2014 Annu a l Repo r t

with Financial Year in Review

U .S. G O V E R N M ENT PU B L ISHI N G O FFIC E

“

”

Publishing defines 

a broad range of 

services that includes 

print, digital, and 

future technological 

advancements.

Davita Vance-Cooks

Director of the U.S. Government Publishing Office

732 North Capitol Street, NW, Washington, DC 20401-0001 www.gpo.gov | facebook.com/USGPO | twitter.com/usgpo 

Keeping America Informed OFFICIAL | DIGITAL | SECURE

March 16, 2015

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 Publishing 

Office (GPO) for the fiscal year ending September 30, 2014. The report contains the results 

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

Respectfully submitted,

DAVITA VANCE-COOKS

Director

U.S. Government Publishing Office
2 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT

Like other Federal agencies, GPO 

shuttered most of its operations 

during the two-week Government 

shutdown that began the year, 

though we remained minimally 

staffed to produce the essential 

information products required by 

Congress and Federal agencies 

during that period. In the months 

that followed, one of our principal 

tasks was to offset the loss of 

revenue sustained as a result of 

the October 2013 shutdown and 

the impact of sequestration on our 

customer agencies.

We implemented a range of 

cost-saving measures, including 

the successful conduct of a buyout 

program that targeted 100 positions 

for reduction, primarily in our 

overhead areas. Other measures 

included continuing restraints 

on other overhead costs and the 

completion of wage negotiations 

with GPO’s unions that yielded 

agreements holding wage increases 

to the rate of those paid to other 

Civil Service employees.

As a result, I am pleased to 

report that we were able to finish 

FY 2014 with positive net income 

of $6.8 million on $696.3 million in 

revenues, net of funds collected for 

capital improvements in passport 

operations and the impact of our 

long term liability for workers’ 

compensation under the Federal 

Employees Compensation Act 

(FECA).

Contributing to our financial 

efforts was improved customer 

service as registered in the latest 

customer satisfaction survey. 

Focusing on GPO’s products, 

services, and programs, the 

cost-effectiveness of services, and 

satisfaction with our Web site 

and customer service, the survey 

showed that 91% of our Federal 

agency customers are satisfied with 

overall service from their primary 

GPO location, 90% are likely to 

recommend GPO to a colleague, 

and 90% say they do not believe 

they can beat or match GPO 

pricing.

We also continued to expand 

publishing options in both digital 

and print for Congress and Federal 

agencies. For example, we opened 

our eBook program to Federal 

depository libraries, making these 

types of agency publications 

available to a broader segment 

of the public. Working with the 

House of Representatives Bulk 

Data Task Force and the Library 

of Congress, we began making 

summaries of House bills available 

to the public in XML bulk data 

format, and by year’s end there 

was an agreement with the Senate 

to make their bill data available in 

XML bulk data format as well.

During the year, we reconfigured our facilities to take 

delivery of equipment that will be 

used to produce the next generation passport. We also installed 

a new zero make-ready press, 

whose high efficiency will reduce 

the cost of printed congressional 

hearings, the Code of Federal 

Regulations, and other Government 

publications.

Throughout FY 2014, we 

continued our transformation from 

a print-centric to a digital-centric 

operation. Information retrievals 

from our Federal Digital System 

(FDsys, at www.FDsys.gov) topped 

one billion since beginning 

operations just 5 years ago, and 

new collections were added 

ranging from audio books to digital 

F isca l y e ar 2014 w as a y e ar o f cha llen g e 

A Message from GPO Director Davita Vance-Cooks
U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT 3

editions of historic publications 

like the Warren Report on the 

assassination of President Kennedy 

and the Civil Rights Act of 1964.

During the fiscal year, FDsys 

made possible the establishment 

of the first digital-only Federal 

depository library, with others 

likely to follow. Thanks to a 

partnership we forged with the 

Digital Public Library of America 

(DPLA), more than 150,000 records 

from GPO’s digital Catalog of 

Government Publications are now 

also available to the public through 

the DPLA’s Web site.

At the end of the fiscal year, we 

were one of 5 institutions named 

by the Library of Congress and 

the National Institute of Museum 

and Library Services to be part of 

a n d cha n g e .

the National Digital Stewardship 

Residency program, under which 

we are now preparing to become 

the first Federal agency certified as 

a Trustworthy Digital Depository 

for Government information. 

Accompanying these efforts was 

our announcement that we are 

moving to cloud technology 

beginning in 2015, the first legislative branch agency to do so.

Since assuming leadership of 

GPO, I have focused on improving 

communications with GPO’s 

employees, believing that the 

dedicated men and women who 

carry out the critically important 

task of Keeping America Informed

deserve better opportunities to be 

heard by GPO’s management and 

to have their concerns addressed. 

Among these channels is the Office 

of Personnel Management’s annual 

Federal Employee Viewpoint 

Survey, which we use as one 

method to help identify and 

address employee concerns.

Early in the fiscal year, I was 

especially pleased to learn that 

GPO was named one of the best 

places to work among mediumsized Federal agencies, according 

to rankings produced by the 

Partnership for Public Service 

from data provided by the 2013 

Viewpoint Survey. The survey’s 

data also led the Partnership to 

announce that GPO was one of the 

most innovative Federal agencies.

Our ongoing efforts to address 

the concerns and conditions that 

lead to complaints being filed with 

GPO’s Business Operations (BusOps) Committee, composed of the heads of GPO’s business units and executive staff, meets weekly 

to guide the agency’s functions and activities.
4 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT

GPO’s Office of Equal Employment 

Opportunity also were reflected in 

FY 2014, a year when data showed 

the fewest number of formal 

complaints filed in the past decade.

GPO began FY 2014 as the 

Government Printing Office, and 

as its chief executive officer I held 

the official title of Public Printer. 

From the moment that GPO first 

opened its doors on March 4, 1861, 

the same day that Abraham Lincoln 

was inaugurated as President, 

successive generations of the men 

and women of the Government 

Printing Office compiled an 

unparalleled record of service to 

the Nation. We used continually 

evolving print technologies to 

produce every great American 

state paper from the Emancipation 

Proclamation forward, and a 

myriad of other publications 

along the way, for Congress, the 

President, Federal agencies, and 

the courts, while ensuring their 

efficient and equitable distribution 

to the public to Keep America 

Informed. This is a history of 

which GPO will always justifiably 

be proud.

For many years, however, 

GPO has not been solely focused 

on printing ink on paper. In the 

1970s our typesetting systems were 

computerized and in 1994 we 

began disseminating digital content 

online. Our digital technologies, 

digital products, and digital 

services have become so integral 

to our operations that our official 

designation as a printing office was 

no longer accurate or meaningful. 

We have reached a point in which 

our name must catch up with who 

we are and what we do. Now is 

the time for a new name for the 

digital age. 

The information needs of 

Congress, Federal agencies, and 

the public have evolved beyond 

print, and GPO has transformed 

itself to meet its customers’ 

needs. Publishing defines a broad 

range of services that includes 

not just print but digital and an 

ever-expanding array of future 

technological advancements. The 

name Government Publishing 

Office better reflects the services 

that GPO provides today and will 

be called on to provide tomorrow.

I conclude this message as 

the first Director of the U.S. 

Government Publishing Office, so 

named by the Consolidated and 

Continuing Appropriations Act 

for FY 2015 that was passed by 

Congress and signed into law by 

President Obama in December 

2014. It is a change that was 

endorsed in the 2013 report on 

GPO by the National Academy 

on Public Administration. It is 

a change that I wholeheartedly 

supported in testimony on my 

confirmation before the Senate and 

in oversight and appropriations 

hearings before the House and 

Senate in 2013 and 2014.

I deeply appreciate the efforts 

of the Members of Congress and 

President Obama for their support 

of our digital transformation. With 

pride in our past and confidence in 

our future, under our new 

name we will continue to meet 

the information needs of Congress, 

Federal agencies, and the public 

and carry out our mission of 

Keeping America Informed.

Davita Vance-Cooks

Director

U.S. Government Publishing Office

March 2015
U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT 5

During hearings on her confirmation as the head of GPO in 

June 2013 before the Senate Rules 

and Administration Committee 

and in testimony before an 

oversight hearing of the House 

Administration Committee in 

December of that year, Davita 

Vance-Cooks said, “It’s time for our 

name to catch up with who we 

are and what we do. It’s time for a 

new name for the digital age.”

The essential purpose of GPO 

has always been to create the 

information products and services 

required by Congress and Federal 

agencies and distribute them to 

the public—in other words, to 

carry out the informing function 

that is an essential component of 

Government in a democracy.

GPO’s performance of this 

function is traceable to the 

requirement in Article I of the 

Constitution that “each House shall 

keep a journal of its proceedings 

and from time to time publish the 

same,” and it is a function that we 

recognize today in our mission 

statement: Keeping America 

Informed.

From the time GPO opened in 

1861 to the late twentieth century, 

the various technologies used for 

printing were the most effective 

and economical way the informing 

function could be performed. 

Throughout that period, GPO 

continually adopted improvements 

to lower the cost and improve 

the productivity of Government 

printing, moving from hand-set to 

machine typesetting, from slower 

to high-speed presses, and from 

hand to automated bookbinding. 

These changes were significant for 

their time.

Yet they pale by comparison 

with the transformation that 

accompanied our incorporation of 

electronic information technologies, 

which began over 50 years ago in 

1962 when the Joint Committee 

on Printing directed the agency 

to develop a new system of 

computer-based composition. 

That order led to the development 

of GPO’s first electronic photocomposition system, which by 

the early 1980s had completely 

supplanted machine-based hot 

metal typesetting.

G PO : A N ew Nam e f o r t h e D igi t a l A g e
6 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT

Subsequently, with the 

enactment of the GPO Electronic 

Information Access Enhancement 

Act in 1993 (Public Law 103-40), 

the databases generated by our 

composition system were uploaded 

to the Internet via GPO’s first Web 

site, GPO Access, vastly expanding 

the agency’s information dissemination capabilities. Those functions 

continue today with our Federal 

Digital System, which provides free 

public access to nearly one million 

Government titles in digital format.

The enactment of Public Law 

103-40 fundamentally changed 

GPO’s business model. Since that 

time, we have been undergoing 

a transformation from a printing 

operation to a publishing operation 

in which the management of 

the life cycle of information 

content—including ingest, storage, 

maintenance, and replication in a 

variety of format options, including 

both digital and print—represents 

the focus of our work.

As a result of these sweeping 

changes, GPO is now fundamentally different from what it was 

as recently as a generation ago: 

smaller, leaner, and equipped with 

digital production capabilities that 

are the bedrock of the information 

systems relied upon daily by 

Congress, Federal agencies, and the 

public to ensure open and transparent Government in the digital 

era. In the digital environment, 

GPO’s transformation is continuing 

with the development of new ways 

of delivering Government information, including mobile apps and 

bulk data download files.

Today, GPO is no longer just for 

printing, a finding that was underscored by the National Academy of 

Public Administration in a study of 

GPO commissioned by Congress in 

2011 and released in January 2013, 

entitled Rebooting the Government 

Printing Office: Keeping America 

Informed in the Digital Age.

In that report, the Academy 

said, “In the digital age, GPO’s 

core mission of authenticating, 

preserving, and distributing Federal 

information remains critically 

important to American democracy.” 

The Academy said that “the Federal 

Government needs to establish a 

broad government-wide strategy to 

manage digital information,” and 

In September 2014, GPO took delivery of a new high efficiency, zero make-ready press to produce congressional hearings, the 

Code of Federal Regulations, and other products.
U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT 7

that “GPO has a critical role to play 

in developing a government-wide 

strategy that...effectively provides 

information to current and future 

generations.” To carry out that role, 

we believe GPO needs a name that 

effectively conveys who we are 

and what we do.

Modern publishing operations 

provide a suite of services to 

ensure access to the information 

they disseminate, from conventional printing to eBooks, digital 

publishing, mobile access, social 

media, and other strategies. All 

of these services are provided by 

GPO today. Yet with “printing” as 

our middle name, our expertise 

in these areas and the availability 

of these services from GPO is 

obscured from Congress, Federal 

agencies, and the public.

In the digital information 

age, for example, Members of 

Congress and the public quite 

naturally question the need for 

a Government Printing Office 

when the same information is 

available online (answer: GPO puts 

the information online). Federal 

agencies may not recognize that 

GPO represents the most effective 

means of getting their information 

disseminated to the public when 

they think the agency is limited 

to just printing. The public may 

not recognize the GPO as the 

single rich source it has become 

for free access to vast range of 

information in digital formats from 

all three branches of the Federal 

Government. 

With so much of the 

Government’s information being 

published digitally, and with GPO’s 

products, services, processes, and 

employees now so heavily invested 

in digital technology, the time has 

come for our name to change. Our 

current name reflects a century 

and a half of proud tradition 

and history, which I respectfully 

embrace. But I also acknowledge 

that it is limiting. 

Our current name does not 

adequately describe who we are. 

It does not adequately describe 

what we do. We are so much 

more than that. We are no longer 

the Government Printing Office. 

We are the Government 

Publishing Office. 

GPO’s popular annual Open House for Federal agency customers drew attendance from across the Federal Government 

for presentations on the variety of digital and print publishing solutions GPO offers.
8 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT

GPO is the OFFICIAL, DIGITAL, 

SECURE resource for producing, 

procuring, cataloging, indexing, 

authenticating, disseminating, 

and preserving the official information products of the Federal 

Government.

Under Title 44 of the U.S. 

Code, GPO is responsible for the 

production and distribution of 

information products for all three 

branches of the Government, 

including the official publications 

of Congress and the White House, 

U.S. passports for the Department 

of State, and the official publications of other Federal agencies and 

the courts.

Once primarily a printing 

operation, we are now an 

integrated publishing operation 

and carry out our mission using an 

expanding range of digital as well 

as conventional formats. Congress 

and the President recognized 

this change in our operations in 

the Consolidated and Continuing 

Appropriations Act of FY 2015 

(P.L. 113-235), which contains a 

provision redesignating GPO’s 

official name as the Government 

Publishing Office. GPO currently 

employs about 1,700 staff.

Along with sales of publications 

in digital and tangible formats to 

the public, GPO supports openness 

and transparency in Government 

by providing permanent public 

access to Federal Government 

information at no charge through 

our Federal Digital System (FDsys, 

at www.fdsys.gov), which today 

makes more than 1 million Federal 

titles available online from both 

GPO and links to servers in 

other agencies. In FY 2014 FDsys 

averaged 36 million retrievals per 

month, with a spike up to 49.5 

million during the Government 

shutdown of October 2013. We 

also provide public access to 

Government information through 

partnerships with approximately 

1,200 libraries nationwide participating in the Federal Depository 

Library Program.

In addition to GPO’s Web site, 

www.gpo.gov, we communicate 

with the public routinely via 

Facebook http://www.facebook.

com/USGPO, Twitter twitter.com/

USGPO, YouTube http://www.

youtube.com/user/gpoprinter, 

and Pinterest http:// pinterest.com/

usgpo/.

History 

From the Mayflower Compact to 

the Declaration of Independence 

and the papers leading to the 

creation and ratification of the 

Constitution, America is a nation 

based on documents, and our 

governmental tradition since 

then has reflected that fact. 

Article I, section 5 of the 

Constitution requires that “each 

House shall keep a journal of 

its proceedings and from time 

to time publish the same.”

After years of struggling with 

various systems of print contracting 

that were beset with scandal and 

corruption, in 1860 Congress 

created the Government Printing 

Office as its official printer. GPO 

first opened its doors for business 

on March 4, 1861, the same day 

Abraham Lincoln was inaugurated 

as the 16th President.

Since that time, GPO has 

produced and distributed 

the official version of every 

great American state paper 

and an uncounted number of 

other Government publications, documents, and forms. 

These documents include the 

Emancipation Proclamation, 

the legislative publications and 

acts of Congress, Social Security 

cards, Medicare and Medicaid 

information, census forms, tax 

forms, citizenship forms, passports, 

military histories ranging from the 

Official Records of the War of the 

Rebellion to the latest accounts of 

our forces in Afghanistan, the 9/11 

Commission Report, Presidential 

inaugural addresses, and Supreme 

Court opinions. This work goes 

on today, in both digital as well as 

print formats.

Technology Transformation 

GPO has continually transformed 

itself throughout its history by 

adapting to changing technologies. 

In the ink-on-paper era, this meant 

moving from hand-set to machine 

typesetting, from slower to highspeed presses, and from hand 

to automated bookbinding. 

These changes were significant 

for their time.

Th e U .S. Go v e r n m ent P u b l ishi n g Offic e (G PO )
U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT 9

Yet they pale by comparison 

with the transformation that 

accompanied our incorporation 

of electronic information 

technologies, which began over 50 

years ago in 1962 when the Joint 

Committee on Printing directed the 

agency to develop a new system 

of computer-based composition. 

That order led to the development 

of GPO’s first electronic photocomposition system, which by 

the early 1980’s had completely 

supplanted machine-based hot 

metal typesetting.

Following the enactment of 

the GPO Electronic Information 

Access Enhancement Act in 1993, 

the databases generated by our 

composition system were uploaded 

to the Internet via GPO’s first Web 

site, GPO Access, vastly expanding 

the agency’s information dissemination capabilities. Those functions 

continue today with FDsys on a 

more complex and comprehensive 

scale.

While transforming to an 

increasingly digital footing, GPO 

continues to provide an array 

of printing services to support 

the needs of Congress, Federal 

agencies, and the public. GPO is 

retooling its print operations to 

utilize a smaller, more flexible, 

more digitally-based equipment 

profile than previously. In FY 

In April 2014, GPO participated in the Third Science and Engineering Festival at the 

Walter Washington Convention Center in Washington, DC. Staffed by volunteers 

from Security and Intelligent Documents and other employees, GPO’s booth featured 

several interactive demonstrations. GPO produced a mock passport brochure to help 

students understand how we use secure printing techniques and features to produce 

the U.S. passport for the Department of State and secure credentials for other agencies. GPO was one of more than 1,000 exhibitors at the three-day expo, which was 

visited by more than 325,000 students, parents, and teachers.
10 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT

2014 we took delivery of a new 

zero make-ready press to support 

congressional and Federal agency 

publishing requirements, which 

will eventually replace three aging 

presses that have been in place 

since 1979. We are continually 

reviewing product and equipment 

options to ensure that our 

publishing activities are conducted 

with the most efficient, effective 

technologies available.

