1987 

Annual Report U.S. GOVERNMENT PRINTING OFFICE 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 
GPO Management 

The Joint Committee on Printing 

Frank Annunzio 

Representative from Illinois 

Chairman 

Joseph M. Gaydos 

Representative from Pennsylvania 

Leon E. Panetta 

Representative from California 

Robert E. Badham 

Representative from California 

Pat Roberts 

Representative from Kansas 

Wendell H. Ford 

Senator from Kentucky 

Vice Chairman 

Dennis DeConcini 

Senator from Arizona 

Albert Gore, Jr. 

Senator from Tennessee 

Ted Stevens 

Senator from Alaska 

Mark 0. Hatfield 

Senator from Oregon 

Richard Oleszewski 

Staff Director 

GPO Senior Staff 

Ralph E. Kennickell, Jr. 

Public Printer of the United States 

S. Bruce Scaggs 

Assistant Public Printer 

(Operations and Procurement) 

Burkey W. Boggs 

Assistant Public Printer 

(Night Operations) 

Grant G. Moy, Jr. 

General Counsel 

Stuart M. Foss 

Executive Advisor 

Table of Contents 

Joseph E. Jenifer 

Deputy Public Printer 

Donald E. Fossedal 

Assistant Public Printer 

(Superintendent of Documents) 

Patricia A. Gardner 

Assistant Public Printer 

(Administration) 

Joyce Blalock 

Inspector General 

James N. Joyner 

Director, Customer Service Staff 

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

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

Operations... ... .. ....................... .... .. .. ...................... ....... .. .............. . 6 

Procurement.... ... ......... .. ..... ................... ............. ... ..... .......... ... .... .. 9 

Superintendent of Documents .... ... ........... .. .......... .... .............. .. ..... 11 

Administration .......................................... ................................. .. ... 14 

Human Resources.. ......... ..... ............... .. .. .. .......... ...... ..... ......... ...... 16 

Financial Highlights .. ........ ..... ... ..... ... ......... ....................... ............. 17 

Financial Statements ........ .. ............. .. .. ... ........... .... .. ............. .... .. ... 18 
Ralph E. Kennickell, Jr. 

Public Printer 

Fiscal 1987 was a 

watershed year for the 

Government 

Printing Office. 

We could not have 

attained such financial 

heights without the 

commitment 

of our customers. 

Public Printer's Message 

It would not be overdramatic to say that fiscal 1987 was a watershed year for 

the Government Printing Office. Financially speaking, it was our best year ever; 

technologically, we began a re'equipping process and expansion of services 

unprecedented in our history; to ensure our continued success, we built upon 

the complete turnaround in customer relations begun two years ago; and, in 

terms of human development, we committed ourselves to ambitious training and 

literacy programs. 

When I say "best year ever," I mean that 1987 was remarkable for financial 

successes across the board. In-house printing showed a net income of $6.7 

million; purchased printing contributed another $4.8 million in net income; and 

the publications sales program netted over $11.4 million. Taken together, our 

total net income of $22.9 million eclipses last year's figure by $14.1 million, an 

increase of 158 percent. In addition, our need for appropriated funds for 

salaries and expenses under the bylaw and depository library distribution and 

cataloging programs declined by $1.8 million. Although this improved financial 

picture can be partly attributed to the lifting of Gramm-Rudman restrictions, it is, 

in the main, a direct reflection of the improved attitude of our workforce, a 

workforce that believes in being demand-driven and service-oriented, men and 

women who are committed to working smarter and harder to reach a common 

goal. 

GPO's management is similarly committed to giving those workers the best 

equipment and the most advanced technology possible to accomplish their 

duties. As detailed elsewhere in this report, such innovations as on-line or "dialup" composition, a bid information list for our contractors, and software for 

access and retrieval of the Congressional Record data base represent current 

application of state-of-the-art technologies. We are also reequipping our plant 

with the modern machinery needed to meet the ever-growing challenges posed 

by our mission. A new five-color postal card press and microprocessorcontrolled cut/pack system and a highly automated binding line for U.S. 

Passports were installed this year; these units should be joined next year by 

two new high-speed offset web presses that will replace our aging 

Congressional Record presses. Our ultimate goal is to have machines that are 

faster, more flexible, and capable of higher quality products. 

We could not have attained such financial heights nor had the impetus to re-

_equip without the commitment of our customers. One of our greatest 

accomplishments has been to change our attitudes toward our customers as 

well as ourselves, thereby gaining their trust and confidence. Ours is no longer 

a relationship based on dictatorial powers, but one firmly founded in the 

importance of communication, in a spirit of cooperation, and in recognizing that 

we need one another. We are committed to expanding our services and to 

treating our customers as customers in the best sense of the word, and they 

have responded to that commitment with appreciation and a new 

interdependence. 

We are also committed to human development in some very important areas. 

First, the initial phase of development has begun to create a Federal Publishing 

Institute. This concept will evolve into a tool to help our customers upgrade the 

skills of their printing and publishing personnel and be a common ground for 

discussing mutual problems, coping with the application and management of 

1 
Freedom cannot hope 

to exist in an 

illiterate society. 

As the information 

industry expands 

explosively, the world, 

in essence, shrinks. 

emerging technologies, and pooling our resources to meet the future of the 

Federal information industry together. The groundwork is being laid for this effort through contacts with industry and intergovernmental groups and extensive 

research . The first phase should be well underway by late in fiscal year 1988. 

Second, we are taking a leadership role in the war on illiteracy in America. It is 

sad to reflect during the Bicentennial of the United States Constitution that many 

Americans cannot read, much less understand, this sacred document. We have 

joined with the Library of Congress in supporting the Presidential proclamation 

and Congressional resolution declaring 1987 ''The Year of the Reader," and we 

are fully supporting the Federal Employee Literacy Training (FELT) program as 

well as other literacy programs. In addition, we are planning to sponsor a symposium on the economic impact of illiteracy on the print media in order to provide a neutral ground for the industry to discuss this vital issue. It is intolerable 

that an ever-expanding explosion of information is being directed at an increasingly illiterate population, for freedom cannot hope to exist in an illiterate 

society. 

We are also committed to the improvement of communications among government printers around the world. The pressures of technological change and 

fiscal constraints are leading government printers to view the problems they 

face as common to all, and to look to each other for guidance and assistance 

in overcoming them. To that end, GPO will host the International Government 

Printers' Conference in June 1988. The Conference will provide delegates with 

a forum for the presentation of technical papers, discussion of the formation of 

a permanent International Government Printers' Association, an opportunity to 

gain information on GPO's International Exchange Visitor Program, and a 

chance to visit and review GPO's production, procurement, and distribution 

operations. It is our hope that Conference attendees will be able to gain new insights into current government printing issues in an environment which promotes the free exchange of information, ideas, opinions, experience, and 

expertise with professional colleagues and expert practitioners. We must 

recognize that, as the information industry expands explosively, the world, in 

essence, shrinks; that we are as much a part of the world community as we are 

of our immediate surroundings. 

