

■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 $11.4 million for 

fiscal 2011 and $13.2 million for fiscal 2010, a decrease of about $1.8 million (13.6 percent). 

■ 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 $6.1 million for fiscal 2011 and $6.2 million for fiscal 2010. 

This represents a decrease of $100,000 (1.6 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 $818.2 

million for fiscal 2011 and $919.3 million for fiscal 2010, a decrease of $101.1 million (11.0 

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 Customer Services business unit, and decreases in personnel compensation expenses. A 

brief description of the major expense categories for the Agency follows. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 17 

■ Printing and Reproduction Expenses

GPO incurred expenses for printing and reproduction of $362.1 million for fiscal 2011 and 

$459.0 million for fiscal 2010. This represents a decrease in printing and reproduction expenses 

of $96.9 million (21.1 percent), which was attributable to decreased purchases of printing from 

private sector contractors by the Customer Services business unit. Expenses for purchased 

printing decreased to $361.2 million in fiscal 2011 from $458.6 million in fiscal 2010. 

■ Personnel Compensation and Benefits Expenses

GPO incurred expenses for personnel compensation and benefits of $237.0 million during fiscal 

2011 and $242.5 million during fiscal 2010. This represents a decrease in personnel 

compensation and benefit expenses of $5.5 million (2.3 percent). The decrease was mostly due 

to fewer employees on board. GPO had 2,197 employees at September 30, 2011, compared to 

2,300 employees at September 30, 2010. 

■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 GPO’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. GPO expenses for supplies and materials 

were $126.9 million in fiscal 2011 and $128.4 million in fiscal 2010. This represents a decrease 

of $1.5 million (1.2 percent). 

■ 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 $39.2 million for fiscal 2011 and $36.5 million for fiscal 

2010. This represents an increase of $2.7 million (7.4 percent). The increase was primarily due 

to a $3.1 million increase in bad debt expenses and a $1.5 million increase in IT equipment 

maintenance, offset by a $1.5 million decrease in professional services expenses and a $264,000 

decrease in the use of photocopiers. 

■ Depreciation and Amortization Expenses

Total depreciation and amortization expense for fiscal 2011 was $21.5 million compared with 

$19.9 million in fiscal 2010. The increase of $1.6 million in fiscal 2011 was largely the result of 

amortizing FDsys, placed into service during fiscal 2010, and depreciated for all of fiscal 2011, 

and amortizing new FDsys software modules placed into service in fiscal 2011. 

■ 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 $16.3 million for fiscal 2011 and $16.6 million for fiscal 2010. This represents a 

decrease of $300,000 (1.8 percent). The decrease was due primarily to a $320,000 decrease in 

telecommunication service expenses. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 18 

■ 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 $10.1 million for fiscal 2011 and $12.4 million for fiscal 2010. This represents a 

decrease of $2.3 million (18.5 percent). The decrease was primarily due to a decrease in 

employee travel of $935,000, and a decrease in other mailing expenses of $1.3 million. 

■ 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 $5.1 million in fiscal 2011 compared to $4.0 million in fiscal 2010, an 

increase of $1.1 million (27.5 percent). The increase was the result of the increased cost of 

producing publications for sale. 

Changes in Retained Earnings

GPO’s retained earnings increased by $5.6 million to $165.3 million at the end of fiscal 2011, 

compared to $159.7 million at the end of fiscal 2010. The increase resulted from GPO’s income 

for fiscal 2011. 

Consolidated Statements of Cash Flows

The consolidated statements of cash flows present GPO’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 $46.7 million during fiscal 2011 compared with 

an increase of $84.0 million in fiscal 2010. The increase in cash during fiscal 2011 was 

primarily the result of the following. 

 In fiscal 2011, GPO generated $46.4 million from operations. This cash inflow was 

mainly attributable to an increase in deferred revenue, and accounts payable and accrued 

expenses. 

 Cash invested in capital assets was $12.7 million in fiscal 2011. In fiscal 2011, 

investments were made in FDsys software development and a large passport press. 

 Financing activities provided a $13.0 million cash inflow in fiscal 2011. In fiscal 2011, 

GPO’s unexpended appropriations increased by $13.0, due primarily to an increase in 

the unexpended year-end balance in the CP&B Appropriation of $57.3 million in fiscal 

2011 versus $42.9 million in fiscal 2010. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 19 

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 96.6 percent for fiscal 2011 and 97.9 percent for fiscal 2010. The 

Agency’s goal of 95 percent or better was achieved for fiscal 2011. The goal will remain the 

same for fiscal 2012. 

On-Time Delivery and Quality Acceptance of Procured Printing

Customer Services contracted with commercial businesses to produce and ship approximately 

84,000 orders for GPO customers in fiscal 2011. For fiscal 2011, 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. Customer Services met both of these goals for fiscal 2011, with 97.3 percent of 

procured printing orders delivered on time and a quality acceptance rate of 99.9 percent. In 

comparison, GPO contractors shipped approximately 95,100 orders in fiscal 2010, with 96.8 

percent of the procured printing orders delivered on time and a quality acceptance rate of 99.9 

percent. The two goals will remain the same for fiscal 2012. 

Financial Performance Measures

Cash Management

Payment Performance – In fiscal 2011, 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 $4.1 million on purchased 

printing expense of $361.2 million. In comparison, GPO earned $4.4 million in discounts on 

$458.6 million in printing expenses last year. The average discount rate earned was 1.14 percent 

for fiscal 2011 and 0.96 percent for fiscal 2010. The average discount rate earned for fiscal 2011 

was short of the goal of 1.4 percent due to fewer overall discounts being offered by printing 

contractors. The goal for fiscal 2012 will be 1.2 percent, which allows for a nominal rate of 

discounts lost ($200,000), at fiscal 2011 volume. 

Lost prompt payment discounts decreased to $532,000 in fiscal 2011 from $994,000 in fiscal 

2010. As a result, the percentage of discounts lost to discounts offered was 12.0 percent, as 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 20 

compared to 18.4 percent in 2010. GPO did not meet its goal in fiscal 2011 of 2.5 percent. GPO 

will strive to achieve 0.05 percent of discounts lost to total printing expense in fiscal 2012. 

Electronic Payments – Electronic Funds Transfer (EFT) is the most secure, efficient, and 

economical method of making payments to GPO contractors, employees, and other non-Federal 

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 2011, 72.9 percent of all payments were made by 

EFT. In comparison, about 69.7 percent of all payments were made by EFT in fiscal 2010. 

While the Agency's EFT payments did not meet the goal of 90 percent for fiscal 2011, GPO will 

work with vendors to increase EFT participation rates and strive to achieve that goal for fiscal 

2012. 

Debt Management

Federal Receivables – GPO billed customers about $810.3 million for printing and binding 

services, including congressional services funded by appropriations, during fiscal 2011. The 

U.S. Department of the Treasury’s Intra-governmental Payment and Collection (IPAC) System 

was used to collect about $571.1 million or 70.5 percent of this debt from customers. 

Additionally, about $92.5 million or 11.4 percent of this debt, was collected from funds held in 

customer Printing and Binding Deposit Accounts maintained by GPO. Furthermore, $17.1 

million, or 2.1 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 

$55.6 million at the end of fiscal 2011, compared with $57.8 million at the end of fiscal 2010. 

This represents a decrease in billed accounts receivable of approximately $2.2 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 non-payment 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 $20.1 million at the end of fiscal 2011 and $26.4 million at the 

end of fiscal 2010. 

The U.S. Department of Defense (DoD) is GPO’s fourth largest customer and the largest debtor. 