As a result of these sweeping 

technology changes — digital 

products, digital equipment, 

and digital processes — GPO 

is now fundamentally different 

from what it was as recently as 

a generation ago. It is smaller, 

leaner, and equipped with digital 

production capabilities that are 

the bedrock of the information 

systems relied upon daily by 

Congress, Federal agencies, and 

the public to ensure open and 

transparent Government in the 

digital era. As we prepare GPO 

for the Government information 

environment and technology 

challenges of the future, our 

transformation is continuing with 

the development of new ways 

of delivering Government information, including mobile apps and 

bulk data download files.

Strategic Vision 

GPO is continuing its transformation from a print-centric to 

a content-centric publishing 

operation. Our implementation of a 

digital transformation is consistent 

with the goals outlined in President 

Obama’s Roadmap for a Digital 

Government (Digital Government: 

Building a 21st Century Platform 

to Better Serve the American People, 

May 2012). It is also consistent with 

the recommendations submitted 

by the National Academy of 

Public Administration (Rebooting 

the Government Printing Office: 

Keeping America Informed in 

the Digital Age, January 2013) 

regarding GPO’s transition to a 

digital future. 

In the years ahead, GPO will 

continue to develop an integrated, 

diversified product and services 

portfolio that focuses primarily on 

digital. Although industry experts 

predict tangible print will continue 

to be required because of official 

use, archival purposes, authenticity, 

specific industry requirements, and 

segments of the population that 

either have limited or no access 

to digital formats, we recognize 

In February 2014, 84 employees from units throughout GPO graduated from the Leadership Evaluation and Development 

Program’s (LEAD) Class of 2013. The LEAD Program is open to all GPO employees and focuses on three attributes of great 

leaders: inspiration, motivation, and accountability.
U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT 11

that the volume of tangible print 

that is requisitioned from GPO 

is declining and will continue to 

decline.

Strategic Plan

GPO’s strategic plan, which is 

available for public review at 

http://www.gpo.gov/about/, is built 

around four goals: satisfying our 

stakeholders, offering products and 

services, strengthening our organizational foundation, and engaging 

our workforce. The plan provides 

the blueprint for how GPO will 

continue to achieve its mission of 

Keeping America Informed with an 

emphasis on being Official, Digital, 

Secure. GPO’s senior managers 

convene at the beginning of the 

fiscal year to review the plan and 

approve it before it is issued. 

GPO’s customers understand 

technological change and are 

increasingly demanding digital 

solutions. Accordingly, it is 

important that GPO fosters an 

environment that embraces change 

and innovation, which leads 

to new products and services, 

new methods, and new ways 

of thinking. There has been an 

exponential growth in digital 

requirements by Congress and 

Federal agencies. Moreover, the 

public – including the library 

and Government information 

user communities – has signaled 

its strong desire for increased 

access to Government information 

digitally.

GPO has changed to anticipate 

and accommodate those requirements. The content received from 

Congress and Federal agencies 

needs to be managed through a 

life cycle process that supports 

the primary requirement to make 

the digital version of publications 

permanently available online, and 

to print only when required or 

otherwise necessary. This policy 

is consistent with the President’s 

executive order of November 2011 

dealing with printing.

In transforming its business 

model, GPO is focusing on 

managing content for customer 

and public use both today and 

tomorrow. GPO uses its extensive 

experience and expertise with 

digital systems to provide both 

permanent public access to 

Government information in a 

variety of formats and the most 

efficient and effective means for 

printing when required, all within 

a secure setting that is responsive 

to the customer’s needs.
12 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT

Information is the lifeblood of 

the congressional process. Bills, 

amendments, resolutions, hearings, 

committee reports, committee 

prints, and the record of floor 

proceedings contained in the 

Congressional Record – all these 

are essential to the conduct of 

legislative business on Capitol 

Hill. Without them, there would 

be no record of business and the 

legislative process would grind 

to a halt. To produce congressional products under the close 

guidance and control of the House 

of Representatives and the Senate 

is why GPO was originally established, and this work continues as 

the agency’s primary mission.

For the Clerk of the House, 

the Secretary of the Senate, and 

the committees of the House 

and the Senate, GPO publishes 

the documents and publications 

required by the legislative and 

oversight processes of Congress in 

digital and tangible formats. This 

includes the daily Congressional 

Record, bills, reports, legislative 

calendars, hearings, committee 

prints, and documents, as well 

as stationery, franked envelopes, 

memorials and condolence books, 

programs and invitations, phone 

books, and the other products 

needed to conduct the business 

of Congress. We also detail expert 

staff to support the publishing 

requirements of House and 

Senate committees and congressional offices such as the House 

and Senate Offices of Legislative 

Counsel. We work with Congress 

to ensure the provision of these 

services under any circumstances.

Today the activities associated 

with creating congressional 

information databases comprise the 

majority of the work funded by our 

annual Congressional Publishing 

Appropriation (formerly known 

as the Congressional Printing 

and Binding Appropriation). Our 

advanced digital authentication 

system, supported by public key 

infrastructure (PKI), is an essential 

component for assuring the digital 

security of congressional publications. The databases we build are 

made available for providing access 

to congressional publications in 

digital formats as well as their 

production in tangible formats. 

GPO’s congressional information databases also form 

the building blocks of other 

information systems supporting 

Congress. For example, they are 

provided directly to the Library of 

Congress to support its Congress.

gov system as well as the legislative information systems the 

Library makes available to House 

and Senate offices. We work with 

the Library to prepare summaries 

and status information for House 

and Senate bills in XML bulk data 

G PO and Congress

5 0

100

150

200

250

300

1980 1985 1990 1995 2000 2005

CONGRESSIONAL PRINTING AND BINDING APPR OPRIATION

FY 1980 – FY 2 01 5

Millions of Dollars

Appropriation

In Constant Dollars

2010

350

2015

2015

Congressional Publishing Appropriation | FY 1980 – FY 2015
U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT 13

format. We are also collaborating 

with the Library on the digitization 

of historical printed documents, 

such as the Congressional Record, 

to make them more broadly 

available to Congress and the 

public.

GPO Cuts the Cost of 

Congressional Work 

The use of electronic information 

technologies by GPO has been a 

principal contributor to lowering 

the cost, in real economic terms, of 

congressional information products. 

In FY 1980, as we replaced hot 

metal typesetting with electronic 

photocomposition, the appropriation for Congressional Publishing 

was $91.6 million, the equivalent in 

today’s dollars of $263 million. By 

comparison, our approved funding 

for FY 2015 is $79.7 million, a 

reduction of more than two-thirds 

in constant dollar terms.

Productivity increases resulting 

from technology have enabled 

us to make substantial reductions 

in staffing requirements while 

continuing to improve services 

for Congress. In FY 1980, GPO 

employment was 6,450. Today, we 

have 1,695 employees on board, 

representing a reduction of 4,755, 

or more than 70%. This is the 

smallest GPO workforce of any 

time in the past century.

Highlights of FY 2014 

Congressional Work 

In FY 2014, essential staff from 

GPO remained on duty throughout 

the Government shutdown 

in October 2013 to meet the 

publishing requirements of 

Congress throughout the shutdown 

period without any interruption 

or reduction in service. During 

the year, we published the 

Congressional Directory for the 

113th Congress under the direction 

of the Joint Committee on Printing, 

and late in the year we released 

the New Member Pictorial Directory 

for the 114th Congress as prepared 

by the Committee on House 

Administration. We also worked 

with the Office of the Clerk of 

the House to prepare an eBook 

version of Hispanic Americans in 

Congress 1822-2012.

At the direction of the House 

Appropriations Committee, and 

in support of the House’s task 

force on bulk data, in 2014 we 

began work with the Library of 

Congress to make House bill 

status information prepared 

by the Congressional Research 

Service available in XML bulk data 

format. Late in the year our work 

in making legislative information 

available in XML bulk data format 

was expanded to include Senate 

bills, at the request of the Secretary 

of the Senate.

GPO is a regular participant 

and presenter at the House 

Legislative Data and Transparency 

Conference, along with staff from 

other legislative branch agencies, 

data users, and transparency 

advocates.

Many GPO employees worked on the 

New Member Pictorial Directory for the 

114th Congress.
14 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT

Federal agencies are major 

generators of information in the 

United States, and GPO produces 

their information products for 

official use and public access. 

Federal agencies and the public 

also rely on a growing variety of 

secure credentials produced by 

GPO, including travelers holding 

U.S. passports, members of the 

public who cross our borders 

frequently, and other users. Our 

digital systems support key Federal 

agency publications, including 

the annual Budget of the U.S. 

Government and, most importantly, 

the Federal Register and associated 

products. As it does for congressional documents, our digital 

authentication system, supported 

by public key infrastructure (PKI), 

assures the digital security of 

agency documents.

GPO’s Official Journals of 

Government business unit acts 

as the liaison between the Office 

of the Federal Register and the 

agency, while our Plant Operations 

business unit provides in-plant 

production services for those 

requirements. The agency’s 

Customer Services business unit 

provides publishing support to 

Federal agencies primarily by 

contracting out to the private 

sector printing and information 

product industry. The Customer 

Services business unit is conducted 

out of Washington, D.C., and also 

from 15 regional offices around the 

United States.

Highlights of FY 2014 

Agency Operations 

For the past three years we have 

made the Budget of the U.S. Government available as a mobile app.

One of GPO’s major agency 

customers is the Office of the 

Federal Register (OFR), which 

produces the daily Federal Register 

and related publications such as 

the Code of Federal Regulations, 

and other key information products 

like the Daily Compilation of 

Presidential Documents and the 

Public Papers of the President. GPO 

produces these publications in 

both digital and tangible formats.

Since 1926 GPO has been 

responsible for producing the U.S. 

passports for the Department of 

State. At one time, no more than a 

conventionally printed document, 

the U.S. passport since 2005 has 

incorporated a digital chip and 

antenna array capable of carrying 

biometric identification data. With 

other security printing features, 

this document – that we produce 

in Washington, DC, as well as a 

secure remote facility in Mississippi 

– is now the most secure identification credential obtainable. In 

FY 2014, we made changes to 

our facilities to begin installing 

equipment that will be used to 

produce the next-generation 

passport, an even more secure 

document.

Since 2008, we have served 

as an integrator of secure 

identification smart cards to 

support the credentialing requirements of Federal agencies and 

other Government entities. Our 

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). 

We anticipated that the 

sequester implemented during 

FY 2013 would negatively impact 

funding for printing and other 

information products ordered 

through GPO. In response, we 

implemented increased controls 

on spending, reprioritized capital 

investment plans, and closely 

monitored costs. GPO was able 

to continue its support of Federal 

agency publishing and information 

product requirements without any 

interruption or reduction in service.

During the October 2013 

Government shutdown, GPO 

initially scaled back support 

of Federal agency requirements consistent with Office of 

Management and Budget and 

related requirements for a lapse 

in funding. However, as the 

shutdown continued and some 

agencies returned to business 

(such as the Department of 

Defense), GPO responded to 

their essential requirements by 

increasing resources accordingly. 

Additionally, GPO provided public 

access via FDsys to health and 

safety regulatory information 

issued by the Office of the Federal 

Register during the shutdown.

GPO reported positive results 

on a customer satisfaction survey 

of approximately 500 Federal 

agencies that was administered 

in FY 2014. The survey focused 

on GPO’s products, services, and 

programs, the cost-effectiveness 

of services, and satisfaction with 

GPO’s Web site and customer 

service. Some of the results 

included:

n	 91% of customers are satisfied 

with overall service from their 

primary GPO location 

G PO and Federal Agencies
U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT 15

n	 90% are likely to recommend 

GPO to a colleague 

n	 90% say they do not believe they 

can beat or match GPO pricing

The survey was conducted in 

support of GPO’s Strategic Plan, 

which emphasizes a customercentric approach through agencywide procedures, policies, and 

activities implemented to ensure 

GPO is meeting customers’ needs 

and exceeding their expectations. 

Partnership with Industry

Other than congressional and 

inherently governmental work 

such as the Federal Register, the 

Budget, and secure and intelligent documents, we produce 

virtually all other Federal agency 

information products via contracts 

with the private sector printing 

and information product industry 

issued by our central office and 

regional GPO offices around the 

country. In FY 2014, this work 

amounted to approximately $289.3 

million.

Approximately 16,000 individual 

firms are registered to do business 

with GPO, 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.

The decline in print 

government-wide has reduced 

the amount of work we produce 

through this partnership, the result 

of the ongoing transformation 

of Federal agency information 

requirements from print to digital, 

the President’s initiative to reduce 

Federal printing, and to some 

extent funding reductions for 

overall Federal spending including 

sequestration. However, this 

partnership achieves significant 

savings and efficiencies for the 

printing that it continues to 

produce, and in the process 

generates private sector jobs 

nationwide.

We have long advocated that 

where Federal agency printing 

is required, this partnership is 

the most cost-effective way of 

producing it. We were interested 

to see the results of a Government 

Accountability Office study, 

conducted at the request of the 

Joint Committee on Printing 

and completed in 2013, which 

identified approximately 80 Federal 

printing plants still in operation 

government wide. Additional 

savings for taxpayers could occur 

if the work these plants are 

producing is transferred instead to 

GPO’s partnership with the private 

sector printing and information 

product industry. 

In April 2014, GPO hosted the InterQuest Digital Printing in Government/Higher Education Conference. More than 100 people 

from throughout the industry attended the event.
16 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT

Producing and distributing 

the official publications and 

information products of the 

Government fulfills an informing 

role originally envisioned by the 

Founders, as James Madison once 

said:

“A popular Government 

without popular information, 

or the means of acquiring it, 

is but a Prologue to a Farce 

or a Tragedy, or perhaps 

both. Knowledge will forever 

govern ignorance, and a 

people who mean to be their 

own Governors, must arm 

themselves with the power 

which knowledge gives.”

GPO operates a variety of 

programs that provide the public 

with “the means of acquiring” 

Government information that 

Madison spoke of. These programs 

include the Federal Depository 

Library program (FDLP), Federal 

Digital System (FDsys), Publications 

Sales, and Social Media.

Federal Depository Library 

Program 

The FDLP has legislative 

antecedents that date back 200 

years, to 1813. Across those years, 

depository libraries have served 

as critical links between “We 

the People” and the information 

made available by the Federal 

Government. GPO provides the 

libraries with information products 

in digital and, in some cases, 

tangible formats, and the libraries 

in turn make these available to the 

public at no charge while providing 

additional help and assistance to 

depository library users. 

The program today serves 

millions of Americans through a 

network of approximately 1,200 

public, academic, law, and other 

libraries located across the Nation, 

averaging nearly three per congressional district. Once limited to the 

distribution of printed and microfiche products, the FDLP today 

GPO and Open, Transparent Government

In April 2014, 250 guests gathered in Harding Hall and another 300 joined GPO online for the kick-off of the annual Depository 

Library Council Meeting and Federal Depository Library Conference.
U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT 17

is primarily digital, supported by 

FDsys and other digital resources. 

This overwhelming reliance on 

digital content allowed for the first 

digital-only Federal depository 

library designation in FY 2014, 

with others to follow. 

In FY 2014, GPO completed 

work on our FDLP Forecast Study, 

a collaborative research project 

between GPO and depository 

libraries, which surveyed all 

depository libraries to assess the 

current conditions of the program. 

Primary issues identified in the 

survey include budget constraints, 

use of physical space, staffing, and 

collection scope changes. Results 

from this initiative will serve as a 

blueprint for developing a new 

National Plan for Access to Federal 

Government Information.

Also supporting the Federal 

depository libraries and the public 

nationwide is the work GPO does 

under its statutory mandate to 

catalog a comprehensive index 

of public documents issued 

or published by the Federal 

Government that are not confidential in character. The public 

interface for accessing these 

cataloging records is GPO’s Catalog 

of U.S. Government Publications

(CGP). 

In FY 2014, there were 25.6 

million successful searches of the 

CGP, an increase of 10.5 million 

over FY 2013. Also during this 

period, more than 13,800 new 

cataloging records were added to 

the CGP, of which 60% contained 

direct online links to the cataloged 

content. Additionally, more than 

150 free Federal Government 

eBooks from various agencies 

are now available via the CGP, 

with more being added continuously. Thanks to a partnership 

we forged with the Digital Public 

Library of America (DPLA), more 

than 150,000 records from GPO’s 

digital Catalog of Government 

Publications are now also available 

to the public through the DPLA’s 

Web site. 

Federal Digital System 

GPO has been providing access to 

digital congressional and Federal 

agency documents since 1994. 

Federal Depository Library Conference attendees were able to attend multiple workshops throughout the Conference.
18 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT

the Government, the only system 

of its kind in operation today. 

In FY 2014, FDsys averaged 36 

million retrievals per month, with a 

spike of up to 49.5 million during 

the October 2013 Government 

shutdown. 

GPO is continually adding 

collections to FDsys to provide 

increased public access to 

Government information. In FY 

2014, new collections were added 

ranging from audio books to digital 

editions of historic publications 

like the Warren Report on the 

assassination of President Kennedy 

and the Civil Rights Act of 1964. 

At the end of the year, we were 

one of 5 institutions named by 

the Library of Congress and the 

National Institute of Museum and 

Library Services to be part of 

the National Digital Stewardship 

Residency program, under which 

we are now preparing to become 

the first Federal agency certified as 

a Trustworthy Digital Depository 

for Government information. 

During the October 2013 

Government shutdown, the FDsys 

congressional and regulatory 

information collections were 

continually updated as an essential 

function in order to provide public 

access to this essential information. 