GPO's transformation as an agency has been dramatic. We are on the best 

financial footing in our history, we stand on the leading edge of applied 

technology, and we enjoy a remarkable relationship with our customers. With 

this success comes the serious responsibility to serve in a leadership role in the 

information industry. Therefore, as we enter this era of challenge and uncertainty, we confidently offer GPO as a catalyst, ready to facilitate the examination 

and advancement of the information needs of the Federal community, the 

Nation, and the world. 

Ralph E. Kennickell, Jr. 

Public Printer 

2»· 

2 
Joseph E. Jenifer 

Deputy Public Printer 

Customer Service Staff 

Deputy Public Printer's Message 

Fiscal year 1987 was not only the most successful year in GPO's history, but it 

was one in which stock could be taken of how well we were doing our job. 

Looking only at the "bottom line" can cause an organization to lose sight of how 

it arrived at its success. To that end, we realized that, in order to become a 

truly service-oriented agency, certain organizational changes had to be made, 

changes which had a fundamental impact on the way we deal with our 

customers and with one another. 

First, the position of Assistant Public Printer for Operations and Procurement 

was created, bringing together the Production and Printing Procurement 

Departments along with other vital support functions. This made it possible for 

GPO's printing and binding operations, representing nearly 90 percent of GPO's 

revenue, to work as a single unit to fulfill our customers' needs. Dividends have 

already been seen in terms of improved communications and a more 

streamlined decisionmaking process. 

The second change involved service to Congress, our primary customer. 

In order to obviate potential problems in our second- and third-shift in-plant 

operations, which produce Congressional work almost exclusively, the position 

of Assistant Public Printer for Night Operations was established. This elevation 

to APP status marks the first time in GPO's history that such emphasis has been 

placed on our night operations and reflects our commitment to service and 

the importance we place upon maintaining our excellent relationship with the 

Congress. 

The effort to improve our operations and communications, both internal and 

external, is a recurring theme throughout the accomplishments of the various 

organizations within GPO in fiscal year 1987. The transition has truly been 

made to a demand-driven, service-oriented agency, one that can meet the 

challenges of new technologies and rapid change in stride. 

The Customer Service Staff, which coordinates all aspects of the printing, 

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

made substantial contributions to our record of achievement this year. Meetings 

with such groups as the Federal Publishers Committee and the Interagency 

Council on Printing and Publications Services, as well as the presentation of the 

well-regarded Printing Assistant Training Program, have been seized as 

opportunities to make customers aware of not only the services available 

through GPO but of the new attitude of cooperation as well. 

The Departmental Account Representative Division continued to expand its 

customer outreach efforts, participating in over 600 meetings with agency 

representatives and making more than 150 visits to customers' facilities to 

discuss their publications programs. An important innovation was the 

establishment of an Electronic Publishing Section, which will help customer 

agencies in the identification and fulfillment of their needs in that burgeoning 

area; staffing is expected to be complete by early 1988. 

3 
Office of the 

Inspector General 

Our Congressional Printing Management Division also made significant gains in 

expanding and improving services to our Capitol Hill customers. The Division 

coordinated the expansion of on-line or "dial-up" composition to eight 

Congressional offices in conjunction with the Graphic Systems Development 

Division. The number of incomplete Congressional Records produced dropped 

dramatically, and an overall improvement in turnaround time on Congressional 

work has met with great appreciation. 

Through the full cooperation and input from the Production Planning Division, 

the Production Estimating and Planning System (PEPS) was completely revised, 

resulting in a more sophisticated and accurate scheduling and estimating 

program. The commercial binding contract, which allows fuller utilization of 

GPO's press capacity, saw a 31-percent decrease in jobs placed but a 5-

percent increase in dollar volume. Savings accrued through suggested 

specification changes exceeded $120,000. 

The Division of Typography and Design continued to play a leadership role in 

Federal graphic design, experiencing significant increases in its most important 

• ·and technical workload areas. Of particular interest was the design of the "We 

the People" Commemorative Calendar for the Bicentennial of the U.S. 

Constitution. The demand for audio-visual and videotape productions remained 

at a high level, and approval was obtained for installation of a permanent 

projection system in the Carl Hayden Room and for construction of a 

soundproof recording and editing studio. 

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

weaknesses and prevent fraud, waste, and abuse. During fiscal year 1987, the 

Office of Audits (OA) issued 40 reports which assisted GPO managers to reduce costs, improve operations and strengthen internal controls against fraud, 

waste, and abuse. Implementation of OA recommendations resulted in 

management commitments to avoid costs or more effectively use resources in 

excess of $14.3 million. In addition, contractor claims audits resulted in claims 

reductions of approximately $2.4 million. 

The Office of Investigations (01) conducted a total of 50 investigations including 

37 full-scope criminal, 11 noncriminal, and 2 proactive investigations. The 01 

issued 17 reports during the fiscal year. Due to fraud investigations of five New 

York City area contractors, the GPO was awarded $32,000 from fines and 

$565,300 in court-imposed restitution resulting from criminal prosecution. In 

addition to the fines and restitution, four company officials were convicted, four 

companies debarred and one company suspended. Civil litigation resulted in a 

monetary fine of $125,000 being awarded to GPO. 

4 
.Office of Public Affairs Among the more significant special activities supported by the Public Affairs 

staff during the fiscal year were those held in commemoration of the 

bicentennial of the Constitution of the United States. Input to the Bicentennial 

Commission itself, in the form of presentations at meetings and information as 

requested, was significant. The office also carried out the necessary provisions 

to allow 300 GPO employees to attend Citizenship Day activities on The Mall. 

A new function added to the Public Affairs responsibility during fiscal year 1987 

was the creation of a video coaching program for GPO executives. With the 

assistance of additional Public Affairs staff members, many of the Office's top 

officials received the training designed to enhance and improve their public 

communications skills. 

Another activity of the Public Affairs staff was an open house ceremony marking 

the unveiling of GPO's new passport and postal card production operations, 

which was attended by nearly 1 00 guests and representatives of the media. 

For the second year in a row, the Public Affairs office coordinated the 

distribution of the Budget of the United States, including making all provisions 

for GPO to host the accompanying press conference. Coordination activities for 

the 1988 International Government Printers' Conference were begun with a 

response card and conference prospectus mailed to each potential attendee 

during the fiscal year. Media coverage and awards recognition for the 

Adopt-A-Family aspect of the Community Outreach Program were highly 

favorable; GPO honored those from the Metropolitan Police Department who 

assisted in setting up the program. 

5 
Production Department 

On-line or "Dial-up" 

Composition Service 

Operations 

The Assistant Public Printer (Operations and Procurement) and the Assistant 

Public Printer (Night Operations) are responsible for all pre-press, press, and 

binding operations at GPO's central office printing plant, as well as for the 

provision of quality control and related technical assistance to all GPO 

production and procurement operations. 

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

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

Capitol and employs nearly 2,100 production personnel to provide a full line of 

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

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

$7.7 million. Major congressional products include the Congressional Record, 

bills, resolutions, amendments, reports, and hearings. 

The Electronic Photocomposition Division (EPD) continues to successfully meet 

the needs of Congress by accomplishing the typesetting of the Congressional 

Record, hearings, calendars, reports, and other documents required by the 

legislative process. The Federal Register remains constant as one of our major 

daily accomplishments; the number of pages of Register produced last year 

g-rew over previous years. The introduction of laser scanners as a method of 

data capture has enhanced our mode of operation, while improving the product 

quality. It is estimated that 50 percent of Federal Register manuscript is 

captured in this manner. 

