4 United States Government Printing Office Annual Report 2005

U. S . G O V E R N M E N T P R I N T I N G O F F I C E I 2 0 0 5 A N N U A L R E P O R T

V O I C E S O F C H A N G E

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

7 3 2 N o r t h C a p i t o l S t r e e t N W ■ Wa s h i n g t o n , D C 2 0 4 0 1 - 0 0 0 1 ■ 2 0 2 . 5 1 2 . 0 0 0 0 ■ w w w. g p o . g o v
United States Government Printing Office Annual Report 2005 1

People are the backbone of any organization. That has never been more true 

than at the U.S. Government Printing Office where the employees are 

among the most loyal and dedicated public servants in the Federal Government.

In the GPO’s 2005 Annual Report you will learn the details of our amazing 

and progressive transformation underway through the eyes of the employees 

who are at the heart of the transition from an analog to a digital world.

It is through the Voices of Change that you will experience how the GPO’s 

Strategic Vision is unfolding in every major part of our business, operations, 

technology, and outreach units where we are now more productive, efficient, 

and effective than ever before.

We present to you the Voices of Change — a look at the implementation 

of the GPO’s Strategic Vision through the eyes of the people who are making 

it a reality — the men and women of the GPO.
2 United States Government Printing Office Annual Report 2005 United States Government Printing Office Annual Report 2005 3

Since my appointment as Public Printer, 

all of us at the Government Printing 

Office — employees and managers 

alike — have been transforming the 

venerable agency into a 21st century 

digital platform capable of addressing 

ongoing technological changes in 

how information is processed and 

disseminated. Our goal is to provide 

Government information in the form 

and formats our customers want and 

need in this burgeoning digital era, and 

to ensure that the abiding mission of 

the GPO — Keeping America Informed

— continues to be carried out for 

generations to come.

One of our first orders of business 

was to restore the GPO’s financial health. 

I am pleased to report that net income 

from consolidated operations for Fiscal 

Year 2005 improved to $6.1 million from 

$1.3 million the year before, reversing 

the previous pattern of financial losses. 

We also recorded a reduction to our 

long-term liability for the Federal 

workers’ compensation program.

FY 2005 marked a turning point 

in our transformation efforts with the 

release early in the year of our Strategic 

Vision for the 21st Century. This document 

provides a framework for how our 

transformation goals — development 

of a future digital system to anchor all 

future operations, reorganization of the 

agency into new product- and serviceoriented business lines along with 

investment in the necessary technologies, 

adoption of management best practices 

agency-wide including retraining to 

provide needed skills, and relocation of 

the GPO to facilities that are sized and 

we invested in a variety of new color 

and digital production technologies. 

We augmented our expert printing 

procurement services for Federal 

agencies by awarding an innovative new 

convenience duplicating and printing 

contract. We also significantly increased 

the dollar limit on popular simplified 

purchase agreements, expanding the 

ability of Federal agencies to procure 

products and services directly from lists 

of pre-qualified vendors without first 

going through GPO.

In our Information Dissemination 

area, we developed a plan to partner with 

a private sector sales and distribution 

provider who will expand Government 

publications sales offerings to the 

public while returning a portion of the 

revenues to the GPO. We also engaged 

the depository library community in a 

dialog to define the future of the Federal 

Depository Library Program while 

continuing to move the Program toward 

a predominantly electronic basis as 

required by Congress. The total number 

of titles we now make available on GPO 

Access increased to more than 300,000, 

with an average of 35 million retrieved 

every month.

Our Oracle enterprise system will 

replace a number of labor intensive 

accounting and inventory functions with 

IT solutions, reducing cost and speeding 

work throughput. Expanded employee 

training opportunities were also made 

available, ranging from new offerings 

on the shop floor to “transformational 

leadership” seminars for all supervisors 

and managers. Our Digital Conversion 

System will provide new retraining 

“Our goal is to provide 

Government information 

in the form and formats 

our customers want and 

need in this burgeoning 

digital era...”

from the Public Printer

BRUCE R. JAMES

Public Printer of the United States

November 2005 

equipped to meet our future needs — 

will be carried out and funded. During 

the year we made significant progress in 

each of these directions.

The core of our future operations 

will revolve around a digital content 

system designed to organize, manage, 

and output authenticated content for 

any use or purpose. During the year we 

secured the majority of the funds we 

will need for this project. We also began 

outreach to key elements of our customer 

community on our plan and, at year 

end, conducted an Industry Day event to 

solicit advice and information on vendor 

capabilities to help develop the system.

We created a new business line for 

Security and Intelligent Documents that 

consolidates our longstanding expertise 

in security documents and offers a 

broad range of consultative services to 

Federal agencies responding to new 

standards and statutory requirements in 

this area. An early product of the unit 

was the security printing requested by 

the Joint Congressional Committee on 

the Inauguration to support the first 

Presidential inaugural ceremonies since 

9/11. We also created a new Digital 

Media Services business line to provide 

essential retraining in digital production 

skills and generate content from legacy 

documents for eventual ingest to our 

digital content system.

We endowed other business lines 

with new capabilities. To improve plant 

production efficiency and broaden the 

range of product and service options 

for Congress and Federal agencies, 

opportunities. Late in the year we 

submitted a plan to Congress for a 

voluntary separation incentive program 

to generate additional cost savings, 

which will be dedicated to investment in 

retraining.

Although the GPO is not subject 

to the Government Performance and 

Results Act (GPRA), we take the spirit 

and intent of its provisions seriously, 

particularly its emphasis on performance 

measurement. During the year we 

worked to design systems to provide 

quantitative measurement in evaluating 

the progress of our strategic and 

management initiatives.

Progress toward our goal to relocate 

the GPO to new facilities moved ahead 

in FY 2005 with the delivery of a formal 

plan for this project by our expert real 

estate advisory firm. The plan, along with 

draft legislative language to authorize 

the project, was submitted to our 

oversight and appropriations committees 

accompanied by legislative briefings. We 

also began work on a plan to establish 

an ancillary production site for passports 

and other essential Government 

documents.

The GPO made a number of 

significant strides forward toward our 

transformational goals in FY 2005. In 

the pages that follow is the story of our 

efforts as seen through the eyes of the 

dedicated men and women who work 

here. To them goes the credit for setting 

the GPO on a new course that will well 

serve our stakeholders in Congress, 

Federal agencies, the library community, 

and the public for decades to come. 
United States Government Printing Office Annual Report 2005 5

Taking a Government agency 

that dates back to 1861 into the era of 

online data and new technology calls 

for investing in training opportunities, 

and 2005 was a key year for new 

beginnings and new ways of doing 

things at the GPO.

From employees to managers, and 

from supervisors to executives, virtually 

everyone at the GPO underwent some 

type of training in the past year. GPO’s 

Workforce Development Office launched 

new educational programs that all 

supervisors and managers were required 

to complete. One was an e-learning 

segment and the other was a five-day 

transformational leadership course. 

Workforce Development has also 

purchased a limited number of licenses 

to pilot test another online e-learning 

tool that provides access to a vast range 

of e-learning and performance support 

resources including interactive courses, 

learning simulations, and digitized 

content of the latest and best business 

and technical books.

Supervisors are taking not only 

the mandatory classes, but are signing 

up for the optional supervisor courses 

that are available. Meanwhile, employees 

are taking computer-related classes, 

safety instruction, and quality control 

and troubleshooting courses in greater 

numbers.

One of GPO’s transformation 

initiatives in the plant’s Press Division 

was to increase training opportunities 

for all employees. The Press Division, 

along with Workforce Development, has 

purchased a PC-based training program 

designed to enhance the skill level of 

press operators and apprentices. 

Also established this year was a 

Plant and Apprentice Training Initiative 

Program designed to identify the future 

needs of plant operations and establish 

the appropriate skills training for the 

workforce in Plant Operations.

Training wasn’t the only focus of our 

investment in employees this year. A new 

Goal Sharing Program was implemented 

in 2005 that gives employees the 

opportunity to make a positive difference 

in the GPO and earn a cash refund at 

the same time. The program is designed 

to be a long-term effort based on cost 

savings. It involves all GPO employees 

in setting resource-saving goals and will 

reward employees if the agency achieves 

or exceeds those goals. 

A panel discussion on “Your Path 

to Excellence” was also conducted to 

allow GPO employees the opportunity to 

discuss strategies that were beneficial to 

them in achieving career objectives. The 

purpose of this panel provides employees 

with information that they use for 

making career decisions as the agency 

transforms itself into a 21st century 

operation.

4 United States Government Printing Office Annual Report 2005

“I am currently beta testing 

the latest advancement in 

communication technology 

for the Deaf at the GPO. 

The videophone enables me to 

communicate at a rate of about 

200 words per minute as opposed 

to 50 wpm with my TTY. 

This natural communication 

allows me to forge bonds with 

my co-workers, technicians 

and clients. It also enables me 

to develop a rapport with my 

customers. The best thing about 

the videophone is that I am no 

longer bound by intimidating 

and archaic protocols that limit 

my communication and I am 

empowered by being able to 

speak naturally and free.” 

“Advanced training within the 

Press Division is an essential part 

of GPO’s future.” 

“Working in Workforce Development has given me the opportunity to dialogue 

with fellow GPO employees while focusing on changes in our Plant Operations 

through the Plant and Apprentice Training initiative. I have found this 

experience rewarding as we move towards transitioning the Plant Operations 

workforce to the digital era.” I V I N A P O W E L L , P r i n t i n g S p e c i a l i s t

The people of the GPO have 

what it takes to propel a 150-

year-old agency from a printcentric operation to a digital 

powerhouse. Today, the GPO’s 

workforce is made up of a 

unique blend of long-time 

GPO employees and those 

who have recently joined us 

from the private sector, sister 

Government agencies, and 

right out of college. That mix 

of talent, drive, and skill has 

reconfigured the agency’s 

dynamics and has brought 

about a renewed energy 

and spirit that has spread 

throughout the GPO. 

BYRON ZIMMERMAN, IT Specialist 

TIMOTHY BURKE, 

people Head Offset Pressperson
6 United States Government Printing Office Annual Report 2005 United States Government Printing Office Annual Report 2005 7

The GPO has awarded a new, 

nationwide convenience printing 

contract that provides comprehensive 

service for our Federal customers through 

a nationwide network of local convenience printing outlets. This helps fulfill 

our Strategic Vision goal of providing our 

customers with greater choices 

in how they acquire printed products 

and services. 

In response to requests from our 

agency customers, and as planned in the

Strategic Vision, GPO has increased the 

limit on Simplified Purchase Agreements 

(SPA) from $2,500 to $10,000. The SPA 

is an optional, self-service acquisition 

program the GPO offers to agency 

customers. It is a schedule of printing 

and graphic services with pre-competed 

vendors that our customers may access 

directly, minimizing their administrative 

procedures. 

From the training classrooms 

to speaking face-to-face with 

our customers, the GPO is 

reinventing itself and putting 

our customers first.

To that end, the GPO’s 

Customer Services has made 

two noteworthy changes that 

will make doing business with 

the GPO that much easier and 

faster for our Federal agency 

customers. 

b u s i n e s s

6 United States Government Printing Office Annual Report 2005

“Finally, we, at 

the Government 

Printing Office, have 

been marked with a 

new organizational 

culture. This culture 

encourages continuous 

innovation, change, 

and improvement! 

I’m excited about the 

changes going on at the 

GPO. I have worked on 

numerous projects over 

the past year, and these 

projects have given 

me a sense of pride 

and an opportunity to 

contribute to the overall 

mission and strategic 

vision of the GPO.” 

JOANN SHARP, Printing Services Specialist

LEKEITH STANCIL, 

Financial Data Analyst

“GPO has given me the 

opportunity to work on many 

exciting projects to help 

fulfill the agency’s Strategic 

Vision, one of them being 

the Convenience Printing 

Contract. The Convenience 

Printing Contract will give our 

customers choices they never 

had before.”

“GPO’s Simplified Purchase Agreement 

provides our customers with flexibility 

they can use to get the products they 

need.” BRIAN COLEMAN, Agency Publishing Specialist
8 United States Government Printing Office Annual Report 2005 United States Government Printing Office Annual Report 2005 9

The GPO has received approval 

from the Appropriations Committees 

to reprogram millions of dollars in 

unexpended balances of prior year 

appropriations for the Future Digital 

System (FDsys). This milestone means 

that we now have most of the funds 

available to build a world-class system 

that will ingest, preserve, and provide 

permanent public access to information 

published by all branches of the 

Government. GPO’s Office of Innovation 

and New Technology is moving full 

steam ahead with the project and is now 

in the implementation planning phase of 

the Future Digital System. 

Members of the Information 

Dissemination staff have reinvented 

their business to get in front of 

changing technology and improve our 

commitment to excellence and customer 

service by integrating Pay.gov into the 

U.S. Government Online Bookstore. 

Pay.gov is a secure Government-wide 

financial transaction portal linked 

New and emerging 

technologies are changing 

the way we do business at 

the GPO for the better, helping 

provide our customers — the 

public, agencies, Congress, 

our library partners — the 

products and services they 

need quickly and effectively. 

As you are about to learn, the 

GPO has made tremendous 

strides in embracing new 

technologies throughout our 

entire operation.

directly to the GPO Sales Program and 

is available 24 hours a day, seven days 

a week, including holidays. This system 

processes GPO credit card remittances in 

real-time, ensuring monies are deposited 

within GPO accounts as soon as these 

transactions are completed online. 

But that’s not all: to further improve 

the Online Bookstore, additional 

services will be completed shortly to 

process international orders online in 

addition to allowing our customers the 

convenience to expedite their shipments 

via USPS Priority and Express Mail. These 

changes are ensuring we are meeting new 

customer needs and providing worldclass service to our customers. 

The GPO is also establishing 

a Public Key Infrastructure (PKI) to 

authenticate electronic Government 

documents it provides to the public. 

A PKI is a secure method to transfer 

electronic information. PKIs are used to 

secure various electronic activities such 

as e-commerce and e-mail transactions. 

The GPO will “stamp” authentic 

documents with a mark that users will 

recognize. When users see this digital 

mark, they will know that the document 

is authentic. This is the first step 

toward authenticating future electronic 

documents. 

Future Digital System, Pay.gov, and 

PKI — if that sounds like we’ve been 

busy this year, read on. There’s more.

We are also implementing an Oracle 

Enterprise system application to replace 

labor-intensive manual completion of 

forms and speed up the billing process 

to our customers for services provided. 

The system tracks and manages the 

entire inventory process — ordering, 

procurement, receiving/inspection, 

inventory, internal distribution, and 

vendor payment. This new electronic, 

paperless inventory control work process 

allows for better reporting, increased 

efficiencies and productivity, and better 

inventory management.

8 United States Government Printing Office Annual Report 2005

“GPO is transforming from an ink-and-paper operation to a highly 

capable and secure multi-media digital dissemination environment.” 

JOE GALINDO, IT Specialist 

DARRYL WALKER, IT Specialist

“The project management 

and problem solving courses 

I attended at the GPO have been 

empowering factors for me and 

the project team throughout the 

Oracle implementation.”

t e c h n o l o g y

“As part of GPO’s authentication initiative, I have been 

analyzing how public key infrastructures and digital 

signature technologies can be used to authenticate 

and add GPO’s Seal of Authenticity to documents on 

GPO Access.” L I S A L A P L A N T, L e a d P r o g r a m P l a n n e r
10 United States Government Printing Office Annual Report 2005 United States Government Printing Office Annual Report 2005 11

new digital color proofing system will 

decrease costs and enable the GPO to 

expand its services to Congress and the 

agencies of Government. The four-color 

press will replace several 27-year-old, 

one-color presses. The press will also 

serve as backup to the passport press. 

The purchase of this new equipment 

moves the agency one step closer to 

a fully integrated digital printing and 

binding line. The GPO also received 

approval for a new computer-to-plate 

processor. This large format platemaker 

will replace older equipment, increase 

efficiency, and allow GPO to produce 

high-resolution plates. The platemaker 

can make digital plates and plates with 

high resolution for the e-passports. 

The GPO is also exploring 

opportunities to outsource all or parts 

of the sales and agency distribution 

programs. The GPO is looking for 

vendors to recommend an entirely new 

Today’s GPO is more 

efficient than ever before as 

it constantly identifies and 

updates processes to make 

its operations run like a welloiled machine. Here are a few 

examples from the past year.

 The GPO has made several 

investments this year that 

support the section of the 

Strategic Vision that calls for 

building a new printing and 

digital information factory. 

With the approval from the Joint 

Committee on Printing, the GPO 

procured a new color perfector 

press, digital color proofing 

system, and several pieces 

of equipment for the production 

of biometric passports. The

model for a publications 

sales and distribution 

operation. Vendors 

will present new models 

based on their existing, 

large-scale sales and 

distribution networks 

and technologies, 

providing the 

opportunity to better 

market the GPO’s 

products at lower 

costs. The GPO wants 

to improve service to 

our customers, while continuing to fulfill 

its mission of Keeping America Informed

through the sale of public documents. 

Just in Time. That is the name 

of a new paper contract at the GPO. 

Employees from several sections within 

the GPO worked together to split the 

paper contract to allow for multiple 

vendors to work together to provide the 

GPO with the paper needed to function. 

The GPO now has several options for 

paper procurement. By breaking down 

one large contract, we allowed bidders 

to only bid on the items that they could 

provide easily and economically.

The GPO’s Binding Division is 

responsible for the Digital Print Center, 

encompassing the production of 

traditional documents to digital printon-demand documents. The GPO is 

in the process of procuring a state-ofthe-art digital bookbinding line that 

will transform the methods to produce 

printed products.

Meanwhile, the new Security 

and Intelligent Document Business 

Unit was busy this year working with 

the Department of State on the new 

electronic passport. In the same vein, 

the GPO also worked on a securitysensitive project when it produced the 

Presidential Inauguration tickets, which 

embraced countless anti-counterfeiting 

technologies. 

10 United States Government Printing Office Annual Report 2005

“Everyone can 

play a part in 

helping to make 

the GPO a more 

efficiently run 

agency. I think 

the Goal Sharing 

Program has 

given us an 

incentive to do so.”

SARAH CIESLIK, Program Planning Specialist

ALECIA WOODRUFF, Supply Systems Analyst

o p e r a t i o n s “It’s great to be part of a team that develops new 

and innovative ideas for getting information to the 

public more efficiently and effectively.” 

“I’ve learned how to write the appropriate specifications 

needed for GPO to procure printing and digital equipment 

from the private sector.” J AY A N , M e c h a n i c a l E n g i n e e r
12 United States Government Printing Office Annual Report 2005 United States Government Printing Office Annual Report 2005 13

requests for publication prices to 

complex inquiries regarding the language 

contained in statutes and proposed 

legislation. So far this year, the Center’s 

call abandonment rate, a key measure 

of how quickly GPO responds to the 

public, has been reduced by more than 

50 percent. Other successes include 90 

percent faster processing of publication 

orders from the public. The Center 

has also implemented a program to 

streamline and automate the ordering 

process for book dealers who resell 

Government publications to the public. 

The National Park Service is currently 

participating in a pilot program that 

has resulted in reducing book dealer 

order-processing time from 72 hours to 

24 hours. 

To meet customer needs, the 

permanent, or bound, edition of the 

Congressional Record is now available to 

The GPO name is synonymous 

with public access to 

Government information. And 

that was apparent this year as 

our Information Dissemination 

organization engaged in major 

initiatives to meet the needs 

of the American people in the 

digital age.

 Great progress has been 

made in the GPO Customer 

Contact Center. In FY 2005, 

GPO’s centralized Customer 

Contact Center processed 

about 232,000 incoming calls 

and some 37,000 e-mails from 

the public, ranging from simple

the public online via GPO Access. The 

online application, which allows users 

to search and browse the information, is 

a comprehensive guide to the contents 

and is an enhanced aid in tracking 

legislation. The bound Congressional 

Record is different from the daily 

version. At the end of each session of 

Congress, the daily editions are collected, 

re-paginated, and re-indexed into a 

permanent, bound edition. The bound 

edition also incorporates changes and 

additions made to the Daily Record by the 

House and Senate. By eliminating the 

need to search through print editions of 

the daily Congressional Record, the online 

bound edition is a vital reference tool for 

researchers.

The Congressional Record was the star 

of another first at the GPO. For the first 

time ever, the GPO gave Congressional 

offices the option of offering their 

constituents visiting the Washington, 

DC, area, the unique opportunity to tour 

the place where history has been made 

for 150 years. The tours were offered 

during the summer and early fall and 

took visitors through the journey of one 

of our key publications, the Congressional 

Record, as it made its way through the 

GPO from the time it entered our doors 

until it was disseminated online and in 

print first thing in the morning when 

Congress is in session.

12 United States Government Printing Office Annual Report 2005

BERINE MORRISON, 

Contact Center Team Leader

“GPO has trained me to provide our customers with excellent service 

in order to meet the needs of our customers quickly and accurately.”

R O N G R E E N ,

J o u r n e y p e r s o n B o o k b i n d e r

“I am responsible for the 

production of important 

materials for the U.S. 

Congress, such as the 

Congressional Record, 

Senate and House 

calendars, bills, reports, 

appropriation hearings, 

and many others.

This responsibility is 

a new and interesting 

challenge for me every 

night.”

“My training in the Electronic Job Section includes reading and 

reviewing materials from the U.S. Senate and the House 

of Representatives. We are always ready to go to work when 

Congress calls on us.” M A R T Y T R AV E R S , P r i n t e r P r o o f r e a d e r

o u t r e a c h
14 United States Government Printing Office Annual Report 2005

For the second year in a row, the GPO has experienced positive financial results. GPO earned a contribution to new investment of 

$6.1M in FY 2005, before other expenses, as compared to $1.3M in FY 2004. The improvement in operating performance is reflective 

of a 3.0% increase in revenue from operations coupled with focused expense control and of the benefits realized by the Retirement 

Separation Incentive Program conducted in FY 2003 and FY 2004.