Exclusive of IPAC chargebacks, DoD owed GPO about $11.4 million at September 30, 2011, of 

which $4.4 million, or 38.6 percent, was past due in payment (i.e., over 30 days old). DoD owed 

$775,000 for invoices between 31 to 60 days old, $400,000 between 61 to 90 days old, and $3.2 

million over 90 days old. DoD’s indebtedness to GPO of $3.2 million represents 9.6 percent of 

GPO’s total billed accounts receivables of $33.3 million, over 90 days old, at year-end. At 

September 30, 2010, DoD owed $7.9 million to GPO. 

________________________

1. Source: U.S. Department of the Treasury, http://www.fms.treas.gov/eft.index.html
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 21 

At the end of the year, GPO maintained 1,195 Printing and Binding deposit accounts valued at 

$132.6 million. Additionally, GPO held $2.7 million in customer deposit accounts for the 

Publication and Information Sales Program. Combined, these customer deposit accounts totaled 

about $135.3 million as of September 30, 2011. At September 30, 2010, GPO maintained 

$121.6 million in these two customer deposit accounts ($118.6 million and $3.0 million, 

respectively). The $13.7 million increase is 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 

2011 totaled $17.1 million, for about 21,000 printing jobs. In comparison, credit card receipts 

totaled $17.2 million, for approximately 20,300 printing jobs, in fiscal 2010. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 22 

Possible Future Effects of Existing Events and Conditions 

Several events and conditions may materially impact GPO’s programs and operations in the 

future. A synopsis of each of these conditions follows. 

Federal Appropriation Reductions – Printing and duplicating are considered a discretionary 

cost for Federal customers, generally. The potential for possible budget reductions and 

restrictions in the future may have an adverse effect on the availability of funds for Federal 

printing and duplicating provided by GPO. 

Decline in Demand for 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 downward trend in customer demand for 

printed documents, will continue to place downward pressure on in-plant printing revenues and 

publication sales. 

GPO’s customer base of Federal agencies will continue to need printed copies, albeit reduced 

quantities, to accomplish their respective missions. GPO is working with agencies to educate 

and assist them in effectively accomplishing the communications aspect of their missions. In 

fiscal 2011, nearly 500 customers attended general seminars on GPO’s products and services, 

while about 150 customers attended tailored, customer agency specific presentations on GPO. 

GPO plans to continue these outreach programs for Federal agencies to adapt to the future of 

Federal Government communications. 

Some Plant Operations core ink-on-paper products, such as the Congressional Record and 

Federal Register, have shorter production runs than in past years because these products are now 

available online. Production runs are expected to further decline as customers opt out of paper 

copies for digital access. 

To offset potential decreases in revenue from lessening demand for printed products, Plant 

Operations has committed to capitalizing on efficiencies in operations, implementing improved 

printing technologies, and utilizing digital print methods to satisfy requirements unique to 

Federal customers in order to provide best value. 

The Publication and Information Sales Program business unit is still heavily dependent on hardcopy sales for funding its operations. However, GPO has recently entered into several e-book 

sales partnerships, as more and more people turn toward electronic publications. The Publication 

and Information Sales Program business unit had a negative contribution margin in fiscal 2011, 

but had positive contribution margins in the four preceding years. This business unit will 

continue to identify market segments for the program’s vast offerings, employ focused 

advertising, and provide world-class customer service to a niche customer base. These efforts 

have been effective in stabilizing revenue. However, operational efficiencies will need to 

improve in order to achieve positive operating margins in the future. 

Demand for Security and Intelligent Documents – The continued production of security and 

intelligent documents, primarily the electronic Passport, and the development of new security 

documents, such as Federal identification cards, will be vital to GPO’s future success. GPO 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 23 

produced 13.2 million electronic Passports in both fiscal years 2011 and 2010. Demand for 

electronic Passports is estimated at 10 million in fiscal 2012. This volume reduction is expected 

to result in decreased GPO revenue in fiscal 2012. 

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. 

Increasing Cost of Operations – U.S.C. Title 44 requires that GPO recover direct labor, 

direct material, and overhead costs in the rates and prices charged for goods and services. 

During fiscal 2011, Agency management recognized that overhead costs had increased greatly 

over the last several years and had to be reduced. Beginning in the second quarter of fiscal 2011, 

organizations, staffing, and purchases for internal needs were subjected to increased scrutiny by 

managers at all Agency levels, with success. GPO’s 2011 budget for agency overhead 

operations was approximately $140 million. Actual overhead expenses for fiscal 2011 were 

approximately $129.5 million. In fiscal 2012, continued scrutiny will yield further savings. In 

addition, the Voluntary Employee Separation Program and Voluntary Early Retirement Program 

will also reduce the cost of overhead operations. 

Rapid Changes in Technology – GPO has successfully adapted to changes in printing and 

information technology over its 150-year history. In the last few years, the rate of change in 

technology has increased dramatically. Faced with a forecast of decreasing revenues and limited 

funds to invest in infrastructure improvements in fiscal 2012 and possibly beyond, GPO 

established an internal committee with the responsibilities of identifying strategic capital 

investments and melding the opportunities into an overall short- to long-term investment plan for 

the Public Printer’s endorsement. The committee places emphasis on adapting GPO to satisfy 

current and future Congressional and other key customer needs and GPO sustainability, 

including improving efficiency and economy. 

IPAC Chargebacks – GPO formed an IPAC chargeback resolution team in 2011 to resolve a 

problem that was threatening the financial health of the Revolving Fund. At one point during 

fiscal 2011, the IPAC chargeback receivable balance was $28.3 million. This receivable 

represents the value of jobs GPO delivered, billed, and collected from customer agencies via 

Treasury’s automated IPAC system, but were, for a variety of reasons, rejected. In six months of 

operation, the team successfully reduced the balance of chargeback receivables to $20.1 million 

(at September 30, 2011). The team will continue its work in 2012. 

Lease of Available Building Space – As personnel levels and the use of more efficient 

technologies have reduced the space requirements for GPO’s operations, GPO has been making 

space available for other legislative branch entities on a reimbursable basis. In fiscal 2011, GPO 

continued to make space available to elements of the Architect of the Capitol, the U.S. Capitol 

Police, and the Senate Sergeant at Arms under space-sharing agreements approved by the Joint 

Committee on Printing. In House Report 112-148, accompanying H.R. 2551, the Legislative 

Branch Appropriations Act for FY 2012 (July 15, 2011), the House Appropriations Committee 

encouraged GPO “to explore the possibility of a lease agreement” for other available space in 

GPO’s buildings to generate additional revenues. GPO will continue to compact operations to 

free addition space for leasing. 
Section I: Management’s Discussion and Analysis 

U.S. Government Printing Office Financial Year In Review – FY 2011 24 

Fiscal Year 2012 Financial Projections

On July 1, 1953, Congress established the GPO Revolving Fund to finance GPO’s operations on 

a self-sustaining basis. The Agency’s overall long-term financial objective has been to earn 

revenues through a system of rates, prices, and surcharges used to bill customers for goods 

delivered and services performed that are sufficient to recover all costs, including depreciation 

and overhead, in accordance with Section 309 of Title 44 U.S.C. The receipts and disbursements 

from the Agency’s continuing cycle of business-type operations are recorded in the GPO 

Revolving Fund. 

In fiscal 2011, GPO realized a net gain of $2.9 million, before other operating expenses. 