Graphic Systems Development Division (GSDD) has been able to introduce new 

features into the production environment this year, including development of an 

automated change page feature integrated into the Automated Composition 

System. In the coming year, the Applic~tions Section will be expanded into two 

sections: one to support the agencies producing work through the conventional 

in-house GPO system and the other to support the agencies producing work 

remotely, through either the dial-up system or the PC-based composition 

system. 

The Government Printing Office has developed an on-line, or "dial-up," 

composition service which gives its customers access to the full power of 

GPO's composition system in their own offices. Using this system, keystrokes 

are captured by the customer on a microcomputer and transmitted to GPO 

over ordinary telephone lines. They are automatically composed, returned to 

the originator, and printed out in proof form on a non-impact printer. 

The system allows the user to maintain complete control over content, 

format, and data base maintenance, and speeds up the production cycle for 

initial proofs from a week or more to as little as an hour or two, depending on 

the size of the document. It provides the user with a logically-structured data 

base that can be used in many other applications, including indexing, 

extracting, and data retrieval, and it gives the user access to the full tange of 

GPO's typefaces and formats. 

A demonstration room has been established to allow customers to see the 

system at work. New customers participating in the system telecommunicate 

data to this room and their work is processed through it for a period of time 

so that the Applications Specialists can provide full training and support. 

6 
New Equipment for 

Producing Postal Cards 

and Passports 

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

waste reduction, overruns, underruns, shortages, .stock control, plate remakes, 

and spoilages, in a combined effort to reduce operating costs resulting from 

these problems. The modernization and/or equipment overhaul in most sections 

of the division will continue in order to keep in step with the automation taking 

place throughout the industry. The Offset Press Section continues to operate its 

training program, earmarked to promote workers from within the GPO to 

journeyman pressmen, assistants, and feeder operators. In addition, the new 

postal card section is in full operation. · 

The Binding Division's proposed 3-year modernization plan is now in the third 

year. Equipment replacement will continue until all outdated equipment has 

been replaced. Plans for workforce consolidation and some unit relocations are 

underway. Twenty-one bookbinder trainees entered our program during the 

past year. As of September 30, 1987, eight employees had successfully 

completed the training. Additional trainees will be assigned to the program as 

necessary, depending upon the division's staffing levels and workload 

requirements. 

Installation of the new automated United States Passport production line was 

completed in December 1986. Cover material and text were available in 

January 1987, and the equipment began to run on live work. A number of 

major problems were encountered and resolved with major production 

increases being made in July and August 1987. During the month of August, 

production exceeded 90,000 books per week. 

The United States Passport is perhaps the most important high-quality 

security product of the Government Printing Office. The previous passport 

binding process was a highly labor-intensive operation; by contrast, GPO's 

new UP205 automated passport binding machine is designed to produce 

4,200 passports an hour with minimal manual intervention. This system, which 

gives GPO the capacity to produce 7 million passports each year, represents 

state-of-the-art electronic technology, offers a greater number of security 

features, and produces a higher quality product with lower production costs 

than previous methods. · 

GPO also produces over 500 million postal cards each year for the U.S. 

Postal Service. GPO's new postal card press is a sheet-fed, five-color unit 

capable of printing 10,000 impressions, or BOO, 000 cards, per hour. All 

functions are controlled from a computer console; settings for each inking unit 

are made from this station and can be stored on a tape cassette for later 

recall. The 34-ton press is virtually vibration-free. 

Skids of printed sheets of postal cards are transported from the delivery 

unit to the new UST-12 cut and pack system. This completely automated, 

computer-controlled machine, installation of which was completed in 

December 1986, is capable of cutting and packing 6, 000 sheets, or 480,000 

postal cards, every hour. Its ingenious design incorporates several 90 degree 

turns in the production cycle that were necessitated by the logistics of the 

building in which it was installed. 

7 
Quality Control and 

Technical Department 

Engineering Service 

The workload in the Electronic Systems Development Division (ESDD) is 

expected to increase over the next several years. Unlike previous years, when 

most new equipment was installed within the GPO main plant, the trend for the 

next few years will be the installation of equipment serviced by GPO at various 

sites where data bases are captured. Non-impact printers and text editing 

systems will communicate with GPO for the purpose of transferring data files for 

composition and transmittal of copy files to these printers for proofing purposes. 

Corrected files will then be forwarded by the optimum method for final 

typesetting and printing. This expansion will require maintenance over a much 

wider area than now covered. 

The Quality Control and Technical Department develops, coordinates, and 

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

systems encompass specifications and standards, inspection and sampling, 

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

management reports. 

During the past 12 months, Quality Control personnel tested 10,213 material 

samples against applicable specifications and responded to 8,242 requests to 

resolve technical and quality problems. The Department manufactured 260,845 

pounds· of ink, produced 143,359 pounds of adhesive, handled 1 ,280 press 

rollers, recovered 7,946 troy ounces of silver, $38,202 worth of scrap film and 

recycled approximately $4,800 worth of waste ink. 

Of significance to the Federal community and the graphic arts industry at large, 

quality attribute development projects have achieved benchmark goals, and 

paper and material specifications have been developed in unprecedented 

numbers to support both Operation and Procurement needs and timetables. 

Engineering Service provided enhanced support to the agency in the traditional 

areas of building maintenance, building renovation, and equipment installation 

and servicing. For example, the Inspector Ganeral's office project on the fifth 

floor was completed. The cafeteria project, a major renovation to correct health 

code violations, and the adjacent seventh floor stairwell is nearing completion. 

Representatives of the JCP have visited the site to observe project progression. 

The Service installed a new cutting and packing machine in the Postal Card 

Section at a cost of $68,000. In addition to the above, a major renovation was 

also carried out in GPO Building 4, in preparation for the International 

Government Printers' Conference scheduled to take place in 1988. This project 

included repairs to the HVAC systems, constructing new offices, and remodeling of the lobby and security areas. 

8 
Printing Procurement 

Department 

Computerized Bid 

Information Center for 

_ _ _ _ __ _ _ Contractors 

Procurement 

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

purchasing of the Government's printing and binding requirements from 

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

supplies, paper, and equipment used by the Office. 

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

the Governmentwide policy of utilizing private sector contractors to the 

maximum possible extent to obtain products and services at the most 

competitive prices. Reflecting this policy, about 7 4 percent of GPO's total fiscal 

year 1987 printing and binding revenue came from work contracted to 

commercial printers. 

Printing Procurement continued to exemplify the GPO motto "demand-driven, 

service-oriented" by being responsive to both customer agencies and 

contractors. During fiscal year 1987, more impossible schedules were met than 

at any time in recent history. A pilot program was implemented to provide a Bid 

Information Center (BIC) that allows contractors to access our specifications via 

telecommunications using their personal computers. Enhancements to the 

Procurement Information Control System (PICS) has reduced inputting errors on 

print orders making the verifications of vouchers and payment to contractors 

faster. This allows GPO to take full advantage of payment discounts and 

reduces contractor complaints concerning slow payment. 