The other collections on FDsys 

were not updated but were still 

accessible. All other information on 

gpo.gov (concerning our Online 

Bookstore, FDLP.gov, Contractor 

Connect, etc.) remained static 

during the shutdown.

GPO Achieves Savings in 

Information Dissemination 

Since FY 1995, the first full year of 

our online operations, the cost of 

producing and distributing millions 

of copies of printed publications 

to Federal depository libraries 

nationwide was funded at $17.6 

million, the equivalent of $27.3 

million in constant dollars. For FY 

2016, we are proposing to fund 

this function at $8.2 million, a 

reduction of nearly 70% in constant 

dollar terms. Along with appropriations to GPO’s Revolving Fund, 

we have used the savings from 

reduced printing and distribution 

costs to pay for the establishment 

and operation of our digital information dissemination operations, 

achieving additional savings for 

the taxpayers and vastly expanding 

public access to Government 

information. 

Publication and Information 

Sales Program 

Along with the FDLP and FDsys, 

which are no-fee public access 

programs, GPO provides public 

access to official Federal information through public sales 

featuring secure ordering through 

an online bookstore, a bookstore at 

GPO headquarters in Washington, 

DC, and partnerships with the 

private sector that offer Federal 

publications as eBooks.

As a one-stop shop for 

eBook design, conversion, and 

dissemination, our presence in 

the eBook market continues to 

grow. We now have agreements 

with Amazon, Apple, Google’s 

eBookstore, Barnes & Noble, 

OverDrive, Ingram, Zinio, and 

other online vendors to make 

popular Government titles such as 

the Public Papers of the PresidentBarack Obama, the Financial 

 EMPLO YMENT TREND, 1980-2 01 5

00

150

200

250

300

CONGRESSIONAL PRINTING AND BINDING APPR OPRIATION

FY 1980 – FY 2 01 5

Millions of Dollars

350

0

100,000

200,000

300,000

400,000

500,000

Number of Titles

FY2000 FY2005 FY2010 FY2015

193,000

301,600

441,700

600,000

700,000

1,000,00 0

900,000

800,000

1,339,500

Number of Titles Available 

Online through GPO |

FY 2000 – FY 2015

(includes titles on GPO servers and 

titles linked from GPO)

Today, FDsys provides the majority 

of congressional and Federal 

agency content to the FDLP as well 

as other online users. This system 

has reduced the cost of providing 

public access to Government 

information significantly when 

compared with print, while 

expanding public access dramatically through the Internet.

Public utilization of FDsys has 

increased substantially. In FY 2014, 

FDsys recorded its one billionth 

document retrieval since replacing 

our original online Web site, GPO 

Access. Currently, FDsys serves as 

a secure preservation repository 

for more than 1 million individual 

titles from all three branches of 
U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT 19

Crisis Inquiry Report, and 

Ponzimonium: How Scam Artists 

are Ripping Off America available 

as eBooks. Additionally, in FY 2014 

we worked with Congress to make 

Hispanic Americans in Congress 

available as an eBook.

Reimbursable Distribution 

Program 

We operate distribution programs 

for the information products 

of other Federal agencies on a 

reimbursable basis, including 

General Services Administration 

(GSA) Consumer Information 

Center publications, from 

warehouses in Pueblo, CO, and 

Laurel, MD. 

GPO and Social Media 

We use Facebook, Twitter, 

YouTube, and a book blog to 

share information about GPO news 

and events and to promote specific 

publications and products. By the 

end of FY 2014, we had 3,932 

likes on Facebook, 5,372 followers 

on Twitter, and 120,000 views 

across 66 videos on YouTube. On 

Pinterest, we had 422 followers 

pinning on 15 boards of Federal 

Participants in GPO’s Executive Leadership Program studied leadership cases during a tour of the Gettysburg battlefield. Here they 

discussed the leadership actions of Union Brigadier General John Buford on the first day of the battle.

Customer Services managers from GPO’s Central and regional offices across the 

Nation met in Washington in May 2014 to discuss current and future plans for serving 

the publishing needs of Federal agencies.

Government information. Our 

book blog, Government Book 

Talk, focuses on increasing the 

awareness of new and classic 

Federal publications through 

reviews and discussions. 
20 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT

Business Operations 

Revolving Fund 

All GPO activities are financed 

through our Business Operations 

Revolving Fund, which until the 

passage of P.L. 113-235 was called 

the Revolving Fund. This businesslike fund is used to pay all of 

GPO’s costs in performing congressional and agency publishing, 

information product procurement, 

and publications dissemination 

activities. It is reimbursed 

from payments from customer 

agencies, sales to the public, and 

transfers from GPO’s two annual 

appropriations: the Congressional 

Publishing Appropriation and the 

Public Information Programs of 

the Superintendent of Documents 

Appropriation. 

The Business Operations 

Revolving Fund functions as 

GPO’s checking account with 

the U.S. Treasury. GPO pays its 

expenses from this account either 

with electronic transfer or check. 

The fund is reimbursed when the 

Treasury Department transfers 

money from agency appropriations accounts to the fund when 

agencies pay GPO invoices. This 

procedure also applies to the 

payment of transfers from the 

Congressional Publishing and 

Public Information Programs 

appropriations, and to deposits of 

funds collected from sales to the 

public.

GPO maintains a cash balance 

in the Business Operations 

Revolving Fund that is used to pay 

all expenses. The cash balance 

fluctuates daily as payments are 

received from agency reimbursements, customer payments, and 

transfers from GPO appropriations.

Retained Earnings 

Under GPO’s system of accrual 

accounting, annual earnings 

generated since the inception of 

the Business Operations Revolving 

Fund have been accumulated 

as retained earnings. Retained 

earnings make it possible for 

GPO to fund a significant amount 

of technology modernization. 

However, appropriations for 

essential investments in technology 

and plant upgrades are also 

necessary and are requested 

annually.

Appropriated Funds 

GPO’s Congressional Publishing 

Appropriation, whose name was 

changed from the Congressional 

Printing and Binding Appropriation 

by P.L. 113-235, is used to 

reimburse the Business Operations 

Revolving Fund for costs of 

publishing the documents required 

for the use of Congress in digital 

and tangible formats, as authorized 

by the provisions of chapters 

7 and 9 of Title 44, U.S.C. The 

Public Information Programs of 

the Superintendent of Documents 

Appropriation, whose name was 

changed from the Salaries and 

Expenses Appropriation of the 

Superintendent of Documents by 

P.L. 113-235, is used to pay for 

costs associated with providing 

online access to and the distribution of publications to Federal 

depository libraries, cataloging and 

indexing, statutory distribution, and 

international exchange distribution. 

The reimbursements from these 

appropriations are included in the 

Business Operations Revolving 

Fund as revenue for work 

performed.

Unlike most appropriations 

to other Federal agencies, these 

two appropriations are for work 

that GPO itself does not control. 

The Congressional Publishing 

Appropriation in effect is an 

appropriation by Congress to cover 

the costs of its publishing activities. 

The appropriation is made to GPO 

to relieve Congress of the burden 

of maintaining detailed accounting 

records for all publishing work 

ordered from GPO both by law 

and by other congressional requisitions, as well as the responsibility 

for estimating the anticipated 

volume of congressional publishing 

that is used as the basis for the 

appropriation.

Congress plays a major role in 

controlling the rate of spending 

of the Congressional Publishing 

Appropriation. GPO can transfer 

funds from the appropriation to 

the Business Operations Revolving 

Fund only when it performs 

congressional publishing work. The 

appropriation is not available for 

expenditure for any purposes other 

than this work. While GPO does 

its best to estimate the volume of 

congressional publishing in any 

given year, that volume can change 

due to circumstances beyond 

GPO’s control. GPO continually 

seeks to ensure the efficiency and 

effectiveness of its operations to 

help control the cost of congressional work. 

If congressional requisitions 

fall short of GPO’s estimate, there 

will be a balance remaining in 

the Congressional Publishing 

Appropriation at the end of the 

year. Under the language of GPO’s 

appropriations legislation, such 

G PO Finances
U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT 21

balances are eligible for transfer to 

the Business Operations Revolving 

Fund, where they can be used only 

for the purposes for which they 

were originally appropriated, with 

the approval of the House and 

Senate appropriations committees. 

If Congress’s requirements exceed 

GPO’s estimate, GPO will continue 

to fulfill them, and Congress 

will in effect spend more than it 

appropriated. As a result, there will 

be a shortfall in the appropriation 

for which GPO would need 

additional funding in a subsequent 

year. The shortfall would be paid 

out of available money—retained 

earnings—in the Business 

Operations Revolving Fund that 

otherwise would be available 

for investment in new plant and 

equipment. When shortfalls occur, 

Congress subsequently repays GPO 

for the excess cost of its printing 

to restore money to the Business 

Operations Revolving Fund.

Like the Congressional 

Publishing Appropriation, the 

Public Information Programs 

Appropriation is available only 

for specific programs: online 

access and distribution to Federal 

depository libraries, cataloging and 

indexing, statutory distribution, 

and international exchange. 

The publishing activities of 

the Government determine the 

workload handled by these 

programs, not GPO. However, 

GPO affects the level of funding by 

ensuring the efficiency of its information dissemination operations. 

Like the Congressional Publishing 

Appropriation, any unobligated 

balances remaining in this account 

may be transferred to the Business 

Operations Revolving Fund, where 

they can be used only for the 

purposes for which they were 

originally appropriated, with the 

approval of the House and Senate 

appropriations committees.

The final appropriated 

funding for GPO for FY 2014 

was approved in P.L. 113-76 at 

$119.3 million, including $79.7 

million for Congressional Printing 

and Binding, $31.5 million for 

the Salaries and Expenses of the 

Superintendent of Documents, 

and $8.1 million for the Revolving 

Fund. 

FY 2014 Financial Results 

Revenue totaled $696.3 million 

while expenses charged against 

GPO’s budget were $672.3 million, 

for an overall net income of $24 

million from operations. Included 

in both GPO’s revenue and net 

income is approximately $15.1 

million in funds set aside for 

passport-related capital investments, as agreed to by GPO and 

the Department of State, and $2.1 

million in funds resulting from an 

adjustment to GPO’s long-term 

workers’ compensation liability 

under the Federal Employees 

Compensation Act (FECA). Apart 

from these funds, GPO’s net 

operating income from FY 2014 

was $6.8 million.

Funds appropriated directly 

by Congress provided nearly 

$109.6 million (including funds 

from the Congressional Publishing 

and Public Information Programs 

appropriations, along with 

appropriations to the Business 

Operations Revolving Fund), or 

about 16% of total revenue. All 

other GPO activities, including 

inplant publishing (which includes 

the production of passports), 

procured work, sales of publications, agency distribution services, 

and all administrative support 

functions, were financed through 

the Business Operations Revolving 

Fund by revenues generated by 

payments from agencies and sales 

to the public. 

The largest single component 

of GPO’s annual expenses is 

publishing work procured from the 

private sector. In FY 2014, the cost 

of this work totaled $267.3 million, 

or about 40% of total expenses. 

The second largest component 

was personnel compensation and 

benefits. These totaled $206.3 

million, or about 31% of all 

expenses.

GPO management served breakfast to employees at GPO’s annual Employee 

Appreciation Day event in September 2014.
U . S . G o v e r n m ent P u b l ishi n g Offic e Financial Statements

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

to substitute for the full audited financial statements presented at 

http://www.gpo.gov/pdfs/congressional/archives/2014_ Annualreport_financials.pdf.

For FY 2014 (October 1, 2013 - September 30, 2014) the GPO received a clean audit opinion on its consolidated financial 

statements from KPMG LLP.

GPO achieved positive financial results before other operating expenses and Passport Capital Reserve. Net income was 

$24 million in FY 2014 compared to net income $29.5 million in FY 2013. 

GPO’s FY 2014 operating income included $15.1 million in reserved funds for planned capital investments for increasing 

production capacity for the next generation U.S. passport, as arranged and agreed between the Department of State and GPO. 

Similar type funds totaled $20.7 million for FY 2013. In both years, this resulted in revenues without corresponding expenses 

in the income statements. The expenses associated with these revenues will be reflected in future financial statements as these 

SID capital projects are completed and put into use. 

Other operating expenses in FY 2014 included a credit of $2.1 million to reflect a reduction to the Agency’s future workers’ 

compensation liability. This long-term worker’s compensation credit adjustment is required to accurately record the actuarially 

determined liability at September 30, 2014. After adjusting for these two unique transactions, GPO had net income after capital 

projects reserve and workers’ compensation liability adjustment of $6.8 million compared with $7.3 million in FY 2013.

In FY 2014, both operating revenue and operating expenses decreased from FY 2013. Operating revenue was down 

$22.6 million or 3.1 percent (to $696.3 million from $718.9 million), while operating expenses dropped $16.5 million or 2.4 

percent (to $674.4 million from $690.9 million). This moderate decline in revenue was primarily attributable to a decrease in 

Printing and Binding revenue. Correspondingly the decrease in operating expenses was due primarily to a decrease in printing 

and reproduction, and supplies and materials expenses, partially offset by an increase in personnel compensation expenses.

Four of the five business units comprising Printing and Binding Operations generated moderately lower revenues for 

FY 2014 on a like-for-like basis, including Security and Intelligent Documents (SID) recording a 6.2 percent decline in U.S. 

passport unit demand to 12.2 million units in FY 2014 from 13 million passport books in prior year. 

Cash provided by operations decreased by $5.6 million from the prior year due primarily to a reduction in customer 

deposit collections (deferred revenues) as well as increases in accounts receivable and inventories. The GPO invested $36.4 

million for capital items in FY 2014 compared similarly to the $36.3 million invested in FY 2013. 

Summary Statements of Cash Flows (in thousands) 2014 2013

Cash flows from Operating Activities

Net Income $ 24,004 $ 29,458

Provided by (used in) operating activities

Depreciation and other 20,737 21,896

(Increase) decrease in assets (18,322) 21,155

Increase (decrease) in liabilities (29,939) (14,259)

Increase (decrease) in workers’ compensation liability (2,123) (1,418)

Total adjustments (29,647) 27,374

Net cash provided by operating activities (5,643) 56,832

Cash flows used in investing activities (36,376) (36,289)

Cash flows provided by financing activities 9,496 7,117

Net increase (decrease) in cash balance $ (32,523) $ 27,660

Summary of Net Income (in thousands) 2014 2013

Net Income $ 24,004 $ 29,458

Less Passport Capital Projects Reserve (15,120) (20,740)

Decrease in Workers’ Compensation Liability (2,123) (1,418)

Net Income After Capital Projects Reserve and

 Workers’ Compensation Liability Adjustment $ 6,761 $ 7,300

22 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT
Summary Balance Sheets (in thousands) 2014 2013

Assets

Current Assets

Fund balance with Treasury $ 475,744 $ 508,267 

Accounts receivable, net 133,507 123,224 

Inventory, net 34,379 28,804 

Prepaid expenses 3,504 1,040

Total current assets 647,134 661,335 

General property, plant and equipment, net 130,651 114,900

Total Assets $ 777,785 $ 776,235

Liabilities and Net Position

Current Liabilities

Accounts payable and accrued expenses $ 105,078 $ 96,155 

Deferred revenues 160,296 198,947

Accrued annual leave 9,608 9,707 

Total current liabilities 274,982 304,809

Noncurrent Liabilities

Workers’ compensation liability 66,983 69,106

Total Liabilities 341,965 373,915 

Net position

Cumulative results of operations

Retained earnings 221,608 197,604

Invested capital 92,879 92,879

Unexpended appropriations 121,333 111,837

Total Net Position 435,820 402,320

Total Liabilities and Net Position $ 777,785 $ 776,235

The GPO’s Balance Sheet strengthened moderately in FY 2014 as a result of the operating performance. Working 

capital increased by $15.6 million, to $372.1 million in FY 2014 from $356.5 million in FY 2013, although total current assets 

decreased by $14.2 million, to $647.1 million in FY 2014 from $661.3 million in FY 2013. 

Total assets grew by a modest $1.6 million to $777.8 million in FY 2014 from $776.2 million in FY 2013. Cash (referred 

to as the fund balance with Treasury, FBWT) decreased to $475.7 million in FY 2014 from $508.3 million in FY 2013 with the 

overall reduction in agency orders being the key driver of this metric, with returned customer deposits as a contributing factor. 

GPO ended fiscal 2014 with an increase in retained earnings of $24 million to $221.6 million, compared to $197.6 million 

at the end of FY 2013.

U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT 23
24 U.S. GOVERNMENT PUBLISHING OFFICE FY14 ANNUAL REPORT

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

Twitter https://twitter.com/usgpo

Pinterest http://pinterest.com/usgpo/

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

Government Book Talk Blog http://govbooktalk.gpo.gov

DIRECTOR

Davita E. Vance-Cooks

DEPUTY DIRECTOR

Jim Bradley 

GENERAL COUNSEL

Drew Spalding

CHIEF ADMINISTRATIVE 

OFFICER

Herbert H. Jackson, Jr.

SUPERINTENDENT

OF DOCUMENTS

Mary Alice Baish

CHIEF OF STAFF

Andrew M. Sherman

INSPECTOR GENERAL

Michael A. Raponi

LABOR RELATIONS

Melissa Hatfield

HUMAN CAPITAL

Ginger Thomas

EQUAL EMPLOYMENT 

OPPORTUNITY

Juanita M. Flores

INFORMATION TECHNOLOGY 

AND SYSTEMS

Charles E. Riddle, Jr.