Overall, including the annual long-term workers’ compensation adjustment which is excluded 

from GPO’s rate-setting process, GPO realized a net gain of $5.6 million. Due to forecasts for 

decreased product demand, GPO initially projected an estimated net loss of about $23.0 

million for fiscal 2012, before other operating expenses. As a result of this estimated net loss, 

management requested authority, in fiscal 2011, for a Voluntary Separation Incentive Payment 

(VSIP) and for a Voluntary Early Retirement Authority (VERA) to occur in the first quarter of 

fiscal 2012. These workforce reduction actions are estimated to reduce personnel compensation 

and benefits by about $26.0 million in fiscal 2012. This should result in a planned net income of 

approximately $3.0 million, before other operating expenses, in 2012. Management also plans to 

continue with the strict cost containment program implemented during fiscal 2011 in fiscal 

2012. Annual cost savings from the workforce reduction actions after fiscal 2012 are projected 

to be approximately $34.7 million. 

GPO’s continued overall transformation, customer demand for secure and intelligent documents, 

and other management initiatives underway are essential to maintaining operations on sound 

footing, both organizationally and financially. The Agency expects fiscal 2012 to be a difficult 

year, but has made provisions in its operating plans to maintain financial stability. Achieving 

adequate financial results will help ensure that the GPO Revolving Fund remains financially selfsustaining as Congress intended and that GPO can continue Keeping America Informed, as it has 

for 150 years. 
Section II: Inspector General’s Report 

U.S. Government Printing Office Financial Year In Review – FY 2011 25 

SECTION II 

INSPECTOR 

GENERAL’S 

REPORT 
M ORA"-:JUM 

.~ • U.S. GOVE.RNMENT PRINTING OFFICE 

~:·=- --

Date 

December 21, 2011 

To 

Public Printer 

From 

Inspector General 

Subject 

FY 20111ndependent Auditors' Report 

Report Number 12-02 

Attached is the Independent Auditors' Report on the U.S. Government 

Printing Office's (GPO) FY 2011 financial statements. We contracted with the 

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

the financial statements of the GPO as of and for the years ended September 

30, 2011 and 2010. The contract required that the audit be conducted in 

accordance with generally accepted government auditing standards 

(GAGAS). 

KPMG's opinion on GPO's financial statements is unqualified. KPMG's 

consideration of internal control over financial reporting resulted in two 

significant deficiencies, which were not considered to be material 

weaknesses. These control deficiencies were over processing and 

maintenance of human resource and payroll information and information 

technology controls. 

KPMG is responsible for the attached auditors' report and the conclusions 

expressed in the report. However, in connection with the contract, we 

reviewed KPMG's report and related documentation and inquired of its 

representatives. Our review, as differentiated from an audit in accordance 

with GAGAS, was not intended to enable us to express, and we do not 

express, an opinion on GPO's financial statements; or conclusions about the 

effectiveness of internal control; or on GPO's financial management systems; 

or conclusions on GPO's compliance with laws and regulations. Our review 

disclosed no instances where KPMG did not comply, in all material respects, 

with GAGAS audit requirements. 

Keeping A m e ri ca In fo rm ed I www.gpo.gov/oig 

GPO Fotm 731A 

IR9·07l 
Public Printer 

Report 12-02 

December 21, 2011 

Page 2 of 2 

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

hesitate to contact me at (202) 512-0039. 

WJa '~ Michael A. Raponi 

Inspector General 

Attachment 

cc: 

Deputy Public Printer 

Chief of Staff 

General Counsel 

Chief Financial Officer 

Chief Information Officer 
Section III: Independent Auditor’s Report 

U.S. Government Printing Office Financial Year In Review – FY 2011 28 

SECTION III 

INDEPENDENT 

AUDITORS’ 

REPORT 
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, 2011 and 2010, 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 2011 

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, 2011 and 2010, 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 Processing and Maintenance of Human Resource and Payroll Information

B. 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 herein 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, 2011 and 2010 and the related consolidated statements of revenues, expenses, 

and changes in retained earnings and cash flows for the years then ended.

KPMG LLP 

2001 M Street, NW 

Washington, DC 20036-3389 

KPMG LLP is a Delaware limited liability partnership, 

the U.S. member firm of KPMG International Cooperative 

(“KPMG International”), a Swiss entity. 
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, 2011 

and 2010, 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 2011 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. 

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 2011 and 2010 

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 

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 2011 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 2011 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 16, 2011
Exhibit I 

Fiscal Year 2011 Significant Deficiencies

A. Controls over Processing and Maintenance of Human Resource and Payroll 

Information

We noted the following areas where the United States Government Printing Office (GPO) needs 

to improve its internal controls over processing and maintenance of human resource and payroll 

information: 

a. We noted that 35 of 120 employees tested during the year were nominated and approved 

for a goal sharing payment. Of the 35, we noted 1 employee never received the goal 

sharing award of $100 even though the employee was approved and included on the list 

of approved awardees that was sent to the National Finance Center (NFC), GPO’s 

payroll/personnel service provider, for payments.

b. We noted 24 of 120 balances tested where the annual leave balance recorded in Web Time & 

Attendance (WebTA) did not agree to the annual leave balance recorded by the NFC, which 

is reflected on the employee’s Statement of Earning and Leave. WebTA is GPO’s web-based

time and attendance program which employees use to enter and keep track of their hours 

worked and leave used. GPO management detected and corrected the errors during the year 

for 21 of the 24 exceptions. However, for the remaining 3 employees tested, 2 had balances 

that were not detected or corrected by management as of September 30, 2011, resulting in an 

incorrect leave balance recorded at year end, and 1 employee separated from the agency in 

July 2010 with the incorrect leave balance.

c. We noted for 2 of 72 personnel files reviewed that the GPO payment plan reflected on 

the Standard Form (SF)-50, Notification of Personnel Action, did not agree to the GPO 

payment plan reflected on the SF-52, Request/or Personnel Action, maintained in the 

employee's personnel file. However, we noted that in each of these instances the 

employee’s rates of pay reflected on the SF-50 and SF-52 were in agreement with the 

amount being processed by NFC for the pay period tested. 

d. Of the 120 WebTA sheets reviewed, we identified 8 instances where the WebTA sheet 

was certified by a person not listed on the list of approved supervisors. Additionally, no 

evidence was made available to verify that the individuals who certified the timesheets 

had been delegated that authority by an approved supervisor or that the supervisor had 

reviewed the timesheet in the following period for reasonableness. 

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.
Exhibit I (continued)

Fiscal Year 2011 Significant Deficiencies

• 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. 

• Transactions should be promptly recorded to maintain their relevance and value to 

management in controlling operations and making decisions. This applies to the entire 

process or life cycle of a transaction or event from the initiation and authorization through its 

final classification in summary records. In addition, control activities help to ensure that all 

transactions are completely and accurately recorded.

The causes of the conditions above were deficiencies in the operating effectiveness of 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. Perform a review of all information uploaded to NFC to verify that the upload was successful 

and accurate.

2. Develop and implement Standard Operating Procedures detailing how to correctly enter leave 

adjustments in the WebTA system and the NFC mainframe.

3. Develop and implement policies and procedures for payroll personnel to reconcile annual 

leave balances per WebTA to NFC to ensure that leave hours are properly accrued and that 

the annual leave balance is correct at the end of each pay period.

4. Improve communication with NFC to ensure that: a) the GPO payment plan information 

reflected on the SF·50's maintained in employee personnel files are accurate; and b) 

employee pay plans provided to NFC agrees with employee actions and their personnel 

file.

5. Develop and implement policies and procedures over the maintenance of authorized and 

approved Web Time & Attendance certifiers. Policies and procedures should be 

established to prevent inappropriate delegations of certifying authority. In addition, all 

approved delegates should be properly trained and able to determine the reasonableness 

of hours and/or expenses which they are certifying. 