In an effort to transmit specification information to contractors more 

quickly, GPO's Printing Procurement Department has expanded its efforts to 

inform printing contractors of bidding opportunities by establishing an 

electronic bulletin board system. Called the Bid Information Center (BIC), this 

system marks the first electronic data link between GPO and its contractors. 

Using this pilot system, printing contractors can access specification 

information on any major jobs; small-purchase contracts, or those valued at 

under $10,000, will be included in the next phase of the system. BIC provides 

a brief synopsis of all formally advertised printing jobs available for bid as well 

as actual award information. Participants can have GPO's mainframe computer 

search its data base for jobs based on type of product, timeframe, GPO office 

(including the Central Office in Washington, DC, and all 19 regional and 

satellite offices), or any combination of these criteria. In addition to helping 

increase the volume of bidding, and, therefore, the amount of competition on 

GPO work, Public Printer Kennickell said of the system, "In the future, this link 

may open the door to electronic mailing of specifications, receipt of bids, 

exchange of compliance information, and many other exciting possibilities." 

BIC can be accessed using a wide variety of computer terminals, 

personal computers, and related software, keeping initial start-up costs low. 

Contractor response has been very positive; by the end of fiscal year 1987, 46 

contractors had subscribed to the system, which carries a quarterly 

participation fee of $100. The system also received favorable attention in the 

editor's column of the June 1987 issue of Printing Impressions magazine 

under the heading, "Your Computer as a Money Maker." 

9 
Materials Management 

Service 

The increased workload and revenue in the Printing Procurement Department 

was a major improvement over 1986. An overall increase of 4 percent in 

workload generated $591.8 million in revenue, an increase of 5 percent over 

fiscal year 1986. The increase was due mainly to the purchase of new tax 

forms mandated by the new tax laws that took effect in calendar year 1987. 

Computers continue to be a valuable operating tool for Printing Procurement. 

The main operating system, System 36, has been upgraded to increase 

memory and provide the capability to increase the hard disk storage. The 

system is currently used to develop specifications, abstract bids, type letters, 

create bid lists and many other functions, including the ability to separate 

reliable from unreliable contractors in the categories of responsibility and 

quality. 

By continuing to implement the use of computers for recordkeeping, the 

operating divisions within Materials Management Service (MMS) are doing their 

job more efficiently and effectively than in the past, saving both time and 

money for the GPO. The purging of over 800 seldom-used items from the 

inventory records; the accuracy rate in locating paper in stores (over 99 percent 

accuracy rate); and significant dollar savings due to better accountability of 

paper assets are a few examples of efficiency directly attributed to the use of 

computers. One item of particular significance is an on-line automated Postal 

Card System developed by GPO to ensure that every post office in the United 

States has the proper supply of postal cards. This system was adopted as the 

official distribution system by the U.S. Postal Service. 

GPO's 1986 Revenue Dollar 

10 

Where It Came From 

64.8$/Purchased Printing 

.&$/Reimbursements 

2.6$/S & E Appropriation 

7.6$/Sales of Publications 

24.4$/ln-House Printing 

Where It Went 

61.9$/Purchased Printing 

1.1 $/Capital Expenditures 

.6$/0ther 

2.3$/Sales of Publications 

3.5$/Rents, Comm. , Utilities 

6.2$/Supplies & Materials 

23.4$/Labor 

1.0$/Surplus 
Marketing 

Public Service 

Announcements on 

Television 

Superintendent of Documents 

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

broad range of Government information dissemination programs and services 

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

iAdexes of Government publications, the distribution of publications to 

depository libraries as required by law, and reimbursable mailings. Funding for 

these programs was provided through $73.4 million in publication sales, $19.9 

million from the Superintendent of Documents salaries and expenses 

appropriation, and $4.9 million from other Government agencies for 

reimbursable distribution services. 

In fiscal year 1987, the Office of Marketing further refined and expanded its efforts to improve public awareness of and access to Government information. 

During the fiscal year, 650,000 "U .S. Government Books" catalogs were produced, an increase of 212,000 over the previous year. Much of the increase 

was due to the debut of new radio and television Public Service Announcements, 

which have been widely broadcast on all four TV networks and on hundreds of 

independent TV and radio stations. An arrangement with the Internal Revenue 

Service resulted in the distribution of 1.2 million catalog request cards through 

IRS regional offices and a consequent distribution of approximately 140,000 

catalogs. The bimonthly New Books list was redesigned to enhance its value as 

a promotional tool. Numerous direct mail flyers produced by Marketing were 

mailed to hundreds of thousands of potential customers. 

During fiscal year 1987, the Superintendent of Documents' Office of 

Marketing oversaw the production and distribution of television Public Service 

Announcements (PSAs) promoting GPO's free U.S. Government Books catalog 

of new and popular publications sold by the Superintendent of Documents. 

The new PSAs, the first ever produced commercially for GPO, have appeared 

on all four major television networks and on hundreds of individual stations 

across the nation. 

A contract for the PSAs was procured through Materials Management 

Service, and Marketing worked closely with the contractor to develop 

appropriate PSA concepts. After careful review, two concepts were selected: 

the humorous "Confused Agent," an encounter between bumbling spies; and 

"Spokesman," featuring Public Printer Kennickell. Scripts for 60-, 30-, 20-, and 

1 0-second spots were then developed by the contractor and edited by 

Marketing. 

The U.S. Capitol and portions of GPO's physical plant were used as 

"stage sets" for filming the PSAs. GPO's bindery, Main Bookstore, and Building 

4 warehouse area were all used as locations for the new spots. "Confused 

Agent" was completed during an all-night filming session in Building 4; the 

next day, the U.S. Capitol, the bindery, and the Main Bookstore served in turn 

as backdrops for the Public Printer's "Spokesman" spot. GPO employees in all 

areas were extremely supportive during the various phases of this unusual 

project. 

After completion and final editing, videocassettes of the PSAs were 

distributed to television networks and stations accompanied by a letter 

explaining their purpose and a copy of the U.S. Government Books catalog. 

Their broad acceptance by the media and the public is reflected by an 

increase of more than 200,000 catalogs distributed in fiscal year 1987. 

11 
Document Sales Service 

Marketing continued to develop sales promotions in cooperation with publishing 

agencies and maintained a close and ongoing liaison with agency publishers 

throughout the Federal Government. Bookstore marketing highlights included 

the production of flyers for distribution in Government bookstores, direct mail 

letters to specific audiences in selected bookstore cities, and the development 

of signage and display racks for promotional materials. 

Other marketing activities supporting the publications sales program included 

an extensive program of exhibits at conventions, meetings, and conferences, 

and the production of special bookmarks and notepads to mark the Bicentennial of the United States Constitution. 

Marketing efforts on behalf of the Federal Depository Library program included 

the development of a poster explaining the Superintendent of Documents 

classification system for publications, the production of a poster promoting map 

depository libraries in cooperation with the U.S. Geological Survey, and the circulation of four portable display units promoting the availability of Government 

information in libraries. Special exhibit collections of books related to the 

Bicentennial of the Constitution began circulating in the library community. 

Marketing also continued to distribute large quantities of Depository Library 

brochures and bookmarks to depository libraries. 