Revenue from operations increased 3.0% to $698.7M from $678.4M accompanied by a 1.8% increase in operating costs while 

overall revenue increased 1.6% to $702.7M from $691.8M with less than a 1% increase in overall costs.

The GPO recorded an overall positive contribution of $9.6M in fiscal 2005 as compared to an overall positive contribution of 

$11.3M in fiscal 2004. It is important to note that $3.48M of the 2005 contribution and $9.9M of the FY 2004 contribution reflect 

a reduction in the estimated cost of the GPO’s future long-term workers compensation liability which had been recorded in a prior 

fiscal year. The future workers’ compensation liability is an estimate that is determined each year by the Department of Labor (DOL) 

and is adjusted up or down based on the annual analysis by DOL’s actuary.

The GPO’s Balance Sheet continued to strengthen as a result of improved operating 

performance. Working Capital increased to $180.5M in 2005 from $176.4M in 2004 or an 

increase of 2.3%. Accounts receivable dropped by 28% and inventories dropped 1.8% on an 

overall 1.6% revenue increase.

In FY 2005, the GPO recorded a $3.48M non-cash expense reduction in the estimated 

cost of its future long-term workers’ compensation liability. The expected future cost at the 

end of FY 2005 was $76.1M as opposed to $79.6M at the end of FY 2004.

It is important to note that for the first time in 3 years (FY 2002) the GPO now has 

positive retained earnings. The GPO’s positive retained earnings of $1.3M includes $76.1M 

of potential future year workers’ compensation expense. Excluding the reserve for this 

estimated future charge, the GPO would have positive retained earnings of $77.4M.

United States Government Printing Office Annual Report 2005 15

f i n a n c i a l s

Cash provided by operations improved by about $20.9M over FY 2004. During FY 2005, the GPO generated $22.3M from operations 

as opposed to $1.4M in FY 2004. The GPO made investments of $4.8M and committed an additional $10M toward future growth 

as compared to $10.4M that was expended in FY 2004. In fiscal 2005, the GPO used $5.0M of cash from financing activities 

including expenditures to improve GPO Access and the Integrated Library System. This source of cash represents the activity of certain 

appropriations made by Congress to the GPO. When funds are expended the appropriation reimburses the Revolving Fund.

Summary of Revenues, Expenses, and Net Income 2005 2004

(in thousands)

Revenues $ 702,665 $ 691,754 

Expenses 696,523 690,424 

 Net Income before other operating expenses $ 6,142 $ 1,330

 Changes in long term workers’ compensation liabilities 3,481 9,929 

Net Income $ 9,623 $ 11,259

Summary Balance Sheet 2005 2004

(in thousands)

Assets

Current Assets 

Fund balance with the U.S. Treasury $ 206,711 $ 194,018 

Accounts receivable, net 104,101 144,589 

Inventories, net 9,054 8,898 

Prepaid expenses 3,313 432 

Total current assets $ 323,179 $ 347,937 

Property, plant, and equipment 56,172 59,198 

Total Assets $ 379,351 $ 407,135 

Liabilities and Net Position

Current Liabilities 

Accounts payable & accrued expenses $ 77,864 $ 88,546 

Deferred revenues 54,742 73,703 

Accrued annual leave 10,039 9,294 

Total current liabilities $ 142,645 $ 171,543 

Other liabilities 

Workers’ Compensation Liability 76,122 79,603 

Total Liabilities $ 218,767 $ 251,146 

Net position

Cumulative results of operations: 

Retained earnings (deficit) $ 1.320 ($8,303)

Invested capital 92,879 92,879 

Unexpended appropriations 66,385 71,413 

Total Net Position 160,584 155,989 

Total Liabilities and Total Net Position $ 379,351 $ 407,135 

Summary Statement of Cash Flows 2005 2004

(in thousands)

Cash Flows from Operating Activities

Net Income $ 9,623 $ 11,259

Provided by (used in) operating activities: $ 7,636 $ 7,559 

(Increase) decrease in assets 37,451 (29,203) 

Increase (decrease) in liabilities (28,902) 21,761

Workers’ compensation liability (3,481) (9,929)

Total adjustments $ 12,704 $ 9,812 

Net cash provided by (used in) operating activities $ 22,327 $ 1,447

Cash flows from Investing Activities (4,608) (10,300) 

Cash flows (for) from Financing Activities (5,026) (150)

Net Increase (Decrease) in Cash Balance $ 12,693 ($ 9,003) 

The summary tables are 

excerpts from the full 

audited consolidated 

financial statements 

and are not intended 

to substitute for the 

full audited financial 

statements which 

are included in the 

accompanying CD-ROM.

For FY 2005, the 

GPO received a clean 

audit opinion on its 

consolidated financial 

statements from an 

independent auditor.
16 United States Government Printing Office Annual Report 2005 United States Government Printing Office Annual Report 2005 3

The people of the GPO are the driving force behind the successful transition 

in our business, operations, technology, and outreach. Thanks to the dedicated 

workforce and teamwork of the men and women of the GPO, we are now more 

productive, efficient, and effective than ever before in the agency’s long and 

proud history. The story of the successful implementation of the GPO’s 

Strategic Vision as seen and told by the people of the GPO is the heart of the 

2005 Annual Report, so accurately named Voices of Change.

16 United States Government Printing Office Annual Report 2005

The GPO’s 2005 Annual Report Voices of Change has been designed, written, and printed by U.S. Government Printing Office employees.
U. S . G O V E R N M E N T P R I N T I N G O F F I C E I F I N A N C I A L Y E A R I N R E V I E W

F i s c a l Ye a r s 2 0 0 5 a n d 2 0 0 4 ( w i t h I n d e p e n d e n t A u d i t o r s ’ R e p o r t T h e r e o n )

V O I C E S O F C H A N G E
I. Management’s Discussion and Analysis (Unaudited) ....................................................................................2

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

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

Financial Results for Fiscal Year 2005 ...............................................................................................................................7

Performance Measures: .....................................................................................................................................................8

Operating Performance Measures .................................................................................................................................8

Financial Performance Measures ..................................................................................................................................9

Possible Future Effects of Existing Events and Conditions ...........................................................................................10

Fiscal Year 2006 Projections ............................................................................................................................................10

II. Independent Auditors’ Report ..................................................................................................................... 12

III. Consolidated Financial Statements ............................................................................................................. 20

Consolidated Balance Sheets ..........................................................................................................................................21

Consolidated Statements of Revenues and Expenses ....................................................................................................22

Consolidated Statements of Cash Flows ........................................................................................................................23

Notes to Consolidated Financial Statements ............................................................................................. 24

1. Summary of Significant Accounting Policies .............................................................................................................24

2. Fund Balance with the U.S. Treasury ..........................................................................................................................29

3. Accounts Receivable ....................................................................................................................................................30

4. Inventories ...................................................................................................................................................................30

5. Property, Plant, and Equipment ................................................................................................................................31

6. Accounts Payable and Accrued Expenses ...................................................................................................................31

7. Deferred Revenues .......................................................................................................................................................31

8. Workers’ Compensation Liability ...............................................................................................................................32

9. Commitments .............................................................................................................................................................33

10. Contingencies ............................................................................................................................................................33

11. Net Position ...............................................................................................................................................................34

12. Appropriated Funds ..................................................................................................................................................35

13. Employee Benefit Plans .............................................................................................................................................37

14. Concentration of Credit Risk ....................................................................................................................................38

15. Major Customers .......................................................................................................................................................38

16. Retirement Separation Incentive Program ...............................................................................................................38

17. Regional Operations Closings and Consolidations ................................................................................................39

18. Goal Sharing Program ..............................................................................................................................................39

IV. Consolidating and Supplemental Schedules (Unaudited) ........................................................................... 40

Consolidating Balance Sheet by Fund Type ...................................................................................................................41

Consolidating Schedule of Revenues and Expenses by Fund Type ..............................................................................43

Consolidating Schedule of Cash Flows by Fund Type ..................................................................................................44

Supplemental Schedule of Appropriated Funds ............................................................................................................45

Supplemental Schedule of Balance Sheets for Revolving Fund ....................................................................................46

Consolidating Schedule of Income (Loss) before Other Operating Expenses by Major Program ............................ 50

Supplemental Schedule of Income (Loss) before Other Operating Expenses 

 for Printing and Binding Operations ........................................................................................................................52

Supplemental Schedule of Income (Loss) before Other Operating Expenses for Information Dissemination ........54

UNITED STATES GOVERNMENT PRINTING OFFICE

FY 2005 Financial Year in Review — Table of Contents
2 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004

Mission

GPO has been faithfully serving the 

Nation by Keeping America Informed for 

over 140 years. Our core mission is to 

ensure that the American public has 

access to Federal Government information. The Agency has successfully 

accomplished this mission by working in close partnership with all three 

branches of the Federal Government in 

the creation, cataloging and indexing, 

reproduction, storage, dissemination, 

authentication, and preservation of 

Federal Government information. GPO 

utilizes conventional technology and 

state-of-the-art methods to produce 

and distribute Federal Government 

information. GPO ensures that Federal 

Government information is readily 

available to all citizens of this great 

nation. Accordingly, Federal Government information is accessible in an 

array of communication mediums 

from traditional printed products, such 

as books and pamphlets, to electronic 

documents and on-line databases that 

are accessible through the Internet by 

the entire World.

By law and tradition, the Agency 

has three essential missions:

■ To provide the agencies and organizations that make up the three 

branches of the Federal Government 

with expert publishing and printing 

services, on a cost-recovery basis, in 

order to avoid duplication and waste 

of government resources.

■ To provide, in partnership with 

Federal Depository Libraries, for 

nationwide community facilities for 

the perpetual, free and ready public 

access to the printed and electronic 

documents, and other information 

products, of the Federal Government.

■ To distribute, on a cost-recovery 

basis, copies of printed and electronic documents and other Federal 

Government information products 

to the general public.

GPO is one of the Nation’s oldest 

and most venerable agencies, within 

which the official version of every great 

American state paper since President 

Lincoln’s time has been produced. 

Many of the Nation’s most important 

information products, such as the Congressional Record and all other legislative 

information supporting the U.S. Senate 

and House of Representatives, are produced at the GPO Plant in Washington, 

DC. This 1.5 million square foot industrial complex is the largest Government 

information processing, publishing, 

and distribution facility in the World. 

The GPO Plant is primarily tasked to 

produce certain core products that generally have high quality, high security, 

and/or short turnaround requirements. 

Therefore, GPO relies heavily on the 

private sector to satisfy the majority of 

the Federal Government’s publishing 

requirements in an economical and 

efficient manner.

GPO maintains a close partnership 

with the American printing and publishing industry. Thousands of small, 

medium, and large businesses, as well 

as small disadvantaged businesses, located in every state in the country, support the Agency in accomplishing its 

mission. GPO maintains a nationwide 

database of commercial businesses that 

compete to produce, and often distribute, most of the information products 

required for the Federal Government. 

GPO ensures that Federal customers 

get quality information products in a 

timely manner at the best value from 

the private sector.

Programs and Operations

The Government-wide programs and 

operations managed by GPO are based 

on various public laws codified in Title 

44, Public Printing and Documents, 

of the United States Code (U.S.C.). 

GPO’s statutory responsibilities include 

fulfilling the printing needs of the 

Federal Government and distributing 

Government information products to 

the public. 

Funding of Programs and Operations

The Agency’s programs and operations are funded through a businesstype revolving fund, authorized by 44 

U.S.C. § 309, and annual and other 

appropriations provided by Congress. 

The GPO Revolving Fund was designed 

to be self-sustaining. Accordingly, the 

Revolving Fund pays for the cost of 

the Agency’s programs and operations 

and is reimbursed at rates and prices 

that are intended to recover the full 

cost of goods and services delivered to 

customers. 

The major sources of funds for 

the GPO Revolving Fund include: (1) 

payments from Federal customers for 

printing and binding, blank paper 

and paper products, and information 

products and services; (2) sales of 

Government publications and information products to the general public, 

bookstores, book dealers, and businesses; and (3) fund transfers from the 

Congressional Printing and Binding 

Appropriation (CP&B) and the Superintendent of Documents’ Salaries and 

Expenses (S&E) Appropriation. These 

two annual appropriations are used to 

reimburse the GPO Revolving Fund for 

costs incurred while performing congressional work and fulfilling statutory 

requirements to disseminate Federal 

Government information to the public, 

respectively. Reimbursements to the 

Revolving Fund from these two appropriations are recorded as revenue when 

expended. Generally, any unexpended 

annual appropriations are returned to 

the U.S. Department of the Treasury 

after five years have passed. 

Congress has occasionally made 

no-year appropriations available to 

the Agency for special purposes. Funds 

have been appropriated for building 

improvements, security improvements, 

and voluntary separation incentive 

payments. In fiscal year 2005, Congress 

made approximately $22 million of 

previously appropriated funds available 

to the GPO Revolving Fund to provide 

future funding for the GPO’s Digital 

Content Management System.

UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 3

The consolidated financial statements of the U.S. Government Printing Office 

(GPO or Agency) are prepared on the accrual basis of accounting in conformity 

with accounting principles generally accepted in the United States of America 

(GAAP). Under the accrual method, revenues are recognized when earned, 

and expenses are recognized when a liability is incurred, without regard to the 

receipt or the payment of cash. GAAP also requires that accounting principles 

used be applied in a consistent manner with that of the previous year.

The consolidated financial statements report the financial position and the 

results of operations of the Agency pursuant to the requirements of 31 U.S.C. 

§ 3515(b). The consolidated financial statements have been audited by an 

independent external auditor selected by the Public Printer in accordance with 

44 U.S.C. § 309(e). 

The consolidated financial statements are prepared from the GPO’s financial management system. Transactions are recorded on the accrual basis and 

are within budgetary limitations established to facilitate compliance with legal 

constraints and controls over the use of Federal funds. GPO’s annual financial 

statements and accompanying notes provide information on the Agency’s financial position, results of operations, changes in net position, and cash flows, 

and disclose all significant events and economic affairs controlled by GPO, in 

conformity with applicable laws, regulations, standards, and policies relevant 

to financial reporting.

GPO is committed to maintaining strong financial systems and internal 

controls to ensure accountability, integrity, and reliability. GPO’s internal controls are designed to provide reasonable assurance that obligations and costs 

are in compliance with applicable laws and regulations; funds, property, and 

other assets are safeguarded against loss from unauthorized acquisition, use, or 

disposition; and transactions are properly recorded and accounted for to enable the GPO to prepare reliable financial reports and maintain accountability 

over assets.

GPO Instruction 825.18A Internal Control Program established the internal 

control standards and assessment methodology employed by GPO to ensure 

adequate and effective systems of management control, and compliance with 

applicable laws and regulations. Management regularly conducts vulnerability 

assessments and internal control reviews of GPO’s programs, operations, and 

other activities. 

The Office of the Inspector General (OIG) monitors the Internal Control 

Program at GPO and keeps the Public Printer informed of the progress by 

management. Furthermore, the OIG and the U.S. Government Accountability 

Office (GAO) conduct audits of the GPO’s programs and operations, and as 

such, evaluate management controls. The Internal Control Program, along with 

recommendations from these audits, have strengthened management controls 

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

operations, and other activities.

SECTION I

Management’s 

Discussion 

and Analysis

(Unaudited)

As of September 30, 2005

2 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004
4 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 5

in the future, the introduction of digital 

technology has changed the ways its 

products and services will be created 

and how they will look and function 

to meet the ever-changing needs of the 

Federal Government and public users of 

Federal Government information. 

In 2003, the Public Printer initiated 

a major reorganization of GPO to improve customer service, program management, and operational performance. 

The Agency-wide reorganization 

established several key management 

positions, including the Managing 

Director of Customer Services, the 

Managing Director of Plant Operations, 

the Managing Director of Information 

Dissemination, the Chief Information 

Officer (CIO), the Chief Financial Officer (CFO), the Chief Human Capital 

Officer, and the Chief of Staff. In 2004, 

the Director of New Business Development and the two Co-Directors of 

Innovation and New Technology were 

added to further improve the GPO 

Management Team.

On December 1, 2004, GPO issued 

A Strategic Vision for the 21st Century. 

GPO has begun to reconfigure its organizational structure around six business lines to better address the many 

challenges and opportunities posed by 

the 21st century publishing environment. The new organizational structure 

will assist GPO’s transformation into 

a more efficient and customer-driven 

agency; implement a more integrated 

approach to printing, publishing, and 

information dissemination requirements; employ more advanced business systems; and improve management control and decision making. 

In 2005, GPO initiated actions to 

implement the following six business 

units. Two of the six business units, 

Digital Media Services and Customer 

Services, were established organizations 

at the end of fiscal year 2005. The other 

four business units will be operational 

within two years.

Security and Intelligent Documents – 

This line of business will work with 

Federal agencies to assist in the safe 

and secure design, production and 

distribution of security and intelligent documents, many of which will 

incorporate electronic and other fraud 

and counterfeit protection features. 

GPO is working closely with Congress 

and other Federal agencies to develop 

and implement smart documents such 

as passports, travel documents, and 

immigration forms that will incorporate electronic security for fraud and 

counterfeit protocols.

Digital Media Services – This new business unit was established in 2005 and 

provides Web site development and 

maintenance services to Federal customers. These experts will eventually 

provide services to Federal agencies and 

the FDLP, to allow them to both add 

content to GPO’s planned Digital Content System, and to withdraw or receive 

content to produce specific products 

and services. The unit will develop the 

capability to efficiently convert printed 

legacy documents into searchable digital content that meets FDLP standards. 

This group will lead in the development of new GPO electronic products 

and services to better meet our customers’ information needs, including Web 

site design and hosting, and rich media 

capabilities. This business team will 

also house GPO’s creative capabilities 

for customers.

Customer Services – This is an existing 

GPO business unit that was previously 

focused primarily on printing procurement functions and operated in a 

decentralized fashion with roughly half 

the purchasing requirements handled 

by its Washington headquarters and 

the other half in offices throughout 

the country. As the number of Federal 

Government printing jobs continues to 

decline and the quantities are reduced 

for existing jobs, the current structure 

is no longer financially viable and 

is not needed with today’s business 

communication capabilities. This unit 

will be transformed into a consultative 

selling organization with an emphasis on educating Federal Government 

customers in regard to the best ways 

of using information technology to 

meet their program objectives. The 

unit will continue to purchase most 

required services, including printing, 

in the private sector. This unit will be 

organized around its customers, with 

a team of GPO employees assigned to 

each principal agency customer. Each 

team will have a manager who will be 

an authority on the mission of their customer agency and will be supported by 

a national account manager who will be 

responsible for developing new business 

with that agency.

Library Services and Content Management – This unit will continue to 

manage the FDLP under the direction 

of Congress to ensure equitable, secure, 

convenient, and permanent public 

access to Federal Government information in tangible and digital forms. This 

unit will oversee the development of 

processes and standards to ensure the 

timely inclusion of all past, present and 

future Federal Government publications, whether born digital or created 

through digitization of print material, 

into the GPO Digital Publication Content System to create a complete FDLP 

digital information collection that 

can be authenticated and preserved 

for future generations. The unit will 

support the Federal Depository Library 

community in its efforts to create a 

reasonable number of comprehensive 

collections of tangible Federal Government publications in view of changing 

library resources and technology. GPO 

will also develop two complete collections, as last resorts, that will store 

both tangible and digital versions of all 

publications.

Publication and Information Sales Program – Because of dwindling demand 

for printed products, GPO will discontinue ordering printed copies of agency 

publications for warehousing and 

subsequent sale. Instead, this unit will 

develop a capability to fulfill customer 

orders through other booksellers. GPO 

will continue to provide subscription services for Federal Government 

periodical publications that can be 

fulfilled directly from the printer or its 

mail house, and that are economically 

viable. A contract vendor employing 

on-demand printing technology will 

provide back copies. While the FDLP 

will continue to offer free public access 

Section I: Management’s Discussion and Analysis

Major Programs and Operations

The GPO Revolving Fund and appropriations from Congress are used to 

finance the programs and operations of 

the Agency. An overview of GPO’s major programs and operations follows.

Plant Operations – The GPO Plant 

provides Congress with all legislative 

printing services, including overnight 

production of the Congressional Record, 

bills, reports, hearings, and other congressional documents. The legislative 

workload demand that will be placed 

on Plant Operations in future years is 

uncertain, subject to many variables, 

and cannot be accurately forecast with 

a high degree of certainty for budgeting purposes. Accordingly, in those 

years where the congressional printing 

and binding requirements exceed the 

funding provided by Congress, GPO 

uses its authority to temporarily fund 

the shortfall through the Revolving 

Fund. Congressional funding has been 

adequate in most years. 

 At September 30, 2005, no funding shortfalls are projected, as appropriations made available for funding 

legislative services during fiscal year 

2005 are considered adequate. GPO’s 

Plant Operations also provide essential Executive Branch printing services, 

including the daily Federal Register, the 

Code of Federal Regulations, and U.S. 

Passports and postal cards. The customers reimburse the GPO Revolving Fund 

for these services through a system of 

rates and prices that recover costs.

Digital Media Services – This business 

unit provides digital media services 

(e.g., Web site design, development, 

and maintenance) to Federal agencies. 