Management Response:

Management concurs with these recommendations and has already worked to implement a 

corrective action plan.
Exhibit I (continued)

Fiscal Year 2011 Significant Deficiencies

B. Information Technology General and Application Controls

During fiscal year 2011, deficiencies in the design and/or operations of GPO’s information 

technology (IT) general and application controls were noted in the areas of 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:

1. Security Management

GPO made progress in fiscal year 2011 to formalize its established information security 

objectives and high level policy. However, we noted that although GPO had previously 

completed the security assessment and authorization process for both the GPO Business 

Information System (GBIS) and the GPO General Support System (GSS), GBIS operated without 

a current security authorization since May 2010 when the Interim Authorization to Operate 

(IATO) for GBIS expired. Also, the following exceptions were observed during our test work:

a. For both GSS and GBIS, System Security Plans and Risk Assessment Reports did not 

include IT security controls that were equivalent to the high impact control baseline from 

the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-

53, Recommended Security Controls for Federal Information Systems and Organizations. 

b. For GBIS and the GSS, security assessment testing did not include a population of IT 

security controls equivalent to the high impact control baseline from NIST SP 800-53.

 

Operating an application in production without a current security authorization increases the risk 

that since the previous security assessment and authorization, the current state of the system, its 

controls or the environment it operates in will have changed to the point that the system security 

plan no longer describes the system’s current controls or plans necessary controls, and the 

security assessment no longer considers the full range of significant risks to which the system is 

subject.

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. 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.
Exhibit I (continued)

Fiscal Year 2011 Significant Deficiencies

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

i. Of a sample selection of 15 separated GPO personnel, 3 retained access to GPO’s 

Active Directory network. 

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

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

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. There is no process in place to document a periodic review of GPO GSS users.

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

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. Not timely removing 

accounts for separated users increases the risk that unauthorized users will gain access to 

information systems.

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

longer require access will retain access.

With no audit log reviews performed 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. 

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. Although Finance Office segregation of duties 

procedures document conflicting activities within GBIS, the procedures are not sufficiently 

detailed to identify which roles within GBIS are considered to be conflicting. Not identifying 

conflicting roles within GBIS may lead to GBIS users having conflicting access to this key 

financial system, which could result in a user having end-to-end control over a transaction such 

that they could both initiate and approve an erroneous transaction.

4. Configuration Management

GPO does not centrally manage the security patching of Microsoft Windows desktops and 

laptops. Desktop and laptop computers without current security patches may not be properly 
Exhibit I (continued)

Fiscal Year 2011 Significant Deficiencies

safeguarded from security vulnerabilities. As a result, vulnerabilities may be exploited and data 

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

GPO Information Technology and Systems (IT&S) management has implemented a process for 

centrally managing patching for Microsoft Windows servers using Microsoft Windows Server 

Update Services. GPO’s first priority was to implement the patch management process for these

servers. However, GPO has not yet created standard operating procedures for desktop/laptop 

patch management and has not yet expanded its centralized Microsoft Windows patch 

management process to include desktops and laptops. 

. 

5. Contingency Planning

The contingency plan for GPO’s GSS has not been finalized, approved or tested, and is still in 

draft form. GPO may not be able to successfully recover critical applications and systems to 

maintain business functions during the event of a service disruption, without an effective 

contingency plan and testing process in place. Without documented contingency plan test results, 

management may be unaware of any weaknesses in disaster recovery capabilities that could have 

been revealed by disaster recovery testing. 

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. 

NIST SP 800-53, Revision 3, Recommended Security Controls for Federal Information Systems

and Organizations, 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 NIST 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 SP 800-53, Revision 3, Recommended Security Controls for Federal Information Systems

and Organizations, provides guidance for managing access controls and directs organizations to:

• 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;

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

and

• Review and analyze information system audit records for indications of inappropriate or 

unusual activity and report findings to designated organizational officials. 
Exhibit I (continued)

Fiscal Year 2011 Significant Deficiencies

NIST SP 800-53, Revision 3, Recommended Security Controls for Federal Information Systems

and Organizations, states that organizations should remediate vulnerabilities by maintaining a 

process to install security patches.

In addition, NIST SP 800-53, Revision 3, Recommended Security Controls for Federal 

Information Systems and Organizations, 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 ensure that:

a. GPO documents system security plans and risk assessments in detail sufficient to plan 

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

equivalent to the NIST SP 800-53 high-impact baseline controls.

b. Security assessment testing used to support decisions to authorize systems for operation 

covers all planned system security controls at the point of initial authorization and at least 

once every three years thereafter, and includes descriptions of the test procedures 

performed and the results obtained.

c. The GBIS application is re-authorized to operate. 

2. Access Controls

We recommend that GPO management ensure that: 

a. The sign out process for removing system access from separated personnel is evaluated, 

revised as necessary, and formally documented to help ensure that system access is 

removed at the time personnel leave GPO.

b. A periodic review of users with access to the GPO GSS is implemented.

c. Procedures for periodically reviewing and recertifying access to GPO systems, including 

GBIS, are evaluated, revised as necessary, and formally documented to help ensure that 

access is reviewed on a periodic basis and that the review is documented. 

d. GPO designs and implements a risk-based approach to reviewing application audit log 

events for GBIS.
Exhibit I (continued)

Fiscal Year 2011 Significant Deficiencies

3. Segregation of Duties

We recommend that GPO management revise procedures for maintaining segregation of duties 

within GBIS so that the procedures include sufficient detail to identify conflicting roles within 

GBIS. 

4. Configuration Management

We recommend that GPO management ensure that: 

a. IT&S 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.

b. IT&S documents standard operating procedures for desktop and laptop patch 

management.

5. Contingency Planning

We recommend that GPO management: 

a. Finalize and approve the contingency plan for GPO’s GSS. 

b. Periodically perform contingency plan testing, document the test plans and results, and 

take appropriate corrective action based on the results, if necessary, for GPO’s GSS. 

Management Response:

Management concurs with these recommendations and is in the process of implementing a 

corrective action plan.
Exhibit II 

Status of Prior Year Findings

. 

Prior Year 

Condition

Prior Year

Recommendation

Status as of 

September 30, 

2011 

 Significant Deficiencies

A. Controls over 

Preparation, 

Review, and 

Approval of 

Special Journal 

Entries

We recommended that GPO strengthen its internal control 

over the preparation, review and approval of special journal 

entries by :

1. Requiring that GPO personnel responsible for preparing an 

entry (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.

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.

Closed

B. Controls over 

Processing and 

Maintenance of 

Human 

Resource Data

We recommended 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 GPO payment 

plan information reflected on the SF-50s 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 SF-52 

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.

Significant 

Deficiency 

This finding has 

been partially 

repeated in FY 

2011; see 

Exhibit I.
Exhibit II 

Status of Prior Year Findings

. 

Prior Year 

Condition

Prior Year

Recommendation

Status as of 

September 30, 

2011 

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.

C. Information Technology General and Application Controls

1. Security 

Management

We recommended that GPO management document its 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 recommended the 

following: 

a. GPO management document 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 recommended that when creating a security 

authorization package, GPO document procedures 

performed and results obtained for security assessment 

testing of all planned IT security controls. Additionally, 

we recommended that GPO update 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 document and implement procedures to 

identify all personnel with significant information security 

responsibilities and ensure that they receive periodic rolebased IT security training.

c. GPO request that Oracle amend the scope of the SAS-70 

report for Oracle On-Demand to include the Federal Zone 

where the servers for GBIS are hosted. 

Significant 

Deficiency

This finding has 

been partially 

repeated in FY 

2011; see 

Exhibit I.

2. Access Controls We recommended that GPO management:

a. Evaluate, revise as necessary, and formally document 

procedures for approving access to the GSS and GBIS to 

help ensure that approvals are documented prior to 

granting users access.