Fiscal year 1987 was the best year for the Sales Program since it was placed in 

the position of being self-sustaining by the Congress in 1978. Revenue was up 

substantially over fiscal year 1986. Publication orders were up as well as 

subscription service line items ordered. The positive financial position is allowing 

the reduction in prices of approximately 80 percent of our subscription services. 

Publication prices are expected to remain stable for the next 2 years, assuming 

the number of copies sold remains around the 26 million level as it has for the 

past 2 years and costs can be kept in line. Postage, however, is the biggest 

unknown in this scenario. 

Order processing times at the Central Office were generally well within industry 

standards and within Office goals. At the last order processing time study, 

single line item "express processing" type orders were being placed in the mail 

stream in 6.2 working days. Orders for more than one line item where the 

books were in stock and the money was correct or a deposit account or credit 

card was used, were going in the mail in 9.4 working days. Subscription orders 

were generally being entered into the Mail List System in an average of 10 

working days. Documents Sales Service is now developing its third generation 

of automated systems to improve timeliness further and add new controls and 

reference capabilities. 

The Bookstore Program has become totally self-sustaining and plans are being 

made to expand the bookstore program substantially over the next eight years. 

Birmingham and Farragut West stores were relocated to new sites and plans 

have begun to relocate the Houston and Pittsburgh stores. In addition, work 

has begun to open new stores in Portland, Indianapolis and Minneapolis in 

fiscal year 1988. 

12 
Library Programs Service 

In response to the Resolution of the Joint Committee on Printing, the sale of 

publications in electronic format was begun by the Document Sales Service, 

Office of the Superintendent of Documents. A letter was sent to former and 

prospective customers on July 1 and a news release was prepared which 

announced the availability of both individual publications and subscriptions on 

magnetic tape and provided general pricing information. Initial subscription 

sales have been of the Daily Bills, Congressional Record, and the Federal 

Register. Single tape sales have been made of publications such as various 

titles of the Code of Federal Regulations, Public Laws, the Government Manual, 

Congressional Directory, Statistical Abstract, and issues of the Federal Register. 

The Internal Revenue Service project was a success; about 70,000 orders from 

tax practitioners were processed, yielding revenue of $2.8 million against 

expenses of $1.5 million. The program has been expanded for tax year 1987. 

The Library Programs Service commenced planning for the dissemination of 

Government publications to depository libraries in electronic formats. All hardcopy Monthly Catalog issues, including the 1987 Periodicals Supplement and 

·various indexes, were produced and distributed on or ahead of schedule 

throughout fiscal year 1987. Fifteen percent fewer publication copies were 

distributed to depository libraries during fiscal year 1987, as compared with the 

previous fiscal year. This was largely due to year-long problems with the 

microfiche contractor, and, to a lesser extent, due to a dropoff in the number of 

items received for distribution. 

GPO's 1987 Revenue Dollar 

Where It Went 

---------

~ 

61.5~/Purchased Printing 

.8~/Capital Expenditures 

~~ 1.0~/0ther 

"-. ~ 

~ 

2.3~/Sales of Publications 

3.3~/Rents , Comm., Utilities 

6.1 ~/Supplies & Materials 

------- 22.4~/Labor 

--------- 2.6"Surplus 

13 
Financial Management 

Service 

Information Resources 

Management 

Administration 

The Assistant Public Printer (Administration) is responsible for a full range of 

information management, financial management, security, and support services 

which provide complete administrative assistance to the operations of the GPO. 

The Financial Management Service (FMS) provided improved services at 

reduced costs through increased automation, improved productivity, and by 

focusing on management needs for improved financial information. 

To assure that GPO rates are properly recovering costs and reflect the impact 

of new processes and equipment, analyses were conducted and new scales of 

prices were developed for the Central Office and the Rapid Response Center. 

New rates were established for postal cards produced on a new five-color press 

and processed on a new cut-and-pack system; for the new Passport Production 

Line, and the selling of magnetic tapes to the public. A publication, "Simplified 

Scale for Printing and Binding Books and Pamphlets," was updated and 

provided to agencies by the Customer Service Staff to provide our customers 

with a basis for estimating the cost of printing. Special studies of operating 

costs were conducted, such as an analysis of work flow and processes used for 

distribution of publications to depository libraries. 

Cash management was substantially improved in 1987, through improved 

automation and closer monitoring of balances and trends. Management reports 

were developed on micro-computers. The automatic billing system, which was 

implemented in fiscal year 1986, processed $222 million in billings in fiscal year 

1987, an increase of 68 percent over fiscal year 1986. FMS streamlined 

Department of the Army billings by transmitting them on computer tape in lieu 

of paper invoices. Billing procedures were revised to implement the change in 

International Exchange Program funding effective in fiscal year 1987, whereby 

costs are charged to the Salaries and Expenses Appropriation rather than the 

originating agency. 

The Office of Information Resources Management (OIRM) provides a full-range 

of automated computing services for the U.S. Government Printing Office. This 

includes maintenance of a GPO-Wide Data Automation Plan; the design, 

development or procurement of approved systems and programs; and, the 

procurement and maintenance of equipment facilities for the efficient operation 

of these systems. 

Fiscal year 1987 was a year of transition and accomplishment for the OIRM. A 

GPO-Wide Data Automation Plan was prepared, providing a strategy for 

meeting the GPO's future computing services requirements and a preliminary 

working calendar for implementing these requirements. With the reestablishment of the GPO ADP Steering Committee, and the Data Automation 

Plan and its continuing planning process, a foundation has been built for the 

efficient planning, selection, and implementation of information resources at the 

GPO. 

Significant efforts were initiated during this fiscal year to procure and install a 

Congressional Record Full-Text Search and Retrieval System at the GPO. 

14 
Electronic Access 

for the 

Congressional Record 

Security and Support 

Services 

In January of 1986, GPO was directed by the Joint Committee on Printing 

to develop a system for electronic access and retrieval of the Congressional 

.Record. After conferring with industry experts, a request for proposal was 

issued in November 1986 stating the specific requirements for the system; a 

contract was awarded in June to Data Retrieval Corporation for the necessary 

software, which was delivered on September 28, 1987. 

GPO's Office of Information Resources Management (OIRM) formulated 

the specific requirements to be met by the contractor. For example, the data 

base will be cumulative for each Congress; the Record is printed daily when 

Congress is in session and averages about 31,168 pages per year. In 

addition, the entire data base, including Senate and House Proceedings, 

Extensions of Remarks, the Daily Digest, and the Congressional Record Index 

will be in an on-line mode for efficient and effective retrieval. 

"User-friendliness" is the key to many of the requirements set out by 

OIRM. The system will provide for searching by key word or phrase, by a 

cross reference Thesaurus, and by alphabetic "browsing." The user will also 

be able to page through the Record and Daily Digest in the exact paging 

·order as the printed version; cumulative daily indexing will also be available. 

In keeping with GPO's philosophy on full-text data base development, the 

system will facilitate the publishing through GPO of secondary printed 

products based on the individual needs of Members of Congress, Committees, 

and other Congressional offices. The system will also allow for the 

incorporation of Congressional Record text excerpts by authorized 

Congressional offices into secondary data bases. 

