United States 

Government Printing 

Office

Annual Report 

Fiscal Year 1998 

Keeping America Informed 
UNITED STATES 

GOVERNMENT

PRINTING

OFFICE

ANNUAL REPORT 

FISCAL YEAR 1998

Page Table of Contents 

Public Printer’s Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

The Government Printing Office . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Part I - Highlights 

$1.5 Million GAO Management Audit Gives GPO 

High Marks For Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

GPO Access Selected As One Of The “Best Feds On The Web” . . . . .9

Public Use Of Online Budget Jumped More Than 500 Percent . . . . . .10

New Computer-To-Plate Technology Reduces Costs, 

Improves Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

GPO Acquires New U.S. Passport Binding Line . . . . . . . . . . . . . . . . .11

New GPO Deposit Accounts Eliminate Costly Agency Paperwork 

And Save Taxpayers Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

GPO Receives Clean Opinion In Audit Of FY 1997 Finances . . . . . . .13

GPO’s Printing Procurement Program Saves Taxpayers Big $$$ . . . . .14

GPO Provides Public Access To Starr Report In Print 

And Electronic Formats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

GPO Attacks The Y2K Computer Glitch . . . . . . . . . . . . . . . . . . . . .19

Expanding Electronic Dissemination To Depository Libraries . . . . . . .19

Congressional Hearings On GPO In 1998 . . . . . . . . . . . . . . . . . . . . .22

Part II - Financial Year in Review 

Report of Independent Certified Public Accountants . . . . . . . . . . . . .26

Operating Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . .33

Financial Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

Consolidated Statements of Revenues and Expenses . . . . . . . . . . . . . .41

Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . .42

Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . .43

Consolidating Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . .61

Supplemental Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65

Public Printer’s Assertion Letter on Internal Controls . . . . . . . . . . . . .71

GPO Annual Report 1998 iii

Public Printer’s Message 

For the Government Printing 

Office (GPO), fiscal year 1998 

began with a major, congressionally-ordered management review that 

revealed strong support for our 

operations. It ended in an avalanche of activity associated with 

producing and disseminating the 

various documents delivered by 

Independent Counsel Kenneth 

Starr, earning GPO widespread 

recognition in Congress, in the 

industry, and among the public for 

our rapid production and dissemination of these materials in both 

print and electronic formats. In 

between, GPO Access, our popular 

online information service (www. 

access.gpo.gov), was recognized by 

Vice President Gore as one of the 

best “Feds on the Web,” and we 

made major strides in the computerized equipment modernization of 

our plant. In spite of the continued 

transition of our mission from 

traditional print-based production 

to the provision of information 

services in multiple formats, we 

ended fiscal year 1998 with consolidated net income for the second 

consecutive year, and our financial 

statements were once again found 

to meet the highest standards by an 

independent financial auditor. 

The positive results of fiscal year 

1998 can be attributed entirely to 

the efforts of the men and women 

of GPO, and I am extremely proud 

of what they were able to achieve. 

The skilled work of GPO’s dedicated employees enables Congress to 

function smoothly and allows 

Federal agencies to fulfill their 

responsibilities effectively. Most 

importantly, their work makes it 

possible for the Federal 

Government to keep America 

informed. We look forward to 

the challenge of continuing to 

fulfill this important responsibility 

with new technology solutions as 

we approach the opening of the 

21st century. 

MICHAEL F. DiMARIO 

Public Printer 

April 1999 

GPO Annual Report 1998 1
The Government Printing Office 

Keeping America Informed 

The Government Printing Office 

(GPO) keeps America informed. 

For nearly 140 years, GPO has 

produced and distributed Federal 

Government information products. Whether providing public 

access to Government information 

online, or producing or procuring 

printed publications, GPO has 

combined conventional technology 

with state-of-the-art methods for 

supporting nearly all the information needs of the Congress, 

Federal agencies, and the 

American public. 

Role In Government 

GPO is at the forefront GPO is part of the legislative 

branch of the Federal Government. in providing Government The Public Printer, who serves as 

information through a GPO’s chief officer, is nominated 

by the President and confirmed by wide range of formats, the Senate. GPO operates under 

the authority of the public printing including printing, and documents chapters of Title 

microfiche, CD-ROM, 44 of the U.S. Code. 

and online technology Created primarily to satisfy the

through GPO Access printing needs of Congress, GPO 

(www.access.gpo.gov). today is the focal point for printing, binding, and information dissemination for the entire Federal 

community. In addition to 

Congress, approximately 130 

Federal departments and agencies 

rely on GPO’s services. 

Congressional documents, Federal 

regulations and reports, IRS tax 

forms and U.S. passports—all are 

produced by or through GPO. 

At one time GPO’s mission was 

accomplished through the production and procurement of traditional ink-on-paper printing. Today, 

after more than a generation’s 

experience with electronic printing 

systems, GPO is at the forefront in 

providing Government information 

through a wide range of formats, 

including printing, microfiche, 

CD-ROM, and online technology 

through GPO Access (www.access. 

gpo.gov).

Facilities And Personnel 

Carrying out GPO’s mission takes 

the skills and dedication of a workforce of more than 3,300 employees 

nationwide. Most are based at 

GPO’s central office facility in the 

Nation’s Capital, making GPO the 

largest industrial employer in the 

District of Columbia. Also located 

in the National Capital area are two 

warehouses, one for paper and the 

other for publications. Across the 

country, a printing plant in Denver, 

20 regional and satellite procurement offices, a distribution facility 

and bookstore in Pueblo, CO, and 

23 other bookstores—each located 

in a major metropolitan area— 

complete GPO’s overall structure. 

Funding

Unlike most Federal agencies, GPO 

operates just like a business—it is 

reimbursed by its customers for the 

cost of the work it performs. In FY 

1998, GPO’s revenues totaled $723 

million (net after eliminations), 

including (before eliminations) $658 

million for printing, $61 million for 

sales of publications, $31 million for 

depository library and related distri2 GPO Annual Report 1998 
GPO’s finances are audited 

every year by an independent 

auditor, and every year 

they receive an “unqualified” 

opinion—the best that 

auditors can issue. 

bution programs, $5 million for 

distribution services reimbursed by 

agencies, and $3 million from other 

operations. GPO’s finances are 

audited every year by an independent auditor, and every year they 

receive an “unqualified” opinion— 

the best that auditors can issue. 

Procurement Services 

More than 70 percent of GPO’s 

printing revenue is from agencies 

for work procured by GPO from 

the private sector printing industry. GPO has a long-standing partnership with America’s printing 

industry to provide for the 

Government’s printing needs. 

GPO competitively buys products 

and services from more than 

10,000 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. 

In-Plant Operations And 

Information Technology 

GPO’s in-plant facility provides 

highly sophisticated electronic 

information systems and state-ofthe-art production technologies to 

fully support the information 

product needs of Congress and 

Federal agencies. GPO produces 

the Congressional Record 

overnight when Congress is in 

session, and bills, hearings, 

documents, reports, and committee prints are all produced in time 

to support Congress’ legislative 

needs. Also produced in-plant 

is the Federal Register, the 

Government’s official listing of 

proposed rules and regulations, 

as well as the Code of Federal 

Regulations and the Commerce

Business Daily. Other key 

Government documents produced 

at GPO include the annual Budget

of the United States and more than 

7 million U.S. passports and nearly 

230 million postal cards each year. 

GPO’s plant either uses or sells 

more than 60 million pounds of 

paper each year, and more than an 

estimated 100,000 tons of paper 

are used annually by private sector 

contractors performing work for 

GPO. All paper used by GPO 

and its contractors meets Federal 

recycled paper requirements and 

all GPO printing inks utilize 

vegetable oil content. 

Beginning in the 1960’s, GPO was 

one of the first printing organizations nationwide to pioneer the use 

of electronic typesetting systems in 

place of traditional practices. Since 

then, successive generations of 

technology have been deployed by 

GPO to develop electronic data 

bases of Government information 

products from which publications 

in both print and electronic formats 

are produced. New computer-toplate technology has further 

updated GPO’s capabilities. 

GPO has also been a leading 

producer of Government CDROM’s for more than a decade. 

Today, GPO uses electronic information technology to increase 

efficiency in its print production 

processes, facilitate electronic commerce in its printing procurement 

and documents sales programs, 

improve administrative and 

communications capabilities, and 

expand public access to Government 

information via the Internet and 

other electronic means. In 

December 1998, GPO was named 

GPO Annual Report 1998 3
The Government Printing Office (continued) 

Today, through the 

Superintendent of Documents 

programs, GPO disseminates 

the largest volume of 

Government informational 

literature in the world. 

the top in-plant operation in the 

country by In-Plant Graphics 

magazine. And in March 1999, 

GPO was named by PC Week 

magazine as one of the top technology innovators in the Nation. 

Superintendent of Documents 

While the original job of GPO 

was to handle printing, responsibility for the sale and distribution of 

Government publications was 

added in 1895, when Congress 

passed the comprehensive printing 

act which became Title 44 of the 

U.S. Code. Today, through the 

Superintendent of Documents 

programs, GPO disseminates the 

largest volume of Government 

informational literature in the 

world. GPO’s documents carry 

an average price of about $12, 

although many are low cost consumer publications. Approximately 

12,000 titles are available for sale 

to the public at any given time. 

These are sold principally by mail 

order and through 24 bookstores 

located in the Washington, DC, 

area and around the country. 

Publications are also sold through 

the Consumer Information Center 

in Pueblo, CO. More than 2,700 

sales orders are processed every day. 

To order Government publications, phone 202-512-1800, fax 

202-512-2250, mail orders to 

Superintendent of Documents, 

P.O. Box 371954, Pittsburgh, PA 

15250-7954, or order online from 

www.access.gpo.gov/su_docs. 

Government information in both 

traditional and electronic formats is 

also made available by GPO to 

more than 1,350 Federal depository 

libraries nationwide for the free use 

of the public. These libraries are 

designated by Members of Congress 

or by law as official depositories. In 

FY 1998, GPO distributed 14.4 

million copies of approximately 

39,000 tangible products in print, 

microform, and CD-ROM formats 

to depository libraries. Virtually 

every depository library also has 

access to the vast range of information made available online via 

GPO Access.

In addition, GPO distributes U.S. 

Government publications to more 

than 60 nations around the world 

through an International Exchange 

Program administered by the 

Library of Congress. Superintendent 

of Documents programs also catalog 

and index Government information, 

distribute publications as required 

by law, and provide a reimbursable 

distribution service for other 

Federal agencies. 

GPO Access 

At the forefront of GPO’s electronic 

information dissemination capabilities is GPO Access. GPO Access is

one of the few Government web 

sites established by law and one of 

the longest running, beginning 

operation in 1994. It is virtually the 

only Government website that provides easy, one-stop, no-fee access 

to information from all three 

branches of the Government. 

4 GPO Annual Report 1998 
In 1998, GPO Access 

was named one of the 15 

“Best Feds on the Web” 

by Vice President Al Gore 

and Government Executive 

magazine. Federal Computer 

Week magazine said, 

“The GPO site stands 

out as an unassuming, 

information-rich offering.” 

Approximately 70 applications 

make information available 

from more than 1,000 databases, 

representing more than 92,000 

individual titles. GPO Access also

provides links to an additional 

45,000 titles on other Federal 

websites. Overall, more than 

277.5 million documents have 

been retrieved by the public from 

GPO Access since 1994. Monthly 

document retrievals today average 

more than 19 million, or about 

836 gigabytes of information. 

In 1998, GPO Access was named 

one of the 15 “Best Feds on the 

Web” by Vice President Al Gore 

and Government Executive magazine. Federal Computer Week 

magazine said, “the GPO site 

stands out as an unassuming, 

information-rich offering.” The 

internationally recognized management firm of Booz-Allen & 

Hamilton, Inc., called GPO

Access “one of the Federal 

Government’s largest and most 

active websites” and said that the 

site “has been highly successful in 

making Government information 

easily available to the public.” 

In 1997, GPO Access and the 

Commerce Department jointly 

earned a Hammer Award from 

Vice President Gore’s National 

Performance Review for creating 

the new electronic Commerce

Business Daily, known as 

CBDNet. Other awards have 

included a 1994 Technology 

Leadership Award and the 

prestigious 1995 James Madison 

Award from the Coalition on 

Government Information. 

From its historic past to its electronic present, GPO has earned a 

reputation as one of the 

Government’s finest agencies—one 

dedicated to informing the Nation 

and providing its customers in the 

Government and the public with 

quality and service. This is a 

reputation that GPO’s workforce 

carries with pride as it looks to 

the challenges and opportunities 

of the new millennium. 

For more information, 

contact GPO’s Office of 

Congressional, Legislative, 

and Public Affairs, 

phone 202-512-1991, 

or e-mail gpoinfo@gpo.gov. 

GPO Annual Report 1998 5

Highlights 

“GPO’s timely and responsive 

services to Congress” are 

viewed as “a universal 

strength;” GPO’s printing 

procurement services are 

called “Government at 

its best;” and there is 

“strong support” for GPO’s 

depository library program. 

– Booz-Allen & Hamilton, Inc.

$1.5 Million GAO 

Management Audit Gives 

GPO High Marks For Service 

A General Accounting Officesponsored management audit of 

GPO in 1998 found “unanimous” 

and “universal” support for GPO’s 

in-house production, printing 

procurement, and depository 

library distribution services, and 

offered a variety of recommendations to improve these and other 

GPO programs, according to a 

report prepared by Booz-Allen & 

Hamilton, Inc. 

Citing congressional satisfaction 

with product quality and timely 

dependability of delivery, executive 

agency satisfaction with printing 

procurement services, and broad 

public support for free access 

to Government information 

through GPO’s depository libraries, 

the $1.5 million review was conducted in response to directions 

contained in the conference 

report to the FY 1998 Legislative 

Branch Appropriations Act. 

The report was funded by 

GPO’s revolving fund. 

The House and Senate Appropriations Committees directed the 

GAO to “include an objective 

evaluation” of GPO’s documents 

sales program, printing procurement program, in-house production 

operations, personnel management 

activities, financial systems, and 

information technology programs. 

The GAO was specifically instructed that its work “should not be 

encumbered by presupposing 

that GPO’s current operations . . . 

cannot be changed.” The audit 

was performed between December 

1997 and April 1998. 

The auditors found strong support 

in Congress for GPO’s in-house 

production operations for congressional printing, stating that GPO’s 

production area “consistently 

meets a demanding congressional 

production schedule” and that 

“GPO effectively satisfies its 

priority congressional customers 

and meets the variable demands 

and outputs requested by 

Congress.” According to the 

report, GPO’s “production 

functions are geared toward 

rapid and consistent turnout of 

congressional products” and 

are “flexible and responsive to 

changing congressional needs.” 

In addition, the report said GPO 

has “developed strong and cordial 

relationships with their contacts 

within congressional organizations 

and offices” and that GPO’s 

“communication with the congressional customer is frequent and 

regular.” The audit reviewed the 

feasibility of privatizing the 

production of the Congressional

Record but was inconclusive 

on any savings and suggested 

further study would be required. 

Moreover, it “found little support 

among congressional staff for 

relinquishing control of the 

in-plant production capability 

of GPO.” 

The auditors found “universal 

support” among executive branch 

agencies for GPO’s printing procurement program. The report 

said “these agencies viewed this 

service that GPO provides as an 

example of ‘Government at its 

best,’ and none of them felt that 

they wanted or could do this 

function better than GPO.” 

8 GPO Annual Report 1998 
The Booz-Allen report said 

GPO Access “is one of the 

Federal Government’s largest 

and most active websites” 

and suggested that GPO 

seek additional funds 

from Congress to expand 

this program. 

The report said GPO’s depository 

library program “is well managed, 

provides a valuable public service, 

and is respected by the library 

community.” The auditors also 

found strong support for GPO to 

make an increasing amount of 

Government information available 

electronically, free of charge, over 

the Internet and praised the success of GPO Access.

The Booz-Allen report said GPO

Access “is one of the Federal 

Government’s largest and most 

active websites” and suggested 

that GPO seek additional funds 

from Congress to expand this 

program. In addition, the report 

said “GPO has successfully implemented new I/T (information 

technology) capabilities in many 

parts of the organization.” 

The report contained a number 

of specific recommendations to 

improve the efficiency and 

effectiveness of GPO’s programs. 

Many of the recommendations 

addressed the need for investment 

to offset the effects of reduced 

spending and downsizing pursued 

by GPO in recent years. By yearend, action was underway 

on approximately 75 percent 

of the recommendations. The 

audit report is available online 

via the GAO’s website. 

GPO Access Selected As One Of 

The “Best Feds On The Web” 

GPO Access was named one of 

the “Best Feds on the Web” by 

Government Executive magazine

in 1998, adding to the list of 

awards garnered by this popular 

website.

GPO Access was one of just 15 

Federal websites to be selected for 

this award. In 1997, the General 

Accounting Office identified 4,300 

websites in the Federal Government 

(GAO, “Internet and Electronic DialUp Bulletin Boards: Information 

Reported by Federal Organizations” 

GAO/GGD-97-86, 6/16/97). GPO

Access was the only website in the 

legislative branch to be selected. 

In making its selections, Government

Executive said it picked “the sites we 

thought went above and beyond the 

typical ‘home page’ . . . Some of the 

better known and flashier Federal 

sites didn’t make the list because we 

felt they didn’t go the extra mile to 

serve their customers.” To be designated one of the “Best Feds on the 

Web,” Government Executive said

each site had to: 

• provide excellent customer 

service to the public by having 

a well-designed site that 

includes a large amount of 

useful information; 

• use the Web to improve 

business practices in their 

agencies or across 

Government; and 

• make use of new technologies that other Federal sites 

should consider emulating. 