In the future, this unit will provide expanded services to Federal agencies and 

the Federal Depository Library Program 

(FDLP), by allowing them to both add 

content to GPO’s planned Digital Content System, and withdraw or receive 

content to produce specific products 

and services. Digital Media Services will 

also provide a platform for training 

GPO employees in 21st Century workforce skills while providing retrospective document scanning services for the 

FDLP and Federal agencies.

Customer Services – GPO’s Procurement Program is an economical and efficient source for satisfying the publishing needs of the Federal Government. 

The majority of the Federal Government’s printing needs are effectively 

satisfied through this partnership with 

industry that takes advantage of the 

vast resources, expertise, and specialization within the private sector. The 

Program competitively acquires products and services from the private sector 

through various types of procurement 

vehicles tailored to the specific needs 

of customers. Thousands of pre-qualified businesses, small to large in size, 

openly compete for Government printing jobs. GPO procurement and technical experts are available to oversee each 

job to ensure that the contractor meets 

the customer’s quality and schedule 

requirements. GPO’s performance 

measures for on-time delivery and 

quality acceptance demonstrate the effectiveness of this partnership between 

industry and government.

Sales of Publications Program – The 

operations of the Sales of Publications 

Program are being reengineered to 

improve customer service and lower 

operating costs. Some major actions 

have been completed and others are 

underway to introduce new technologies, adopt the industry’s leading 

practices, right-size operations, reduce 

costs, and increase revenues. Although 

intended to be self-funding, this program has not recovered all of its operating expenses since fiscal year 1997. A 

downward trend in customer demand 

for printed publications has significantly reduced program revenues. The Sales 

of Publications Program earned $22.6 

million in revenues during fiscal year 

2005. Revenues declined by $1.4 million, or 6.1 percent, when compared 

to last year’s revenues of $24.0 million. 

This downward trend in sales began 

in fiscal year 1995 when program revenues totaled about $80 million.

The Superintendent of Documents 

completed several major actions to 

reduce the costs of the Sales of Publications Program in the last two years. Office and warehouse space requirements 

were significantly reduced in fiscal 

year 2004. Office space requirements 

at Central Office were reduced as a 

result of a smaller workforce. Inventory reduction and space consolidation 

efforts allowed GPO to vacate one of 

the two leased warehouse buildings in 

Laurel, Maryland. The quantity of each 

new publication purchased for the sales 

inventory was reduced to minimize 

inventory disposal costs. Customers 

are being encouraged to use the economical and efficient U. S. Government 

Online Bookstore to buy publications. 

The Superintendent of Documents is 

also improving operations and service 

by adopting industry-leading practices, 

such as an On Demand, Just-In-Time 

Inventory for Government publications. Partnering and expanding business relationships with the private 

sector are also being explored.

Federal Depository Library Program – 

The S&E Appropriation funds the 

operations of the FDLP, the Cataloging and Indexing Program, the By-Law 

Distribution Program, and the distribution component of the International 

Exchange Program of the Library of 

Congress. The FDLP consists of over 

1,250 depository libraries across the 

nation, and includes GPO Access, a 

GPO Internet site with a wealth of 

digital Government information. Long 

recognized as the National authority 

for cataloging Government publications, the FDLP is also recognized as a 

center of excellence in other aspects of 

managing an electronic collection for 

permanent public access. GPO is making major investments in improving 

the FDLP, as discussed later. 

Reorganization of Operations 

Along Business Lines

GPO is reorganizing its business operations to deliver Federal information 

products and services from a flexible 

digital platform in the future. Historically, the Agency has been organized 

to carry out its mission in a traditional 

printing craft setting with its emphasis 

on extensive capital investments in 

heavy metal equipment operated in a 

large factory environment. While GPO’s 

mission will remain essentially the same 

Section I: Management’s Discussion and Analysis
6 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 7

Security Improvements – GPO has been 

making steady progress to strengthen 

security at the Agency, and better plan 

for disaster recovery. Many of these 

security improvements were funded by 

a Congressional appropriation of $4 

million for Emergency Response Funds 

(ERF) in 2002.

Goal Sharing Program – Effective 

October 1, 2004, the Public Printer 

established the GPO Goal Sharing 

Program. This incentive award program 

was designed to benefit the Agency and 

all eligible employees. Any realized cost 

savings resulting from employees’ efforts 

to reduce GPO’s costs in certain defined 

areas will be shared equally between 

the Agency and the workforce (50/50 

split). Employees are eligible to receive 

an equal share of the 50 percent portion 

of the realized cost savings allocated to 

the workforce. The three initial cost saving areas are (1) Employee Safety (i.e., 

workers’ compensation), (2) Utilities 

(i.e., electric and steam), and (3) Paper 

Waste (i.e., production spoilage). The 

first year of this incentive award program was fiscal year 2005. At September 

30, 2005, GPO accrued liabilities of 

$445,000 for estimated employee award 

payments. The awards are scheduled to 

be paid in fiscal year 2006.

Human Resource Requirements 

for Agency Operations

Human resources are essential to the 

success of GPO’s mission. The experienced and talented workforce supports 

every essential program and operation 

of the Agency. The GPO workforce 

totaled 8,500 employees in fiscal year 

1976 and 2,372 employees at the end 

of fiscal year 2005. The reduction in 

the workforce is in large part due to a 

decline in the demand for traditional 

printing. Printing on paper has steadily 

declined over the years as advances in 

digital technology and services continue to expand the accessibility, form, 

and wealth of information available to 

the public by other methods of communication.

The decline in customer demand 

for traditional printing has reduced the 

Section I: Management’s Discussion and Analysis

workload for all major programs and 

operations at GPO. As less printing is 

produced and procured for the Federal 

Government, fewer printed publications are available for distribution 

and sale. As a result of this workload 

decline and changing technology, the 

GPO workforce is being retrained and 

right-sized.

Workforce Restructuring to Reduce the 

Cost of Operations

In April 2003, the Public Printer established a Retirement Separation Incentive Program (RSIP) under authority 

of Public Law 105-275, as amended, 

to help restructure the GPO workforce 

over fiscal years 2003 and 2004. This 

rightsizing of the workforce was necessary to help stem the trend in operating 

losses that have occurred over the past 

several years as the demand for traditional printing declined.

The RSIP permitted incentive payments of up to $25,000 per employee 

for voluntary separation from the 

Agency. This RSIP reduced the workforce by 542 employees, or about 18 

percent. The RSIP reduced estimated 

personnel costs and benefits by about 

$38 million per year. GPO accrued 

estimated costs of about $18 million 

for the RSIP during fiscal years 2003 

and 2004. A total of $13.4 million 

in incentive payments were paid to 

former employees. The balance of $4.6 

million due the Office of Personnel 

Management was unpaid at the end of 

fiscal year 2005. The U.S. Congress appropriated $10 million (before rescission of $59,000) to the GPO Revolving 

Fund in fiscal year 2004 to help finance 

this workforce restructuring. 

The RSIP was a major cost reduction initiative that helped GPO to 

realize a modest net income in both 

fiscal years 2004 and 2005. GPO plans 

to further reduce the workforce by 

approximately 200 employees through 

a Voluntary Separation Incentive Program (VSIP) in fiscal year 2006 under 

authority of Public Law 108-447, dated 

December 8, 2004.

Financial Results 

for Fiscal Year 2005

The Agency’s operating revenues 

totaled $702.7 million for fiscal year 

2005 and $691.8 million for fiscal year 

2004. This represents an increase in 

revenues of $10.9 million or 1.6 percent. The Agency’s operating expenses, 

before other operating expenses, 

totaled $696.5 million for fiscal year 

2005 and $690.4 million for fiscal year 

2004. This represents an increase in 

expenses of $6.1 million or 0.9 percent. 

The GPO Revolving Fund realized a net 

gain of $6.1 million for fiscal year 2005 

before other operating expenses. In 

comparison, the GPO Revolving Fund 

realized a net gain of $1.3 million for 

fiscal year 2004 before other operating 

expenses.

Other operating expenses consisted 

of the annual change in the accounting 

estimate for the U.S. Department of 

Labor (DOL) actuarial estimate of the 

liability for GPO’s long-term Federal 

Employees’ Compensation Act (FECA) 

benefits (i.e., workers’ compensation). 

The liability decreased by $3.5 million 

in fiscal year 2005 and $9.9 million 

in fiscal year 2004 due, in part, to the 

workforce reductions. After considering 

these reductions, GPO realized a consolidated net income of $9.6 million 

for fiscal year 2005 and $11.3 million 

for fiscal year 2004.

In-House Printing includes Plant 

Operations, Digital Media Services, and 

the former Denver Regional Printing 

Plant that was closed on May 1, 2004. 

Revenues from In-House Printing 

totaled $182.2 million for fiscal year 

2005 and $187.7 million for fiscal year 

2004. This represents a decrease in 

revenues of $5.5 million or 2.9 percent. 

Revenues from In-House Printing vary 

and are dependent on the demand 

for services from Congress and other 

Federal customers. Operating expenses 

totaled $158.6 million for fiscal year 

2005 and $179.4 million for fiscal 

year 2004. This represents a decrease 

in expenses of $20.8 million or 11.6 

percent. The reduction in the plant 

workforce, through the RSIP, contribto all Government information available through the Internet, GPO will 

focus on developing unique collections 

of digital information, which will be 

“pushed” over the Internet to primarily 

business customers on a subscription 

basis. GPO is interested in forming 

alliances with Federal agencies and 

private sector information vendors as 

appropriate.

Official Journals of Government – The 

need for traditional print products such 

as the Official Journals of Government 

(such as the Congressional Record and 

many legislative products, and the 

Federal Register and related products), 

will remain until such time as practicable alternatives are developed and accepted by our customers. This business 

line will continue to meet congressional and agency needs for these types of 

traditional products while at the same 

time ensuring the proper coordination 

of their digital versions with other GPO 

business operations and meeting GPO’s 

electronic information dissemination 

mandate.

Management Initiatives to 

Improve Agency Operations

Several major management initiatives 

are also underway to improve the economy, efficiency, and effectiveness of the 

Agency’s programs and operations and 

improve the quality and timeliness of 

service to our customers. A synopsis 

of these major management initiatives 

follows. 

New Building Project – The GPO 

Headquarters is located in an aging, 

oversized facility that is expensive to 

maintain. Plans are under consideration to relocate to modern, efficient 

facilities scaled and equipped to meet 

GPO’s needs in the 21st century. Rather 

than burden the taxpayers with this 

project, GPO has been investigating 

opportunities to finance it through the 

redevelopment of the current facility. 

In September 2004, following approval 

from the Joint Committee on Printing, 

GPO selected The Staubach Company, 

an expert real estate advisory firm, to 

help guide the Agency in this process. 

GPO is seeking legislative authority 

Section I: Management’s Discussion and Analysis

from Congress for this proposed building development project.

Integrated Library System – The transition to a predominantly electronic 

FDLP began in 1996 at the direction 

of Congress. In fiscal year 2002, GPO 

received approval from Congress to 

acquire a commercial off-the-shelf Integrated Library System (ILS). In 2004, 

GPO awarded a contract for implementation of ILS. This IT project is being 

accomplished with assistance from 

GovWorks, a Federal acquisition center. 

The ILS Project is almost complete and 

the system is scheduled to be operational in fiscal year 2006. Once operational, 

the ILS public cataloging interface will 

offer enhanced information identification and location capabilities to all 

users. Depository library staff will, for 

the first time, have direct access to the 

processing and product status information, satisfying the majority of FDLP 

customer inquiries. 

Major Investment in GPO Access – The 

Superintendent of Documents is also 

improving the FDLP. About $2.5 million in funds from the S&E Appropriation for 2004 are being used to enhance 

GPO Access and other information dissemination areas within the authority 

of the Superintendent of Documents. 

Planned enhancements to GPO Access

include increased storage capacity, 

stronger security, and improved performance to the millions of users in the 

nation. This major IT project is being 

accomplished with assistance from 

GovWorks, a Federal acquisition center 

administered by the U.S. Department of 

the Interior. 

GPO Enterprise Program – GPO 

launched the GPO Enterprise Program 

in 2004. This major IT project will 

modernize GPO application systems 

throughout the Agency that support 

GPO business, administrative, and 

financial operations. The scope of the 

project includes the replacement of 

legacy systems as well as the installation of new applications that will 

benefit the Agency. The existing Oracle 

financial applications are being used 

as a foundation for establishing an integrated agency-wide information system. In 2004, Oracle software licenses 

were purchased and existing Oracle 

financial applications were relocated 

to a secure host computer facility. In 

2005, the Oracle Purchasing, Inventory, and Accounts Payable modules 

were placed in service to support IT 

equipment acquisitions and issuances 

at GPO. Additionally, GPO started the: 

Human Resources, Standard Form 52 

Project; the Procure to Pay Project; 

and the Accounts Receivable Project. 

GPO also used GovWorks to acquire IT 

consulting services that assisted in the 

development of a detailed phased-approach implementation plan for Oracle 

applications.

Digital Content Management System – 

GPO began planning the development 

of the Digital Content Management 

System in 2004. The Digital Content 

Management System will allow GPO 

to obtain, preserve, and provide access 

to information produced by all three 

branches of Federal Government, 

and the material currently held in the 

custody of the GPO and the Federal 

Depository Libraries. The Digital Content Management System will enable 

the GPO’s customers to electronically 

access the content they want and allow 

us to deliver it in the formats they 

desire. GPO committed $20 million in 

appropriated funds for this project in 

2005.

Sharing of Excess Building Space – In 

fiscal year 2004, GPO started to provide 

excess building space to other Legislative Branch entities through interagency 

agreements for reimbursable services. 

GPO was providing excess space to 

the U.S. Capitol Police and Architect 

of the Capitol at the end of fiscal year 

2005. Additional excess space will be 

provided to the Sergeant at Arms for 

the U.S. Senate in fiscal year 2006. This 

management initiative helps reduce 

the cost to GPO of operating this aging 

over-sized facility, plus makes geographically desirable space available to 

other entities that serve Congress in the 

Legislative Branch.
8 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 9

timeliness of the delivery of this core 

product to Congress. To gauge GPO’s 

success in delivering the Congressional 

Record to Congress on-time, GPO established a deadline of 9 a.m. the following day when copy is received in GPO 

by midnight, regardless of whether the 

Senate or the House of Representatives 

is in session. The on-time delivery rate 

was 78 percent for fiscal year 2005 and 

86 percent for fiscal year 2004. 

On-Time Delivery of Procured Printing

Customer Services contracted with 

commercial printers to ship 124,300 

jobs in fiscal year 2005 compared with 

127,900 jobs in fiscal year 2004. For 

fiscal year 2005, GPO’s goal was to 

have at least 95 percent of procured 

printing orders delivered on schedule 

and a quality acceptance rate of at least 

99 percent. Both goals were met for fiscal year 2005. Our goal will remain the 

same for fiscal year 2006.

Financial Performance Measures

Cash Management

Payment Performance — In fiscal year 

2005, GPO continued to save millions of dollars from taking favorable 

prompt payment discounts offered 

by contractors for the payment of invoices within the discount period. GPO 

earned prompt payment discounts of 

$6.8 million on purchased printing 

expense of $430 million. Last year GPO 

earned $6.5 million in discounts on 

$413 million in printing expenses. This 

represents an average discount rate of 

1.6 percent for fiscal year 2005 and fiscal year 2004. The 1.6 percent discount 

rate earned exceeded the goal of 1.4 

percent. Our goal for fiscal year 2006 

will remain the same.

Lost prompt payment discounts increased to $488,000 in fiscal year 2005 

from $217,000 in fiscal year 2004. The 

percentages of discounts lost to discounts offered were 6.7 percent and 3.2 

percent in fiscal years 2005 and 2004, 

respectively. GPO did not meet the goal 

set for fiscal year 2005, which was a 

maximum of 2.5 percent. The increase 

in lost discounts was generally due to 

inadequate documentation and other 

information needed to certify contractor invoices for payment. Our goal for 

fiscal year 2006 will remain the same.

Electronic Payments — Electronic funds 

transfer (EFT) is the most economical and efficient method of paying 

the Agency’s financial obligations to 

contractors, employees, and other nonFederal entities. EFT payments reduce 

the need for more expensive paper 

check payments that take days to arrive 

through the mail. In fiscal year 2005, 

about 81 percent of all GPO payments, 

were made by EFT. In comparison, 

about 88 percent of all payments were 

made by EFT in fiscal year 2004. Our 

goal for fiscal year 2005 was 90 percent 

of total payments. This goal was not 

met primarily due to GPO outsourcing 

its predominantly EFT-based payroll 

system to the National Finance Center. 

Our percentage goal for EFT payments 

will be reassessed for fiscal year 2006.

Debt Management

Federal Receivables — In fiscal year 

2005, GPO billed Federal agencies 

$695 million for printing and binding 

services. Of this amount, $495 million, 

or 71.2 percent, was collected using the 

Department of Treasury’s Intra-governmental Payment and Collection (IPAC) 

system; $52.0 million, or 7.5 percent, 

was from funds residing in Printing 

and Binding Deposit Accounts maintained by the GPO; and $12.4 million, or 1.8 percent, was collected via 

credit card. These methods enable the 

collection of funds within 30 days or 

less, as opposed to the more traditional 

methods of collection which require 

the creation and exchange of paper 

documents. 

GPO’s billed accounts receivable 

from Government customers totaled 

approximately $7.3 million at the end 

of fiscal year 2005, compared with 

$20.4 million at the end of fiscal year 

2004. Improvements in customer billing and collection contributed to the 

reduction in accounts receivable. The 

U.S. Department of Defense (DoD) 

is GPO’s largest customer and debtor. 

DoD owed GPO about $2.2 million 

at September 30, 2005, of which $1.8 

million, or 81.8 percent, was past due 

in payment (i.e., over 30 days old). 

DoD owed $431,000 for invoices 

between 31 to 60 days old, $181,000 

between 61 to 90 days old, and $1.2 

million over 90 days old. DoD’s indebtedness to GPO of $1.2 million, over 

90 days old, represents 16.7 percent of 

GPO’s total accounts receivables, over 

90 days old, at year-end. 

GPO offers customer agencies the 

alternative of establishing Printing 

and Binding Deposit Accounts for the 

prepayment of any and all printing 

and publishing services acquired from 

GPO. Deposit Accounts greatly simplify 

customer agency accounting and have 

the added benefit of providing detailed 

customer account information, via a 

secure Web site. Customers are able to 

either download or print their transactions. Separate deposit accounts may 

be established for different organizations, funds, or cost centers within 

the customer agency. At the end of the 

year, GPO maintained 588 printing 

and binding deposit accounts valued 

at $46.0 million. Additionally, GPO 

held $4.0 million in customer deposit 

accounts for the Sales of Publications 

Program. Therefore, customer deposit 

accounts totaled $50.0 million as of 

September 30, 2005. 

 Customer agencies also have the 

option of paying for their printing and 

binding needs by credit card. Credit 

card transactions in fiscal year 2005 

totaled $12.4 million for 15,096 printing jobs. In comparison, GPO collected 

$9.6 million for 12,814 printing jobs in 

fiscal year 2004. The average price per 

job paid via credit card for the past 2 

years was $788, indicating that customers find it a convenient method to pay 

for small printing jobs.

Section I: Management’s Discussion and Analysis

uted to this decrease in expenses. The 

net income for these operations, before 

other operating expenses, was $23.5 

million for fiscal year 2005 and $8.3 

million for fiscal year 2004.

Purchased Printing includes all 

publishing services acquired from the 

private sector by Customer Services for 

Federal customers. Revenues from Purchased Printing totaled $473.4 million 

for fiscal year 2005 and $449.1 million 

for fiscal year 2004. This represents an 

increase in revenues of $24.3 million 

or 5.4 percent. Revenues from Purchased Printing vary and are dependent 

on the demand for services from the 

Federal agencies and other customers. 

Operating expenses totaled $486.6 

million for fiscal year 2005 and $450.1 

million for fiscal year 2004. This represents an increase in expenses of $36.5 

million or 8.1 percent. An increase in 

the cost of services procured from contractors contributed to this increase in 

expenses. The net loss for this program, 

before other operating expenses, was 

$13.2 million for fiscal year 2005 and 

$1.1 million for fiscal year 2004.

The Sales of Publications Program 

includes all publications, subscriptions, 

and other information products sold 

to the public by the Superintendent of 

Documents. The demand for printed 

products continues to decline due to 

expansion in the availability of free 

information from the Federal Government on the Internet. Revenues from 

the Sales of Publications Program totaled $22.6 million for fiscal year 2005 

and $24.0 million for fiscal year 2004. 

This represents a decrease in revenues 

of $1.4 million or 5.8 percent. Operating expenses totaled $26.4 million 

for fiscal year 2005 and $33.2 million 

for fiscal year 2004. This represents a 

decrease in expenses of $6.8 million or 

20.5 percent. The net loss for this program, before other operating expenses, 

was $3.9 million for fiscal year 2005 

and $9.2 million for fiscal year 2004.

In fiscal year 2001, the GPO Revolving Fund received $6 million in 

supplemental funding, under Public 

Law 107-20, to replace the antiquated 

air conditioning system and install new 

energy-efficient lighting fixtures. These 

funds were fully obligated at the end 

of fiscal year 2003. About $5 million 

was allocated for the air conditioning 

project, and about $1 million was allocated to the lighting fixtures project. 

GPO completed this building improvement project in fiscal year 2004. The 

entire $6 million appropriation was 

expended as of September 30, 2004.

In fiscal year 2002, the GPO Revolving Fund received an appropriation of 

$4 million for Emergency Response 

Funds (ERF) under Public Law 107-

117. GPO has been using the ERF to 

enhance physical security and information technology security, ensure 

continuity of essential services, and 

acquire security equipment. The entire 

$4 million appropriation was committed for specific purposes, and $58,000 

remained unexpended as of September 

30, 2005.