Enhancements were also made to the Executive Information System as well as 

to other major administrative ADP systems. As in the past, major OIRM 

resources were applied to Public Documents programs. The first phase of the 

IRS Order Fulfillment System was implemented. This system handles the data 

entry and order processing of IRS publications for tax practitioners. An 

estimated 85,000 orders are anticipated for this tax year. 

The Production and Procurement areas were provided with new systems and 

enhancements to better enable them to meet the mission requirements of the 

Federal Printing Program. The new online Automated Postal Card System was 

put into production in July, replacing a 12-year old batch system. This system 

keeps track of postal card requisitions for post offices throughout the United 

States, and of consolidated shipments of postal cards based on destination 

points. 

Fiscal year 1987 was also a productive year for Security and Support Services. 

Physical Security responsibilities increased as a result of new passport and 

postal card production security requirements. The procurement of new security 

equipment and the introduction of new physical security measures contributed 

to Security Service's ability to meet the challenges of an increased terrorist 

threat. Support Services continued to automate the administrative functions of 

the Office as well as to make economic changes to better serve the information 

and support needs of GPO management and employees. 

15 
Human Resources 

The Assistant Public Printer (Human Resources) is responsible for all personnel, 

labor-management relations, equal employment opportunity, and employee 

safety matters at GPO. This area includes the Policy and Evaluation Staff, 

Personnel Service, Labor and Employee Relations Service, Equal Employment 

Opportunity Service, and Occupational Health and Environmental Services. 

Throughout fiscal year 1987, the Labor Relations Branch, Labor and Employee 

Relations Service, conducted negotiations with the Joint Council of Unions 

on a new master agreement covering 13 bargaining units. The parties worked 

on new policies and procedures involving leave including a new type of leave 

to be called parental leave. New policies were also agreed upon in the areas of 

performance appraisal, corrective actions and union representation. 

In fiscal year 1987, there was a revived interest in apprentice training programs 

throughout the GPO. The decision was made to hire apprentices in the 

occupations of carpenter, electrician, machinist, painter, pipefitter, offset press 

feeder, bookbinder, and stationary engineer. In addition, a team of GPO 

employees visited the New Zealand Government Printing Office to study their 

Modular Apprentice Training program. Personnel is presently evaluating the 

program for application in the GPO. 

Extensive recruitment efforts were undertaken in a number of areas to fill certain 

hard-to-fill vacancies. Paid advertisements were used and recruitment brochures 

were developed, printed and distributed. A major effort also went into providing 

information to employees concerning the new Federal Employees' Retirement 

System (FERS). 

A new automated classification system has been developed and is presently 

being tested. Text was prepared and put into a data base for two occupational 

series-the GG-525 Accounting Technician series and GG- 11 02 Contracting 

series. Modifications and enhancements to the system are on-going. 

Equal Employment Opportunity Service staff members participated in on-site 

program reviews at GPO installations in Dallas, Denver, Pueblo, Atlanta, Boston, 

New York, and Philadelphia. The reviews included: assessment of 

implementation of EEO procedures, deficiencies, recommending corrective 

measures and providing technical assistance. 

The GPO Affirmative Action Plan and the Accomplishment Report of Affirmative 

Action for Minorities and Women covering fiscal year 1987 were submitted to 

the Equal Employment Opportunity Commission during the first quarter of the 

fiscal year. 

The Employee and Organizational Assistance Branch, Occupational Health and 

Environmental Services, conducted a number of surveys in an effort to improve 

the health and welfare of the workforce. Surveys were conducted of the 

workforce to solicit opinions regarding a potential smoking policy in the Central 

Office, and the quality of health services being made available to employees in 

the field. 

The Safety Branch initiated a new safety and health inspection data base during 

the fourth quarter of fiscal year 1987 and provided oversight for the installation 

of the new fire alarm, detection and communication system. 

16 
Financial Highlights 

Title 44 of the U.S. Code requires the U.S. Government Printing Office (GPO) to 

fulfill the printing and binding needs of the Federal Government and to 

distribute Government publications to the general public. GPO's printing and 

binding operations are accomplished through a central printing plant located at 

Washington, DC; 6 smaller regional printing plants; and the procurement of 

printing and binding through the central office, 14 regional offices, and 6 

smaller satellite offices. Superintendent of Documents operations include the 

sale of publications, distribution to depository libraries, reimbursable and 

statutory distribution, and the cataloging and indexing of all Government 

documents. 

All GPO activities are financed through a revolving fund, which is reimbursed 

by payments from customer agencies, sales made to the general public, and 

transfers from various appropriations. GPO's consolidated financial statements 

also include the activities and fund balances of the Congressional Printing and 

Binding and the Printing and Binding appropriations. These annual 

appropriations are used to reimburse GPO for costs incurred in performing 

printing and binding for the Congress and for the printing, binding, and 

'distribution of Government publications authorized to be distributed without 

charge to recipients designated by law. Reimbursements from the 

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

Results of GPO Operations 

GPO achieved a consolidated net income for fiscal year 1987 of $22.9 million, 

compared to $8.8 million for fiscal year 1986. Total consolidated revenue 

increased by $45 million in 1987 to $871 million, while total expenses also 

increased by $31 million to a balance of $848 million. The increase in expenses 

was mainly generated by the increased dollar volume in procured printing. For 

the sixth consecutive ·year, GPO's Sales of Publications Program continued to 

produce a healthy net income, more than doubling last year's $5.5 million 

figure. 

Printing and Binding Operations 

In fiscal year 1987 GPO's in-house and commercially procured products 

generated a revenue of $804.5 million, which is 89 percent of total GPO 

revenue. Revenue from commercially procured printing was $592 million, 

representing about 74 percent of the total dollar volume for printing and binding 

work. 

In-House Printing Operations 

GPO's in-house printing operations earned $6.7 million in net income this year 

compared to a net income of only $179,000 for 1986. Total revenue was 

$212.7 million compared to $205.5 million last year, while expenses amounted 

to $206 million against $205.3 million in 1986. 

Central Office and Regional Printing Procurement Operations 

GPO's printing procurement operations experienced solid gains in procured 

printing during 1987. Total revenue was $591.8 million, an increase of $28.9 

million or 5 percent over 1986, resulting in a net income of $4.8 million. 

17 
Financial Statements 

Consolidated Balance Sheet 

As of September 30, 1987, and 1986 (Notes 1 and 2) (in thousands of dollars) 

Assets 

Current Assets: 

Cash 

On-hand and in-transit 

Revolving Fund 

Appropriations 

Accounts receivable (Note 3) 

Inventories: 

Publications for sale, net (Note 4) 

Paper 

Materials and supplies 

Total Current Assets 

Property, Plant, and Equipment (Note 5): 

Land and buildings 

Equipment and building improvements 

Less: accumulated depreciation 

Net Property, Plant, and Equipment 

Total Assets 

1987 

$1,860 

94,564 

46,271 

236,186 

12,214 

12,415 

8,430 

$411,940 

18,648 

107,761 

126,409 

70,348 

56,061 

$468,001 

1986 

$1,370 

100,336 

49,539 

202,593 

11,664 

12,590 

8,314 

$386,406 

18,648 

101 ,965 

120,613 

65,174 

55,439 

$441,845 

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

18 
Liabilities and Investment 1987 1986 

Current Liabilities: 

Accounts payable (Note 6) $87,697 $80,084 

Advances from customers (Note 7) 35,115 35,492 

Accrued salaries, wages, benefits and other 

withholdings 10,038 9,370 

State and local payroll taxes 821 771 

Total Current Liabilities $133,671 $125,717 

Other Liabilities: 

Accrued annual leave 9,004 8,659 

Excess receipts from sales of 

publications, due U.S. Treasury 

(Note 8) 11,424 5,516 

Total Other Liabilities $20,428 $14,175 

Total Liabilities $154,099 $139,892 

Investment of U.S. Government: 

Appropriations: 

Unliquidated obligations 45,525 48,884 

Revolving Fund: 

Contributed capital (Note 9) 110,413 110,679 

Retained earnings (Note 1 0) 152,464 141,012 

Reserved for intra-office funding (Note 8) 5,500 1,378 

Total Revolving Fund $268,377 $253,069 

Total Investment $313,902 $301,953 

Total Liabilities and Investment $468,001 $441,845 

19 
-. 