Government Executive said GPO

Access “provides free electronic 

access to a wealth of important 

information published by the 

Government. The site offers 

Government information databases 

for online use, individual Federal 

agency files available for downloading, and tools to assist in finding 

Federal information and user 

GPO Annual Report 1998 9
In 1998, GPO acquired 

state-of-the-art computer-toplate technology that will 

dramatically reduce costs, 

improve press-ready 

plate quality, and expedite 

the processing of 

prepress work. 

support. Through just this one 

site, you can access the Federal

Register, the Congressional Record,

the Commerce Business Daily, and 

many more publications. It doesn’t 

get more convenient than that.” 

In a May 15, 1998, letter to Public 

Printer Michael DiMario, Vice 

President Al Gore congratulated 

GPO “for the excellent customer 

service you are providing through 

your website.” The Vice President 

said, “your organization continues 

to serve as an excellent model for 

other Federal agencies on how to 

provide an interesting and easy-touse website, providing consumers 

hassle-free access to Government 

services. Your innovative web 

site encourages consumers to 

contact your agency and to take 

advantage of the many services 

which you provide.” 

The Government Executive award

was one of many that have been 

won by GPO Access. Others 

include a 1994 Technology 

Leadership Award and the 1995 

James Madison Award. In 1997, 

GPO Access and the Commerce 

Department jointly earned a 

Hammer Award from Vice 

President Gore’s National 

Performance Review for creating 

the new electronic Commerce

Business Daily, known as CBDNet.

Also, in a 1998 review of GPO

Access, Federal Computer Week 

magazine said, “in a web environment overrun by sites that are the 

equivalent of a Hollywood movie 

set, where style takes precedence 

over substance, the GPO site 

stands out as an unassuming, 

information-rich offering.” 

Public Use Of Online Budget 

Jumped More Than 500 Percent 

As President Clinton’s Fiscal Year 

1999 Budget was released for sale 

to the public in GPO bookstores 

and through telephone mail orders 

in early 1998, thousands of 

Americans were reviewing the 

individual budget documents 

through GPO Access.

The public’s use of the online 

budget in 1998 contrasted sharply 

with the use of the online budget 

the year before. In 1997, the budget documents were released online 

the same day paper copies went on 

sale from GPO. At that time, first 

day sales were 7,918 copies while 

GPO Access hits for the budget 

documents were 10,149. 

In 1998, the paper budget and the 

online documents were again 

released the same day. This time, 

however, 7,390 paper copies were 

sold, while GPO Access hits for 

the budget documents jumped to 

64,428, an increase of 535 percent. 

New Computer-To-Plate 

Technology Reduces Costs, 

Improves Quality 

In 1998, GPO acquired state-ofthe-art computer-to-plate technology that will dramatically reduce 

costs, improve press-ready plate 

quality, and expedite the processing 

of prepress work. The acquisition 

of the two computer-to-plate (CTP) 

systems for $1.4 million will generate savings to the taxpayer of $7.3

million in just 3 years. The new 

systems are scheduled to be fully 

operational in 1999. 

10 GPO Annual Report 1998 
GPO’s new passport binding 

line will provide the needed 

capability to keep up with 

the increased demand for 

U.S. passports. 

With the recent development of 

large-format laser imaging devices 

that transfer imposed image 

computer files onto metal offset 

printing plates, and with the 

achievement of increased imaging 

speeds, CTP systems have evolved 

to the point where they are now 

cost-effective, time-saving, and 

reliable devices for the demanding 

work performed by GPO. The 

new equipment will accept electronic input for platemaking 

directly from GPO’s automated 

composition systems. 

Establishing networked, highspeed, fully automated platemaking 

capabilities saves substantial labor 

costs. CTP technology makes it 

possible to send electronic text and 

image files directly to automated 

platemaking devices, eliminating 

the need for film negatives and the 

additional labor-intensive manual 

processes of stripping and imposing 

those negatives onto goldenrod for 

conventional platemaking. It will 

also ensure consistently high quality plates. As a result, GPO will be 

able to deliver the same volume of 

quality print products to Congress 

and Federal agency customers at a 

significantly reduced labor cost. 

CTP technology saves in other 

ways as well. For example, it 

reduces the material costs for film 

and associated chemicals. And, 

by reducing the disposal and/or 

recycling of film and associated 

processing chemicals, it reduces 

hazards to the environment. 

Savings will be achieved by reducing the operating and maintenance 

costs of current film-processing 

and platemaking equipment. 

Total space requirements will 

also be reduced with the new 

equipment. In addition, the new 

equipment will give GPO the 

capability for electronic storage 

of imposed signatures. 

The new CTP equipment will be 

used to process the Congressional

Record, the Federal Register, the 

Code of Federal Regulations, the 

U.S. Code, the Budget of the United 

States, and patents-related publications, as well as most congressional 

bills, reports, and documents. The 

devices will include the capability to 

automatically process at least three 

different plate sizes, making them 

suitable for use on a wide variety of 

GPO products. The acquisition of 

this equipment means that GPO’s 

prepress processes will be totally 

electronic from submission of the 

information to the creation of the 

offset plate. 

GPO Acquires New U.S. 

Passport Binding Line 

During the year, GPO began the 

acquisition process for a new binding line for the production of U.S. 

passports. The new system, scheduled to be delivered in 1999, will 

replace equipment which has been 

in place since 1986. The GPO 

produces all U.S. passports for 

the State Department. 

GPO’s new passport binding line 

will provide the needed capability to 

keep up with the increased demand 

for U.S. passports. It is part of 

GPO’s long-term partnership with 

the State Department to provide 

efficient, timely, high-quality, and 

high-security production services 

for U.S. passports. 

The current GPO passport line, 

which will be retained as backup 

GPO Annual Report 1998 11
Agencies using GPO’s new 

deposit accounts will stop 

wasting valuable time and 

money, maintain control 

of their funds, eliminate 

expensive and complicated 

paperwork, and cut the cost 

of their printing. 

capacity, consists of two separate 

machines. The first assembles the 

preprinted pages and cover into a 

strip of three unfinished passports. 

The second prepares the strip of 

three into three finished passports. 

These machines are more than 10 

years old and a large number of 

their component parts are no 

longer available. The passport 

pages are printed on GPO’s sixcolor press. The press is not 

scheduled for replacement with 

this acquisition. 

Cumulative passport production 

has been greater than 60 million 

passports on the existing system. 

Production in FY 1998 was 

7,016,000 passports. Passport 

production requirements are 

expected to increase by approximately 5 percent annually for the 

next several years. The new equipment, which is being acquired from 

Uno Seisakusho Company, Ltd., 

under competitive bidding procedures, will ensure the necessary 

production capability. Total 

equipment and site preparation 

costs for the new system are 

estimated at $3.6 million. 

The State Department has been 

planning to introduce a new photo 

digital passport. The new passport 

book will no longer employ the 

lamination process, but will have 

the data page coated with a secure 

coating that will be applied by 

GPO’s new silk screen press. This 

new process will eliminate photo 

substitution and fraud. Employing 

the silk screen press adds one task 

to press operations and eliminates 

a task in binding operations. 

The new passport book will be 

produced in English, French, 

and Spanish. 

New GPO Deposit Accounts 

Eliminate Costly Agency 

Paperwork And Save 

Taxpayers Money 

In another step to make the 

Federal printing process work 

better and cost less, GPO began 

offering a new payment option for 

agency printing customers called 

GPO deposit accounts in 1998. 

This new option streamlines 

agency accounting procedures for 

printing jobs, eliminates invoices 

from GPO, and cuts the cost of 

Government printing. 

Under the old system, agencies 

were burdened with the paperwork associated with requisitioning printing jobs from GPO. 

When each job was ordered, 

agency officials would record the 

estimated cost as an obligation in 

their accounting records. When 

the job was completed, a bill 

would be sent by GPO and more 

records would have to be created 

to liquidate the original obligation. 

This labor-intensive process took 

time to produce the complicated 

paperwork in both the customer 

agency and GPO, generating 

increased costs. 

With the new deposit accounts, 

this time-consuming practice is 

eliminated. Agencies can simply 

electronically transfer sufficient 

funds to a deposit account to 

cover the anticipated cost of printing. When an agency submits an 

order for printing, the order will 

be charged to the account automatically. No longer do agency 

program managers have to go 

through their accounting offices 

before submitting their printing 

orders to GPO. The increased lead 

12 GPO Annual Report 1998 
“GPO has been a leader in 

providing Congress accrualbased accounting and 

financial statements.” 

– Booz-Allen & Hamilton, Inc.

time made possible by deposit 

accounts will allow more competitive 

bids to be obtained, lowering the 

cost of the work. 

With deposit accounts, agencies 

maintain control over their funds at 

all times. They can use their credit 

card or the Treasury Department’s 

Online Payment and Collection 

(OPAC) system to transfer additional funds as necessary. And with 

deposit accounts, GPO’s computerized accounting system will provide 

them with a detailed record of the 

payments for each printing job and 

a deposit account statement showing the opening balance, deposits, 

payments, and closing balance. 

Some agencies can save a significant 

amount of money using the new 

deposit accounts. With deposit 

accounts, credit card transactions 

appear only periodically as the 

accounts are replenished, and 

there are no GPO invoices. This 

can lower accounting and processing costs for agency printing dramatically. Deposit accounts are also 

an effective method to reduce outstanding bills with GPO. Agencies 

using GPO’s new deposit accounts 

will stop wasting valuable time and 

money, maintain control of their 

funds, eliminate expensive and 

complicated paperwork, and cut 

the cost of their printing. 

GPO Receives Clean Opinion In 

Audit Of FY 1997 Finances 

GPO received an “unqualified 

opinion” in a comprehensive, independent audit of its 1997 financial 

operations, completed in 1998 by 

the nationally recognized accounting 

firm KPMG Peat Marwick LLP. 

Under contract with the General 

Accounting Office, KPMG conducted a thorough audit of GPO’s financial statements for the fiscal year 

ending September 30, 1997, and 

concluded they “are presented 

fairly, in all material respects, 

in conformity with generally 

accepted accounting principles.” 

“This is the highest recognition we 

can give to any organization following a financial report,” stated John 

A. Farrell, KPMG Peat Marwick

partner and spokesman for the 

auditing team. 

In making a recommendation 

for GPO to establish certain data 

processing controls, the auditors 

concluded: “The GPO management 

has fairly stated, in all material 

respects, its assertions that 

internal controls . . . provide 

reasonable assurance that assets 

were safeguarded against loss 

from unauthorized acquisition, 

use, or disposition . . . ” 

The audit found “no instances of 

reportable noncompliance with laws 

and regulations we tested.” The 

findings of the 1997 financial audit 

continue GPO’s trend of “unqualified” audit opinions—the best that 

auditors can issue. 

The audit of GPO’s 1997 finances 

came on the heels of the management audit conducted by Booz-Allen 

& Hamilton, Inc., earlier in 1998. 

That audit stated that “the financial 

management history at GPO 

demonstrates that the agency has 

had considerable experience as a 

business-oriented operation.” 

Booz-Allen’s auditors said GPO’s 

budget and accounting offices 

have a “high level of subject matter 

expertise.” They also said “GPO 

GPO Annual Report 1998 13
During 1998, GPO’s Printing 

Procurement Program 

continued to give taxpayers 

the best possible value 

for their Government 

printing dollar. 

has been a leader in providing Another Federal agency 

Congress accrual-based accounting wanted to produce a printing 

and financial statements,” noting job in-house at a cost of 

that the Chief Financial Officers $4,719.75. Then they 

Act of 1990 requires all executive decided to turn to GPO, which 

branch agencies to implement contracted the same job for 

accrual-based accounting systems. $1,164.21, a savings of 

$3,555.54, or 75 percent. 

GPO’s Printing 

Procurement Program • A Federal agency wanted to 

Saves Taxpayers Big $$$ place a printing contract with 

a local firm, rather than using 

During 1998, GPO’s Printing the most competitively-priced 

Procurement Program continued printer recommended by GPO. 

to give taxpayers the best possible The lowest local contractor 

value for their Government price was $50,712.35. The 

printing dollar. GPO-recommended printer’s 

price was $20,994.24. The 

All over the country, GPO buys savings on this one contract: 

approximately 75 percent of all $29,718.11, or 59 percent. 

Federal printing orders from private 

sector printers in one of the • A Federal department 

Government’s most competitive, requisitioned a job for 20,000 

most successful purchasing pro- books, estimating the cost at 

grams ever, dealing with more than $220,000. Money-saving 

10,000 printing firms nationwide suggestions by GPO profesto get the best possible price for sionals got the final product 

the Government’s printing dollar. cost down to $103,000. GPO 

saved the taxpayers $117,000, 

Some of the procurement success or 53 percent. 

stories reported during the year 

included these: • A Federal agency ordered 

98,000 copies of a 172-page 

• An agency ordered 100,000 publication with saddlesets of a 12-page book. stitching. GPO experts 

Another Federal agency that recommended perfect-binding 

provides printing services, the as a cost-saving alternative. 

General Services Administration, The agency initially rejected 

provided a contract bid for this recommendation and the 

$37,000. GPO’s New York winning bid for the saddleoffice procured the job for stitched job was $134,153. 

$5,700, saving the taxpayers But GPO asked for bids on 

$31,300, or 85 percent. the perfect-bound job anyway 

and showed the results to the 

• A Federal agency obtained a agency — a low bid of 

quote of $2,644 for a short- $73,956. The agency agreed 

run job. GPO got the job for to change its requirements, 

them for $930.01, a savings of resulting in a savings of 

$1,713.99, or 65 percent. $60,197, or 45 percent. 

14 GPO Annual Report 1998 
In addition to printing and 

delivering the Starr Report 

and related materials in record 

time under extraordinary 

pressures, GPO made them 

available online and in 

CD-ROM format. 

• An agency headquarters 

ordered a job with a short 

delivery time. The initial bid 

for $42,235 was deemed excessive. GPO convinced the agency 

to extend its delivery requirement by 12 days. The resulting 

contract was $30,888, a savings 

of $11,347, or 27 percent. 

• An agency had been purchasing 

its duplicating needs directly 

from local printers. GPO 

offered to find them a better 

price. Bids from the two 

sources which had been doing 

the work were $12,262.88 and 

$13,859.85. GPO awarded 

the job to a top-performing 

firm for $9,859.31, for a 

minimum savings of 

$2,403.57, or 20 percent. 

• An agency seeking to downsize 

its internal printing capability 

turned to GPO to outsource 

the work. The 3-year GPO 

contract will save the agency 

approximately $2.1 million 

over its term. 

GPO’s printing procurement program billed 256,041 commercial 

orders in FY 1998, an average of 

about 1,000 per day, generating 

total revenues of approximately 

$467 million. Not only does GPO’s 

procurement program save taxpayers millions, the work it places in 

virtually every State in the Nation 

generates jobs as well as State and 

local tax revenues. And when 

Federal agencies work with GPO 

for their information product 

needs, GPO makes sure those same 

products are placed in GPO’s 

bookstores and in Federal depository libraries nationwide, at no 

additional cost to the agencies. 

For these reasons, GPO’s printing 

procurement program was characterized as “an example of the best 

services government has to offer” 

in the 1998 management audit 

conducted by Booz-Allen & 

Hamilton, Inc. 

GPO Provides Public Access 

To Starr Report In Print And 

Electronic Formats 

In September 1998, GPO met one 

of its greatest challenges with the 

publication of the reports released 

by Independent Counsel Kenneth 

Starr, following the enactment 

of House of Representatives 

Resolution 525, authorizing public 

disclosure of these materials. 

The released materials included the 

report of the Independent Counsel 

to the House of Representatives, 

accompanied by two sets of supplementary materials in five volumes. 

Altogether, the number of pages 

exceeded 8,000. In addition to 

printing and delivering the Starr 

Report and related materials in 

record time under extraordinary 

pressures, GPO made them 

available online and in CD-ROM 

format, earning the agency a commendation from the Chairman of 

the House Judiciary Committee as 

well as widespread public praise. 

THE STARR REPORT. In accordance 

with the House resolution, GPO 

printed the first document, Communication from Kenneth W. Starr, 

Independent Counsel, Transmitting 

a Referral to the United States 

House of Representatives Filed in 

Conformity with the Requirements 

of Title 28, United States Code, 

Section 595(c), as House 

Document 105-310. 

GPO Annual Report 1998 15
Public acclaim for GPO’s 

role in producing the 

Starr Report materials was 

widespread in the print and 

broadcast media. 

The Starr Report was received 

from the House in WordPerfect 6.0 

format at about 3 p.m. September 

11. It was converted through

GPO’s composition system, galley 

proofs were produced and checked 

against a copy of the original document, then approximately 13,000 

copies were printed on GPO’s 

group 86 web offset presses. The 

publication went to press at 5 a.m. 

September 12. Print production, 

including adhesive binding, was 

completed by 10 a.m. The final 

product, totaling 220 pages, 

measured 5 7/8 by 9 1/8 inches and 

weighed approximately half a 

pound. A total of 1,800 copies 

were delivered to Congress; 1,400 

copies were produced for GPO’s 

depository library program; and 

9,500 copies were produced for 

GPO’s sales program. Delivery 

began at 10 a.m., September 12. 

In addition, GPO was requested by 

the House to provide 500 looseleaf copies of the report for House 

Members. These copies were delivered as they were completed, with 

the final copies delivered by early 

evening, September 11. 