SECURITY SERVICES

LaMont R. Vernon

PLANT OPERATIONS

John Crawford

CUSTOMER SERVICES

Bruce Seger

LIBRARY SERVICES AND 

CONTENT MANAGEMENT

Laurie Hall (Acting)

PROGRAMS, STRATEGY

AND TECHNOLOGY

Richard G. Davis

CONGRESSIONAL

RELATIONS

Andrew M. Sherman

(Acting)

PUBLIC RELATIONS

Gary Somerset

OFFICIAL JOURNALS

OF GOVERNMENT

Lyle L. Green

PUBLICATIONS AND 

INFORMATION SALES

SECURITY AND 

INTELLIGENT DOCUMENTS

Stephen G. LeBlanc

December, 2014

ACQUISITIONS

Damon McClure

CHIEF FINANCIAL OFFICER

Steven T. Shedd

STRATEGY ADMINISTRATION PUBLIC ACCESS LEGAL FINANCE

OPERATIONS

U.S. GOVERNME NT P UBLISHI NG OF F ICE | KEEPI N G AMERICA INFO RMED | OFFICIAL | D I G ITAL | S EC UR E

732 North Capitol Street, NW, Washington, D C 20401 | www.gpo.gov | www.fdsys.gov

U . S . G o v e r n m ent P u b l ishi n g Offic e Organizational Chart
FINANCIAL YEAR IN REVIEW

FY2014 AND 2013

U.S. GOVERNMENT PUBLISHING OFFICE

“

”

Publishing defines 

a broad range of 

services that includes 

print, digital, and 

future technological 

advancements.
 

U. S. Government Printing Office | Financial Year In Review – FY 2014 1

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

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

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

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

Funding ......................................................................................................................................................... 4

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

Management Initiatives to Improve GPO Operations................................................................................... 7

Financial Position and Results for Fiscal Year 2014.......................................................................................10

Consolidated Balance Sheets ........................................................................................................................10

Consolidated Statements of Revenues, Expenses, and Changes in Retained Earnings................................10

Consolidated Revenues..........................................................................................................................11

Consolidated Expenses ..........................................................................................................................13

Changes in Retained Earnings...............................................................................................................15

Consolidated Statements of Cash Flows.......................................................................................................15

Performance Measures... ..................................................................................................................................16

Operating Performance Measures.................................................................................................................16

Financial Performance Measures..................................................................................................................17

Possible Future Effects of Existing Events and Conditions............................................................................18

Fiscal Year 2015 Financial Projections............................................................................................................20

II. Inspector General’s Report....................................................................................................................................21

III. Independent Auditors’ Report...............................................................................................................................26

IV. Financial Statements.........................................................................................................................................38

Consolidated Balance Sheets.............................................................................................................................39

Consolidated Statements of Revenues, Expenses, and Changes 

 in Retained Earning.........................................................................................................................................40

Consolidated Statements of Cash Flows...........................................................................................................41

Notes to the Financial Statements.....................................................................................................................42

1. Summary of Significant Accounting Policies................................................................................................43

2. Fund Balance with Treasury...........................................................................................................................51

3. Accounts Receivable, Net ..............................................................................................................................51

4. Inventory, Net.................................................................................................................................................52

5. Prepaid Expenses............................................................................................................................................53

6. General Property, Plant, and Equipment, Net ................................................................................................53

7. Accounts Payable and Accrued Expenses......................................................................................................54

8. Deferred Revenues..... ...................................................................................................................................55

9. Workers’ Compensation Liability ..................................................................................................................55

10. Commitments .................................................................................................................................................56

11. Contingencies.... ............................................................................................................................................57

12. Net Position.. .................................................................................................................................................58

13. Appropriated Funds........................................................................................................................................60

14. Employee Benefit Plans .................................................................................................................................61

15. Major Customers............................................................................................................................................63

16. Voluntary Separation Incentive Program..............................................................................63

17. Subsequent Events..........................................................................................................................................63

 Abbreviations List ...............................................................................................................64
 

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 2

 SECTION I

MANAGEMENT

DISCUSSION

AND

ANALYSIS

(UNAUDITED)

 

 

 
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 3

U.S. Government Printing Office

Management Discussion and Analysis (Unaudited)

As of September 30, 2014

Mission

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

Informed, by producing, protecting, preserving, and distributing the official information products 

and publications of the Federal Government. To ensure Federal information is readily available 

to citizens, GPO makes information accessible in an array of communication mediums from 

secure digital documents, databases, and mobile web applications that are accessible through the 

Internet to traditional printed ink-on-paper products. GPO was created on June 23, 1860, with the 

enactment of Congressional Joint Resolution 25. GPO’s first day of operations was March 4, 

1861. 

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 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. 

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 significant financial and economic events that may impact GPO, in conformity with 

applicable laws, regulations, standards, and policies relevant to financial reporting. GPO is 

committed to maintaining strong financial systems and internal controls to ensure accountability, 

integrity, and reliability. GPO’s internal controls are designed to provide reasonable assurance 

that obligations and costs comply with applicable laws and regulations and are within budgetary

limits; that funds, property, and other assets are safeguarded against loss from unauthorized 

acquisition, use, or disposition; and that transactions are properly recorded. 

GPO Instruction 825.18A, Internal Control Program, 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 
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 4

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 official Federal publications 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 

the U.S. 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, including U.S. passports and 

other secure credential documents and cards, blank paper and paper products, and 

information products and design services; 

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

bookstores, bookdealers, and businesses; and

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

the Salaries and Expenses (S&E) Appropriation of the Superintendent of Documents for 

work performed and authorized to be billed to these appropriations.

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. Reimbursements to the Revolving Fund 

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

incurred. 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 

Department of the Treasury after five years. 

Congress has also made no-year and multi-year appropriations available to GPO’s Revolving 
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 5

Fund for specific purposes. For example, appropriations have been made for building repairs 

and improvements, security enhancements, information systems, and workforce retraining. 

Programs and Operations Overview

GPO is organized into separate business units to carry out the various programs and operations 

of the Agency. An overview of these business units follows.

Official Journals of Government – The Official Journals of Government business unit 

provides support services to the U.S. Senate and U.S. House of Representatives and their 

committees regarding the printing, binding, and provision of digital information products 

required to carry out the legislative schedule and daily operations. This support includes the 

production of the Congressional Record, bills, reports, hearings, committee prints, and other 

authorized documents.

This business unit also works in close partnership with the Office of the Federal Register (OFR) 

to coordinate the timely production of the official documents of the OFR including the daily 

Federal Register, Code of Federal Regulations, List of CFR Sections Affected (LSA), and the 

Public Papers of the Presidents of the United States.

Plant Operations – The Plant Operations business unit publishes, in print and online, 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, hearings, and other documents. 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) (www.fdsys.gov). 

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

distributes secure credentials, documents, forms, 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 passports for the 

U.S. Department of State. Additionally, SID supports the U.S. Department of Homeland 

Security’s Trusted Traveler border crossing smartcard program as well as the Homeland Security 

Presidential Directive Personal Identity Verification (HSPD-12 PIV) card program used for 

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

U.S. Department of Health and Human Services, the U.S. Department of Defense, and the 

District of Columbia (DC) government.

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

production and quality control environment. SID protects the Personally Identifiable Information 

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

Services Administration (GSA) as the only Government entity capable of graphically 

personalizing the Nation’s HSPD-12 PIV smart cards now used in all agencies for physical 
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 6

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

Customer Services – The majority of the Federal Government’s printing needs requisitioned 

through GPO are contracted out to the private sector using Customer Service’s partnerships with 

commercial printers and the overall information industry. This business model enables the 

Federal Government to take full advantage of the vast resources, expertise, and specialization 

within the private sector, and ensures open market competition for printing contracts among 

thousands of businesses, large and small.

The Customer Services business unit provides pre-procurement consulting, print procurement 

(including specification writing, bid and solicitation management, and contract awarding), as 

well as life cycle contract administration to Federal customers. Customer Service teams are 

assigned to service specific customer agencies, and are in continuous contact with customer 

agency printing officers and program managers to maintain high levels of satisfaction and to 

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

Service’s performance measures for on-time delivery and quality acceptance (see Performance 

Measures section) underscore the effectiveness of this partnership between industry and 

Government. 

Creative and Digital Media Services – GPO’s Creative and Digital Media Services 

provides graphic design solutions, multimedia and Web services to Congress, the White House, 

and Federal agencies and commissions. This business unit assists customer agencies by creating 

effective visual communications solutions for their projects using the latest technology. The team 

is comprised of graphic designers who specialize in art, graphic design, Web design and 

development, e-book design, illustration, photography, and multi-media. This business unit’s 

work includes designs for Presidential Inauguration materials, the U.S. passport, and numerous 

other security design efforts. Other examples of recent Web design and development projects for 

agency clients include the National Interagency Fire Center, U.S. Department of Commerce, 

Federal Mine Safety and Health Review Commission, Open World Leadership Center, and the 

Federal Housing Finance Agency Office of the Inspector General, among others. This business 

unit also offers hosting services for Federal agency customers looking for in-government webhosting solutions.

Publication and Information Sales – This business unit increases public access to U.S. 

Government information through the sale of Government information products, primarily 

through GPO’s U.S. Government Bookstore website (http://bookstore.gpo.gov/). This site allows 

the public to purchase hard-copy and e-book copies of Federal Government publications and 

subscriptions. This business unit also works with commercial sales channels, including 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.

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

inventory, and list management services to Federal agencies through distribution centers in 
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 7

Pueblo, CO, and Laurel, MD. This business unit also supports the GSA’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 ByLaw Program, and the distribution component of the International Exchange Service of the 

Library of Congress (LOC). The FDLP ensures equitable, secure, convenient, and permanent nofee access to published U.S. Government information.

The FDLP includes approximately 1,200 designated Federal depository libraries throughout the 

United States and its territories and provides the American public free access to U.S. 

Government publications in tangible and electronic collections. Library Services and Content 

Management’s major operational functions include cataloging, acquiring new tangible and 

electronic publications for the FDLP, program planning, distributing publications to libraries, 

education and outreach, library technical services, and archival management. Working with other 

GPO units, this business unit also supports the enhancement and promotion of, and education 

about GPO’s Federal Digital System (FDsys) (www.fdsys.gov), which provides direct online 

access to Federal Government publications. 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). 

Management Initiatives to Improve GPO Operations

GPO’s Strategic Plan for Fiscal Years 2014 through 2018 outlines goals the Agency is working

toward in order to carry out its mission of Keeping America Informed in the evolving Digital 

Age. Keeping America Informed in this age requires that the information products and 

publications of the Federal Government offered are official, digital, and secure. The GPO 

Strategic Plan promotes the Agency’s core values of commitment, customer service, 

dependability, diversity, integrity, and teamwork. The document servers as a roadmap for the 

Agency in satisfying its stakeholders, strengthening GPO’s organizational foundation, offering 

benchmark products and service to its customers and pro-actively engaging its workforce. All 

Agency policy decisions, budgeting and capital investment decisions, workforce development, 

industry partnerships, customer relations, and operational decision-making are based on this 

strategic plan. The complete version of GPO’s Fiscal Years 2014 through 2018 Strategic Plan 

and previous plans are available online at http://www.gpo.gov/pdfs/about/2014-

2018_GPO_Strategic_Plan.pdf. The following are some of the strategic accomplishments GPO 

achieved in fiscal 2014:

Federal Digital System (FDsys) Achievements

GPO’s FDsys is the content management, preservation repository, and advanced search engine 

system that allows users to search, browse, access, and download Federal information. Content

includes the official versions of the: Congressional Record, Federal Register, Budget of the U.S. 

Government, Compilation of Presidential Documents, U.S. Code, Code of Federal Regulations, 

and many others. In fiscal 2014, GPO implemented the following improvements for FDsys 

users:
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 8

• Added to the House Bill Summaries XML Bulk Data collection

• Provided access to Privacy Act Issuances in XML

• Enabled access to an additional 31 Federal court opinions

• Created custom metadata fields to support the management of print on demand files in 

FDsys

• Developed utilities, reports, and a user interface for automated preservation processes

• Continued the development of the Next Generation FDsys public Web site. 

Publishing Achievements

In addition to printing the daily versions of the Congressional Record, Federal Register, and 

other previously mentioned titles, GPO accomplished the following initiatives in fiscal 2014 that 

advanced the Agency’s publishing role:

Secure Document Materials Testing (SDMT) Laboratory – GPO’s Plant Operations 

continued to improve the laboratory information management system that will allow the Plant to 

support SID and the Department of State in the development of the next generation passport and 

other secure documents.

Advanced Binding Equipment Implementation – Installed a new high efficiency digital 

Case Maker and Automatic Sewing Machine to improve production and quality of bound books 

for our core Congressional customers. 

Zero Make-Ready (ZMR) 7 Color Process Press – GPO retrofitted production space to 

install a new ZMR press that will allow GPO to continue providing high quality products to 

customers, while improving efficiency. 

Security Achievements

The Nation’s security program is supported by GPO’s role in producing secure credentials for 

Federal agencies. In addition to producing electronic U.S. passports for the U.S. Department of 

State, GPO’s portfolio of secure credentials includes Trusted Traveler cards for Customs and 

Border Protection, HSPD-12 cards for the Department of Homeland Security, contractor IDs for 

the Pentagon, and White House visitor badges.

Secure Federal Credentials – GPO plays a vital role in the security programs of our agency 

customers and our Nation. Since 2005, GPO has produced more than 100 million of the latest 

electronic passports for the Department of State. These proven passport technologies are built 

into a family of secure credential products. Our agency customers acquire secure credential 

design, printing, manufacturing, personalization, and delivery from GPO. Work is performed in 

GPO facilities by GPO employees with proper clearances.

Smart Card and Credential Customers – SID worked closely with several Federal agency

customers on the design, printing, personalization, and fulfillment of several product lines. 

These include Department of State, Department of Homeland Security, Transportation Security 

Administration, and multiple Federal law Enforcement Agencies (i.e., leather-bound 

Credentials).
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 9

Other Notable Achievements

The Agency measures its production performance against commercial industry benchmarks and 

standards. In fiscal 2014, GPO received and maintained certifications and awards including the 

following.

Positive Customer Survey – GPO reported positive results on a customer satisfaction survey 

of approximately 500 Federal agency customers. The survey focused on GPO's products, 

services, and programs, the cost-effectiveness of services, and satisfaction with GPO's website 

and employee customer service. The survey also allowed respondents to provide narrative 

feedback on how GPO could improve services. Some of the results included:

• 91 percent of customers are satisfied with overall service from their primary GPO 

location 

• 90 percent of customers are likely to recommend GPO to a colleague 

• 90 percent of customers say they do not believe they can beat or match GPO pricing

Designation as an Innovative Agency – GPO was named among the most innovative 

agencies in the Federal Government by the Partnership for Public Service. The Agency is rated 

among the top ten most innovative mid-size agencies based upon the data analysis from the 2013 

Best Places to Work in the Federal Government® Employee Viewpoint Survey. Federal 

agencies designated as innovative are said by the Partnership to excel in fostering innovation and 

what drives innovation in the government space. 

Industry Certifications – GPO Plant Operations maintained the following best-in-class 

certifications: G7 Master Printer certification for GRACoL Proof, Digital Offset and Sheet-fed 

Offset Printing; Graphic Arts Industry Color Viewing Standard ISO 3664:2009; and certification 

as an Institutional Member of the Library Binding Institute demonstrating compliance with 

ANSI/NISO/LBI Library Binding Standard Z39.78-2000. Security and Intelligent Documents

business unit has maintained the ISO 9001 certification for both the Washington, DC, and 

Stennis, MS, production facilities.

Green Initiatives – GPO Plant Operations renewed its Sustainable Green Printer (SGP) 

certification by continuing to maintain existing sustainable practices, as well as upgrading the 

oxidizer control, which captures discharges of hazardous air pollutants.

Optimization of Office Space – GPO completed a project to reconfigure space leased by the 

U.S. Commission on International Religious Freedom (USCIRF) in order to accommodate 

additional work areas. Also, the operational footprint of GPO’s manufacturing activities was

compressed by over 30,000 square feet to make room for new equipment and processes 

associated with Next Generation Passport production. In addition, GPO’s lease costs were 

reduced with the relocation of the Customer Service Hampton Roads, VA office to Virginia 

Beach, VA. 
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 10

Financial Position and Results for Fiscal Year 2014

The following is an overview of the financial position and operating results reflected in GPO’s 

basic financial statements as of and for the fiscal year ended September 30, 2014.

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, consisting of current assets and general property, plant, and equipment,

increased by $1.6 million (less than 1.0 percent), to $777.8 million as of September 30, 2014,

from $776.2 million as of September 30, 2013. Current assets decreased by $14.2 million, 

primarily due to a $32.6 million decrease in fund balance with Treasury, which was partially 

mitigated by a $10.3 million increase in accounts receivable, and a $5.6 million increase in 

inventory. The remaining increase in GPO’s total assets resulted from an increase in the value of 

general property, plant and equipment (PP&E) of $15.8 million (13.8 percent) during fiscal 2014

(to $130.7 million as of September 30, 2014 from $114.9 million as of September 30, 2013). The 

increase in the value of PP&E during fiscal 2014 was primarily due to the net effect of $36.5

million in capital acquisitions, which increased the value, offset by approximately $20.7 million 

in depreciation expense, which decreased the net value. 

GPO’s total liabilities (current and long-term) decreased by $32 million (8.5 percent), to $342

million as of September 30, 2014, from $373.9 million as of September 30, 2013. The total 

decrease was primarily due to a decrease in deferred revenues of approximately $38.6 million

(19.4 percent), the result of the return of $36.8 million in cash deposits to the customer agencies,

and a $2.1 million decrease associated with the long term workers’ compensation. These 

reductions were partially offset by an increase in accounts payable and accrued expenses of $8.9

million (9.3 percent).

GPO’s net position increased to $435.8 million as of September 30, 2014 from $402.3 million as 

of September 30, 2013. The increase of $33.5 million (8.3 percent) in GPO’s net position was 

primarily the result of increases in unexpended appropriations of $9.5 million and retained 

earnings of $24 million. Unexpended appropriations increased as a result of the net of an 

increase in unexpended Revolving Fund appropriations of $16.1 million ($38.6 million at yearend 2014 from $22.5 million at year-end 2013), offset by a decrease in unexpended CP&B 

appropriations of $4.6 million ($59.2 million at year-end 2014 from $63.8 million at year-end 

2013), and a decrease in unexpended S&E appropriations of $2.1 million ($23.5 million at yearend 2014 from $25.6 million at year-end 2013).
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 11

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 changes, within the 

periods presented, of the accumulated net income of the Agency (changes in retained earnings). 