Consolidated Statement of Revenue and Expenses 

by Function and Retained Earnings 

Fiscal Years 1987 and 1986 (Notes 1 and 2) (in thousands of dollars) 

Printing and Binding (Note 11) 

In-House 

Printing 

Revenue: 

Printing and Binding $212,718 

Sales of Publications 

Appropriations 

Reimbursements 

Total Revenue $212,718 

Expenses: 

Personnel compensation and 

benefits $137,888 

Travel and transportation 430 

Rents, communications and 

utilities 10,826 

Printing and reproduction 

Other services 2,511 

Supplies and materials 49,307 

Depreciation 5,060 

Publications sold 

Unsaleable publications 

Total Expenses $206,022 

Net Income $6,696 

Retained Earnings, Beginning of Fiscal Year 

Retained earnings before payable to U.S. Treasury 

Less: 

Purchased 

Printing Total 

$591,804 $804,522 

$591,804 $804,522 

$26,725 $164,613 

1,624 2,054 

2,739 13,565 

552,657 552,657 

1,246 3,757 

1,387 50,694 

670 5,730 

$587,048 $793,070 

$4,756 $11,452 

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

Retained Earnings, End of Fiscal Year 

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

20 
Information Dissemination 

Sales of Salaries 

Publi- and Total GPO 

cations Expenses Total Eliminations 1987 1986 

($31 ,825) $772,697 $736,637 

$73,448 $73,448 73,448 62,850 

$19,942 19,942 (372) 19,570 21 ,505 

4,931 4,931 4,931 4,806 

$73,448 $24,873 $98,321 ($32, 197) $870,646 $825,798 

$23,943 $9,529 $33,472 ($2,807) $195,278 $194,261 

1,002 250 . 1,252 3,306 2,901 :~ 

11 ,698 3,819 15,517 (597) 28,485 28,597 

1,407 9,348 10,755 (28,098) 535,314 511 '132 

1,815 807 2,622 (478) 5,901 4,276 

1,959 876 2,835 (217) 53,312 51 ,087 

122 244 366 6,096 6,013 

17,343 17,343 17,343 15,899 

2,751 2,751 2,751 2,786 

$62,040 $24,873 $86,913 ($32, 197) $847,786 $816,952 

$11,408 $11,408 $22,860 $8,846 

$141,012 $137,682 

$163,872 $146,528 

11,408 5,516 

$152,464 $141,012 

21 
Consolidated Statement of 

Changes in Financial Position 

Fiscal Years Ended September 30, 1987, and 1986 (Notes 1 and 2) 

(in thousands of dollars) 

1987 1986 

Funds Provided: 

Net Income $22,860 $8,846 

Add expenses not requiring working capital: 

Depreciation 6,096 6,013 

Total Funds Provided by Operations 28,956 14,859 

Book value of retired assets 46 29 

Appropriations 95,085 103,941 

Reimbursements 4,931 4,806 

Increase in accrued annual leave 345 306 

Total Funds Provided $129,363 $123,941 

Funds Applied: 

Purchase of fixed assets 7,030 8,977 -~ Funds returned to U.S. Treasury: 

From appropriations 8,758 23,546 

Public Law 99-177 reductions 4,469 

Printing and Binding 71,110 68,025 

Obligated appropriations (Note 12) 24,885 26,659 

Total Funds Applied $111,783 $131,676 

Increase (Decrease) in Working Capital $17,580 ($7,735) 

Changes in Working Capital 

Current Assets: 

Cash: 

On-hand and in-transit $490 $110 

Revolving Fund (5,772) 42,701 

Appropriations (3,268) (23,318) 

Accounts receivable 33,593 (27,176) 

Publications for sale 550 666 

Paper (175) 465 

Materials and supplies 116 357 

Current Liabilities: 

Accounts payable (7,613) (1 ,513) 

Advances from customers 377 851 

Accrued salaries, wages, benefits and other 

with holdings (668) (876) 

State and local payroll taxes (50) (2) 

Increase (Decrease) in Working Capital $17,580 ($7,735) 

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

22 
Status of Appropriated Funds 

Fiscal Years Ended September 30, 1987, and 1986 (Notes 1 and 2) 

(in thousands of dollars) 

Congressional Printing Salaries Total 

Printing and and Appropriated Funds 

and Binding Binding Expenses 1987 1986 

Status of 

Appropriations, 

Beginning of 

Fiscal Year $31,454 $2,428 $15,657 $49,539 $72,857 

Funds Provided: 

Initial Appropriations 62,000 10,700 22,385 95,085 103,941 

Intra-Office Funding 1,378 1,378 3,000 

Reimbursements 4,931 4,931 4,806 

Total Funds Provided $93,454 $13,128 $44,351 $150,993 $184,604 

Funds Applied: -. 

Printing and Binding 62,445 8,620 71,065 78,058 

Obligated 

appropriations 24,839 24,839 28,992 

Funds returned to U.S. 

Treasury 4,708 142 3,908 8,758 23,546 

Public Law 99-177 

reductions 4,469 

Total Funds Applied $67,153 $8,762 $28,747 $104,662 $135,065 

Status of 

Appropriations, 

End of 

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

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

23 
:~ 

Notes to Financial Statements* 

(1) Organization 

The Government Printing Office provides printing, binding, and distribution 

services to the Congress and Federal agencies and distributes publications to 

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

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

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

transfers from the Congressional Printing and Binding and Printing and Binding 

Appropriations. 

The Salaries and Expenses Appropriation is appropriated for necessary 

expenses incurred by the Superintendent of Documents' operations for 

depository library and other by-law distribution of publications, and for the 

cataloging and indexing of Government publications. 

(2) Summary of Significant Accounting Policies 

Principles of Consolidation-The consolidated financial statements 

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

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

recognized on the accrual basis of accounting following generally accepted 

accounting principles and the associated principles of fund accounting. 

Expense Allocations-General and administrative expenses have been 

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

general and administrative expenses were allocated to the various programs 

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

Revenue Recognition- Printing and binding revenue is recognized on the 

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

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

of services rendered. Revenue on work procured from commercial printers is 

recognized on constructive date of shipment or actual date of payment, 

whichever occurs first. Revenue for distributing and selling publications to the 

public is recognized when publications have been shipped, or when services 

have been performed. GPO guarantees prices on a large volume of in-house 

work. The estimated losses, if any, on work substantially completed during the 

fiscal year have been recorded in the appropriate period. 