GPO put the Starr Report on sale 

in its central office bookstore at 

noon on September 12. At the time 

the doors opened, the line of people waiting to enter the store 

stretched to the end of the block. 

Copies were shipped overnight to 

GPO’s 23 other bookstores around 

the Nation for sale beginning the 

following Monday, September 14. 

Additional copies were delivered 

to GPO’s Laurel, MD, office for 

filling sales mail orders. Sales were 

brisk, with 400 copies selling on 

the first day, and approximately 

4,900 copies nationwide in the 

first week following release. 

The Starr Report was made 

available on GPO Access. At the 

request of the House, GPO established a special URL for the report 

on GPO Access. GPO went live 

with the report on September 11 

within a half hour of obtaining a 

CD-ROM disc containing certified 

HTML files from the House. 

Because of heavy Internet traffic, 

GPO set up a second URL solely 

for the report. On September 11 

and 12, there were more than 

569,000 visitors to GPO Access.

GPO also made the White House 

preliminary and initial responses to 

the Starr Report available on GPO

Access. These went live on 

September 11 and 12, respectively, 

at the same URL’s provided for the 

Starr Report. 

FIRST SET OF SUPPLEMENTARY 

MATERIALS. GPO produced the first 

set of supplementary materials to the 

Starr Report in two volumes over 

the weekend of September 19-20, 

1998. The materials were made 

available to the public in print, 

CD-R, and online formats shortly 

after 9 a.m. on Monday, September 

21, following the authorization for 

release by the House. 

The formal title of the first set of 

supplementary materials was 

Communication from the Office of 

the Independent Counsel, Kenneth 

W. Starr, Transmitting Appendices 

to the Referral to the United States 

House of Representatives Pursuant 

to Title 28, United States Code, 

Section 595(c), Submitted by the 

Office of the Independent Counsel, 

September 9, 1998 (House

Document 105-311, Parts 1 and 2). 

Over 3,000 pages of 8- by 11-inch 

camera copy were provided to GPO 

16 GPO Annual Report 1998 
At the request of the House, 

the tightest security was 

observed during the production process, with GPO 

police officers monitoring the 

building and all production 

areas around the clock. 

at approximately 7 p.m. Friday, 

September 18. The pages were 

reduced to 65 percent and 55 percent to accommodate production 

in the standard congressional document size of 5 7/8 by 9 1/8 inches. 

Folios were set to provide continuous pagination through both parts. 

Tab dividers were removed and 

replaced by pages indicating tab 

locations in the documents series, 

and tables of contents were added. 

Press production took place on 

GPO’s group 86 web offset presses, 

and the documents were perfectbound with traditional House document covers on GPO’s automated 

binding line and shrink-wrapped as 

a complete set. At the request of 

the House, the tightest security was 

observed during the production 

process, with GPO police officers 

monitoring the building and all 

production areas around the clock. 

The completed Parts 1 and 2 

totaled 3,232 pages, measured 5 

inches in thickness, and together 

weighed 7 pounds. Approximately 

5,400 copies were printed, 2,200 

of which were ordered for GPO’s 

sales program and for distribution 

to depository libraries nationwide. 

The balance of the copies were 

distributed as ordered to the 

House of Representatives, and 

made available for other distribution as required by law. 

GPO made the sets of Parts 1 and 

2 available for sale to the public at 

its central office bookstore following release by the House. More 

than 300 sets sold in the first hour. 

Total sales for the first day were 

approximately 700 copies. 

In a September 22, 1998, letter to 

Public Printer Michael F. DiMario, 

House Judiciary Committee 

Chairman Henry J. Hyde commended the “outstanding job the 

employees of the U.S. Government 

Printing Office did in providing, 

with such impressive turnaround, 

House Document 105-311.” 

Chairman Hyde said, “for two 

documents, totaling more than 

3,200 pages, to be produced in 

such an expeditious manner is a 

true tribute to the U.S. Government 

Printing Office, its employees, and 

its history in the Federal 

Government.”

Also produced by GPO over the 

September 19-20 weekend were 

scanned image files of the supplementary materials for online dissemination via GPO Access.

Unlike the original Starr Report, 

which was carried on the Internet 

by a wide variety of public and 

private sector sites, GPO Access 

was the only site that posted these 

supplementary report materials. 

The materials were available 

through three different URL’s on 

GPO Access to accommodate 

public demand. In addition, GPO 

produced a CD-R disc containing 

all of the supplementary materials 

in H. Doc. 106-311 in Portable 

Document Format (PDF). 

SECOND SET OF SUPPLEMENTARY 

MATERIALS. Constituting the largest 

volume of supplementary materials 

yet released to the public—nearly 

5,000 pages—the second set of 

supplementary materials to the 

Starr Report was delivered to GPO 

by the House on Tuesday, 

September 29 and made available 

by Congress on Friday, October 2. 

The formal title of these materials 

was Communication from the 

GPO Annual Report 1998 17
House Judiciary Committee 

Chairman Henry J. Hyde 

commended the “outstanding 

job the employees of the U.S. 

Government Printing Office 

did in providing, with such 

impressive turnaround, 

House Document 105-311.” 

Office of the Independent Counsel, 

Kenneth W. Starr, Transmitting 

Supplemental Materials to the 

Referral to the United States 

House of Representatives Pursuant 

to Title 28, United States Code, 

Section 595(c), Submitted by the 

Office of the Independent Counsel, 

September 9, 1998 (House

Document 105-316, Parts 1-3). 

Nearly 5,000 pages of 8- by 11-

inch camera copy were provided 

to GPO on Tuesday morning, 

September 29. GPO utilized the 

same production methods for these 

documents as were used in the 

production of the first set of 

supplementary materials produced 

over the weekend of September 19-

20. Folios were set to provide continuous pagination through all 

three parts. The pages were 

reduced to 65 percent and 55 

percent to accommodate production in the standard congressional 

document size of 5 7/8 by 9 1/8 

inches. Press production took place 

on GPO’s group 86 web 

offset presses, and the documents 

were perfect-bound with traditional House document covers on 

GPO’s automated binding line and 

shrink-wrapped as a complete set. 

Again, the tightest security was 

observed during the production 

process, with GPO police officers 

monitoring the building and all 

production areas around the clock. 

The completed Parts 1, 2, and 3 

totaled 4,871 pages, measured 

7 1/4 inches in thickness, and 

together weighed 10 1/2 pounds. 

Approximately 5,200 sets of the 

three-part document were printed, 

2,000 of which were ordered 

for GPO’s sales program. 

Approximately 1,800 copies were 

delivered to Congress, while the 

balance of the copies were made 

available for other distribution as 

required by law, including distribution to Federal depository libraries 

nationwide.

Also produced during the same 

period was House Document 105-

317, Communication from the 

Committee on the Judiciary 

Transmitting the Preliminary 

Memorandum of the President of 

the United States Concerning 

Referral of the Office of the 

Independent Counsel and Initial 

Response of the President of the 

United States to Referral of the 

Office of the Independent Counsel. 

Approximately 3,700 copies of this 

64-page document were typeset 

and printed. About 1,800 copies 

were delivered to Congress, 500 

to GPO’s sales program, and the 

balance to other distribution as 

required by law. 

GPO made House Documents 105-

316 and 105-317 available for sale 

to the public at its central office 

bookstore at 12:30 p.m., Friday, 

October 2, with more than 100 

sets of the three-part document 

selling in the first two weeks. 

During the same period, total sales 

of the President’s memorandum 

were about 300 copies. 

Also produced were scanned image 

files of the supplementary materials 

for online dissemination via GPO

Access on three different URL’s, 

again to accommodate public 

demand since GPO was the only 

organization to post these materials 

online. GPO also made the 

President’s memorandum available 

online. In addition, GPO produced 

a CD-R disc containing all of the 

18 GPO Annual Report 1998 
GPO is following a program 

to ensure that mission-critical 

systems supporting its key 

mission requirements will 

be Y2K compliant. 

materials in H. Doc. 105-316 in 

Adobe Acrobat Portable Document 

Format (PDF). 

Public acclaim for GPO’s role in 

producing the Starr Report materials was widespread in the print and 

broadcast media. Every major 

broadcast organization covered the 

releases of the report and supplementary materials, and major 

articles appeared in the Wall Street 

Journal, the Baltimore Sun, the

Hartford Courant, and throughout 

the printing industry press. 

GPO Attacks The Y2K 

Computer Glitch 

GPO is a service organization 

whose main product is information. As an information provider, 

GPO relies on the use of 

information technology to 

accomplish its mission. The Year 

2000 (Y2K) problem is real and the 

impact on GPO and its customers 

could be catastrophic without a 

major program initiative to combat 

its potential effects. GPO is following a program to ensure that mission-critical systems supporting its 

key mission requirements 

will be Y2K compliant. 

In March 1998, the Public Printer 

issued a GPO Year 2000 Program 

Guide, formally establishing a Year 

2000 Program Management Office 

to oversee GPO’s Y2K initiatives 

and provide timely progress reports 

on the subject to internal and 

external parties, including the 

General Accounting Office (GAO). 

The Program Management Office 

coordinates cross-departmental 

activity and formulates recommended policy. The Program Guide 

encompasses five critical phases to 

ensure Y2K compliance: awareness, 

assessment, renovation, validation, 

and implementation. 

A complete review of GPO’s 

mission-critical systems was conducted during FY 1998. All of 

GPO’s mission-critical systems 

were identified and evaluation 

plans were developed. 

GPO provided its Y2K Compliance 

Program Action Plan to the Joint 

Committee on Printing in July 

1998. As part of the reporting 

requirements to the GAO, GPO 

estimated that $25 million would 

be required to make its information technology environment fully 

Y2K compliant. Most of these 

resources relate to in-house labor 

costs and previously-budgeted 

replacements. GPO has been 

in constant communication with 

GAO, furnishing the appropriate 

status information that is provided 

to Congress. All GPO missioncritical systems will be Y2K 

compliant by the end of 1999. 

Expanding Electronic 

Dissemination To Depository 

Libraries

The programs administered by 

the Superintendent of Documents, 

particularly the Federal Depository 

Library Program (FDLP), demonstrate the U.S. Government’s 

commitment to keeping the public 

informed of the operations of the 

Government and of the information 

collected, created, or compiled by 

the Government. Federal depository 

libraries select and receive 

Government information products 

in various media and make the 

information available to the public 

at no charge. 

GPO Annual Report 1998 19
GPO strongly supports the 

increased dissemination 

of Government information 

in electronic formats in 

conjunction with Federal 

agency transitions to 

CD-ROM or online 

database technology. 

On September 30, 1998, there were 

1,360 libraries in the FDLP. Of that 

number, 50 percent were four-year 

academic institutions, 20 

percent were public libraries, and 

11 percent were accredited law 

school libraries. The remaining 

depositories were in 2-year 

community colleges, Federal agencies, State libraries, State courts, 

special libraries, Federal courts, 

and military service academies. 

These libraries serve all segments 

of the Nation’s population: students, researchers, consumers, and 

those in the business sector with 

everything from agriculture pamphlets and scientific reports to 

demographic statistics or health 

information.

GPO strongly supports the 

increased dissemination of 

Government information in 

electronic formats in conjunction 

with Federal agency transitions 

to CD-ROM or online database 

technology. GPO Access is one of 

the leading Federal sites on the 

Internet today. In addition, GPO 

has created a variety of electronic 

locator services that let users 

identify and connect to agency 

electronic resources. About 34 percent of all titles disseminated to 

depository libraries in FY 1998 

were in electronic format. 

The dissemination of Government 

information to libraries for the 

public’s use began in 1813, 

making the FDLP America’s 

oldest “freedom of information” 

program. From its beginning, 

the FDLP has been built on several 

underlying principles: 

• A well-informed citizenry, 

cognizant of the policies and 

activities of its representative 

Government, is essential to 

the proper functioning 

of democracy; 

• The public has a right to 

Government information 

which has been prepared and 

published at public expense; 

• The Government has an 

obligation to ensure the 

availability of, and access to, 

public information at no cost 

to the user; 

• The publications provided 

through the FDLP are a 

permanent and official 

source of Government 

information; and 

• The public, participating 

libraries, and the Government 

all benefit from the efficiencies 

afforded by a centralized 

distribution system, such as 

the FDLP, which ensures the 

wide availability of 

Government information 

products at no charge to users. 

To manage the burgeoning number 

of Federal electronic products, in 

1998 GPO issued a plan called 

Managing the FDLP Electronic 

Collection: A Policy and Planning 

Document. This plan establishes a 

framework for GPO to manage 

electronic Government information 

products throughout their life cycle 

from creation and bibliographic 

identification, to both current and 

permanent public access. 

Under this plan, the FDLP print 

and electronic products collections 

will be comprised of those 

Government information products 

that are currently included in the 

20 GPO Annual Report 1998 
To manage the burgeoning 

number of Federal electronic 

products, in 1998 GPO 

issued a plan called 

Managing the FDLP 

Electronic Collection: 

A Policy and 

Planning Document. 

FDLP as defined in Title 44, 

U.S.C., section 1902. 

The FDLP Electronic Collection will 

consist of: (1) core legislative and 

regulatory GPO Access products

that will reside permanently on 

GPO servers; (2) other remotely 

accessible products either maintained by GPO or other institutions 

with which GPO has established 

formal agreements; (3) the tangible 

electronic Government information 

products distributed to Federal 

depository libraries; and (4) remotely accessible electronic Government 

information products which GPO 

identifies, describes, and links to, 

but which remain under the control 

of the originating agencies. 

In planning for an electronic future, 

GPO is being guided by the 

assumption that partners, such as 

libraries, Government agencies, 

non-profits, and consortia, will 

share the tasks of building, storing, 

disseminating, and preserving the 

collection of FDLP electronic 

resources. Several partnerships have 

been forged in recent years that will 

help ensure permanent online accessibility for electronic Government 

information products. Portions of 

the collection, other than the core 

legislative and regulatory GPO

Access products, may be maintained at partner institutions, 

including other Federal agencies, 

depository libraries, consortia, 

or other institutions, such as 

the Online Computer Library 

Center (OCLC). 

Significant progress has been made 

with other Government information disseminators to expand the 

range of content available at no 

cost to depository libraries and the 

public. In 1998, GPO entered into 

partnership agreements with the 

U.S. Department of Energy (DOE)

and the National Technical 

Information Service (NTIS) that 

will allow libraries to search and 

obtain vast amounts of U.S. 

Government scientific and technical information in electronic image 

format via the Internet. The DOE 

project alone will provide electronic versions of some 15,000 reports 

each year which were previously 

available to depository libraries 

only in microfiche. The NTIS project is a pilot that has enormous 

potential to expand the public 

availability of Government information, scientific and technical, 

using electronic technologies. 

GPO, in conjunction with the 

U.S. State Department and the

University of Illinois at Chicago 

(UIC), will also build on UIC’s 

current agreement with the 

State Department to manage 

the Department of State Foreign 

Affairs Network (DOSFAN). 

DOSFAN is a collection of World 

Wide Web pages featuring current 

State Department news and information. As an FDLP partner, UIC 

will hold for permanent access 

electronic information products 

that migrate off DOSFAN. The 

ultimate responsibility for provision of permanent access to 

and bibliographic control of the 

electronic products will reside 

within GPO, however, as the 

administrator of the FDLP. 

GPO and the University of North 

Texas (UNT) libraries formed a 

partnership to provide permanent 

online access to electronic publications of the Advisory Commission 

on Intergovernmental Relations 

GPO Annual Report 1998 21
GPO will continue its quest 

to expand the availability of 

free Government information 

to the American citizenry 

and fulfill the words of 

Thomas Jefferson, who said, 

“it is the responsibility 

of every American 

to be informed.” 

(ACIR), an independent agency 

that studied the relationship 

among local, State, and national 

levels of government. The 

Commission was terminated in 

1996. The GPO/UNT partnership 

will assure ongoing access to ACIR 

reports and documents. GPO acted 

as agent for this agreement, matching the need for permanent access 

to the agency information with the 

willingness of UNT to enter into a 

partnership agreement. 

In an action to further expand 

online access to Government 

information, GPO set a pilot 

project with OCLC and the 

National Library of Education 

to make Educational Resources 

Information Center (ERIC) 

research documents available to 

depository libraries. The project 

makes the full text of these 

documents available only from 

workstations at depository 

libraries that currently subscribe 

to ERIC Research Reports 

on microfilm. 

These types of partnership arrangements, along with other new 

initiatives, will be a significant 

part of the new GPO in the next 

millennium. GPO will continue its 

quest to expand the availability of 

free Government information to the 

American citizenry and fulfill the 

words of Thomas Jefferson, who 

said, “it is the responsibility of 

every American to be informed.” 

Congressional Hearings On 

GPO In 1998 

The House Subcommittee on 

Legislative Appropriations and 

the Senate Subcommittee on 

Legislative Branch Appropriations 

held their annual hearings on 

GPO’s funding request for FY 

1999, in February and March 

1998, respectively. GPO requested 

approximately $110 million for its 

two appropriation accounts. One 

finances the printing and binding 

requirements of the Congress, 

while the other covers the costs of 

various programs administered by 

the Superintendent of Documents. 

The Congressional Printing and 

Binding Appropriation is critical 

to the maintenance and operation 

of GPO’s in-plant capacity, which 

is structured to serve Congress’ 

information product needs. The 

appropriation covers the costs of 

congressional printing such as the 

Congressional Record, bills,

reports, hearings, documents, 

and other products. Each year, a 

substantial volume of this work is 

requisitioned. In FY 1998, more 

than 1.3 billion copy pages of congressional products were produced 

at an average cost of about 5 cents 

per page, inclusive of all prepress 

work, printing, binding, and 

delivery. This appropriation also 

covers database preparation work 

on congressional publications disseminated online via GPO Access.