In fiscal year 2004, the GPO Revolving Fund received a $10 million appropriation from Congress for workforce 

restructuring. A subsequent budget 

rescission of $59,000 (0.59 percent) 

reduced the appropriated amount to 

$9,941,000. These funds were used to 

partially finance the $18 million estimated cost of the RSIP accrued during 

fiscal years 2003 and 2004 (see Note 

16). All of the appropriated funds were 

expended as of September 30, 2004.

During fiscal year 2005 and 2004, 

GPO Revolving Fund recorded Appropriation Revenues of $2.2 million 

and $15.2 million, respectively (see 

Note 12.B). This revenue recognition 

represents amounts expended by GPO 

during the year for the purposes authorized by Congress.

Performance Measures

GPO gauges its overall efficiency and 

effectiveness using certain performance 

measures. Generally, these performance 

measures are based on established 

standards (i.e., goals and objectives) 

that are compared against actual performance (i.e., results) for each fiscal 

year. The following sections discuss the 

major operating performance measures 

and financial performance measures 

used by the Agency.

Operating Performances Measures

Overtime Management

Overtime is a human resource management tool used to meet peak and 

urgent customer workload demands 

primarily in production and procurement operations. GPO manages and 

controls overtime worked to minimize 

labor costs. In fiscal year 2005, GPO 

employees worked 155,000 hours of 

overtime, which is 18.8 percent less 

than the 191,000 hours worked in fiscal year 2004. GPO incurred overtime 

costs of $6.2 million in fiscal year 2005 

and $7.4 million in fiscal year 2004. 

Comparatively, the cost of overtime 

decreased by $1.2 million. Additionally, GPO achieved its management 

overtime objective for fiscal year 2005. 

Actual overtime hours worked of 

155,000 hours was 40,000 hours below 

the ceiling of 195,000 overtime hours 

set for fiscal year 2005. The upper limit 

for overtime will be lowered to 180,000 

hours for fiscal year 2006.

Production Chargeable Hours

Chargeable hours decreased to 447,000 

in fiscal year 2005 from 533,000 in 

fiscal year 2004, a decrease of 86,000 

hours, or 16.1 percent. The results for 

2005 met GPO’s goal of achieving sufficient chargeable hours necessary to 

break even. GPO’s fiscal year 2006 goal 

is to have enough chargeable hours to 

achieve break even in Production Operations. Due to the mix in hourly rates 

charged for the various production 

processes, a specific chargeable hour 

target cannot be established.

Congressional Record Delivery

The Congressional Record is the official 

record of the proceedings and debates 

of the Congress. This important Federal 

information product is published daily 

when Congress is in session. GPO uses 

a performance measure to evaluate the 

Section I: Management’s Discussion and Analysis
10 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 11

authority of Public Law 108-447, dated 

December 8, 2004. An eligible employ-

ee may receive an incentive separation 

payment of up to $25,000.

Second, GPO initiated a major 

reorganization in 2003 to stream-

line management and to bring the 

Agency into line with current business 

practices. In 2004, the agency-wide 

reorganization established six planned 

business lines to improve customer ser-

vice. These business lines are currently 

being implemented by the Agency, and 

further progress is expected in fiscal 

year 2006.

 Third, the Public Printer estab-

lished an independent Management 

Advisory Committee in 2005. A Charter 

describes the responsibilities of the 

three-person Committee. To ensure 

independence, no member may be em

-

ployed by GPO or have any financial 

relationships to the Agency. The experts 

on the Management Advisory Commit

-

tee will also serve as an audit advisory 

committee, which traditionally oversees 

the process for the annual audit of the 

consolidated financial statements. The 

audit committee is generally respon-

sible for ensuring that the entity has a 

high-quality financial reporting process 

that provides transparent, consistent 

and comparable financial statements. 

In this regard, the committee should be 

working closely with management and 

both internal and external auditors to 

effectively monitor the financial report

-

ing process.

Fourth, GPO is taking other major 

steps to improve financial management 

and IT management, as recommended 

by GAO. The GPO Enterprise Program, 

an agency-wide IT modernization 

project, is a prime example of GPO 

adopting leading practices of worldclass organizations. GPO will have a 

fully integrated financial management 

system once this project is complete. 

Actions are being taken to implement 

additional system modules in fiscal 

year 2006.

Several other major cost saving 

initiatives are underway to reduce ex

-

penditures for: (1) employee overtime; 

(2) workers’ compensation; (3) energy; 

(4) paper; and (5) owned and leased 

space. Finally, GPO has been reducing 

operating costs by closing historically 

unprofitable operations that are no 

longer required, as discussed in Note 

17. The Public Printer created the GPO 

Goal Sharing Program in 2004, which 

took effect in fiscal year 2005. A major 

objective of the Goal Sharing Program 

is to reduce costs in targeted areas, as 

discussed in Note 18. 

Additionally, new and expanded 

services are also expected to increase 

revenues in the future for some pro

-

grams at GPO. GPO is in the process 

of reinventing itself to better serve its 

customers. The Agency will continue 

to transform its image as a producer 

of ink-on-paper products to a digital 

information services organization. This 

major transformation will require a sig-

nificant investment in new technology 

and technical skills for the future.

Finally, the Public Printer has been 

meeting with the Agency’s customers. 

This includes Members of Congress, 

congressional staff, Federal agency 

heads, the heads of Federal operations 

with congruent missions, such as the 

Archivist of the United States, Direc

-

tor of the Bureau of Engraving and 

Printing, and Director of the Mint, the 

library and information communities, 

the printing and publishing industry, 

and others to identify customer needs 

and business opportunities. This criti

-

cal input from customers and other 

interested parties will be used to estab-

lish the future direction of the Agency 

in the age of digital information and 

e-Government. 

Possible Future Effects of Existing 

Events and Conditions

The following major events and condi-

tions will impact the Agency’s pro-

grams, operations, and other activities 

in the future. A synopsis of each major 

event or condition follows. 

Transformation to a World-Class 

Organization 

The transformation to a world-class 

organization is well underway at GPO. 

As discussed earlier, GPO is imple

-

menting an agency-wide reorganization 

to establish six major business lines 

and restructure operations to improve 

customer service and the economy, 

efficiency and effectiveness of opera

-

tions. The Agency has also started to 

implement new digital information 

technologies to improve GPO busi

-

ness, administrative, and financial 

operations under the GPO Enterprise 

Project, the Integrated Library System 

(ILS) Project, and the Digital Content 

Management System Project. GPO has 

also adopted the best practices of other 

public and private sector organizations, 

most notably with respect to human 

capital management.

New Building 

Plans are under consideration to relo-

cate the Agency to modern, efficient 

facilities equipped to meet GPO’s 

needs in the 21st century. GPO has 

been investigating opportunities to fi

-

nance it through the redevelopment of 

the current facility. The Public Printer 

is seeking legislative authority from 

Congress for this proposed building 

development project.

Digital Content Management System 

The Digital Content Management 

System is the flagship project in GPO’s 

efforts to improve public access to 

Federal Government information. GPO 

was planning the development of the 

Digital Content Management System 

at the end of fiscal year 2005. The 

Digital Content Management System 

will allow GPO to obtain, preserve, and 

provide access to information pro-

duced by all three branches of Federal 

Government, and the material currently 

held in the custody of the GPO and 

the Federal Depository Libraries. The 

Digital Content Management System 

will enable the GPO’s customers to 

electronically access the content they 

want and allow us to deliver it in the 

formats they desire. GPO committed 

$20 million in funds for this project in 

2005. Additional funding is expected to 

be required in the future for comple-

tion of this important project. 

Convenience Printing Services 

Customer Services is partnering with 

the private sector to provide Conve

-

nience Printing Services to Federal cus

-

tomers through a nationwide network 

of local convenience printing outlets. 

Services under this new contract will be 

available beginning in fiscal year 2006. 

Through the operation of multiple na-

tionwide printing outlets, the contrac

-

tor will provide a wide range of services 

including digital printing, print-on-de-

mand, duplicating, binding, finishing, 

distribution, order fulfillment, basic 

design services, online ordering, digital 

content management system, and 

implementation of an exclusive pur

-

chase card for all transactions. The new 

program will provide Federal agencies 

with a cost-effective purchasing vehicle 

to fulfill their short-run printing and 

binding needs.

Fiscal Year 2006 Projections

Congress created the GPO Revolving 

Fund to finance the business-type op

-

erations of the Agency. The Revolving 

Fund was designed to financially selfsustaining. Accordingly, the Agency’s 

overall financial objective has been 

to “breakeven” by recovering all costs 

through a system of rates, prices, and 

other charges to customers for goods 

and services delivered. 

The Agency achieved this financial 

objective in fiscal years 2004 and 2005 

by realizing a modest net income for 

each year. This represents a positive 

turnaround in financial performance of 

the Agency when viewed in the longterm. Prior to fiscal year 2004, GPO 

had realized a net loss for five straight 

years. In fiscal year 2005, the Agency 

realized net income of $6.1 million 

from operations before recognizing 

a decrease of about $3.5 million in 

DOL’s estimate of workers’ compensa-

tion liability for GPO under FECA. 

Overall, the Agency realized net income 

of $9.6 million in fiscal year 2005 and 

$11.3 million in fiscal year 2004. GPO’s 

financial performance goal for fiscal 

year 2006 is to earn enough revenues 

to recover all costs.

The Public Printer has built a strong 

GPO Management Team with vast busi

-

ness and government experience, and a 

wealth of industry knowledge. Greater 

emphasis is now being placed on 

operating GPO in a business-like man-

ner. Managers are now being evaluated 

on their efforts to meet annual budget 

goals and financial performance objec

-

tives for the programs and operations 

that they are responsible for managing 

at GPO. 

The Agency’s fiscal year 2006 finan

-

cial performance is expected to benefit 

from management initiatives recently 

completed, in process, or planned. 

These initiatives should increase 

revenues and reduce costs. Many of 

these initiatives provide benefits of a 

recurring nature, and therefore, will im

-

prove the Agency’s long-term financial 

performance.

First, GPO reduced the workforce 

by 542 employees under the RSIP 

during fiscal years 2003 and 2004. The 

RSIP had one-time estimated costs of 

$18 million, and realized estimated 

payroll savings of $38 million per 

year, as discussed earlier in this section 

and in Note 16. GPO plans to further 

reduce the workforce by 200 employees 

through a Voluntary Separation Incen

-

tive Program in fiscal year 2006 under 

Section I: Management’s Discussion and Analysis
UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 13

SECTION II

Independent

Auditors’ Report

12 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004

The= Public Pri nta 

Uni 14!d Stn1 GQ~cmm n1 Pri1111dll om · 

\V~ hi.1\ ~ IU lheu lh.: lijmnyin~ l,;lll[I...Oiid;ncc.J bal.111..:~ \«CI, or Ul~r nilie!d Smtc, ... Co'l.'r:mtml11 

Printing OHiiee lGPO~ M or c-ptr:rnw 30.200.5 11~ lOt~. nd.llk' n: ~red consoiM.u•r:d ~~~tal\eiU~ ltlr rcvr:l'l~ illld ptllllt:!o. mtd cash fl~~ f1:11' lhc C~ tbcoll cD!Jc:d. 11n: llD~ti\ r: of t>ur i.11JdJ~ v. lu 

CAf:'l~ till opinlUll -n dr.c:: f~r pil'l: oCUUU.ion ur tltt:t.'e Wt'l~]d:Jlcd fin ndrLI ~llleflloCflb.. In OOIIJ~C;Eitm 

""J'h our illldil!l, \1,-c ~~~~ l;;lllldOidcRd PO• [nr~J r,xll'llrol•wc:r linnn ·iii& n:p011ing .wd r ~cd GPQ", 

OOrtllplia.III.."C Wllh CC'II1>1ln pi'U\ fsi.cm~ ur ppl inbli: luw~. n:~uhtti!Jm. lllltl C.:OniJ1K!I Ll1a.l CCIIJicl hn.!r'C a 

dJrc"t nd nut~md d t.'CI on tbl·se oon~olidnJC'd fin;~ndnJ ~ln cmt'nb. 

"UMMAHY 

As tn'lc:d i:n oor t'lpamon 011 thl!' conso1id:ltt-d fm:mcL:d 5.\:Jtcnw:nt_~o, w~:. ro11dudm 111tll1 GfilO"!i 

ron oHJ,.,Je"d rmnncl:al -.tmt~nt as. or nd li r the ye ,... mdM Soeptt:mbcr _ o. 200S ndl ~. nrr 

pn:~nlul ft~~irly, 1n u.ll rnn.1en I n."Spec1'>. in conft,mtily with a.ccmmtin~: prindpiN ~~nf'mlly m:'C'Cptal 

in 1.hr- Un1Li:d Stat.cs. of Amcrit'lll. 

Our considcrn.lion ol inJI!'r:nnl control O\'CT finmn inl repod in..:; rem J~d in ddicimdc.. .. in the dC' ipn 

wldiur uiJ('mlioo of GPO' informatioJJ tL'ChnoiO'..;y (IT) ge!lc.rnJ l"'nUOI.i lxlnc Mrnlift.ed & a 

tt"portnble oonili,Jon. Ucm~v~r. ll1l!. re(XIftllb'Jc condimiotJ i.J. 1101 be-l icvoo to be 11 1nn1cn I we-~. 

~ ~Us o£ DI!T testS cr oompU:mCle with t'Citnin prn .. ·lliions. of lnws.. re.guJ:~ ilans. :md OOII.'Irnd!i 

ills kl!ied no~~~~~~"'-~ or ooiH."'mplian~ urothotr maucrs.tltam ll.Tl! required to be repont'd ht'rein undrr 

Go~'c!l'wru m AmJ•1fJJ~ SloJNlal'dJ... i~ u«J by lbl! Comp~rorl crGeneml oF the Ur1iLed Stn.tc!'i.. 

The fo~I0\11 m.g ~ •Jon<w di !'W our or>lniorl ~"' CifO's. con. llc_t: 1et.1 nrt.,ll(i:ll 'Y{IfC"met~uo. our 

eco~l.lt!raUun' of GPO':. lr~tem:d ~:Cillml tM!r fi pnnci I n:~rtin •. our ~C'.\1!1. (}( Ci PO' comp-li ~!l« wid'l 

..:t!rr. i111 pm'>·is· ·~ nf ppllc!lblc: (.!!'"'"· c.gut tlon fld CQlU1"301 • l!lfldi ,m M 11\C!IU's a!ld lil\tr 

~ .. pullsihili£~ 

OPlNIO, 0 . rH 0 OUIDATED FEN 

We 1'1 \'i; :.urrli1rd tho :te'COfllp:mying oon I idt!J~ 'b. bn~ ~tll or tbe nited Sm~ GO\'t'mllll;n' 

Print,in om C' 350 Llf Sc:,ptembc;r 30. :!{105 nm'! .!00-1. lllnd he :rcl:tletl CQflli;Qiid:ttcd )lt:Utnl ~ or ~\ j!n• .es. :l.lld C¥pfi~ n.,J CHiih no'" for the )rc31'\ allen ~r:d. 

lo our tlplflian. rthe .:.11\: ('lidaJetl finn-'k:ial 14l•r:meflh, ~felifil:d l~ M\.e pl'e'l.etll F;•frl)'. in In m. lcrfn1 

resper:h. tbr: fil\fiiiiCial PQ"irion or O'PO I)S of epcetnber 3~ :2005 and ~. liiJld 1he ~ul cf. of~~ 

4~rnJiufb nd il! ~ ni,J\II. ror ~hco )' n. dlefi ~ndc~. Ill ~ f'lftlMli') 'R1ilh Qnllfi ln~ pFlndpl""' 

.gen~:nll~)' noc.'Cpted in Lb.: United St.ll~ of J.\mcrie~L 

Our aud.ib '1,1.·\.':JTC' (OJJdllt[td rar tb.c pcrposc uf rurmm(l an upmnm mt GPO. c:ttmOiidm~:ed Cimmd:nl 

MnLcm~ ls tn: ten n. wb~-.1e. Th.: infDITlllltinn ClfntJJJMd in lhc M1111111,gm~enL ~;. Dhcm.-.i n nnd An I)• !t 

SL~··IJI· and 'lJ1co Coo~ll ida1jng and Supplc:mc:nlllll S...1licdulc scrtion h !f1[C.!il:'ll[OO fflr pLifllO'\e!l ur 

:tddiciooal ~uwll~i and is n04 ill n:quiR:d PQI1. or dll:' t"OmClida1r.:d fiiL'IDCi:JI llllt'mcnt!.. Thb infDnnliLLcn 
14 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 15

. . .8!1 

hitS JK'II ~n l!Ubjl;cEcd to •l~ i1u..Ji•inp; Pf't~un:s pplied i.n 'be 11t.li1 of •Itt oon .. o'lkl~ted tihr!r:llil 

~tiUtr~flh illwl a~ec.·o rdla•gl). w~: expn:sJo nc1 t1pin1t u.n il 

• IAIL R PORTIJ 

Our c~~m~;kJc:m tl on of lllr«nBI Ct'll1•l1'1 rnu finnnc-ial Kpmtin~ M-,u1d 1101 nc:ce~-.nl'il)• d~-.cl ~ _ 11 

m:lliel'\ in lhc inte-rn. I CQiltml ovt:"r fin n i:t I l'ept"Mins lh. ~ mi!!11l bl! trtportable COfi5Litionr,;. Unt.l ~r 

'tulld.m.~ i "~•.:d h)' the Am.:ric a rn:-•ilUt¢ of Ccnif1 d rublic- ;\~c,1tlnlllll1~ repon ... ble: Qt.ll\dmrfnfi., ar-; 

!l'lilll~h cmuin~ r • ., oo tlel'ltil..;n 1111:1 1in:~;: to i!l:nifie~IDc dc-fi.: ~m i~ III rl~ ~iJH ,_., upe rion of 11\!C 

n~c-motl comrnl , ... ,.e, fin ndttl ICJ1flr1Jilg llull. in · .-r jlld~menl. c uld I)Cjj' ~~3)• afT~-. GPO"s l}bilil}' ru 

rec.;QIJ'tl. p- • ~Dlll!lizc. ruM! ~11 n.JI.ill~i;tl dut=~ J;(lfb.i .... ,r:fll v.·ltll Lbe ~fll i •ts h.~ l~Ll~U~cftlel'it 11'1 

rh~: fit'liltitt.:JI t.uJcmeors. 

M11h:n1 I w~.ak..rli:)li.!!C"- nn: rc(;!Qilr lc o,;orn.dirLons. m wlwdt rtliiC ~'WI ur upc:-mtioo ll,r •me or nKIR' ,,f the 

inre<m:d ronrrul oompuue<JJL d~ not n*dD~ 1.0 11. J"~:lu.ti"tcl)' II'JV.• lcvrl Lhe ri!ik Lhar mintAlll"n m~. in 

wtlll.1unb 1h11t would be m::~r~riu.l irr rd~tim1 tc1 die fimmeml smte-mcnl bcmg auJi1«1. mny D«'Ur 11ml 

noti:K' de'tc .. -rc:d w1tbio 11 ljmcl)' pc"triod b)• ,.:mployC'e'o in lhc rrunmd clJUn!.t' of ptrfarming lhdr llS!iagne:-Ll 

futJL1.iDIL'i. 

In our f&-al year 2005 audit. we noted .n. .:cr1::tin mnlh:r, described in E -tnbil I, invoking inlrmnJ 

oontm~ ov~r lin ndn.l reportin~ :and its opemlioo lhn.i w~ oonsidu Lo be repon:sbl~ ronditioo. 

1-lt,weve"r, lil~· ~por111b~ OOJJdi1ion h. llDI bclic:o,:cd Ia be :t rn:uerinl wnll:~s. 

We nl'i.() nO'Ied eertDin ddi'lil'llltl m:t'll~rs tfullt V.'e A!"port~td 11.'1 m.1ns~emc:11m nf GPO in :. se-pami<C leite-r 

dated Nm ('mber 1 7, :!005, 

E l\ 'll OTII R U\ 1 f • RS 

-lllc: ~Sil ts. o( OOT ~ 0 rornph~ Yt i.th c.:rt:Jin provisiom. C't IDIW!>., rr~u111tKJ~ ~nd OODimct'>., liS 

.d~!iCribro in lhe- :R ~!ipOB!ilbilitics section of tllis rqx~ct, disclosNJ oo insllli11:1:S. of nonrn:mpliBIJC'C ur 

Olhr.r m:.tl~ lhn.1 are requi~d tD be reponrd under Om·. TH.flft'IU' AU'JJJJ'tttt St,mdtmJ,\. 

RK PO ' 1811..1 F..~ 

lonllgl'mm!t" ~L-dhiJiti 

srulcm¢'nl!i. incJuliU.,: 

• Pn:p;uinG lbc rumilllid red rm[l.[]('i;nJ o,Jnlcmrnb m c-anromuly Wllh llet;WilrinG prin~;ip~ genernU)' 

act."l'pl..-d in die Un~L~J StOles 'llr J.\me-~~ 

• ~n!!: the M-nnn1tc~m·~ Obocm ioo arrdl An.nl~i. :and lbc: 'D:KLsnlidlllin,g onu Suppll:".mcnt:Jl 

:SchL"dules. 

• u.Jhii.Jllras !!Jld n• im Jlling imcmru cnnu·ol o~ er fi11~cin l rcpc'nin~: iln..J 

• Cttntptyi11g th l:11"" • Rt;ui:Jiioru ~cl oorrlm.;ts. 

