1

U.S. Government Printin O f fic

2009 Ann a Re p 

50% Black + 100% Black

PMS 540 + 100% Black

White (version for reverse)

White (version for reverse)
The men and women of the 

U.S. Government Printing Office 

(GPO) have been fulfilling their 

historic mission of Keeping 

America Informed on the 

three branches of the Federal 

Government for nearly 150 years. 

GPO employees have embraced 

the various technological changes 

and methods that help to 

provide Americans an open and 

transparent view of the workings 

of their Government since the 

Presidency of Abraham Lincoln. 

Now, as another President from 

Illinois renews the call for the 

Government to be as open and 

transparent as possible with its 

citizens, GPO employees are once 

again leading American citizens in 

this goal.

In GPO’s 2009 Annual Report, 

Gateway to the Documents of 

our Democracy, we will 

show how GPO has provided 

openness and transparency to 

the documents of our democracy 

since March 4, 1861. GPO is 

developing new methods in 

helping the Government answer 

President Barack Obama’s call 

to be open and transparent with 

its citizens. 

Several officials visited GPO 

in 2009 to learn about these new 

methods and the work that the 

men and women of GPO do 

every day for our Nation. These 

visitors included the Clerk for the 

U.S. House of Representatives, 

Secretary of the Senate, Office 

of Management and Budget 

Director, and the Director of the 

Federal Register. The Speaker of 

the U.S. House of Representatives 

also paid tribute to a GPO 

initiative.
M E S S A G E omth

As I conclude my second full year as Public Printer of the 

United States, it has been an honor to work with GPO’s 

hardworking and dedicated employees in making this 

venerable agency thrive. For the Government Printing 

Office (GPO), FY 2009 began with a flood of activity 

associated with completing the necessary printing, binding, 

and related work supporting the impending transition 

of Administrations. For the Presidential inaugural, GPO 

completed a broad variety of printed materials, which for 

the first time included the production of secure credentials 

for law enforcement personnel involved with the event. 

We issued the quadrennially popular Plum Book, 

known officially as Policy and Supporting Positions, 

which was printed on behalf of the Senate Committee 

on Homeland Security and Governmental Affairs, and 

following the inauguration GPO printed the official 

portraits of President Obama and Vice President Biden for 

placement by the General Services Administration (GSA)

in more than 7,000 Federal Government installations 

across the globe. Rounding out this effort, during the year 

GPO produced the Congressional Directory for the 111th 

Congress, issued by the Joint Committee on Printing, which 

includes a comprehensive directory to both the Senate 

and House of Representatives as well as the officials of the 

incoming Administration.

Throughout the year, GPO worked to fulfill its pledge 

of support for President Obama’s Open Government 

Initiative. In February we launched GPO’s Federal 

Digital System (FDsys, at www.fdsys.gov), a world-class 

information management system developed to authenticate, 

preserve, and provide permanent public access to 

official Federal publications. I also offered a number of 

suggestions to the Administration to help implement the 

President’s initiative, including providing public documents 

housed on FDsys in XML format to facilitate a greater 

range of user options. In partnership with the National 

Archives and Records Administration’s Office of the Federal 

Register, we carried out this suggestion by offering the 

Federal Register in XML, and by the end of the year we 

were poised to follow up making the Code of Federal 

Regulations available in XML as well.

In addition to migrating the databases housed on 

GPO Access to FDsys, GPO worked with staff from the 

Library of Congress, the Congressional Research Service, 

the Secretary of the Senate, and the Clerk of the House 

to develop a report on bulk data downloads of legislative Robert C. Tapella

Public Printer of the United States

information. During the year we also worked toward a 

plan for digitizing printed documents within the Federal 

depository library collection for online public access.

To fully support the commitment to environmental 

sustainability announced by the President and Congress, 

GPO is developing its future based on environmental 

sustainability. This means more than just going green: 

it means expanding our digital operations and making 

changes in paper, inks, equipment configurations, and 

energy sources so that we can support our customers 

in Congress, Federal agencies, and the public in a more 

efficient and environmentally responsible way.

During the year, with the help of funding provided 

to the GSA through the American Recovery and 

Reinvestment Act, we upgraded GPO’s vehicle fleet with 

more fuel efficient and environmentally friendly vehicles. 

We increased the post consumer waste content of the 

newsprint we use to print the Congressional Record

and the Federal Register to 100 percent. I want to thank 

Speaker of the House Nancy Pelosi for recognizing GPO’s 

commitment to sustainable environmental stewardship. 

We also began an evaluation of how digital printing 

technologies can help us meet our production needs in the 

21st century.

GPO continued making progress in providing new 

options to meet the Government’s secure credential needs. 

Along with the credentials supporting the presidential 

inauguration, we designed, printed, encoded, personalized, 

and shipped more than 700,000 Trusted Traveler Program 

cards (NEXUS, SENTRI, and FAST) for the Department 

of Homeland Security’s Customs and Border Protection, 

and developed additional cards to support the Western 

Hemisphere Travel Initiative, the Medicare program, and 

other ID programs. Our smart card production operation is 

a rapidly growing segment of GPO’s secure and intelligent 

documents business line, building on the expertise 

and capabilities we bring to our longstanding passport 

production operations.

Historically, the events dominating Congress and the 

Administration are reflected in the work produced by 

GPO, and 2009 was no exception. During the year, GPO 

recorded the debates and printed the legislation resulting 

in the American Recovery and Reinvestment Act, as well 

as the documents associated with consideration of health 

care reform and the various appropriations bills and other 

business before Congress. GPO worked through the year 

to produce the documents required for the upcoming 

decennial census, and also produced thousands of traveler 

cards providing information on the H1N1 (swine flu) virus 

on behalf of the Centers for Disease Control. 

To help the public find access to these and other 

documents, we created a new email alert system that 

attracted thousands of subscribers, and we upgraded GPO’s 

online Catalog of Government Publications to help users 

find documents in nearby depository libraries. We also 

carried on a longstanding GPO responsibility by issuing a 

new edition of the GPO Style Manual, a publication that 

has served as a guide to the form and style of Federal 

Government printing for more than a century.

I’m pleased to report that an audit of our financial 

reports and systems for FY 2009 conducted by KPMG LLP 

resulted in an “unqualified,” or clean, opinion for GPO. 

GPO completed the year with income before other noncash operating expenses of $1.2 million on total revenues 

of $934.1 million. Other Operating Expenses of $5.3 million 

were comprised of an increase in GPO’s long-term workers’ 

compensation actuarial liability of $4.2 million and $1.2 

million for a capitalized software impairment loss. 

The change in business from the previous year was 

attributable primarily to a reduction in overall passport 

production operations. The adjustment to workers’ 

compensation liability and the capitalized impairment 

loss did not place GPO in an anti-deficiency position or 

require additional appropriations, as those were non-cash 

charges, and the state of GPO’s finances remains sound, 

as the result of increased new business opportunities in 

the secure and intelligent documents arena and continuing 

efficiencies achieved through the sustained transformation 

GPO has undergone over the past decade.

As the pages of this Annual Report show, GPO made 

substantial progress forward in 2009. As the year drew to 

a close, we began developing plans for the observance 

of our 150th anniversary, dating to the enactment of 

the congressional resolution of June 23, 1860, which 

established the Government Printing Office, and to March 

4, 1861, the day we first opened for business. I’m proud 

of what all of us at GPO were able to achieve in 2009, 

and I look forward to celebrating a century and a half of 

accomplishment in the coming year.
4 5

The year 2009 began with the inauguration 

of President Barack Obama as the 44th President 

of the United States. GPO played an important 

role in this inauguration by designing and printing 

the official materials for the Joint Congressional 

Committee on Inaugural Ceremonies (JCCIC) 

for the President’s Inauguration. GPO’s Creative 

Services’ Chris Dunham was the sole designer for 

those official Inaugural materials.

One of the first speeches given by the newly 

sworn in President focused on the importance of 

our Government to provide the American people 

open and transparent methods to the workings of 

our democracy.

“The way to make Government 

responsible is to hold it accountable. 

And the way to make Government 

accountable is to make it transparent 

so that the American people can know 

exactly what decisions are being made, 

how they’re being made, and whether 

their interests are being well served.” 

President Barack Obama 

(Remarks to White House Staff January 21, 2009)

Public Printer Bob Tapella sent a letter to 

President Obama outlining the ways GPO had 

served as a gateway to the documents of our 

democracy for nearly the 150 years of its history 

and how GPO could help with the President’s 

initiative.

The goals and actions GPO is prepared to take:

n Position GPO’s Federal Digital System (FDsys) 

as the official repository for Federal Government 

publications;

n Enable and support Web2.0 functionality 

through FDsys to support comments on pending 

legislation;

n Establish a demonstration project to apply 

Web2.0 features to rulemaking documents;

n Participate in and lead efforts to standardize 

electronic publishing formats; and

n Link the White House Web site to FDsys for 

public searches of Government documents.

In 2009, GPO added another chapter in its storied history 

of being open and transparent to the workings of the 

Federal Government. After several years of research 

and development, the agency launched GPO’s Federal 

Digital System (FDsys), www.fdsys.gov. FDsys will be the 

replacement for GPOAccess.

This system gives the American people a one-stop 

site to authentic, published Government information. 

FDsys allows GPO to receive information from Federal 

agencies in all three branches of Government and create 

a repository for permanent, public access. FDsys offers 

incredible search capabilities for users such as: searching 

by Congressional Committee, a Member of Congress, 

keyword or date.

The Office of the Federal Register’s (OFR) new 

publication, Daily Compilation of Presidential Documents, 

was specifically engineered for FDsys. This publication 

contains information released by the White House Press 

Office regarding orders, statements and remarks made 

by President Obama. This daily online publication 

replaced the printed Weekly Compilation of Presidential 

Documents.

n Budget of the United States 

Government 

n Code of Federal Regulations 

n Compilation of Presidential 

Documents 

n Congressional Bills 

n Congressional Calendars 

n Congressional Committee Prints 

n Congressional Directory 

n Congressional Documents 

n Congressional Hearings 

Pr

to 

Additionally, GPO worked with The White House 

and OFR to make Government information more readily 

available and usable for the public. GPO converted 

the text of the Federal Register (2000–2009) into XML 

(extensible markup language) and placed it on FDsys, 

data.gov and the Federal Register’s Web site. This change 

supplements the official publishing formats with XML, a 

form of text that can be manipulated in virtually limitless 

ways with digital applications. For example, people 

who want to know about the workings of the executive 

branch of the Federal Government no longer need to sift 

through the Federal Register in its traditional Departmentby-Department and Agency-by-Agency format. This 

new format will allow applications to be developed that 

will support user needs and can rearrange the Federal 

Register’s contents in personalized ways to match their 

particular interests. This project is another example 

of FDsys and GPO embracing President Obama’s 

challenge to Federal agencies to create a more open and 

transparent Government.

FDsys received numerous accolades in its first few 

months of operation. Government Computer News named 

n Congressional Record 

(Bound) 

n Congressional Record 

(Daily) 

n Congressional Record Index 

(Daily) 

n Congressional Reports 

n Economic Indicators 

n Economic Report of the President 

n Federal Register 

n GAO Reports and Comptroller 

General Decisions 

n Government Manual 

n History of Bills 

n List of CFR Sections Affected 

n Precedents of the U.S. House of 

Representatives

n Public and Private Laws 

n Public Papers of the Presidents 

of the United States 

n Statutes at Large

n XML Bulk Data Download of 

Code of Federal Regulations

n XML Bulk Data Download 

of Federal Register

Coction
6

FDsys one of the “10 great Government Web sites.” Other 

recognized sites include: the Office of Management 

and Budget’s Data.gov, the Department of State’s 

public site and the U.S. Postal Service’s public site. The 

publication named these Government Web sites the best 

for providing more interactive tools for the public and 

aiding the Obama Administration in their goal to increase 

Government transparency. Government Computer 

News said these sites “embrace the Web’s full potential, 

and they can offer ideas for other agencies seeking to 

improve their own sites.”

FDsys also received a Hermes Creative Award 

from the Association of Marketing and Communication 

Professionals for the Public Relations Plan for the launch 

of the system.

In addition to using the most current tools and 

practices in providing an electronic format for an 

open and transparent view on the documents of our 

democracy, employees provided Government documents 

in printed form since the creation of the agency. GPO 

continues its mission of putting ink to paper of some of 

the nation’s most important documents. GPO employees 

set the text for the Emancipation Proclamation, the 

declarations of war sought by Woodrow Wilson and 

Franklin Roosevelt, the civil rights legislation of the 

1960s and the current legislative initiatives of the Obama 

Administration. GPO’s Plant and Official Journals of 

Government business units are responsible for print 

services in support of the U.S. Congress, Office of the 

Federal Register and other partners within the U.S. 

Federal Government. Employees print the Congressional 

Record, House and Senate Calendars, Congressional 

Reports, Bills and Hearings, the Federal Register and the 

Code of Federal Regulations. 

Public Printer Bob Tapella set a goal in January 2008 

of finding ways GPO would use more environmentally 

responsible paper in GPO’s plant. After conversations 

with the paper industry, GPO ran tests on 100 percent 

recycled paper. Those tests showed no difference in 

printability or run-ability as compared to the 40 percent 

post consumer waste recycled paper GPO had been 

using for years.

GPO’s plant has been printing the official debates 

of Congress since 1861 and has continued to update 

services to fulfill the needs of Congress, including 

making congressional printing more sustainable. GPO 

made history in 2009 by printing the Congressional 

Record on 100 percent recycled paper, an achievement 

recognized by Speaker of the House Nancy Pelosi. At a 

ceremony in The Speaker’s Office, Pelosi complimented 

GPO for supporting her “Green the Capitol” initiative. 

The Secretary of the Senate Nancy Erickson and Clerk 

of the House Lorraine Miller came to GPO to inspect 

the printing of the first Congressional Record on 100 

percent recycled paper. Printing the official record of the 

proceedings and debates of Congress on 100 percent 

recycled paper will reduce the Federal Government’s 

carbon footprint and reduce the Nation’s paper landfill 

waste across the country.

Along with the Congressional Record, GPO also 

began printing the Federal Register on 100 percent 

recycled paper. Ray Mosley, the Director of the Federal 

Register, visited GPO to watch the historic production of 

the publication come off the presses.

For the first time in the agency’s history, GPO 

employees printed President Obama’s official photograph. 

The White House took the President’s photograph 

digitally and GPO used its digital capabilities to produce 

the photograph. Employees transferred the digital image 

from a computer to a printing plate and finally to one 

of GPO’s four color presses which produced a high 

quality product. The President’s photograph was printed 

on paper containing recycled content and fiber from a 

sustainably managed forest. GPO’s Creative Services and 

Communications Offices received an American Business 

Award for the video showcasing the production of the 

President’s photograph.

Plant employees also printed President Obama’s first 

budget for the Federal Government. Office of Management 

and Budget (OMB) Director Peter Orszag visited GPO 

to inspect the production of President Barack Obama’s 

Budget for Fiscal Year (FY) 2010. Public Printer Bob 

Tapella introduced Director Orszag to several of the GPO 

employees who had been working around the clock to 

rc

c

Counterclockwise: GPO’s Andy Soldano presents a proof 

sheet of President Barack Obama’s official photograph to 

Public Printer Bob Tapella and Deputy Public Printer Paul 

Erickson.

GPO’s Steve Nunamaker shows Public Printer Bob Tapella, 

Secretary of the Senate Nancy Erickson and The Clerk of the 

House Lorraine Miller the Congressional Record on 100% 

recycled paper in GPO’s plant.

Public Printer Bob Tapella presents Speaker of the House 

Nancy Pelosi a copy of the first Congressional Record printed 

on 100% recycled paper at the Speaker’s Office.

OMB Director Peter Orszag receives a copy of the Federal 

Budget from Public Printer Bob Tapella.

Public Printer Bob Tapella and Ray Mosley, the Director 

of the Federal Register, inspect the printing of the Federal 

Register on 100% recycled paper.
Ho a Bl

There are up to 27 legislative steps in our Federal lawmaking process, from the introduction of 

a bill by any Member through passage by the U.S. House of Representatives and U.S. Senate 

and approval by the President of the United States. Since the large majority of laws originate 

in the House, this example starts with that body.

The U.S. Government Printing Office (GPO) was established to provide essential printing and 

binding for the Congress. Congressional printing is a $90 million a year business for GPO, 

and it is a core function of our mission. GPO’s electronic dissemination and printing services 

are required in the lawmaking process and are denoted in the chart by the GPO logo. The 

laws are also submitted into GPO’s Federal Digital System (FDsys).

★

110TH CONGRESS 

1ST SESSION H. R. 2669 

AN ACT 

To provide for reconciliation pursuant to section 601 of 

the concurrent resolution on the budget for fiscal year 2008. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

★ 59–012 2007

110th Congress, 1st Session – – – – – – – – – – – – – House Document 110–31 

VETO MESSAGE ON H.R. 1591 

MESSAGE 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

NOTIFICATION OF THE VETO OF H.R. 1591, THE U.S. TROOP READINESS, VETERANS’ CARE, KATRINA RECOVERY, AND IRAQ ACCOUNTABILITY APPROPRIATIONS ACT, 2007 

MAY 2, 2007.—Message and accompanying bill referred to the Committee 

on Appropriations and ordered to be printed 


ccoleman on PRODPC74 with HEARINGE:\Seals\Congress.#13

IB 

Union Calendar No. 128 

110TH CONGRESS 

1ST SESSION H. R. 2669 

[Report No. 110–210] 

To provide for reconciliation pursuant to section 601 of the concurrent 

resolution on the budget for fiscal year 2008. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 12, 2007 

Mr. GEORGE MILLER of California (for himself and Mr. HINOJOSA) introduced the following bill; which was referred to the Committee on Education and Labor 

JUNE 25, 2007 

Additional sponsors: Ms. HIRONO, Mr. HARE, Ms. CLARKE, Ms. WOOLSEY, 

Mrs. DAVIS of California, Mr. SARBANES, Mr. BISHOP of New York, Mr. 

YARMUTH, Ms. SHEA-PORTER, Mr. SCOTT of Virginia, Mr. DAVIS of Illinois, Mr. TIERNEY, Ms. ZOE LOFGREN of California, Mr. WU, Mr. 

ELLISON, Ms. CARSON, Mr. KILDEE, Mr. ENGEL, Mr. VAN HOLLEN, Ms. 

DELAURO, Mr. KUCINICH, Ms. MCCOLLUM of Minnesota, Mr. LEWIS of 

Georgia, Ms. SCHAKOWSKY, Mr. STARK, Ms. MATSUI, Mrs. MALONEY of 

New York, Mr. PRICE of North Carolina, Ms. ESHOO, and Ms. KILPATRICK of Michigan 

JUNE 25, 2007 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 


bajohnson on PROD1PC77 with BILLS

59–006 

110TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 1st Session 110–210 

COLLEGE COST REDUCTION ACT OF 2007 

JUNE 25, 2007.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. GEORGE MILLER of California, from the Committee on 

Education and Labor, submitted the following 

R E P O R T 

together with 

MINORITY VIEWS 

[To accompany H.R. 2669] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Education and Labor, to whom was referred the bill (H.R. 2669) to provide for reconciliation pursuant to section 

601 of the concurrent resolution on the budget for fiscal year 2008, 

having considered the same, report favorably thereon with an 

amendment and recommend that the bill as amended do pass. The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited to as the ‘‘College Cost Reduction Act 

of 2007’’. 

(b) TABLE OF CONTENTS.— 

Sec. 1. Short title; table of contents. 

Sec. 2. References; effective date. 

TITLE I—INVESTING IN STUDENT AID 

PART A—INCREASING THE PURCHASING POWER OF PELL GRANTS

Sec. 101. Mandatory Pell Grant Increases. 

Sec. 102. Support for working students. 

Sec. 103. Simplified needs test and automatic zero improvements. 

Sec. 104. Definitions. 

PART B—MAKING STUDENT LOANS MORE AFFORDABLE

Sec. 111. Interest rate reductions. 

Sec. 112. Increases in loan limits. 

Sec. 113. Reduction of lender special allowance payments. 

Sec. 114. Elimination of exceptional performer status for lenders. 

Sec. 115. Reduction of lender insurance percentage. 

Sec. 116. Guaranty agency collection retention. 


cnoel on PRODPC60 with HEARING

In the Senate of the United States,

July 20 (legislative day, July 19), 2007.

Resolved, That the bill from the House of Representatives (H.R. 2669) entitled ‘‘An Act to provide for reconciliation pursuant to section 601 of the concurrent resolution on

the budget for fiscal year 2008.’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE; REFERENCES.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Higher Education Access Act of 2007’’.

4 (b) REFERENCES.—Except as otherwise expressly pro5 vided, whenever in this Act an amendment or repeal is ex6 pressed in terms of an amendment to, or repeal of, a section

7 or other provision, the reference shall be considered to be

8 made to a section or other provision of the Higher Edu9 cation Act of 1965 (20 U.S.C. 1001 et seq.).

II 

Calendar No. 269 

110TH CONGRESS 1ST SESSION H. R. 2669 

IN THE SENATE OF THE UNITED STATES 

JULY 16, 2007 

Received; read twice and placed on the calendar 

AN ACT 

To provide for reconciliation pursuant to section 601 of 

the concurrent resolution on the budget for fiscal year 2008. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘College Cost Reduction 

5 Act of 2007’’. 

6 SEC. 2. REFERENCES; EFFECTIVE DATE. 

7 (a) REFERENCES.—Except as otherwise expressly 

8 provided, whenever in this Act an amendment or repeal 

9 is expressed in terms of an amendment to, or repeal of, 

10 a section or other provision, the reference shall be considVerDate Aug 31 2005 03:04 Jul 17, 2007 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2669.PCS H2669

ccoleman on PROD1PC69 with BILLS

Bill read and 

debated in 

House for 

amendment.

Original engrossed House 

bill with engrossed Senate 

amendment returned to 

House. “Senate engrossed 

amendment print”. Printed 

overnight by GPO.

Referred to 

subcommittee.

Public 

hearing.

Bill reported 

by committee.

Bill and 

report printed 

overnight 

by GPO. 

“Reported 

print”.

Engrossed 

copy of bill is 

passed 

(An Act). 

“House 

engrossed 

print”. Printed 

overnight by 

GPO.

Engrossed 

bill transmitted 

to Senate.

Engrossed 

bill referred 

to Senate 

committee 

or held at 

desk.

Bill reprinted. 

“Senate 

referred 

print”. Printed 

overnight by 

GPO.