The majority of the Superintendent 

of Documents Salaries and 

Expenses Appropriation is for the 

Federal Depository Library 

Program (FDLP). While some of 

the funding for this program is for 

salaries and benefits, most is for 

printing and distributing publications (including publications in 

CD-ROM and online formats) 

to depository libraries. This appropriation also provides the majority 

of funding for the operation of 

GPO Access.

22 GPO Annual Report 1998 
In FY 1998, more than 

1.3 billion copy pages of

congressional products 

were produced at an 

average cost of about 

5 cents per page, inclusive 

of all prepress work, 

printing, binding, 

and delivery. 

The Public Printer advised the 

appropriations subcommittees of 

GPO’s continuing transition to a 

predominately electronic FDLP, as 

set forth in the 1996 Study to 

Identify Measures Necessary for a 

Successful Transition to a More 

Electronic Federal Depository 

Library Program.

In late February 1998, the Public 

Printer appeared before an oversight hearing of the GPO by the 

Senate Committee on Rules and 

Administration. The Public Printer 

provided Committee members 

information on a wide range of 

subjects, showing how GPO’s 

programs reduce the need for 

duplicative production facilities 

throughout the Government, 

achieve significant taxpayer savings 

through a centrally-managed production and procurement system, 

and provide essential public access 

to Government information, which 

is increasingly needed by all 

Americans in the Information Age. 

The Public Printer appeared 

before the Senate Rules and 

Administration Committee again 

in July to discuss his views on S. 

2288, the Wendell H. Ford 

Government Publications Reform 

Act of 1998. However, the bill was 

not taken up by the Senate prior 

to adjournment. 

GPO Annual Report 1998 23
26 GPO Annual Report 1998 

-1-

2001 M. Street, N.W. 

Washington, DC 20036 

INDEPENDENT AUDITORS' REPORT 

The Public Printer: 

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

Printing Office (the GPO) as of September 30, 1998 and 1997, and the related consolidated 

statements of revenues and expenses and cash flows for the years then ended. We have also 

examined management's assertions, included in the accompanying statement of assurance to us 

dated February 8, 1999, regarding the effectiveness of the GPO's internal controls over financial 

reporting that were in place as of September 30, 1998. The objective of our audit was to express 

an opinion on the fair presentation of the GPO's consolidated financial statements. The objective 

of our examination of management's assertions regarding internal controls over financial 

reporting was to express an opinion on management's assertions. In connection with our audit, 

we also tested the GPO's compliance with certain provisions of applicable laws and regulations. 

In our opinion: 

• The GPO's consolidated financial statements as of September 30, 1998 and 1997, and for the 

years then ended, are presented fairly, in all material respects, in conformity with generally 

accepted accounting principles; and 

• The GPO management has fairly stated, in all material respects, its assertions that internal 

controls in place as of September 30, 1998, provide reasonable assurance that transactions are 

properly recorded, processed, and summarized to permit the preparation of the financial 

statements in accordance with generally accepted accounting principles, and the safeguarding 

of assets against loss from unauthorized acquisition, use, or disposition; and transactions are 

executed in accordance with: (a) laws governing the use of budget authority and other laws 

and regulations that could have a direct and material effect on the financial statements, and 

(b) any other laws and regulations or goverrunent-wide policies that entity management, or 

the Inspector General have identified as being significant for which compliance can be 

objectively measured and evaluated. 

We noted no instances of reportable noncompliance with laws and regulations we tested. 

Our conclusions and the scope of our work are discussed in more detail below. 

OPINION ON FINANCIAL STATEMENTS 

We have audited the accompanying consolidated balance sheets of the GPO as of September 30, 

1998 and 1997, and the related consolidated statements of revenues and expenses and cash flows 

for the years then ended. These consolidated statements are the responsibility of the GPO's 
GPO Annual Report 1998 27 

-2-

management. Our responsibility is to express an opinion on these consolidated statements based 

on our audits. 

In our opinion, the accompanying 1998 and 1997 consolidated financial statements present fairly. 

in all material respects. the financial position of the United States Government Printing Office as 

of September 30, 1998 and 1997, and the results of its operations and its cash flows for the years 

then ended in conformity with generally accepted accounting principles. 

Our audits were performed for the purpose of forming an opinion on the GPO's consolidated 

financial statements taken as a whole. The consolidating and supplemental information on pages 

36 through 45 are presented for purposes of additional analysis and are not a required part of the 

basic financial statements. This information has not been subjected to the auditing procedures 

applied in our audits of the consolidated financial statements and, accordingly, we express no 

opinion on it. 

The information contained in the performance measures section has not been audited and, 

accordingly, we express no opinion on it. 

OPINION ON MANAGEMENT'S ASSERTIONS ABOUT THE EFFECTIVENESS OF 

INTERNAL CONTROLS OVER FINANCIAL REPORTING 

We have examined management's assertions included in its statement of assurance to us dated 

February 8, 1999, that internal controls designed by management provide reasonable, but not 

absolute, assurance that as of September 30, 1998, the following objectives were met: 

• Transactions are properly recorded, processed, and summarized to permit the preparation of 

the financial statements in accordance with generally accepted accounting principles, and the 

safeguarding of assets against loss from unauthorized acquisition, use, or disposition; and 

• Transactions are executed in accordance with: (a) laws governing the use of budget authority 

and other laws and regulations that could have a direct and material effect on the financial 

statements, and (b) any other laws and regulations or government-wide policies that entity 

management, or the Inspector General have identified as being significant for which 

compliance can be objectively measured and evaluated. 

Although internal controls should be improved as discussed below, in our opm10n, 

management's assertions that internal controls in place as of September 30, 1998, provide 

reasonable assurance that transactions are properly recorded, processed, and summarized to 

permit the preparation of the financial statements in accordance with generally accepted 

accounting principles, and the safeguarding of assets against loss from unauthorized acquisition, 

use, or disposition; and transactions are executed in accordance with: (a) laws governing the use 

of budget authority and other laws and regulations that could have a direct and material effect on 

the financial statements, and (b) any other laws and regulations or government-wide policies that 

entity management, or the Inspector General have identified as being significant for which 

compliance can be objectively measured and evaluated, are fairly stated in all material respects, 
28 GPO Annual Report 1998 

-3-

... 

based upon criteria established under OMB Circular A-123, Management Accountability and 

Conrrol (Revised, June 1995). 

Reportable conditions involve matters coming to our attention relating to significant deficiencies 

in the design or operation of the internal controls that, in our judgment, could adversely affect the 

GPO's ability to record, process, summarize, and report financial data consistent with the 

assertions of management in the financial statements. A material weakness is a reportable 

condition that precludes the entity's internal controls from providing reasonable assurance that 

material misstatements in the financial statements will be prevented or detected on a timely basis. 

We noted certain matters involving the internal controls over financial reporting that we consider 

to be reportable conditions under standards established by the American Institute of Certified 

Public Accountants. 

Our consideration of internal controls would not necessarily disclose all internal control matters 

that might be reportable conditions and, accordingly, would not necessarily disclose all 

reportable conditions that are also considered to be material weaknesses as defined above. 

Deficiencies in the design and or operations of the GPO's EDP general controls are considered a 

reportable condition. This condition has been previously reported to management in prior years' 

audit reports. 

GPO has embarked on an aggressive systems modernization program partially in response to the 

Year 2000 issue. Certain of the matters noted below are being addressed as part of the overall 

systems modernization which is not yet complete. 

The recurring reportable condition on the GPO's EDP general controls relates to the following 

areas: 

• Access Control 

Certain access controls require modification in order to provide a more secure 

environment. Access controls should provide reasonable assurance that computer 

resources (data files, application programs, and computer-related facilities and 

equipment) are protected against unauthorized modification, disclosure, loss, or 

impairment. These controls include controls over physical access to computer resources, 

and controls that prevent unauthorized access to sensitive files. 

Examples of weaknesses include: 

Adequate segregation of duties is lacking in the administration of mainframe, 

database, and network security and the control of application changes. 

Certain vulnerabilities exist with respect to unauthorized access to systems. 

• Application Change Control and Systems Development 

Certain controls over the modification of application software programs are deficient. 

These controls should be designed to ensure that only authorized programs and 

modifications are implemented. Without proper controls, there is a risk that security 

features could be inadvertently or deliberately omitted or "turned orr· or that processing 

irregularities or malicious code could be introduced. 
GPO Annual Report 1998 29 

-4-

Examples of weaknesses include: 

Lack of adequate change request and approval documentation. 

Lack of centralized coordination of program changes. 

No formal approval of, or requirement to utilize or follow, a standard System 

Development Life Cycle methodology. 

• Service Continuity 

Losing the capability to process, retrieve, and protect information maintained 

electronically can significantly impact an agency's ability to accomplish its mission. For 

this reason, an agency should have ( 1) procedures in place to protect information 

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

critical operations should interruptions occur. Inadequate contingency and back-up 

planning exists for the financial management and text processing EDP systems. There is 

no formal written contingency plan for systems and business operations, and production 

application backups are not rotated off-site. There is no remote off-site location for 

backup storage. 

• Entity-Wide Security Program 

There are several areas regarding an enterprise-wide security program that are inadequate. 

The program should establish a framework for assessing risk, developing and 

implementing effective security procedures, and monitoring the effectiveness of these 

procedures. Without a well designed program, security controls may be inadequate; 

responsibilities may be unclear, misunderstood, and improperly implemented; and 

controls may be inconsistently applied. 

Examples of weaknesses include: 

There is no up-to-date comprehensive data security plan, policies and procedures, or 

an information technology strategic plan. 

Comprehensive risk assessments are not performed on a periodic basis. 

Employee background investigations are missing or out-of-date. 

There is no information technology steering committee. 

We recommend that the GPO develop a formal action plan to review and revise its EDP general 

controls. This plan should address each of the four areas discussed above as well as other areas 

that impact the general EDP control environment, set forth appropriate corrective action steps, 

assign responsibilities to employees, and establish target completion dates for each action. This 

plan should be adopted by top management of the GPO and provide for periodic reviews of 

progress towards achievement of corrective actions. 

This condition was considered in determining the nature, timing, and extent of the procedures to 

be performed in our audits of the GPO's consolidated financial statements. 

We also noted other matters involving the internal controls and their operation that we do not 

consider to be reportable conditions. These matters include comments relating to the significant 

risks and potential impact of possible Year 2000-induced information system failures of core 

business processes at the GPO, and our assessment of the management's remediation plans to 

address the adverse effects of the Year 2000 issue. These matters, along with further technical 
30 GPO Annual Report 1998 

-5-

M!J 

details and related recommendations of the reportable condition, will be reported to the GPO's 

management in a separate letter. 

COMPLIANCE WITH LAWS AND REGULATIONS 

As part of obtaining reasonable assurance about whether the GPO's consolidated financial 

statements are free of material misstatement, we performed tests of its compliance with certain 

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

effect on the determination of financial statement amounts. However, providing an opinion on 

compliance with those provisions was not an objective of our audits and, accordingly, we do not 

express such an opinion. The results of our tests disclosed no instances of noncompliance that are 

required to be reported under generally accepted auditing standards. 

CONSISTENCY OF OTHER INFORMATION 

The Performance Measures, the consolidating financial statements, and other supplemental 

information contain a wide range of data, some of which are not directly related to the 

consolidated financial statements. We do not express an overall opinion on this information. 

However, we compared this information for consistency with the consolidated financial 

statements. Based on this limited work, we found no material inconsistencies with the 

consolidated financial statements. 

RESPONSIBILITIES 

Management's Responsibility. Management is responsible for: 

• preparing the consolidated financial statements and supplemental schedules referred to above 

in conformity with generally accepted accounting principles, and for preparing the 

performance measures; 

• maintaining adequate internal controls designed to fulfill control objectives; and 

• complying with applicable laws and regulations. 

Auditors' Responsibility. Our responsibility is to express an opinion on the consolidated 

financial statements, based on our audits. Standards, identified below, require that we plan and 

perform the audits to obtain reasonable assurance about whether the consolidated financial 

statements are reliable (free of material misstatement and presented fairly, in all material 

respects, in conformity with generally accepted accounting principles). 

We are also responsible for expressing an opinion, based on our examination, on whether 

management's assertions regarding the effectiveness of internal controls are fairly stated, in all 
GPO Annual Report 1998 31 

-6-

material respects, based on criteria established under OMB Circular A-123, Management 

Accountability and Control (Revised, June 1995). 

As part of obtaining reasonable assurance about whether the consolidated financial statements 

are free of material misstatement, we are also responsible for reporting any instances of material 

noncompliance with certain provisions of laws and regulations. 

To fulfill these responsibilities, we: 

• examined, on a test basis, evidence supporting the amounts and disclosures m the 

consolidated financial statements; 

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

• evaluated the overall financial statement presentation; 

• assessed control risk in order to determine our auditing procedures for the purpose of 

expressing our opinion on the consolidated financial statements; 

• obtained an understanding of the internal controls over financial reporting; 

• tested and evaluated the design and operating effectiveness of relevant internal controls over 

significant cycles, classes of transactions, and account balances; 

• tested compliance with certain provisions of laws and regulations that may materially affect 

the financial statements; and 

• performed such other procedures as we considered necessary in the circumstances. 

We did not evaluate all internal controls relevant to operating objectives as broadly defined by 

OMB Circular A-123, such as those controls relevant to preparing statistical reports and ensuring 

efficient operations. We limited our internal control testing to those controls necessary to achieve 

the objectives outlined in our opinion on management's assertion about the effectiveness of 

internal controls. Because of inherent limitations in internal controls, fraud may occur and not be 

detected. Also projections of any evaluation of internal controls over financial reporting to future 

periods are subject to the risk that the internal control procedures may become inadequate 

because of changes in conditions, or that the degree of compliance with the policies and 

procedures may deteriorate. 

We conducted our audits in accordance with generally accepted auditing standards, and 

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

standards require that we plan and perform an audit to obtain reasonable assurance about whether 

the financial statements are free of material misstatement. An audit includes examining, on a test 

basis, evidence supporting the amounts and disclosures in the financial statements. An audit also 

includes assessing the accounting principles used and significant estimates made by 

management, as well as evaluating the overall financial statement presentation. We conducted 
32 GPO Annual Report 1998 

-7-

our examination of management's assertions regarding the effectiveness of the GPO's internal 

controls over financial reporting in place as of September 30, 1998. in accordance with standards 

established by the American Institute of Certified Public Accountants. We believe that our audit 

and examination provide a reasonable basis for our opinions. 

Distribution. This report is intended solely for the information and use of the Public Printer. the 

Joint Committee on Printing, and the GPO management, and is not intended to be and should not 

be used by anyone other than the specified parties. 

February 8, 1999 

Washington, D.C. 
GPO Annual Report 1998 33 

-8-

U.S. Government Printing Office 

Performance Measures 

September 30, 1998 

Operating Performance Measures 

Congressional Record Delivery 

The Congressional Record (Record) is an important tool and product of the legislative process, 

and its production is a large part of GPO's mission. To gauge how well GPO is serving 

Congress by producing the Record timely, GPO has established a deadline of 9 AM the 

following day, when copy is received in GPO by midnight, regardless of whether the Senate or 

the House of Representatives is in session. Our actual on-time delivery rate was 83.8 percent 

in fiscal year 1998, compared with 73.9 percent in fiscal year 1997. 

Overtime Management 

GPO makes an ongoing effort to minimize overtime hours. In fiscal year 1998, overtime hours 

increased to 206,000 hours from 185,000 hours in fiscal year 1997, or 11 percent. The cost of 

overtime in fiscal year 1998 increased by $813,000 from fiscal year 1997's level. However, 

we were successful in achieving our goal in fiscal year 1998, as actual overtime hours worked 

were well below the upper limit of 333,000 overtime hours. Our goal for fiscal year 1999 is a 

maximum of 250,000 overtime hours. 

Production Chargeable Hours 

Chargeable hours decreased to 861,000 in fiscal year 1998 from 882,000 in fiscal year 1997, a 

decrease of 21,000 hours, or 2.4 percent, even though the number of employees available for 

work decreased 4.6 percent. The results for 1998 met our goal of equaling or exceeding the 

chargeable hours necessary to achieve break-even operations. Our fiscal year 1999 chargeable 

hour goal is to achieve the number of chargeable hours necessary to achieve break-even in 

Production Operations. 

On-Time Delivery of Procured Printing 

The Printing Procurement Operations contracted with commercial printing firms to ship 

176,500 jobs in fiscal year 1998 compared with 192,000 jobs in fiscal year 1997. For fiscal 

year 1998, GPO's goal was to have at least 95 percent of procured printing orders delivered on 

time and a quality acceptance rate of at least 99 percent. GPO met its goals by attaining a 95.1 

percent on-time delivery rate and a 99 percent quality acceptance rate . The goals for fiscal 

year 1999 remain the same as those for fiscal year 1998. 
34 GPO Annual Report 1998 

-9-

Financial Performance Measures 

Cash Management 

• Payment Performance - In fiscal year 1998, GPO continued its strong paymem 

performance by paying contractors within the discount period when it was to the government's 

advantage. GPO's total purchased printing expense for fiscal year 1998 was $430.4 million 

after deducting prompt payment discounts of $6.8 million. The resultant 1.6 percent of 

discounts taken to net purchased printing exceeded our fiscal year 1998 goal of 1.4 percent. 