In rDUi II i~ Lhi!t Tt'-!lp<Jnsibilil)'• RIIIJJ;J~mr: l is ~ll in.-d ..., mnke Cllotimatcs :and judgm~lll!. [() W.lo4M lllll!' 

oJXcted ~n~tib nnd rebJI."d co b. of inrcm111 cootrol pohci~s. B~m~ D inb~t IJmitamion.s irr 

inll:'fll:!l Culltml. mi~"!>I'IL•rm.:nlo; due- hi ('fiOr OT rr.md mt~y n¢'\'.:"rlhelC'SS OCCIIT nnJ oot be d.:IA:o:raJ. 

1

gdiW • c.~hiiUI • Our ~r:;vmibkllt> is to :~pre' M opilli m on tbe li:-.cill ~ e.ar .OOS ~mrJ 

:!004 cOtL"Lllitl:~ri:d fin;aneb.1 lililetn~n• ""•f GPO b:l~tl un uur ;utili~ . We cund111..:ted uur i.'IUdj'= in 

!KOOI'dUJkO:: Wilh IJJj•Jng llotand· Ids GtnCrilll}' cc;,tfMC'>I.J ln tht: Uru!A:d Ullc.-. of menr;a wid dJ.Cc 

!!tnndirnb. gppU..-,Ublc: •u fimm~ill.l ;audil .:mtwnr:d m Gm<rmm~rn mlrli111 Stcmdards. 111llse ~ 

n:quln: llt:~l \\ c plun :t~~d pcrt'tJrn'l Lhc 11udi• Eo ~~n n:ru.un:~ble illSSUJ1l.nre n.OOtill whether dt~e 

run~~dall."d 1n n..:iu.l ~llli:lllltn1 •m: (1\."C ~ mrUC"rial nus.sloLcmcnt. An 01ttdi1 includ<s ronsidcrnJion of 

intL"Tll.:d oontrol O'!•'CT rrnonch:d n:pttr:tin~ ~ II basi!. foli de ignimg .nudi~ pn:IC'Cdurt"s IIIDJ II!R: ppropriiiLIC 

Ill lhc cimrrlbt.nncl!!'i. 001 1101 1'or lb!!: pu.rpose cr c:xprr~~ing ~11 opinicn Oil lh~ ~rrorth'CD~S5. or GPO"s 

inll:'fll::d conLnll ~r financi:d rrpon:i n,g. Accon'ling I}. we c prtS"- no Sllch opinio11. 

• ~x:uninirrg, co :JJ ll~t bas.! , cvidmcc ..-uppcrr1nlg lhc runoulll!i 11111d di!>r o~ou~,.. m Lbt: (lomolid~te"u 

Jimutrial Lnlrrnr.nts; 

• "-"~·ll~ the ecooll,in!! pri tld pLies D.~t,l !lnd ~~gm ifl nl ~; imatc:.. m: de by m:JJnag.cmcru: ,D.B(I 

• ~h•n1lng II u\ cl'!lll Qlfl'llilir.llted rnumcl I ,m,em~tu P~"'-nlutiLI!Il. 

In plannin~J: nnd IJC'Iifooni:ug oor rtM:.n.l ycm- 2005 nudr~. \'~ rorr11dc~t:dl GPO':\. J~mllll t:onLrDI o'·~r 

f'iMncild n.·port:ing b)' obtuill~rrg llJ] unde:-I'St;lnding or GPO' inlC'mn.l rorrtrol. cletcrmining whNh~r 

nrem;~J controls boo bern pl:~a..l in oper.~lioll~ :tS~ing oonlmt lli'\k., :md p«funnlng Le~t'l. of control'! 

in tQth::r lo de.termi11e nur i!lldiring ~un:s 'fqr Lhe pu~l.l! of e\lipre..~ng Q{tf opiniflll 1Qfll the 

cun ulir.l El.'d fin"ndn'l lltn.Lem nb. w~~: tilnlterJ oor riUI:fn I (f;Jfttf\.-.3 t tin-g m dlJt -cuntrnh tKC~"-"' r)' to 

ndlic\'e the rw~li'llet; dei~rib.:d iu Grmvmm·m A•KI;Iin • S~'U ri/urtJ . 'The objet'IJtr-c uf uur ~:~udJ1 w-ru. 

n ,. lu pn,,•iLI~: "~ur;Iru;t: •m GPO' imcmltl (UJtlml u'>•t:"f fi:nruM.-'i I n:pgf1inJ.. Ctm_ .. eqt.u:nll}'. v.e dn n ., 

pru.,•idc :U1 upiJnon Lbt:m.HL. 

pru1 of ~. mmg n:.uwnublc ll....sltmncc ub1.1u1 ~., hc:~r Qpo·~~ lh .. ·· ~ }(;.'\:Jr lU05 1."11lll:\.ti~LithiC'.d 

fill.JIIaoL !> tn.t~mt<rrl\ 1111: !t-ctl of rnatcnnJ mi2.1lltrml"nl. \'t'"C: pc:rt'orm .. -d II:'!!~ D' GPO' oornpli::~nt'C w11h 

«rtll.in pnwh.ion ,,r taw!.. regulrt1iru1s Ollld t1on.tmc1s. ooncornplirm.:< wi Lh whicb could 'lln.•e 11 J.i red 

Wid ncrc-rial etlca;-E oo lhl" cklamirr:~ icrr of ~oo.solida cd r.n:arrt'f.n] \tnlt:rrn.'Dt ~.m. Wr. limit.:.·d lllllT 

t~ of oompuarrcc to til.:- provision.~ l:kscribed [rr dlt preceding ~L~nce. nnd \\'.!!' did. rrD4. lcsl 

oornpti:mC't' with :nJI I " • regul:atian,<;. :md oomtmct,r;. :~pplic..nb ~ •n GPO. However. pmvidi.nj! an 

opinioll l.lJII cnmplmncc with lu.w'>. rc::r;•• lation:!l. and conlmet5. w:~.., not ru1 objooHve or i;Jtlr auw• nd. 

:lCL'(lJdan~Jy. we do JlOI er< pre..~ ueb .nn nprnioo. 

TRIBt ro " 

]lti report is inte-nded ~IC' y Cor ithl:" iofomulioo nd usc of 1ht: Public Prirrtcr, diC' Joint Committee- err 

Printing. <.'iPO•!!. lllrl.IIBgCJDCilL GPO's OHit:e of lrui)XdDr 0~1. Lilt' Gav~rTIJIItD1 Acroun1:tbiJil'!!' 

omcc.arul the U.S. Ccmgrc~ and i;\ not lntct:tded to be md .. hoold nl.ll br ns.cd b.) 11n~o11C' ctbe:r lil;J~ 

tbL-s.t:" ~c!fii:d p:mi~. 
16 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 17

l"kftcic:nel · in 1l1c dC"§.tgn ;;tf1ti/C)f' operntl n~w of G PO' ... Iff tellil!rtll .:nntruh.. a~ cort<.ldered :11 rcpon..-'lblf: 

(W'JfldiJWn. Thi 0011di1ion. whiC"h liM been n!portoo ~ man.'l meru in prior )'ears: :t(idil ~n.o;., rein~~ 

rtl the folkw. ing M::t • 

li:'lt"r:r-.1 ~ n:p;~J'di g GP01 cn1crprhc:·widc M:curiL.)' ro~rnm oC'r:d bti ro\'~:mcnL During 2005. 

GPO conrln ~ lo mp .r rnC' ~ n cn.Lcrpn'!>C-w de :o.ecuri1y progmm lt cmC' I t.h.1t c~31J.JJ!hr d 

in llflllllllOil !>tt'Un 1y objtclin~s ror UPO. ibis pro,gmm ~u•~m~ru 6 II pu!titiw ~r.:-p Cw GflO :mcl 

E:on1 imae: lo be Un1Jlcmcn1.tdl within the crgm1iz.BIJDIL aw~v~ ~ GPO cljJ noL romp ch~ the 

t'C"rlifi~tllltlll III'IJ O!Cnedir111Jon Ll its key rio.:1ndnl lo}' !t rns 01" fUEl} cpl~)} 11 Jofommtji'JJI !.OCUnly 

11\\<DRIW:Sl. p~m. A>dditionn'Uy, v.-c nolc:J lh..lJ 3 pcnm1n.1nrt:' c:V11luation proc1:s-s. dlilll 

inc~ c:s; rt::ripollsibilimy for pll!' ~i ~ L'OilT"C'C i~ :teliDiliS lms. n impltomC'liCcd for senior 

m.nnJ~~mc- . bul V..:t.~ nol fully iotmJu oo :.t 11rll lc:vrls o( llle or~.:mi:rnlion. '\ Ubout Ill 'II c:ll-

!lb.i~ncd m~r.um, SL."CUnily eonrmle\ mn.y be in:1dcquate-; n:'lpt.ln'ii'hm1lc:s m:~y be unck.nr. 

c:TJ'iood. :.mdl ~r y Jmp c:fi!Lml~ : nnd conl:m1l'O ITL")' be inooru; ~rendy ~pplied. 

2.. t"«.'i/11 ootrot · 

Ccl'lnin ~S..ij, OO(t1n;)1s. I'Cqllift! mooiflc..'\tin:n in rd~r U) Pf"\ ~ ~ ml.li'C' ~c re £Dr""l l\llltnlCHI., 

~ " oonnnl. hnuld ptnvi ~ rt:l...:IPI ~;: nee 'lhll1 COfllpltt« !'fSOO~ (dat!IJ fi~. 

appllemion proi~m~. nd Ol1fl iJO Cf ~ lati.'d fa.c.'iliaic:s anu equipo1en0 Are prot..."ICted sain~ 

U!l.'ltJllttll'i<l~ m-_,ifi.; iif'll1, dil'C'[oo.urc. l~lfl,., \ im,.,imlem. Th ~ un!l'DI 

J fie''~.'t:ftt mulb, lfirl~ · ~ 10 cn~i~lv~ fil- ~Jeh ~ periooi · ~mit)' ~'~" 

p:tMoowurd <SCUinp., IUkl emplu}'CC' cbcd()l.ll puliclc tutd rtati~~J't:i'. . 

3. pplkatloo D~\ fop.ml'Dl .iiDd bllQ&~ 1furng~l'Dl 

GPO h:Lr, :nn cstnbli; brd •. ~rmw Oe--..clopme-_nL Urc Cyel.t (SDI.C) melfl!Jdaloro l"l"'!mc\\'-'rt: 

00 'ICV~r, C'C:f1ain lbpccls of lhe' m.:tllodolo~. 111111 pro-..·ide dc-!:iiloo (:Uidnnrrcc LW'CI" Lbc- moJificalium 

Df :!ipp1iC".:l.ljWI of1Wlll'l!! (MOSniJR.i hn\.i! fWt hem fuUy depJO)'e'tJ. \\ritiWill prop!!r eanm;ll'i. :II ri!i~ 

C'!\i'>l .. tb t ~rriC)~ re U~ oold be irt!!.dvc:rtcnCI)l ()V crlibcm d~ LlllliQcd 0 "UII'JI(U ufr 01' ~ttn• 

pnxe~in ' i!1'e'gulnrittt!:\ ~nnlidrt1 .., (.-ot.!C uuld be r~ tmd et.td. 

"· ) m allwDI'e' 

Cri1;Jin cootmls Dvt'r moodic:~ i D o !t)'~'=m !rDft\"r.m: nC'Cd impm\'t<IJIC'TIL Sy 1crt1 ~vn .... 'llft' 

C:on rol ~ DR" tSSCflli:JI In pm'olidinp. Tr11."loOD:Jbk llSS IDIIC~ &fl:Jt DpU".t ~ S.ys'l.C'n'l-b31S(:d sccuri&)' 

l.lrl'lrols. :~n:: not c!IU11prom ~ :nnd th!IL the }"!ttr:m win n L lbc impaired. lf contro ~ in th" lill'a mr 

imiLlt q11.111..·. mtftuUJDri'led ncth.-id ll ~ mighJ u!'l!:' ~)'st(' rn softwa~ to C'i rcllmvtnt ~·urily controls. ~o 

re01d, m1odify. or de.kre cri1iml l'lr st:n.<dliv.: rnfo1'11Llmtoo :md P~" \\-r~ nD'tell lb:tl no fomml 

(lffiC 'd ~:-. bavc been developed rto mana~ eh.'ln~ to . )'~~rn '\(IRWill"C OOIIlJXmenl~ 

f'fsrnl r ar :1!00- Repormbl ondltkm 

5· St:r!iike nnrtnulil:.)' 

1A.~1ng dtc r.·lLJ)ablllty to J)t"UI;t!:s-s. :rt[nc..-.:. ami pru4ee1 nftJmlli [I ~ ruabuuinc:J el~1rumtilll }' n 

!lgnifiL."'IIllLl}' limpaJ c nn lgt"nq•• 11bdil}' ~o lll."'C l~b [b. mM.ioo. ' !.'JT d1~ remwt, III1 ~en"')' 

s.houJi.l 11111 .. "4!' ( I ) piUI:~ re rli ;~~ to pmlrt."t in(orm.JJioo resoo~ .n.nd minimize lllc risk. of 

UllpiiLnncd l~nupti~ nnd (::! 3 plllll to rt..:mTr m ti I l(}fJI:r.Jiioru. llould inLcmrpLion oc.:ur. 

GPO hM hlablish(l(! 1 oonJingcncy hrn ~ ow~·•.cr, 1L bns oot bc~n fully lrstl:'d. Additiomtl Ly. 

bU'ii ~'1 lmpxl tmllil.}i.Sls 'Ml." DDI L"'(lrnpli:Lcd i'or j I! rruJjor stppHCIIhOrL"> !lDd gf!fl('m) 'iUppDCI 

\)! LL~. 

GPO mild~ ru~rea in ~Df:!dwumg 1Ls mJmm;aJJUn S~C.;; ri ' l:'llVJroruncnl dunng FY 2005. 1l11C 

CUI'IIinuecl .implfttlt'ntatkm of i~ cnU:I")Jrise-wldc ~~uri }' progrnn1r rpltm, GPO lnfim~rn iotJ Tt'dr_nolog>.' 

SN.ltrUy Pmgmm Slalf"mt'nl nf Polin- (Oi'O Public: tion l:ll5.31), n.,. [l lll ~«l .s«~.~n ' ~141n.Jili 

[o be ~~ppJil'd oomistenEI)• ~JCJ"mS Gl}(). AddimioMll}'. Gl'O h~n ouboo:roed .o. portion of ib . 1D11m:ln1 

tTpo:rlinf! l1pplicalions to 11 lhud-p:u1.}' ~r in 11 L"'(Jnlinuin_g rffon to rrtl~ its ~cy l'in::and n.l 

n::porta ~ applk"DDIoru. 

RernmmmdotiTum: 

W..: ~111\mend chnt OPO ""t nLinuc Ul tn:nglhcn L~o rrr ~enernl a fa£!\) I in, r:ll hr L1f ~he fl'toe ill'ell"' :i'-

rull(,,, A 

I. E-n limy~ \\'idl! 11' ril~· :P~mm 

• Cnmplr:te cite .:«aifiC11 h~n ru1d ..t~cf(I!Ji · rinn t4" 'kcl' Fin nr:l 1 y rcrtt.., 11nrJ f dll}' Ill:' pitt) n 

inrtJrm:~Lrun 1mt)' awllt'l:ne.s~ progr.irn 

b. hnplc:menl ~ pc:tfnrm occ c-wluatocm PJOL"'K<i dw inrorpornte1 Ire' pom;ibllity for c: mr:nmi ~ 

c-om:i::mi'i·c: al"' ivn'i nl ~II k'r"Cl\ of alliC organb.:-ttaoo. 

1. al~ ~m• rob 

3. Uljli;u: ir!d..:ptD£kl11 ri.s.k ru ~~nto;; in ~.;1' It;) properly ciiL~·Cy CQRIPIItff i ~fon l) l io n 

~-.Qllfl.'e.' :'d(dln; to '>¢1hatlvhy Jld rl•1c; ll4). 

b. lmprnn passt~rcrdi ..cnmgs, [O ruJJy romp1y with Fcdrnll rr ~nly requt:rr l'li . 