Inventories- Publications for sale are valued using the weighted-average 

cost method, while paper, materials and supplies are valued using the movingaverage cost method. 

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

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

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

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

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

machinery and equipment and building improvements. Depreciation expense 

for machinery and equipment and building improvements is recovered from 

billings to customer agencies. Buildings and structures have been paid for from 

Legislative appropriations. Accordingly, depreciation is recorded but not 

reimbursed on these items. 

*As of September 30, 1987, and September 30, 1986 

24 
Intra-Office Funding-Salaries and Expenses Appropriation was funded in 

part by excess receipts derived from sales of publications. In Fiscal Year 1987, 

this type of funding provided $1,378,000 to the Appropriation. For Fiscal Year 

1988, the Legislative Branch Appropriation Bill (H.R. 2714), if approved, will 

provide the Salaries and Expenses Appropriation $5,500,000 from the sales of 

publications. 

Balanced Budget and Emergency Deficit Control Act of 1985, Public 

Law 99-177-As a result of this legislation, funds were sequestered during 

Fiscal Year 1986. For ease of presentation, reductions are referred to in the 

financial statements, accompanying notes, and schedules as Public Law 99- 177 

Reductions. 

Pensions- Government Printing Office employees are covered by the Civil 

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

Disability Insurance Fund or the Federal Employee Retirement Fund. 

Consequently, the GPO is responsible for withholding the required percentage 

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

contributions were $11 ,616,000 and $11 ,332,000 in 1987 and 1986, 

respectively. 

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

Claims Court at report date. The lawsuits stem from the termination of the 

contract for Program 600-S. Plaintiffs have claimed approximately $73 million 

plus attorney's fees and other associated costs. However, except in very narrow 

circumstances, once such claims enter into litigation, at either the District Court 

or Claims Court level, ultimate payment usually is disbursed from the judgment 

fund administered by the General Accounting Office. 

(3) Accounts Receivable 

Accounts receivable as of September 30, 1987, and 1986, is comprised of 

the following: 

Accounts Receivable 1987 1986 

Billed to Government Agencies $52,256,000 $40,984,000 

Unbilled completed work 132.404,000 118,585,000 

Unbilled work in process 50,1 66,000 42,082,000 

Other 1,360,000 942,000 

Totals $236,186,000 $202,593,000 

Other accounts receivable for 1987 include non-trade promissory notes 

from the Refectory Cafe Limited of $151 ,000. At the end of the prior year, this 

note was $165,000. 

25 
:~ 

(4) Publications for Sale, Net 

Publications for sale, net as of September 30, 1987, and 1986, are 

comprised of the following: 

Publications for sale 

Allowance for unsaleable publications 

Publications for sale, net 

(5) Property, Plant, and Equipment 

1987 

$15,614,000 

(3,400,000) 

$12,214,000 

1986 

$14,759,000 

(3,095,000) 

$11,664,000 

Property, plant, and equipment as of September 30, 1987, and 1986, is 

comprised of the following: 

1987 1986 

Acquisition Accumulated Net Net 

Value Depreciation Book Value Book Value 

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

Buildings 8,656,000 $8,472,000 184,000 283,000 

Building 

improvements 31,292,000 14,946,000 16,346,000 16,827,000 

Leasehold 

improvements 759,000 149,000 610,000 507,000 

Plant machinery 

and equipment 66,179,000 41,303,000 24,876,000 24,308,000 

Office machinery 

and equipment 6,525,000 4,396,000 2,129,000 3,017,000 

Computer software 309,000 261,000 48,000 86,000 

Furniture and 

fixtures 256,000 187,000 69,000 65,000 

Motor vehicles 707,000 634,000 73,000 120,000 

Capital 

improvements in 

progress 1,734,000 1,734,000 234,000 

Totals $126,409,000 $70,348,000 $56,061 ,000 $55,439,000 

26 
(6) Accounts Payable 

Accounts payable as of September 30, 1987, and 1986, is comprised of 

the following: 

Accounts Payable 1987 1986 

Commercial printing $75,007,000 $69,233,000 

Government 7,312,000 6,490,000 

Other 5,378,000 4,361,000 

Totals $87,697,000 $80,084,000 

(7) Advances from Customers 

Advances from customers as of September 30, 1987, and 1986, are 

comprised of the following: 

Advances 

Advanced billings to customer agencies 

for printing services 

Customer deposits for publications 

Subscriptions, including prepaid subscription 

service and unearned subscription revenue 

Undelivered publication orders 

Totals 

27 

1987 

$5,501,000 

8,148,000 

19,263,000 

2,203,000 

$35,115,000 

1986 

$8,125,000 

7,606,000 

17,985,000 

1,776,000 

$35,492,000 
(8) Amount Due U.S. Treasury 

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

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

U.S. Treasury through September 30, 1987, was determined as follows: 

Amount due U.S. Treasury, September 30, 

1986 

Amount requested to be used to finance 

Fiscal Year 1988 Salaries and Expenses 

Appropriation from intra-office funding 

Fiscal Year 1987 Excess Receipts 

Amount Due U.S. Treasury, 

September 30, 1987 

(9) Contributed Capital 

$5,516,000 

(5,500,000) 

11,408,000 

$11 ,424,000 

Contributed capital as of September 30, 1987, and 1986, was derived 

from the following: 

Contributed Capital 1987 1986 

Beginning net worth when the Revolving 

Fund was established $33,807,000 $33,807,000 

Book value of contributed buildings 

and land 613,000 712,000 

Appropriations for improvements to air 

conditioning and electrical systems 12,900,000 12,900,000 

Appropriations for working capital and site 

acquisition 62,600,000 62,600,000 

Donated equipment 493,000 660,000 

Totals $110,413,000 $110,679,000 

U. S. Government Printing Office : 1988 0 - 206-503 : QL 2 

28 
(1 0) Retained Earnings 

In Fiscal Year 1986, the GPO contracted to purchase a parcel of land 

adjoining the Central Office complex. The amount of retained earnings still 

restricted by this purchase commitment is approximately $9,500,000. 

(11) Printing and Binding 

In-house printing and binding and purchased printing net income or loss for 

central and regional operations for September 30, 1987, and 1986, are as follows: 

1987 1986 

In-house printing 

Central $7,668,000 $900,000 

Regional (973,000) (721 ,000) 

Subtotal 6,695,000 179,000 

Purchased printing 

Central 4,824,000 2,372,000 

Regional (67,000) 779,000 

Subtotal 4,757,000 3,151 ,000 

Totals $11,452,000 $3,330,000 

(12) Expended Appropriations 

At September 30, 1987, and 1986, the expended appropriation for current and 

prior year's appropriations are as follows: 

Programs 1987 1986 

Depository library distribution $15,897,000 $18,043,000 

Cataloging and indexing 2,357,000 2,330,000 

By-law distribution 977,000 1,105,000 

International exchange 295,000 

Distribution for other agencies 5,359,000 5,181 ,000 

Totals $24,885,000 $26,659,000 

~