Our goal for fiscal year 1999 remains at 1.4 percent. 

Discounts lost increased to $186,000 in fiscal year 1998 from $127,000 in fiscal year 1997. 

The percentages of discounts lost to discounts offered were 2. 7 percent and 1. 9 percent in 

fiscal years 1998 and 1997, respectively. We did not achieve our goal set for fiscal year 1998, 

which was a maximum of 2.5 percent. Our goal for fiscal year 1999 remains at 2.5 percent. 

• Electronic Payments - The use of electronic funds transfer (EFT) payments results in 

savings for GPO and the Departmem of the Treasury because paper checks do not have to be 

produced and processed. In 1998, approximately 23,600 monthly payments, or 88 percent, of 

all GPO payments were made by EFT, compared with 20,900 monthly payments, or 86 

percent of all payments in fiscal year 1997. Therefore, our goal for fiscal year 1998, which 

was to increase the percentage of EFT payments of total payments, was met. Our goal for 

fiscal year 1999 is to continue increasing EFT payments. 

Debt Management 

• Federal Receivables- In fiscal year 1998, GPO billed Federal agencies $654.7 million for 

printing and binding services. Of this amount, $366.1 million, or 55.9 percent, was collected 

using the Department of the Treasury's On-Line Payment and Collection (OPAC) system. 

In fiscal year 1998, GPO's average monthly receivables more than 90 days overdue were 

$13.8 million, or 31.9 percent of the monthly average of outstanding receivables. The 

Department of Defense's (DoD) account at GPO, with an average monthly balance more than 

90 days overdue of $13.0 million, or 90.0 percent of all of GPO's delinquem receivables, was 

by far GPO's largest delinquent account. At the end of fiscal year 1998, DoD owed GPO $6.9 

million that was between 31 and 60 days overdue, $4.5 million that was between 61 and 90 

days overdue, and $14.1 million that was more than 90 days overdue. 

The DoD's slow payment process results from procedures requiring that all GPO invoices pass 

through duplicate review processes at DoD before payment is initiated; and also from DoD not 

using Treasury Department's OPAC system. Defense Automated Printing Service (DAPS) 

bills its customers who review GPO's invoices prior to paying DAPS. After DAPS has been 

paid, GPO's invoices are sent to Defense Finance and Accounting Service where they are 

reviewed a second time before GPO is paid. This additional layer of DoD administration has 

had a sustained negative impact on GPO's ability to collect from DoD since the inception of 

DPS/DAPS in October 1992. 
GPO Annual Report 1998 35 

-10-

GPO is working with DoD to establish credit cards or deposit accounts as a means of receiving 

payment from DoD. During fiscal year 1998. GPO and DoD agreed to a pilot program at two 

DoD sites to use credit cards as the method of payment. During the year. $11.6 million was 

paid to GPO under this arrangement. 

Also, during fiscal year 1998, use of GPO's printing and binding deposit accounts increased. 

At year-end, there were 34 accounts with $17.6 million on deposit. Deposit accounts are used 

to pre-pay printing bills and eliminate invoices from GPO. 

Management Comments on GPO Financial Statements 

GPO's consolidated financial statements are prepared in accordance with generally accepted 

accounting principles (GAAP). GAAP requires that financial statements be prepared on the 

accrual basis of accounting. Accrual accounting dictates that expenses are recorded when 

incurred, and revenues are recorded when earned, regardless of when cash is disbursed or 

received. GAAP also requires accounting principles used be applied in a manner consistent 

with that of the previous year. The accompanying financial statements provide information on 

all events and economic affairs controlled by the GPO in conformity with established 

regulations, procedures, and promulgated accounting principles. 

GPO's accounting system includes internal controls designed to provide reasonable assurance 

that assets are safeguarded against loss from unauthorized use or disposition and that 

transactions are properly recorded. To ensure that adequate internal controls are maintained, 

management monitors the systems that provide management data, and initiates modifications or 

improvements deemed necessary to promote operational efficiencies and encourage adherence 

to prescribed managerial policies. 

• Operating Issues 

GPO's continuing mission is to assist Congress and Federal agencies in the cost-effective 

creation and replication of information products and services, and to provide effective and 

economical public access to government information. GPO strives to operate and manage its 

resources efficiently, and to achieve steady gains in productivity. 

Neither Congress nor GPO has the ability to accurately forecast the volume of printing that 

may be needed for the legislative process. In those years where congressional workload 

exceeded funding available, GPO used its authority to temporarily fund shortfalls through the 

Revolving Fund. In recent years, funding to provide Congress its printing services has been 

adequate, and no near-term shortfalls are anticipated. 

There has been a steady decline in recent years in traditional printing and binding in the 

Federal government. Certain GPO performance measures (i.e. , chargeable hours and number 

of procured jobs processed) reflect the decline. To stem the adverse financial impact that 

would typically ensue, GPO has actively been: downsizing its workforce; reducing its 

operating costs; trying to attain a larger share of the federal printing market; and encouraging 

customers to adopt electronic-media products when cost effective. 
36 GPO Annual Report 1998 

-11-

Also, GPO has been pursuing avenues that will increase the efficiency and effectiveness of the 

overall Federal government. GPO and the Department of Commerce recently completed the 

second year of their 5-year strategic alliance. As a result of the alliance, GPO developed a 

secure, electronic version of the Commerce Business Daily (CBD) that allows Federal 

procurement offices worldwide to enter their solicitations to GPO's Internet Web-site. This 

CBD program, the 1997 recipient of the National Performance Review's Hammer Award, has 

reduced customer charges per electronic solicitation by 72 percent. 

In 1998, GPO entered into reimbursable agreements with the Bi-cameral Commission on the 

Future of Medicare and the Census Monitoring Board. These agreements required GPO to 

provide each group with services beyond GPO's traditional printing and binding mission. For 

a small annual fee, GPO provides each group with complete payroll services. Also, GPO uses 

its existing infrastructure of Personnel Services, Materials Management Services, etc., to 

support each group. This has saved both groups the expense of maintaining administrative 

staffs to perform these functions, and frees their resources to focus on their objectives. 

• Fiscal Year 1998 Financial Results 

The public printing and documents chapters of Title 44, United States Code, require GPO to 

fulfill the printing needs of the Federal government and distribute government publications to 

the public. GPO activities are financed through a Revolving Fund, which is reimbursed by 

payments from customer agencies, sales to the public, and transfers from the Congressional 

Printing and Binding Appropriation and the Superintendent of Documents Salaries and 

Expenses Appropriation. The two annual appropriations are used to reimburse GPO for costs 

incurred while performing congressional work and fulfilling statutory requirements associated 

with the distribution of government publications, respectively. Reimbursements from the 

appropriations to the Revolving Fund are recorded as revenue, and unexpended appropriations 

are returned to the U.S. Treasury after 5 years. 

GPO experienced a consolidated net income of nearly $1.4 million in fiscal year 1998, 

compared with a $7.6 million net income in fiscal year 1997. Revenues decreased by $31.7 

million (4 percent) overall, while expenses decreased by $25.5 million (3 percent). A 

significant portion of the fiscal year 1997 net income was attributable to a one-time, $12 .8 

million, recovery of printing costs from Congress and the Depository Library Program for 

work performed in prior years (for details, see footnote 20). For several years, GPO was 

unable to recover the full cost of printing due to a Congressionally mandated freeze on GPO 

plant rates. Congress had appropriated sufficient funds to cover all the cost but GPO was 

prevented from billing the total cost during the prior years due to the rate freeze. In fiscal year 

1997, GPO was able to bill for the prior years' work that totaled $12.8 million. 

A summary of revenues and net income or loss in each GPO major operation is shown below. 
GPO Annual Report 1998 37 

-12-

GPO's Major Operations 

(Unaudited) 

(Dollars in thousands) 

1998 1997 

Net Income Net Income 

Revenues or(loss) Revenues or(loss) 

Revolving Fund: 

Printing and binding operations: 

Purchased printingCentral $274,992 $813 $297,162 $3,860 

Regional 192,444 (7,684) 191,095 (6,313) 

Subtotal 467,436 (6,871) 488,257 (2,453) 

In-house printingCentral 189,213 11,712 195,865 8,507 

Regional 1,534 (672) 2,171 (560) 

Subtotal 190,747 11,040 198,036 7,947 

Other 2,934 1,227 2,635 521 

Subtotal of printing and 

binding operations 661,117 5,396 688,928 6,015 

lnfonnation dissemination: 

Sales of publications 60,557 (3,626) 67,849 1,794 

Agency distributions 5,077 (395) 4,850 (240) 

Subtotal 65,634 (4,021) 72,699 1,554 

Appropriations: 

Salaries and expenses 30,962 27,896 

Congressional printing and binding 73,185 82,542 

Subtotal 104,147 110,438 

Total before eliminations 830,898 1,375 872,065 7,569 

Eliminations (1) (108,300) (117,765) 

Total after eliminations $722,598 $1,375 $754,300 $7,569 

(1) The eliminations include revenue recognized by one area of the GPO for products or services produced 

or provided to another area of GPO. In order to avoid recognizing the expense and revenue for intracompany transactions, eliminating entries must be made. In fiscal year 1998, major eliminations included 

printing work charged to the Congressional Printing and Binding Appropriation ($73.2 million), 

publications printed for the Sales of Publications Program for resale to customers ($16.8 million), and 

printing for programs funded by the Salaries and Expenses Appropriation ($14.8 million). 
38 GPO Annual Report 1998 

-13-

• Fiscal Year 1999 Projections 

GPO projects breakeven operations for fiscal year 1999. GPO estimates that revenue and 

expenses will increase slightly over 1998 figures, particularly in Printing and Binding 

Operations due primarily to the printing of materials for the Decennial Census. GPO will 

continue to develop and employ efficient business practices and production processes to contain 

costs where possible. Examples include: Production Operation's automated platemaking 

system and new passport production line, Printing Procurement's re-engineered procurement 

support system, and Superintendent of Documents Integrated Processing System. The GPO 

will continue to emphasize cost-effective methods of providing customer agencies and the 

public with government information and dissemination services. 

GPO expects to meet or exceed the congressionally mandated full-time equivalent ceiling of 

3,383 for fiscal year 1999, with no degradation in core products and services. This is possible 

primarily to efficiencies from recent investments in new technology and on-going automation 

efforts. 

• Reporting Year 2000 Issues 

With the publication of GPO Instruction 705 .26 titled "GPO Year 2000 Program Guide" on 

March 16, 1998, the Year 2000 (Y2K) program/projects have been given the top priority with 

total support and commitment from GPO management. Following the publication of the above 

publication, several procedural guidance documents have been issued. As of January 7, 1999, 

GPO has placed 31 out of the 40 mission-critical systems into production as Y2K compliant. 

GPO has contacted some of its business partners and is in the process of contacting the 

remaining partners to discuss and resolve issues regarding the Y2K compliance. If some of 

GPO's business partners are not ready to exchange Y2K compliant data , GPO will develop 

appropriate (front-end or back-end) software bridges to resolve the problems. 

GPO's costs associated with the Y2K Program/Projects are as follows: 

Actual or 

Year Projected Cost 

1996 $343,000 

1997 $5,886,000 

1998 $12,889,000 

1999 $6,028,000 

2000 $431,000 

Total $25,577,000 

The projected costs (1999 & 2000) are our best estimate based upon the information presently 

available and include the costs associated with remediating the non-mission-critical applications 

and GPO's facilities. 
GPO Annual Report 1998 39 

-14-

There are certainly risks associated with any effort of this magnitude. These risks can range 

from power outages to production problems involving mission-critical systems. GPO is in the 

process of preparing contingency plans for its most critical systems. GPO does not anticipate 

any serious problems when we transition into the new century. However. unanticipated 

problems may arise. A likely worst case scenario for GPO will be any Y2K problems 

affecting the Congressional products and services which will jeopardize their timely delivery to 

the Congress. 

GPO is progressing with its remediation/replacement plans to meet its Y2K challenges. In 

addition, GPO is in the process of preparing contingency plans for its most critical systems. 

These plans will be prepared in accordance with the GAO guidelines provided in its August 

1998 publication titled "Year 2000 Computing Crisis: Business Continuity and Contingency 

Planning" and should be ready by the end of March 1999. 
40 GPO Annual Report 1998 

-15-

CURRENT ASSETS 

Funds with U.S. Treasury (Note 2E) 

Accounts receivable, net (Note 4) 

Inventories, net (Note 2F) 

Prepaid expenses 

Total current assets 

Assets 

PROPERTY, PLANT, AND EQUIPMENT (Notes 2G & 5) 

Land and buildings 

Equipment and building improvements 

Total property, plant, and equipment 

Less: Accumulated depreciation and amortization 

Net property, plant, and equipment 

Total assets 

$ 

$ 

U. S. Government Printing Office 

Consolidated Balance Sheets 

as of September 30, 1998 and 1997 

(Dollars in thousands) 

Liabilities and Equity of the U.S. Go

1998 

165,200 $ 

154,917 

22,730 

656 

343,503 

18,633 

184,304 

202,937 

(129,124) 

73,813 

417,316 $ 

1997 

173,155 

143,151 

23,480 

202 

339,988 

18,633 

175,729 

194,362 

(121,601) 

72,761 

412,749 

I 

CURRENT LIABILITIES 

Accounts payable and accrued expenses (Note 6) 

Deferred revenue (Note 7) 

Accrued aMualleave (Note 2H) 

Total current liabilities 

OTHER LIABILITIES 

WOrkers' compensation liability (Notes 2K and 8) 

Total other liabilities 

Total liabilities 

COMMITMENTS AND CONTINGENCIES (Notes 9 and 10) 

EQUITY OF THE U.S. GOVERNMENT 

Revolving Fund (Note 11) 

Cumulative results of operations 

Invested capital 

Appropriated Funds (Note 12) 

Total equity ofthe U.S. government 

T ota1 liabilities and equity of the 

U.S. government 

$ 

$ 

The accompanying notes are an Integral part of these consolidated financial statements 
GPO Annual Report 1998 41 

-16-

U.S. Government Printing Office 

Consolidated Statements of Revenues and Expenses 

For the Fiscal Years Ended September 30, 1998 and 1997 

(Dollars in thousands) 

1998 1997 

FWcentd FWcentd 

Amou"t ~ Amotrt RsYenues 

REVfM.E.S 

Prirting and blnclng $ 553,730 76.6"/o $ 572,106 75.9% 

Sales 

~ 

d p.jllications 60,557 8.4 67,849 9.0 

~ 

103,234 14.3 109,495 14.5 

5,(177 0.7 4,850 0.6 

Total rtMnJeS 722,598 100.0 754,300 100.0 

EXPENSES 

Prirting and n!p'OCU:tion 413,588 57.2 427,342 56.8 

Per.iornll CCiilB Uion and benefits 195,029 '11.0 205,393 27.2 

Sl4JPI1es and rmtErials 40,343 5.6 41,703 5.5 

~Wits, cannrications, and utilities 27,633 3.8 30,168 4.0 

Ptblications sold 16,806 2.3 18,175 2.4 

Depnlcialion and armrtization 8,366 1.2 8,476 1.1 

Olher services 10,727 1.5 7,380 1.0 

&.plus pUJiications 2,963 0.4 2,509 0.3 

Travel and tra ISPOitation 5,768 0.8 5,585 0.7 

Total expenses 721,223 99.8 746,731 99.0 

t£TI~ $ 1,375 0.2% $ 7,569 1.0% 

The accompanying notes are an integral part of these consolidated financial statements. 
42 GPO Annual Report 1998 

-17-

U.S. Government Printing Office 

Consolidated Statements of Cash Flows 

For the Fiscal Years Ended September 30, 1998 and 1997 

(Dollars in thousands) 

1998 

CASH FLOWS FROM OPERATING ACTIVITIES 

Net income $ 1,375 $ 

Adjustments to reconcile net income to net cash used in 

operating activities: 

Depreciation and amortization 8,366 

Depreciation expense funded from appropriated capital (444) 

Gain on disposal of property, plant, and equipment (56) 

Changes in assets and liabilities: 

(Increase) decrease in assets· 

Accounts receivable (11,767) 

Inventories 750 

Prepaid expenses (454} 

Increase (decrease) in liabilitiesAccounts payable and accrued expenses (3,325} 

Deferred revenue 14,085 

Accrued annual leave 61 

Workers' compensation liability (2,891} 

Total adjustments 4,325 

Net cash provided by operating activities 5,700 

CASH FLOWS FROM INVESTING ACTIVITIES 

Capital expenditures (9,320} 

Proceeds from sale of property, plant, and equipment 83 

Net cash used in investing activities (9,237) 

CASH FLOWS FROM FINANCING ACTIVITIES 

(Decrease) increase in unexpended appropriations (4,418) 

Funds returned to U.S. Treasury from: 

Congressional Printing and Binding Appropriation 

Net cash used in financing activities (4,418) 

NET INCREASE (DECREASE} IN FUNDS WITH U.S. TREASURY (7,955) 

FUNDS WITH U.S. TREASURY, beginning of year 173,155 

FUNDS WITH U.S. TREASURY, end of year $ 165,200 $ 

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

1997 

7,569 

8,477 

(444) 

(11) 

13,106 

2,739 

145 

4,503 

(7,814) 

200 

4,235 

25,136 

32,705 

(9,570) 

78 

(9,492) 

309 

(7,447} 

(7,138} 

16,075 

157,080 

173,155 
GPO Annual Report 1998 43 

-18-

U.S. Government Printing Office 

Notes to Consolidated Financial Statements 

September 30, 1998 and 1997 

1. Organization: 

The U.S. Government Printing Office (GPO), a Legislative Branch agency, was established by 

the public printing and documents statutes of Title 44 of the U.S. Code. Congress enacted this 

legislation to provide to the Federal government an economic and efficient means for the 

production and procurement of congressional and agency printing and binding, and for the 

dissemination of information to the public. The Public Printer, appointed by the President of 

the United States with the advice and consent of the U.S. Senate, oversees the operations of 

GPO. GPO discharges its responsibilities through the operation of a Revolving Fund and 

congressional appropriations. 