Consolidated Revenues – GPO’s consolidated revenues (net of eliminations) are derived from 

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

Distributions. Consolidated revenues were $696.3 million in fiscal 2014 and $718.9 million in 

fiscal 2013. The decrease of $22.6 million (3.1 percent) was attributable to decreases in Printing 

and Binding, Appropriations, and Sales of Publications revenues, offset by a slight increase in 

Agency Distributions revenues. Printing and Binding revenues decreased to $574.7 million in 

fiscal 2014 from $595.5 million in fiscal 2013, a decrease of $20.8 million (3.5 percent). 

Appropriations revenues decreased to $109.6 million in fiscal 2014 from $110.4 million in fiscal 

2013, a $739,000 (less than 1 percent) decrease. Sales of Publications revenue decreased by $1.2

million (15.4 percent), to $6.6 million in fiscal 2014 from $7.8 million in fiscal 2013. Agency 

Distributions revenues of $5.3 million in fiscal 2014, were flat compared to fiscal 2013.

■ Printing and Binding Revenues

GPO earns revenues from Federal Government customers for printing, binding, and 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 

Creative and Digital Media Services. The revenues earned from jobs produced by GPO 

employees are generally recognized on a value-added basis, as work is performed. Revenues 

from contracted jobs are generally recognized on the date that contract requirements are 

fulfilled, i.e., the date finished products are shipped by the contractor to the customer agency. 

Revenues from the production of passports for the U.S. Department of State are recognized at 

negotiated rates per passport at the time that the manufacturing process is completed.

Plant Operations generated revenues of $118.5 million in fiscal 2014, compared with 

revenues of $126.7 million in fiscal 2013. This represents a decrease of $8.2 million (6.5

percent). Revenues were generated from the production of paper and digital 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 2014 included $74.8 million from the CP&B Appropriations, compared to 

$76.2 million in fiscal 2013. 

Official Journals of Government generated revenues of $11.3 million in fiscal 2014,

compared with revenues of $11.9 million in fiscal 2013. Revenues generated by providing 

administrative services to the U.S. Congress were approximately $5 million in both fiscal 

2014 and fiscal 2013. Revenue from employees (printing specialists) detailed to House and 
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 12

Senate Committees was about $4 million in fiscal 2014 compared with $4.5 million in fiscal

2013.

Overall revenues for the SID business unit decreased to $225.1 million in fiscal 2014 from 

$230.8 million in fiscal 2013, or $5.7 million (2.5 percent). SID’s major product is the U.S. 

passport. GPO produced about 12.2 million passports in fiscal 2014, compared to about 13

million in fiscal 2013. As a result of this decline, passport revenues decreased to $194.3 in 

fiscal 2014 from $214.9 million in fiscal 2013, a decrease of $20.6 million (9.6 percent). SID 

revenues in fiscal 2014 for the Trusted Traveler card and other smart card secure credentials 

for the U.S. Department of Homeland Security, other agencies, and the District of Columbia 

increased to $30.8 million in 2014 from $16 million in 2013, an increase of $14.8 million

(92.5 percent). GPO manufactured 3 million smart cards in fiscal 2014 compared to 1.2 

million in fiscal 2013, a 150 percent increase. 

Customer Services revenues decreased $9.4 million (3.1 percent) to $289.3 million in fiscal 

2014 from $298.7 million in fiscal 2013. Fiscal 2014 revenue decreased due to fewer

customer orders from Department of State, Defense Logistics Agency, Department of 

Veterans Affairs, Social Security Administration and Department of Commerce. Revenues 

from the GPOExpressSM program decreased $100,000 to $6.2 million in fiscal 2014 from $6.3

million in fiscal 2013. 

Creative and Digital Media Services revenues were $2.1 million in fiscal 2014 compared 

with $1.6 million in fiscal 2013, an increase of approximately $500,000 (31.3 percent). The 

increase results from more customer agencies requests for these services. 

■ 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 Consolidated Appropriations Act, 2014 (Public Law 113-76, January 17, 2014) made a 

total of $119.3 million in annual appropriations available to the Agency for fiscal 2014. 

Revenues earned from appropriations provided to GPO totaled $109.6 million for fiscal 2014

and $110.4 million for fiscal 2013. The decrease in appropriation revenue of approximately 

$800,000 (less than 1.0 percent) was primarily due to decreases in appropriation revenues 

from the CP&B and S&E appropriations. Revenue from appropriations made directly to the 

Revolving Fund was $7.1 million in fiscal 2014. In comparison, direct Revolving Fund 

appropriation revenue was $4.6 million in fiscal 2013, an increase of $2.5 million. Revolving 

Fund appropriation revenue is a reimbursement of qualifying expenses and is recognized 

when the qualifying expenses are incurred. The $7.1 million recognized as revenues in fiscal 

2014 primarily included $5.4 million for FDsys implementation and $831,000 for GPO’s 

composition system replacement software development project. In fiscal 2013, the $4.6

million recognized as revenues primarily included $3.4 million for FDsys implementation 

and approximately $712,000 for GPO’s composition system replacement software 

development project.

Revenues from the CP&B Appropriation were $74.8 million in fiscal 2014 compared to 
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 13

$76.2 million in fiscal 2013, a decrease of approximately $1.4 million (1.8 percent). The 

annual CP&B Appropriation is used to fund printing and binding and related information 

product services provided to Congress by the Plant Operations business unit and services 

provided by the Official Journals of Government business unit. 

The S&E Appropriation provided revenues of $27.9 million in fiscal 2014 and $29.6 million 

in fiscal 2013, a decrease of $1.7 million (5.7 percent). 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 in print and digital formats to the public 

and others. The Publication and Information Sales Program sells publications, subscriptions, 

and other Federal Government information products, including e-books, at prices designed to 

recover costs. Revenue from the sales of publications totaled $6.6 million for fiscal 2014 and 

$7.8 million for fiscal 2013, a decrease of $1.2 million (15.4 percent). The number of 

publications sold increased to 183,000 (13.7 percent increase) in fiscal 2014 from 161,000 in 

fiscal 2013. Revenue and the number of publications sold or subscribed to do not have a 

linear correlation. Publication and subscription revenues have been declining as agencies 

publish in digital format and cancel subscriptions for traditional printed periodicals and other 

paper-based documents. 

■ 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 $5.3 million for both fiscal 2014 and fiscal 

2013. Although the revenue remained the same, the quantity of items processed increased to 

42.4 million units in fiscal 2014 from 32.9 million units in fiscal 2013 (a 28.9 percent 

increase in volume). Revenue and the number of items distributed do not have a one to one 

correlation. GPO and customer agencies have varying distribution requirements and varying 

reimbursement rates.

Consolidated Expenses – GPO incurred total consolidated operating expenses, before other 

operating expenses, of $674.4 million for fiscal 2014 and $690.9 million for fiscal 2013, a 

decrease of $16.5 million (2.4 percent). The decrease in operating expenses was due primarily to 

a decrease in printing and reproduction, and supplies and materials expenses, partially offset by 

an increase in personnel compensation expenses. A brief description of the major expense 

categories for the Agency follows:

■ Printing and Reproduction Expenses

GPO incurred expenses for printing and reproduction of $267.3 million for fiscal 2014 and 

$277.2 million for fiscal 2013. This represents a decrease of $9.9 million (3.6 percent). The 

decrease was attributable to a reduction in purchases of printed products from private sector 

contractors by the Customer Services business unit on behalf of customer agencies, primarily 

due to the Federal shutdown at the start of fiscal 2014. The decrease was driven by a 
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 14

reduction in the number of customer agency orders shipped fiscal 2014, GPO shipped about

67,000 customer agency orders, compared to about 68,000 orders in fiscal 2013, a 1.5

percent decrease. 

■ Personnel Compensation and Benefits Expenses

GPO incurred expenses for personnel compensation and benefits of $206.3 million during 

fiscal 2014 and $202.7 million during fiscal 2013. This represents an increase in personnel 

compensation and benefit expense of $3.6 million (1.8 percent). GPO had 1,830 employees 

on the rolls at September 30, 2014, compared to 1,879 a year earlier. Agency employees 

received a 1 percent pay increase in fiscal 2014, while continuing in-grade increases. Also, 

fiscal 2014 includes an accrual of $2.2 million for the agency buyout to reduce future 

personnel expenditures.

■ 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. GPO expenses for supplies and 

materials were $122.1 million in fiscal 2014 and $132 million in fiscal 2013. This represents 

a decrease of $9.9 million (7.5 percent). The reduced number of passports produced is the 

primary reason for the decrease. Passport volumes decreased by 6.2 percent to 12.2 million 

passports in fiscal 2014 from 13 million passports in fiscal 2013, while smart card production 

increased by 150 percent to 3 million cards in fiscal 2014, compared to about 1.2 million

cards in fiscal 2013. 

■ Other Services Expenses

This expense category includes the cost of professional services provided by contractors for 

building security, consulting, system development, equipment maintenance, audits, 

investigations, and employee training. These expenses are recognized when services ordered 

have been performed. GPO incurred expenses for these services of $32.5 million in fiscal 

2014 and $31.3 million in fiscal 2013. This represents an increase of $1.2 million (3.8

percent). The increases in expenses were primarily in support charges, miscellaneous 

services, maintenance, and training.

■ Depreciation and Amortization Expenses

Total depreciation and amortization expenses decreased to $20.7 million or by $1.2 million

(5.5 percent) in fiscal 2014 from $21.9 million in fiscal 2013.

■ Rents, Communications, and Utilities Expenses

This expense group includes rents for building space outside of the immediate Washington, 

DC area, leased equipment and vehicles, telecom and utilities. GPO incurred expenses for 

rents, communications, and utilities of $14.7 million for fiscal 2014 and $15.1 million for 

fiscal 2013. This decrease of $400,000 (2.6 percent) was mainly due to reduced rent 

expenses.

■ Travel, Transportation, and Postage Expenses
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 15

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 courier services. GPO incurred expense for travel, transportation, 

and postage of $8.3 million for fiscal 2014 and $8.1 million for fiscal 2013. This represents 

an increase of $200,000 (2.5 percent). 

■ 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 $2.5 million in fiscal 2014, compared to $2.6 million in 

fiscal 2013, a decrease of $100,000 (3.8 percent). 

Changes in Retained Earnings – GPO’s retained earnings increased by $24.0 million to 

$221.6 million at the end of fiscal 2014, compared to $197.6 million at the end of fiscal 2013. 

As presented on the table below, GPO’s retained earnings include the planned uses of net income 

that is authorized by the responsible parties. The GPO and the Department of State annually 

agree to a price to be charged per passport, as well as a plan of capital investments required to 

produce future U.S. passports. As a result, a portion of the agreed upon price includes funding 

for these capital investments.

Also included in consolidated net income is the net change in the long-term workers’

compensation liability. This unfunded liability is required to be included in GPO’s consolidated

financial statements; however, GPO’s rates and prices are established only to recover the current 

fiscal year actual cost of workers’ compensation, and not the long-term liability estimate. 

Adjusting GPO financial results for these two items allows GPO’s management to better gauge 

the actual results of GPO operations.

Excluding income required to be invested in capital projects to support the production of U.S. 

passports, and the adjustment to the long-term Workers’ Compensation Liability adjustment,

GPO had net income of about $6.8 million in fiscal 2014, compared to $7.3 million in 2013.

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 

2014 2013

Net Income $ 24,004 $ 29,458

Less: Passport Capital Projects Reserve (15,120) (20,740)

Increase/(Decrease) in Workers' Compensation Liability (2,123) (1,418)

Net Income/(Loss) After Capital Projects Reserve

and Workers' Compensation Liability Adjustment $ 6,761 $ 7,300

(Dollars in thousands)
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 16

financing activities. 

Fund Balance with Treasury (cash) decreased by $32.6 million during fiscal 2014, compared 

with an increase of $27.7 million in fiscal 2013. The decrease in cash during fiscal 2014 was 

primarily the result of the following:

• In fiscal 2014, cash used in operating activities was $5.6 million. The cash outflows were

mainly attributed to increases in deferred revenues of $38.7 million, accounts receivable 

of $10.3 million, inventory of $5.6 million; and, lower net income of $5.5 million

compared to prior year. These negative outflows were partially offset by an increase in 

accounts payable of $8.8 million. 

• Cash invested in capital assets was $36.5 million in fiscal 2014. In fiscal 2014, 

investments were made primarily in new secure credentials production equipment, 

information technology upgrades, and facilities improvements. 

• In fiscal 2014, GPO’s unexpended appropriations increased by $9.5 million, due to 

increases in the unexpended year-end balances in the Revolving Fund appropriation of

$16.1 million, partially offset by decreases in the CP&B and S&E Funds appropriations 

of $4.5 million and $2.1 million, respectively. Contributing to the Revolving Fund 

increase was a $15.2 million transfer from the CP&B and S&E appropriations to the 

Revolving Fund. 

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 information product is published daily when Congress is in session. 

GPO uses a performance measure to evaluate the timeliness of the delivery of this core product

to Congress. To measure GPO’s success in delivering the Congressional Record to Congress 

on-time, GPO established a deadline of delivery to the House and Senate chambers before the 

start of the next day’s session when 100 percent of copy is received by midnight. The on-time 

delivery rate was 97.1 percent for fiscal 2014 and 97.1 percent for fiscal 2013. The Agency’s 

goal of 95 percent or better was met for fiscal 2014. The goal will remain the same for fiscal 

2015.

On-Time Delivery and Quality Acceptance of Procured Printing 

Customer Services contracted with commercial businesses to produce and ship approximately 
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 17

67,000 orders for GPO customers in fiscal 2014. For fiscal 2014, 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 2014, with 97.1 percent of 

procured printing orders delivered on time and a quality acceptance rate of 99.7 percent. In 

comparison, GPO contractors shipped approximately 68,000 orders in fiscal 2013, with 97.4

percent of the procured printing orders delivered on time and a quality acceptance rate of 99.8 

percent. The two goals will remain the same for fiscal 2015.

Financial Performance Measures 

Cash Management

Payment Discounts Earned – In fiscal 2014, 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 $3.1 million on purchased 

printing expense of $267.3 million. In comparison, GPO earned $3.4 million in discounts on

$277.2 million in printing expenses last year. The average discount rate earned was 1.2 percent

in both fiscal years 2014 and 2013. The average discount rate earned for fiscal 2014 met the 

targeted goal, which was 1.2 percent. The goal for fiscal 2015 will remain 1.2 percent.

Lost prompt payment discounts increased to $599,000 in fiscal 2014 from $426,000 in fiscal 

2013. As a result, the percentage of discounts lost to discounts offered was 16.2 percent,

compared to 11.1 percent in 2013. GPO will strive to improve the percentage of discounts lost to 

total printing expense in fiscal 2015. 

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 

10.5 cents to issue an EFT payment1. In fiscal 2014, 90.2 percent of all payments were made by 

EFT (attained the goal). In comparison, about 89.1 percent of all payments were made by EFT in 

fiscal 2013. The goal for fiscal 2015 will remain 90 percent. 

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

U. S. Government Printing Office | Financial Year In Review – FY 2014 18

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:

Future Budget Uncertainties – The potential for Federal shutdowns due to lapses in 

appropriations, such as the Federal closure that occurred at the start of Fiscal 2014 (October 1 

through October 16, 2013), can pose operational and financial risks to GPO. The business-like 

Revolving Fund requires an inflow of requisitions and orders to produce Federal information 

products that are subsequently billed and collected from customers to replenish the fund. The 

shutdown interrupted the normal inflow of customer orders, except for critical Congressional and 

Agency work, which GPO relies upon to pay operating expenses and invest in capital 

improvements. Retroactive pay to employees and other operating costs, such as utilities, during 

the shutdown timeframe were not able to be recovered as planned. Future shutdowns could 

hinder operations and capital investments as well as cause an increase in rates and prices charged 

for work performed.

Other Federal Appropriation Reductions – Printing and duplicating are considered a 

discretionary cost for most Federal customers. 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. 

Shift in Demand from Ink-on-Paper Products to Expanding Digital Publishing –

GPO continues to manufacture and sell a sizable array of Federal information products. The 

increase in Government documents on Federal websites and on the Internet, and a downward 

trend in customer demand for printed documents will continue to place downward pressure on 

printing revenues, both in-plant and purchased from the commercial sector, and publication 

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

reduced quantities, to accomplish their respective missions. 

GPO will continue outreach efforts for Federal agencies to adapt to the future of Federal 

Government publishing. In transforming its business model, GPO is focusing on managing 

digital content for agency and public use. GPO’s transformation is continuing with the 

development of new ways of delivering Government information, including apps and bulk data 

download files. The Congressional Record and Federal Register have shorter production runs 

than in past years because these products are available online. Production runs are expected to 

further decline as customers opt-out of paper copies and opt-into digital access. GPO 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.
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 19

The Publication and Information Sales Program business unit is still very much dependent on 

hard-copy sales for funding its operations. GPO has entered into e-book sales partnerships and 

Print-on-Demand solutions as more people turn toward electronic publications. This business 

unit will continue to identify market segments for the program’s offerings, focusing on customer 

needs and providing world-class customer service to a niche customer base. However, 

operational efficiencies will need to continue to improve in order to achieve positive operating 

margins.

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

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

technology has increased dramatically. GPO forecasts decreasing revenues in more traditional 

business lines and the need to continue transformative investments in efficient and productive 

equipment and systems to satisfy current and changing congressional and other key customer 

needs and GPO sustainability, while continuing to maintain and repair aging facilities.