Bill reported by 

committee, reprinted 

with committee 

amendments. “Senate 

reported print”. 

Printed overnight by 

GPO.

Senate debates 

and passes 

amended bill.

59–006 

110TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 1st Session 110–317 

COLLEGE COST REDUCTION AND ACCESS ACT 

SEPTEMBER 6, 2007.—Ordered to be printed 

Mr. GEORGE MILLER of California, from the committee of 

conference, submitted the following 

CONFERENCE REPORT 

[To accompany H.R. 2669] 

The committee of conference on the disagreeing votes of the two 

Houses on the amendment of the Senate to the bill (H.R. 2669), to 

provide for reconciliation pursuant to section 601 of the concurrent 

resolution on the budget for fiscal year 2008, having met, after full 

and free conference, have agreed to recommend and do recommend 

to their respective Houses as follows: 

That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as 

follows: 

In lieu of the matter proposed to be inserted by the Senate 

amendment, insert the following: 

SECTION 1. SHORT TITLE; REFERENCES. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘College Cost 

Reduction and Access Act’’. 

(b) REFERENCES.—Except as otherwise expressly provided, 

whenever in this Act an amendment or repeal is expressed in terms 

of an amendment to, or repeal of, a section or other provision, the 

reference shall be considered to be made to a section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). 

(c) EFFECTIVE DATE.—Except as otherwise expressly provided, 

the amendments made by this Act shall be effective on October 1, 

2007. 


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Conference between 

House and Senate 

committee members.

Conference report 

printed overnight 

by GPO.

When approved, 

returned to House.

When approved by both 

House of Representatives and 

Senate, all original papers go 

to House of Representatives 

to be enrolled.

Certified by Clerk of 

the House and signed 

by Speaker of the 

House and President 

of the Senate.

Enrolled bill, 

printed on 

parchment 

paper by GPO.

Amendment agreed to; amended 

further; or disagreed to and sent to 

conference.

121 STAT. 784 PUBLIC LAW 110–84—SEPT. 27, 2007 

Public Law 110–84 

110th Congress 

An Act 

To provide for reconciliation pursuant to section 601 of the concurrent resolution 

on the budget for fiscal year 2008. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; REFERENCES. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘College Cost 

Reduction and Access Act’’. 

(b) REFERENCES.—Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in 

terms of an amendment to, or repeal of, a section or other provision, 

the reference shall be considered to be made to a section or other 

provision of the Higher Education Act of 1965 (20 U.S.C. 1001 

et seq.). 

(c) EFFECTIVE DATE.—Except as otherwise expressly provided, 

the amendments made by this Act shall be effective on October 

1, 2007. 

TITLE I—GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF 

HIGHER EDUCATION 

SEC. 101. TUITION SENSITIVITY. 

(a) AMENDMENT.—Section 401(b) (20 U.S.C. 1070a(b)) is 

amended— 

(1) by striking paragraph (3); and 

(2) by redesignating paragraphs (4) through (9) as paragraphs (3) through (8), respectively. 

(b) EFFECTIVE DATE.—The amendments made by subsection 

(a) shall be effective with respect to determinations of Federal 

Pell Grant amounts for award years beginning on or after July 

1, 2007. 

(c) AUTHORIZATION AND APPROPRIATION OF FUNDS.—There is 

authorized to be appropriated, and there is appropriated, out of 

any money in the Treasury not otherwise appropriated, for the 

Department of Education to carry out the amendment made by 

subsection (a), $11,000,000 for fiscal year 2008. 

SEC. 102. MANDATORY PELL GRANT INCREASES. 

(a) EXTENSION OF AUTHORITY.—Section 401(a) (20 U.S.C. 

1070a(a)) is amended by striking ‘‘fiscal year 2004’’ and inserting 

‘‘fiscal year 2017’’. 

20 USC 1070a 

note. 

20 USC 1070a 

note. 

College Cost 

Reduction and 

Access Act. 

20 USC 1001 

note. 

Sept. 27, 2007 

[H.R. 2669] 


dkrause on GSDDPC29 with PUBLIC LAWS

Signed bill 

assigned a public 

law number 

and printed as a 

“Slip Law”.

Printed 

in bound 

volumes 

of Statutes 

at Large.

Relevant titles of the U.S. 

Code are updated by any 

changes in existing law. 

Vetoed bills returned to chamber 

of origin with message explaining 

President’s objections (“Veto 

Message”), for reconsideration 

and possible override by 2/3 

vote of both chambers. Printed 

overnight as document by GPO.

Presented to 

President for 

signature in 

presentation 

cases made by 

GPO.

I 

110TH CONGRESS 1ST SESSION H. R. 2669 To provide for reconciliation pursuant to section 601 of the concurrent 

resolution on the budget for fiscal year 2008. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 12, 2007 

Mr. GEORGE MILLER of California (for himself and Mr. HINOJOSA) introduced the following bill; which was referred to the Committee on Education and Labor 

A BILL 

To provide for reconciliation pursuant to section 601 of 

the concurrent resolution on the budget for fiscal year 2008. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be referred to as 

5 the ‘‘College Cost Reduction Act of 2007’’. 

6 (b) TABLE OF CONTENTS.— 

Sec. 1. Short title; table of contents. 

Sec. 2. References; effective date. 

TITLE I—INVESTING IN STUDENT AID 

PART A—INCREASING THE PURCHASING POWER OF PELL GRANTS

Sec. 101. Mandatory Pell Grant Increases. 

Sec. 102. Support for working students. 

Bill, in 

manuscript 

form, put 

in hopper.

Assigned 

number, 

title entered 

in Journal,

and printed in 

Congressional 

Record.

Referred to 

committee.

Printed 

overnight 

at GPO. 

“Introduced 

print”.

GPO’S FEDERAL DIGITAL SYSTEM 

(FDsys) Concept to End User

This high level chart illustrates the FDsys workflow process from initial agency consultation to development through 

the final search and retrieval. Each step lists areas of the agency working together to provide online public access 

to Government information submitted by Congress and Federal agencies. 

UNDERSTAND 

INTERNAL/EXTERNAL 

USER NEEDS

n GPO Information 

Technology and 

Systems (IT&S)

update

de

n IT&S

n System Engineers

revi

anal ysis AN

n IT&S

n Subject Matter Experts 

(SMEs) for GPO Business 

Units, Congress, Agencies, 

and Library Community

ANALYZE

DOCUMENT DAT

n Data Analysts

Test S

n IT&S

n SMEs from 

GPO Business Units, 

Congress, Agencies, 

and Library Community

Deplo y S

n System Developers

n IT&S

Syste 

n Internal and 

External Users

Submit El

n GPO Plant Operations

n Congress

n Federal Agencies

Auto matd

n Authenticate content

n Package content and metadata together

n Record events in preservation metadata

n Parse content to extract metadata

n Breakup large files into smaller files

n Transform file formats

n Digitally sign PDF files

System 

Manag

a

n GPO Plant Operations

n GPO Library Services & Content 

Management

n GPO IT&S

Retre

Doc

n Congress

n Federal Agencies

n Library Community

n General Public

ask g

FDsys Use

n Library Services & Content 

Management

n Program Management Office

n Publication & Information Sales

Collect

PRODUCTION END USE

BUILD

SYST

n System Developers
11

print the President’s Budget. The Budget was distributed at 

GPO’s Bookstore and made available on FDsys.

GPO’s Print Procurement business unit works with 

Federal agencies to procure more than 78 percent of 

GPO’s printing jobs to the private sector printing industry. 

The procurement of commercially obtainable federal 

printing by GPO on behalf of Federal agencies has been 

a staple of our operations since the 1940s.

GPO has a longstanding partnership with America’s 

printing industry to provide for the Government’s printing 

needs.

GPO competitively buys products and services from 

thousands of private sector firms nationwide in one of 

the Government’s most successful procurement programs, 

assuring the most cost-effective use of the taxpayers’ 

printing dollar. More than 80 percent of the printing 

contracts GPO awards go to small businesses, supporting 

this vital sector of America’s economy. 

By working with GPO’s Print Procurement business 

unit, Federal agencies ensure that government publications 

and information products will be made available for 

dissemination to the public, and this helps to ensure the 

enforcement of laws and policies concerning recycled 

paper, vegetable oil-based inks, and other requirements.

GPO’s Agency Accounts & Marketing is charged 

with providing Federal customers with the services the 

agency’s plant, print procurement and Creative Services 

can provide. The National Account Managers (NAMs) 

are the sales force of GPO and the first stop for new 

customers. NAMs are an integral part of GPO’s sales 

and marketing team, and spend much of their time with 

GPO’s Federal agency customers. GPO has NAMs in 

its central office region that facilitate the needs of the 

Federal agencies in the Washington, DC metropolitan 

area, as well as a nationwide team of NAMs that service 

the GPO regional offices across the U.S. Wherever a 

customer is located, GPO strategically and conveniently 

has a NAM available to assist.

GPO has a partnership with more than 1,200 

depository libraries throughout the country to give 

Americans another avenue for an open and transparent 

view of the documents of our democracy. The Federal 

Depository Library Program (FDLP) was established 

by Congress to ensure that the American public has 

access to its Government’s information. Since 1813, 

depository libraries have safeguarded the public’s 

right to know by collecting, organizing, maintaining, 

preserving, and assisting users with information from the 

Federal Government. The FDLP provides Government 

information at no cost to designated depository 

libraries throughout the country and territories. These 

depository libraries, in turn, provide local, no-fee access 

to Government information in an impartial environment 

with professional assistance. Anyone can visit Federal 

depository libraries and use the Federal depository 

collections which are filled with information on 

careers, business opportunities, consumer information, 

health and nutrition, legal and regulatory information, 

demographics, and numerous other subjects.

GPO has been developing partnerships with Federal 

depository libraries and other Federal agencies to 

increase access to electronic Federal information since 

1813. With an increasing amount of Federal information 

available electronically, partnerships ensure permanent 

public access to electronic content and provide services 

to assist depositories in providing access to electronic 

material and in managing their depository collections. 

These partnerships also allow GPO to take advantage 

of the expertise of Federal depository librarians and the 

services they have developed. 

To help meet the challenge of the digital age, GPO 

began using digital signatures to certain electronic 

documents on FDsys. This not only establishes GPO as 

the trusted information disseminator, but also assures 

citizens that an electronic document has not been altered 

since GPO disseminated it.

The visible digital signatures 

on online PDF documents serve 

the same purpose as handwritten 

signatures or traditional wax 

seals on printed documents. A digital signature, viewed 

through the GPO Seal of Authenticity, verifies document 

integrity and authenticity of GPO online Federal 

documents at no cost to the customer. 

D I G I T A L L Y S I G N E D 

G O V E R N M E N T I N F O R M AT I O N

n GPO buys printing for over 250 Federal executive branch agencies

n GPO procures over 100,000 unique publications each year by awarding contracts worth over $532 Million

n GPO works with more than 2,500 private-sector printing vendors

All projects pictured here were designed and 

produced in GPO’s Creative Services and 

the printing procured through GPO’s Print 

Procurement. Counterclockwise: the Peace 

Corps HIV/Aids Presentation Kit and training 

guides, the District of Columbia Regulatory 

Affairs 2008 Annual Report, a National Historic 

Landmark Photo Event Planner for the National 

Park Service, the U.S. Election Assistance 

Commission’s Voters Guide brochure series, 

and a promotional pamphlet for the National 

Museum of the American Indian.
12

The Catalog of U.S. Government Publications (CGP) 

is the finding tool for federal publications that includes 

descriptive records for historical and current publications 

and provides direct links to the publications that are 

available online. Users can search by authoring agency, 

title, subject, or general key word.

The Catalog offers you the option to find a 

nearby Federal Depository library that has a particular 

publication or that can provide expert assistance in 

finding and using related U.S. Government information. 

To use the Web site, http://catalog.gpo.gov, click on the 

title of interest from your search results list. Then click on 

the Locate in a Library link within the displayed record.

GPO’s Publication and Information Sales business 

unit sells select Government print and electronic 

publications to the public. Some of the publications are 

available for sale through commercial sales channels, 

including chain and online bookstores and major book 

wholesalers.

In an effort to make publications available to the 

public, GPO partnered with 20 Federal agencies and 

launched an enhanced e-mail alert system to inform the 

public about new Government publications available 

for sale. Subscribers can select from more than 100 

different subject areas. GPO provides this free notification 

service through GovDelivery, an e-mail service provider 

specializing in Government-to-citizen communications. This 

new system enables GPO to reach out to other agencies to 

get its alert service on their sites. For example, if someone 

is looking at NASA’s Web site, he or she can sign up for 

the e-mail alert for NASA publications sold by GPO. Nearly 

60,000 subscribers have signed up for the service.

GPO’s Secure and Intelligent Documents (SID) 

business unit provides Federal agencies the expertise 

to provide secure credentials. Since the 1920s, GPO has 

produced the U.S. passport for the U.S. Department 

of State. Today, with embedded electronics and added 

security features, the passport is the gold standard of 

identity documents. In addition to passports, SID worked 

with the Department of Homeland Security’s Customs 

and Border Protection (CBP) to launch the Trusted 

Traveler Program cards this past year. GPO designed, 

printed, encoded and personalized more than 700,000 

Trusted Traveler Program cards (NEXUS, SENTRI and 

FAST) for the CBP. 

These cards give the bearer faster service in 

crossing America’s northern and southern borders. 

The card gives travelers the convenience of expedited 

CBP processing through specially marked lanes at 

border crossings, similar to the E-Z pass on toll roads. 

When the Western Hemisphere Travel Initiative (WHTI) 

rules required all citizens of the United States, Canada, 

Mexico and Bermuda to present a passport or another 

approved credential in 2009 to cross America’s northern 

and southern borders by land, sea or air, GPO has 

produced two of the required credentials--the passport 

and a Trusted Traveler Program card. CNN invited GPO 

to discuss this important border crossing initiative and 

educate the Nation on the Trusted Traveler Program. 

GPO’s Managing Director of SID, Steve LeBlanc, 

appeared on CNN’s Lou Dobbs Tonight to discuss GPO’s 

expertise in producing secure federal credentials. 

GPO was honored at Government Security News’ 

annual Homeland Security Awards. The agency won 

in the ‘Most Effective Border Security Program, Project 

or Agency’ category for its design, production and 

personalization of the Trusted Traveler Program cards.

The U.S. Capitol Police turned to GPO for credentials 

for President Obama’s Inauguration. GPO produced 

credentials for law enforcement officers on the platform 

and on the parade route, making it easier to validate 

the identity of those closest to the President. The GPO 

credential design strengthened security with the use of 

visible and invisible features.

GPO introduced a new product line of nonelectronic identity credentials in 2009. Designed for 

use by law enforcement officers, these identity badges 

have won favor with the Inspectors General of several 

Agencies, as well as with agents of the U.S. Treasury 

Department.

The success of these programs has made GPO the 

state-of-the-art provider for secure federal credentials.

S T A T E - O F - T H E A R T 

S E C U R E F E D E R A L C R E D E N T I A L S

GPO’s Secure and Intelligent Documents (SID) business 

unit provides Federal agencies the expertise to provide 

secure credentials. Pictured counterclockwise; the Trusted 

Traveler Program cards, the Merchant Mariner credential, 

the Inspector General credential, and the 56th Presidential 

Inauguration credential for law enforcement.
2 0 0 9 U . S . G O V E R N M E N T P R I N i N  O F F I C   inancial S TAT

Summary Balance Sheets (in thousands) 2009 2008

Assets

Current Assets

Fund balance with Treasury $ 256,126 $ 265,251 

Accounts receivable, net 210,564 153,696 

Inventory, net 28,831 48,291 

Prepaid expenses 1,823 903

Total current assets 497,344 468,141 

General property, plant and equipment, net 115,141 107,194

Total Assets $ 612,485 $ 575,335

Liabilities and Net Position

Current Liabilities

Accounts payable and accrued expenses $ 120,699 $ 112,858 

Deferred revenues 98,634 89,376

Accrued annual leave 11,016 10,549 

Total current liabilities 230,349 212,783 

Other Liabilities

Workers’ compensation liability 71,174 67,067

Product warranty liability – 1,418

Total Liabilities 301,523 281,268 

Net position

Cumulative Results of Operations

Retained earnings 150,363 154,425

Invested capital 92,879 92,879

Unexpended Appropriations 67,720 46,763

Total Net Position 310,962 294,067

Total Liabilities and Net Position $ 612,485 $ 575,335

GPO’s Consolidated Balance Sheet continued to strengthen due to its positive operating performance. Working capital 

increased by $11.6M, to $267.0M as of September 30, 2009 from $255.4M as of September 30, 2008. This increase was a result 

of total current assets increasing by $29.2M, to $497.3M as of September 30, 2009 from $468.1M as of September 30, 2008, and 

current liabilities increasing by only $17.6M, from $212.8M at September 30, 2008 to $230.3M at September 30, 2009. 

Total assets grew by $37.2M to $612.5M as of September 30, 2009 from $575.3M as of September 30, 2008. Accounts 

receivable increased to $210.6M as of September 30, 2009 from $153.7M as of September 30, 2008. The increase of $56.9M is 

due primarily to an increase in customer orders at the end of the fiscal year, including $27.7M from the U.S. Department of 

Commerce for the 2010 Decennial Census, $7.7M from the U.S. Department of State, and $5.9M from the U.S. Department of 

Treasury. Inventory decreased by $19.5M to $28.8M as of September 30, 2009 compared to $48.3M as of September 30, 2008, 

due primarily to a $14.9M decrease in passport chip inventories reflecting the reduced demand for passports.

GPO ended fiscal 2009 with retained earnings of $150.4M, compared to $154.4M at the end of fiscal 2008.

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

substitute for the full audited financial statements presented on the accompanying CD/DVD.

For fiscal year 2009 (October 1, 2008 through September 30, 2009) GPO received a clean audit opinion on its 

consolidated financial statements from KPMG LLP.

For the sixth consecutive year, GPO achieved positive financial results before other operating expenses. In fiscal 2009, 

operating revenues, operating expenses, and net income, before other operating expenses, were less than fiscal 2008. These 

decreases were due primarily to a reduction in demand for U.S. Passports by the U.S. Department of State. 

During fiscal 2009, operating revenues decreased by 10.4% to $934.1M from $1.042B. Operating expenses, before 

Other Operating Expenses, decreased by 6.3%, to $932.8M from $995.8M. Income before other operating expenses was 

approximately $1.2M in fiscal 2009 as compared to income before other operating expenses of $46.6M in fiscal 2008. Other 

operating expenses in fiscal 2009 included a $1.2M charge for an asset impairment, and a $4.1M charge to increase the 

Agency’s long-term workers’ compensation liability. The asset impairment charge relates to software that has been determined 

to be unsustainable. The long-term workers’ compensation charge is required to record the adjustment to the U.S. Department 

of Labor actuarially determined liability as of September 30, 2009. As a result of the non-cash other operating expense charges, 

the GPO had a net loss of $4.1M in fiscal 2009 compared to net income of $46.3M in fiscal 2008.

In 2009, GPO used $53,000 in operations compared to generating $44.5M in 2008. This is primarily due to a decrease 

in net income. At September 30, 2009, GPO was awaiting a cash transfer of $19.5M for accounts receivable from customer 

agencies via the U.S. Treasury’s IPAC System. GPO also made investments for capital items of $30.0M in fiscal 2009 

compared to $47.2M in fiscal 2008. 

Summary Statements of Cash Flows (in thousands) 2009 20

Cash Flows from Operating Activities

Net Income (Loss) $ (4,062) $ 46,261

Provided by (used in) operating activities:

 Depreciation and other 17,175 10,412 

 Impairment loss 1,189 – 

 (Increase) decrease in current assets (38,328) (21,077) 

 Increase (decrease) in current liabilities 21,284 11,931

 Workers’ compensation liability 4,107 344

 Warranty liability (1,418) (3,415)

Total adjustments 4,009 (1,805) 

Net cash (used in) provided by operating activities (53) 44,456

Cash flows (used in) Investing Activities (30,029) (47,151)

Cash flows provided by (used in) Financing Activities 20,957 (5,500)

Net (decrease) Increase in Cash Balance $ (9,125) $ (8,195)

Summary of Revenues, Expenses, and Net Income (in thousands) 2009 

Operating Revenues $ 934,058 $ 1,042,425

Operating Expenses, before Other Operating Expenses 932,824 995,820

Income before other operating expenses 1,234 46,605

Other Operating Expenses

 Impairment loss (1,189) –

 Increase in workers’ compensation liability (4,107) (344)

 Net Income (Loss) $ (4,062) $ 46,261

14 15

As of September 30
Our past may well be a prologue to our 

future. GPO will make certain that the 

documents of our democracy are made 

widely available to the public and kept 

in perpetuity — whether in paper or digital 

formats. It’s a responsibility we’ve had 

for more than a century and we’re prepared 

to meet this challenge in an electronic 

era and continue to be a gateway to the 

documents of our democracy.

16

The attached DVD contains a video illustrating how GPO is a gateway to the documents of our democracy, links to additional 

GPO videos, and a pdf of this report with the FY 2009 Financial Year in Review.

This report is printed on paper containing recycled post consumer waste paper, fiber sourced from sustainable managed forests, 

and manufactured using renewable energy.

Feature Running Time: Approx. 6 Minutes / Color / NTSC 16:9 / 

Region Free / Unrated

Not all technical specifications apply to all elements. 

Not all material subtitled.

Some players and computers may not be able to access all features. 

Single–Layer Format, DVD-5.

All brands or product names are trademarks of their respective holders. 