2. Significant Accounting Policies: 

A. Basis of Accounting 

The accompanying consolidated financial statements are prepared on the accrual basis of 

accounting in accordance with generally accepted accounting principles. 

B. Basis of Consolidation 

The accompanying consolidated financial statements of GPO include the accounts of all funds 

under GPO control that have been established and maintained to account for the resources of 

GPO. All significant intra-agency balances and transactions have been eliminated in 

consolidation. In addition, in Fiscal Year 1998, GPO established reimbursable agreements 

with the Census Monitoring Board and the Bi-Cameral Commission on the Future of Medicare. 

Under these agreements, GPO, for a fee, provides administrative support services. Expenses 

incurred and the concomitant reimbursements have been removed from GPO's financial 

statements. 

Intra-agency transactions that must be eliminated to consolidate GPO financial statements for 

the years ended September 30, 1998 and 1997, consisted of the following. 
44 GPO Annual Report 1998 

-19-

Printing and reproduction: 

Congressional printing and binc:ting 

Sales of publications 

Salaries and expenses 

GPO internal use 

Total printing and reproduction 

Data processing 

Miscellaneous 

Total 

(Dollars in thousands) 

1998 1997 

$73,185 $82,542 

16,806 18,175 

14,790 12,654 

379 573 

105,160 113,944 

2,2T! 2,878 

913 3,418 

$108,300 $120,240 

In addition, there is an elimination within the In-house Printing Program of revenues and 

expenses for services and other internal transactions (e.g., internal-use forms, electronic 

repairs) provided to and by the In-house Printing Operations. This elimination was $5,297,000 

and $5.264,000 for the years ended September 30, 1998 and 1997, respectively. 

C. Methods of Funding 

• Revolving Fund accounts are established to finance a continuing cycle of operations with 

receipts derived from operations. The GPO Revolving Fund is used to finance two major GPO 

programs: Printing and Binding Operations and Sales of Publications Operations. 

Printing and Binding Operations accounts record transactions related to printing and binding 

performed for customer agencies and Congress. Sales of Publications Operations accounts are 

used to record transactions related to the sale of government publications and the distribution 

of publications on behalf of customer agencies. 

• General Fund accounts record financial transactions arising under annual congressional 

appropriations. GPO operates two major programs that are financed in this manner: the 

Salaries and Expenses Appropriation and the Congressional Printing and Binding 

Appropriation. 

The Salaries and Expenses Appropriation account records transactions for expenses incurred 

by the Superintendent of Documents for depository library distributions, international exchange 

distributions, other statutory distribution of publications, and for the cataloging and indexing of 

government publications. 
GPO Annual Report 1998 45 

-20-

The Congressional Printing and Binding Appropriation account is used to record priming and 

binding performed for Congress and for printing and binding publications authorized by law to 

be distributed without charge to recipients. 

To the extent feasible, general and administrative expenses have been allocated among the 

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

D. Revenue Recognition and Expended Appropriations 

• In-house Printing and Binding - By law, GPO must be reimbursed for printing and binding 

services by the customer agency. Consequently, all Revolving Fund revenues from in-house 

printing and binding work (work not commercially procured) are recognized on a value-added 

basis, i.e., as work is performed. 

The fiscal year 1997 total GPO and in-house printing revenue includes $12.8 million of 

revenue from unexpended appropriations in prior years. The $12.8 million represents the 

recovery of costs of performing work for the Congress during fiscal years 1994 and 1995 

totaling $11.5 million, and for Depository Libraries during fiscal years 1994, 1995, and 1996 

totaling $1.3 million. These funds had been appropriated and obligated but were not billed and 

collected at that time due to a restriction on increasing GPO prices, as required by law. This 

event did not reoccur in fiscal year 1998. 

• Commercially Procured Printing and Binding- Revolving Fund 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 

contractor to the requesting agency. 

• Distributing or Selling Publications- Revolving Fund revenues from distributing or selling 

publications are recognized when the publications have been shipped or when the services have 

been performed. 

• Appropriation Revenues- Appropriation revenues are recorded when the qualifying 

expenses are incurred. The amount of appropriations expended and the programs funded by 

appropriations are presented in Note 12A. Unexpended appropriations are recorded as a 

component of Equity of U.S. Government (see Note 12B). Obligated and unobligated 

appropriation balances are canceled after 5 years. 

• Deferred Revenues - Deferred revenues result from the receipt of customer remittances for 

products or services that will be delivered or provided in the future. Deferred revenues are 

classified into the following categories: deferred subscription revenue, Customer deposits--held 

on account, Customer deposits--unfilled orders, and advanced billings to Federal agencies. 

Deferred subscription revenue represents the value of the subscription service that has not yet 

been provided for products such as the Congressional Record, the Federal Register, and the 

Commerce Business Daily. The category, "Customer deposits--held on account," represents 

amounts received from customers for deposit in pre-established accounts to provide the 
46 GPO Annual Report 1998 

-21-

customer the convenience of sending periodic payments to pay for publications ordered, rather 

than remitting payments for every item ordered. "Customer deposits--unfilled orders. " 

represents funds received for publications not available for irrunediate shipment. Revenue for 

these transactions will be recognized at the time the products (subscriptions, publications, etc.) 

are delivered. Finally, "Advanced billings to Federal agencies, " are advance payments made 

by agencies to cover the cost of producing large printing orders. This revenue is recognized as 

work is completed. 

E. Funds with U.S. Treasury 

Funds with U.S. Treasury represent all unexpended balances in GPO's accounts with the 

Department of the Treasury. A breakdown of items included in GPO's funds with the U. S. 

Treasury as of September 30, 1998 and 1997 follows. 

(Dollars in thousands) 

1998 1997 

Revolving fund $110,938 $106,114 

Appropriations: 

1993 1,521 

1994 2,210 4,181 

1995 6,095 8,836 

1996 8,151 10,030 

1997 14,369 41,848 

1998 22,573 

Total appropriations 53,398 66,416 

On-hand and in-transit 864 625 

Total $165,200 $173,155 

In 1997, the U.S. General Accounting Office (GAO) defined restricted funds with U.S. 

Treasury for GPO as funds with U.S. Treasury held for customer deposit accounts and 

employees' accrued salaries and aruma) leave and caru10t be used other than for those specific 

purposes. GPO had restricted funds with U.S. Treasury of $46.9 million and $28.7 million at 

September 30, 1998 and 1997, respectively. Also, the agreement between GPO and the 

Census Monitoring Board (CMB) provided for CMB funds to be reported on GPO's Treasury 

statements. GPO's "Year end Closing Statement" (TFS 2108) included $3,843,000 in 

unexpended CMB appropriations that have been excluded from GPO's financial statements. 

All appropriated funds were either expended or obligated at September 30, 1998 and 1997 (See 

note 12). 
GPO Annual Report 1998 47 

-22-

F. Inventories 

The components of inventories as of September 30, 1998 and 1997 are as follows. 

(Dollars in thousands) 

1998 1997 

Publications for sale $11,093 $10,523 

Allowance for surplus publications (2,393) (2,526) 

Publications for sale, net 8,700 7,997 

Paper 6,450 7,281 

Materials and supplies 9,532 9,949 

Allowance for obsolescence (1,952~ (1,747) 

Paper, materials, and supplies, net 14,030 15,483 

Inventories, net $22,730 $23,480 

Inventories of publications held for sale are valued at the lower of cost, using the weighted 

average cost method, or market, and are shown net of an allowance for surplus publications. The 

allowance for surplus publications is established for the estimated value of potentially obsolete or 

excess publications held in inventory. In fiscal year 1998, GPO established a category of 

historical publications, which will never be destroyed. The effect of this change was a reduction 

of the allowance for surplus publications account, and a corresponding decrease in surplus 

publications expense of $361 ,000. 

Paper, materials, and supplies inventory includes the cost of production material (e.g., blank 

paper, spare parts, ink, and book cloth), as well as the cost of administrative-use supplies. This 

inventory is valued at the lower of cost, using the weighted moving average cost method. or 

market, net of an allowance for materials and supplies obsolescence. There is no provision for 

paper obsolescence due to the frequency of use. 

G. Property, Plant, and Equipment 

Property and equipment purchases and additions are valued at cost. Printing equipment 

transferred to GPO from other Federal agencies is valued in accordance with JCP Regulation 

Number 26, Government Printing and Binding Regulations. This valuation approximates 

historical net cost. 

Major alterations and renovations are capitalized while normal maintenance and repair costs 

are expensed as incurred. Depreciation and amortization of property and equipment is 

calculated on a straight-line basis over their respective estimated useful lives. The range of 
48 GPO Annual Report 1998 

-23-

estimated useful lives of GPO assets is as follows. 

Category 

Buildings and improvements 

Plant machinery and equipment 

Office machinery and equipment 

Computer hardware 

Computer software 

Furniture and fixtures 

Vehicles 

Estimated Useful Life 

42 to 50 years 

5 to 20 years 

5 years 

5 years 

3 years 

5 years 

3 to 6 years 

Leasehold improvements are amortized over the lesser of their useful lives or lease terms. 

H. Annual, Sick, and Other Types of Leave 

Annual leave is accrued as a liability when earned, and the liability reduced when leave is 

used. Each year the annual leave liability is adjusted to reflect current pay rates. At 

September 30, 1998, the liability for accrued arumalleave was $11,331,000 compared with 

$11 ,270,000 at September 30, 1997. 

Sick leave and other types of non-vested leave are expensed when used. There is no limit on 

the amoum of sick leave that may be accumulated, and no payment is made for unused sick 

leave. 

I. Accounting for Intra-agency Activities 

Other Federal agencies make financial decisions and report certain financial matters on behalf 

of the entire Federal goverrunent, including matters in which individual agencies may be an 

indirect party. Federal agencies are required to record or report only those financial matters 

for which they are directly responsible (GAO's Policies and Procedures Manual for Guidance 

of Federal Agencies, Title 2, "Accounting"). Financial matters maintained or reported by 

other Federal agencies in which GPO is indirectly involved include employee benefit plans (see 

Note 3) and certain legal situations (see Note lOA). 

J. Statements of Cash Flows 

The statements of cash flows identify cash receipts and payments and classify them into 

operating, investing, and financing activities. The disclosure of this information is intended to 

help assess the ability of GPO to generate funds from current operations, to identify financing 

acquired from outside sources, and to identify the major non-operating (investing) uses of 

funds. For purposes of these statements, cash is considered to be Funds with U.S. Treasury, 

as defined in Note 2E. 
GPO Annual Report 1998 49 

-24-

K. Workers' Compensation Liability 

The Workers' Compensation Liability (WCL) is the estimated liability for future compensation 

and medical benefits that GPO is or will be obligated to pay. GPO discounted the value of 

estimated future payments to reflect the time value of money and increased future payments for 

estimated cost of Jiving adjustments and consumer price index increases. The probability of 

future payments was based on historical benefit payment patterns combined with current 

information related to individual benefit claims. 

L. Change in Accounting Estimate 

In fiscal year 1998, GPO changed an accounting estimate used to recognize revenue from the 

sale of basic and supplemental subscriptions in the Sales of Publications Program. Customers 

purchasing a basic subscription are entitled to supplements (updates) when they are issued by 

the publishing agency. Prior to 1998, GPO recognized 75 percent of the revenue from basic 

and supplement subscriptions when the basic was shipped. The remaining 25 percent was 

recognized evenly over the following 36 months, which is the average life cycle of a basic and 

its supplements. In 1998, a study reestimated that 65 percent of the revenue should be 

recognized upon shipment of the basic and the remaining 35 percent recognized evenly over 

the ensuing 36 months. This change in estimate resulted in a reduction in Sales of Publications 

revenue and an increase in the Deferred Subscription Revenue liability account of $1.1 million 

in 1998. 

M. Use of Estimates 

The preparation of financial statements requires management to make estimates and 

assumptions that affect the reported amount of assets and liabilities, as well as the disclosure of 

contingent assets and liabilities at the date of the financial statements, and the amount of 

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

these estimates. 

N. Reclassification of Fiscal Year 1997 Balances 

Certain reclassifications have been made to fiscal year 1997 balances to present them 

consistently with the fiscal year 1998 financial statements. 

3. Employee Benefit Plans: 

GPO funds a portion of pension contributions for its employees under the Civil Service 

Retirement System (CSRS) and the Federal Employees Retirement System (FERS), and also 

makes payroll deductions from employees for their pension contribution. The required employer 

contributions are established by the U.S. Office of Personnel Management (OPM). OPM is 

responsible for government-wide reporting ofFERS and CSRS assets, accumulated plan 

benefits, and unfunded liabilities. Therefore, GPO is not required to disclose the unfunded 

pension liability and post-employment benefits relative to its employees. 
50 GPO Annual Report 1998 

-25-

A. Civil Service Retirement System 

The majority of GPO's employees were covered by the CSRS. a defined benefit plan. during 

fiscal years ending September 30, 1998 and 1997. Total GPO (employer) contributions to 

CSRS for employees covered under this retirement program were 9.01 percent in fiscal year 

1998 (7.5 percent in fiscal year 1997) for Congressional Record indexers, investigators, and 

law officers. and 8.51 percent in fiscal year 1998 (7 percent in 1997) for all other employees. 

GPO's contributions were $9.8 million and $8.4 million for the years ended September 30, 

1998 and 1997, respectively. 

B. Federal Employees Retirement System 

On January 1, 1987 the FERS commenced pursuant to Public Law 99-335. Using Social 

Security as a base, the FERS provides a defined benefit plan (Basic Benefit Plan) and a 

voluntary (defined contribution) plan. Employees 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. Unlike CSRS, 

FERS offers the Federal Government's Thrift Savings Plan (TSP), which requires GPO to 

contribute 1 percent of an enrolled employee's base pay, and additionally to match voluntary 

employee contributions up to 4 percent of base pay. 

GPO (employer) contributions to FERS were 15.4 percent (16.9 percent in fiscal year 1997) 

for Congressional Record indexers, 23.3 percent (24.3 percent in 1997) for investigators and 

law officers, and 10.7 percent (11.4 percent in 1997) for all other employees covered under 

this plan. Total GPO contributions were $4.6 million in each year. TSP requires GPO to 

contribute 1 percent of an enrolled employee's base pay, and additionally to match voluntary 

employee contributions up to 4 percent of base pay . Additional contributions of GPO's share 

to the TSP for the years ended September 30, 1998 and 1997, totaled $1.7 million in fiscal 

year 1998 and $1.5 million in fiscal year 1997. 

C. Social Security System 

GPO also makes matching contributions to the Social Security Administration (SSA) under the 

Federal Insurance Contributions Act (FICA). For employees covered by FERS, GPO 

contributes matching amounts of 6.2 percent of gross pay (up to $68,400) 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 to SSA's Medicare Hospital 

Insurance Program. Payments to these programs for the years ended September 30, 1998 and 

1997 totaled $5.4 million and $5.3 million, respectively. 

D. Pension and Other Post-Employment Benefits Provided by Others 

Statement of Federal Accounting Standards No. 5, Accounting for Liabilities of the Federal 

Government, requires federal agencies to follow Federal Accounting Standards to recognize 

their share of the "normal cost" of pension and other post-employment benefits provided by 

others. To the extent that normal costs exceed current contributions, the standard requires that 
GPO Annual Report 1998 51 

-26-

an additional expense be recognized, or offset, by imputed funding. 

As a Legislative agency, GPO has elected to prepare its financial statements on the basis of 

generally accepted accounting principles rather than Federal Accounting Standards and 

accordingly has reflected only the current cost of these programs in its financial statements 

since OPM is responsible for funding the normal cost component. 

4. Accounts Receivable: 

Accounts receivable as of September 30, 1998 and 1997, consists of the following. 

(Dollars in thousands) 

1998 1997 

Federal Agencies: 

Unbilled completed work $120,667 $107,445 

Unbilled work in process 16,089 18,357 

Billed completed work 17,876 16,400 

Subtotal 154,632 142,202 

Other receivables: 

The public 814 1,735 

GPO employees 972 1,029 

Subtotal 1,786 2,764 

Total accounts receivable 156,418 144,966 

Allowance for doubtful accounts ~1,501~ (1,815) 

Total accounts receivable, net $154,917 $143,151 

The majority of GPO accounts receivable are due from other Federal agencies. Unbilled 

completed work results from the delivery of goods or the performance of services for which 

bills have not been presented. At September 30, 1998, this balance included finished work for 

which invoices have not been prepared of $55:1 million, unbilled commercial printing of $52.4 

million, and finished work of $12.7 million that will be collected via the U. S. Treasury's 

OPAC in October 1998. 

Unbilled work in process represents the amount of work performed on customer orders as of 

September 30, 1998 and 1997, that by law must be reimbursed by GPO customers. 
52 GPO Annual Report 1998 

-27-

Employees' accounts receivable for fiscal year 1998 includes $911,000 and $53,000 owed by 

current and fanner employees, respectively, who were advanced leave. Leave indebtedness 

for employees is repaid in biweekly installments or by other GPO employees on their behalf, 

through the donated leave program. 