Voluntary Separation Incentive Program – On September 3, 2014, GPO announced a 

Voluntary Separation Incentive Program under which incentive payments have been offered to 

encourage eligible employees to separate from service. The application period runs from 

September 8, 2014, to November 14, 2014. Eligible employees who are accepted under the 

program and voluntarily separate from the GPO no later than December 31, 2014, will receive 

the cash incentive. As of September 30, 2014, GPO accrued $2.2 million in the Revolving 

Fund for the estimated liability of the VSIP buyout incentive payments on an estimated 90 

VSIP separations, as some employees historically reconsider their retirement decision. 

These workforce reduction actions are estimated to reduce GPO operating costs by about $7.1 

million in 2015 and about $9.2 million in 2016.
Section I: Management Discussion and Analysis (Unaudited)

U. S. Government Printing Office | Financial Year In Review – FY 2014 20

Fiscal Year 2015 Financial Projections

On July 1, 1953, the GPO Revolving Fund was established 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 Agency costs, including 

depreciation and overhead. In accordance with Section 309 of Title 44 U.S.C. the receipts and 

disbursements from the continuous cycle of business-type operations are recorded in the GPO 

Revolving Fund. 

GPO’s fiscal 2015 operating budget plans for the Agency to achieve break-even before the longterm Federal Employees’ Compensation Act (FECA) adjustment from the Department of Labor, 

and after adjusting for income from capital investments related to passport production. These 

capital investments for the Department of State are mutually agreed to and allow GPO to invest 

in state-of-the-art passport manufacturing technology. The GPO operating budget also provides 

sufficient cash to allow continued capital investment to achieve more efficient operations and 

better meet customer needs. The budget for 2015 will require that the Agency continue with the 

strict cost containment program implemented in fiscal 2011. 

The GPO’s focus on satisfying customers, producing authentic and secure products vital to 

customers, and managing through change are essential to maintaining Agency operations on 

sound footing, both organizationally and financially. Achieving adequate financial results will 

help ensure that the GPO Revolving Fund remains financially self-sustaining and that GPO can 

continue Keeping America Informed, as it has for over 150 years.
 

U. S. Government Printing Office | Financial Year In Review – FY 2014 21

 SECTION II

INSPECTOR

GENERAL’S

REPORT
      U.S. GOVERNMENT PUBLISHINGOFFICE

           OFFICE OF INSPECTOR GENERAL

AUDIT REPORT

1 5 ‐ 0 3

U.S. Government Publishing Office FY 2014 

Independent Auditor’s Report

 

February 5, 2015 
MEMORANDUM

                          U.S.      GOVERNMENT PUBLISHINGOFFICE

                                           OFFICE OF INSPECTOR GENERAL

Keeping America Informed | www.gpo.gov/oig GPO Form 731A 

(R 9-07) 

For Official Use Only

Date	 	

February	5,	2015	

To

Director,	U.S.	Government	Publishing	Office	

From

Inspector	General	

Subject:		

FY	2014	Independent	Auditor’s	Report	

Report	Number	15‐03	

Attached	is	the	Independent	Auditor’s	Report	on	the	U.S.	Government	Publishing	

Office’s	(GPO’s)	FY	2014	financial	statements.		We	contracted	with	the	independent	

certified	public	accounting	firm	of	KPMG	LLP	(KPMG)	to	audit	the	financial	

statements	of	GPO	as	of	and	for	the	years	ending	September	30,	2014,	and	2013.		

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	was	unqualified.		KPMG’s	

consideration	of	internal	control	resulted	in	one	significant	deficiency	related	to	

controls	over	financial	reporting	and	one	significant	deficiency	related	to	

Information	Technology	General	and	Application	Controls.		A	significant	deficiency	

is	a	deficiency,	or	combination	of	deficiencies,	in	internal	control	that	is	less	severe	

than	a	material	weakness,	yet	important	enough	to	merit	attention	by	those	charged	

with	governance.			

The	significant	deficiency	in	controls	over	financial	reporting	is	an	improvement	

from	the	FY	2013	audit	at	which	time	the	deficiency	was	reported	as	a	material	

weakness.		KPMG	made	recommendations	that	GPO	address	each	of	the	deficiencies.	

KPMG	is	responsible	for	the	attached	auditor’s	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	any	internal	control;	or	on	

GPO’s	compliance	with	laws	and	regulations.		Our	review	did	not	disclose	any	
Keeping America Informed | www.gpo.gov/oig GPO Form 731A 

(R 9-07) 

For Official Use Only

instances	where	KPMG	did	not	comply,	in	all	material	respects,	with	GAGAS	

requirements.	

We	appreciate	the	courtesies	extended	to	KPMG	and	to	our	audit	staff.		If	you	have	

any	questions	or	comments	about	this	report,	please	do	not	hesitate	to	contact	me	at											

(202)	512‐0039.			

MICHAEL	A.	RAPONI	

Inspector	General	

Attachment	

cc:	

Deputy	Director,	U.S.	Government	Publishing	Office		

General	Counsel	

Chief	of	Staff	

Chief	Financial	Officer	
 

U. S. Government Printing Office | Financial Year In Review – FY 2014 26

SECTION III

INDEPENDENT

AUDITORS’

REPORT
KPMG LLP

Suite 12000

1801 K Street, NW 

Washington, DC 20006

KPMG LLP is a Delaware limited liability partnership,

the U.S. member firm of KPMG International Cooperative

(“KPMG International”), a Swiss entity.

Independent Auditors’ Report 

Director 

United States Government Publishing Office 

Office of the Inspector General 

United States Government Publishing Office: 

Report on the Financial Statements

We have audited the accompanying consolidated financial statements of the United States Government 

Printing Office (GPO), which comprise the consolidated balance sheets as of September 30, 2014 and 

2013, and the related consolidated statements of revenues, expenses, and changes in retained earnings, and 

cash flows for the years then ended, and the related notes to the consolidated financial statements. 

Management’s Responsibility for the Financial Statements 

Management is responsible for the preparation and fair presentation of these consolidated financial 

statements in accordance with U.S. generally accepted accounting principles; this includes the design, 

implementation, and maintenance of internal control relevant to the preparation and fair presentation of 

consolidated financial statements that are free from material misstatement, whether due to fraud or error. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these consolidated financial statements 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 audit to obtain reasonable assurance about whether the consolidated financial statements are free from 

material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the 

consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the 

assessment of the risks of material misstatement of the consolidated financial statements, whether due to 

fraud or error. In making those risk assessments, the auditor considers internal control relevant to the 

entity’s preparation and fair presentation of the consolidated financial statements in order to design audit 

procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on 

the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also 

includes evaluating the appropriateness of accounting policies used and the reasonableness of significant 

accounting estimates made by management, as well as evaluating the overall presentation of the 

consolidated financial statements. 
2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 

audit opinion. 

Opinion on the Financial Statements

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, 2014 

and 2013, and the results of its operations and its cash flows for the years then ended in accordance with 

U.S. generally accepted accounting principles. 

Other Matters 

Other Information 

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

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

for purposes of additional analysis and is not a required part of the basic consolidated financial statements. 

Such information has not been subjected to the auditing procedures applied in the audits of the basic 

consolidated financial statements, and accordingly, we do not express an opinion or provide any assurance 

on it. 

Other Reporting Required by Government Auditing Standards

Internal Control over Financial Reporting 

In planning and performing our audit of the consolidated financial statements as of and for the year ended 

September 30, 2014, we considered GPO’s internal control over financial reporting (internal control) to 

determine the audit procedures that are appropriate in the circumstances 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. Accordingly, we do not express an opinion on the effectiveness of 

GPO’s internal control. 

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. 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. 

Our consideration of internal control was for the limited purpose described in the first paragraph of this 

section and was not designed to identify all deficiencies in internal control that might be material 

weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may 

exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies 

in internal control that we consider to be material weaknesses. However, we did identify certain deficiencies 

in internal control, described in the accompanying Schedule of Findings as items 2014-01 and 2014-02, 

which we consider to be significant deficiencies. 
3

Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the GPO’s consolidated financial statements are 

free from material misstatement, we performed tests of its compliance with certain provisions of laws, 

regulations, and contracts, noncompliance with which could have a direct and material effect on the 

determination of financial statement amounts. However, providing an opinion on compliance with those 

provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The 

results of our tests of compliance disclosed no instances of noncompliance or other matters that are 

required to be reported herein under Government Auditing Standards. 

GPO’s Responses to Findings

The GPO’s responses to the findings identified in our audit are described in the accompanying Schedule of 

Findings. The GPO’s responses were not subjected to the auditing procedures applied in the audit of the 

consolidated financial statements and, accordingly, we express no opinion on the responses.

Purpose of the Other Reporting Required by Government Auditing Standards

The purpose of the communication described in the Other Reporting Required by Government Auditing 

Standards section is solely to describe the scope of our testing of internal control and compliance and the 

result of that testing, and not to provide an opinion on the effectiveness of the GPO’s internal control or 

compliance. Accordingly, this communication is not suitable for any other purpose. 

February 2, 2015 
Schedule of Findings

Fiscal Year 2014 Significant Deficiencies

4

2014-01 Controls over Financial Reporting

In Fiscal Year (FY) 2013, we noted several matters that highlighted the need for improved controls over 

financial reporting in several key process areas. Although the Office of the Chief Financial Officer 

implemented policies and procedures in FY 2014 that improved controls over financial reporting, we 

noted that certain monthly account balance reconciliations and activities performed by accounting and 

finance staff were not timely prepared and reviewed by a supervisor. We also noted several instances 

where supervisory reviews were not adequately performed to detect errors in the reconciliations and 

account activities. Collectively, these matters are considered to be a significant deficiency in internal 

control over financial reporting. Specifically, we noted the following:

 The billings to revenue reconciliations for March and June 2014 were prepared using an incorrect 

FY 2014 beginning balance that did not agree to the amounts in the FY 2013 audited financial 

statements. 

 The Government accounts receivable balance reported in the FY 2014 “4 Bucket Report”, used 

by GPO to calculate the allowance for doubtful accounts as of September 30, 2014, exceeded the 

Government accounts receivable balance reported in the general ledger by $5.6 million. This 

difference was not investigated by GPO staff. Upon our review of the “4 Bucket Report,” we 

noted that the report included items, such as Intra-governmental Payment and Collection (IPAC)

chargebacks and commercial accounts receivable that should have been excluded. This resulted in 

an overstatement of the allowance for doubtful accounts by $948,452 as of September 30, 2014.

 The lag factor schedule used to estimate procured printing year end accrued expenses contained 

multiple mathematical errors which resulted in the overstatement of the accrual and expenses by 

approximately $891,356, and revenue by approximately $953,750, for the year ended

September 30, 2014. We also noted that the lag factor accrual schedule did not take into account 

the last three months of the year resulting in an understatement of the accrual and expenses by 

approximately $1,576,424, and an understatement of revenue by approximately $1,686,744, for 

the year ended September 30, 2014.

 The March 2014 general ledger closed on May 9, 2014, however, we noted that several 

reconciliations were not performed and reviewed until June. For example, the March 2014 Work 

In process (WIP) reconciliation was prepared on June 10th and reviewed on June 17th and the 

March 2014 salaries payable and accrued annual leave reconciliations were prepared on June 11th

and reviewed on June 16th.

 During our testwork over advanced billing, we noted that one out of three transactions tested in 

the amount of $60,248 was incorrectly recorded as advanced billing. The project related to this 

transaction was completed and final billed in July 2014. Accordingly, this amount should have 

been recognized as revenue in FY 2014.

 During our testwork over unbilled accounts receivable, we tested a sample of 7 transactions and 

noted that unbilled accounts receivable and revenue, as of and for the year ended September 30,

2014, were overstated by approximately $67,979, as a result of the following:

 The related project for one of the transactions was completed during July 2014 and no 

further billings were anticipated. However, there is a remaining unbilled accounts 

receivable balance of $43,356 as of September 30, 2014 which should have been reversed

by charging it to the billing variance account. 
5

 Unbilled accounts receivable and revenue were overstated by the amount of $24,623 that 

relates to an unapplied materials credit that was not timely recorded prior to September 30,

2014.

The above issues occurred due to a lack of adequate supervisory review of the reconciliations and the 

detail of account balances and related activities. In addition, GPO’s policies and procedures do not 

include specific guidance on the review procedures of the account reconciliations and activities that 

would guide GPO supervisors during their reviews.

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

Government states:

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

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

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

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

and accountability for stewardship of government resources and achieving effective 

results.

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

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

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

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

appropriate documentation. Control activities may be applied in a computerized 

information system environment or through manual processes.”

Management reviews are considered a key aspect of control monitoring. Examples of control activities 

include reviews by management at the functional or activity level. Specifically, the Standards for Internal 

Control in the Federal Government states:

“Internal control should generally be designed to assure that ongoing monitoring occurs 

in the course of normal operations. It is performed continually and is ingrained in the 

agency's operations. It includes regular management and supervisory activities, 

comparisons, reconciliations, and other actions people take in performing their duties.”

Financial Procedure 0004 General Ledger Account Reconciliations states:

“The Director, Accounting Operations shall determine reconciliations assignments, which 

are normally due 5 business days after every monthly close except September.”

Recommendations:

We recommend that GPO management:

1. Continue to improve the controls in place over the preparation and review of periodic reconciliations 

to ensure that the reconciliations are adequately prepared and reviewed in a timely manner.

2. Develop and implement more detailed policies and procedures to guide supervisors during their 

review of the various accounts balances and related activities to ensure that the consolidated financial 

statements are properly stated at fiscal year end. 
6

Management Response:

Management concurs with the finding. GPO management will continue to monitor the reconciliations for 

timeliness and accuracy during fiscal year 2015 as well as continue the CFO-led reconciliation review 

meetings to work on identified weaknesses. We will develop a more efficient aging report to review the 

allowance for doubtful accounts with a draft completed by June 30, 2015. The reconciliation review 

meetings will begin in February ending after all the account reconciliations have been reviewed 

satisfactorily and the monitoring of the reconciliations will continue through the fiscal year. In addition, 

the Office of the Plant Controller has a procedure in effect to review quarterly all plant monthly projects 

and plant projects more than three years old. This review procedure will be expanded to include all plant 

jackets. The next quarterly review will take place in February 2015. In projects where no further billings 

are anticipated and a variance has yet to be recognized, a negative billing variance will be recognized for 

any revenue remaining in unbilled accounts receivable. Accounting Operations will develop a finance 

procedure for adding revenue from invoices to projects (to include correcting errors). 
7

2014-02 Internal Controls over Information Technology General and Application Controls

During FY 2014, we identified deficiencies in the design and/or operations of GPO’s information 

technology (IT) general controls in the areas of Security Management, Access Controls, Segregation of 

Duties, and Contingency Planning. These deficiencies 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:

Security Management

Security management is the foundation of a security control structure that includes a framework to 

document security plans and procedures. GPO’s major application - Procurement Information Control 

System (PICS) - did not have a finalized Certification and Accreditation (C&A) package. GPO’s IT

Security function does not have the resources to perform a security certification review of PICS. 

Accordingly, GPO started the process and plans to have it completed in FY 2015.

The lack of completed C&A package documentation means that system security risks and requirements 

have not been documented and assessed, increasing the likelihood of unidentified threats compromising 

the integrity and confidentiality of GPO financial information. 

GPO Directive 825.33B: Information Technology (IT) Security Program Statement of Policy, dated May 

2011, states:

“The Certification is the evaluation of IT system(s) security controls to ensure they are 

implemented and to determine the residual risk. Accreditation is the acceptance by the 

Designed Approving Authority (DAA) of the residual risk by senior management, based 

on threats to the system and the implemented security controls (the DAA may grant 

interim authority to operate on a case by case basis.) Systems will undergo C&A before 

they process any data. Additionally, systems will be re-accredited at least every 3 years, 

or when a significant change is made to the configuration of the system.”

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 control 

deficiencies that need improvement:

 The General Support System’s (GSS) Active Directory (AD) is not configured to disable inactive user 

workstations. Instead, session timeout is configured at the individual workstation.

 GPO does not have a process in place to perform and document a periodic review of personnel with 

access to the IT GSS Platform to determine whether user access is appropriate.

 During our testwork, we identified 117 former employees that separated from GPO during the current 

year, and we noted the following: 

 28 separated employees retained active GPO’s Oracle Financials (GBIS) accounts for a 

period ranging from 31 to 114 days after their separation date. In addition, 2 of the 28 users 

attempted to login after their separation date.

 66 separated employees retained an active GSS account for a period ranging from 36 to 336 

days after their separation date. In addition, 2 of the 66 users attempted to login after their 

separation date.

 One separated employee retained an active PICS account for 84 days after their separation 

date.
8

GPO’s current policies do not require session locks for the GSS to be configured within AD or to perform 

annual review of user’s access. In addition, supervisors are not consistently following the account 

termination policies and procedures for separated users.

Failure to enforce consistent configuration settings, reviewing user access and disabling user accounts for 

terminated individuals increases the risk that the confidentiality and integrity of information and 

information systems will be compromised.

National Institute of Standard and Technology (NIST) Special Publication 800-53, Security and Privacy 

Controls for Federal Information Systems and Organizations, Revision 4, Control AC-11, Session Lock

states: 

“The information system:

1. Prevents further access to the system by initiating a session lock after [Assignment: 

organization-defined time period] of inactivity or upon receiving a request from a 

user; and 

2. Retains the session lock until the user reestablishes access using established 

identification and authentication procedures”

GPO Directive 825.33B states:

“User lists and privileges will be periodically reviewed. The review will be the basis for 

modifying access levels, including denying access to individuals as a result of task 

changes or changes in employment status.”

“Access control lists will be reviewed and updated on a periodic basis. Access will be 

denied to individuals who have been terminated or, at the discretion of management, to 

those that are the subject of adverse personnel actions.”

“Access will be denied to individuals who have been terminated, or at the discretion of 

management, to those that are the subject of adverse personnel actions.”

“Each system will have a process in place that ensures individuals are denied access to 

the system when employment is terminated, at the discretion of management, or are the 

subject of adverse personnel actions.”