Created by the 

U.S. Government Printing Office, Creative Services, www.gpo.gov
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

50% Black + 100% Black

PMS 540 + 100% Black

White (version for reverse)

White (version for reverse)
U . S . G O V E R N M E N T P R I N T I N G O F F I C E 

F I N A N C I A L Y E A R I N R E V I E W

F i s c a l Y e a r s 2 0 0 9 a n d 2 0 0 8 

( 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 )

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

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

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

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

Funding ................................................................................................................................................................3

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

Management Initiatives to Improve Agency Operations ....................................................................................5

Financial Position and Results for Fiscal Year 2009..................................................................................6

Consolidated Balance Sheets ...............................................................................................................................6

Consolidated Statements of Revenues, Expenses, and Changes in Retained Earnings .....................................6

Consolidated Revenues ..................................................................................................................................6

Consolidated Expenses...................................................................................................................................8

Changes in Retained Earnings .......................................................................................................................9

Consolidated Statements of Cash Flows..............................................................................................................9

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

Operating Performance Measures .......................................................................................................................9

On-Time Delivery of Congressional Record ..................................................................................................9

On-Time Delivery and Quality Acceptance of Procured Printing.................................................................9

Financial Performance Measures ....................................................................................................................... 10

Cash Management ........................................................................................................................................ 10

Debt Management ........................................................................................................................................ 10

Possible Future Effects of Existing Events and Conditions.....................................................................11

Fiscal Year 2010 Financial Projections ....................................................................................................11

II. Inspector General’s Report........................................................................................................................12

III. Independent Auditors’ Report...................................................................................................................18

IV. Consolidated Financial Statements.............................................................................................................34

Consolidated Balance Sheets...................................................................................................................35

Consolidated Statements of Revenues, Expenses, and Changes in Retained Earnings ...........................36

Consolidated Statements of Cash Flows..................................................................................................37

Notes to Consolidated Financial Statements ...........................................................................................38

1. Summary of Significant Accounting Policies ..................................................................................................38

2. Fund Balance with Treasury ........................................................................................................................... 43

3. Accounts Receivable, Net ................................................................................................................................ 44

4. Inventory, Net..................................................................................................................................................44

5. Prepaid Expenses ............................................................................................................................................ 45

6. General Property, Plant and Equipment, Net .................................................................................................45

7. Accounts Payable and Accrued Expenses.......................................................................................................46

8. Deferred Revenues .......................................................................................................................................... 46

9. Workers’ Compensation Liability .................................................................................................................... 47

10. Commitments ................................................................................................................................................... 47

11. Contingencies................................................................................................................................................... 48

12. Net Position......................................................................................................................................................48

13. Appropriated Funds......................................................................................................................................... 50

14. Employee Benefit Plans................................................................................................................................... 52

15. Major Customers ..............................................................................................................................................53

16. Impairment Loss .............................................................................................................................................. 53

17. Fair Value Measurement .................................................................................................................................. 53

18. Subsequent Events .......................................................................................................................................... 53

Acronym List ...................................................................................................................................................54

UNITED STATES GOVERNMENT PRINTING OFFICE

FY 2009 Financial Year in Review — Table of Contents
2 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

SECTION I

Management’s 

Discussion 

and Analysis

(Unaudited)

As of September 30, 2009

2 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009
Mission

The mission of the U.S. Government 

Printing Office (GPO or Agency) is 

Keeping America Informed, by providing 

excellent publishing and dissemination services for official and authentic 

Government publications to its customers: 

the Congress, Federal agencies, Judiciary, 

Federal Depository Libraries, and the 

American public.

The GPO accomplishes this mission 

by working in close partnership with all 

three branches of the Federal Government 

in the creation, collecting, cataloging and 

indexing, reproduction, dissemination, 

authentication, and preservation of Federal 

Government information. GPO utilizes 

conventional and digital technology, and 

state-of-the-art methods, to produce and 

distribute Federal Government information. To ensure that Federal Government 

information is readily available to all citizens, GPO makes information accessible 

in an array of communication mediums 

from traditional printed products to digital 

documents and on-line databases that are 

accessible through the Internet.

Basis of Financial Reporting

The consolidated financial statements 

of the GPO are prepared pursuant to 

the requirements of United States Code 

(U.S.C.) Title 31, Money and Finance, § 

3515, Financial Statements of Agencies. 

The consolidated financial statements have 

been audited by an independent external 

auditor selected by the Public Printer in 

accordance with U.S.C. Title 44, Public 

Printing and Documents, § 309, Revolving 

Fund for Operation and Maintenance of 

Government Printing Office.

The consolidated financial statements 

of the GPO are prepared from GPO’s 

financial system on the accrual basis 

of accounting in conformity with U.S. 

generally accepted accounting principles 

(GAAP). Under the accrual basis, revenues 

are recognized (recorded) when earned, 

and expenses are recognized when a 

liability is incurred, without regard to the 

receipt or the payment of cash. GAAP 

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 3

also requires that accounting principles be 

applied in a manner consistent with the 

previous year. 

GPO’s consolidated financial statements and accompanying notes provide 

information on the Agency’s financial 

position, results of operations, changes in 

net position, and cash flows, and disclose 

all significant events and economic affairs 

controlled by GPO, in conformity with applicable laws, regulations, standards, and 

policies relevant to financial reporting. 

GPO is committed to maintaining 

strong financial systems and internal 

controls to ensure accountability, integrity, 

and reliability. GPO’s internal controls are 

designed to provide reasonable assurance that obligations and costs comply 

with applicable laws and regulations and 

are within budgetary limits; that funds, 

property, and other assets are safeguarded 

against loss from unauthorized acquisition, 

use, or disposition; and that transactions 

are properly recorded. 

GPO Instruction 825.18A, Internal 

Control Program, 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 monitors the internal control 

systems and 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 management’s 

progress in addressing internal control 

deficiencies noted in the annual financial 

statement audit. Additionally, the OIG and 

the U.S. Government Accountability Office 

(GAO) conduct audits of 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.

Programs and Operations

The Government-wide programs and 

operations managed by GPO are based 

on various public laws codified in U.S.C. 

Title 44. GPO’s statutory responsibilities 

include fulfilling the printing needs of 

the Federal Government and distributing 

Federal Government information products 

to the public.

Funding 

The Agency’s programs and operations are 

funded through a business-type revolving 

fund, authorized by U.S.C. Title 44, and by 

annual and certain no-year and multi-year 

appropriations provided by Congress. The 

GPO Revolving Fund is authorized to be 

self-sustaining, without fiscal year limitations applicable to most annual appropriations. 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. GPO’s rates and prices for 

products and services are developed 

using estimates of direct labor and direct 

material expenses, overhead expenses, and 

anticipated volumes. 

The major sources of reimbursement 

to the GPO Revolving Fund are: 

n	 Payments from Federal customers for 

printing and binding, blank paper 

and paper products, and information 

products and design services; 

n	 Sales of Government publications and 

information products to the general 

public, bookstores, book dealers, and 

businesses; and,

n	 Fund transfers from the Congressional 

Printing and Binding (CP&B) 

Appropriation and the Salaries and 

Expenses (S&E) Appropriation. 

The CP&B and S&E appropriations 

reimburse the GPO Revolving Fund for 

costs incurred producing congressional 

work and fulfilling statutory requirements 

to disseminate Federal Government information to the public, respectively. Congress 

has also occasionally made no-year and 

multi-year appropriations available to the 

Agency for special purposes. For example, 

appropriations have been made for building improvements, security enhancements, 
4 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

and workforce retraining. Reimbursements 

to the Revolving Fund from the appropriations are recorded as revenue when related 

liabilities are incurred. Generally, unexpended annual appropriations are returned 

to the U.S. Department of the Treasury 

after five years.

Programs and Operations Overview

The Agency is organized into separate 

business units or segments, as described 

below, to assist management of the various 

programs and operations of the Agency.

Plant Operations The Plant Operations 

unit publishes, conventionally and digitally, the important journals of the Federal 

Government, along with many other 

Federal Government documents that are 

available to the public. The Plant provides 

Congress with all legislative printing and 

binding services, including overnight 

production of the Congressional Record, 

and Congressional bills, reports, and hearings. GPO also publishes the daily Federal 

Register and produces the Code of Federal 

Regulations for the Executive Branch.

Official Journals of Government 

The need for traditional printed versions 

of the official records of government (for 

example, the Congressional Record and 

the Federal Register) will remain until 

practicable alternatives are developed 

and accepted. The Official Journals of 

Government business unit continues 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 

the compliance with GPO’s electronic 

information dissemination mandate.

Security and Intelligent Documents 

This business unit works with other 

Federal agencies to assist in the safe and 

secure design, production, and distribution of security and intelligent documents, 

credentials, forms, and tickets. These 

security products incorporate electronic 

technologies and other fraud and counterfeit protection security features. This unit’s 

principal products are electronic passport 

books for the U.S. Department of State and 

electronically enabled secure credentials for 

Section I: Management’s Discussion and Analysis

the U.S. Department of Homeland Security, 

Customs and Border Protection, Trusted 

Traveler Program. 

Print Procurement The majority of the 

Government’s printing needs are satisfied 

through Print Procurement’s partnership 

with industry that takes advantage of the 

vast resources, expertise, and specialization in the private sector. This business 

unit receives printing requisitions from 

Federal customers and acquires the 

information products competitively 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 printing jobs. 

GPO’s performance measures for on-time 

delivery and quality acceptance underscore the effectiveness of this partnership 

between industry and government.

GPO assigns print procurement teams 

to provide print brokerage, contract 

administration, and other related services 

to Federal customers. The teams work 

diligently to become authorities on the 

mission of their respective agencies to 

anticipate and exceed customer expectations. The teams are assisted by GPO’s 

sales force of national account managers. 

Both team members and national account 

managers meet regularly with customer 

agency program managers to ensure high 

levels of satisfaction.

Creative Services, Digital Media, 

and IFPeP GPO provides Congress and 

Federal customers with many products 

and services to assist in the creation and 

dissemination of information.

Creative Services is comprised of 

a team of professional designers that 

provides branding and identity design, 

Web graphics, and multi-media presentations. The team consults with customers 

to develop appropriate solutions based on 

audience, budget, and delivery schedule 

requirements. Their work includes designing annual reports, magazines, brochures, 

books, posters, and Web layouts and 

pages. They also create specialized 

security designs for passports, credentials, 

and other secure documents. 

The Digital Media team creates 

complex Web applications and rich media. 

They support Web site hosting and Web 

site maintenance services for other Federal 

agencies, including content management, 

Web statistics reporting, database management, and administration. In addition, 

they offer Web application development 

and digital consulting services to ensure 

compliance with Federal mandates.

The Institute for Federal Printing & 

Electronic Publishing (IFPeP) provides 

training opportunities for Federal customers. The IFPeP provides these customers 

with classroom instruction on using 

information technology to meet their 

program objectives, printing requirements, 

and electronic dissemination initiatives.

Publication and Information 

Sales Program The Publication and 

Information Sales business unit increases public access to U.S. Government 

information through sales of Government 

information products. The public purchases copies of Federal Government 

publications and subscriptions via GPO’s 

Online Bookstore, as well as by e-mail, 

phone, fax, and mail. This business unit 

also works with commercial sales channels, including major bookstore chains 

and leading book distributors nationwide, 

to enhance Government information 

distribution. In addition to traditional sales 

activities, Publication and Information 

Sales provides Government agencies 

with expert advice on how to make their 

publications more user-friendly and commercially viable.

Reimbursable Services Program 

This business unit provides a variety of 

global order fulfillment, inventory, and list 

management services to Federal agencies 

through two distribution centers located in 

Pueblo, Colorado, and Laurel, Maryland. 

The business unit supports the U.S. 

General Services Administration’s popular 

Federal Citizen Information Center.

Library Services and Content 

Management This business unit supports 

and manages the Federal Depository 

Library Program (FDLP), the Cataloging and 

Indexing Program, the By-Law Program, 

and the distribution component of the 

International Exchange Service of the 

Library of Congress. The FDLP, under the 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 5

direction of Congress, ensures equitable, 

secure, convenient, and permanent no-fee 

access to published U.S. Government 

information. The FDLP includes 1,240 

designated Federal depository libraries 

throughout the United States and its territories that provide the American public 

access to U.S. Government publications in 

tangible collections, and GPO Access, which 

provides direct online access to Federal 

Government publications from all three 

branches of Government. Other popular 

online services managed by this business 

unit include the Catalog of U.S. Government 

Publications, the FDLP Desktop, and Ben’s 

Guide to the U.S. Government. 

Management Initiatives 

to Improve Agency Operations

The transformation program underway 

at GPO places emphasis on the effective and efficient accomplishment of 

GPO’s mission, while at the same time 

maintaining the Agency’s core values of 

integrity, teamwork, commitment, and 

dependability. The Strategic Vision for the 

21st Century continues to keep GPO on 

track to embrace sustainable, environmentally friendly, technology of the 21st 

century. Policy decisions, budgeting and 

capital investment decisions, workforce 

development plans, industry partnerships, 

customer relations, operational decisionmaking, and other actions are based-on or 

tied-to the Strategic Vision.

The following is an overview of some 

of the major agency initiatives transforming GPO. These efforts will enable GPO to 

better satisfy the existing and future needs 

of the U.S. Congress, Federal agencies, the 

library and information communities, and 

the public. 

GPO’s Federal Digital System (FDsys) 

During fiscal 2009, GPO launched FDsys, 

a world-class information management system developed to authenticate, 

preserve, maintain contents by version, 

and provide permanent public access 

to Government information. The system 

provides users a one-stop site to authentic, published government information, 

while offering users advanced search and 

retrieval capabilities.

In July 2009, Government Computer 

News (GCN) named FDsys one of the top 

Section I: Management’s Discussion and Analysis

10 great government Web sites. The list 

highlighted Government Web sites that 

are best for providing more interactive 

tools for the public and aiding the White 

House in its goal to improve Government 

transparency. Inclusion in the GCN list, 

which also named sites such as Data.gov 

and the Department of State’s Web site, 

was a major step for FDsys.

At fiscal year end, GPO and the Office 

of the Federal Register achieved a breakthrough in making Government information more transparent. GPO converted the 

text of the Federal Register (2000-2009) 

into extensible markup language (XML), 

a form of text that allows manipulation in 

virtually limitless ways with digital applications, and placed it online in numerous 

Federal Government portals, including 

FDsys, the Federal Register Web site, and 

Data.gov. The XML version supplements 

official publishing formats. 

Future plans for FDsys include 

completing the migration of content from 

the legacy site, GPO Access, as well as 

digitally signing many of the collections 

that are available on FDsys. At fiscal 

year end there were more than 178,000 

documents available on FDsys, including 

Congressional Bills, the Federal Register, 

United States Statues at Large, and many 

more. The migration of content from GPO 

Access and the development of the backup 

facility for FDsys are both expected to be 

complete early in fiscal 2010. Other future 

enhancements that will further improve 

the transparency of Federal Government 

information include user notifications 

for content; delivery by Really Simple 

Syndication (RSS), email, and File Transfer 

Protocol (FTP); automatic harvesting of 

information from Federal Web sites; and 

automatically saved search preferences.

Mapping the Future of the FDLP 

The Agency, with input from the 

Depository Library Council and the depository community, is charting a future course 

for the Federal Depository Library Program. 

Based upon collaboration and flexibility, 

the program will continue to support the 

public with free and permanent access to 

official and authentic Federal Government 

content that will be available at the user’s 

fingertips through FDsys. Recognizing 

the role of online information, the future 

focuses on collaboration with the depository community to make Government more 

transparent by freely providing its information to all users. 

Customer-Friendly Print Procurement 

Vehicles The Agency has established 

two programs that allow GPO customers 

to work directly with GPO vendors. These 

programs generally handle small value or 

short turnaround requirements. Annual 

growth in these programs increases GPO 

and customer agency efficiency and 

effectiveness in delivering services to 

agency clients.

The GPOExpressSM Program allows 

Federal Government personnel to order 

from any FedEx OfficeSM print center, day 

or night, at any of the more than 1,800 

locations throughout the United States and 

around the world. Agencies receive significant discounts on printing and finishing 

needs at any store location when they use 

the new GPOExpressSM card. GPOExpressSM

continues to grow in use by Federal customers. Program sales increased in fiscal 

2009 by 18 percent from fiscal 2008. 

The GPO Online Paper Store allows 

Federal Government organizations to 

purchase, at significant savings, environmentally safe, xerographic copier paper 

using a Web-based system. GPO teamed 

with Unisource® Worldwide, Inc., a global 

paper distributor, to develop the online 

store. Unisource® Worldwide, Inc. has 

approximately 75 domestic distribution 

centers that quickly fill customer orders. 

Program sales increased in fiscal 2009 by 

33 percent from fiscal 2008.

Modernizing Agency Information 

Systems GPO launched the GPO 

Enterprise Program in 2004 to replace 

unsustainable legacy systems. This major 

program has been progressively implementing modern application systems to 

support GPO business units. Phase 2 of 

this modernization program became operational on May 1, 2009. The applications, 

known collectively as the Government 

Printing Office Business Information 

System (GBIS), replaced in-house 

developed mainframe software placed 

into operation more than 30 years ago. 

The launch provides GPO with a solid 

base of financial application software on 

which to build more efficient, sustainable 
processes. In fiscal 2010, GPO will focus 

on streamlining and revising back office 

administrative processes to conform to the 

new system, and adding functionality to 

the baseline system when cost effective.

International Organization for 

Standardization (ISO) 9001 

Certification GPO is continuing to make 

progress toward ISO 9001 certification for 

total quality management. In fiscal 2010, 

the Agency expects to have one Secure 

and Intelligent Documents (SID) facility 

certified, while the other SID facility is 

expected to be progressing through the 

pre-certification stage. Obtaining certification provides a framework and systematic approach to managing the Agency’s 

business processes to produce quality 

products and services that conform to 

manufacturing standards that are globally 

accepted.

Process Improvement Methodology 

The Agency continues to emphasize process study and improvement methodologies. GPO is analyzing and re-engineering 

programs and processes to be less costly, 

faster, and more effective. This program 

includes adopting appropriate characteristics and capabilities of high-performing 

organizations; developing and identifying 

best practices to assess organizational 

transformation, structure, and management; and conducting targeted reviews 

and assessments of management practices 

in industry and applying best practices 

and lessons learned.

Financial Position and 

Results for Fiscal Year 2009

The following is an overview of the 

financial position and operating results 

reflected in GPO’s basic consolidated 

financial statements as of and for the fiscal 

year ended September 30, 2009.

Consolidated Balance Sheets

The consolidated balance sheets present the combined amounts the Agency 

had available to use (assets) versus the 

amounts the Agency owed (liabilities), and 

the residual amounts (net position) after 

liabilities were subtracted from assets. 

Section I: Management’s Discussion and Analysis

GPO’s total assets increased to $612.5 

million as of September 30, 2009 from 

$575.3 million as of September 30, 2008. 

The increase of $37.2 million (6.5 percent) 

in total assets was primarily attributable to 

$56.9 million increase in accounts receivable and $19.5 million decrease in inventory. The increase in accounts receivable 

(unbilled work in process and unbilled 

finished work) was due to a higher 

volume of commercial work at the end of 

fiscal 2009 as compared to fiscal 2008. The 

increase is due primarily to an increase in 

customer orders, including $27.7 million 

for the U.S. Department of Commerce for 

the 2010 Decennial Census, $7.7 million 

for the U.S. Department of State, and $5.9 

million for the U.S. Department of the 

Treasury. Inventory decreased to $28.8 

million as of September 30, 2009 from 

$48.3 million as of September 30, 2008 

reflecting a reduction in passport raw 

materials as a result of less demand for 

passports by the U.S. Department of State.

General Property, Plant and Equipment 

increased to $115.1 million as of 

September 30, 2009 from $107.2 million 

as of September 30, 2008. The increase 

of $7.9 million (7.4 percent) occurred 

mainly because of capital expenditures in 

fiscal 2009 for FDsys ($5 million), Trusted 

Traveler card production equipment ($3.3 

million) and progress payments for GPO’s 

roof replacement project ($1.4 million). 

GPO’s liabilities increased to $301.5 

million as of September 30, 2009 from 

$281.3 million as of September 30, 2008. 

The increase of $20.2 million (7.2 percent) 

in total liabilities was due to an increase 

in accounts payable and accrued expenses 

of $7.8 million (7.0 percent), an increase 

in deferred revenues of $9.3 million 

(10.4 percent), an increase in the Federal 

Employees’ Compensation Act (FECA) 

future liability of $4.1 million (6.1 percent), and a decrease in product warranty 

liabilities of $1.4 million.

The increase in accounts payable and 

accrued expenses of $7.8 million resulted 

from an increase in accounts payable to 

printing contractors of $13.5 million, offset 

by decreases in payables for capital assets 

and production materials of $3.7 million 

and $2.3 million, respectively.

The increase in deferred revenues 

resulted from a $9.0 million increase in 

customer deposit accounts for printing 

and binding. The product warranty liability was reduced to zero as of September 

30, 2009 from $1.4 million as of September 

30, 2008, because no significant warranty claims are expected based on past 

experience.

GPO’s net position increased to 

$311.0 million as of September 30, 2009 

from $294.1 million as of September 30, 

2008. The increase of $16.9 million (5.7 

percent) in GPO’s net position is primarily 

the result of an increase in unexpended 

appropriations of $21.0 million. Agency 

unexpended appropriations increased 

due to increases in unliquidated obligations in the Congressional Printing and 

Binding Appropriations of $16.1 million 

($38.3 million at year-end 2009 from 

$22.2 million at year-end 2008), and in 

the Salaries and Expenses Appropriations 

of $6.4 million ($24.5 million at year-end 

2009 from $18.1 million at year end 2008). 

These increases were offset by a small 

decrease in unexpended Revolving Fund 

appropriations of about $1.5 million ($4.9 

million at year-end 2009 from $6.4 million 

at year-end 2008).

Consolidated Statements 

of Revenues, Expenses, and 

Changes in Retained Earnings

The consolidated statements of revenues, 

expenses, and changes in retained earnings present the accrued reimbursements 

for goods sold and services provided 

(revenues), the accrued cost of assets and 

services used (expenses) in the creation 

of revenues, and the change, within the 

period presented, of the accumulated 

net income of the Agency (changes in 

retained earnings). 

Consolidated Revenues 

GPO’s consolidated revenues are derived 

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

and Agency Distributions. Consolidated 

revenue was $934.1 million in fiscal 2009 

and $1.042 billion in fiscal 2008. This is 

a decrease of about $108.3 million (10.4 

percent). Printing and Binding revenue 

decreased to $794.8 million in fiscal 

2009 from $890.6 million in fiscal 2008, a 

6 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009
decrease of $95.8 million (10.8 percent). 

Appropriation revenue also decreased from 

$130.1 million in fiscal 2008 to $119.2 million in fiscal 2009. This is a $10.9 million 

(8.4 percent) decrease. 

n Printing and Binding Revenues

The Agency earns revenue from Federal 

Government customers for printing, binding, and other related services performed 

by GPO business units and from work 

performed by commercial contractors. The 

printing and binding revenue is based on 

a system of rates, prices, and surcharges 

designed to recover costs. The revenue for 

printing and binding originate from the 

programs and operations of five business 

units at GPO: Plant Operations, Official 

Journals of Government, Security and 

Intelligent Documents, Print Procurement, 

and Creative and Digital Media Services. 