5. Property, Plant, and Equipment: 

Property, plant, and equipment as of September 30, 1998 and 1997 consisted of the following. 

([}:}!las in thous&nis) 

AcamJcted 1998 1997 

AaPsffioo Depreciatioo Net Net 

value &Arratizaioo Bc:x*value Bc:x*Value 

l.aYJ $9,!1n $ $9/m $9,'m 

aildrgs 8,656 8,656 

aildngi~ 55,166 36,516 18,69) ~.382 

Leasehold i~ 1,003 1,048 555 338 

Plart rrachinery and ecJiJJllri 81,397 57,856 23,541 25,(&) 

alice rrachinery and ecpJJllri 19,355 13,902 5,453 ~915 

CaqUer scltva'e 16,242 7,130 9,112 7,461 

Fllrib..re and fixtues 3,048 1,156 1,892 1,743 

Veticles 3,2A3 2,860 383 461 

Capta i~ in pucess 256 256 

satv.ae dEM!Iopmrt in JnX:e5S 3,994 3,994 2,424 

Taal $202,937 $129,124 $73,813 $72,761 

6. Accounts Payable and Accrued Expenses: 

Accounts payable and accrued expenses as of September 30, 1998 and 1997 were composed of 

the following. 
GPO Annual Report 1998 53 

-28-

(Dollars in thousands) 

1998 1997 

Accounts payable: 

Commercial printing $50,548 $50,630 

U.S. Government agencies 15,420 17,805 

Other 4,540 6,512 

Total accounts payable 70,508 74,947 

Accrued salaries and wages 10,154 9,032 

State and local payroll taxes 790 799 

Total accounts payable and $81,452 $84,778 accrued expenses 

7. Deferred Revenue: 

As of September 30, 1998 and 1997, deferred revenue consisted of the following. 

Deferred subscription revenue 

Customer deposits-held on account 

Customer deposits-unfilled orders 

Advanced billings to Federal agencies 

Total 

(Dollars in thousands) 

1998 1997 

$14,718 $16,175 

24,700 7,883 

1,362 1,433 

2,785 3,989 

$43,565 $29,480 

"Customer deposits--held on account" for printing and binding represent amounts received in 

advance from Federal agencies to cover future printing requirements. This is $17.6 million of 

the $24.7 million balance. The remainder constitutes customer deposits held for publication 

orders. At the time a customer closes a deposit account or cancels a subscription, the 

customer's unused account balance is refunded. 

8. Summary of Significant Assumptions for Workers' Compensation Liability: 

Projected annual benefit payments have been discounted to present value using the Office of 
54 GPO Annual Report 1998 

-29-

Management and Budget's economic assumptions for 10-year Treasury notes and bonds. 

Interest rate assumptions utilized for discounting purposes in 1998 and 1997 as provided by 

OMB were as follow. 

1998 

1997 

1998 

N/A 

6.24 

1999 

5.60 

5.82 

2000 

5.60 

5.60 

2001 

5.60 

5.45 

2002 and 

thereafter 

5.60 

5.40 

Wage inflation factors (cost of living adjustment, or COLA) and medical inflation factors 

(consumer price index for medical costs, or CPIM) were used to calculate the estimated future 

compensation and medical payments. Retention rates were developed using data provided by 

the Department of Labor to estimate the claims that would continue being paid in the future. 

The retention rate of 91.07% was applied to current claims in addition to future COLA and 

CPIM factors. The COLA and CPIM factors used to develop the estimated liability at 

September 30, 1998 and 1997 f9llow. 

COLA 

CPIM 

1999 

1.5% 

3.6% 

2000 

1.7% 

3.8% 

2001 

2.2% 

3.9% 

2002 and 

thereafter 

2.3% 

3.9% 

The future payments were estimated over the life expectancy of each claimant. The life 

expectancy rates were based on annuity tables prepared by the Internal Revenue Service and 

used to estimate the expected remaining life of federal retirees for determining reportable 

taxable pension benefits. 

The Workers' Compensation Liability is approximately $28.9 million and $31.8 million at 

September 30, 1998 and 1997, respectively. 

9. Commitments: 

A. Operating Leases 

As of September 30, 1998, GPO was committed to various non-cancelable operating leases, 

primarily covering warehouse, office, and retail space. Some of these leases contain escalation 
GPO Annual Report 1998 55 

-30-

clauses and renewal options. A schedule of future minimum rental payments required under 

operating leases by type. which have initial or remaining non-cancelable lease terms in excess 

of one year follows. 

(Dollars tn thousands) 

Fiscal Year Warehouse Office Retail Total 

1999 $2,203 $270 $496 $2,969 

2000 1,576 247 380 2,203 

2001 214 166 308 688 

2002 89 240 329 

2003 6 39 45 

2004 and beyond 

Total minimum lease payments $3,993 $778 $1,463 $6,234 

Rent expenses for the years ended September 30, 1998 and 1997, were $5,958,000 and 

$6,099,000, respectively. 

B. Commitments on Undelivered Orders 

Some of GPO's orders for goods and services have been placed, but have not been delivered at 

fiscal year-end. Total undelivered orders for all GPO activities were approximately $91.7 

million and $111.5 million as of September 30, 1998 and 1997, respectively. 

10. Contingencies: 

A. Administrative proceedings, Legal actions, and Claims 

GPO is a party to various administrative proceedings, legal actions, and claims brought by or 

against it. In the opinion of GPO management and legal counsel, the ultimate resolution of 

these proceedings, actions, and claims will not materially affect the financial position or results 

of operations of GPO. 

Occasionally, GPO may be the named party, but another agency may administer and litigate 

the case. Amounts to be paid under any decision, settlement, or award pertaining thereto may 

be funded by those agencies. In most cases, tort claims are administered and resolved by the 

U.S. Department of Justice, and any amounts necessary for resolution are obtained from a 

Special Judgment Fund maintained by the Department of the Treasury. Amounts paid from 

this fund on behalf of the GPO were $17,300 and $131,000 for the years ended September 30, 

1998 and 1997, respectively, and are not reflected in the GPO's consolidated financial 

statements. 
56 GPO Annual Report 1998 

-31-

B. Year 2000 Computing Issue 

The Year 2000 computing issue represents a significant challenge to the federal government. 

It is vulnerable to adverse effects of the Year 2000 issue as a result of. among other things. its 

dependence on computer systems to process financial transactions. deliver services. and 

perform operations; the age of and documentation for its existing computer systems: its need to 

interface with computer systems of other federal goverrunent agencies and other non-federal 

goverrunent organizations; its working capital to fund necessary remediation efforts: and its 

ability to complete necessary remediation prior to experiencing adverse consequences related to 

effects of the Year 2000 computing issue . 

GPO faces unresolved issues related to the Year 2000 computing issue. GPO has developed a 

comprehensive plan and approach to address these challenges and monitors its activities against 

the plan. Management believes that its approach to addressing and remediating Year 2000 

issues is comprehensive and appropriate. If the plan is successfully implemented, management 

believes that its mission critical systems will not experience adverse effects of the Year 2000 

computing issue. However, due to the complexities of the Year 2000 computing issue, there 

can be no assurance: that a Year 2000 computing issue that may exist has been or will be 

identified; on the adequacy of GPO's Year 2000 remediation plans related to financial or 

operational issues; or on whether GPO is or will be Year 2000 compliant on a timely basis. 

Failure of GPO to successfully carry out and complete its comprehensive Year 2000 plan may 

result in changes in GPO's structure, operations, and mission; affect its ability to provide 

goods and services, or perform its mission, in a timely manner; and cause other operating 

disruptions. 

11. Revolving Fund: 

A. Cumulative Results of Operations 

Cumulative results of operations for the Revolving Fund include net operating results since its 

inception, reduced by funds returned to the Department of the Treasury by legislative 

rescissions, and by transfers to other Federal agencies. 

B. Invested Capital 

Invested Capital represents Federal goverrunent resources directly appropriated to GPO by 

Congress to invest in GPO assets, primarily in land, buildings, equipment, and working 

capital. The Revolving Fund was established in 1953 with appropriated funds of $33.8 million, 

and buildings and land with a fair market value of $415,000. Subsequently, Congress 

provided additional funding to GPO for working capital ($58 million since 1953) and land and 

other improvements ($17 .5 million since 1971). 

Increases to Invested Capital are also recorded when printing equipment is donated to GPO. 

Invested Capital is reduced over the useful life of the donated asset or when retired. The net 

book value of assets donated to GPO from other agencies was $398,000 and $273,000 in fiscal 

years ending September 30, 1998 and 1997, respectively. 
GPO Annual Report 1998 57 

-32-

The Revolving Fund received appropriations totaling $12.9 million during the 1970's for an 

air-<:onditioning system that was recorded as Invested Capital. Invested Capital is reduced 

annually by $444,000 to reflect the air-conditioning system's depreciation. 

In fiscal year 1998, Congress authorized that up to $11 ,017 ,000 of GPO's invested capital to 

be used to supplement the 1998 Congressional Printing and Binding Appropriation. Based on 

fiscal year 1998 expenditures and obligations, and an estimate of funding required to complete 

all work obligated during the year, GPO transferred $3,748,000 million to the 1998 

Congressional Printing and Binding Appropriation, which was recorded as a reduction in 

invested capital. 
58 GPO Annual Report 1998 

-33-

C. Summary of Revolving Fund Activity 

Below is a summary of activity for the Revolving Fund portion of Equity of U.S. Government 

in fiscal years ending September 30, 1998 and 1997. See Note 12 for Appropriated Funds 

summary. 

(Dollars in ttn.ascnts) 

Clm.llative Total 

RestJtsd II'M!Stl!d ReYolvirYJ 

~ eaptaJ Fllld 

RI!Yolving Fllld balance, Sepau tiel 30, 1996 $91,101 $100,731 $191,832 

ll:lnaled ~Jmri, net (77) (77) 

Reclassificatia to tr.nsfer depreciation 

expense for air-anitioning ~ (444) (444) 

Net ii'1Ca'T1! for fiscal year erdrYJ 

SetAa r'ber 30, 1997 7,f:JS 7,!!/!S 

RIM:llving FU1d baiMce, Septer rtler 30, 1997 98,670 100,210 198,800 

Dtnlted ~JX'I'I!ft, net 125 125 

lktassification to transfer depeciatlon 

expense for air«RitionirYJ system (444) (444) 

Fllld 

~ 

transfer fran Rellotving FU'ld to 

PrintingandBincing~m (3,748) (3,748) 

Net incorre for fiscal year encing 

Sepa IDa 30, 1998 1,375 1,375 

Revolvirg Fllld bal..:e, Sepa .... 30, 1998 $100,045 $96,143 $196,188 

12. Appropriated Funds: 

A. Expended Appropriations 

Total appropriations initially made available for fiscal years ending September 30, 1998 and 

1997, were $70,652,000 and $81,669,000 for Congressional Printing and Binding, 

respectively, and $29,077,000 in both years for Salaries and Expenses of the Superintendent of 

Documents. 
GPO Annual Report 1998 59 

-34-

Expended appropriations for program operations for the years ending September 30. 1998 and 

1997, were as follows. 

Congressional printing and binding: 

Congressional Record products 

Miscellaneous publications and 

printing and binding 

Hearings 

Bills, resolutions, and amendments 

Details to Congress 

Other 

Total congressional printing and binding 

Salaries and expenses: 

Depository library distribution 

Cataloging and indexing 

By-law distribution 

International exchange 

Total salaries and expenses 

Total expended appropriations 

Reconciliation of expended appropriations to the 

consolidated statements of revenues and expenses: 

Total expended appropriations 

Eliminations (Intra-agency) 

Consolidated revenues from appropriations 

B. Unexpended Appropriations 

(Dollars in thousands) 

1998 1997 

$17,337 

16,799 

16,945 

8,762 

2,504 

10,838 

73,185 

26,830 

2,959 

558 

615 

30,962 

$104,147 

$104,147 

(913) 

$103,234 

$23,559 

20,703 

15,400 

10,138 

2,225 

10,517 

82,542 

23,986 

3,112 

458 

340 

27,896 

$110,438 

$110,438 

(943) 

$109,495 

As of September 30, 1998, GPO had unexpended appropriations that were obligated for 

Salaries and Expenses and Congressional Printing and Binding services of $20,031,000 and 

$35,868,000, respectively. At September 30, 1997, these amounts were $21,916,000 and 

$34,653,000, respectively. 

13. Related-party Transactions: 

The Refectory Cafe, Ltd. (RCL), a non-profit corporation chartered in the District of 
60 GPO Annual Report 1998 

-35-

Columbia in 1985, operated the GPO Cafeteria (Cafeteria) until November 18, 1994. The 

members of the Board of Directors of the RCL, who were appointed by a former Public 

Printer, were the current Public Printer, the former Deputy Public Printer, and one seniorlevel GPO manager. 

From its incorporation through November 18, 1994, the Cafeteria sustained cumulative losses 

of approximately $600,000. In fiscal year 1995, GPO paid approximately $100.000 to satisfy 

the RCL's creditors, as the Cafeteria was unable to meet these obligations. In fiscal year 

ending September 30, 1997, GPO and Massachusetts Mutual Life Insurance Company, the 

RCL's Pension Plan trustee, settled with all vested former Cafeteria employees. After 

liquidation of the Pension, $140,000 was deposited in the GPO Revolving Fund to offset 

GPO's expenditures in fiscal years 1995 and earlier. 

14. Concentration of Credit Risk: 

GPO financial instruments, none of which are held for trading purposes, consist primarily of 

cash and cash equivalents, accounts receivable , and accounts payable at September 30, 1998 

and 1997. GPO estimates the fair value of financial instruments at September 30, 1998 and 

1997 to be the carrying value. Cash and cash equivalents are held by the U.S. Treasury, 

accounts receivable are primarily due from various U.S. Government agencies, and the 

accounts payable are primarily due to various commercial vendors. 

15. Major Customers: 

GPO's primary customers are Federal agencies. Revenues from those customers representing 

10% or more of GPO's revenues are as follows. 

Department of Defense 

Department of U.S. Treasury 

Congress 

1998 

Amount 

$148,947 

$82,427 

$80,643 

(Dollars in thousands) 

1997 

Percent Amount Percent 

20.6% $156,618 20.8% 

11.4% $88,024 11.7% 

11.2% $75,368 10.0% 
GPO Annual Report 1998 61 -36-

U.S. GOVERNMENT PRINTING OFFICE 

Consolidating Balance Sheet by Fund Type 

As of September 30, 1998 

(Dollars in thousands) 

(Unaudited) 

Revolving Fund General Fund 

Congressional 

Sales of Salaries and Printing Total 

Expense• and Binding Before 

Printing 

and Binding 

Operations 

P u bile allons 

Operations Appropriation Appropriation• Eliminations Elimi

ASSETS 

CURRENT ASSETS 

Funds with U.S. Treaaury 

Accounts receivable, net: 

From other Federal agencies 

From the public 

From GPO employees 

Inventories: 

Publications for sale, net 

Paper 

Materials and supplies, net 

Prepaid expenses 

Total current assets 

PROPERTY, PLANT, ANO EQUIPMENT 

Land and buildings 

Building Improvements 

Leasehold Improvements 

Plant machin ery and equipment 

Office machinery and equipment 

Computer software 

Furniture and fixtures 

Vehicles 

Capital 1m provements In proc ess 

Software development In proces s 

Less : Accumulated depreciation and 

am ortlzallon 

Net property, plant, and equipment 

Total assets 

$ 

$ 

85,959 s 25,843 $ 

162,825 2,308 

274 321 

925 . 

8,700 

6,450 . 7,580 . 

656 . 

264,669 37,172 

18,633 . 

55,166 

1,603 

81 ,397 . 

19 ,355 . 

16,242 . 3,048 

3,243 

266 

3,994 

1129 ,124! 

73 ,813 

338,482 $ 37,172 $ 

21,278 $ 32,120 $ 165,200 $ 

173 3 ,748 169,054 

. 595 

. 925 

. . 8,700 

6,450 

7,580 

656 

21 ,451 35 ,868 359,160 

. 18 ,633 

. 55,166 

. 1,603 

. 81 ,397 

. . 19,355 

16,242 

. 3 ,048 

. 3 ,243 

. 256 

3 ,994 

j129,124! 