Segregation of Duties

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

implemented at the system and application levels. GPO has not implemented automated controls to 

enforce segregation of duties to prevent conflicting roles from being assigned to a GBIS user. GPO stated 

they are in the process of implementing the Oracle Governance, Risk, and Compliance (GRC) module to 

automate the process to enforce segregation of duties.

Without the proper alignment of the segregation of duties procedures and the system user listing it makes 

it difficult for management to identify and monitor users with conflicting roles and responsibilities. This 

increases the likelihood that users with conflicting roles and responsibilities can go undetected.

GPO Directive 825.33B states:

“Access controls will enable the use of only the resources, such as data programs, 

necessary to fulfill an individual’s job responsibilities and will enforce separation of 

duties based on roles and responsibilities.”
9

Contingency Planning

Losing the capability to process, retrieve, and protect data can significantly impact an agency’s ability to 

accomplish its mission. For this reason, an agency should have (1) procedures in place to protect 

information resources and minimize the risk of unplanned interruptions, and (2) a plan to recover critical 

operations should interruptions occur. GPO did not finalize, approve and fully test the contingency plan 

for its general support system because the Office 365 project was not complete.

Without an effective contingency plan and testing process in place, GPO may not be able to successfully 

recover critical applications and systems to maintain business functions during the event of a service 

disruption.

GPO Directive 825.33B states:

“The GPO will safeguard its IT systems through the implementation of the GPO IT 

Security Program, which will accomplish the following: Define, document, and manage 

the contingency planning process, including training and testing, to provide IT systems 

with adequate continuity of operations upon disruption of normal operations.”

“The Chief Information Officer (CIO) is responsible for developing and maintaining an 

agency-wide IT Security Program, including providing for the continuity of operations in 

the event of system disruption. Contingency plan means a plan for emergency response, 

back-up operations, and post-disaster recovery for IT systems and installations in the 

event normal operations are interrupted. The contingency plan should ensure minimal 

impact upon data processing operations in the event the IT system or facility is damaged 

or destroyed.”

Recommendations:

We recommend that the Chief Information Officer (CIO):

Security Management

1. Complete the C&A package and supporting documents for PICS.

Access Controls

2. Update GPO’s policies and procedures to require the Information Technology division to modify the 

GSS AD settings and include session timeout or distribute guidance to GPO personnel in order to 

inform them of recommended session timeout settings.

3. Formally document policies and procedures for periodically reviewing access to the GPO GSS to help 

ensure that access is reviewed on a defined frequency and that the review is documented and 

implement controls to monitor compliance for the periodic review.

4. Update GPO’s policies and procedures for the timely removal of terminated users from GPO systems. 

This policy should also include a timeframe for removal of terminated users. 

5. Communicate to supervisors the importance of timely submitting access termination request forms to 

system owner to allow for terminated users to be removed in a timely manner.

6. Increase the frequency that management monitors the timely removal of user access from GPO 

systems.

Segregation of Duties

7. Ensure that the implementation of the GRC Module for GBIS to automate segregation of duties is 

implemented by February 2015, the scheduled completion date.
10

Contingency Planning

8. Finalize and approve the contingency plan for GSS and periodically perform contingency plan testing 

and document the results.

Management Response:

Management concurs with all conditions noted.
Section IV: Financial Statements

U. S. Government Printing Office | Financial Year In Review – FY 2014 38

SECTION IV

FINANCIAL

STATEMENTS
Section IV: Financial Statements

U. S. Government Printing Office | Financial Year In Review – FY 2014 39

U.S. Government Printing Office

Consolidated Balance Sheets

As of September 30, 2014 and 2013

(Dollars in Thousands)

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

2014 2013

ASSETS 

 Current assets Current assets

 Fund balance with Treasury (Note 2) Fund balance with Treasury (Note 2) $ 475,744 $ 508,267

 Accounts receivable, net (Note 3) Accounts receivable, net (Note 3) 133,507 123,224

 Inventory, net (Note 4) Inventory, net (Note 4) 34,379 28,804

 Prepaid expenses (Note 5) Prepaid expenses (Note 5) 3,504 1,040

Total current assets 647,134 661,335

 General property, plant and equipment, net (Note 6) General property, plant, and equipment, net (Note 6) 130,651 114,900

Total assets $ 777,785 $ 776,235

LIABILITIES AND NET POSITION

Current liabilities

Accounts payable and accrued expenses (Note 7) $ 105,078 $ 96,155

Deferred revenues (Note 8) 160,296 198,947

Accrued annual leave 9,608 9,707

Total current liabilities 274,982 304,809

Noncurrent liabilities

Workers' compensation liability (Note 9) 66,983 69,106

Total liabilities 341,965 373,915

Commitments and contingencies (Notes 10 and 11)

Net position (Note 12)

Cumulative results of operations:

Retained earnings 221,608 197,604

Invested capital 92,879 92,879

Unexpended appropriations 121,333 111,837

Total net position 435,820 402,320

Total liabilities and net position $ 777,785 $ 776,235
Section IV: Financial Statements

U. S. Government Printing Office | Financial Year In Review – FY 2014 40

U.S. Government Printing Office

Consolidated Statements of Revenues, Expenses,

and Changes in Retained Earnings

For the Fiscal Years Ended September 30, 2014 and 2013

(Dollars in Thousands)

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

2014 2013

OPERATING REVENUES

Printing and binding $ 574,745 $ 595,492

Appropriations 109,611 110,350

Sales of publications 6,645 7,836

Agency distributions 5,299 5,260

Total operating revenues 696,300 718,938

OPERATING EXPENSES

Printing and reproduction 267,281 277,200

Personnel compensation and benefits 206,303 202,698

Supplies and materials 122,128 132,005

Other services 32,466 31,320

Depreciation and amortization 20,737 21,896

Rents, communications, and utilities 14,739 15,051

Travel, transportation, and postage 8,255 8,110

Publications sold 2,510 2,618

Subtotal 674,419 690,898

Income before other expenses 21,881 28,040

OTHER EXPENSES

Decrease in workers' compensation liability 2,123 1,418

Net Income $ 24,004 $ 29,458

Retained Earnings, beginning of year 197,604 168,146

Retained Earnings, end of year $ 221,608 $ 197,604
Section IV: Financial Statements

U. S. Government Printing Office | Financial Year In Review – FY 2014 41

U.S. Government Printing Office

Consolidated Statements of Cash Flows

For the Fiscal Years Ended September 30, 2014 and 2013

(Dollars in Thousands)

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

2014 2013

CASH FLOWS FROM OPERATING ACTIVITIES 

Net income $ 24,004 $ 29,458

Adjustments to reconcile net income to net cash 

(used in) provided by operating activities:

Depreciation and amortization 20,737 21,896

Changes in assets and liabilities:

 (Increase) decrease in assets:

Accounts receivable (10,283) 17,952

Inventory (5,575) 3,087

Prepaid expenses (2,464) 116

 Increase (decrease) in liabilities:

Accounts payable, accrued expenses, and other 8,812 (13,067)

Deferred revenues (38,651) (1,482)

Accrued annual leave (100) 290

Workers' compensation liabilities (2,123) (1,418)

Total adjustments (29,647) 27,374

Net cash (used in) provided by operating 

activities (5,643) 56,832

CASH FLOWS FROM INVESTING ACTIVITIES

Capital purchases (36,489) (36,324)

Proceeds from sale of general property, 

plant, and equipment 113 35

Net cash used in investing activities (36,376) (36,289)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase in unexpended appropriations 9,496 7,117

Net cash provided by financing activities 9,496 7,117

Net increase (decrease) in fund balance (32,523) 27,660

 with Treasury

Fund balance with Treasury, beginning of year 508,267 480,607

Fund balance with Treasury, end of year $ 475,744 $ 508,267
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 42

NOTES TO THE

FINANCIAL

STATEMENTS
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 43

U.S. Government Printing Office

Notes to the Financial Statements

September 30, 2014 and 2013

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 in traditional and electronics formats.

The Public Printer, appointed by the President 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. Section 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 § 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

The Government Printing Office (GPO) prepares its financial statements in conformity with 

U.S. generally accepted accounting principles (GAAP), based on accounting standards issued 

by the Financial Accounting Standards Board (FASB), the private-sector standards-setting 

body. Under such standards, the GPO prepares its financial statements using the full accrual 

basis of accounting under which revenues are recognized (recorded or accrued) when earned 

and expenses are recognized as incurred, regardless of when cash is exchanged. 

The Federal Accounting Standards Advisory Board (FASAB) has been designated by the 

American Institute of Certified Public Accountants as the standards-setting body for financial 

statements of Federal Government entities, with respect to the establishment of GAAP. 

FASAB has indicated that financial statements prepared based upon accounting standards 

published by the FASB may also be regarded as in conformity with GAAP for those Federal 

agencies that have issued financial statements based upon FASB accounting standards in the 

past. Consistent with historical reporting, GPO’s financial statements are presented in 

accordance with accounting standards published by FASB.
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 44

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) as 

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 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 

law 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. The two major sources of revenue to the Revolving Fund are reimbursements from 

the Congressional Printing and Binding Appropriation and other Federal customers for 

providing printing, binding, and distribution services, including U.S. passport production, 

and publication and subscription sales to the public.

GPO’s 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.

GPO’s 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 
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 45

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 ByLaw Distribution Program; and the International Exchange Program. The majority of this 

annual appropriation is used to finance the FDLP. Expenditures from these appropriations 

are used to reimburse the GPO Revolving Fund for printing and binding, and other services 

and supplies furnished by GPO in accordance with 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 paper, 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. 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 held in 

inventory. 

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.
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 46

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.

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 as well as construction in 

progress and capitalized software in process. 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.
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 47

I. Workers’ Compensation Liability

The Federal Employees’ Compensation Act (FECA) provides income and medical cost 

protection to covered Federal civilian employees injured on the job, employees who have 

incurred a work-related occupational disease, and beneficiaries of employees whose death is 

attributable to a job-related injury or occupational disease. Claims incurred for benefits for 

GPO employees under FECA are administered by the Department of Labor (DOL) and are 

ultimately paid by GPO.

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 which have not yet been reimbursed. This liability is 

included in accounts payable and accrued expenses.

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 a composite rate from the Department of Treasury. 

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 valueadded 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 Department of the State are recognized at 

annually negotiated rates per passport at the time that the printing and binding process is 
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U. S. Government Printing Office | Financial Year In Review – FY 2014 48

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 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), which 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. The allowance for obsolete inventory is based on 

historical usage of supplies and materials. 

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 
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U. S. Government Printing Office | Financial Year In Review – FY 2014 49

performed. The expenses for uncollectible accounts receivable are recognized when 

receivables are deemed as potentially uncollectible, based on GPO’s collection experience. 

Depreciation and Amortization – GPO uses the straight-line method of depreciation and 

amortization to allocate a portion of the acquisition cost of property, plant, and equipment to 

each accounting period. The acquisition cost of each capitalized asset is depreciated, or 

amortized, over the asset’s estimated useful life, which is generally measured in years. The 

monthly depreciation, or amortization, of a capitalized asset commences at the beginning of 

the first full-month after the date that the capitalized asset was placed in service.

Rents, Communications, and Utilities – Rent and lease costs are incurred for the use of 

building space, equipment, and motor vehicles. GPO leases office and warehouse space from 

the General Services Administration and commercial lessors. 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 identifies cash flows from GPO 

operations and is used 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 
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 50

and liabilities as well as the disclosure of contingent liabilities at the date of the consolidated 

financial statements, and the amount of revenues and expenses reported during the reporting 

period. Actual results could differ from these estimates. 

The estimates that most significantly impact assets, liabilities, revenues, and expenses 

reflected in the accompanying consolidated financial statements are: the allowance for 

inventory obsolescence for supplies, materials, and publications held for sale; the allowance 

for doubtful accounts related to accounts receivable; the estimated useful lives of capitalized 

assets; the actuarial estimated liability for future workers’ compensation benefits; and the 

estimate for contingent liabilities.

O. Fair Value Measurement

GPO applies FASB Accounting Standards Codification, Fair Value Measurements and 

Disclosures (ASC 820-10) 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 consist of cash, accounts 

receivable, accounts payable, and accrued liabilities as of September 30, 2014 and 2013. The 

carrying amounts of these financial instruments approximate fair value because of the shortterm nature of these instruments. GPO holds no financial instruments that are measured at 

fair value on a recurring basis.

The approximate 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

As a Legislative Branch agency within the Federal Government, GPO is not subject to 

Federal, state, or local income taxes. Accordingly, no provisions for income taxes are 

recorded by the Agency.
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 51

2. Fund Balance with Treasury

A table of items included in GPO’s fund balance with Treasury, including funds on-hand or intransit to the Treasury, as of September 30, 2014 and 2013 follows:

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.

The uses of general funds for CP&B and S&E are restricted by appropriation language. 

Supplemental and other general funds include unexpended appropriations made to GPO and are 

for specific purposes as discussed in Net Position, Unexpended Appropriations (Note 12B). 

The total fund balance with Treasury decreased $32.5 million (6.4 percent) to $475.7 million in 

fiscal 2014 from $508.3 million in fiscal 2013. Contributing to the decrease in this account from 

September 30, 2013 was $40.6 million in cash deposits returned to customer agencies. Total 

general funds available increased $9.6 million (8.4 percent), and these funds are allocated to 

future approved projects.

3. Accounts Receivable, Net

Accounts receivable, net of an allowance for doubtful accounts, as of September 30, 2014 and 

2013, consisted of the following:

2014 2013

Fund Balances: 

Revolving fund:

Unrestricted $ 159,441 $ 167,733

Restricted: 

Customer deposit accounts 154,859 195,463

Other 38,503 31,705

Total revolving fund 352,803 394,901

General funds:

Congressional printing and binding 59,238 63,759

Salaries and expenses 25,075 27,084

Supplemental and other 38,628 22,523

Total general funds 122,941 113,366

Total $ 475,744 $ 508,267

(Dollars in thousands)
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U. S. Government Printing Office | Financial Year In Review – FY 2014 52

The majority of accounts receivable are due from other Federal agencies for goods and services 

provided by GPO. By law, these customers are required to reimburse the GPO Revolving Fund 

for the cost of products provided by GPO.

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, 2014, and 2013.

The majority of employee accounts receivable is 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.

Net accounts receivable increased by $10.3 million (8.4 percent) in fiscal 2014 from fiscal 2013. 

This increase was primarily attributable to an increase in printing orders from customer agencies 

during the fourth quarter of fiscal 2014. 

4. Inventory, Net

Inventories, net of an allowance for surplus and obsolete stock increased by $5.6 million (19.4

percent) as of September 30, 2014 from the prior year, are detailed as follows:

2014 2013

Federal agencies: 

Unbilled accounts receivable $ 96,172 $ 98,377

Billed completed work 40,911 29,157

Subtotal 137,083 127,534

Other receivables:

The public 370 205

GPO employees 1,166 1,225

Subtotal 1,536 1,430

Total accounts receivable 138,619 128,964

Less: Allowance for doubtful accounts (5,112) (5,740)

Total accounts receivable, net $ 133,507 $ 123,224

(Dollars in thousands)
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U. S. Government Printing Office | Financial Year In Review – FY 2014 53

5. Prepaid Expenses

Prepaid expenses or advances to others were $3.5 million as of September 30, 2014, and $1

million as of September 30, 2013. The majority of this amount is for advance payments made by 

GPO ($3.2 million) for planned leasehold improvements to the Stennis facility by the U.S. Army 

Corps of Engineers. The balance of the advance account is comprised of passport chips for 

calibrating new equipment, transit benefits and unused postage. 

6. General Property, Plant, and Equipment, Net

Net property, plant, and equipment as of September 30, 2014 and 2013, consisted of the 

following:

2014 2013

Supplies and materials $ 24,074 $ 19,447

Publications for sale 4,638 5,506

Paper 5,653 5,909

Work in process 4,006 2,595

Total inventory 38,371 33,457

Less: Allowance for surplus and obsolete inventory (3,992) (4,653)

Inventory, net $ 34,379 $ 28,804

(Dollars in thousands)

2014 2013

Land $ 9,971 $ 9,971

Buildings and improvements 90,899 86,008

Plant machinery and equipment 125,504 113,246

Computers and computer software 113,490 103,821

Furniture and fixtures 6,107 6,107

Motor vehicles 648 648

Leasehold improvements 10,582 10,544

Capitalized software in process 4,206 5,499

Capital improvements in process 28,192 17,222

Total 389,599 353,066

Less: Accumulated depreciation and amortization (258,948) (238,166)

General property, plant, and equipment, net $ 130,651 $ 114,900

(Dollars in thousands)
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 54

General property, plant, and equipment increased by $15.8 million in fiscal 2014 from fiscal 

2013 with capital additions of $36.5 million, offset by annual depreciation of $20.7 million. 

Included in the machinery and equipment (M&E) investment increase of $12.3 million was 

approximately $9.7 million in laser perforation and collating and lamination equipment for next 

generation secure credential products. Some of the additional GPO capital investments in fiscal 

2014 included about $3 million for power system upgrades. A majority of capital additions for 

computers and computer software in fiscal 2014 included FDsys hardware and software for $4

million, IT infrastructure upgrades for $3 million, and Oracle enterprise system (GBIS) upgrades 

of $1.2 million.

Capital improvements-in-progress (CIP) increased by $11 million in fiscal 2014 compared to 

fiscal 2013. CIP included $8.3 million for laser perforation, and card collating and lamination 

equipment projects for the ramp-up of new smart card capacity. 

Depreciation expense was $20.7 million in fiscal year 2014 and $21.9 million in fiscal year 

2013.

7. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2014, and 2013, were composed of 

the following:

The increase in accounts payable and accrued expenses of $8.9 million resulted in part from an 

increase in printing orders received from customer agencies during the fourth quarter. The Other 

category includes payables to two vendors ($4 million and $2.9 million, respectively) for Epassport microchip integrated circuits. Additional types of Other payables includes the 

categories of professional services, including IT software development, maintenance, and 

systems security. The accrued salaries and payroll taxes for fiscal 2014 included $2.2 million for 

estimated payments to employees participating in the Agency’s 2014-2015 buyout program.

These employees are scheduled to leave the Agency no later than December 31, 2014.

2014 2013

Accounts payable:

Commercial printing $ 62,388 $ 57,975

U.S. Government agencies 6,787 7,613

Other 26,948 25,455

Total accounts payable 96,123 91,043

Accrued salaries and payroll taxes 8,955 5,112

Total accounts payable and accrued expenses $ 105,078 $ 96,155

(Dollars in thousands)
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 55

8. Deferred Revenues 

As of September 30, 2014, and 2013, deferred revenues from customers consisted of the 

following:

GPO held $154.9 million and $195.5 million in customer deposit accounts as of September 30, 

2014, and 2013, respectively. Of these amounts, Federal Government customers had advanced 

funds of $153 million and $193.4 million for printing and binding deposit accounts, and 

customers advanced $1.9 million and $2.1 million for publication and information sales program 

deposit accounts as of September 30, 2014, and 2013, respectively. The funds in these deposit 

accounts will be applied to future orders placed by customers or refunded on request. The $38.7 

million (19.5 percent) reduction in fiscal 2014 from fiscal 2013 was primarily driven by the 

return of $36.8 million in cash deposits to the customer agencies. 

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 balances are refunded when the subscription is no longer available for sale, 

or the customer cancels the subscription.

GPO defers the recognition of revenues for unfilled customer orders of publications and other 

information products until the orders are shipped.

Advance billings are occasionally requested by customer agencies or used to finance high dollar 

orders until work is completed. GPO defers the recognition of revenues for advance billings to 

customers. This amount increased to $4.1 million in fiscal 2014 from $2.1 million in the prior 

year. 

9. Workers’ Compensation Liability

Claims incurred and paid by DOL as of September 30, 2014, and 2013, but not yet reimbursed to 

DOL by GPO, are approximately $6 million and $6.7 million, respectively. This component of 

worker’s compensation liability is considered current rather than long-term.

2014 2013

Deposit accounts $ 154,859 $ 195,463

Advance billings 4,051 2,143

Subscriptions 1,111 1,176

Unfilled orders 275 165

Total $ 160,296 $ 198,947

(Dollars in thousands)
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 56

GPO’s estimated non-current, actuarially derived future workers’ compensation liability was 

approximately $67 million and $69.1 million as of September 30, 2014, and 2013, respectively. 

GPO’s estimated, undiscounted, non-current, actuarially derived future workers’ compensation 

liability was approximately $99.3 million and $105.3 million as of September 30, 2014, and 

2013, respectively. These annual benefit payments have been discounted to present value using 

a composite rate from the Department of Treasury which resulted in discount rates as of 

September 30, 2014 and 2013, of 3.00 percent and 3.26 percent, respectively. 

10. Commitments

10. A. Operating Leases

As of September 30, 2014, 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. Annual lease and rental expenses for real and personal property were $3.7

million in both fiscal 2014 and fiscal 2013.

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

10. B. Obligations

GPO had unliquidated obligations of $364.2 million at September 30, 2014, and $242.1 million 

at September 30, 2013, of which $233.9 million and $125.1 million, respectively, were

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.

Fiscal Year Warehouse Office Total

2015 $ 533 $ 477 $ 1,010

2016 0 367 367

2017 0 361 361

2018 0 234 234

2019 & Thereafter 0 9 9

Total Minimum Lease Payments $ 533 $ 1,448 $ 1,981

(Dollars in thousands)
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 57

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 both September 30, 2014, and 2013, GPO has zero recorded 

estimated liabilities, respectively, related to claims in which management believes the likelihood 

of an adverse result against GPO is probable. If such amounts were to present themselves in 

future years, they would be included in accounts payable and accrued expenses in the financial 

statements. 

Contingencies where the risk of loss is reasonably possible, are approximately $1.3 million and 

$640,000, as of September 30, 2014 and 2013, respectively. Management believes that the 

ultimate disposition of these matters will not have a material adverse effect on GPO’s 

consolidated financial position, results of operations, and cash flows.

The Department of Justice (DOJ) represents the GPO in all litigation in Federal court. In these 

cases, amounts paid under any judgment, compromise settlement, or award are funded from the 

Judgment Fund administered by the Department of the Treasury (31 U.S.C. § 1304). As a 

legislative branch agency, GPO is not required to reimburse the fund for amounts paid on its 

behalf.

The Judgment Fund paid a total of $4.6 million in fiscal 2014 and $2.2 million in fiscal 2013 on 

behalf of GPO and other Federal Agencies. In fiscal 2014, $4.6 million was paid under a 

Consent Decree to resolve a lawsuit related to past recycling of wastepaper that may have 

contained polychlorinated biphenyl (PCB). GPO was one of 5 agencies identified in the Consent 

Decree. No allocation of the payment amount was made by DOJ and, based on the language of 

the Consent Decree, GPO’s share of the payment amount, if any, is not determinable. In fiscal 

2013 a $2 million payment was made by DOJ to settle a suit in which GPO was one of 19 

Federal agency defendants. The suit related to toxic waste that was disposed of by GPO in 

1992. The total settlement amount was recorded by DOJ against GPO in their reporting system, 

and DOJ did not attempt to attribute fair-shares of the settlement to each of the 19 agencies 

involved. GPO estimates that its fair-share of the settlement paid from the Judgment Fund in 

fiscal 2013 on its behalf was approximately $100,000. 

11. B. Environmental Liabilities

GPO’s Central Office in Washington, DC, is located in an industrial facility consisting of four 

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 
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 58

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 or remediate the visible and non-visible presumed asbestos

containing material, both friable and non-friable, within the GPO facility, were $722,000 as of 

September 30, 2014, and $453,000 as of September 30, 2013. The increased liability is the result 

of recently conducted investigative asbestos mappings and surveys. These amounts are included 

in accounts payable and accrued expenses on the financial statements. 

12. Net Position

12. A. Cumulative Results of Operations

Retained Earnings – Retained earnings include the net operating results of the GPO 

Revolving Fund, since inception, less certain required transfers to other Federal agencies.

Invested Capital – Invested capital represents the resources of the Federal Government 

that were directly appropriated to the Agency by Congress for investment in GPO assets

(land, buildings, equipment, and capital).

12. B. Unexpended Appropriations

The following table presents unexpended appropriation balances from September 30, 2012, 

through September 30, 2014, for appropriations made available to GPO:

Unexpended Appropriations

As of September 30, 2014, GPO had obligated all of the $59.2 million of the unexpended 

appropriations available for Congressional printing and binding, and all of the $23.5 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, 2014. At September 30, 

Appropriations (Dollars in thousands)

Revolving 

Fund

Salaries 

and 

Expenses

Congressional 

Printing and 

Binding Total

Unexpended balance at September 30, 2012 $ 19,913 $ 26,984 $ 57,823 $ 104,720

2013 fiscal year appropriation activity:

Received 3,967 31,437 82,130 117,534

Transferred 3,239 (3,239) 0 0

Expended (4,597) (29,627) (76,193) (110,417)

Unexpended balance at September 30, 2013 22,522 25,555 63,760 111,837

2014 fiscal year appropriation activity:

Received 8,064 31,500 79,736 119,300

Transferred 15,158 (5,675) (9,483) 0

Expended (7,116) (27,914) (74,774) (109,804)

Unexpended balance at September 30, 2014 $ 38,628 $ 23,466 $ 59,239 $ 121,333
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 59

2013, the obligations were $63.8 million in Congressional Printing and Binding 

Appropriations and $25.6 million in Salaries and Expenses Appropriations.

The Revolving Fund unexpended appropriations balances at September 30, 2014, and 2013

were $38.6 million and $22.5 million, respectively. The Revolving Fund unexpended 

appropriations balances are primarily 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, 2014, GPO had

expended $2.7 million from this appropriation. At the end of fiscal 2014, the balance 

available for future expenditure was $555,000. At the end of fiscal 2013, there was 

$740,000 available.

• In fiscal 2010, Congress appropriated $12.8 million to the Revolving Fund for 

information technology development and facilities repair. As of September 30, 2014, 

GPO had expended about $12.5 million from the appropriation, of which about $138,000

was expended in fiscal 2014. At the end of fiscal 2014, a balance of $226,000 was 

available for expenditure. At the end of fiscal 2013, a balance of $364,000 was available 

for expenditure. 

• In fiscal 2010, GPO transferred a total of $2.2 million from prior year Salaries and 

Expenses Appropriations to the Revolving Fund. This transfer was authorized to cover 

appropriation shortfalls (about $1.5 million of the $2.2 million) and for FDLP 

improvements (about $688,000 of the total). As of September 30, 2014, and 2013, a 

balance of $1.5 million was available for future expenditure.

• In fiscal 2011, GPO transferred $2.6 million from the Salaries and Expenses 

Appropriation to the Revolving Fund to cover salaries and expenses of the 

Superintendent of Documents. As of September 30, 2014, GPO had expended $1.4

million from this appropriation. As of September 30, 2014, a balance of $1.2 million was 

available. At the end of fiscal 2013, a balance of $2.6 million was available for 

expenditure.

• In fiscal 2012, GPO transferred a total of $9.9 million unexpended prior year balances of 

Congressional Printing and Binding appropriations remaining from fiscal 2011 and fiscal 

2010 and $1.1 million from prior year Salaries and Expenses Appropriations to the 

Revolving Fund. These amounts are available to Congressional Printing and Binding and 

Salaries and Expenses, respectively to offset requirements for new budget authority for 

fiscal 2015, and liquidate obligations incurred in subsequent years. These amounts were 

unexpended as of September 30, 2014. 

• In fiscal 2013, GPO transferred $3.2 million from the Salaries and Expenses 

Appropriations to the Revolving Fund. These amounts are available to the Revolving 

Fund to offset Salaries and Expenses requirements for new budget authority for fiscal 

2014 and to liquidate obligations incurred in subsequent years. These amounts were 

unexpended as of September 30, 2014. 
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 60

• In fiscal 2013, Congress appropriated $4 million to the Revolving Fund for information 

technology development. As of September 30, 2014, GPO had expended about $2.8

million from the appropriation. As of September 30, 2014, a balance of $1.2 million was 

available. At the end of fiscal 2013, a balance of about $3 million was available.

• In fiscal 2014, GPO transferred about $9.5 million from the Congressional Printing and 

Binding appropriations remaining from fiscal years 2009 through 2011 to the Revolving 

Fund, and $5.7 million from the Salaries and Expenses Appropriations from fiscal years 

2009 and 2010 to the Revolving Fund. These amounts are available to the Revolving 

Fund to offset Salaries and Expenses requirements for new budget authority for fiscal 

2014, and liquidate obligations incurred in subsequent years. These amounts were 

unexpended as of September 30, 2014. 

• In fiscal 2014, Congress appropriated $8.1 million to the Revolving Fund for information 

technology development. As of September 30, 2014, GPO expended about $3.7 million 

from the appropriation leaving a balance of $4.4 million available. 

13. Appropriated Funds

13. A. Total Appropriations Made Available

The total appropriations made available to GPO for fiscal 2014 and 2013 were as follows:

(Dollars in thousands)

2014 2013

Congressional printing and binding $ 79,736 $ 82,130

Salaries and expenses 31,500 31,437

Revolving fund 8,064 3,967

Total available appropriations $ 119,300 $ 117,534
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 61

13. B. Expended Appropriations

The total appropriations expended by GPO during fiscal 2014 and 2013 were as follows:

Expended Appropriations

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 

(Dollars in thousands) 

2014 2013 

Congressional printing and binding: 

Hearings $ 15,156 $ 18,339 

Congressional Record products 20,928 18,818 

Miscellaneous publications and 

printing and binding 22,391 24,236 

Bills, resolutions, and amendments 4,327 4,496 

Details to Congress 3,848 4,232 

Business and committee calendars 3,470 2,209 

Committee reports 1,423 1,713 

Other 2,150 823 

Public document envelopes 409 492 

Committee prints 672 835 

Total Congressional printing and binding 74,774 76,193 

Salaries and expenses: 

Depository library distribution 19,657 20,245 

Cataloging and indexing 6,975 8,030 

International exchange 953 996 

By-law distribution 329 356 

Total salaries and expenses 27,914 29,627 

Revolving Fund: 

Infrastructure improvements 7,118 4,423 

Workforce retraining 0 174 

Total revolving fund 7118 4 597 

Total expended appropriations 109,806 110,417 

Reconciliation of expended appropriations to the 

consolidated statements of revenues, expenses, and 

changes in retained earnings: 

Total expended appropriations 109,806 110,417 

Eliminations (Intra-agency) I (195) (67) 

Consolidated revenues from appropriations $ 109,611 $ 110,350 
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 62

payroll deductions from employees for their pension contributions. The Office of Personnel 

Management (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 record in the consolidated financial statements the 

unfunded pension liability and post-employment benefits relative to its employees.

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.

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 2014 and 2013 for investigators and lawenforcement officers, and 7.0 percent of basic pay in both years for all other employees. GPO 

contributions were $1.8 million and $2 million for the years ended September 30, 2014 and 

2013, 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 33.3 percent of 

basic pay in fiscal 2014 and 30.7 percent in fiscal 2013. The FERS contribution rate for all other 

employees was 15.1 percent in fiscal 2014 and 14.2 percent in fiscal 2013. GPO contributions to 

FERS totaled $14.7 million for fiscal 2014 and $14.4 million for fiscal 2013.

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 $17,500 for 

both 2014 and 2013. Employees who were 50 years old or older were allowed additional catchup contributions of $5,500 in 2014 and 2013. For FERS employees, the employer is required to 

contribute 1 percent of the employee’s base pay to the TSP, and to match voluntary employee 

contributions dollar-for-dollar for the first 3 percent of pay and 50 cents on the dollar for the next 

2 percent of pay. Thus, the employer contribution to the TSP can be up to 5 percent for FERS 

employees. Employees participating in CSRS may contribute to the TSP, but they do not receive 

any matching contributions from the employer. GPO made employer contributions to the TSP of 

$4.8 million in fiscal 2014 and $4.7 million in fiscal 2013.

Social Security System
Section IV (con’t.): Notes to the Financial Statements

 

U. S. Government Printing Office | Financial Year In Review – FY 2014 63

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 $117,000 in 2014 and $113,700 in 

2013) to SSA's Old Age, Survivors, and Disability Insurance (OASDI) Program. Additionally, 

GPO makes matching contributions for all employees of 1.45 percent of gross pay, without limit, 

to SSA's Medicare Hospital Insurance Program. Contributions to these SSA programs for the 

years ended September 30, 2014, and 2013 totaled $9.9 million and $9.7 million, respectively.

15. Major Customers

GPO’s primary customers are the Congress and large Federal agencies in the Executive Branch 

of the Federal Government. The following reflects GPO’s top six customers in fiscal years 2014

and 2013:

16. Voluntary Separation Incentive Program

In fiscal 2014, the Public Printer established the Voluntary Separation Incentive Program (VSIP) 

and the Voluntary Early Retirement Authority (VERA) under Federal authority 2 U.S.C. 60q, and 

with the approval of the House of Representatives Committee on House Administration, Senate 

Committee on Rules and Administration, and OPM. The Agency offered buyouts of up to 

$25,000, and early outs, with a goal of achieving a reduction of 100 positions. As of September 

30, 2014, a total of 104 employees had voluntarily agreed to separate from GPO under the 

program. As of September 30, 2014, GPO accrued $2.2 million in the Revolving Fund for the 

estimated liability of the VSIP buyout incentive payments on an estimated 90 VSIP separations,

as some employees historically reconsider their retirement decision. 

17. Subsequent Events

Subsequent to the financial statements date of September 30, 2014, the “Consolidated and 

Further Continuing Appropriations Act, 2015” (H.R. 83) passed by Congress in December 2014 

and signed into law by President Obama changed the name of the Government Printing Office to 

the Government Publishing Office. The name change had no financial impact on the agency. 

GPO has also evaluated all other significant subsequent events through February 2, 2015, the 

date which the financial statements were available to be issued, and found there were no material 

events that required financial adjustment, accrual, or further disclosure.

Billings % of Total Billings % of Total

U.S. Department of State $ 208,508 31.3% $ 219,343 31.2%

U.S. Congress 75,071 11.3% 75,370 10.7%

U.S. Dept. of Health & Human Services 46,859 7.0% 44,398 6.3%

U.S. Defense Logistics Agency 46,432 7.0% 56,253 8.0%

U.S. Dept. of Homeland Security 43,011 6.5% 36,203 5.1%

U.S. Department of the Veterans Affairs 35,984 5.4% 37,341 5.3%

(Dollars in thousands)

2014 2013
Section IV (con’t.): Abbreviations List 

U. S. Government Printing Office | Financial Year In Review – FY 2014 64

ABBREVIATIONS LIST

ASC Accounting Standards Codification

CP&B Congressional Printing and Binding

CSRS Civil Service Retirement System

DOL U.S. Department of Labor

EFT Electronic Funds Transfer

FASAB Federal Accounting Standards Advisory Board

FASB Financial Accounting Standards Board

FDLP Federal Depository Library Program 

FDsys GPO’s Federal Digital System

FECA Federal Employees’ Compensation Act

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

GPO or Agency U.S. Government Printing Office

HTML Hypertext Markup Language

IPAC Intra-governmental Payment and Collection (System)

ISO International Organization for Standardization

JCP Joint Committee on Printing

OASDI Old Age, Survivors, and Disability Insurance

OIG Office of the Inspector General

OMB Office of Management and Budget

OPM Office of Personnel Management

PACM Presumed Asbestos Containing Material

PDF Portable Document Format

PII Personal Identifiable Information

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

VSIP Voluntary Separation Incentive Program

XML Extensible Markup Language

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