The revenue earned from jobs produced 

by GPO employees is generally recognized on a value-added basis, as work is 

performed. Revenue from contracted jobs 

is generally recognized on the date that 

contract requirements are fulfilled, i.e., 

the date finished products are shipped 

by the contractor to the customer agency. 

Revenues from the production of passports for the State Department are recognized at negotiated rates per passport at 

the time that the manufacturing process is 

completed.

Plant Operations generated revenue 

of $156.9 million in fiscal 2009 compared 

with revenue of $157.6 million in fiscal 2008. This represents a decrease of 

$700,000 (0.4 percent). Revenue was generated from the production of paper and 

electronic versions of the Congressional 

Record and all other legislative materials, 

as well as other documents including the 

Federal Register and the Code of Federal 

Regulations.

Official Journals of Government generated revenue of $10.0 million in fiscal 

2009 compared to fiscal 2008 revenue of 

$9.2 million. This represents an $800,000 

increase (8.7 percent). Revenue generated 

by providing administrative services to 

the U.S. Congress increased by $900,000 

from $3.8 million in fiscal 2008 to $4.7 

million in fiscal 2009, while revenue from 

employees (printing specialists) detailed to 

House and Senate Committees decreased 

Section I: Management’s Discussion and Analysis

by about $180,000 from $3.03 million in 

fiscal 2008 to $2.85 million in fiscal 2009.

Overall revenue for the Security and 

Intelligent Documents (SID) business 

unit decreased to $173.6 million in fiscal 

2009 from $300.6 million in fiscal 2008, or 

$127.0 million (42.2 percent). SID’s major 

product is the electronic passport, which 

was introduced in fiscal 2007. As a result of 

new travel regulations requiring the use of 

electronic passports, the U.S. Department 

of State ordered unprecedented quantities 

of electronic passports from GPO in fiscal 

years 2007 and 2008. Demand diminished 

in fiscal year 2009, which caused a steep 

decline in SID revenue. GPO produced 

10.6 million electronic passports in fiscal 

2009, compared to 23.6 million electronic 

passports in fiscal 2008, a reduction of 55 

percent. The resulting electronic passport 

revenue dropped from $298.3 million in 

fiscal 2008 to $160.5 million in fiscal 2009, 

a decrease of $137.8 million (46.2 percent). 

SID revenue in fiscal 2009 for the new 

Trusted Traveler and other secure credentials for the U.S. Department of Homeland 

Security increased from $1.3 million in 2008 

to about $9.8 million in 2009, an increase 

of $8.5 million.

Print Procurement revenue increased 

$20.3 million (3.9 percent) from $524.8 

million in fiscal 2008 to $545.1 million in 

fiscal 2009. Procured printing and binding 

revenue increased approximately $25.2 

million (5.3 percent) predominantly due to 

new orders placed by the U.S. Department 

of Defense, the U.S. Department of 

the Treasury, the U.S. Department of 

Health and Human Services, and the 

U.S. Department of Commerce. Revenue 

from the popular GPOExpressSM program 

increased $1 million, from $6.5 million to 

$7.5 million. The increase in revenue was 

offset by a decrease in the reimbursable 

postage program of $5.2 million, from 

$11.4 million to $6.2 million, caused by a 

reduction in agency orders for this service.

Creative and Digital Media Services 

revenue was $5.6 million in fiscal 2009 

compared with $4.2 million in fiscal 2008, 

an increase of $1.4 million (33.3 percent). 

Revenue increased primarily due to several large Web site development projects 

during fiscal 2009.

n Appropriation Revenues

The GPO receives annual, no-year, and 

multi-year appropriations from Congress 

to finance certain costs in accordance 

with the underlying appropriation act 

and enabling legislation. The Legislative 

Branch Appropriations Act, 2009 (Public 

Law 111-8, March 11, 2009) made a total 

of $140.6 million in annual appropriations 

available to the Agency for fiscal 2009.

Revenue earned from appropriations 

provided to the Agency totaled $119.2 

million for fiscal 2009 and $130.1 million 

for fiscal 2008. The decrease in appropriation revenue of $10.9 million (8.4 percent) 

is primarily due to a decrease in revenue 

from Revolving Fund and Congressional 

Printing and Binding Appropriations.

Revenue from appropriations to the 

Revolving Fund was $6.9 million in fiscal 

2009 compared to $14.5 million in fiscal 

2008, a decrease of $7.6 million (52.4 

percent). This revenue is a reimbursement 

of qualifying expenses and is recognized 

when the appropriated funds are made 

available and the qualifying expenses are 

incurred. In fiscal 2009, fewer Revolving 

Fund appropriated funds were available 

than in fiscal 2008, so fewer reimbursable 

expenses qualified. In fiscal 2009, available funds were $6.4 million at the start 

of the year, compared to $19.7 million at 

the start of fiscal 2008. In fiscal 2009, the 

$6.9 million recognized as revenue related 

to qualifying expenses of $3.0 million for 

prior year appropriation shortfalls, $2.3 

million for roof, elevator repairs, and 

infrastructure improvements, $1.0 million 

for FDsys development, and $600,000 for 

workforce retraining. In fiscal 2008, the 

$14.5 million recognized as revenue related to qualifying expenses of $6.9 million 

for prior year appropriation shortfalls, $6.5 

million for FDsys development, $700,000 

for workforce retraining, and $400,000 for 

infrastructure improvements. 

Revenue from the CP&B Appropriation 

was $80.8 million in fiscal 2009 compared 

to $83.9 million in fiscal 2008, a decrease 

of $3.1 million (3.7 percent). The annual 

CP&B Appropriation is used to fund 

printing and binding provided to Congress 

by the Plant Operations business unit and 

services provided by the Official Journals 

of Government business unit. The revenue 

decrease was mainly due to a decline in 

the number of Congressional Record pages 

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 7
produced (approximately 25,000 in fiscal 

2009 versus 35,000 in fiscal 2008). As a result, revenue related to the Congressional 

Record decreased by about $3.7 million, 

to $20.2 million in fiscal 2009 from $23.9 

million in fiscal 2008. 

The requirements of Congress for 

printing and other services requisitioned 

from GPO fluctuate because of many variables and cannot be precisely forecasted 

for budgeting purposes. Despite the 

decrease in CP&B expenditures in fiscal 

2009 (when compared to fiscal 2008), 

the fiscal 2009 CP&B appropriation was 

estimated to have a shortfall in funding of 

about $1.6 million. Generally, the CP&B 

Appropriation has been adequate to cover 

the costs of GPO services to Congress. 

However, in years when the Congressional 

printing requirements exceed the annual 

funding provided by Congress, GPO uses 

the Revolving Fund to temporarily fund 

the shortfall until sufficient appropriated 

funds are available. 

The S&E Appropriation provided 

revenues of $31.9 million in fiscal 2009 

and $31.7 million in fiscal 2008. The S&E 

Appropriation is provided annually by 

Congress to fund the dissemination of 

Federal Government information to the 

public by GPO’s Library Services and 

Content Management business unit.

n Sales of Publications Revenu

GPO earns revenues from the sales of 

publications to the public and others. The 

Publication and Information Sales Program 

sells publications, subscriptions, and other 

Federal Government information products 

at prices designed to recover costs. The 

demand for printed products continues to 

decline due to expansion in the availability of free information from the Federal 

Government on the Internet.

Revenue from the sale of publications 

totaled $14.1 million for fiscal 2009 and 

$15.9 million for fiscal 2008. The decline 

in publications revenue of $1.8 million 

(11.3 percent) reflects the general trend 

of a 10 to 15 percent decline in revenue 

experienced by publishers nationwide due 

to the recession.

n Agency Distribution Revenu

GPO earns revenue from Federal agencies 

for the storage, packaging, and distribution of Federal Government publications to the public and others. Agency 

Distributions provides these services on 

a cost reimbursement basis, at rates and 

prices designed to recover costs. Revenue 

from Agency Distributions totaled $5.9 

million for fiscal 2009 and $5.8 million for 

fiscal 2008. This represents an increase 

in revenue of $100,000 (1.7 percent). 

Revenue for this program fluctuates 

because of the varying level of demand 

for services from customers over time. 

Consolidated Expenses

GPO incurred total consolidated operating expenses, before other operating 

expenses, of $932.8 million for fiscal 

2009 and $995.8 million for fiscal 2008, a 

decrease of $63.0 million (6.3 percent). 

The decrease in operating expenses is due 

primarily to the reduction in the demand 

for electronic passports that resulted 

in a decrease in costs for supplies and 

materials. A similar increase in the printing 

and reproduction expenses of the Print 

Procurement business unit was realized 

to support the business unit’s revenue 

growth. A brief description of the major 

expense categories for the Agency follows.

n Printing and Reproduction Expenses

GPO incurred expenses for printing and 

reproduction of $497.8 million for fiscal 

2009 and $470.5 million for fiscal 2008. 

This represents an increase in printing and 

reproduction expenses of $27.3 million 

(5.8 percent). Of the increase, $26.7 million 

was attributable to increased purchases 

of printing from private sector contractors by the Print Procurement business 

unit. The Library Services and Content 

Management business unit purchases and 

distributes Government publications to the 

1,240 Federal depository libraries located 

throughout the United States. Printing and 

reproduction expenses for this business 

unit decreased to $9.2 million in fiscal 2009 

from $10.1 million in fiscal 2008, a decrease 

of $900,000 (8.9 percent).

n Personnel Compensation 

 and Benefits Expenses

GPO incurred expenses for personnel compensation and benefits of $234.6 million 

during fiscal 2009 and $224.3 million during 

fiscal 2008. This represents an increase 

in personnel compensation and benefit 

expenses of $10.3 million (4.6 percent). 

The increase is mostly due to annual pay 

increases that typically occur in January. 

n Supplies and Materials Expenses

The supplies and materials expense group 

includes production related paper and 

materials, general office supplies, and 

equipment, furniture, and vehicle purchases that were expensed because they 

did not meet the Agency’s capitalization 

threshold. The Security and Intelligent

Documents and Plant Operations business units operate production facilities 

that incur significant costs for supplies, 

materials, and paper. Agency expenses for 

supplies and materials were $110.8 million 

in fiscal 2009 and $214.8 million in fiscal 

2008. This represents a decrease of $104.0 

million (48.4 percent). The decrease corresponds to the 46.2 percent decrease in 

revenue from electronic Passports. 

n Other Services Expenses

This expense category includes the cost 

of professional services provided by 

contractors for consulting, system development, maintenance of equipment, audits, 

investigations, and employee training. 

These expenses are recognized when 

services ordered have been performed. 

GPO incurred expenses for these services 

of $34.1 million for fiscal 2009 and $29.7 

million for fiscal 2008. This represents an 

increase of $4.4 million (14.8 percent). 

The increase was primarily due to a $2.6 

million increase in maintenance expenses, 

a $700,000 increase in consulting and 

other professional services, and a $1.5 

million decrease in bad debt expense. 

Fiscal 2009 also included a reduction 

of $1.4 million for warranty expense as 

compared to a warranty expense reduction of $3.4 million in fiscal 2008. These 

reductions are due to a write down of the 

future estimated warranty liability in both 

years as a result GPO no longer expecting 

future claims for passports produced as a 

result of not having any claims in FY2007 

through FY2009.

Section I: Management’s Discussion and Analysis

8 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009
n Depreciation and 

 Amortization Expense

Total depreciation and amortization 

expense for fiscal 2009 was $17.2 million 

compared with $10.4 million in fiscal 2008. 

The increase in depreciation and amortization expense is primarily the result 

of placing FDsys into service in January 

2009, and placing the new Secure Passport 

Facility (SPF) into service in the middle of 

fiscal 2008. FDsys depreciation was $3.5 

million in fiscal 2009 and SPF depreciation 

was $3.4 million in fiscal 2009 compared 

to $917,000 in fiscal 2008.

n Rents, Communications, 

and Utilities Expenses

This expense group includes rents for 

building space outside of Washington, 

DC, leased equipment and vehicles, and 

utilities. GPO incurred expenses for rents, 

communications, and utilities of $17.6 million for fiscal 2009 and $16.5 million for 

fiscal 2008. This represents an increase of 

$1.1 million (6.7 percent). The increase is 

due primarily to a $600,000 increase in the 

cost of electricity and a $600,000 increase 

in the cost of steam.

n Travel, Transportation, and Postage 

 Expenses

This expense category includes the 

cost of employee travel and relocation, 

commercial transportation and delivery 

services, and postage (including postage 

reimbursable from customer agencies), 

and commercial mailing services. GPO 

incurred expense for travel, transportation, 

and postage of $15.9 million for fiscal 

2009 and $23.7 million for fiscal 2008. 

This represents a decrease of $7.8 million 

(32.9 percent). The decrease is primarily 

due to a decrease in reimbursable postage 

expenses of $4.6 million, and a decrease 

in other mailing expenses of $1.3 million. 

Both decreases are the result of a decline 

in orders that utilize these methods of 

shipping.

n Publications Sold Expenses

This expense is incurred when GPO’s 

Publication and Information Sales business 

unit sells publications, subscriptions, and 

other Federal Government information 

products to customers. This expense 

totaled $4.8 million in fiscal 2009 compared 

to $5.9 million in fiscal 2008. The decrease 

was the result of fewer publication sales. 

Changes in Retained Earnings

GPO’s retained earnings decreased by 

$4.0 million to $150.4 million at the end 

of fiscal 2009, compared to about $154.4 

million at the end of fiscal 2008. The 

decrease results from GPO’s net loss for 

fiscal 2009.

Consolidated Statements 

of Cash Flows

The consolidated statements of cash flows 

present the Agency’s cash position at 

the beginning and end of the reporting 

period, and the sources and uses of cash 

for all operating, investing, and financing 

activities. 

Fund Balance with Treasury (cash) 

decreased by $9.1 million during fiscal 

2009 compared with a decrease of $8.2 

million in fiscal 2008. The decrease in cash 

during fiscal 2009 is primarily the result of 

the following.

n	 In fiscal 2009, GPO used $53,000 in 

operations compared to providing 

$44.5 million from operations in fiscal 

2008. This is mainly attributable to a 

decrease in net income, as discussed 

in previous pages.

n	 Cash invested in capital assets was 

$30.0 million in fiscal 2009 compared 

with $47.2 million in fiscal 2008, a 

decrease of $17.2 million. Fiscal 2008 

included substantial capital investments for the construction of facilities 

and the purchase of equipment for the 

SPF of $24.7 million. No projects of 

this magnitude occurred in fiscal 2009 

when capital investments returned to 

previous levels.

n	 Financing activities provided $21.0 million in cash in fiscal 2009, compared 

with using $5.5 million in fiscal 2008. 

In fiscal 2009, GPO had cash provided 

from unexpended appropriations of 

$67.7 million compared to $46.8 million in fiscal 2008.

Performance Measures

GPO gauges its overall efficiency and 

effectiveness using certain performance 

measures. Generally, these performance 

measures are based on established 

standards, goals, or objectives that are 

compared against actual performance or 

results for each fiscal year. The following 

sections discuss the major operating performance measures and financial performance measures used by the Agency.

Operating Performance Measures

On-Time Delivery of 

Congressional Record

The Congressional Record is the official 

record of the proceedings and debates of 

the U.S. Congress. This important Federal 

information product is published daily 

when Congress is in session. GPO uses a 

performance measure to evaluate the timeliness of the delivery of this core product 

to Congress. To measure GPO’s success 

in delivering the Congressional Record 

to Congress on-time, GPO established a 

deadline of 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 99.4 percent for 

fiscal 2009 and 96 percent for fiscal 2008. 

The Agency’s goal of 95 percent or better 

was achieved for fiscal 2009. The goal will 

remain the same for fiscal 2010.

On-Time Delivery and Quality 

Acceptance of Procured Printing

Print Procurement contracted with commercial businesses to produce and ship 

104,000 jobs for GPO customers in fiscal 

2009. For fiscal 2009, the goals were to 

have at least 95 percent of procured printing orders delivered on schedule and a 

quality acceptance rate of at least 99 percent. Print Procurement met both of these 

goals for fiscal 2009, with 96.7 percent 

of procured printing jobs delivered on 

time and a quality acceptance rate of 99.7 

percent. In comparison, GPO contractors 

shipped 104,600 jobs in fiscal 2008, with 

96.1 percent of the procured printing jobs 

delivered on time and a quality acceptance rate of 99.5 percent. The two goals 

will remain the same for fiscal 2010.

Section I: Management’s Discussion and Analysis

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 9
10 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

Orders placed at GPO have decreased 

over the last two years due, in part, to the 

success of the GPOExpressSM Program. 

This program enables Federal customers 

to purchase small printing jobs directly 

from a nationwide contractor, without 

sending the order to GPO. For fiscal 2009, 

customers used GPOExpressSM to place 

15,200 orders to purchase $7,534,000 in 

convenience printing jobs locally without going through GPO. In fiscal 2008, 

customers placed about 12,100 orders to 

purchase $6,454,000 in convenience printing jobs through this program. 

Financial Performance Measures

Cash Management

Payment Performance 

In fiscal 2009, GPO continued to save 

millions of dollars by taking favorable 

prompt payment discounts offered by 

contractors for the payment of invoices 

within the discount period. GPO earned 

prompt payment discounts of $6.1 million 

on purchased printing expense of $500.9 

million. In comparison, GPO earned $6.4 

million in discounts on $475.7 million in 

printing expenses last year. The average 

discount rate earned was 1.22 percent 

for fiscal 2009 and 1.35 percent for fiscal 

2008. The average discount rate earned 

for fiscal 2009 was short of the goal of 

1.4 percent. The goal will be the same for 

fiscal 2010.

Lost prompt payment discounts 

increased to $1,077,000 in fiscal 2009 from 

$363,000 in fiscal 2008. The percentage 

of discounts lost to discounts offered was 

15.0 percent, as compared to 5.4 percent 

in 2008. The increase in discounts lost was 

a result of normal post-implementation 

issues experienced by the implementation of GBIS on May 1, 2009 that caused 

delayed contractor payments. The majority 

of payment issues were fully resolved by 

year-end. GPO did not meet its goal of 

2.5 percent but will strive to achieve it in 

fiscal 2010. 

Section I: Management’s Discussion and Analysis

Electronic Payments 

Electronic Funds Transfer (EFT) is the 

most secure, efficient, and economical 

method of making payments to GPO 

contractors, employees, and other nonFederal entities. While it costs the U.S. 

Government $.89 to issue each check 

payment, the cost is only $.09 to issue an 

EFT payment. In fiscal 2009, 78.4 percent 

of all payments were made by EFT. In 

comparison, about 80.4 percent of all payments were made by EFT in fiscal 2008. 

While the Agency’s EFT payments did not 

meet the goal of 90 percent for fiscal 2009, 

GPO will work closely with vendors to 

increase EFT participation rates and strive 

to achieve that goal for fiscal 2010. 

Debt Management

Federal Receivables 

GPO billed customers about $934.1 million 

for printing and binding services during 

fiscal 2009. The U.S. Department of the 

Treasury’s Intra-governmental Payment 

and Collection (IPAC) System was used to 

collect about $673.3 million or 72.0 percent 

of this debt from customers. Additionally, 

about $64.7 million or 6.9 percent of this 

debt, was collected from funds held in 

customer Printing and Binding Deposit 

Accounts maintained by GPO. Furthermore, 

$13.4 million, or 1.4 percent of this debt, 

was collected via credit card. These 

electronic-based methods allow the prompt 

collection of funds, as opposed to the 

more traditional methods of collection that 

require the creation and exchange of paper 

documents and checks through the mail.

GPO’s billed accounts receivable from 

Federal Government customers totaled 

approximately $51.8 million at the end of 

fiscal 2009, compared with $47.4 million 

at the end of fiscal 2008. In comparison, 

the billed accounts receivable increased 

by $4.4 million. The fiscal year 2009 billed 

accounts receivable amount includes $19.5 

million that was collected on the first 

Treasury IPAC cycle in October. At the end 

of fiscal 2008, this amount was $8.5 million.

IPAC collections initiated by GPO are 

sometimes charged back by Federal agencies, the customers, for various reasons. 

In these instances, GPO contacts the 

customer and inquires about the reason(s) 

for non-payment of the indebtedness. In 

most instances, the customer’s financial 

representative requires additional information and supporting documentation on 

the billing before the IPAC collection is 

allowed. IPAC charge backs, included in 

accounts receivable, totaled approximately 

$16.4 million at the end of fiscal 2009 and 

$19.2 million at the end of fiscal 2008. 

The U.S. Department of Defense 

(DoD) is GPO’s second largest customer 

and largest debtor. Exclusive of IPAC 

charge backs, DoD owed GPO about $6.9 

million at September 30, 2009, of which 

$6.4 million, or 92.8 percent, was past due 

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

owed $921,000 for invoices between 31 

to 60 days old, $851,000 between 61 to 

90 days old, and about $4.6 million over 

90 days old. DoD’s indebtedness to GPO 

of $4.6 million represents 13.3 percent of 

GPO’s total billed accounts receivables of 

$34.7 million, over 90 days old, at yearend. At September 30, 2008, DoD owed 

$7.3 million to GPO. 

At the end of the year, GPO maintained 

937 Printing and Binding deposit accounts 

valued at $92.2 million. Additionally, 

GPO held $3.1 million in customer deposit 

accounts for the Publication and 

Information Sales Program. Combined, 

these customer deposit accounts totaled 

about $95.3 million as of September 

30, 2009. At September 30, 2008, GPO 

maintained $86.3 million in these two 

customer deposit accounts ($82.9 million 

and $3.4 million, respectively). The $9.0 

million increase is primarily attributable 

to new customers, more accounts, and 

existing customers increasing their account 

balances. 

Customer agencies have the option 

of paying for their printing and binding 

needs by credit card. Credit card receipts 

in fiscal 2009 totaled $13.4 million for 

11,294 printing jobs. In comparison, 

credit card receipts totaled $18.8 million 

for 24,654 printing jobs in fiscal 2008. 

This decrease in credit card receipts of 

$5.4 million and 13,360 printing jobs was 

mainly due to a revised business process 

that delays credit card charges until all job 

costs are collected. 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 11

Possible Future Effects of Existing 

Events and Conditions

Several events and conditions may have 

an impact on the Agency’s programs and 

operations in the future. A synopsis of 

each of these conditions follows.