Significant 

Deficiency

This finding has 

been partially 

repeated in FY 

2011; see 
Exhibit II 

Status of Prior Year Findings

. 

b. Ensure 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.

c. Evaluate, revise as necessary and formally document 

procedures for periodically reviewing and recertifying 

access to GPO systems to help ensure that access that 

users do not need is removed timely.

d. Restrict 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.

e. Enhance 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. 

f. Design and implement a risk-based approach to reviewing 

application audit log events for GBIS. 

g. Consistently perform and document 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. 

Exhibit I.

3. Segregation of 

Duties We recommended that GPO management document the 

permissions used within GBIS, identify which permissions 

conflict, and ensure that conflicting permissions are not 

assigned to the same user.

Significant 

Deficiency

This finding has 

been repeated in 

FY 2011; see 

Exhibit I.

4. Configuration 

Management

We recommended that GPO management :

a. Take steps to ensure that emergency changes to GBIS are 

approved and are tested as soon as possible after 

implementation into production.

b. Complete 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 recommended that 

GPO document its standard operating procedures for patch 

Significant 

Deficiency

This finding has 

been partially 

repeated in FY 

2011; see 

Exhibit I.
Exhibit II 

Status of Prior Year Findings

. 

management.

5. Contingency 

Planning We recommended that management: 

a. Finalize and approve the contingency plan for GPO 

General Support System Number 1. 

b. Periodically perform contingency plan testing and 

document the test plans and the results for GPO General 

Support System Number 1.

Significant 

Deficiency

This finding has 

been repeated in 

FY 2011; see 

Exhibit I.
Section IV: Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 43 

SECTION IV 

CONSOLIDATED 

FINANCIAL 

STATEMENTS
Section IV: Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 44 

U.S. Government Printing Office 

Consolidated Balance Sheets 

As of September 30, 2011 and 2010 

(Dollars in Thousands) 

2011 2010

ASSETS 

 Current assets

 Fund balance with Treasury (Note 2) 386,854 $ 340,165 $ 

 Accounts receivable, net (Note 3) 172,271 171,677

 Inventory, net (Note 4) 31,919 32,570

 Prepaid expenses (Note 5) 99 244

 Total current assets 591,143 544,656

 General property, plant and equipment, net (Note 6) 103,261 110,891

 Total assets $ 655,547 694,404 $ 

LIABILITIES AND NET POSITION

 Current liabilities

 Accounts payable and accrued expenses (Note 7) 120,957 $ 108,942 $ 

 Deferred revenues (Note 8) 143,144 127,286

 Accrued annual leave 10,843 11,153

 Total current liabilities 274,944 247,381

 Other liabilities

 Workers' compensation liability (Note 9) 68,144 70,884

 Voluntary separation incentive program - 4,562

 Total liabilities 343,088 322,827

 Commitments and contingencies (Notes 10 and 11)

 Net position (Note 12)

 Cumulative results of operations:

 Retained earnings 165,288 159,651

 Invested capital 92,879 92,879

 Unexpended appropriations 93,149 80,190

 Total net position 351,316 332,720

 Total liabilities and net position 694,404 $ 655,547 $ 

The accompanying notes are an integral part of these financial statements. 
Section IV: Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 45 

U.S. Government Printing Office 

Consolidated Statements of Revenues, Expenses, 

and Changes in Retained Earnings 

For the Fiscal Years Ended September 30, 2011 and 2010 

(Dollars in Thousands) 

2011 2010

OPERATING REVENUES

 Printing and binding 681,510 $ 774,031 $ 

 Appropriations 122,089 134,894 

 Sales of publications 11,366 13,244 

 Agency distributions 6,144 6,169 

 Total operating revenues 928,338 821,109 

OPERATING EXPENSES

 Printing and reproduction 362,108 459,027 

 Personnel compensation and benefits 236,960 242,477 

 Supplies and materials 126,887 128,377 

 Other services 39,223 36,497 

 Depreciation and amortization 21,520 19,913 

 Rents, communications, and utilities 16,274 16,610 

 Travel, transportation, and postage 10,098 12,393 

 Publications sold 5,142 4,046 

 Subtotal 919,340 818,212 

 Income before other expenses 8,998 2,897 

OTHER EXPENSES

 Decrease in workers' compensation liability (Note 9) 2,740 290 

 Net Income 5,637 9,288 

 Retained Earnings, beginning of year 159,651 150,363 

 Retained Earnings, end of year $ 159,651 165,288 $ 

The accompanying notes are an integral part of these financial statements.
Section IV: Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 46 

U.S. Government Printing Office 

Consolidated Statements of Cash Flows 

For the Fiscal Years Ended September 30, 2011 and 2010 

(Dollars in Thousands) 

2011 2010

CASH FLOWS FROM OPERATING ACTIVITIES 

 Net income $ 9,288 5,637 $ 

 Adjustments to reconcile net income to net cash 

 provided by operating activities:

 Depreciation and amortization 19,913 21,520 

 Gain on disposal of general property, plant and equipment (2) (21) 

 Changes in assets and liabilities:

 (Increase) decrease in assets-

 Accounts receivable 38,887 (594) 

 Inventory (3,739) 651 

 Prepaid expenses 1,579 145 

 Increase (decrease) in liabilities-

 Accounts payable, accrued expenses, and other (8,409) 6,251 

 Deferred revenues 28,652 15,858 

 Accrued annual leave 137 (310) 

 Workers' compensation liabilities (290) (2,740) 

 Total adjustments 40,760 76,728 

 Net cash provided by operating activities 46,397 86,016 

CASH FLOWS FROM INVESTING ACTIVITIES

 Capital purchases (14,449) (12,688) 

 Proceeds from sale of general property, plant and equipment 2 21 

 Net cash used in investing activities (12,667) (14,447) 

CASH FLOWS FROM FINANCING ACTIVITIES

 Increase in unexpended appropriations 12,470 12,959 

 Net cash provided by financing activities 12,959 12,470 

 Net increase in fund balance with Treasury 46,689 84,039 

Fund balance with Treasury, beginning of year 256,126 340,165 

Fund balance with Treasury, end of year 386,854 $ 340,165 $ 

The accompanying notes are an integral part of these financial statements.
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 47 

NOTES TO 

CONSOLIDATED 

FINANCIAL 

 STATEMENTS 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 48 

U.S. Government Printing Office 

Notes to Consolidated Financial Statements 

September 30, 2011 and 2010

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.). 

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 Title 44 U.S.C. 

The Joint Committee on Printing (JCP) has primary responsibility for congressional oversight of 

GPO’s programs and operations. The JCP is composed 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. GPO’s 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 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 49 

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 business-type 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. 

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 prices of Federal Government publications and subscriptions sold through this 

program are 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); 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. 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 50 

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 Title 

44 U.S.C. 

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 supplies and materials are shown net of a provision for obsolescence. 

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. The allowance for obsolescence is determined based on historical usage of paper, 

supplies, and materials. 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. 

F. Property, Plant, and Equipment 

Property, plant and equipment purchases are generally valued at their acquisition cost. GPO 

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 following table reflects the standard estimated useful life of each major depreciable asset 

category. Exceptions to these standard estimated asset lives are authorized when justified. 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 51 

Asset Category 

Estimated 

Useful Life (Years) 

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 

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. GPO 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 Employee Compensation Act (FECA) provides income and medical cost protection 

to covered Federal civilian employees injured on the job, employees who have incurred a workrelated occupational disease and beneficiaries of employees whose death is attributable to a jobrelated injury or occupational disease. Claims incurred for benefits for GPO's employees under 

FECA are administered by U.S. Department of Labor (DOL) and are ultimately paid by GPO. 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 52 

The FECA liability consists of two components. The first component, the accrued FECA 

liability, is based on actual claims paid by DOL but not reimbursed by GPO. GPO reimburses 

DOL for the amount of actual claims. As a result, GPO recognizes a current liability for actual 

claims paid by DOL. 