c. f.{lhrut ~ empl y~ «:.IK touf proocd ~ to r~ y oomp ~ "'1111 fedel'11 rr S«.'Uril)l 

~~~ Jf\."ffiell~ 

3. ' p,plicalmn D V>e.rop:mcnl .and Chan~ Man~~Jl!nl 

. f ,dly .Ue!r)IV)" d\C. DLC ''"' help Cl .. un: ~hm t.t:lll}' mubora,Y ~l .. mld rnod1fu.; 11i t1t " 

unplr:llk1•t.edl. 

.a. ~ m SortiKl ll'l!· 

De\ c:lop wid impl~:mmr rc.mMI pnxcdllrc lo nlilliugc d1;~11~~ 10 !o) ~.:m 

c:omputtcn1 . 
18 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 19

S• ~ e:r!iik'e ontlnult.)' 

a. rl."-t.Jmplcte" ibo 'te~Jn,g (] h~ (;UJtlim;r:nc)' p1W'I 111:'1d ck\c~up a ~hcdu c m pmtld ct~ll)' ~ lhc 

pln.ll in lhc rut~ 

M n~.m~m Res_(JC!ra-.e: 

M:am•.cemmL cutl~Cur.. wiab Lbl'l linding .nnd ~nmda.Liom._ 

1.-\ im:licatt:d in ~hihrt 1. GPO 1113rlr p~!.s in FY ~OOS b.)l im,plancnJing 11 corn:"cti'I-'C' u.caioo p1:m 

thm d~ ::1 numlxr of mill' I'Y 11MM m:nmme~~daticns socb n£ 

• Appl io.'at it1111 Cutllf\1.11:.: Q[l() llev~lopN ""d lrnpfetneli'U~ IJ'I'-~IIII'es U'.rl!r u...er :111d .tl~XCltU'U prro111e 

~~mef'lm. 

• GC'rtrrJI Control ; Whll ibo 5CCurri•y p~rwn plun iniJllkmcn,IJ~ion oo-~oiJ~. GPO h~>ronliot~t'lcl. CD 

tldrrss ~,,.~ral prior ~111' we kneSM"s. blunpl~ l:nc:lude: dcvrlopln!!: user ~nl 

prt.~~.:t."du~: cornpletifl# an n_~ rig.hu. ~view~ lldbL"rirtg ID ib ooclqmlUnd n~sl !,lilttcm '!Xllit.'ll!>; 

!e'llllbltsbirJS: O:ptr.Lling procc-du:JC<. ror iL .. d:rt:n.ce-n!l:f employ~~ improYing pll:} ial ~J:Uril} 0\'e'r 

i~ d:~tncc-n!er; .'llld fulmn lly mp cmeolin~ 11n ilridcn1 n:spoos~ c3pabltiLy. 

Ho~ cv~r. ll'i. W!§.('US.~d m l!d•ib•t I. we oonbnnc to bd icvc thnt 1mpronm~ots, .n:re ncrded 10 .strrll[:.~Mn 

GfO's. mfonnnlhlfll~ml'l~>g)' mvil'tJIUDmL 

M:an:~~;cornroF Reo!iioonsc: 

'I n:. c-mcm C.;M~J ttN wimh lhis findiT•C mld ~-.urn;J~!l.J inn,.,. 
Consolidated Balance Sheets

As of September 30, 2005 and 2004

(Dollars in thousands)

UNITED STATES GOVERNMENT PRINTING OFFICE

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

 2005 2004

ASSETS 

 Current assets 

 Fund balance with the U.S. Treasury (Note 2) $ 206,711 $ 194,018 

 Accounts receivable, net (Note 3) 104,101 144,589 

 Inventories, net (Note 4) 9,054 8,898 

 Prepaid expenses 3,313 432 

 Total current assets 323,179 347,937 

 Property, plant, and equipment, net (Note 5) 56,172 59,198 

 Total assets $ 379,351 $ 407,135

LIABILITIES AND NET POSITION

 Current liabilities 

 Accounts payable and accrued expenses (Note 6) $ 77,864 $ 88,546

 Deferred revenues (Note 7) 54,742 73,703

 Accrued annual leave 10,039 9,294 

 Total current liabilities 142,645 171,543 

 Other liabilities 

 Workers’ compensation liability (Note 8) 76,122 79,603 

 Total liabilities 218,767 251,146 

 Commitments and contingencies (Notes 9 and 10) 

 Net position (Note 11) 

 Cumulative results of operations: 

 Retained earnings (accumulated deficit) 1,320 (8,303) 

 Invested capital 92,879 92,879 

 Unexpended appropriations 66,385 71,413 

 Total net position 160,584 155,989 

 Total liabilities and total net position $ 379,351 $ 407,135 

UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 21

SECTION III

Consolidated 

Financial 

Statements

20 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004
22 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 23

Consolidated Statements of Cash Flows

For the Fiscal Years Ended September 30, 2005 and 2004

(Dollars in thousands)

UNITED STATES GOVERNMENT PRINTING OFFICE

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

 2005 2004

CASH FLOWS FROM OPERATING ACTIVITIES

Net income $ 9,623 $ 11,259

 Adjustments to reconcile net income to net cash 

 provided by operating activities: 

 Depreciation and amortization 7,660 7,622 

 Gain on disposal of property, plant, and equipment (24) (63)

 Changes in assets and liabilities: 

 (Increase) decrease in assets- 

 Accounts receivable 40,488 (31,231)

 Inventories (156) 1,860

 Prepaid expenses (2,881) 168

 Increase (decrease) in liabilities- 

 Accounts payable and accrued expenses (10,684) 16,437

 Deferred revenue (18,961) 6,158

 Accrued annual leave 745 (834)

 Workers’ compensation liability (3,481) (9,929)

 Total adjustments 12,706 (9,812)

 Net cash provided by operating activities 22,329 1,447

CASH FLOWS FROM INVESTING ACTIVITIES

 Capital expenditures (4,758) (10,363)

 Proceeds from sale of property, plant, and equipment 150 63

 Net cash used in investing activities (4,608) (10,300)

CASH FLOWS FROM FINANCING ACTIVITIES 

 Decrease in unexpended appropriations (5,028) (150)

 Net cash used in financing activities (5,028) (150)

 Net increase (decrease) in fund balance 

 with the U.S. Treasury 12,693 (9,003)

Fund balance with the U.S. Treasury, beginning of year 194,018 203,021

Fund balance with the U.S. Treasury, end of year $ 206,711 $ 194,018

Consolidated Statements of Revenues and Expenses

For the Fiscal Years Ended September 30, 2005 and 2004

(Dollars in thousands)

UNITED STATES GOVERNMENT PRINTING OFFICE

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

 2005 2004

OPERATING REVENUES 

 Printing and binding $ 552,123 $ 531,242 

 Sales of publications 22,560 24,024

 Appropriations 123,131 131,466

 Reimbursements 4,851 5,022 

 Total operating revenues 702,665 691,754

OPERATING EXPENSES

 Printing and reproduction 415,946 400,492

 Personnel compensation and benefits 196,719 197,646

 Retirement separation incentive program (Note 16) – 7,628

 Supplies and materials 31,900 32,367

 Rents, communications, and utilities 19,318 22,085

 Publications sold 7,014 6,146

 Depreciation and amortization 7,660 7,622 

 Other services 12,985 11,904 

 Surplus publications 1,962 108

 Travel and transportation 3,019 4,426

 Subtotal 696,523 690,424 

 Income before other operating expenses 6,142 1,330

OTHER OPERATING EXPENSES

 Decrease in workers’ compensation liabilities (Note 8) 3,481 9,929

 NET INCOME $ 9,623 $ 11,259
24 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 25

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

GPO’s Printing and Binding Operations and the Sales of Publications Operations. Accordingly, the two major sources of 

revenue to the revolving fund are reimbursements from the Congress and other Federal customers for providing printing, 

binding, and distribution services, and publication and subscription sales to the public.

The Printing and Binding Operations account for the revenues and expenses associated with services provided by the 

printing plant (i.e., in-plant printing) and Printing Procurement Program (i.e., commercially procured printing). The costs 

of these services are recovered through rates charged customers that include direct costs, overhead, and related expenses 

permitted under 44 U.S.C. § 309.

The Superintendent of Documents, Sales of Publications Program, sells Federal Government information products to 

the public. The sales price of a Federal Government publication is established in accordance with 44 U.S.C. § 1708. Designated bookstores at educational institutions, book dealers, and other purchasers of large quantities may receive a 25 percent 

discount on the domestic price of a product. 

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 information dissemination services provided to the 

public without charge to recipients by the Superintendent of Documents. 

The Congressional Printing and Binding Appropriation is the larger of the two annual appropriations available to GPO. 

This appropriation is used to pay the cost of the printing and binding requirements of the Congress, and the printing, binding, and distribution of publications authorized by law to be distributed to others without charge to the recipient. 

The other annual appropriation made available to GPO is the Superintendent of Documents, Salaries and Expense 

Appropriation. This appropriation is used to fund the following four information dissemination programs of the Superintendent of Documents: the Federal Depository Library Program (FDLP) which includes GPO Access, the Cataloging and 

Indexing Program, the By-Law Distribution Program, and the International Exchange Program. The majority of these appropriated funds finance the FDLP.

Expenditures from the two annual appropriations to the Agency are used to reimburse the GPO Revolving Fund for the 

cost of printing and binding, and other services and supplies furnished by GPO in accordance with Title 44, Public Printing 

and Documents, of the U.S.C.

C. Fund Balance with U. S. Treasury

Fund balance with the U.S. Treasury represent all balances in GPO accounts with the U.S. Department of the Treasury (U.S. 

Treasury). Generally, the U.S. 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 collection experience.

E. Inventories

Inventories of publications held for sale are valued at the lower of cost, using the weighted average cost method, or market. 

The publication inventories are shown net of a provision for excess inventory that may be disposed of by the Agency in the 

future. The allowance for excess publications is based on life cycle studies of product sales by the Superintendent of Documents that provide a historical basis for the determination of potential excess inventory on hand. 

Inventories of paper, materials and supplies include the cost of production material (e.g., blank paper, spare parts, ink, 

and book cloth), as well as the cost of administrative-use supplies. These inventories are valued at the lower of cost, using 

the weighted moving average cost method, or market. Inventories of materials and supplies are shown net of a provision for 

obsolescence.

Section III: Consolidated Financial Statements

SECTION III

Notes to Consolidated Financial Statements

1. Summary of Significant Accounting Policies

A. Reporting Entity

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

Agency’s mission and authority are derived from various statutes codified in Title 44, Public Printing and Documents, of the 

United States Code (U.S.C.). The Congress established GPO to provide the Federal Government with an efficient and effective means for the production, procurement, and dissemination of Federal Government information to the Nation.

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

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

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

provided by Congress. The GPO Revolving Fund maintains a system of accounts and records transactions to comply with 

the requirements of Section 309 of Title 44.

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

operations. The JCP is comprised of five members of the U.S. House of Representatives and five members of the U.S. Senate. 

The Chairmanship and Vice Chairmanship of the JCP alternate between the House and the Senate by Congresses. 

GPO is dependent on two annual appropriations. The Salaries and Expense (S&E) Appropriation finances certain public 

information dissemination programs of the Superintendent of Documents. The Congressional Printing and Binding Appropriation is used to reimburse GPO for the cost of all publishing services provided to the Congress. GPO’s budget requests 

are subject to review by the House and Senate Appropriations Committees’ Subcommittees on Legislative Branch Appropriations. GPO also receives funds from customer agencies as reimbursement for products and services, and from the public 

for the sale of Government publications and subscriptions.

B. Accounting Environment

Basis of Accounting

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

have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the 

United States of America (GAAP), applicable to commercial enterprises. Under the accrual method, revenues are recognized 

when earned, and expenses are recognized when incurred, without regard to the receipt or disbursement of cash.

Basis of Presentation and Consolidation

GPO prepares annual financial statements that reflect the overall financial position and results of operations to meet the 

requirements of 31 U.S.C. § 3515(b) mandated by 44 U.S.C. § 309(e). The accompanying consolidated financial statements include all funds under GPO’s control that have been established and maintained to account for the resources of the 

Agency. All significant intra-agency balances and transactions have been eliminated in the preparation of the consolidated 

financial statements.

The GPO financial statements do not include the effects of centrally administered assets and liabilities of the Federal 

Government, as a whole, such as interest on the public debt, which may in part be attributable to GPO. Other Federal agencies make financial decisions and report certain financial matters on behalf of the entire Federal Government, including 

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

agencies in which GPO is indirectly involved include employee benefit plans and certain legal settlements.

Funds

GPO maintains a revolving fund and a general fund to account for its various programs and operations. Each of these funds 

is a distinct fiscal and accounting entity that accounts for cash and other financial resources together with all related liabilities and equities.

Revolving Fund – The GPO Revolving Fund is an inter-governmental fund established by Congress on July 1, 1953. This 

business-type revolving fund is available without fiscal year limitation for financing the operation and maintenance of 

GPO, except for those programs of the Superintendent of Documents that are funded by specific appropriations.

Section III: Consolidated Financial Statements
26 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 27

but not reported. The liability is determined by utilizing historic benefit payment patterns related to a particular period to 

estimate the ultimate payments related to that period.

J. Revenue Recognition

Printing and Binding – By law, GPO must be reimbursed for the cost of printing and binding services furnished customers. 

Revenues from in-house printing and binding work are recognized on a value-added basis, as work is performed, while revenues from commercially procured printing and binding are recognized on the date the contract requirements are fulfilled, 

which is generally the date of shipment by the commercial printer to the customer agency.

Sales of Publications – Revenues from the sale of publications and subscriptions are recognized when shipped by the Superintendent of Documents to customers.

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.

Reimbursements – Revenues from the storage and distribution of Federal Government publications by the Superintendent of 

Documents for other Federal agencies are recorded when services have been performed.

K. Expense Recognition 

Printing and Reproduction – This expense represents the cost of printing and reproduction jobs procured from the private 

sector to satisfy the needs of the Federal Government. The expense is generally recorded on the date of shipment by the 

contractor, and is shown net of vendor prompt payment discounts earned by the Agency.

Personnel Compensation and Benefits – Personnel compensation consists of the wages and salaries, including overtime premium and night differential, paid to GPO employees on a biweekly cycle. Personnel benefits include the Agency’s share of 

contributions towards Federal Employees Health Benefits (FEHB), Federal Employees’ Group Life Insurance (FEGLI) and 

the two Federal Government civilian employee retirement programs. The two retirement programs are the Civil Service 

Retirement System (CSRS) and the Federal Employees Retirement System (FERS) that includes the related Thrift Savings 

Plan (TSP). Personnel benefits also include the entire cost of transit benefits provided by GPO to participating employees. 

Personnel compensation and benefits are recorded as expenses when earned by employees.

Supplies and Materials – Paper is the most significant cost component within the category of supplies and materials. Paper 

and paper products are commercially procured to satisfy in-plant printing requirements and customer orders for blank 

paper. The expense is recorded when paper is drawn from inventory to fulfill customer orders or delivered to the customer 

(direct mill-to-customer shipments). This expense category also includes all other supplies and materials that are not capitalized, such as personal computers, furniture, and office supplies. The costs of these items are expensed when issued from 

the stores inventory for use.

Rents, Communications, and Utilities – Rent and lease costs are incurred for the use of building space, equipment, and motor 

vehicles. GPO leases office and warehouse space from the U.S. General Services Administration (GSA) and/or commercial 

landlords. GPO also rents automobiles and trucks. Communications costs include telecommunication services and postage 

expenses. Utilities expenses include electricity, gas, steam, and water service. Expenses are recorded as services are provided.

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.

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 (i.e., month). The acquisition cost of each 

capitalized asset is depreciated, or amortized, over the asset’s estimated useful life. The estimated useful life is measured in 

months (e.g., 60 months). Depreciation, or amortization, of a capitalized asset generally commences when the capitalized 

asset is placed in service. 

Other Services – This expense represents the cost of services provided by contractors for audits, investigations, consulting 

services, tuition, and training. The expenses are recognized when services have been provided.

Section III: Consolidated Financial Statements

F. Property, Plant, and Equipment

Property, plant, and equipment purchases are valued at the 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. Printing equipment transferred to 

GPO from other Federal agencies 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 transfer. Major alterations and renovations are 

capitalized while normal maintenance and repair costs are expensed as incurred. Depreciation and amortization of property, plant, and equipment is calculated on a straight-line basis over the estimated useful life of the asset.

The following table reflects the standard estimated useful life of each major asset category. Exceptions to these standard 

estimated asset lives are authorized when justified.

Standard Estimated Useful Life Of Assets by Major Category 

Asset Category Standard Estimated Useful Life (Years)

1. Land N/A

2. Building Improvements 20

3. Building Appurtenances 20

4. Other Structures and Facilities 20

5. Furniture and Fixtures 20

6. Leasehold Improvements 10

7. Plant Machinery and Equipment 10

8. Office Machinery and Equipment 5

9. Motor Vehicles 5

10. Computer Software 3

Land has an indefinite life and is not subject to depreciation. 

G. Deferred Revenue

Deferred revenues are funds that are received in advance from customers for the future delivery of goods and services ordered. The Agency records these advances as revenue when the goods are delivered or the services are performed. 

 H. Accrued Annual Leave

Annual leave is accrued as a liability when earned, and the liability is reduced when leave is used. The annual leave liability 

is calculated using the current hourly salary or wage of an employee times their total hours of unused annual leave that 

has been earned. 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. Employees will receive a lump-sum payment for any unused annual leave 

when they separate from Federal service or enter on active duty in the armed forces. Generally, this lump-sum payment will 

equal the pay the employee would have received had they remained employed until expiration of the period covered by the 

annual leave.

I. Workers’ Compensation Liability

The Federal Employees’ Compensation Act (FECA) provides income and medical cost protection to covered Federal civilian employees injured on the job, employees who have incurred a work-related occupational disease, and beneficiaries of 

employees whose deaths are attributable to job-related injuries or occupational diseases.

The U.S. Department of Labor (DOL) administers the FECA Program, which provides workers’ compensation benefits to 

GPO employees and others through the Special Benefit Fund. GPO annually reimburses DOL for the cost of FECA benefit 

claims paid on GPO’s behalf.

Future workers’ compensation estimates are generated from the application of actuarial procedures developed by DOL 

to estimate the liability for FECA benefits. The liability for future workers’ compensation benefits includes the expected 

liability for death, disability, medical, and miscellaneous costs for approved compensation cases related to injuries incurred 

Section III: Consolidated Financial Statements
28 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 29

2. Fund Balance with the U.S. Treasury

A table of items included in GPO’s funds with the U.S. Treasury, including funds on-hand or in-transit to the Treasury, as of 

September 30, 2005 and 2004 follows.

Unrestricted funds are available to meet the financial obligations of the Revolving Fund. Restricted funds are comprised 

of customer deposit accounts, accrued wages and salaries, payroll taxes and other withholdings, earned annual leave not 

used by employees, and amounts due to the Office of Personnel Management (OPM) from the GPO Retirement Separation 

Incentive Program (RSIP). These funds can only be used for the purpose specified.

Supplemental and other appropriations include unexpended appropriations made to the GPO for specific purposes as 

discussed in Note 11B.

GPO provided the U.S. Census Monitoring Board (CMB), a former Federal entity, with administrative support services 

for a fee between fiscal year 1998 and fiscal year 2001. The U.S. Department of the Treasury continues to maintain a fund 

balance for the former CMB that is reported under GPO’s accounts. GPO does not include this amount in its consolidated 

financial statements because the appropriated funds are only available for obligations of the former CMB. The CMB fund 

balance was $279,243 at both September 30, 2005 and September 30, 2004. GPO has requested the U.S. Department of the 

Treasury to accept return of the CMB fund balance. The CMB account must remain dormant for at least two years before the 

U.S. Department of the Treasury can close the account.

Section III: Consolidated Financial Statements

(Dollars in thousands)

 2005 2004

Fund Balances: 

 Revolving fund: 

 Unrestricted $ 65,869 $ 34,141

 Restricted: 

 Deposit accounts 50,042 65,703

 Retirement Separation Incentive Program 4,607 4,607 

 Other 17,602 16,114

 On-hand or in-transit 12 195 

 Total revolving fund 138,132 120,760

 Appropriated Funds: 

 Congressional printing and binding 33,394 48,331

 Salaries and expenses 7,992 19,978

 Supplemental and other 27,193 4,949 

 Total appropriated funds 68,579 73,258

 Total $ 206,711 $ 194,018

Status of Fund Balance with the U.S. Treasury:

 Unobligated balance: 

 Available $ 43,159 $ 34,356 

 Unavailable 27,193 4,949

 Total 70,352 39,305

 Obligated balance not yet disbursed 136,359 154,713

 Total $ 206,711 $ 194,018

Surplus Publications – This expense represents an estimate of the cost of potentially unsaleable publications held in inventory for sale by the Superintendent of Documents. The estimate is based on an analysis of product life cycles that considers 

quantities purchased, historic sales by month, inventory disposals, and remaining stock held in inventory for sale over an 

assumed standard life.

Travel and Transportation – This category includes travel and transportation costs of persons or things, including employee 

relocation costs. 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. Travel 

expenses are accrued when they are estimable, while transportation costs are generally recorded on the date of shipment.

L. Consolidated Statements of Cash Flows

The consolidated statements of cash flows identify cash receipts and disbursements and classify each into operating, investing, and financing activity categories. The disclosure of this information is intended to help assess the ability of GPO to 