Demand for Security and Intelligent 

Documents 

The continued production of security and 

intelligent documents, such as electronic 

Passports, and the development of new 

security documents such as Federal 

identification cards will be vital to GPO’s 

success. Demand for electronic Passports 

is estimated at 11.0 million in 2010. GPO 

produced 10,553,400 electronic Passports 

in fiscal 2009 and 23,580,900 electronic 

passports in fiscal 2008. 

Demand growth is expected for sensitive documents, such as smartcards, immigration forms, Public Key Infrastructure 

(PKI) electronic certificates for credentialing, and traditional and embedded 

electronics security documents.

Possible Federal Appropriation 

Reductions 

Printing and duplicating are generally considered a discretionary cost for 

Federal customers. Possible future budget 

reductions and restrictions on growth may 

impact the availability of funds for Federal 

Government printing and duplicating.

Decline in Ink-on-Paper Products 

GPO continues to manufacture and sell a 

sizable array of Federal Government information products. The upward trend in 

Government electronic documents available on the Internet, and a subsequent 

downward trend in customer demand for 

printed documents will continue to place 

downward pressure on in-plant revenues 

and publication sales.

Some Plant Operations core ink-onpaper products, such as the Congressional 

Record or the Federal Register, have 

shorter production runs than in the 

past because these products are now 

available on-line. However, the demand 

for documents printed to support the 

legislative business of Congress, such as 

Bills, Hearings, Reports, Committee Prints, 

remains strong. 

Plant Operations is committed to 

capitalize on efficiencies in operations, 

advanced printing technologies, and the 

ability to satisfy requirements unique to 

Federal customers in order to provide best 

value. 

After many years of revenue declines, 

the Publication and Information Sales 

Program business unit generated a positive 

contribution margin for a second consecutive year. The major management focus in 

this business unit has been to identify market segments for the program’s vast product 

offerings, to employ focused advertising, 

and to provide better customer service 

to a niche customer base. This effort has 

stabilized the revenue decline and, when 

combined with further operating expense 

reductions, has created a turnaround for 

the program. However, operational efficiencies will need to improve continuously to 

maintain positive operating margins.

Fiscal Year 2010 

Financial Projections

Congress established the GPO Revolving 

Fund to finance the operations of the 

Agency on July 1, 1953. The receipts and 

disbursements from the Agency’s continuing cycle of business-type operations are 

recorded in the GPO Revolving Fund 

that was established to be financially 

self-sustaining.

The Agency’s overall financial objective has been to earn revenue sufficient to 

recover all costs, including depreciation 

and overhead, in accordance with Section 

309 of U.S.C. Title 44. This is accomplished through a system of rates, prices, 

and surcharges used to bill customers for 

goods delivered and services performed 

by the Agency. 

In fiscal 2009, the Agency realized 

a net gain of $1.2 million, before other 

operating expenses. Overall, including 

the long-term workers’ compensation 

adjustment which is excluded from GPO’s 

rate-setting process, and the one-time 

charge for an asset impairment, GPO lost 

$4.1 million. Achievement of the Agency’s 

fiscal 2010 operating plan would result in 

net income of $1.5 million.

The Agency’s continued transformation, customer demand for secure and 

intelligent documents, and other management initiatives completed and underway 

have put GPO’s operations back on sound 

footing, both organizationally and financially. The Agency’s recent overall positive 

trend in financial performance is expected to continue in fiscal 2010. Positive 

financial results help ensure that the 

GPO Revolving Fund remains financially 

self-sustaining as Congress intended and 

that GPO can continue Keeping America 

Informed.

Section I: Management’s Discussion and Analysis
SECTION II

Inspector 

General’s Report

12 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009
24

MEMORANDUM 

GB ~.• U.S. GOVERNMENT PRINTING OFFICE 

'fiiiii4....;.JC'• 0 F F I C E 0 I· l I\ S I' E C 'l 0 R G E !\ E R A L 

Date 

January 8, 2010 

To 

Public Printer 

From 

Inspector General 

Subject 

Report on the Consolidated Financial Statement Audit of the 

Government Printing Office for Fiscal Years Ended 

September 30, 2009 and 2008 

Report Number 10-02 

This report contains the audit of the annual consolidated financial 

statements of the Government Printing Office (GPO) as of the fiscal years 

(FY) ended September 30, 2009 and 2008. We contracted with the 

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

consolidated balance sheet; statement of revenue and expenses; and 

statement of cash flows for the years then ended. The audits were 

conducted in accordance with auditing standards generally accepted in the 

United States; and the standards applicable to financial audits contained in 

Government Auditing Standards (GAS), issued by the Comptroller General of 

the United States. 

Results of Independent Audit 

KPMG expressed an unqualified opinion on the GPO consolidated financial 

statements as of the FYs ended September 30, 2009, and 2008, by 

concluding that the GPO financial statements were fairly presented, in all 

material respects, in conformity with generally accepted accounting 

principles (GAAP). KPMG's consideration of internal control over financial 

reporting resulted in two significant deficiencies!, which KPMG did not 

1 A significant deficiency is a deficiency, or combination of deficiencies, in internal control 

that is less severe than a material weakness, yet important enough to merit attention by 

those charged with governance. A material weakness is a deficiency, or combination of 

deficiencies, in internal control, such that there is a reasonable possibility that a material 

misstatement of the entity's financial statements will not be prevented, or detected and 

corrected on a timely basis. 

Keeping America Informed 1 www.gpo.gov/olg 

GPO Form 731A 

(R9·07) 
14 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

25

Public Printer 

Report 10-02 

January 8, 2010 

Page 2 ofS 

consider to be material weaknesses. Details on these two deficiencies, 

which were in the areas of financial reporting, and information technology 

are as follows: 

1. Financial Reporting Controls 

KPMG identified the following significant deficiencies related to financial 

reporting controls. 

• Review and Reporting of General Property, Plant and 

Equipment. GPO recorded additions to General Property, Plant and 

Equipment (PP&E) in its subsidiary ledger and general ledger based 

on when cash disbursements were made for the assets instead of 

recording the PP&E when it was received and accepted by GPO. In 

addition, GPO recorded two advance payments totaling 

approximately $4.6 million as PP&E instead of as an advance. 

• Certain Reconciliation Controls. Certain key reconciliations in the 

areas of expenses, unbilled accounts receivable, accounts payable 

and deposit accounts were not always performed timely and when 

performed, differences noted were not consistently investigated and 

resolved in a timely manner. 

• Controls over Compilation of Statement of Cash Flows. Cash 

flows from operating activities and investing activities in the draft 

statement of cash flows were each initially misstated by 

approximately $3.7 million as a result of GPO misclassifying certain 

investing cash flows as operating activities. This mi~classification 

was corrected in the final statement of cash flows. 

2. Information Technology (IT) General and Application Controls 

During FY 2009, deficiencies in the design and/or operations of GPO's IT . 

general and application controls were noted in security management, access 

controls, configuration management, and contingency planning. The details 

of these conditions, several of which have been reported to management in 

prior years' audit reports, are as follows: 

• Security Management. GPO made progress in FY 2009 to formalize 

GPO's established information security objectives and high level 

policy. However, KPMG noted the following conditions: 

o GPO's Business Information System (GBIS) and General 

Support System (GSS) have not received full authority to 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 15

26

Public Printer 

Report 10-02 

January 8, 2010 

Page 3 ofS 

operate in GPO's production environment. During the 

certification and accreditation process, conditions were 

identified that resulted in the issuance of an Interim Authority 

to Operate (IATO). Those conditions were not remediated as 

of September 30, 2009. KPMG also observed that: (i) the 

security plan for GBIS contained information that did not 

adequately reflect current processes in the GBIS environment, 

(ii) a section of the security plans for both GBIS and the GSS 

was incomplete, and (iii) elements of the risk assessment for 

the GSS were incomplete. 

o Security awareness policies and procedures were not 

consistently enforced. 

o The Memorandum of Understanding (MOU) that governs the 

development, management, operation, and security of the 

connection between the National Finance Center (NFC), GPO's 

payroll processor, and GPO's hosted system at Oracle's data 

center expired in March 2009 and has not been extended or 

reaffirmed. 

o GPO did not implement procedures to review and update its 

Plans of Action and Milestones (POA&M) for IT security 

weaknesses on a quarterly basis. 

o GPO's process for identifying, recording, and maintaining its 

system inventory has not produced a comprehensive, current 

inventory of both minor and major systems as well as related 

hardware and peripherals. 

• Access Controls. KPMG noted the following access controls 

deficiencies: 

o GPO management was not consistently following documented 

policies and procedures for granting and reviewing access to 

the data center. 

o Access to GBIS was not appropriately restricted and 

monitored. 

o GPO did not have adequate user identification controls to 

verify the identity of users during phone calls requesting 

password resets from the Information Technology and 

Support (IT&S) Help Desk. 
16 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

27

Public Printer 

Report 10-02 

January 8, 2010 

Page 4 ofS 

o Comprehensive policies and procedures for granting access to 

the Local Area Network (LAN) had not been developed and 

formally documented. 

o The GPO Computer Security Incident Response Team (CSIRT) 

Framework and Procedures did not fully address the elements 

outlined in National Institute of Standards and Technology 

(NIST) Special Publication (SP) 800-61, Computer Security 

Incident Handling Guide. 

• Configuration Management. KPMG noted that the development 

and implementation of configuration changes for GBIS did not adhere 

to strict project management and configuration management 

practices. In addition, during FY 2009, GPO management continued 

the development of a desktop patch management plan which started 

in FY 2008. However, GPO has not been able to complete the 

implementation of the patch management plan and process. 

• Contingency Planning. GPO did not have a completed contingency 

plan for its GSS that would allow the complete recovery of operations 

in the event of a major disaster or outage. The IT&S contingency plan 

and strategy for the GSS was in the process of development. 

Additionally, GPO IT&S lacked standard operating procedures for 

several of its routine and critical processes including media backup 

and off-site storage, and LAN configuration management. 

KPMG disclosed no instances of noncompliance with certain provisions of 

laws, regulations and contracts or other matters that are required to be 

reported under GAS. 

Evaluation and Monitoring of Audit Performance 

We reviewed the KPMG audit of the GPO consolidated financial statements 

by: 

• Evaluating the independence, objectivity, and qualifications of the 

auditors and specialists; 

• Reviewing the approach of and planning for the audit; 

• Attending key meetings with auditors and GPO officials; 

• Monitoring the audit progress; 

• Examining audit documentation; 

• Reviewing the auditors' reports; and 

• Reviewing the financial statements and associated footnotes. 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 17

28

Public Printer 

Report 10-02 

January 8, 2010 

Page 5 of5 

KPMG is responsible for the attached reports dated January 8, 2010, and the 

conclusions expressed in the reports. Our review, as differentiated from an 

audit in accordance with GAS, was not intended to enable us to express, and 

accordingly we do not express, an opinion on GPO's financial statements, the 

effectiveness of internal controls, or compliance with laws and regulations. 

However, our monitoring review, as limited to the procedures listed above, 

disclosed no instances in which KPMG did not comply, in all material 

respects, with GAS. 

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

hesitate to contact me, or Mr. Kevin Carson, Assistant Inspector General for 

Audits and Inspections, at (202) 512-2009 or through email at 

kcarson@gpo.gov. 

J. Anthony Ogden 

Inspector General 

Attachment 

cc: 

Deputy Public Printer 

Chief Management Officer 

Acting Chief of Staff 

Acting General Counsel 
SECTION III

Independent

Auditors’ Report

18 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 19

KPMG LLP 

2001 M Street, NW 

Washington, DC 20036 

30

KPMG LLP, a U.S. limited liability partnership, is the U.S. 

member firm of KPMG International, a Swiss cooperative. 

Independent Auditors’ Report 

The Public Printer 

United States Government Printing Office: 

We have audited the accompanying consolidated balance sheets of the United States Government Printing 

Office (GPO) as of September 30, 2009 and 2008, and the related consolidated statements of revenues, 

expenses, and changes in retained earnings and cash flows (hereinafter referred to as “consolidated 

financial statements”) for the years then ended. The objective of our audits was to express an opinion on 

the fair presentation of these consolidated financial statements. In connection with our fiscal year 2009 

audit, we also considered GPO’s internal control over financial reporting and tested GPO’s compliance 

with certain provisions of applicable laws, regulations, and contracts that could have a direct and material 

effect on these consolidated financial statements. 

Summary 

As stated in our opinion on the consolidated financial statements, we concluded that GPO’s consolidated 

financial statements as of and for the years ended September 30, 2009 and 2008, are presented fairly, in all 

material respects, in conformity with U.S. generally accepted accounting principles. 

As discussed in our opinion on the consolidated financial statements, in fiscal year 2009, GPO adopted 

new accounting and reporting requirements for subsequent events and the measurement of financial assets 

and liabilities. 

Our consideration of internal control over financial reporting resulted in identifying certain deficiencies 

that we consider to be significant deficiencies, as follows:

A. Financial Reporting Controls 

B. Information Technology General and Application Controls 

We did not identify any deficiencies in internal control over financial reporting that we consider to be 

material weaknesses as defined in the Internal Control over Financial Reporting section of this report. 

The results of our tests of compliance with certain provisions of laws, regulations, and contracts disclosed 

no instances of noncompliance or other matters that are required to be reported herein under Government

Auditing Standards, issued by the Comptroller General of the United States. 

The following sections discuss our opinion on GPO’s consolidated financial statements; our consideration 

of GPO’s internal control over financial reporting; our tests of GPO’s compliance with certain provisions 

of applicable laws, regulations, and contracts; and management’s and our responsibilities. 

Opinion on the Financial Statements 

We have audited the accompanying consolidated balance sheets of the United States Government Printing 

Office as of September 30, 2009 and 2008 and the related consolidated statements of revenues, expenses, 

and changes in retained earnings and cash flows for the years then ended. 
20 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 31

In our opinion, the consolidated financial statements referred to above present fairly, in all material 

respects, the financial position of the United States Government Printing Office as of September 30, 2009 

and 2008, and the results of its operations and its cash flows for the years then ended, in conformity with 

U.S. generally accepted accounting principles. 

As discussed in Notes 1-P and 1-R to the consolidated financial statements, GPO has adopted the 

provisions of Financial Accounting Standards Board Accounting Standards Codification (ASC) 820-10, 

Fair Value Measurements and Disclosures, and ASC 855-10, Subsequent Events, effective October 1, 

2008 and September 30, 2009, respectively. 

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

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

purposes of additional analysis and is not required as part of the consolidated financial statements. This 

information has not been subjected to auditing procedures and, accordingly, we express no opinion on it. 

Internal Control over Financial Reporting 

Our consideration of the internal control over financial reporting was for the limited purpose described in 

the Responsibilities section of this report and was not designed to identify all deficiencies in the internal 

control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. 

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, or 

detect and correct misstatements on a timely basis. A significant deficiency is a deficiency, or a 

combination of deficiencies, in internal control that is less severe than a material weakness, yet important 

enough to merit attention by those charged with governance. A material weakness is a deficiency, or 

combination of deficiencies, in internal control, such that there is a reasonable possibility that a material 

misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a 

timely basis. 

In our fiscal year 2009 audit, we did not identify any deficiencies in internal control over financial 

reporting that we consider to be material weaknesses as defined above. However, we identified certain 

deficiencies in internal control over financial reporting that we consider to be significant deficiencies and 

that are described in Exhibit I. Exhibit II presents the status of the prior year material weakness and 

significant deficiencies. 

We noted certain additional matters that we have reported to management of GPO in a separate letter dated 

January 8, 2010.

Compliance and Other Matters 

The results of our tests of compliance as described in the Responsibilities section of this report disclosed 

no instances of noncompliance or other matters that are required to be reported herein under Government

Auditing Standards.

* * * * * * * 

Responsibilities

Management’s Responsibilities. Management is responsible for the consolidated financial statements; 

establishing and maintaining effective internal control; and complying with laws, regulations, and contracts 

applicable to GPO. 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 21 32

Auditors’ Responsibilities. Our responsibility is to express an opinion on the fiscal year 2009 and 2008 

consolidated financial statements of GPO based on our audits. We conducted our audits in accordance with 

auditing standards generally accepted in the United States of America; and the standards applicable to 

financial audits contained in Government Auditing Standards, issued by the Comptroller General of the 

United States. Those standards require that we plan and perform the audits to obtain reasonable assurance 

about whether the consolidated financial statements are free of material misstatement. An audit includes 

consideration of internal control over financial reporting as a basis for designing audit procedures that are 

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of 

GPO’s internal control over financial reporting. Accordingly, we express no such opinion. 

An audit also includes: 

• Examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated 

financial statements; 

• Assessing the accounting principles used and significant estimates made by management; and 

• Evaluating the overall consolidated financial statement presentation. 

We believe that our audits provide a reasonable basis for our opinion. 

In planning and performing our fiscal year 2009 audit, we considered GPO’s internal control over financial 

reporting by obtaining an understanding of GPO’s internal control, determining whether internal controls 

had been placed in operation, assessing control risk, and performing tests of controls as a basis for 

designing our auditing procedures for the purpose of expressing our opinion on the consolidated financial 

statements. The objective of our audit was not to express an opinion on the effectiveness of GPO’s internal 

control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of GPO’s 

internal control over financial reporting. 

As part of obtaining reasonable assurance about whether GPO’s fiscal year 2009 consolidated financial 

statements are free of material misstatement, we performed tests of GPO’s compliance with certain 

provisions of laws, regulations, and contracts, noncompliance with which could have a direct and material 

effect on the determination of the consolidated financial statement amounts. We limited our tests of 

compliance to the provisions described in the preceding sentence, and we did not test compliance with all 

laws, regulations, and contracts applicable to GPO. However, providing an opinion on compliance with 

laws, regulations, and contracts was not an objective of our audit and, accordingly, we do not express such 

an opinion. 

______________________________ 

GPO’s responses to the findings identified in our audit are presented in Exhibit I. We did not audit GPO’s 

responses and, accordingly, we express no opinion on them. 

This report is intended solely for the information and use of GPO’s management, GPO’s Office of 

Inspector General, the U.S. Government Accountability Office, and the U.S. Congress and is not intended 

to be and should not be used by anyone other than these specified parties. 

January 8, 2010 
22 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

Exhibit I

Fiscal Year 2009 Significant Deficiencies 

33

A. Financial Reporting Controls 

During our fiscal year 2009 audit, we noted the following areas where the United States 

Government Printing Office (GPO) needs to improve its non-information technology (IT) internal 

controls over financial reporting.

1. Review and Reporting of General Property, Plant and Equipment 

We noted that GPO recorded additions to General Property, Plant and Equipment (PP&E) in its 

subsidiary ledger and general ledger based on when cash disbursements were made for the assets 

instead of recording the PP&E when it was received and accepted by GPO. During our test work 

over 51 PP&E additions, we noted 20 instances where GPO had received and accepted the assets 

but had not recorded the total costs of the assets in the accounting systems. While this deficiency 

resulted in an understatement of PP&E and accounts payable of approximately $2.4 million as of 

the interim date of our test work, PP&E was not materially misstated at September 30, 2009 

because GPO had either subsequently paid all amounts due to vendors related to such assets or 

accrued all significant unpaid balances at fiscal year end. However, because GPO does not 

consistently record the “in-service date” for its assets accurately in the PP&E subsidiary ledger, 

depreciation expense was overstated by approximately $171,000 in FY 2009. This uncorrected 

audit difference was posted to the Summary of Audit Differences, which was attached to the FY 

2009 Management Representation Letter. 

We also noted one incident where GPO recorded two advance payments totaling approximately 

$4.6 million as PP&E instead of as an advance. GPO made advance payments to a contractor to 

perform upgrades to its networks’ infrastructure and cabling. As of September 30, 2009, only a 

portion of the contract had been fulfilled, but GPO had recorded the total advance, which is 

estimated to be the total cost of the project, as PP&E. As a result of our observation and 

recommendation, GPO adjusted its PP&E and advance balances at year end by approximately 

$1.5 million. 

2. Certain Reconciliation Controls 

During fiscal year 2009, certain key reconciliations in the areas of expenses, unbilled accounts 

receivable, accounts payable and deposit accounts were not always performed timely and when 

performed, differences noted were not consistently investigated and resolved in a timely manner. 

As of September 30, 2009, a difference of approximately $2 million existed between the deposit 

account subsidiary ledger and the general ledger and a difference of approximately $500 thousand 

existed between the unbilled accounts receivable subsidiary ledger and the general ledger; these 

differences were not timely investigated and resolved. 

GPO management considered the identified differences to be immaterial to the fiscal year 2009 

consolidated financial statements. As such, these differences were not corrected in the 

consolidated financial statements and were included in the FY 2009 Summary of Audit 

Differences, which was attached to the FY 2009 Management Representation Letter. 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 23

Exhibit I (continued) 

Fiscal Year 2009 Significant Deficiencies 

34

3. Controls over Compilation of Statement of Cash Flows 

During our 2009 audit, we noted that cash flows from operating activities and investing activities 

in the draft statement of cash flows were each initially misstated by approximately $3.7 million as 

a result of GPO misclassifying certain investing cash outflows as operating activities. This 

misclassification was corrected in the final statement of cash flows based on our observation and 

recommendation. 

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

Government requires:

• Transactions be promptly recorded to maintain their relevance and value to management in 

controlling operations and making decisions. This applies to the entire process or life cycle of 

a transaction or event from the initiation and authorization through its final classification in 

summary records. In addition, control activities help to ensure that all transactions are 

completely and accurately recorded. 

• That internal controls, such as comparisons and reconciliations, be designed to assure that 

ongoing monitoring occurs in the course of normal operations. Without proper controls 

timing differences within the monthly reconciliations may not be corrected timely. 

In addition to the GAO criteria above, Statement of Financial Accounting Concepts (SFAC) No. 

6, Elements of Financial Statements, states that assets are recorded when there is future economic 

benefit and the asset is controlled by the entity. 

Recommendations:

We recommend that GPO strengthen its controls surrounding PP&E, the execution of account 

reconciliations and the preparation of the statement of cash flows, as follows:

1. Implement controls to ensure that GPO accountants are recording PP&E in the PP&E 

subsidiary ledger and general ledger at the full costs upon receiving title to the assets. GPO 

can accomplish this by using the asset receipt and acceptance document, together with the 

contract and applicable invoices, to record the asset in its subsidiary ledger and general 

ledger. Additionally, program managers and accountants should be provided additional 

guidance to ensure proper coding and recording of advance payments. 

2. Validate the receipt and acceptance of an asset (through physical inspection, confirmation 

from program managers, and/or cross-checking the invoice to the receiving documents and 

purchase order) or validate GPO’s title to an asset, whichever is applicable, before recording 

the asset in its records. 