The second component, the actuarial FECA liability, is the estimated liability for future benefit 

payments. These future estimates were generated from an application of actuarial procedures 

developed to estimate the liability for future FECA benefits. The actuarial liability for future 

workers’ compensation benefits includes the expected liability for death, disability, medical and 

miscellaneous costs for approved compensation cases, plus a component for incurred but not 

reported claims. The liability is determined using a method that utilizes historical benefit 

payment patterns related to a specific incurred period to predict the ultimate payments related to 

that period. These annual benefit payments have been discounted to present value using the 

Office of Management and Budget’s (OMB) economic assumptions for 10-year Treasury notes 

and bonds, which resulted in discount rates as of September 30, 2011 and 2010, of 3.535 percent 

and 3.653 percent in year one and 4.025 percent and 4.300 percent thereafter. The use of these 

rates approximates the use of average historical rates on marketable Treasury securities with 

maturities consistent with the projected benefit payments. 

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 obligation in accounts payable. 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 

in accounts payable 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. 

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 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 53 

canceled after 5 years, unless authorized for transfer by appropriations committees.

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, Federal Employees’ Group Life Insurance 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- 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 54 

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 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. 

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 report the cash provided by and used in 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 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 55 

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 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, 2011 and 2010. 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. 

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. GPO developed those judgments based on the best 

information available in the circumstances. 

P. 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 (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 56 

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, 2011 and 2010 follows. 

2011 2010

Fund Balances: 

 Revolving fund:

 Unrestricted 115,967 $ 101,016 $ 

 Restricted: 

 Customer deposit accounts 135,280 121,623 

 Other 38,874 34,205 

 Total revolving fund 290,121 256,844

 General funds:

 Congressional printing and binding 57,258 42,922 

 Salaries and expenses 32,200 32,183 

 Supplemental and other 7,275 8,216 

 Total general funds 96,733 83,321

 Total $ 340,165 386,854 $ 

Status of Fund Balance with Treasury:

 Unobligated balance:

 Available 157,727 $ 111,989 $ 

 Unavailable 7,275 8,216 

 Total 120,205 165,002 

 Obligated balance not yet disbursed 221,852 219,960 

 Total $ 340,165 386,854 $ 

(Dollars in thousands)

Unrestricted funds are available to meet the financial obligations of the Revolving Fund. 

Restricted funds are composed of customer deposit accounts, other deferred revenues, and 

restrictions for accrued wages and salaries, payroll taxes and other withholdings, and earned 

annual leave not used by employees. These funds can only be used for the purpose specified. 

Supplemental and other general funds include unexpended appropriations made to GPO for 

specific purposes as discussed in Net Position, Unexpended Appropriations (Note 12B). 

3. Accounts Receivable, Net 

Accounts receivable, net of an allowance for doubtful accounts, as of September 30, 2011 and 

2010, consisted of the following. 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 57 

2011 2010

Federal agencies: 

 Unbilled accounts receivable 122,697 $ 117,608 $ 

 Billed completed work 55,648 57,755

 Subtotal 178,345 175,363

Other receivables:

 The public 1,701 1,795

 GPO employees 1,346 1,255

 Subtotal 3,047 3,050

 Total accounts receivable 181,392 178,413

Less: Allowance for doubtful accounts (9,121) (6,736)

 Total accounts receivable, net 172,271 $ 171,677 $ 

 (Dollars in thousands)

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, 2011 and 2010. 

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. 

The allowance for doubtful accounts at September 30, 2011 increased by $2.4 million due to the 

increasing age of some unresolved chargebacks from U.S. Department of the Treasury’s Intragovernmental Payment and Collection (IPAC) System. 

4. Inventory, Net

Inventories, net of an allowance for surplus and obsolete stock, as of September 30, 2011 and 

2010, consisted of the following. 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 58 

2011 2010

Supplies and materials 22,822 $ 20,714 $ 

Publications for sale 6,723 7,859

Paper 4,488 5,172

Work in process 2,695 3,977

 Total inventory 36,728 37,722

Less: Allowance for surplus and obsolete inventory (4,809) (5,152)

 Inventory, net $ 32,570 31,919 $ 

 (Dollars in thousands)

5. Prepaid Expenses 

Prepaid expenses were $99,000 as of September 30, 2011, and $244,000 as of September 30, 

2010. The decrease of $145,000 in prepaid expenses in fiscal 2011 was primarily due to 

reductions in prepaid training expenses to the Office of Personnel Management (OPM) in fiscal 

2011. 

6. General Property, Plant, and Equipment, Net 

Net property, plant, and equipment as of September 30, 2011 and 2010, consisted of the 

following. 

2011 2010

Land $ 9,971 9,971 $ 

Buildings and improvements 83,425 82,629 

Plant machinery and equipment 98,063 93,121 

Computers and computer software 94,798 85,703 

Furniture and fixtures 6,113 6,113 

Motor vehicles 772 719 

Leasehold improvements 10,115 10,115 

Capitalized software in process 1,710 3,103 

Capital improvements in process 623 1,523 

 Total 305,590 292,997

Less: Accumulated depreciation and amortization (202,329) (182,106) 

 General property, plant and equipment, net 103,261 $ 110,891 $ 

(Dollars in thousands)
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 59 

General property, plant, and equipment decreased by $7.6 million in fiscal 2011 from fiscal 2010 

due primarily to capital additions of approximately $13.6 million and offset by annual

depreciation of approximately $21.5 million. The majority of the capital additions were for 

computers and computer software of $7.3 million. The increase in computers and computer 

software was primarily due to FDsys software ($4.4 million) placed into service during fiscal 

2011. During fiscal 2011, GPO also made other capital expenditures including printing 

production equipment for passports of about $4.0 million. 

In process assets at September 30, 2011, were mainly composed of press machine upgrades 

$355,000 and computer software upgrades of $469,000. In fiscal 2010, GPO had the following 

in process assets: Heidelberg Press of about $884,000, uninterruptible power supply to the data 

center of $388,000, and a card punching and die cutting system of $189,000. 

Depreciation expense was $21.5 million for fiscal 2011 and $19.9 million for fiscal 2010. The 

increase of $1.6 million in fiscal 2011 was largely the result of amortizing FDsys placed into 

service in fiscal 2010 and depreciated for the entire fiscal 2011, and amortizing new FDsys 

software modules placed into service in fiscal 2011. In addition, there was approximately 

$153,000 in depreciation in fiscal 2011 for the new passport press. 

7. Accounts Payable and Accrued Expenses 

Accounts payable and accrued expenses as of September 30, 2011, and 2010, were composed of 

the following. 

2011 2010

Accounts payable:

 Commercial printing 71,501 $ 53,687 $ 

 U.S. Government agencies 7,700 8,213 

 Other 34,453 21,675 

 Total accounts payable 96,353 100,876 

Accrued salaries and payroll taxes 20,081 12,589 

 Total accounts payable and 

 accrued expenses $ 108,942 120,957 $ 

(Dollars in thousands)

The increase in accounts payable and accrued expenses of $12.0 million resulted primarily from 

an increase in accounts payable to printing contractors of $17.8 million, offset by decreases in 

payables for professional services of $2.2 million, production materials of $1.8 million, and 

capital assets of $488,000. At September 30, 2011 and 2010, accounts payable to U.S. 