generate funds from current operations, to identify financing acquired from outside sources, and to identify the major nonoperating (investing) uses of funds.

M. Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of 

America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements, and the amount of 

revenues and expenses reported during the reporting period. Actual results could differ from these estimates.

N. Tax Status

GPO is a legislative branch agency within the Federal Government, and therefore, is not subject to federal, state, or local 

income taxes. Accordingly, no provisions for income taxes are recorded by the Agency.

Section III: Consolidated Financial Statements
30 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 31

5. Property, Plant, and Equipment

Net property, plant, and equipment (PP&E) as of September 30, 2005 and 2004 consisted of the following.

6. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2005 and 2004 were composed of the following.

7. Deferred Revenues 

As of September 30, 2005 and 2004, deferred revenues from customers consisted of the following.

Section III: Consolidated Financial Statements

(Dollars in thousands)

 2005 2004

Land $ 9,971 $ 9,971

Buildings and improvements 75,997 75,617 

Plant machinery and equipment 73,448 74,976 

Computers and computer software 29,247 29,814 

Furniture and fixtures 6,156 6,015

Motor vehicles 633 740

Leasehold improvements 946 1,030 

Construction and software in process 885 1,020

 Total 197,283 199,183 

Less: Accumulated depreciation and amortization (141,111) (139,985)

 Net property, plant, and equipment $ 56,172 $ 59,198 

(Dollars in thousands)

 2005 2004

Accounts payable: 

 Commercial printing $ 43,379 $ 41,353

 U.S. Government agencies 13,099 28,480 

 Other 9,216 7,287 

 Total accounts payable 65,694 77,120 

Accrued salaries and payroll taxes 12,170 11,426 

 Total accounts payable and accrued expenses $ 77,864 $ 88,546

(Dollars in thousands)

 2005 2004

Deposit accounts $ 50,042 $ 65,703 

Subscriptions 3,780 4,874

Unfilled orders 260 941 

Advance billings 660 2,185

 Total $ 54,742 $ 73,703

3. Accounts Receivable

Accounts receivable, net of an allowance for doubtful accounts, as of September 30, 2005 and 2004, 

consisted of the following.

The majority of GPO accounts receivable are due from other Federal agencies that ordered goods and services from GPO. 

By law, these customers are required to reimburse the GPO Revolving Fund for the cost of their orders through a system of 

rates and prices maintained by GPO. 

Unbilled accounts receivable result from the delivery of goods and the 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, 2005 and 2004.

 Employee accounts receivable includes amounts owed by current and former employees who were advanced leave. 

Employees generally repay their leave indebtedness through biweekly installments from their earned leave, or from leave 

donations from other employees under the GPO Leave Donation Program.

4. Inventories

Inventories, net of an allowance for surplus and obsolete stock, as of September 30, 2005 and 2004, consisted of the 

following.

Section III: Consolidated Financial Statements

(Dollars in thousands)

 2005 2004

Federal Agencies: 

 Unbilled accounts receivable $ 97,465 $ 127,083 

 Billed completed work 7,314 20,354

 Subtotal 104,779 147,437 

Other receivables: 

 The public 1,702 1,204

 GPO employees 875 814

 Subtotal 2,577 2,018 

 Total accounts receivable 107,356 149,455 

Allowance for doubtful accounts (3,255) (4,866)

 Total accounts receivable, net $ 104,101 $ 144,589

(Dollars in thousands)

 2005 2004

Publications for sale $ 7,826 $ 7,202

Paper 2,297 2,716

Materials and supplies 5,864 6,595

 Total inventory 15,987 16,513

Less: Allowance for surplus and obsolete inventory (6,933) (7,615)

 Inventories $ 9,054 $ 8,898
32 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 33

9. Commitments

 9. A. Operating Leases

As of September 30, 2005, 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. 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.

Rent expenses were $3,334,000 and $3,889,000 for the years ended September 30, 2005 and 2004, respectively. As discussed in Note 17, leased costs for warehouse space decreased as a result of GPO vacating a commercial building in Laurel, 

MD (i.e., Laurel Building I) in which the lease expired in August 2004. 

 9. B. Commitments on Undelivered Orders

GPO regularly places orders 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. Total undelivered orders, including printing and binding 

contractual commitments, for GPO at fiscal year-end were approximately $114.0 million and $111.1 million as of September 30, 2005 and 2004, respectively. 

10. Contingencies

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 determined when future events occur or fail to occur.

GPO did not record any liability for contingencies as of September 30, 2005. Management and legal counsel were of the 

opinion that incurrence of a liability was not probable for any of these contingent matters. In some cases, legal matters relate to contractual arrangements GPO has entered into for goods and services procured on behalf of other Federal agencies. 

The costs of administering, litigating, and resolving these actions are borne by the GPO Revolving Fund unless the costs can 

be recovered from another Federal agency.

 GPO recorded an estimated liability of $300,000 for contingencies at September 30, 2004. At the time, management 

and legal counsel were of the opinion that incurrence of a liability was probable for one claim being administratively 

adjudicated. This claim was subsequently settled for a total of $20,000 in fiscal year 2005. The settlement amount included 

attorney’s fees and was paid from the Revolving Fund in fiscal year 2005.

Certain legal matters in which GPO is a named party may be administered and litigated by the U.S. Department of Justice (DOJ) on behalf of GPO, an agency of the U.S. Government. In these cases, amounts paid under any judgment, compromise settlement, or award are funded from the Judgment Fund administered by the U.S. Department of the Treasury (31 

U.S.C. § 1304). The Judgment Fund paid a total of $625,000 and $36,000 on behalf of GPO for the years ended September 

30, 2005 and 2004, respectively. These amounts are not reflected in GPO’s consolidated financial statements.

Contingencies for litigation involving GPO where the risk of loss was reasonably possible were approximately $940,000 

as of September 30, 2005, and approximately $600,000 as of September 30, 2004.

Section III: Consolidated Financial Statements

(Dollars in thousands)

Fiscal Year Warehouse Office Total

2006 $ 1,485 $ 481 $ 1,966

2007 714 249 963

2008 449 122 571

2009 75 116 191

2010 - 119 119

2011 and beyond - 10 10

 Total minimum lease payments $ 2,723 $ 1,097 $ 3,820

GPO held $50.0 million and $65.7 million in customer deposit accounts as of September 30, 2005 and 2004, respectively. 

Federal Government customers had advanced funds of $46.0 million and $61.4 million for printing and binding as of 

September 30, 2005 and 2004, respectively. Additionally, Government and other customers had advanced funds of $4.0 

million and $4.3 million for sales of publications as of September 30, 2005 and 2004, respectively. The restricted funds in 

these deposit accounts will generally be applied to future orders placed by customers, or may be refunded upon request.

GPO defers the recognition of revenues for subscription services that will be provided to customers in the future. 

Customers pay for subscriptions to the Congressional Record, the Federal Register, and other Federal Government publications 

in advance of delivery by the Superintendent of Documents. The revenues from subscriptions will be recognized as these 

periodicals are published and distributed to subscribers.

 GPO also defers the recognition of revenues for unfilled orders of Federal Government publications and other information products. The revenue from these sales will be recognized when the Superintendent of Documents fills the customer’s 

order. GPO will refund the payment to the customer in those instances where the publication is no longer available for sale.

Additionally, the Agency defers the recognition of revenues for advance billings to Federal Government customers. 

Advance billings are occasionally used to finance the cost of producing certain large printing and binding jobs. GPO will 

recognize the revenue as work is completed.

8. Workers’ Compensation Liability

The DOL develops an actuarial estimate of future workers’ compensation benefits for each Federal entity to use for financial 

accounting and reporting each year. The U.S. Department of the Treasury requires Federal entities to use DOL’s estimates for 

intra-governmental accounting of liabilities. The workers’ compensation liability estimate for GPO was about $76.1 million 

as of September 30, 2005, and about $79.6 million as of September 30, 2004. Therefore, the accrued liability for workers’ 

compensation benefits decreased by $3.5 million during the year ended September 30, 2005.

The DOL liability estimate includes the expected payments for death, disability, medical, and miscellaneous costs for 

approved compensation cases, as well as a component for incurred but not reported claims. The liability is determined 

using historical benefit payment patterns related to specific incurred periods to predict the ultimate payments related to 

those periods. The methodology provides for the effects of inflation and adjusts historical payments to current year constant 

dollars by applying wage inflation factors (cost of living adjustments or COLA’s) and medical inflation factors (consumer 

price index medical or CPIM’s) to the calculation of projected benefits. The compensation COLA’s and CPIM’s used in the 

projections for 2005 and 2004 were as follows.

Projected annual payments were discounted to the present value based on the Office of Management and Budget’s 

(OMB) economic assumptions for 10-year Treasury notes and bonds. For 2005, interest rate assumptions were 4.528 percent in Year 1, and 5.020 percent in Year 2 and thereafter. For 2004, interest rate assumptions were 4.883 percent in Year 1, 

and 5.235 percent in Year 2 and thereafter.

Section III: Consolidated Financial Statements

 

COLA CPIM

Fiscal Year 2005 2004 2005 2004

2005 2.20% 2.03% 4.33% 4.14%

2006 3.33% 2.73% 4.09% 3.96%

2007 2.93% 2.40% 4.01% 3.98%

2008 2.40% 2.40% 4.01% 3.99%

2009+ 2.40% 2.40% 4.01% 4.02%

 
34 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 35

During fiscal year 2001, Congress authorized GPO to use $9.5 million from prior year Congressional Printing and Binding Appropriations to cover the cost of congressional work submitted but not completed. These funds were transferred to 

the GPO Revolving Fund. At the end of fiscal year 2005, a balance of about $1.3 million of the $9.5 million was unexpended and available for future expenditures.

During fiscal year 2001, Congress also authorized GPO to use about $3.3 million from prior year Salaries and Expenses 

Appropriations to pay for the printing and distribution of Federal Government publications selected by the depository 

libraries. These funds were transferred to the GPO Revolving Fund. A balance of $1.3 million of the $3.3 million was available for future expenditures as of September 30, 2005.

In fiscal year 2001, Congress appropriated $6 million to replace the antiquated air-conditioning system and install 

modern energy-efficient lighting fixtures in GPO buildings. Installation of the lighting fixtures was completed in fiscal year 

2003. Replacement of the air-conditioning system was completed in fiscal year 2004. GPO expended the entire appropriation amount.

 In fiscal year 2002, Congress appropriated $4 million in Emergency Response Funds to GPO. These funds were provided to improve security and establish backup facilities to ensure continuity of key operations in the event of a National 

emergency affecting the Washington, DC area. Approximately $58,000 of this appropriation was unexpended as of September 30, 2005.

In fiscal year 2004, Congress appropriated $10 million (before rescission of $59,000) to the GPO Revolving Fund for 

Workforce Restructuring at the Agency. The $9,941,000 in available funds was used to finance the majority of costs for the 

RSIP (see Note 16). GPO expended the entire appropriation amount in fiscal year 2004.

In fiscal year 2005, Congress authorized GPO to use $22 million of annual appropriations from prior fiscal years for the 

development of a Digital Content Management System. The $22 million consisted of $14.6 million available from earlier 

Congressional Printing and Binding Appropriations and $7.4 million available from earlier Salaries and Expense Appropriations. These funds were transferred to the GPO Revolving Fund. The entire balance of $22 million was available for future 

expenditures as of September 30, 2005.

In fiscal year 2005, GPO transferred $2,465,000 from the prior year’s unexpended Salaries and Expense Appropriation 

to the GPO Revolving Fund. The funds were advanced to the U.S. Department of the Interior (i.e., GovWorks) for improvements to GPO Access that were ordered in fiscal year 2004, but remain unexpended as of September 30, 2005.

12. Appropriated Funds

 12. A. Available Appropriations

The total net appropriations made available to GPO, after rescissions, for fiscal years 2005 and 2004 were as follows.

Section III: Consolidated Financial Statements

(Dollars in thousands)

 2005 2004

Congressional printing and binding $ 88,090 $ 90,573

Salaries and expenses 31,697 34,253

Retirement separation incentive program - 9,941

 Total available appropriations $ 119,787 $ 134,767 

11. Net Position

 11. A. Cumulative Results of Operations

Retained Earnings (deficit) - Retained earnings (deficit) include the net operating results of the GPO Revolving Fund, since its 

inception, less transfers to other Federal agencies required by statute.

Invested Capital - Invested Capital represents Federal resources directly appropriated to GPO by Congress to invest in GPO 

assets, namely land, buildings, equipment, and capital. 

Below is a summary of the changes to the cumulative results of operations in the fiscal years ended September 30, 2005 

and 2004.

 11. B. Unexpended Appropriations

The following table presents the unexpended appropriation balances from September 30, 2003 through September 30, 

2005 for the appropriations made available to GPO.

As of September 30, 2005, GPO had obligated $33,394,000 of the unexpended appropriations available for Congressional Printing and Binding, and $5,798,000 of the unexpended appropriations available for Salaries and Expenses. This 

$39,192,000 in obligations is based on the estimated cost of open orders as of September 30, 2005. The obligations totaled 

$66,464,000 at September 30, 2004, and were comprised of $48,331,000 in obligations against unexpended appropriations 

for Congressional Printing and Binding and $18,133,000 in obligations against unexpended appropriations for Salaries and 

Expenses.

Section III: Consolidated Financial Statements

(Dollars in thousands)

Retained Earnings 

Cumulative Results of Operations (accumulated deficit) Invested Capital Total

Balance at September 30, 2003 $ (19,562) $ 92,879 $ 73,317

 Net loss for fiscal year ended September 30, 2004 11,259 - 11,259

Balance at September 30, 2004 (8,303) 92,879 84,576 

 Net income for fiscal year ended September 30, 2005 9,623 - 9,623

Balance at September 30, 2005 $ 1,320 $ 92,879 $ 94,199

(Dollars in thousands) 

Revolving Salaries and Congressional 

Fund Expenses Printing and 

Appropriations Appropriation Appropriation Binding Appropriation Total

Unexpended balance at September 30, 2003 $ 10,243 $ 16,780 $ 44,540 $ 71,563 

 Appropriations received in FY 04 9,941 34,253 90,573 134,767 

 Appropriations expended in FY 04 (15,235) (32,900) (86,782) (134,917)

Unexpended balance at September 30, 2004 4,949 18,133 48,331 71,413 

 Appropriations received in FY 05 - 31,697 88,090 119,787 

 Appropriations transfers in FY 05 24,483 (9,868) (14,615) -

 Appropriations expended in FY 05 (2,239) (34,164) (88,412) (124,815)

Unexpended balance at September 30, 2005 $ 27,193 $ 5,798 $ 33,394 $ 66,385 

 
36 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 37

13. 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 also makes payroll deductions from employees for their pension contributions. The U.S. 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. Therefore, GPO is not required to disclose the unfunded pension liability 

and post-employment benefits relative to its employees. GPO also administers a Transit Benefit Program that provides a 

monthly transit subsidy to eligible employees.

Civil Service Retirement System

The CSRS is a defined benefit plan that covers many of the Agency’s employees. Total GPO (employer) contributions to CSRS 

for employees covered under this retirement program were 7.5 percent of basic pay in both fiscal years 2005 and 2004 for 

investigators and law-enforcement officers; and 7 percent of basic pay in both fiscal years for all other employees. GPO’s contributions were $4.8 million and $5.7 million for the fiscal years ended September 30, 2005 and 2004, respectively.

Federal Employees Retirement System

On January 1, 1987, FERS was created pursuant to Public Law 99-335. Using Social Security benefits as a base, FERS 

provides a defined benefit plan (Basic Benefit Plan) and a voluntary defined contribution plan. Employees first hired after 

December 31, 1983 were automatically covered by FERS and Social Security, while employees hired prior to January 1, 1984 

were able to choose between joining this plan or remaining in CSRS. FERS also offers the Federal Government’s Thrift Savings Plan (TSP), which requires GPO to contribute 1 percent of an enrolled employee’s base pay, and to match voluntary 

employee contributions of up to 4 percent of base pay. Employees participating in CSRS may contribute to the TSP, but they 

do not receive any matching contributions from the Agency.

The employer contribution rates to FERS for GPO law enforcement officers were 23.8 percent and 22.7 percent of basic 

pay during fiscal years 2005 and 2004, respectively. The FERS contribution rates for all other employees were 11.2 percent 

and 10.7 percent, respectively. GPO contributions to FERS totaled $8.4 million for fiscal year 2005 and $7.4 million for fiscal year 2004. GPO contributions to TSP for fiscal year 2005 and 2004 were $3.0 million and $2.8 million, respectively.

Social Security System

As an employer, GPO matches employee contributions to the U.S. Social Security Administration (SSA) under the Federal 

Insurance Contributions Act (FICA) for employees in the FERS. GPO contributes matching amounts of 6.2 percent of gross 

pay (up to $90,000 in 2005 and $87,900 in 2004) 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, 2005 and 

2004 totaled $7.2 million and $7.1 million, respectively.

Pension and Other Post-Employment Benefits Provided by Others

OPM is responsible for the management, administration, and funding of certain Government-wide programs that provide 

pension and other post-employment benefits to retired employees of the Federal Government. These OPM administered 

programs provide benefits to former employees of GPO. OPM administered pension programs include the CSRS and the 

FERS. Other OPM administered programs provide health, life, and long-term care insurance benefits to active, inactive, and 

retired employees. Permanent employees of GPO may participate in the Federal Employees Health Benefit Program (FEHBP), Federal Employee Group Life Insurance Program (FEGLIP), and/or Federal Long Term Insurance Program (FLTCIP) 

before and after their retirement from the Agency.

The FASAB’s, Statement of Federal Financial Accounting Standards (SFFAS) No. 5, Accounting for Liabilities of the Federal 

Government, requires agencies that follow Federal accounting standards to recognize their share of the normal cost of pension and other post-employment benefits provided by others, such as OPM. To the extent that normal costs exceed current contributions, the standard requires that an additional expense be recognized by the employing agency for the future 

estimated cost of post-employment benefits not currently funded. SFFAS No. 5 also requires that the estimated expense 

amount be offset by an equal amount of imputed financing. OPM, which is responsible for these programs, represents the 

source of imputed financing for the post-employment benefits.

As allowed by the FASAB, GPO has historically elected to prepare its financial statements on the basis of GAAP for commercial enterprises, and accordingly has reflected only the current cost of these programs in its financial statements since 

OPM is responsible for funding the normal cost component.

Section III: Consolidated Financial Statements

 12. B. Expended Appropriations

The total appropriations expended for GPO programs, operations, and other activities during fiscal years 2005 and 2004 

were as follows.

Section III: Consolidated Financial Statements

(Dollars in thousands)

 2005 2004

Congressional printing and binding:

Congressional Record products $ 24,669 $ 20,452 

 Miscellaneous publications and printing and binding 24,269 19,399

 Hearings 15,906 18,797 

 Bills, resolutions, and amendments 10,489 10,455 

 Details to Congress 2,709 2,918 

 Other 10,370 14,761 

 Total congressional printing and binding 88,412 86,782

Salaries and expenses:

 Depository library distribution 28,866 26,609 

 Cataloging and indexing 3,797 5,408

 By-law distribution 273 87 

 International exchange 1,228 796 

 Total salaries and expenses 34,164 32,900

Revolving fund:

 Appropriation transfers 1,516 3,111

 Homeland security 723 1,405 

 Air conditioning and lighting upgrade - 778 

 Retirement separation incentive program - 9,941 

 Total revolving fund 2,239 15,235

 Total expended appropriations $ 124,815 $ 134,917

Reconciliation of expended appropriations to the 

 consolidated statements of revenues and expenses: 

 Total expended appropriations $ 124,815 $ 134,917 

Eliminations (Intra-agency) (1,684) (3,451)

Consolidated revenues from appropriations $ 123,131 $ 131,466
38 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 39

17. Regional Operation Closings and Consolidations

GPO employed regional operation closings and consolidations to right-size operations and reduce unnecessary operating costs during fiscal years 2004 and 2005. The general downward trend in customer demand for traditional printing has 

reduced operating revenues for all major programs. Accordingly, program managers have been evaluating their programs in 

an effort to identify opportunities to improve the economy, efficiency, and effectiveness of their operations. 

During fiscal year 2004, GPO completed a major warehouse space consolidation that started in fiscal year 2003. This 

management initiative significantly reduced the Agency’s requirements for leased space at a warehouse facility in Laurel, 

MD. The GPO warehouse consisted of two adjacent buildings. Building I and most of Building II were being used by the 

Superintendent of Documents primarily for the Sales of Publications Program. Building II was also being used by Production Operations for the storage of equipment, paper, and supplies. First, Plant Operations closed their paper storage operations in the Laurel facility during fiscal year 2003. Second, the Superintendent of Documents completed a consolidation of 

their warehouse and distribution operations in Building II in fiscal year 2004. GPO accrued one-time termination costs of 

$614,000 for the operating lease for Building I, and $150,000 for site restoration as of September 30, 2003. The lease for the 

vacated building space expired in August 2004. The costs associated with closing Building II were reflected in the operating 