3. Enforce its existing policies that require monthly reconciliations to be performed and timely 

investigation and resolution of all differences identified. 

4. Implement controls to ensure that changes in accounts payable are properly classified in 

arriving at cash flows from operating and investing activities in the statement of cash flows. 
24 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

Exhibit I (continued) 

Fiscal Year 2009 Significant Deficiencies 

35

Management Response:

Management concurs with these recommendations. Finance will change the process to ensure 

proper asset accounting at the time title passes to GPO. During fiscal 2010, Finance will be 

reviewing, and will change the month-end closing process, to require reconciliations of 

significant accounts prior to the release of the monthly financial reports. 

B. Information Technology General and Application Controls 

During fiscal year 2009, deficiencies in the design and/or operations of GPO’s IT general and 

application controls were noted in Security Management, Access Controls, Configuration 

Management, and Contingency Planning. The details of these conditions, several of which have 

been reported to management in prior years’ audit reports, are as follows: 

1. Security Management 

GPO made progress in fiscal year 2009 to formalize GPO’s established information security 

objectives and high level policy. However, we noted the following conditions: 

a. Although GPO completed the certification and accreditation process for both the GPO 

Business Information System (GBIS) and the General Support System (GSS) in fiscal year 

2009, GBIS and the GSS have not received full authority to operate in GPO’s production 

environment. During the certification and accreditation process, conditions were identified 

that resulted in the issuance of an Interim Authority to Operate (IATO). Those conditions 

have not been remediated as of September 30, 2009. Also, the following exceptions were 

observed during our test work: 

i. The security plan for GBIS contained information that did not adequately reflect current 

processes in the GBIS environment. 

ii. A section of the security plans for both GBIS and the GSS was incomplete. A 

description of the required information was stated. However, information specific to 

GBIS or the GSS was not provided. 

iii. Elements of the risk assessment for the GSS were incomplete. Specifically, an 

understanding of the related risks and a determination of the acceptable level of risks 

have not been formulated. 

b. Security awareness policies and procedures are not consistently enforced. Specifically, no 

adverse action was taken for employees who failed to complete the required annual security 

awareness training program. Although the program states that network access will be 

revoked for employees who fail to complete the annual IT security awareness training, the 

consequences for noncompliance were not enforced. 

c. The Memorandum of Understanding (MOU) that governs the development, management, 

operation, and security of the connection between the National Finance Center (NFC), 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 25

Exhibit I (continued) 

Fiscal Year 2009 Significant Deficiencies 

36

GPO's payroll processor, and GPO’s hosted system at Oracle’s data center expired in March 

2009 and has not been extended or reaffirmed as of September 30, 2009. 

d. GPO has not implemented procedures to review and update its Plans of Action and 

Milestones (POA&M) for IT security weaknesses on a quarterly basis. 

e. GPO’s process for identifying, recording, and maintaining its system inventory has not 

produced a comprehensive, current inventory of both minor and major systems as well as 

related hardware and peripherals.

Without the completion of the certification and accreditation processes for GPO's major 

applications and systems, GPO management may not properly mitigate the security risks posed 

by the use of GPO's systems. As a result, systems may be operating in the production 

environment without appropriate controls or management oversight. Also, without the completion 

of annual security awareness training, employees may be unable to recognize and respond 

appropriately to real and potential security concerns, and they may be unaware of new risks that 

could compromise the integrity and availability of data. Additionally, without a formalized MOU 

with NFC, GPO may not have available remedies in the event of non-performance, the improper 

distribution of information, or other acts that may compromise the security of GPO’s data or its 

network. Also, without periodic updates and reviews of POA&M activities, the risk is elevated 

that GPO may be unaware of the current status of security-related corrective actions. As a result, 

delays in the implementation of corrective actions may not be appropriately identified and 

resolved in a timely manner. Finally, without a complete and comprehensive system inventory, 

GPO is at elevated risk of not having an accurate accounting of its IT assets, including system 

interfaces and underlying data elements. Consequently, potential security risks may not be 

properly identified and mitigated, leading to negative impacts on operations. 

2. Access Controls 

Overall, access controls at GPO continue to require strengthening in order to provide a more 

secure financial processing and computing environment. GPO management made progress in 

addressing the access control deficiencies noted in prior years. However, we noted the following 

access controls deficiencies that need improvement: 

a. GPO management is not consistently following documented policies and procedures for 

granting and reviewing access to the data center. We noted one user who was granted access 

to the data center via the card reader system but was not identified as an authorized user. 

Additionally, three users who were authorized to access the data center had not been granted 

the necessary access permissions via the card reader system. 

b. Access to GBIS is not appropriately restricted and monitored. Specifically, program 

development personnel continue to have system administration and special user privileges for 

the production of GBIS, yet their activities and the activities of other users with 

administrative or special privileges are not monitored. Also, access to the Oracle Rate 

Maintenance responsibility that controls the ability to modify the All Inclusive Hourly Rates 

(AIHR) is not properly restricted to only those individuals responsible for modifying rate 

information. Access to financial systems must be properly restricted to limit processing 

errors, protect the integrity of data, and prevent the submission of unauthorized transactions. 
26 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

Exhibit I (continued) 

Fiscal Year 2009 Significant Deficiencies 

37

c. GPO does not have adequate user identification controls to verify the identity of users during 

phone calls requesting password resets from the Information Technology and Support (IT&S) 

Help Desk. Additional user identification controls are needed to ensure that passwords are 

not improperly communicated to unauthorized individuals. 

d. Comprehensive policies and procedures for granting access to the Local Area Network 

(LAN) have not been developed and formally documented. Of a sample of 25 current LAN 

user accounts that were created in FY 2009, access requests and the related approvals for nine 

LAN user accounts were not provided. 

e. The GPO Computer Security Incident Response Team (CSIRT) Framework and Procedures

does not fully address the elements outlined in National Institute of Standards and 

Technology (NIST) Special Publication (SP) 800-61, Computer Security Incident Handling 

Guide. Specifically, we noted that guidance was not provided in the CSIRT Framework and 

Procedures regarding the prioritization of incidents and timelines for reporting security 

incidents to US-CERT. 

Access controls should provide reasonable assurance that computer resources (data files, 

application programs, and computer-related facilities and equipment) are protected against 

unauthorized access, modification, disclosure, loss, or impairment. Without proper logical access 

restrictions and monitoring of user activities and verification of users identification, GPO may be 

unable to prevent or subsequently detect unauthorized user activities and the submission of 

invalid transactions in the production environment. As a result, the integrity and availability of 

data may be adversely affected. Additionally, failure to properly review and reconcile access to 

the data center may result in an inability to restrict access to authorized users only, which may 

lead to unauthorized access to valuable assets and sensitive information, which may result in the 

loss, damage, or theft of valuable information and/or resources. Also, authorized individuals who 

are not properly granted the necessary access permissions may be unable to adequately perform 

their job functions. 

3. Configuration Management 

Establishing controls over the modification of application software programs helps to ensure that 

only authorized programs and authorized modifications are implemented. This is accomplished 

by instituting policies, procedures, and techniques that help ensure that program modifications are 

properly authorized, tested, and approved and that access to and distribution of programs is 

carefully controlled. During our test work, we noted that the development and implementation of 

configuration changes for GBIS does not adhere to strict project management and configuration 

management practices. Specifically, no controls are in place to logically restrict access from 

developers in the non-production instance of Oracle after the completion of configuration 

changes. In addition, the ability to request and approve changes through Oracle's service request 

process is not restricted to only those individuals who are responsible for the configuration 

management of business information systems at GPO. Also, the data conversion methodology 

used during the recent upgrade to the Oracle production environment did not adequately 

document the migration strategy, including a cost analysis and a long-term plan for maintaining 

and accessing historical data in the legacy systems. 

During fiscal year 2009, GPO management continued the development of a desktop patch 

management plan which started in fiscal year 2008. However, GPO has not been able to 

complete the implementation of the patch management plan and process. 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 27

Exhibit I (continued) 

Fiscal Year 2009 Significant Deficiencies 

38

Without the proper management and use of a strictly controlled process for developing, testing, 

and implementing configuration changes to systems and applications in the production 

environment, configuration changes may be implemented that have not been properly evaluated. 

As a result, processing errors and system anomalies may occur. In addition, desktop computers 

without current security patches may not be properly safeguarded from security vulnerabilities. 

4. Contingency Planning 

During fiscal year 2009, GPO continued its efforts to minimize the risk of unplanned 

interruptions and recover critical operations should an interruption occur, including the 

performance of a Business Impact Analysis (BIA). However, GPO does not have a completed 

contingency plan for its GSS that would allow the complete recovery of operations in the event of 

a major disaster or outage. The IT&S contingency plan and strategy for the GSS is currently in 

the process of development. Additionally, GPO IT&S lacks standard operating procedures for 

several of its routine and critical processes including media backup and off-site storage. 

Without an effective contingency plan, which includes periodic testing of the plan's reliability, 

GPO may be unable to access critical information and resources and perform mission critical 

business functions in the event of an extended outage and/or disaster. As a result, GPO may not 

be able to resume operations in an efficient and effective manner and meet its customers' 

demands for products and services. 

NIST SP 800-37, Guide for the Security Certification and Accreditation of Federal Information 

Systems, states that the successful completion of the security certification and accreditation 

process provides agency officials with the necessary confidence that the information system has 

adequate security controls, that any vulnerabilities in the system have been considered in the riskbased decision to authorize processing, and that appropriate plans and funds have been identified 

to correct any deficiencies in the information system. 

NIST SP 800-53, Recommended Security Controls Information Systems, states that the 

organization develops, disseminates, and periodically reviews/updates: (i) a formal, documented, 

security awareness and training policy that addresses purpose, scope, roles, responsibilities, and 

compliance; and (ii) formal, documented procedures to facilitate the implementation of the 

security awareness and training policy and associated security awareness and training controls. 

The organization ensures all users (including managers and senior executives) are exposed to 

basic information system security awareness materials before authorizing access to the system 

and thereafter (i.e., at least annually). The organization employs a formal sanctions process for 

personnel failing to comply with established information security policies and procedures. 

NIST SP 800-53, Recommended Security Controls Information Systems, states that: 

• “The organization develops, disseminates, and periodically reviews/updates: (i) a formal, 

document configuration management policy that addresses purpose, scope, roles 

responsibilities, management commitment, coordination among organization entities, and 

compliance; and (ii) formal, documented procedures to facilitate the implementation of the 

configuration management policy and associated configuration management controls. 

• The organization manages configuration changes to the information system using an 

organizationally approved process (e.g., a chartered Configuration Control Board). 
28 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

Exhibit I (continued) 

Fiscal Year 2009 Significant Deficiencies 

39

Configuration change control involves the systematic proposal, justification, implementation, 

test/evaluation, review, and disposition of changes to the information system, including 

upgrades and modifications. 

• The approvals to implement a change to the information system include successful results from 

the security analysis of the change. The organization audits activities associated with 

configuration changes to the information system.” 

NIST SP 800-35, NIST Guide to Information Technology Security Services, states that the 

organization should develop strong, specific service agreements that define the expectations of 

performance for each required security control, describe measurable outcomes, and identify 

remedies and response requirements for any identified instances of noncompliance. 

NIST 800-53 states that the organization employs the concept of least privilege for specific duties 

and information systems (including specific ports, protocols, and services) in accordance with 

risk assessments as necessary to adequately mitigate risk to organizational operations, 

organizational assets, and individuals. The organization supervises and reviews the activities of 

users with respect to the enforcement and usage of information system access controls. The 

organization regularly reviews/analyzes audit records for indications of inappropriate or unusual 

activity, investigates suspicious activity or suspected violations, reports findings to appropriate 

officials, and takes necessary actions. 

Office of Management and Budget (OMB) Circular No. A-130, Management of Federal 

Information Resources, states that agencies shall (i) protect government information 

commensurate with the risk and magnitude of harm that could result from the loss, misuse, or 

unauthorized access to or modification of such information; and (ii) establish a level of security 

for all information systems that is commensurate with the risk and magnitude of the harm 

resulting from the loss, misuse, or unauthorized access to or modification of the information 

contained in these information systems. 

NIST SP 800-61, Computer Security Incident Handling Guide, requires agencies to establish 

incident reporting capabilities, including developing procedures for performing incident handling 

and reporting, based on incident response policy. It also requires agencies to report security 

incidents timely to US-CERT. 

NIST SP 800-53, Recommended Security Controls for Federal Information Systems, states that 

the organization promptly installs newly released security relevant patches, service packs, and hot 

fixes, and tests patches, service packs, and hot fixes for effectiveness and potential side effects on 

the organization’s information systems before installation. 

NIST SP 800-34, Contingency Planning Guide for Information Technology Systems, states that it 

is critical that the services provided by systems are able to operate effectively without excessive 

interruption. Contingency planning supports this requirement by establishing thorough plans and 

procedures and technical measures that can enable a system to be recovered quickly and 

effectively following a service disruption or disaster. 

NIST Special Publications series state that agency Chief Information Officers (CIO) should 

maintain, track and review IT security remediation plans on at least a quarterly basis. It also states 

that the head of agencies should develop and maintain an inventory of major information systems 

(including major national security systems) operated by or under the control of such agency. 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 29

Exhibit I (continued) 

Fiscal Year 2009 Significant Deficiencies 

40

Additionally, it states that agencies should develop, document, and implement an agency-wide 

information security program to provide information security for the information and information 

systems that support the operations and assets of the agency. 

Recommendations:

We recommend that GPO continue to strengthen its IT general and application controls in each of 

the four identified domains, as follows: 

1. Security Management 

a. We recommend that GPO management continue its efforts to implement security controls 

that address the identified risks such that GPO may properly certify and accredit its major 

applications and systems, including GBIS and the GSS. We further recommend that GPO 

maintain a schedule to track the certification and accreditation life cycle activities of each 

major application and general support system (e.g., the stage of the certification and 

accreditation process for each system, the expected date of authorization, and the projected 

date of re-certification). 

b. We recommend that GPO management enforce compliance with the security awareness 

training policies and procedures, including disciplinary actions for employees who fail to 

complete the required annual training. 

c. We recommend that GPO management complete the development of the MOU with the NFC, 

revisit the agreement periodically to ensure that it continues to meet GPO’s needs, and ensure 

that the agreement is maintained throughout the duration of its relationship with the NFC. 

d. We recommend that GPO include procedures for tracking and monitoring the status of 

system-specific weaknesses in its POA&M process and develop executive-level summaries 

for the POA&Ms. The tracking and review should be done at least quarterly. 

e. We recommend that GPO enhances the existing system inventory to ensure it contains all 

major agency systems and supporting interfaces and peripheral equipments. 

2. Access Controls 

a. We recommend that GPO management review and refine its procedures for the performance 

of periodic reviews of access to the data center. Such procedures should include i) examining 

the list of users who have been granted access to the data center to ensure that all users are 

properly authorized, ii) comparing the list of authorized users to the system-generated list of 

users to ensure that access permissions are properly granted for authorized users, and iii) 

updating access permissions to reconcile noted exceptions. 

b. We recommend that access to applications and systems in the production environment, 

including GBIS, is restricted to personnel based upon defined roles and responsibilities. In 

the event that non-routine access is needed, we recommend that the minimum level of access 

necessary to perform the required task(s) be granted temporarily. The activities of the user 

should be closely monitored and the user account should be deleted or inactivated 

immediately upon the completion of the required task(s). We further recommend that GPO 

financial management monitor and review for appropriateness the activities of users with 

administrative or special user privileges. We recommend that GPO management further 
30 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

Exhibit I (continued) 

Fiscal Year 2009 Significant Deficiencies 

41

develop its policies and procedures for requesting and authorizing access to GPO information 

technology resources to include requests for non-standard system accounts. 

c. We recommend that GPO management enhance its policies and procedures for fulfilling 

requests for password resets. 

d. We recommend that GPO management improves its policies and procedures for requesting 

and authorizing access to GPO IT resources to include requests for non-standard system 

accounts. We further recommend that GPO management ensure that such policies and 

procedures are consistently followed and all requests for access are documented and 

approved.

e. We recommend that GPO develops a complete and comprehensive process for identifying, 

reporting, and resolving computer security incidents. As part of this process, the incident 

response procedures should include clear and comprehensive guidance for the identification, 

prioritization, and notification of security incidents internally and externally and to the USCERT. This guidance should also include criteria for the identification of security incidents, 

including internal and external network-based attacks on GPO’s IT infrastructure, as well as 

physical theft or loss of IT assets. 

3. Configuration Management

We recommend that GPO management develop and implement the following controls to 

ensure that configuration changes are properly developed, tested, and implemented: 

a. Develop detailed descriptions of required deliverables for each phase of the System 

Development Life Cycle as stated in the GPO Instruction 705.28, GPO Information 

Technology System Development Life Cycle Policy.

b. Continue to develop new and refine existing configuration management policies, procedures, 

and guidance. 

c. Logically restrict access to configuration changes from developers in the non-production 

instance of Oracle after the configuration changes are scheduled for testing to ensure that no 

additional changes are made. 

d. Restrict the ability to request and approve changes to GBIS through Oracle's service request 

process to only those individuals who are responsible for the configuration management of 

GBIS.

e. Complete the development of the desktop patch management procedures and process to 

ensure that security patches are deployed to desktop computers in a timely and controlled 

manner.
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 31

Exhibit I (continued) 

Fiscal Year 2009 Significant Deficiencies 

42

4. Contingency Planning

We recommend that GPO management continue the development of its business resumption and 

contingency planning efforts to enable appropriate contingency support to mission critical 

business functions.

Management Response:

Management concurs with these recommendations. 
32 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

Exhibit II 

Status of Prior Year Findings 

Prior Year Condition Prior Year 

Recommendation 

Status as of 

September 30, 2009 

Material Weakness 

Review and reporting of 

General Property, Plant and 

Equipment (PP&E) 

Record PP&E at full costs upon 

receiving title to the assets. 

Significant Deficiency: 

This finding has been 

partially repeated in the 

current year; see Exhibit I, 

Item A.1. 

Review and reporting of 

Product Warranty Liability 

Review and properly apply historical 

information when recording 

contingent liability. 

Closed

Reporting of passport Workin-Process Inventory 

Ensure that all revenue recognition 

criteria have been met before 

recording unbilled receivable. 

Closed

Compilation and review of the 

consolidated financial 

statements

Perform thorough review of the 

financial statements and the related 

footnotes. 

Closed

Certain reconciliations are not 

performed

Enforce existing policies that require 

monthly reconciliation to be 

performed timely. 

Significant Deficiency: 

This finding has been 

partially repeated in the 

current year; see Exhibit I, 

Item A.2.

 Significant Deficiencies 

Controls over processing of 

human resource information 

need to be improved

1. Reassess access rights of Human 

Capital employees to the Entry, 

Processing, Inquiry, and 

Correction System (EPIC) to 

ensure they are consistent with 

their roles and responsibilities. 

2. Review edit/exception report from 

EPIC to track changes made to 

employee files 

3. Implement system control to 

require management approval 

when National Finance Center edit 

checks are overridden. 

Closed

Information technology (IT) general controls should be improved 

Entity-Wide Security Program a. Complete the certification and 

accreditation of all major 

Significant Deficiency: 

This finding has been 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 33

Exhibit II (continued) 

Status of Prior Year Findings 

44

Prior Year Condition Prior Year 

Recommendation 

Status as of 

September 30, 2009 

applications, including key 

financial systems, and the General 

Support System (GSS). 

repeated in the current year; 

see Exhibit I, Item B.1.

Access Controls a. Enhance policies and procedures 

regarding the removal of access 

for terminated employees and 

contractors and provide oversight 

to ensure that access to GPO IT 

resources belonging to separated 

employees and contractors is 

removed timely. 

b. Enhance policies and procedures 

regarding the assignment, 

removal, and review of access to 

the Data Center. 

c. Review the current access 

privileges and modify those 

privileges for Oracle On-Demand 

users, such that the access 

privileges are properly segregated 

and granted with the least amount 

of privilege necessary. 

d. Enhance its policies and 

procedures for fulfilling requests 

for password resets to include the 

verbal verification of users. 

Significant Deficiency:

This finding has been 

partially repeated in the 

current year; see Exhibit I, 

Item B.2. 

System Software a. Continue to improve the patch 

management process by 

completing the desktop patch 

management plan that began in 

June 2008. 

Significant Deficiency:

This finding has been 

repeated in the current year; 

see Exhibit I, Item B.3.

Service Continuity a. Finalize its contingency plans for 

all financial reporting systems and 

the GSS. 