Government agencies includes amounts due to DOL for unreimbursed FECA benefits paid by 

DOL on GPO’s behalf of $7.6 million and $7.2 million, respectively. The accrued salaries 

payable and payroll tax for fiscal 2011 included $7.2 million for estimated payments to 

employees participating in the Agency’s 2011 – 2012 buyout program. These employees are 

scheduled to leave the Agency from October to December 2011. 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 60 

8. Deferred Revenues 

As of September 30, 2011 and 2010, deferred revenues from customers consisted of the 

following. 

2011 2010

Deposit accounts 135,280 $ 121,623 $ 

Advance billings 5,836 3,147 

Subscriptions 1,846 2,308 

Unfilled orders 182 208 

 Total 143,144 $ 127,286 $ 

(Dollars in thousands)

GPO held $135.3 million and $121.6 million in customer deposit accounts as of September 30, 

2011 and 2010, respectively. Of these amounts, Federal Government customers had advanced 

funds of $132.6 million and $118.7 million for printing and binding deposit accounts, and 

customers advanced $2.7 million and $2.9 million for publication and information sales program 

deposit accounts as of September 30, 2011 and 2010, respectively. Additionally, GPO held 

advanced funds from the Federal Government and other customers of $1.8 million and $2.3 

million for subscriptions for the sales of publications as of September 30, 2011 and 2010, 

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. 

GPO 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. 

9. Workers’ Compensation Liability 

Claims incurred and paid by DOL as of September 30, 2011 and 2010, but not yet reimbursed to 

DOL by GPO, are approximately $7.6 million and $7.2 million, respectively. GPO will 

reimburse DOL for these claims. GPO’s estimated non-current, actuarially derived future 

workers’ compensation liability was approximately $68.1 million and $70.9 million as of 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 61 

September 30, 2011 and 2010, respectively. GPO’s estimated, undiscounted, non-current, 

actuarially derived future workers’ compensation liability was approximately $109.1 million and 

$117.9 million as of September 30, 2011 and 2010, respectively. 

10. Commitments 

10. A. Operating Leases 

As of September 30, 2011, 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 $4.1 million 

and $3.9 million for fiscal 2011 and 2010, respectively. 

A schedule of future minimum rental payments required under operating leases by type, which 

have initial or remaining non-cancelable lease terms in excess of one year, follows. 

Future Minimum Rental Payments 

Required Under Operating Leases 

 Fiscal Year Warehouse Office Total

2012 1,002 $ 502 $ 1,504 $ 

2013 697 197 894 

2014 159 111 270 

2015 - 113 113 

2016 - 9 9 

 2017 and beyond - - - 

 Total minimum lease payments $1,858 $932 $2,790

(Dollars in thousands)

 10. B. Obligations 

GPO had unliquidated obligations of $221.9 million and $220.0 million, at September 30, 2011 

and 2010, respectively, of which $134.4 million and $117.1 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. 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 62 

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, 2011 and 2010, GPO has recorded estimated 

liabilities of zero and $2,290, 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 $140,000 and $81,000 on behalf of GPO for the 

years ended September 30, 2011 and 2010, 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, 2011 and 2010, respectively. 

 11. B. Environmental Liabilities 

GPO’s 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 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 $578,000 as of September 30, 2011, and $604,000 as of September 30, 

2010. These amounts are included in accounts payable and accrued expenses on the financial 

statements. The cost to remediate all non-visible asbestos has not been accrued in the financial 

statements due to the inability to reasonably estimate the extent of non-visible asbestos, the cost 

and manner of asbestos remediation, and the dates when 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. 

 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 63 

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). 

 12. B. Unexpended Appropriations 

The following table presents unexpended appropriation balances from September 30, 2009, 

through September 30, 2011, for appropriations made available to GPO. 

Unexpended Appropriations 

Salaries Congressional

Revolving and Printing and

Appropriations Fund Expenses Binding Total

(Dollars in thousands) Appropriation Appropriation Appropriation

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 

 2011 fiscal year appropriation activity:

 Received 1,656 39,831 93,580 135,067 

 Transferred 2,640 (2,640) - - 

 Expended (5,237) (37,627) (79,244) (122,108) 

Unexpended balance at September 30, 2011 7,275 $ $ 28,616 $ 93,149 57,258 $ 

As of September 30, 2011, GPO had obligated all the $57.3 million of the unexpended 

appropriations available for Congressional printing and binding, and all of the $28.6 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, 2011. At September 30, 2010, the 

obligations were $42.9 million in Congressional Printing and Binding Appropriations and $29.1 

million in Salaries and Expenses Appropriations. 

The Revolving Fund unexpended appropriations balances at September 30, 2011 and 2010 were 

$7.3 million and $8.2 million, respectively. The Revolving Fund unexpended appropriations 

balances are the result of the following appropriation activities: 

 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, 2011, GPO 

expended $2.4 million from this appropriation. At the end of fiscal 2011, balances 

available for future expenditures were $877,000, which remained the same as the end of 

fiscal 2010. 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 64 

 In fiscal 2007, Congress appropriated $1 million to the Revolving Fund for workforce 

retraining. As of September 30, 2011, GPO had expended $407,000. At the end of fiscal 

2011 and 2010, balances of $593,000 and $433,000 were available for future 

expenditures, respectively. The increase in amounts available for future expenditures 

resulted from the fiscal 2011 return of unused training funds of $165,000 advanced to 

OPM in a prior year. 

 In fiscal 2009, Congress appropriated $4.995 million to the Revolving Fund for 

information technology development and facilities repair. GPO expended about $4.973 

million from this appropriation as of September 30, 2011. At the end of fiscal 2011, 

$22,000 was available for future expenditures. At the end of fiscal 2010, $183,000 was 

available for future expenditures. 

 In fiscal 2010, Congress appropriated $12.8 million to the Revolving Fund for 

information technology development and facilities repair. As of September 30, 2011, 

GPO expended about $11.2 million from the appropriation, of which $3.5 million was 

expended in fiscal 2011. At the end of fiscal 2011, a balance of $1.6 million was 

available for expenditure. At the end of fiscal 2010, a balance of $5.2 million was 

available for expenditure. 

 In fiscal 2010, GPO transferred a total of $2.231 million from prior year Salaries and 

Expenses Appropriations to the Revolving Fund. This transfer was authorized to cover 

appropriation shortfalls (about $1.543 million of the $2.231 million) and for FDLP 

improvements (about $688,000 of the total). As of September 30, 2011 and 2010, a 

balance of $1.543 million was available for future expenditure. 

 In fiscal 2011, Congress appropriated $1.656 million to the Revolving Fund for 

information technology development. As of September 30, 2011, GPO had expended the 

entire appropriation. 

 In fiscal 2011, GPO transferred $2.640 million from the Salaries and Expenses 

Appropriation to the Revolving Fund to cover salaries and expenses of the 

Superintendent of Documents in fiscal 2012. As of September 30, 2011, the balance of 

$2.640 million was available for future expenditure. 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 65 

13. Appropriated Funds 

13. A. Total Appropriation Made Available 

The total appropriations made available to GPO, net of rescissions, for fiscal 2011 and 2010 

were as follows. 

2011 2010

Congressional printing and binding 93,580 $ 93,768 $ 

Salaries and expenses 39,831 40,911

Revolving fund 1,656 12,782

 Total available appropriations 135,067 $ 147,461 $ 

(Dollars in thousands)

 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 66 

13. B. Expended Appropriations 

The total appropriations expended by GPO during fiscal 2011 and 2010 were as follows. 