expenses in the statement of revenues and expenses for fiscal year 2003.

During fiscal year 2004, Customer Services closed the last GPO Regional Printing Plant in Denver, CO. As of September 

30, 2004, GPO accrued one-time estimated termination costs of $145,000 for severance pay, $65,000 for building lease 

payments, and $200,000 for leased operating equipment. The costs associated with the closing of the Denver Regional 

Printing Plant are reflected in the operating expenses in the statement of revenues and expenses for fiscal year 2004.

During fiscal year 2005, Customer Services closed GPO’s Los Angeles Regional Printing Procurement Office, St. Louis 

Regional Printing Procurement Office, and New Orleans Satellite Printing Procurement Office. Their customer service responsibilities were assigned to other GPO regional offices. Additionally, the operations of the GPO’s Rapid Response Center 

at the Navy Yard in Washington, DC, were relocated from GSA managed space to GPO owned space at Central Office. GPO 

accrued one-time estimated termination costs of $312,000 for severance pay and $4,000 for lease payments to GSA for the 

vacated building space. The costs associated with the closing of these procurement offices are reflected in the operating 

expenses in the statement of revenues and expenses for fiscal year 2005.

18. Goal Sharing Program

The GPO Goal Sharing Program is an incentive award program designed to reward employees for their efforts to achieve 

agency goals that produce measurable cost savings. Employees may receive 50 percent of the cost savings, or paid time off. 

Fiscal Year 2005 was the first year of this new award program. Estimated costs of $445,000 were accrued for Goal Sharing 

awards during fiscal year 2005. Awards will be given to eligible employees in fiscal year 2006. 

Section III: Consolidated Financial Statements

Transit Benefits

In January 2001, GPO established the Transit Benefit Program to promote the use of public transportation by employees 

for commuting to and from the workplace. This program conserves energy resources and reduces urban congestion. The 

maximum tax-free monthly subsidy to an eligible employee was $105 for 2005 and $100 for 2004. Transit benefits paid to 

employees for the years ended September 30, 2005 and 2004 totaled $858,000 and $875,000, respectively.

14. Concentration of Credit Risk

GPO financial instruments, none of which are held for trading purposes, consist primarily of funds with the U.S. Treasury, 

accounts receivable, and accounts payable at September 30, 2005 and 2004. GPO estimates the fair value of financial instruments at September 30, 2005 and 2004 to be the carrying value.

15. Major Customers

GPO’s primary customers are the Congress and large Federal agencies in the Executive Branch of the Federal Government. In 

fiscal years 2005 and 2004, respectively, revenues from those customers representing 10 percent or more of GPO’s operating 

revenues follow.

16. Retirement Separation Incentive Program

In April 2003, the Public Printer established the Retirement Separation Incentive Program (RSIP) under authority of Public 

Law 105-275 to help restructure the workforce. The RSIP permitted incentive payments of up to $25,000 per employee 

for voluntary separation. This major cost reduction initiative was needed to help stem the trend in operating losses that 

occurred as the demand for traditional printing declined.

The RSIP reduced the workforce by 542 employees and avoided estimated personnel costs and benefits of $38 million 

per year. The estimated cost of the RSIP was $18 million. Congress appropriated $9,941,000 to the GPO Revolving Fund in 

fiscal year 2004 to help finance the workforce restructuring. The RSIP was implemented in two parts generally corresponding to the two fiscal years in which the program was employed. The following chart summarizes the costs and benefits of 

the RSIP.

(Dollars in thousands)

RSIP Employee Separations Estimated One-Time Costs Estimated Annual Savings

Part 1 - FY 2003 312 $ 10,410 $ 21,747

Part 2 - FY 2004 230 7,628 16,271

 Total 542 $ 18,038 $ 38,018

The RSIP costs of $18 million include almost $4.6 million payable to OPM for early retirement contributions required by 

statute. The OPM contributions were unpaid at September 30, 2005.

Section III: Consolidated Financial Statements

(Dollars in thousands)

 2005 2004

Amount Percent Amount Percent

Department of Defense $ 136,858 19.5% $ 112,028 16.2%

Department of Health & Human Services 100,789 14.3% 82,596 11.9%

Congress of the United States 89,841 12.8% 88,841 12.8%

Department of the Treasury 75,903 10.8% 81,645 11.8%
UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 41

Revolving Fund General Fund

Congressional 

Printing Sales of Salaries and Printing Total 

and Binding Publications Expenses and Binding Before 

Operations Operations Appropriation Appropriation Eliminations Eliminations Consolidated

CURRENT ASSETS 

 Funds with the U.S. Treasury $ 158,039 $ 7,286 $ 7,992 $ 33,394 $ 206,711 $ - $ 206,711 

 Accounts receivable, net 195,309 1,066 300 - 196,675 (92,574) 104,101 

 Inventories: 

 Publications for sale, net - 2,852 - - 2,852 - 2,852

 Paper 2,297 - - - 2,297 - 2,297 

 Materials and supplies, net 3,905 - - - 3,905 - 3,905 

 Total inventories, net 6,202 2,852 9,054 9,054 

 Prepaid expenses 3,313 - - - 3,313 - 3,313 

 Total current assets 362,863 11,204 8,292 33,394 415,753 (92,574) 323,179 

PROPERTY, PLANT, AND EQUIPMENT 

 Land 9,971 - - - 9,971 - 9,971 

 Buildings and improvements 75,997 - - - 75,997 - 75,997

 Plant machinery and equipment 73,448 - - - 73,448 - 73,448 

 Computers and computer software 29,247 - - - 29,247 - 29,247 

 Furniture and fixtures 6,156 - - - 6,156 - 6,156 

 Motor vehicles 633 - - - 633 - 633 

 Leasehold improvements 946 - - - 946 - 946

 Construction and software in process 885 - - - 885 - 885

197,283 - - - 197,283 - 197,283

 Less: Accumulated depreciation and 

 amortization (141,111) - - - (141,111) - (141,111)

 Property, plant, and equipment, net 56,172 - - - 56,172 - 56,172 

 Total assets $ 419,035 $ 11,204 $ 8,292 $ 33,394 $ 471,925 $ (92,574) $ 379,351

Consolidating Balance Sheet by Fund Type

As of September 30, 2005

(Dollars in thousands)

(Unaudited)

Assets

See accompanying independent auditors’ report.

SECTION IV

Consolidating 

and 

Supplemental 

Schedules

(Unaudited)

40 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004
42 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 43

Section IV: Consolidating and Supplemental Schedules (unaudited)

Revolving Fund General Fund

Congressional 

Printing Sales of Salaries and Printing Total 

and Binding Publications Expenses and Binding Before 

Operations Operations Appropriation Appropriation Eliminations Eliminations Consolidated

OPERATING REVENUES 

 Printing and Binding $ 657,328 $ - $ - $ - $657,328 $(105,205) $ 552,123 

 Sales of Publications - 22,560 - - 22,560 - 22,560

 Appropriations 2,239 - 34,164 88,412 124,815 (1,684) 123,131 

 Reimbursements - 4,851 - - 4,851 - 4,851 

 Total operating revenues 659,567 27,411 34,164 88,412 809,554 (106,889) 702,665 

OPERATING EXPENSES 

 Printing and reproduction 422,959 249 10,275 88,412 521,895 (105,949) 415,946 

 Personnel compensation and benefits 164,553 14,891 17,847 - 197,291 (572) 196,719 

 Supplies and materials 30,421 669 848 - 31,938 (38) 31,900 

 Rents, communications, and utilities 11,968 6,230 1,209 - 19,407 (89) 19,318 

 Publications sold - 7,014 - - 7,014 - 7,014 

 Depreciation and amortization 7,323 247 90 - 7,660 - 7,660

 Other services 9,955 631 2,640 - 13,226 (241) 12,985 

 Surplus publications - 1,962 - - 1,962 - 1,962 

 Travel and transportation 1,298 466 1,255 - 3,019 - 3,019 

 Total operating expenses 648,477 32,359 34,164 88,412 803,412 (106,889) 696,523 

 Income (loss) before 

 other operating expenses 11,090 (4,948) - - 6,142 - 6,142 

OTHER OPERATING EXPENSES 

 Decrease in workers’ 

 compensation liabilities 3,481 - - - 3,481 - 3,481

 Net Income (loss) $ 14,571 $ (4,948) $ - $ - $ 9,623 $ - $ 9,623

Consolidating Schedule of Revenues and Expenses by Fund Type

For the Fiscal Year Ended September 30, 2005

(Dollars in thousands)

(Unaudited)

See accompanying independent auditors’ report.

Section IV: Consolidating and Supplemental Schedules (unaudited)

Consolidating Balance Sheet by Fund Type

As of September 30, 2005

(Dollars in thousands)

(Unaudited)

Revolving Fund General Fund

Congressional 

Printing Sales of Salaries and Printing Total 

and Binding Publications Expenses and Binding Before 

Operations Operations Appropriation Appropriation Eliminations Eliminations Consolidated

CURRENT LIABILITIES 

 Accounts payable and accrued expenses $ 78,199 $ 89,745 $ 2,494 $ - $ 170,438 $(92,574) $ 77,864 

 Deferred revenue 46,708 8,034 - - 54,742 - 54,742

 Accrued annual leave 10,039 - - - 10,039 - 10,039

 Total current liabilities 134,946 97,779 2,494 - 235,219 (92,574) 142,645

OTHER LIABILITIES 

 Workers’ compensation liability 76,122 - - - 76,122 - 76,122 

 Total liabilities 211,068 97,779 2,494 - 311,341 (92,574) 218,767

NET POSITION 

 Cumulative results of operations: 

 Retained earnings (accumulated deficit) 90,484 (89,164) - - 1,320 - 1,320 

 Invested capital 90,290 2,589 - - 92,879 - 92,879

 Unexpended appropriations 27,193 - 5,798 33,394 66,385 - 66,385 

 TOTAL net position (deficit) 207,967 (86,575) 5,798 33,394 160,584 - 160,584

 Total liabilities and total net position $ 419,035 $ 11,204 $ 8,292 $ 33,394 $ 471,925 $(92,574) $379,351

Liabilities and Net Position

See accompanying independent auditors’ report.
44 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 45

Section IV: Consolidating and Supplemental Schedules (unaudited)

Supplemental Schedule of Appropriated Funds

For the Fiscal Years, Ended September 30, 2005 and 2004

(Dollars in thousands)

(Unaudited)

Salaries Congressional 

Revolving Fund and Expenses Printing and Binding Total 

Appropriation Appropriation Appropriation 2005 2004

Unexpended Appropriations, 

 beginning of year (on cash basis) $ 4,949 $ 19,978 $ 48,331 $ 73,258 $ 80,062 

Funds Provided: 

 Appropriations - 31,697 88,090 119,787 134,767 

 Total funds available 4,949 51,675 136,421 193,045 214,829 

Funds Applied: 

 Obligated appropriations- 

 Current year - 24,956 64,956 89,912 91,880 

 Prior years 2,239 8,859 23,456 34,554 49,691 

 Total funds applied 2,239 33,815 88,412 124,466 141,571 

Appropriation Transfers 24,483 (9,868) (14,615) - -

Unexpended Appropriations, 

 end of year (on cash basis) 27,193 7,992 33,394 68,579 73,258 

Adjustments: 

 Intra-agency accounts receivable - 300 - 300 23 

 Intra-agency accounts payable - (2,494) - (2,494) (1,868)

Unexpended Appropriations, 

 end of year (on accrual basis) $ 27,193 $ 5,798 $ 33,394 $ 66,386 $ 71,413 

See accompanying independent auditors’ report.

Section IV: Consolidating and Supplemental Schedules (unaudited)

Revolving Fund General Fund

Congressional 

Printing Sales of Salaries and Printing Total 

and Binding Publications Expenses and Binding Before 

Operations Operations Appropriation Appropriation Eliminations Eliminations Consolidated

CASH FLOWS FROM 

 OPERATING ACTIVITIES

 Net Income (loss) $ 14,570 $ (4,947) $ - $ - $ 9,623 $ - $ 9,623

 Adjustments to reconcile net income (loss) to net 

 cash provided by (used in) operating activities: 

 Depreciation and amortization 7,660 - - - 7,660 - 7,660 

 Gain on disposal of property, plant, 

 and equipment (24) - - - (24) - (24)

 Changes in assets and liabilities: 

 (Increase) decrease in assets- 

 Accounts receivable 32,279 (340) (276) - 31,663 8,826 40,488 

 Inventories (185) 29 - - (156) - (156)

 Prepaid expenses (2,881) - - - (2,881) - (2,881)

 Increase (decrease) in liabilities- 

 Accounts payable and accrued expenses (10,175) 7,691 626 - (1,859) (8,826) (10,684)

 Deferred revenue (16,845) (2,116) - - (18,961) - (18,961)

 Accrued annual leave 745 - - - 745 - 745 

 Workers’ compensation liability (3,481) - - - (3,481) - (3,481)

 Total adjustments 7,093 5,264 350 - 12,706 - 12,706

 Net cash provided by operating 

 activities 21,663 317 350 - 22,329 - 22,329

CASH FLOWS FROM INVESTING ACTIVITIES 

 Capital expenditures (4,758) - - - (4,758) - (4,758)

 Proceeds from sale of property, plant, and equipment 150 - - - 150 - 150

 Net cash used in investing activities (4,608) - - - (4,608) - (4,608)

CASH FLOWS FROM FINANCING ACTIVITIES 

 Increase (decrease) in unexpended appropriations 22,244 - (12,335) (14,937) (5,028) - (5,028)

 Net cash provided by (used in) 

 financing activities 22,244 - (12,335) (14,937) (5,028) - (5,028)

 Net increase (decrease) in fund 

 balance with the U.S. Treasury 39,299 317 (11,985) (14,937) 12,693 - 12,693

Fund balance with the U.S. Treasury, beginning of year 118,740 6,969 19,977 48,331 194,018 - 194,018

Fund balance with the U.S. Treasury, end of year $ 158,039 $ 7,286 $ 7,992 $ 33,394 $ 206,711 $ - $206,711

Consolidating Schedule of Cash Flow by Fund Type

For the Fiscal Year Ended September 30, 2005

(Dollars in thousands)

(Unaudited)

See accompanying independent auditors’ report.
46 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 47

Section IV: Consolidating and Supplemental Schedules (unaudited)

Printing and Binding Sales of Publications Total Revolving Fund Total Revolving Fund

Operations Operations 2005 2004 

2005 2004 2005 2004 Before Before 

ASSETS Eliminations Eliminations Consolidated Eliminations Eliminations Consolidated

CURRENT ASSETS 

 Fund balance with the U.S. Treasury $ 158,039 $ 118,741 $ 7,286 $ 6,968 $ 165,325 $ - $ 165,325 $ 125,709 $ - $ 125,709 

 Accounts receivable, net 195,309 227,587 1,066 726 196,375 (92,574) 103,801 228,313 (83,748) 144,565 

 Inventories, net 6,202 6,017 2,852 2,881 9,054 - 9,054 8,898 - 8,898 

 Prepaid expenses 3,313 432 - - 3,313 - 3,313 432 - 432 

 Total current assets 362,863 352,777 11,204 10,575 374,067 (92,574) 281,493 363,352 (83,748) 279,604 

PROPERTY, PLANT, AND EQUIPMENT 

 Land 9,971 9,971 - - 9,971 - 9,971 9,971 - 9,971 

 Buildings and improvements 75,997 75,617 - - 75,997 - 75,997 75,617 - 75,617 

 Plant machinery and equipment 73,448 74,976 - - 73,448 - 73,448 74,976 - 74,976 

 Computers and computer software 29,247 29,814 - - 29,247 - 29,247 29,814 - 29,814 

 Furniture and fixtures 6,156 6,015 - - 6,156 - 6,156 6,015 - 6,015 

 Motor vehicles 633 740 - - 633 - 633 740 - 740 

 Leasehold improvements 946 1,030 - - 946 - 946 1,030 - 1,030 

 Construction and software in process 885 1,020 - - 885 - 885 1,020 - 1,020 

 197,283 199,183 - - 197,283 - 197,283 199,183 - 199,183 

 Less: Accumulated depreciation and 

 amortization (141,111) (139,985) - - (141,111) - (141,111) (139,985) - (139,985)

 Property, plant, and equipment, net 56,172 59,198 - - 56,172 - 59,172 59,198 - 59,198 

 Total assets $ 419,035 $ 411,975 $ 11,204 $ 10,575 $ 430,239 $ (92,574) $ 337,665 $ 422,550 $ (83,748) $ 338,802 

See accompanying independent auditors’ report.

Section IV: Consolidating and Supplemental Schedules (unaudited)

Supplemental Schedule of Balance Sheets for Revolving Fund

As of September 30, 2005 and 2004

(Dollars in thousands)

(Unaudited)
48 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 49

Printing and Binding Sales of Publications Total Revolving Fund Total Revolving Fund

Operations Operations 2005 2004 

2005 2004 2005 2004 Before Before 

LIABILITIES AND NET POSITION Eliminations Eliminations Consolidated Eliminations Eliminations Consolidated

CURRENT LIABILITIES 

 Accounts payable and accrued expenses $ 78,199 $ 88,375 $ 89,745 $ 82,051 $ 167,944 $ (92,574) $ 75,370 $ 170,426 $ (83,748) $ 86,678 

 Deferred revenue 46,708 63,552 8,034 10,151 54,742 - 54,742 73,703 - 73,703 

 Accrued annual leave 10,039 9,294 - - 10,039 - 10,039 9,294 - 9,294 

 Total current liabilities 134,946 161,221 97,779 92,202 232,725 (92,574) 140,151 253,423 (83,748) 169,675 

OTHER LIABILITIES 

 Workers’ compensation liability 76,122 79,603 - - 76,122 - 76,122 79,603 - 79,603 

 Total other liabilities 76,122 79,603 - - 76,122 - 76,122 79,603 - 79,603 

 Total liabilities 211,068 240,824 97,779 92,202 308,847 (92,574) 216,273 333,026 (83,748) 249,278 

NET POSITION 

 Cumulative results of operations: 

 Retained earnings (accumulated deficit) 90,484 75,913 (89,164) (84,216) 1,320 - 1,320 (8,303) - (8,303)

 Invested capital 90,290 90,290 2,589 2,589 92,879 - 92,879 92,879 - 92,879 

 Unexpended appropriations 27,193 4,948 - - 27,193 - 27,193 4,948 - 4,948 

 Total net position 207,967 171,151 (86,575) (81,627) 121,392 - 121,392 89,524 - 89,524 

 Total liabilities and total net position $ 419,035 $ 411,975 $ 11,204 $ 10,575 $ 430,239 $ (92,574) $ 337,665 $ 422,550 $ (83,748) $ 338,802 

Section IV: Consolidating and Supplemental Schedules (unaudited)

See accompanying independent auditors’ report.

Supplemental Schedule of Balance Sheets for Revolving Fund

As of September 30, 2005 and 2004

(Dollars in thousands)

(Unaudited)

Section IV: Consolidating and Supplemental Schedules (unaudited)
50 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 51

Section IV: Consolidating and Supplemental Schedules (unaudited)

Printing Information Congressional 

and Binding Dissemination Printing Total GPO 

Operations Operations and Binding Other Operations Before Eliminations Eliminations Total GPO

 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004

REVENUES: 

 Printing and binding $ 644,380 $ 623,042 $ - $ - $ - $ - $ 3,285 $ 1,270 $ 647,665 $ 624,312 $ (105,205) $ (103,693) $ 542,460 $ 520,619 

 Sales of blank paper 8,963 9,813 - - - - - - 8,963 9,813 - - 8,963 9,813 

 Sales of waste and scrap 700 810 - - - - - - 700 810 - - 700 810

 Sales of publications - - 22,560 24,024 - - - - 22,560 24,024 - - 22,560 24,024 

 Appropriations 1,516 3,111 34,164 32,900 88,412 86,782 723 12,124 124,815 134,917 (1,684) (3,451) 123,131 131,466 

 Reimbursements - - 4,851 5,022 - - - - 4,851 5,022 - - 4,851 5,022 

 Total revenues 655,559 636,776 61,575 61,946 88,412 86,782 4,008 13,394 809,554 798,898 (106,889) (107,144) 702,665 691,754

EXPENSES: 

 Printing and reproduction 422,959 406,638 10,524 11,848 88,412 86,782 - - 521,895 505,268 (105,949) (104,776) 415,946 400,492 

 Personnel compensation 

 and benefit 162,425 161,872 32,738 36,686 - - 2,128 667 197,291 199,225 (572) (1,579) 196,719 197,646 

 Retirement separation 

 incentive program - - - 354 - - - 7,274 - 7,628 - - - 7,628 

 Supplies and materials 30,088 30,555 1,517 1,635 - - 333 276 31,938 32,466 (38) (99) 31,900 32,367 

 Rents, communications, 

 and utilities 11,479 11,660 7,439 9,852 - - 489 799 19,407 22,311 (89) (226) 19,318 22,085 

 Publications sold - - 7,014 6,146 - - - - 7,014 6,146 - - 7,014 6,146 

 Depreciation and amortization 7,276 7,083 337 497 - - 47 42 7,660 7,622 - - 7,660 7,622 

 Other services 9,708 9,421 3,271 2,473 - - 247 474 13,226 12,368 (241) (464) 12,985 11,904

 Surplus publications - - 1,962 108 - - - - 1,962 108 - - 1,962 108 

 Travel and transportation 1,296 2,303 1,721 2,118 - - 2 5 3,019 4,426 - - 3,019 4,426

 Total expenses 645,231 629,532 66,523 71,717 88,412 86,782 3,246 9,537 803,412 797,568 (106,889) (107,144) 696,523 690,424 

INCOME (LOSS) before

Other Operating Expenses $ 10,328 $ 7,244 $ (4,948) $ (9,771) $ - $ - $ 762 $ 3,857 $ 6,142 $ 1,330 $ - $ - $ 6,142 $ 1,330

See accompanying independent auditors’ report.

Section IV: Consolidating and Supplemental Schedules (unaudited)

Consolidating Schedule of Income (Loss) 

before Other Operating Expenses by Major Program

For the Fiscal Years, Ended September 30, 2005 and 2004

(Dollars in thousands)

(Unaudited)
52 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 53

Section IV: Consolidating and Supplemental Schedules (unaudited)

Total In-House Printing Customer Services Total Printing and Binding Operations 

 

Percent of Percent of Percent of Percent of Percent of Percent of

2005 2004 2005 2004 2005 Revenues 2004 Revenues 2005 Revenues 2004 Revenues 2005 Revenues 2004 Revenues

REVENUES: 

 Printing and binding $ 169,392 $ 173,967 $ 1,597 $ - $ 170,989 94 $173,967 93 $ 473,391 100 $ 449,075 100 $ 644,380 98 $ 623,042 98 

 Sales of blank paper 8,963 9,813 - - 8,963 5 9,813 5 - - - - 8,963 1 9,813 1 

 Sales of waste and scrap 700 810 - - 700 - 810 - - - - - 700 - 810 - 

 Appropriations 1,516 3,111 - - 1,516 1 3,111 2 - - - - 1,516 1 3,111 1

 Total revenues 180,571 187,701 1,597 - 182,168 100 187,701 100 473,391 100 449,075 100 655,559 100 636,776 100 

EXPENSES:

 Printing and reproduction - - - - - - - - 422,959 90 406,638 91 422,959 64 406,638 65 

 Personnel compensation 

 and benefits 109,749 129,709 1,368 - 111,117 61 129,709 69 51,308 11 32,163 7 162,425 25 161,872 25 

 Supplies and materials 27,690 29,543 686 - 28,376 16 29,543 16 1,712 - 1,012 - 30,088 5 30,555 5 

 Rents, communications, and 

 utilities 5,812 6,628 (130) - 5,682 3 6,628 4 5,797 1 5,032 1 11,479 2 11,660 2 

 Depreciation and amortization 6,142 6,205 11 - 6,153 3 6,205 3 1,123 - 878 - 7,276 1 7,083 1 

 Other services 7,160 6,023 (127) - 7,033 4 6,023 3 2,675 1 3,398 1 9,708 1 9,421 1 

 Travel and transportation 270 1,295 - - 270 - 1,295 1 1,026 - 1,008 - 1,296 - 2,303 - 

 Total expenses 156,823 179,403 1,808 - 158,631 87 179,403 96 486,600 103 450,129 100 645,231 98 629,532 99 

INCOME (LOSS) before

Other Operating Expenses $ 23,748 $ 8,298 $ (211) $ - $ 23,537 13 $ 8,298 4 $ (13,209) (3) $ (1,054) - $ 10,328 2 $ 7,244 1

See accompanying independent auditors’ report.

Section IV: Consolidating and Supplemental Schedules (unaudited)

Supplemental Schedule of Income (Loss) 

before Other Operating Expenses for Printing and Binding Operations

For the Fiscal Years, Ended September 30, 2005 and 2004

(Dollars in thousands)

(Unaudited)

 Plant Printing Operations Digital Media
54 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 UNITED STATES GOVERNMENT PRINTING OFFICE Financial Year in Review — Fiscal Years 2005 and 2004 55

Section IV: Consolidating and Supplemental Schedules (unaudited)

Sales of Publications Program Agency Distribution Services Salaries and Expenses Programs Total Information Dissemination

Percent of Percent of Percent of Percent of Percent of Percent of Percent of Percent of

2005 Revenues 2004 Revenues 2005 Revenues 2004 Revenues 2005 Revenues 2004 Revenues 2005 Revenues 2004 Revenues

REVENUES: 

 Sales of publications $ 22,560 100 $ 24,024 100 $ - - $ - - $ - - $ - - $ 22,560 37 $ 24,024 49 

 Appropriations - - - - - - - - 34,164 100 32,900 100 34,164 55 32,900 44 

 Reimbursements - - - - 4,851 100 5,022 100 - - - - 4,851 8 5,022 7 

 Total revenues 22,560 100 24,024 100 4,851 100 5,022 100 34,164 100 32,900 100 61,575 100 61,946 100 

EXPENSES: 

 Printing and reproduction 99 - 80 - 150 3 116 2 10,275 30 11,652 35 10,524 18 11,848 19 

 Personnel compensation and 

 benefits 11,108 49 17,429 74 3,783 78 3,448 68 17,847 51 15,809 48 32,738 54 36,686 59 

 Retirement separation 

 incentive program - - - - - - - - - - 354 1 - - 354 1 

 Supplies and materials 532 2 579 2 137 3 149 3 848 2 907 3 1,517 2 1,635 3 

 Rents, communications, and 

 utilities 4,742 21 7,076 29 1,488 31 1,344 27 1,209 4 1,432 4 7,439 12 9,852 16 

 Publications sold 7,014 31 6,146 26 - - - - - - - - 7,014 11 6,146 10 

 Depreciation and amortization 177 1 252 1 70 1 64 1 90 - 181 1 337 - 497 1 

 Other services 408 2 1,044 4 223 5 189 4 2,640 8 1,240 4 3,271 5 2,473 4 

 Surplus publications 1,962 9 108 - - - - - - - - - 1,962 3 108 - 

 Travel and transportation 372 2 509 2 94 2 284 6 1,255 5 1,325 4 1,721 3 2,118 3 

 Total expenses 26,414 117 33,223 138 5,945 123 5,594 111 34,164 100 32,900 100 66,523 108 71,717 116 

INCOME (LOSS) before

Other Operating Expenses $ (3,854) (17) $ (9,199) (38) $ (1,094) $ (23) $ (572) (11) $ - - $ - - $ (4,948) (8) $ (9,771) (16)

See accompanying independent auditors’ report.

Section IV: Consolidating and Supplemental Schedules (unaudited)

Supplemental Schedule of Income (Loss) 

before Other Operating Expenses for Information Dissemination

For the Fiscal Years, Ended September 30, 2005 and 2004

(Dollars in thousands)

(Unaudited)