Significant Deficiency:

This finding has been 

partially repeated in the 

current year; see Exhibit I, 

Item B.4.
SECTION IV

Consolidated 

Financial 

Statements

34 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009
Consolidated Balance Sheets

As of September 30, 2009 and 2008

(Dollars in thousands)

U.S. GOVERNMENT PRINTING OFFICE

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

 2009 2008

ASSETS 

	 Current assets	 	

	 Fund balance with Treasury (Note 2) $	 256,126	 $	 265,251

	 	 Accounts receivable, net (Note 3)	 	 210,564	 153,696

	 	 Inventory, net (Note 4)	 	 28,831	 48,291

	 	 Prepaid expenses (Note 5)	 	 1,823 	 	 903

	 	 Total current assets 497,344 468,141 

	 General property, plant and equipment, net (Note 6)	 	 115,141	 107,194

	 	 Total assets $ 612,485 $ 575,335

LIABILITIES AND NET POSITION

	 Current liabilities	

	 	 Accounts payable and accrued expenses (Note 7)	 $	 120,699	 $	 112,858

	 	 Deferred revenues (Note 8)	 	 98,634	 89,376

	 	 Accrued annual leave 	 11,016 	 	 10,549

 Total current liabilities 230,349 212,783 

	 Other liabilities	 	

	 Workers’ compensation liability (Note 9)	 	 71,174	 67,067

	 	 Product warranty liabilities (Note 10)	 	 —	 1,418

 Total liabilities 301,523 281,268 

	 Commitments and contingencies (Notes 10 and 11)	

	 Net position (Note 12)	

	 	 Cumulative results of operations:	

	 	 	 Retained earnings 	 150,363	 154,425

	 	 	 Invested capital	 92,879	 	 92,879

	 	 Unexpended appropriations	 	 67,720	 46,763	

	 	 Total net position 310,962 294,067

 Total liabilities and total net position $ 612,485 $ 575,335 

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 35
Consolidated Statements of Revenues, Expenses, 

and Changes in Retained Earnings

For the Fiscal Years Ended September 30, 2009 and 2008 

(Dollars in thousands)

U.S. GOVERNMENT PRINTING OFFICE

 2009 2008

OPERATING REVENUES 	 	

	 Printing and binding	 $	 794,801	 $	 890,630

	 Appropriations	 	 119,239	 	 130,111

	 Sales of publications	 	 14,101	 	 15,866

	 Agency distributions	 	 5,917 	 5,818

	 	 Total operating revenues 934,058 1,042,425

OPERATING EXPENSES

	 Printing and reproduction	 	 497,829	 	 470,454

	 Personnel compensation and benefits	 	 234,623	 	 224,344

	 Supplies and materials	 	 110,845 	 	 214,848

	 Other services	 34,118	 	 29,685

	 Depreciation and amortization	 	 17,182	 	 10,428

	 Rents, communications, and utilities	 	 17,582 	 	 16,507

	 Travel, transportation, and postage	 	 15,873	 	 23,690

	 Publications sold	 	 4,772 	 	 5,864

	 	 Subtotal 932,824 995,820 

	 	 Income before other operating expenses 1,234 46,605 

OTHER OPERATING EXPENSES

	 Impairment loss (Note 16)	 	 (1,189)	 	 —

	 Increase in workers’ compensation liability (Note 9)	 	 (4,107)	 	 (344)

 Net Income (Loss) (4,062) 46,261

 Retained Earnings, beginning of year 154,425 108,164

 Retained Earnings, end of year $ 150,363 $ 154,425

36 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

The accompanying notes are an integral part of these financial statements.
Consolidated Statements of Cash Flows

For the Fiscal Years Ended September 30, 2009 and 2008

(Dollars in thousands)

U.S. GOVERNMENT PRINTING OFFICE

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

 2009 2008

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $ (4,062) $ 46,261

	 Adjustments to reconcile net income (loss) to net cash

	 	 provided by (used in) operating activities:	

	 	 	 Depreciation and amortization	 	 17,182 	 	 10,428

	 	 	 Impairment loss	 	 1,189	 —

	 	 	 Gain on disposal of general property, plant and equipment	 (7)	 	 (16)

	 	 Changes in assets and liabilities:	

	 	 	 (Increase) decrease in assets-	

	 	 	 	 Accounts receivable	 (56,868)	 	 (7,578)	 	 	 	

	 	 	 	 Inventory	 	 19,460 	 	 (13,699)

	 	 	 	 Prepaid expenses	 	 (920)	 	 200

	 	 	 Increase (decrease) in liabilities-	

	 	 	 	 Accounts payable and accrued expenses	 	 11,559	 3,534

	 	 	 	 Deferred revenues	 	 9,258	 7,661

	 	 	 	 Accrued annual leave	 	 467 	 	 736

	 	 	 	 Workers’ compensation liability	 	 4,107 	 	 344	 	 	 	

	 	 	 	 Product warranty liabilities	 	 (1,418) 	 (3,41

 Total adjustments 4,009 (1,805)

 Net cash provided by (used in) operating activities (53) 44,456

CASH FLOWS FROM INVESTING ACTIVITIES

	 Capital purchases	 (30,036)	 	 (47,167)

	 Proceeds from sale of general property, plant and equipment	 7	 	 16

 Net cash used in investing activities (30,029) (47,151)

CASH FLOWS FROM FINANCING ACTIVITIES

	 Increase (decrease) in unexpended appropriations	 	 20,957	 (5,500)

 Net cash provided by (used in) financing activities 20,957 (5,500)

 Net decrease in fund balance with Treasury (9,125) (8,195)

Fund balance with Treasury, beginning of year	 	 265,251 	 	 273,446

Fund balance with Treasury, end of year $ 256,126 $ 265,251

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 37
38 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

SECTION IV (cont’d)

Notes to Consolidated Financial Statements

September 30, 2009 and 2008

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 U.S.C. 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. Every two years 

the JCP chairmanship and vice-chairmanship rotate between the House and the Senate.

B. Accounting Environment

Basis of Accounting

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

prepared in conformity with U.S. generally accepted accounting principles (GAAP) as promulgated by the Financial Accounting 

Standards Board (FASB). Under GAAP, revenues are recognized when earned, and expenses are recognized when incurred, without 

regard to the timing of the receipt or disbursement of cash.

Basis of Presentation and Consolidation

GPO prepares annual financial statements that reflect the overall financial position and results of operations to meet the requirements of GAAP and 31 U.S.C. § 3515(b) mandated by 44 U.S.C. § 309(e). The accompanying consolidated financial statements include 

all funds under GPO’s control that have been established and maintained to account for the resources of the Agency. All significant 

intra-agency balances and transactions have been eliminated in the preparation of the consolidated financial statements. 

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

Government, as a whole, such as interest on the public debt, which may in part be attributable to GPO. Other Federal agencies 

make financial decisions and report certain financial matters on behalf of the entire Federal Government, including matters in which 

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

indirectly involved include employee benefit plans and certain legal settlements.

Funds

GPO maintains a revolving fund and a general fund to account for its various programs and operations. Each of these funds is a distinct fiscal and accounting entity that accounts for cash and other financial resources together with all related liabilities and equities.

Revolving Fund – The GPO Revolving Fund is an inter-governmental fund established by Congress on July 1, 1953. This businesstype revolving fund is available without fiscal limitation for financing the operation and maintenance of GPO, except for those 

information dissemination programs of the Agency that are funded by annual appropriations.

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

Binding Operations and Publication and Information Sales Program. Accordingly, the two major sources of revenue to the Revolving 

Fund are reimbursements from the Congressional Printing and Binding Appropriations and other Federal customers for providing 

printing, binding and distribution services, and publication and subscription sales to the public.
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 39

The Printing and Binding Operations account for the revenues and expenses associated with services provided by in-plant printing and purchased printing. The costs of these services are recovered through a system of rates used to bill customers. These rates 

include direct costs, depreciation, overhead, and related expenses permitted under 44 U.S.C. § 309.

The Publication and Information Sales Program sells Federal Government information products to the public. The price of 

Federal Government publications sold through this program is established in accordance with 44 U.S.C. § 1708.

General Fund – The General Fund is financed by two annual Congressional appropriations to the Agency. These appropriated 

funds finance the cost of GPO’s support of the Congress, and the Government information dissemination services provided to the 

public without charge to the recipients.

The Congressional Printing and Binding (CP&B) Appropriation is used to pay the cost of the printing and binding requirements 

of the Congress, and the printing, binding, and distribution of publications authorized by law to be distributed to others without 

charge to the recipient.

The Salaries and Expenses (S&E) Appropriation is used by the Library Services and Content Management, a GPO business unit, 

to fund four information dissemination programs: the Federal Depository Library Program (FDLP) that includes GPO Access; the 

Cataloging and Indexing Program; the By-Law Distribution Program; and the International Exchange Program. The majority of this 

annual appropriation is used to finance the FDLP.

Expenditures from these appropriations are used to reimburse the GPO Revolving Fund for printing and binding, and other 

services and supplies furnished by GPO in accordance with U.S.C. Title 44.

C. Fund Balance with Treasury

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

processes cash receipts and disbursements for GPO.

D. Accounts Receivable 

Accounts receivable consist of intra-governmental amounts due to GPO, as well as amounts due from the public. Accounts receivable are shown net of a provision for uncollectible accounts. The allowance for doubtful accounts is based on GPO’s recent debt 

collection experience.

E. Inventories

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

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

The allowance for surplus publications is based on life cycle studies of product sales that provide a historical basis for determining 

the percentage of potential excess inventory stock items on hand. Inventories of paper, supplies and materials include the cost of 

production material (e.g., computer chips, ink, book cloth), as well as the cost of administrative-use supplies. These inventories are 

valued at the lower of cost, using the weighted moving average cost method, or market. Inventories of supplies and materials are 

shown net of a provision for obsolescence. The allowance for obsolescence is determined based on historical usage of paper, supplies and materials.

F. Property, Plant and Equipment

Property, plant and equipment purchases are generally valued at their acquisition cost. The Agency capitalizes the cost of 

the property as an asset when the cost is $25,000 or more, and 

the estimated useful life is two years or more. The costs of major 

alterations and renovations to the GPO facility are capitalized 

and depreciated, while the costs of maintenance and repairs are 

expensed when incurred. The depreciation of property, plant 

and equipment is calculated on a straight-line basis over the 

estimated useful life of the asset. The depreciation of an asset 

commences the month after the asset is first placed in service.

The table at right reflects the standard estimated useful 

life of each major asset category. Exceptions to these standard 

estimated asset lives are authorized when justified.

Section IV: Consolidated Financial Statements

Estimated Useful Life Of Capitalized Assets

Asset Category Estimated Useful Life (Years)

Land	 N/A

Building Improvements	 20

Building Appurtenances	 20

Other Structures and Facilities	 20

Furniture and Fixtures	 20

Leasehold Improvements	 10

Plant Machinery and Equipment	 10

Office Machinery and Equipment	 5

Motor Vehicles	 5

Computer Software	 3
40 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

Land has an indefinite life and is not subject to depreciation. Leasehold improvements are generally depreciated over 10 years or 

the remaining duration of the lease for real property, whichever is shorter.

Printing equipment transferred to GPO from other Federal agencies under the provisions of 44 U.S.C. § 312 is valued in accordance with JCP Regulation Number 26, Government Printing and Binding Regulations. This valuation approximates fair market 

value at the time of the property transfer.

G. Deferred Revenues

Deferred revenues are funds received in advance from customers for the future delivery of goods and services. 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. The liability is reduced when leave is used. The annual leave liability is calculated 

using the current hourly salary or wage of employees multiplied by their total hours of unused annual leave. Employees will receive 

a lump-sum payment for any unused annual leave when they separate from Federal service or enter active military service. 

Sick leave and other types of non-vested leave are expensed when used. Employees are not entitled to a lump-sum payment for 

their unused sick leave.

I. Workers’ Compensation Liability

The Federal 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 benefits 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, and a component related to injuries incurred 

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. Commitments and Contingencies

FASB Accounting Standards Codification, Asset Retirement Obligations (ASC 410-20), requires a reporting entity to recognize a liability for the fair value of a conditional asset retirement obligation if the fair value of the liability can reasonably estimated. Accordingly, 

GPO has estimated and recorded the asset retirement obligations. Liabilities from loss contingencies, including environmental 

remediation costs not within the scope of ASC 410-20, arising from claims, assessments, litigation, fines and penalties, and other 

sources, are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation 

can be reasonably estimated. Loss contingencies that do not meet these criteria are not accrued. 

K. Product Warranty Liabilities

Prior to fiscal 2009, product warranty liabilities were recognized for electronic passports manufactured by GPO for the U.S. 

Department of State. The estimate was based on the number of passports produced but not personalized by the U.S. Department of 

State, and an estimated percentage of potentially defective electronic passports. During the timeframe fiscal 2007 through 2009, no 

claims were made against the warranty. As a result, GPO ceased recording a liability in fiscal 2009.

L. Revenue Recognition

Printing and Binding – GPO must be reimbursed for the cost of printing and binding services furnished customers at rates set by 

the Public Printer in accordance with 44 U.S.C. §309. Revenues from in-house printing and binding work are recognized on a valueadded basis, as work is performed, while revenues from commercially procured printing and binding are recognized on the date 

the contract requirements are fulfilled, which is generally the date of shipment by the commercial printer to the customer agency. 

Section IV: Consolidated Financial Statements
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 41

Revenues related to the manufacture of passports by GPO for the U.S. Department of the State are recognized at annually negotiated 

rates per passport at the time that the printing and binding process is complete.

Appropriations – Appropriation revenues are recorded when a liability is incurred for purposes permitted by the appropriations 

act and program legislation. Unexpended appropriations are recorded as a component of net position. Unexpended appropriation 

balances are generally canceled after 5 years.

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

the Publication and Information Sales Program.

Agency Distributions – Revenues from the storage, packaging, and distribution of publications for other Federal agencies are 

recorded when services have been performed.

M. Expense Recognition 

Printing and Reproduction – This expense includes the cost of printing, duplicating, and reproduction orders that are procured 

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

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

Personnel Compensation and Benefits – Personnel compensation consists of the wages and salaries, including overtime 

premium and night differential, paid to GPO employees on a biweekly cycle. Personnel benefits include the Agency’s share of 

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

Government civilian employee retirement programs. The two retirement programs are the Civil Service Retirement System (CSRS) 

and the Federal Employees Retirement System (FERS) that includes the related Thrift Savings Plan (TSP). Personnel benefits also 

include the cost of workers’ compensation expense, transit benefits provided by GPO to employees, and the cost of incentive and 

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

Supplies and Materials – Computer chips required for passport production are the most significant cost component within the 

category of supplies and materials. Passport supplies and materials are recorded as an expense when used in production operations. The second most significant component is paper and paper products that are commercially procured to satisfy GPO’s in-plant 

printing requirements and customer orders for blank paper. The expense is recorded when paper is drawn from inventory to fulfill 

an order or delivered to the customer, in the case of direct mill-to-customer shipments. This expense category also includes all other 

supplies and materials that are not capitalized as property, such as personal computers, furniture, and office supplies.

Other Services – This expense category includes the costs of professional services by contractors and the expenses related to a 

provision for uncollectible accounts receivable. The expenses for professional services are recognized when the contracted services 

have been performed. The expenses for uncollectible accounts receivable are recognized when receivables are deemed as potentially uncollectible, based on GPO’s collection experience. 

Depreciation and Amortization – GPO uses the straight-line method of depreciation and amortization to allocate a portion of 

the acquisition cost of property, plant and equipment to each accounting period. The acquisition cost of each capitalized asset is 

depreciated, or amortized, over the asset’s estimated useful life which is generally measured in years. The monthly depreciation, or 

amortization, of a capitalized asset commences at the beginning of the first full-month after the date that the capitalized asset was 

placed in service.

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

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

GPO also rents automobiles and other motor vehicles. Communications costs include data, voice, video, and wireless services. 

Utilities include electricity, gas, steam, and water. Expenses are recorded as services are provided and energy resources are used.

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

employee relocation costs, and postage expenses. Travel costs are incurred by persons on official business for audits, attendance at 

conferences, inspections, investigations, training, or other authorized business of the Agency. Transportation includes shipping costs 

for printing and reproduction products from GPO or contractors to customer agencies, depository libraries, or other GPO locations. 

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

shipment. Postage and commercial mail services are recorded as expenses when the delivery services are provided by the U.S. Postal 

Service and commercial carriers.

Section IV: Consolidated Financial Statements
42 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

Publications Sold – Publications sold expense represents the cost of publications sold to customers and the cost of subscriptions 

issued to subscribers. Expenses are recorded at the time of publication sale or subscription issuance. Additionally, this expense 

includes any change in the estimated cost of the publications held in inventory for sale to the public that are potentially obsolete, 

damaged, or surplus. The allowance for surplus publications is based on life cycle studies of product sales that provide a historical 

basis for the determination of potential excess inventory on hand.

N. 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. This statement assesses the ability of GPO to generate funds from current operations, to identify financing acquired from outside sources, and to identify the major non-operating (investing) uses of funds.

O. Use of Estimates

The preparation of the consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) 

requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the 

disclosure of contingent liabilities at the date of the consolidated financial statements, and the amount of revenues and expenses 

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

The estimates that most significantly impact assets, liabilities, revenues, and expenses reflected in the accompanying consolidated financial statements are: the allowance for inventory obsolescence for supplies, materials, and publications held for sale; the 

allowance for doubtful accounts related to accounts receivable; the estimated useful lives of capitalized assets; the actuarial estimated 

liability for future workers’ compensation benefits; the product warranty liability for the replacement of defective passport books; 

and the estimate for contingent liabilities.

P. Fair Value Measurement

GPO adopted FASB Accounting Standards Codification, Fair Value Measurements and Disclosures (ASC 820-10), on October 1, 2008 

for fair value measurements of financial assets and financial liabilities that are recognized or disclosed at fair value in the financial 

statements on a recurring basis. ASC 820-10 defines “fair value” as the price that would be received to sell an asset, or paid to 

transfer a liability, in an orderly transaction between market participants at the measurement date. This standard also establishes a 

framework for measurement of fair value and expands disclosure about fair value measurements.

Q. Reclassifications

Certain amounts in the Consolidated Statements of Revenues, Expenses, and Changes in Retained Earnings as of September 30, 2008, 

have been reclassified to conform to September 30, 2009 presentation. Specifically, the workers’ compensation liability expenses in 

fiscal 2008 were reclassified to a separate line item from the personnel compensation and benefits expense line item.

R. Subsequent Events

Effective September 30, 2009, GPO adopted FASB Accounting Standards Codification, Subsequent Events (ASC 855-10). It establishes 

general standards of accounting and disclosure of events that occur after the balance sheet date but before the financial statements 

are issued.

S. Tax Status

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

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

Section IV: Consolidated Financial Statements
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 43

2. Fund Balance with Treasury

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

September 30, 2009 and 2008 follows.

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

of customer deposit accounts, other deferred revenues, and restrictions for 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 general funds include unexpended appropriations made to the GPO for specific purposes as 

discussed in Net Position, Unexpended Appropriations (Note 12B). 

Section IV: Consolidated Financial Statements

(Dollars in thousands)

 2009 2008

Fund Balances: 

	 Revolving Fund:	 	

	 Unrestricted $	 60,160	

	 	 Restricted: 

	 	 	 Customer deposit accounts	 	 95,290	 	 86,260

	 	 	 Other	 	 	 31,021	 	 26,520

	 	 	 	 Total revolving fund 186,471 216,563

	 General Funds:	 	

	 Congressional printing and binding 	 38,261

	 	 Salaries and expenses 	 26,451	 	 20

	 	 Supplemental and other	 	 4,943 	 	 6,414

	 	 	 	 Total general funds 69,655 48,688

 Total $ 256,126 $ 265,251 

Status of Fund Balance with Treasury:

	 Unobligated balance:	

	 	 Available	 	 $	 42,556	 $	 101,752

	 	 Unavailable	 	 	 4,943	 	 6,414

	 	 	 	 Total 47,499 108,166

	 Obligated balance not yet disbursed	 	 208,627	 	 157,085

	 	 	 	 Total $ 256,126 $ 265,251
44 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

3. Accounts Receivable, Net

Accounts receivable, net of an allowance for doubtful accounts, as of September 30, 2009 and 2008, consisted of the following.

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

customers are required to reimburse the GPO Revolving Fund for the cost of their orders.

Unbilled accounts receivable result from the delivery of the goods and performance of services for which bills have not been 

presented to the customer for payment yet. Accordingly, unbilled accounts receivable includes the value of work in process and 

completed work for customer orders as of September 30, 2009 and 2008.

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. Inventory, Net

Inventories, net of an allowance for surplus and obsolete stock, as of September 30, 2009 and 2008, consisted of the following.

The supplies and materials inventory included $10.2 million in electronic chips at September 30, 2009, compared to $25.1 million at 

September 30, 2008. The computer chips are used in the production of electronic passports. 

Section IV: Consolidated Financial Statements

(Dollars in thousands)

 2009 2008

Federal Agencies:		

Unbilled accounts receivable	 $	160,730	 $	 110,031

	 Billed completed work	 	 51,801	 	 47,397

	 	 	 Subtotal 212,531 157,428

Other receivables:		

The public		 	 	 	 4,340	 	 2,571

	 GPO employees	 	 1,125	 	 1,008

 Subtotal 5,465 3,579 

	 	 Total accounts receivable 217,996 161,007

Less: Allowance for doubtful accounts	 	 (7,432)	 	 (7,311)

 Total accounts receivable, net $ 210,564 $ 153,696

(Dollars in thousands)

 2009 2008

Publications for sale	 $	 7,485	 $	 6,199

Paper	 	 	 	 	 	 4,539 4,324

Supplies and materials	 16,920 	 32,518

Work in process	 	 4,882	 10,274

	 	 	 Total inventory 33,826 53,315

Less: Allowance for surplus and obsolete inventory	 (4,995) 	 (5,024)

	 	 Inventory, net $ 28,831 $ 48,291
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 45

5. Prepaid Expenses

Prepaid expenses totalled $1,823,000 as of September 30, 2009, and $903,000 as of September 30, 2008. The increase of 

$920,000 results primarily from a prepayment for computer infrastructure upgrades. 

6. General Property, Plant and Equipment, Net

Net property, plant and equipment as of September 30, 2009 and 2008, consisted of the following.

General property, plant and equipment increased by $7.9 million in fiscal 2009 from fiscal 2008 due primarily to an 

increase in plant machinery and equipment of $4.5 million; an increase in computers and computer software of $27.2 million; a decrease in capitalized software in process of $15.5 million; an increase in capital improvements in process of $4.8 

million; and an increase in accumulated depreciation and amortization of $13.6 million. The increase in plant machinery 

and equipment was primarily from the acquisition of a Trusted Traveler card manufacturing system for about $3.3 million 

in fiscal 2009. The increase in computers and computer software of $27.2 million was primarily due to FDsys software 

($26.9 million) placed into service during fiscal 2009, $21.0 million of which was in capitalized software in process at 

September 30, 2008. 

During fiscal 2009, GPO also made other capital expenditures including business information systems improvements for 

about $3.5 million, installing a fire alarm system for $1 million, and investing in infrastructure improvements for the Federal 

Depository Library Program for $479,000.

Capital improvements in process at September 30, 2009 are comprised of computer infrastructure upgrades (internal 

network and telephone system) of about $3 million, roof repairs of $1.4 million, and elevator overhauls of $400,000.

Depreciation expense was $17.2 million for fiscal 2009 and $10.4 million for fiscal 2008. The increases were largely the 

result of amortizing FDsys software ($3.5 million) in fiscal 2009 and a full year of SPF asset depreciation ($3.4 million) in 

fiscal 2009, versus a partial year of depreciation in fiscal 2008 ($917,000).

Section IV: Consolidated Financial Statements

(Dollars in thousands)

 2009 2008

Land	 	 	 	 	 	 $	 9,971 $	 9,971

Buildings and improvements	 	 78,181 	 77,886

Plant machinery and equipment	 	 93,323 	 	 88,818

Computers and computer software	 70,407 	 43,201

Furniture and fixtures	 6,321 	 6,268

Motor vehicles	 	 	 	 719 	 556

Leasehold improvements	 10,191 	 10,162

Capitalized software in process 	 5,457	 	 20,965

Capital improvements in process 	 4,776	 	 13

 Total 279,346 257,840 

Less: Accumulated depreciation and amortization	 (164,205)	 	(150,646)

 General property, plant and equipment, net $ 115,141 $ 107,194 
46 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

7. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2009 and 2008, were composed of the following. 