Expended Appropriations 

 

(Dollars in thousands) 

2011 2010

Congressional printing and binding: 

 Hearings $ 23,115 $ 19,748 

 Congressional Record products 20,292 25,154 

 Miscellaneous publications and 

 printing and binding 18,128 21,015 

 Bills, resolutions, and amendments 6,397 6,009 

 Details to Congress 4,177 2,493 

 Business and committee calendars 2,293 3,777 

 Committee reports 2,045 3,263 

 Other 1,354 1,801 

 Public document envelopes 753 2,946 

 Committee prints 690 2,901 

 Total congressional printing and binding 79,244 89,107 

Salaries and expenses: 

 Depository library distribution 26,373 24,414 

 Cataloging and indexing 9,027 7,547 

 International exchange 1,764 1,601 

 By-law distribution 463 582 

 Total salaries and expenses 37,627 34,144 

Revolving Fund: 

 Infrastructure improvements 5,396 11,292 

 Workforce retraining (159) 548 

 Total revolving fund 5,237 11,840 

 Total expended appropriations 122,108 135,091 

Reconciliation of expended appropriations to the 

 consolidated statements of revenues, expenses, and 

 changes in retained earnings: 

 Total expended appropriations 122,108 135,091 

Eliminations (Intra-agency) (19) (197)

Consolidated revenues from appropriations $ 122,089 $ 134,894 

 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 67 

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 GPO 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 2011 and 2010 for investigators and lawenforcement officers, and 7.0 percent of basic pay in both years for all other employees. GPO 

contributions were $3.4 million and $3.8 million for the years ended September 30, 2011 and 

2010, 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. GPO 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 25.7 percent 

basic pay in fiscal 2011 and 24.9 percent in fiscal 2010. The FERS contribution rate for all other 

employees was 11.7 percent in fiscal 2011 and 11.2 percent in fiscal 2010. GPO contributions to 

FERS totaled $14.5 million for fiscal 2011 and $13.8 million for fiscal 2010. 

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 

2011 and 2010. Employees, who were 50 years old or older, were allowed additional catch-up 

contributions of $5,500 in 2011 and 2010. 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 $4.9 million in fiscal 2011 and $4.8 million in fiscal 2010. 

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 6.2 percent of gross pay (up to $106,800 in 2011 and 2010) to SSA's 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 68 

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, 2011 and 2010 totaled $10.5 million and $10.8 million, respectively. 

Employment, Pension, and Other Post-Employment Benefits Provided by Others

OPM is responsible for the management, administration, and funding of certain Governmentwide 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, Federal Employee Group Life Insurance Program, 

and/or Federal Long Term Care Insurance Program before and after their retirement from the 

Agency. 

15. Major Customers 

GPO’s primary customers are the Congress and large Federal agencies in the Executive Branch 

of the Federal Government. In fiscal 2011 and 2010, billings to major customers, those 

representing approximately 10 percent or more of GPO's total revenue follow. 

Amount Percent Amount Percent

Department of State $207,102 25.2% $201,024 21.7%

Department of Health & Human Services 93,789 11.4% 105,689 11.4%

Congress of the United States 80,604 9.8% 90,824 9.8%

Department of Defense 78,795 9.6% 91,336 9.8%

2010

 (Dollars in thousands)

2011

16. Voluntary Separation Incentive Program 

In fiscal 2011, the Public Printer established the Voluntary Separation Incentive Program (VSIP) 

under authority of Public Law 108-447 and the approval of the Committee on House 

Administration and OPM. The Agency offered buyouts of up to $25,000, and early outs, with a 

goal of achieving a 15 percent personnel reduction, or 330 positions. As of September 30, 2011, 

a total of 287 employees had voluntarily agreed to separate from GPO under the program. As of 

September 30, 2011, GPO accrued $7.2 million in Revolving Fund cash to finance the estimated 

costs of the VSIP buyout incentive payments. Based on 287 VSIP separations, GPO will reduce 

estimated personnel costs and benefits by about $34.7 million annually. The estimated savings 

in fiscal 2012 is approximately $26.0 million, as many employees chose to leave in December 

2011. 
Section IV (cont’d): Notes to the Consolidated Financial Statements 

U.S. Government Printing Office Financial Year In Review – FY 2011 69 

17. Subsequent Events 

GPO has evaluated subsequent events through December 16, 2011, the date which the financial 

statements were available to be issued. There were no material events that required adjustment, 

accrual, or disclosure.
U.S. Government Printing Office Financial Year In Review – FY 2011 70 

ACRONYM LIST

ASC Accounting Standards Codification 

CAS Constitutional Authority Statements 

CP&B Congressional Printing and Binding 

CSRS Civil Service Retirement System

DLA Defense Logistics Agency 

DoD U.S. Department of Defense 

DOL U.S. Department of Labor 

EFT Electronic Funds Transfer 

FAR Federal Acquisition Regulations 

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 

FERS Federal Employees Retirement System 

FICA Federal Insurance Contributions Act 

LSCM Library Services and Content Management 

GAAP U.S. Generally Accepted Accounting Principles 

GAO U.S. Government Accountability Office 

GBIS U.S. Government Printing Office Business Information System 

GPO or Agency U.S. Government Printing Office 

HTML Hyper Text Markup Language 

IPAC Intra-governmental Payment and Collection (System) 

ISO International Organization for Standardization 

JCP Joint Committee on Printing 

NOAA National Oceanic and Atmospheric Administration 

OASDI Old Age, Survivors, and Disability Insurance 

OIG Office of the Inspector General 

OMB Office of Management and Budget 

OPM Office of Personnel Management 

PDF Portable Document Format 

PII Personal Identifiable Information 

PKI Public Key Infrastructure 

S&E Salaries and Expenses 

SID Security and Intelligent Documents 

SSA U.S. Social Security Administration 

Treasury U.S. Department of the Treasury 

TSP Thrift Savings Plan 

U.S.C. United States Code 

VERA Voluntary Early Retirement Authority 

VSIP GPO Voluntary Separation Incentive Program 

XML Extensible Markup Language
 </div>

 </td>

 <td class=”three-col-layout-middle padded-cell1”>

 <div class=”home”><a href=”/”>Home</

a> > About GPO</div><div class=”br”></div> 

 <div class=”section1”>

 <img src=”/images/gpo_entrance.gif” class=”image_

margins align_left” alt=”About GPO”/><h1 class=”main-page-title1 section1_

title”>About GPO</h1>

 <hr />

 <div class=”main-page-intro1”>The core mission of 

<i>Keeping America Informed</i>, dated to 1813 when Congress determined 

to make information regarding the work of the three branches of Government 

available to all Americans. The U.S. Government Printing Office (GPO) 

provides publishing and dissemination services for the official and authentic 

government publications to Congress, Federal agencies, Federal depository 

libraries, and the American public.</div>

 </div>

 <div class=”section2”>

 <div class=”br”></div>

 <p><span class=”section2_title”><strong>GPO 

Mission, Vision, Core Values, and Goals</strong></span><br />

 Review GPO’s <a href=”/about/annualreport.

htm”>Annual Report FY2011–2015</a>.</p>

 <p><span class=”section2_

title”><strong>GPO’s Strategic Plan—Customer Centric and 

Employee Driven</strong></span><br />

 Review GPO’s <a href=”/pdfs/about/2011_

StrategicPlan.pdf”>Strategic Plan for FY2011–2015</a>.</p>

 <p><span class=”section2_

title”><strong>Management Team</strong></span><br />

 <a href=”/about/management_team.htm”>View our 

organizational chart</a> and download leadership biographies.</p>

 <p><span class=”section2_title”><strong>Frequently 

Asked Questions</strong></span><br />

 <a href=”/about/faq.htm”>General questions</a>

732 North Capitol Street NW, Washington, DC 20401-0001

50% Black + 100% Black

PMS 540 + 100% Black

White (version for reverse)

White (version for reverse) YEARS

1861-2 011