. 73,813 

21,451 $ 35,868 $ 432,973 $ 
62 GPO Annual Report 1998 

-37-

U.S. GOVERNMENT PRINTING OFFICE 

Consolidating Balance Sheet by Fund Type 

As of September 30, 1998 

(Dollars in thousands) 

(Unaudited) 

Revolving Fund General Fund 

Congressional 

Printing Sales of Salaries and Printing Total 

end Binding Publications Expenses and Binding Before 

rations Operations Appropriation Appropriations Eliminations 

LIABILITIES AND EQUITY OF THE 

U.S. GOVERNMENT 

CURRENT LIABILITIES 

Accounts payable and accrued expens es $ 86,413 $ 9,276 $ 1,420 $ - $ 97,109 

Deferred revenue 20,424 23,141 43,565 

Accrued annual leave 11 ,331 11,331 

Total current liabilities 118,168 32,417 1,420 152,005 

OTHER LIABILITIES 

Workers' compensation liability 28.881 28,881 

Total other liabilities 28,881 28,881 

Totaliiabilities 147,049 32,417 1,420 180,886 

Commitments and contingencies (Note 9) 

EQUITY OF THE U.S. GOVERNMENT 

Revolving fund 191,433 4,755 196,188 

Appropriated funds 20,031 35,868 55,899 

Total Equity of the U.S. Government 191 ,433 4,755 20,031 35,868 252,087 Total liabilities and equity of the $ 338,482 $ 37,1 72 $ 21 ,451 s 35,868 s 432,973 U.S. Government 

Elimi

$ 

$ 
GPO Annual Report 1998 63 -38-

U.S. GOVERNMENT PRINTING OFFICE 

Consolidating Schedule of Revenues and Expenses by Fund Ty

For the Year Ended September 30, 1998 

(Dollars in thousands) 

(Unaudited) 

Revolving Fund General Fund 

Congressional 

Printing Sales of Salaries and Printing Total 

and Binding Publications Expenses and Binding Before 

Operations Operations Appropriation Appropriation Eliminations Elimina

REVENUES 

Printing and Binding $ 661 ,117 $ - $ - s - $ 661 ,117 s (10

Sales of Publications - 60,557 - 60,557 

Appropriations - - 30,962 73,185 104,147 

Reimbursements - 5,077 - - 5,077 

Total Revenues 661,117 65,634 30,962 73,185 830,898 (10

EXPENSES 

Printing and reproduction 430,393 380 14,790 73,185 518,748 (10

Personnel compensation and benefits 159,120 29,189 8,427 - 196,736 (

Supplies and materials 38,514 1,411 511 - 40,436 

Rents, communications, and utilities 12,430 14,126 1,347 - 27,903 

Publications sold - 16,806 - - 16,806 Depreciation and amortization 6,586 1,434 346 - 8,366 

Other services 6,169 1,482 4,146 - 11,797 (

Surplus publications - 2,963 - - 2,963 

Travel and transportation 2,509 1,864 1,395 - 5,768 

Total Expenses 655,721 69,655 30,962 73,185 829,523 (10

NET INCOME {LOSS) $ 5,396 $ (4,021) $ - $ - $ 1,375 $ 
64 GPO Annual Report 1998 

-39-

U.S. GOVERNMENT PRINTING OFFICE 

Consolidating Schedule of Cash Flows by Fund Type 

For the Year Ended September 30, 1998 

(Dollars in thousands) 

(Unaudited) 

Revolving Fund General Fund 

congressional 

Printing Sa lea of Salaries and Printing Total 

and Binding Publications Expenses and Binding Before Operations 0 peratlons Appropriation Appropriations Eliminations E lim ln

CASH FLOWS FROM OPERATING ACTIVITIES 

Net Income $ 5,397 $ (4,022) s . $ . $ 1,375 $ 

Adjustments to net Income: 

Depreciation and a mortization 8,366 . 8 ,366 

Depreciation expense funded from 

appropriated capital (444) . (444) 

Gain on disposal of property, plant, 

and equipment (56) . . (56) 

Changes In assets and liabilities: 

(In crease) decrease In assetsAccounts receivable (6,259) 241 214 (3,748) (9,552) 

Inventories 1,452 (702) . 750 

Prepaid expenses (454) . . (454) 

Increase (decrease) In liabilities· 

Accounts payable and accrued expenses 1,118 2,156 (1,355) (7 ,459) (5,540) 

Deferred revenue 15,920 (1,835) 14,085 

Accrued annual leave 61 . 61 

Workers' compensation liability (2,891 I - (2,891 I 

Total adjustments 

Net cash provided by (used In) 

16,813 (140) (1,141) (11,207) 4,325 

o peratlng activities 22,210 (4,1621 (1,141) (11,207) 5,700 

CASH FLOWS FROM INVESTING ACTIVITIES 

Capital e xpenditures (9,320) . 

Proceeds from sale of property, plant, 

. (9,320) 

and equipment 83 83 

Net cash u sed In Investing activities (9,237) - . . j9,237) 

CASH FlOWS FROM FINANCING ACTIVITIES 

Increase In unexpende d appropriations . 

Funds returned to U.S. Treasury from : 

Congressional Printing and Binding Approprlatl 

Salaries and E x pen se s Appropriation 

(1 ,885) (2,5331 (4,418) 

Net cash used In financing activities (1 ,8851 (2,533) (4,418) 

NET INCREASE (DECREASE) IN FUNDS 

WITH U.S. TREASURY 12,973 (4,162) (3,026) (13,740) (7 ,955) 

FUNDS WITH U .S. TREASURY, beginning of year 76,735 30,006 24,303 42,111 173,1 55 

FUNDS WITH U.S. TREASURY, end of year $ 89,708 $ 2 5 ,844 $ 21 ,277 $ 28,371 $ 165,200 $ 
GPO Annual Report 1998 65 -40-

U.S. GOVERNMENT PRINTING OFFICE 

Supplemental Schedule of Appropriated Funds 

For the Years Ended September 30, 1998 and 1997 

(Dollars in thousands) 

(Unaudited) 

Salaries Congressional 

and Printing and 

Expenses Binding 

Appropriation Appropriation 

APPROPRIATIONS, beginning of year (on cash basis) $ 24,305 $ 42,111 $ 

FUNDS PROVIDED· Appropriations 29,077 70,652 

·Financed from Revolving Fund . 3,748 

Total funds available 53 ,3 8 2 116,511 

FUNDS APPLIED 

Obligated appropriations: 

Current year 20,706 60,198 

Prior years 11 ,3 9 8 24 '1 9 3 

Funds returned to U.S. Treasury . 

Total funds applied 32,104 84,391 

APPROPRIATIONS, end of year (on cash basis) 21 ,2 7 8 32,120 ADJUSTMENTS 

Intra-agency accounts receivable 173 3,748 Intra-agency accounts payable (1 ,42 0) . 

APPROPRIATIONS, end of year (on accrual basis) $ 20,031 $ 3 5,8 6 8 $ 

T

G en e 

1998 

66,416 

99,729 

3,748 

169,893 

80,904 

35,591 

116,495 

53,3 9 8 

3,9 21 

(1 ,420

55,899 
66 GPO Annual Report 1998 

-41-

U.S. GOVERNMENT PRINTING OFFICE 

Supplemental Schedule of Balance Sheets for Revolving Fun

As of September 30, 1998 and 1997 

(Dollars in thousands) 

(Unaudited) 

Printing and Binding Sales of Publications Total Revo

Operations Operations 19

1998 1997 1998 1997 Before Eliminations Elimin

ASSETS 

CURRENT ASSETS 

Funds with U.S. Treasury $ 85,959 $ 76,733 $ 25,843 $ 30,006 $ 111,802 $ 

Accounts receivable 164,024 157,766 2,629 2,871 166,653 (

Inventories 14,030 15,483 8,700 7,996 22,730 

Prepaid expenses 656 202 - - 656 

Total current assets 264,669 250,184 37,172 40,873 301,841 (

PROPERTY, PLANT, AND EQUIPMENT 

Land and buildings 18,633 18,633 - - 18,633 

Building improvements 55,166 55,033 - - 55,166 

leasehold improvements 1,603 1,267 - - 1,603 

Plant machinery and equipment 81,397 80,811 . - 81,397 

Office machinery and equipment 19,355 17,296 . - 19,355 Computer software 16,242 12,999 - 16,242 

Furniture and fixtures 3,048 2,623 . - 3,048 

Vehicles 3,243 3,276 . . 3,243 

Capital improvements in process 256 - - 256 

Software development in process 3,994 2,424 . . 3,994 

Less: Accumulated depreciation and 

amortization (129, 124) (121,601) - - (129,124) 

Net property, plant, and equipment 73,813 72,761 . . 73,813 

Total assets s 338,482 $ 322,945 $ 37,172 $ 40,873 $ 375,654 $ (
GPO Annual Report 1998 67 -42-

U.S. GOVERNMENT PRINTING OFFICE 

Supplemental Schedule of Balance Sheets for Revolving Fund 

As of September 30, 1998 and 1997 

(Dollars in thousands) 

(Unaudited) 

Printing and Binding Sales of Publications Total Revo

Operations Operations 19

1998 1997 1998 1997 Before Eliminations Elimin

LIABILITIES AND EQUITY OF THE 

U.S. GOVERNMENT 

CURRENT LIABILITIES 

Accounts payable and accrued expenses $ 86,413 $ 85,297 $ 9,276 $ 7,119 $ 95,689 $ 

Deferred revenue 20,424 4,503 23,141 24,977 43,565 

Accrued annual leave 11,331 11,270 . - 11,331 

Total current liabilities 118,168 101,070 32,417 32,096 150,585 

OTHER LIABILITIES 

Workers' compensation liability 28,881 31,772 - - 28,881 

Total other liabilities 28,881 31 ,772 - - 28,881 

Total liabilities 147,049 132,842 32,417 32,096 179,466 

EQUITY OF THE U.S. GOVERNMENT 

Revolving fund 191,433 190,103 4,755 8,777 196,188 

Appropriated funds 

Total equity of the 

U.S. Government 191,433 190,103 4,755 8,777 196,188 

Total liabilities and equity of the $ 338,482 $ 322,945 $ 37,172 $ 40,873 $ 375,654 $ 

U.S. Government 
68 GPO Annual Report 1998 

-43-

U.S. GOVERNMENT PRINTING OFFICE 

Consolidating Schedule of Revenues and Expenses by Major Pro

FOR THE YEARS ENDED SEPTEMBER 30, 1998 AND 1997 

(Dollars in thousands) 

(Unaudited) 

Printing Information Congressional 

and Binding Dissemination Printing Total GPO 

Of!eratJons Operations and Blndln!! Other Operations Before Eliminations Eliminatio

1998 1997 1998 1997 1998 1997 1998 1997 1998 1997 1998 

REVENUES: 

Printing and binding $644,050 $670,694 $ - s $ - $ s 2,934 s 2,635 $646,984 $673,329 $ (107,3871 $ (

Sales of blank paper 13,711 15,221 - 13,711 15,221 Sales of waste and sera p 422 378 - 422 378 Sales of publications 60,557 67,849 60,557 67,849 - 

Appropriations 30,962 27,896 73,185 82,542 104,147 110,438 (9131 

Reimbursements - 5,077 4,850 - 5,077 4,850 

Total revenues 658,183 686,293 96,596 100,595 73,185 82,542 2,934 2,635 830,898 872,065 (108,3001 (

EXPENSES: 

Printing and reproduction 430,393 445,517 15,170 13,227 73,185 82,542 518,748 541,286 (105, 1601 (Personnel compensation 

and benefit 158,912 168,692 37,616 38,637 - - 208 371 196,736 207,700 (1,7071 

Supplies and mate rials 38,500 39,872 1,922 1,933 - - 14 25 40,436 41,830 (93) 

Rents, communications, 

and utilities 11,756 14,412 15,473 15,438 - - 674 687 27,903 30,537 (2701 

Publications sold - 16,806 18,175 - - 16,806 18,175 - Depreciation and amortlution 5,909 6,236 1,780 1,609 - - 677 631 8,366 8,476 

Other services 6,035 3,788 5,628 4,211 - 134 399 11,797 8,398 (1,070) 

Surplus publications - 2,963 2,509 2,963 2,509 

Travel and transportation 2,509 2,283 3,259 3,302 5,768 5,585 - 

Total expenses 654,014 680,800 100,617 99,041 73,185 82,542 1,707 2,113 829,523 864,496 (108,3001 (

NET INCOME (LOSSI $ 4,169 s 5,493 $ (4,021) s 1,554 $ - $ - $ 1,227 s 522 s 1,375 s 7,569 $ $ 
GPO Annual Report 1998 69 -44-

U.S. GOVERNMENT PRINTING OFFICE 

Supplemental Schedule of Revenues and Expenses for Printing and Bindi

For the Years Ended September 30, 1998 and 1997 

(Dollars in thousands) 

(Unaudited) 

Total In-House Purchased Total 

Plant Printing 

Operations Regional Printi!!!J Percent Percent Percent Percent 

of of of of 

1998 1997 1998 1997 1998 Revenue 1997 Revenue 1998 Revenue 1997 Revenue 1998 

REVENUES 

Printing and binding $175,080 $180,266 $ 1,534 $ 2,171 $176,614 93 $182,437 92 $467,436 100 $488,257 100 $644,05

Sales of blank paper 13,711 15,221 . . 13,711 7 15,221 8 . . 13,71Sales of llllaSte and scrap 422 378 . . 422 0 378 0 . . 42

Total revenues 189,213 195,865 1,534 2,171 190,747 100 198,036 100 467,436 100 488,257 100 658,18

EXPENSES 

Printing and reproduction . . . . . - - - 430,393 93 445,517 92 430,39Personnel 

and benefits 123,187 133,241 1,491 1,595 124,678 65 134,836 68 34,234 7 33,856 7 158,9

Supplies and millerials 36,874 38,297 267 539 37,141 19 38,836 20 1,359 0 1,036 0 38,50

Rents, corrmunications, and 

utilities 6,441 6,234 333 370 6,774 4 6,604 3 4,982 1 7,808 2 11,75

Depreciation and amortization 5,438 5,759 57 107 5,495 3 5,866 3 414 0 370 0 5,90

Other services 4,795 3,029 46 56 4,841 3 3,085 2 1,194 0 703 0 6,03

Travel and tr.ansportation 769 798 10 65 779 0 863 0 1,730 0 1,420 0 2,50

Total expenses 177,504 187,358 2,204 2,732 179,7118 94 190,090 96 474,306 101 490,710 101 654,0

tET INCOME (LOSS) $ 11,709 $ 8,507 $ (870) $ (561) $ 11,039 6 $ 7,946 4 $ (6,870) {1) $ (2,453) (1) $ 4,16
70 GPO Annual Report 1998 

-45-

U.S. GOVERNMENT PRINTING OFFICE 

Supplemental Schedule of Revenues and Expenses for Information Di

For the Years Ended September 30, 1998 and 1997 

(Dollars in thousands) 

(Unaudited) 

Sales of Publications Pr~rams Agent): Distribution Services Salaries and Expenses Pr~rams Tota

Percent Percent Percent Percent Percent Percent 

ot of of of ot of 

1998 Revenue 1997 Reven119 1998 Revenue 1997 Revenue 1998 Revenue 1997 Revenue 1998 

REVENUES 

Sales of publicat ions $ 60,557 100 $ 67,849 100 $ . s . . s . $ $ 60,557 

Approprl1tions . . 30,962 100 27,896 100 30,962 

Reimbursements . 5,077 100 4,850 100 . 5,077 

Total revenues 60,557 100 67,849 100 5,077 100 4,850 100 30,962 100 27,896 100 96,596 

EXPENSES 

Printing and reproduction 309 1 429 1 71 1 144 3 14,790 48 12,654 45 15,17

Personnel compensation and 

benefits 26,309 43 27,516 41 2,880 57 2,491 51 8,427 27 8,630 32 37,61

Supplies and materials 1,277 2 1,303 2 134 3 122 3 511 2 508 2 1,92

Rents, communications, and 

utilities 12,173 20 11,861 16 1,953 39 2,060 42 1,347 4 1,517 5 15,47

Publications sold 16,806 28 18,175 26 . . 16,80

Depreciation and amortizatio 1,276 2 1,109 2 158 3 104 2 346 1 396 1 1,780 

Other servlcn 1,313 2 1,194 2 169 3 122 3 4,146 13 2,895 10 5,62

Surplus publications 2,963 5 2,509 4 2,96

Travel and transportation 1,757 3 1,960 3 107 2 46 1 1,395 5 1,296 5 3,25

Total expenses 84,183 106 66,056 97 5,472 108 5,089 105 30,962 100 27,896 100 100,61

NET (LOSS) INCOME s (3,626) (6) $ 1,793 3 $ (395) (8) s (239) (5) $ s s (4,02
GPO Annual Report 1998 71 

-46-

OFFICE OF THE PUBLIC PR!:-.:TER 

February 8, 1999 

Mr. John Farrell 

KPMGLLP 

2001 M Street, NW 

Washington, DC 20036 

Dear Mr. Farrell: 

United States Government Printing O ffice 

\X·'ashingron, DC 20401 

In connection with your examination of our assertion regarding internal controls of the United 

States Government Printing Office (GPO) as of September 30, 1998, we make the following 

representations: 

1. GPO managers are responsible for ensuring the existence and effective operation of internal 

controls over the day-to-day operations including the operation of a Revolving Fund and 

two separate Congressional appropriation accounts. 

2. Management has evaluated the effectiveness of internal controls for the aforementioned 

entity as of September 30, 1998, as part of the evaluation performed using the guidance of 

Office of Management and Budget Circular No. A-123 (Revised June 1995), Management 

Accountability and Control. Based on that evaluation, management believes that as of 

September 30, 1998, GPO maintained effective internal controls, the objectives of which 

are to provide management with reasonable, but not absolute, assurance of: 

a. Reliable financial reporting. Transactions are properly recorded, processed, and 

summarized to permit the preparation of the financial statements in conformity with 

generally accepted accounting principles, and the safeguarding of assets against loss 

from unauthorized acquisition, use, or disposition. 

b. Compliance with applicable laws and regulations. Transactions are executed in 

accordance with: (a) laws governing the use of budget authority and other laws and 

regulations that could have a direct and material effect on the financial statements, and 

(b) any other laws and regulations or government-wide policies that entity management 

or the Inspectors General have identified as being significant for which compliance can 

be objectively measured and evaluated. 
72 GPO Annual Report 1998 

-47-

Page 2 

There have been no changes subsequent to September 30. 1998, that would significantly affect 

internal controls. 

Sincerely, 

-

~F~~~Lf.~ . . DiMARIO~ Public Printer