The increase in accounts payable and accrued expenses of $7.8 million was attributable to increased demand for printing procured 

from commercial sources near year end. The increase in accounts payable and accrued expenses resulted from an increase in accounts payable to printing contractors of $13.5 million, offset by decreases in payables for capital assets and production materials of 

$3.7 million and $2.3 million, respectively. 

8. Deferred Revenues 

As of September 30, 2009 and 2008, deferred revenues from customers consisted of the following.

GPO held $95.3 million and $86.3 million in customer deposit accounts as of September 30, 2009 and 2008, respectively. Of these 

amounts, Federal Government customers had advanced funds of $92.2 million and $82.9 million for printing and binding deposit 

accounts, and customers advanced $3.1 million and $3.4 million for publication and information sales program deposit accounts as of 

September 30, 2009 and 2008, respectively. Additionally, GPO held advanced funds from the Federal Government and other customers of $2.9 million and $2.8 million for subscriptions for the sales of publications as of September 30, 2009 and 2008, respectively. The 

restricted funds in these deposit accounts will generally be applied to future orders placed by customers or refunded on request.

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

for ink-on-paper subscriptions to the Congressional Record, the Federal Register, and other publications in advance of delivery. The 

revenues from subscriptions are recognized as the periodicals are published and distributed to subscribers. The unfilled subscription balance will be refunded in instances where the subscription is no longer available for sale, or the customer cancels their 

subscription.

The Agency also defers the recognition of revenues for unfilled customer orders of publications and other information products 

until the orders are shipped.

GPO defers the recognition of revenues for advance billings to Federal Government customers. Advance billings are occasionally 

used to finance the cost of producing certain large printing and binding jobs. GPO will recognize the revenue as work is completed.

Section IV: Consolidated Financial Statements

(Dollars in thousands)

2009 2008

Deposit accounts	 	 	 $	 95,290	 $	 86,260

Subscriptions	 	 	 	 2,909 	 2,773

Unfilled orders 	 	 247 	 294

Advance billings	 	 	 188 	 49

	 	 Total $ 98,634 $ 89,376

(Dollars in thousands)

2009 2008

Accounts payable:	

Commercial printing $ 	 65,057 	 $ 	 51,619

U.S. Government agencies	 	 12,596 	 14,3

	 Other	 	 	 	 	 	 27,261 	 	 31,454

	 	 Total accounts payable 104,914 97,378 

Accrued salaries and payroll taxes	 	 15,785 	 15,480

	 	 Total accounts payable and accrued expenses $ 120,699 $ 112,858 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 47

9. Workers’ Compensation Liability

The DOL develops an actuarial estimate of future workers’ compensation benefits for each Federal entity to use for financial reporting each year. The U.S. Department of the Treasury requires Federal entities to use DOL’s estimates for intra-governmental accounting of this liability. The workers’ compensation liability estimate for GPO was $71,174,000 as of September 30, 2009, and $67,067,000 

as of September 30, 2008. 

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 COLAs) and medical inflation factors (consumer price index medical or CPIMs) to the calculation of 

projected benefits. The COLAs and CPIMs used in the compensation projections for 2009 and 2008 follow.

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 2009, interest rate assumptions were 4.223 percent in Year 1, and 

4.715 percent in Year 2 and thereafter. For 2008, interest rate assumptions were 4.368 percent in Year 1, and 4.770 percent in Year 2 

and thereafter.

10. Commitments

 10. A. Operating Leases

As of September 30, 2009, GPO was committed to various non-cancelable operating leases, primarily covering warehouse and 

office space. Some of these leases contain escalation clauses and renewal options. Lease and rental expenses for real and personal 

property were $3.7 million and $4.1 million for fiscal 2009 and 2008, respectively.

A schedule of future minimum rental payments required under operating leases by type, which have initial or remaining noncancelable lease terms in excess of one year, follows.

Section IV: Consolidated Financial Statements

	 	 	 	

COLA CPIM

Fiscal Year 2009 2008 2009 2008

2009	 N/A	 3.87%	 N/A	 4.01%

2010	 0.47%	 2.73%	 3.42%	 3.86%

2011	 1.40%	 2.20%	 3.29%	 3.87%

2012	 1.50%	 2.23%	 3.48%	 3.93%

2013	 1.80%	 2.30%	 3.71%	 3.93%

2014 and beyond	 2.00%	 2.30%	 3.71%	 3.93%

Future Minimum Rental Payments Required Under Operating Leases

(Dollars in thousands)

Fiscal Year Warehouse Office Total

2010	 $	 993	 $	 517 	 $	 1,510

2011	 	 534	 	 363	 	 897

2012	 381	 	 336	 	 717

2013	 	 64	 	 29	 	 93

2014 and beyond	 —	 —	 —

Total minimum lease payments $ 1,972 $ 1,245 $ 3,217
48 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

 10. B. Obligations

GPO had unliquidated obligations of $208.6 million and $157.1 million, at September 30, 2009 and 2008, respectively, of which 

$122.1 million and $125.9 million, respectively, are undelivered orders related to commercial printing. These obligations include 

purchase orders and contractual obligations by GPO to acquire goods and services from the private sector and other sources. Some 

of these orders are scheduled for delivery or performance in the next fiscal year.

 10. C. Product Warranty Liabilities

GPO and the U.S. Department of State have agreed that GPO is liable for warranty expenses that exceed 2-percent, per order, of 

electronic passport books deemed to have failed, before personalization by the U.S. Department of State, due to GPO production 

problems. Based on the lack of claims against this warranty during fiscal years 2007 through 2009, GPO estimates that the warranty 

liability should be zero at September 30, 2009. This liability was estimated at approximately $1.4 million as of September 30, 2008.

11. Contingencies

 11. A. Administrative Proceedings, Legal Actions, and Claims

GPO is a party in various administrative proceedings, legal actions, and claims brought against the Federal Government by employees, contractors, and other parties. The uncertainty involving the outcome of these pending matters will be resolved when future 

events occur or fail to occur. In some cases, legal matters relate to contractual arrangements GPO has entered into for goods and 

services procured on behalf of other Federal entities. The costs of administering, litigating, and resolving these actions are borne 

by the GPO Revolving Fund unless the costs are recovered from another Federal entity. As of September 30, 2009 and 2008, GPO 

has recorded estimated liabilities of $33,500 and $155,000, respectively, related to claims that management believes the likelihood of 

an adverse result against GPO is probable. Such amounts are included in accounts payable and accrued expenses in the financial 

statements. Certain legal matters in which GPO is a named party may be administered and litigated on behalf of GPO by the U.S. 

Department of Justice. In these cases, amounts paid under any judgment, compromise settlement, or award are funded from the 

Judgment Fund administered by the U.S. Department of the Treasury (31 U.S.C. § 1304). The Judgment Fund paid a total of $366,000 

and $67,000 on behalf of GPO for the years ended September 30, 2009 and 2008, respectively. These amounts are not reflected in 

GPO’s consolidated financial statements.

There were no litigation contingencies involving GPO where the risk of loss was reasonably possible as of September 30, 2009 

and 2008, respectively.

 11. B. Environmental Liabilities

The GPO Central Office in Washington, DC, is located in an industrial facility comprised of four older buildings that contain asbestos 

building materials. When they were constructed, asbestos was a common building material used as flame retardant, thermal system 

insulation, and in a variety of building materials (e.g., wall, floor, and ceiling tiles). GPO asbestos abatement efforts have been 

successful in the removal, enclosure, and encapsulation of friable asbestos to comply with applicable laws and regulations. GPO 

routinely performs asbestos abatement when unexposed asbestos is detected during building renovation projects.

The estimated costs to remove exposed asbestos within the GPO facility, mainly encapsulated pipe insulation, were $599,000 

as of September 30, 2009 and $580,000 as of September 30, 2008. These amounts are included in accounts payable and accrued 

expenses on the financial statements. The costs to remediate all non-visible asbestos is not reasonably estimable and accordingly has 

not been accrued in the financial statements due to the uncertainty surrounding the date and manner in which the liability will be 

settled.

12. Net Position

 12. A. Cumulative Results of Operations

Retained Earnings – Retained earnings include the net operating results of the GPO Revolving Fund, since inception, less certain 

required transfers to other Federal agencies.

Invested Capital – Invested capital represents the resources of the Federal Government that were directly appropriated to the 

Agency by Congress for investment in GPO assets (land, buildings, equipment, and capital).

Section IV: Consolidated Financial Statements
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 49

 12. B. Unexpended Appropriations

The following table presents unexpended appropriation balances from September 30, 2007 through September 30, 2009, for appropriations made available to GPO.

 

As of September 30, 2009, GPO had obligated all the $38.3 million of the unexpended appropriations available for Congressional 

printing and binding, and all of the $24.5 million of the unexpended appropriations available for Salaries and Expenses. The obligations are based on the estimated cost of open orders as of September 30, 2009. At September 30, 2008, the obligations were $22.2 

million in Congressional Printing and Binding Appropriations and $18.1 million in Salaries and Expenses Appropriations.

The Revolving Fund unexpended appropriations balances at September 30, 2009 and September 30, 2008 were $4.9 million and 

$6.4 million, respectively. The Revolving Fund unexpended appropriations balances are the result of the following appropriation 

activities:

n In fiscal 2001, Congress authorized the transfer of $9.5 million to the Revolving Fund from prior year Congression

Printing and Binding Appropriations to cover the cost of congressional work. At the end of fiscal 2008, the entire $9.5 

million was expended. 

n In fiscal 2001, Congress authorized the transfer of $3.3 million to the Revolving Fund from prior year Salaries a

Expenses Appropriations to pay for the printing and distribution of publications to depository libraries. As of September 

30, 2009, GPO expended $2,350,000 from this appropriation. At the end of fiscal 2009 and 2008, balances of $951,000 

and $1.3 million were available for future expenditures, respectively.

n In fiscal 2005, Congress authorized GPO to transfer $22 million to the GPO Revolving Fund from prior year appropriat

funds to finance the development of the FDsys. These funds were also available for annual appropriation shortfalls. The 

$22 million transfer consisted of $14.6 million from Congressional Printing and Binding Appropriations and $7.4 million 

from Salaries and Expenses Appropriations. As of September 30, 2009, GPO expended the entire $22 million. At the end 

of fiscal 2008, a balance of $1.1 million was available for future expenditures.

n In fiscal 2005, GPO was authorized by Congress to transfer $2.5 million from the prior year’s unexpended Salaries a

Expenses Appropriation to the GPO Revolving Fund. The funds were advanced to the U.S. Department of the Interior 

(GovWorks) for improvements to GPO Access that were ordered in fiscal 2004. System enhancements included increased 

storage capacity, stronger security, and improved user performance. This project was completed during fiscal 2008. As a 

result, the entire $2.5 million was expended as of September 30, 2008.

Section IV: Consolidated Financial Statements

(Dollars in thousands)	

Revolving Salaries and Congressional

Fund Expenses Printing and

Appropriations Appropriation Appropriation Binding Appropriation Total

Unexpended balance at September 30, 2007 $ 19,715 $ 14,927 $ 17,621 $ 52,263 

2008 fiscal year appropriation activi

Receved	 	 — 	 34,913 	 89,775

Transferred	 1230	 

Expended	 	 (14,531)	 	 (31,730)	 	 (83,927)	 	 (13

Unexpended balance at September 30, 2008 6,414 18,110 22,239 46,763 

2009 fiscal year appropriation activi

Receved	 	 4,995 	 38,744 	 96,82

Transferred	 	 479	 	 (479)	 	 

Expended	 	 (6,945)	 	 (31,859)	 	 (80,806)	 	 (11

Unexpended balance at September 30, 2009 $ 4,943 $ 24,516 $ 38,261 $ 67,720 

 
50 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

n In fiscal 2006, Congress appropriated $2 million (before rescission of $20,000) to the Revolving Fund for workforce 

retraining. As of September 30, 2009, GPO had expended the entire $1,980,000. At the end of fiscal 2008, $573,000 was 

available for expenditure.

n In fiscal 2007, Congress appropriated an additional $1 million to the Revolving Fund for workforce retraining. As of 

September 30, 2009, GPO had expended $18,000. At the end of fiscal 2009 and 2008, balances of $982,000 and $1 million 

were available for future expenditures, respectively.

n In fiscal 2007, Congress authorized the transfer of $5.7 million to the GPO Revolving Fund from prior year Congressional 

Printing and Binding Appropriations to help cover appropriation shortfalls. As of September 30, 2009, the entire $5.7 

million of this appropriation was expended. At the end of fiscal 2008, a balance of $1.3 million was available for 

expenditure. 

n In fiscal 2008, Congress authorized the transfer of $1.23 million to the GPO Revolving Fund from prior year Congressional 

Printing and Binding Appropriations to help cover appropriation shortfalls. As of September 30, 2009, GPO expended 

$422,000 from this appropriation. At the end of fiscal 2009 and 2008, balances of $808,000 and $1.1 million were available for expenditure.

n In fiscal 2009, Congress appropriated $4.995 million to the Revolving Fund for information technology development and 

facilities repair. As of September 2009, GPO expended about $2.8 million from the appropriation. At the end of fiscal 

2009, about $2.2 million was available for expenditure. 

n In fiscal 2009, GPO transferred $479,000 from the Salaries and Expenses Appropriation to the Revolving Fund for infrastructure improvements for the Federal Depository Library Program.

13. Appropriated Funds

 13. A. Available Appropriations

The total appropriations made available to GPO, net of rescissions, for fiscal 2009 and 2008 were as follows.

Section IV: Consolidated Financial Statements

(Dollars in thousands)

2009 2008

Congressional printing and binding	 $	 96,828 $	 89,775

Salaries and expenses	 	 38,744	 	 34,913

Revolving fund	 	 4,995	 	

Total available appropriations $ 140,567 $ 124,688 
U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 51

 13. B. Expended Appropriations

The total appropriations expended by GPO during fiscal 2009 and 2008 were as follows.

Section IV: Consolidated Financial Statements

(Dollars in thousands)

 2009 2008

Congressional printing and binding:

Congressional Record products	 $	 22,368 $	 23,615

	 Miscellaneous publications and printing and binding	 	 22,016	 	 20,177

	 Hearings		 	 18,064 	 	 16,019

	 Bills, resolutions, and amendments	 	 7,177 	 	 7,378

	 Details to Congress	 	 2,567 	 	 2,619

	 Other	 	 8,614 	 	 14,119

	 	 Total congressional printing and binding 80,806 83,927

Salaries and expenses:

	 Depository library distribution	 	 22,857 	 	 23,309

	 Cataloging and indexing	 	 6,911 	 	 6,368

	 By-law distribution	 	 704 	 	 705 

	 International exchange	 1,387 	 	 1,348

	 	 Total salaries and expenses 31,859 31,730 

Revolving Fund:

	 Infrastructure improvements and other	 	 6,353	 	 13,854

	 Workforce retraining	 	 592 	 677

 Total revolving fund 6,945 14,531

 Total expended appropriations $ 119,610 $ 130,188 

Reconciliation of expended appropriations to the	

	 consolidated statements of revenues, expenses,

	 and changes in retained earnings:

	 	 Total expended appropriations $ 119,610 $ 130,188 

Eliminations (Intra-agency)	 	 (371)	 	 (77)

Consolidated revenues from appropriations $ 119,239 $ 130,111 
52 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

14. Employee Benefit Plans

GPO funds a portion of pension contributions for its employees under the Civil Service Retirement System (CSRS) and the Federal 

Employees Retirement System (FERS), and makes payroll deductions from employees for their pension contributions. OPM determines the employer contributions for these defined benefit plans that are required to be paid by GPO. OPM is responsible for 

Government-wide reporting of CSRS and FERS assets, accumulated plan benefits, and unfunded liabilities. In accordance with FASB, 

and consistent with multi-employer pension plans, GPO has reflected only the required contribution to these programs in its financial statements. OPM is responsible for funding any other costs. Therefore, GPO is not required to disclose the unfunded pension 

liability and post-employment benefits relative to its employees.

Civil Service Retirement System

The CSRS is a defined benefit plan. Generally, it covers Agency employees first hired before 1984. Total GPO (employer) contributions to CSRS for employees covered under this retirement program were 7.5 percent of basic pay in both 2009 and 2008 for 

investigators and law-enforcement officers, and 7 percent of basic pay in both years for all other employees. GPO contributions were 

$3.9 million and $4.1 million for the years ended September 30, 2009 and 2008, respectively.

Federal Employees Retirement System

Using Social Security benefits as a base, FERS provides a defined benefit plan (Basic Benefit Plan) and a voluntary defined contribution plan. Employees first hired after December 31, 1983 were automatically covered by FERS and Social Security, while employees 

hired prior to January 1, 1984 were able to choose between joining this plan or remaining in CSRS.

The employer contribution rate to FERS for GPO law enforcement officers was 24.9 percent of basic pay in fiscal 2009 and 2008. 

The FERS contribution rate for all other employees was 11.2 percent in both years. GPO contributions to FERS totaled $12.6 million 

for fiscal 2009 and $11.6 million for fiscal 2008.

Thrift Savings Plan

The Thrift Savings Plan (TSP) allows employees to defer the recognition of income tax on contributions made to the plan. The TSP 

elective deferral limit for employees was $16,500 for 2009 and $15,500 for 2008. Employees, who were 50 years old or older, were 

allowed additional catch-up contributions of $5,500 in 2009 and $5,000 in 2008. For FERS employees, the employer is required to 

contribute 1 percent of the employee’s base pay to the TSP, and to match voluntary employee contributions dollar-for-dollar for the 

first 3 percent of pay, and 50 cents on the dollar for the next 2 percent of pay. Thus, the employer contribution to the TSP can be up 

to 5 percent for FERS employees. Employees participating in CSRS may contribute to the TSP, but they do not receive any matching 

contributions from the employer. GPO made employer contributions to the TSP of $4.2 million in fiscal 2009 and $3.6 million in 

fiscal 2008.

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 $106,800 

in 2009 and $102,000 in 2008) 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, 2009 and 2008 totaled $10.0 million and $9.4 million, 

respectively.

Employment, 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 Care Insurance Program (FLTCIP) before and after their retirement from the Agency.

Section IV: Consolidated Financial Statements
15. Major Customers

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

fiscal 2009 and 2008, billings to those customers representing 10 percent or more of GPO’s total billings follow.

The decrease in billings to the U.S. Department of State in fiscal 2009 is attributable to the decreased demand for 

U.S. Passports. 

16. Impairment Loss 

In the fiscal 2009, GPO wrote off $1.19 million of capitalized costs of a module of FDsys as an impairment loss. The decision was made because the software code that was developed had scalability constraints that rendered the code unable to 

meet FDsys requirements. The scalability constraints negated the future economic benefit to GPO. The $1.19 million that 

was written off had been reported as software-in-progress at September 30, 2008.

17. Fair Value Measurement

GPO adopted Fair Value Measurements and Disclosures (ASC 820-10), on October 1, 2008. The fair values in GPO’s financial instruments represent GPO’s best estimates of the amounts that would be received to sell those assets, or that would 

be paid to transfer those liabilities, in an orderly transaction between market participants at that date. Those fair value 

measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for 

the asset or liability at the measurement date, the fair value measurement reflects GPO’s own judgments about the assumptions that market participants would use in pricing the asset or liability. GPO developed those judgments based on the best 

information available in the circumstances.

ASC 820-10 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair 

value. The hierarchy gives the highest priority to unadjusted price quote in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 

measurements).

GPO’s financial instruments are comprised of cash, accounts receivable, accounts payable, and accrued liabilities as of 

September 30, 2009 and 2008. The carrying amounts of these financial instruments approximate fair value because of the 

short-term nature of these instruments. GPO holds no financial instruments that are measured at fair value on a recurring 

basis or for which the fair value option has been elected at September 30, 2009.

18. Subsequent Events

GPO has evaluated subsequent events through January 8, 2010, the date which the financial statements were available to 

be issued. There were no material events that required adjustment, accrual, or disclosure.

Section IV: Consolidated Financial Statements

U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009 53

(Dollars in thousands)

 2009 2008

Amount Percent Amount Percent

Department of State	 $	 174,312 	 18.7%	 $	 366,302 	 35.1%

Department of Defense	 	 109,162 	 11.7%	 162,506 	 15.6%
54 U.S. GOVERNMENT PRINTING OFFICE Financial Year in Review — FY 2009

ACRONYM LIST

ASC	 Accounting Standards Codification

COLA	 Cost of Living Adjustments

CP&B	 Congressional Printing and Binding

CPIM	 Consumer Price Index Medical

CSRS	 Civil Service Retirement System

DoD	 U.S. Department of Defense

DOL	 U.S. Department of Labor

EFT	 Electronic Funds Transfer

FASAB	 Federal Accounting Standards Advisory Board

FASB	 Financial Accounting Standards Board

FDLP	 Federal Depository Library Program

FDsys	 GPO’s Federal Digital System

FECA	 Federal Employees’ Compensation Act

FEGLI	 Federal Employees’ Group Life Insurance

FEGLIP	 Federal Employee Group Life Insurance Program

FEHB	 Federal Employees Health Benefits

FEHBP	 Federal Employees Health Benefit Program

FERS	 Federal Employees Retirement System

FICA	 Federal Insurance Contributions Act

FLTCIP	 Federal Long Term Care Insurance Program

FTP	 File Transfer Protocol

GAAP	 U.S. Generally Accepted Accounting Principles

GAO	 U.S. Government Accountability Office

GBIS	 U.S. Government Printing Office Business Information System

GCN	 Government Computer News

GPO or Agency	 U.S. Government Printing Office

GSA	 U.S. General Services Administration

IPAC	 Intra-governmental Payment and Collection

ISO	 International Organization for Standardization

JCP	 Joint Committee on Printing

OASDI	 Old Age, Survivors, and Disability Insurance

OIG	 Office of the Inspector General

OMB	 Office of Management and Budget

OPM	 Office of Personnel Management

PKI	 Public Key Infrastructure

RSIP	 GPO Retirement Separation Incentive Program

RSS	 Really Simple Syndication

S&E	 Salaries and Expenses

SID	 Secure and Intelligent Documents

SPF	 Secure Passport Facility

SSA	 U.S. Social Security Administration

Treasury	 U.S. Department of the Treasury

TSP	 Thrift Savings Plan

U.S.C.	 United States Code

XML	 Extensible Markup Language