ANNUAL R

YEAR 

EPORT 

FISC AL 

2002 
GPO's vision is not merely to look to 

the future but to shape the future of 

Federal information management. 

— Bruce R. James
KEEPING

AMERIC A

INFORMED

Table of Contents

1

2

2002 Highlights 

GPO Access

6

........................... 7

8

8

9

9

10

....................... 10

11

12

- 12

.................... 13

Beyond 2002 

15

15

15

15

st ................... 16

.......................... 24

........................... 25

28

37

.............. 38

...................... 39

40

56

............. 72

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

The Government Printing Office: Keeping America Informed ........ 

Remained One of the Leading Online Sources of Free, 

Official Government Information........................ 

The Transition to Electronic Federal Depository 

Library Program Continued 

Cataloging: Gateway to the E-FDLP .......................... 

Digital Archiving. ...................................... 

Business Development Activities ............................ 

Depository Library Conference ............................. 

Partnerships ......................................... 

Testimony on OMB Printing Proposal 

Analysis Showed Potential Negative Impact of OMB’s 

Printing Policy Proposal ............................. 

GPO Produced Largest Federal Register....................... 

Clean Audit Opinions Received On GPO’s FY 20012002 Finances . 

Appropriations Presentation for FY 2003 

The Transformation Has Begun ............................ 

Organizational Alignment Improvements ................. 

Major Focus Being Placed On Customers................. 

A New Legislative Agenda To Meet New Challenges ........ 

A New GPO Image For The 21 Century 

Financial Year in Review 

Operating Performance Measures 

Financial Performance Measures 

Independent Auditors’ Report ............................. 

Consolidated Balance Sheet............................... 

Consolidated Statements of Revenues and Expenses 

Consolidated Statements of Cash Flows 

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

Consolidating and Supplemental Schedules .................... 

Public Printer’s Assertion Letter on Internal Controls 

ANNUAL REPOR T F I S C A L Y E A R 2002
Public Printer’s 

Message 

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
ANNUAL REPORT FISCAL YEAR 2002

ON NOVEMBER 20, 2002, THE UNITED STATES

Senate confirmed me as the 24th Public Printer of the United

States. My printing background has familiarized me with the

Government Printing Office and its mission. GPO has had a

proud history; one built on innovation, craftsmanship, scale,

flexibility and a singular dedication to meeting the printing

needs of our Government and the information needs of our

people. But the past is not necessarily prologue to the future.

Printing, once the world’s only mass communications

medium, has seen its sun eclipsed first by radio, then

television, and now the Internet.

We have heard the coming of the Internet compared to the

coming of the printing press. Many have wondered whether

the Internet will eventually replace printing, as we know it.

Perhaps, but I do not see it happening in our lifetime and for

many years thereafter. Instead, we have a period in front of us

where we will need to sort out what continues to belong in

print and what best belongs in information retrieval systems

that allow users to define their own information needs, then

search against a huge database of information to retrieve

only what is needed.

And therein lies the challenge for the GPO. Like every other

manufacturing business in America, the GPO is going to

have to re-engineer itself if it is to remain relevant and viable

for the future. It must step back and take a new look at the

changing and emerging information needs of its customers

and develop a deeper understanding of its true strengths so

that it can determine how best to build a new business

model. Then it must convince Congress and its customers to

support its future plan. As Public Printer, I am leading this

effort. GPO’s plan will present a new vision, will set out

specific and measurable short- and long- term objectives and

goals, and will have budget and timetable details. 

I look forward to this unique opportunity to reshape the

GPO for its 21st century mission. It is my honor to lead the

GPO as we enter the next information era. My goal is to

head a highly motivated, quick responding, technologically

innovative, world-class organization that will make us 

all proud.

This report characterizes the results of fiscal year 2002,

which was completed before I took office. As the financial

tables show, GPO sustained an operational loss of over $15

million, continuing a pattern begun in the past decade. My

objective is to end that pattern in fiscal year 2004. During

fiscal year 2002, GPO also faced a strong challenge in the

form of an alternative printing policy proposal advanced by

the Office of Management and Budget (OMB). I agree that

there is a lot to be done to improve the way Federal printing

and information dissemination is carried out by the GPO

today. Agencies have a right to expect excellent service from

us and they will get it.

To fully carry out my plans, I am relying on the completion of

a Government-wide study of printing and information policy

currently being conducted by the U.S. General Accounting

Office under orders from Congress, with a due date of

December 2003. That study will provide us with an

independent, factual basis for developing a new business

model for the GPO in cooperation with OMB and our other

stakeholders, a model that will serve as the basis for revising

and reforming Title 44. Following its completion, I want to

work with OMB so that at the end of the day, we implement

a vision for the future of Federal printing and information

policy that is cooperative and in the best interests of all

concerned. At the same time, however, until all the facts are

fully known about the current system of printing and

information dissemination and all the stakeholders have had

an opportunity to contribute their input, I believe that efforts

to dismantle it will have negative consequences, both

foreseen and unintended, on the cost of Federal printing and

on public access to Government information. 

As I have stated on many occasions since my nomination, it is

a high honor and a humbling experience to be selected by the

President to head a major Government agency, particularly

one as venerable and important as the Government Printing

Office. I look forward to working with our more than 3,000

talented and diverse employees to ensure that the GPO

remains flexible, forward-thinking, and at the forefront of

print and information processing technology.

Bruce R. James

Public Printer

June 2003

1
Keeping

America Informed 

informed. GPO ensures the 

maintaining, preserving and disseminating 

authenticates, produces, and disseminates 

information from Congress and other 

access directly and through the 

Program.

GPO keeps America 

public’s right to access Government 

information by collecting, organizing, 

it. For 140 years, GPO has produced and 

distributed Federal Government information 

products. Currently, GPO captures, stores, 

Federal publishers for the public to 

Federal Depository Library 

2

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
GPO has begun a transformation process into an 

information service for the 21st century—creating, 

disseminating, and preserving Federal information. GPO is 

engaged with customers and stakeholders to identify their 

needs and concerns and to determine GPO’s strengths, 

weaknesses, and opportunities. The demands of Congress, 

the agencies, and the American public for Government 

information will guide GPO in identifying the optimal 

technologies to employ to meet those requirements. 

GAO is presently conducting a congressionally mandated 

study of Federal Government information dissemination. 

GAO is also conducting a management audit of GPO. These 

studies will provide the basis for our fiscal year 2004

strategic planning effort to effect needed changes. 

Over the next several years, the transformation of GPO 

will require investments in its workforce and technology 

infrastructure. The results will be improved effectiveness 

and efficiency of GPO and increased value to the 

customers we serve. 

Role in Government 

The Public Printer, who serves as GPO’s chief executive 

officer, is nominated by the President and confirmed by the 

Senate. GPO operates under the authority of the public 

printing and documents chapters of Title 44 of the 

U.S. Code. 

Created initially to satisfy the printing needs of Congress, 

GPO today is the focal point for printing and information 

dissemination for the entire Federal community. In addition 

to Congress and the White House, approximately 130 

Federal departments and agencies rely on GPO’s services. 

Congressional publications, Federal regulations and reports, 

census and tax forms, and U.S. Passports are among the 

documents produced by or through GPO. At one time, 

GPO’s mission was accomplished through the production 

and procurement of conventional ink-on-paper printing. 

Today, after more than a generation of experience with 

electronic printing systems, GPO is providing Government 

information in a wide range of formats, including print, 

microfiche, CD-ROM, and online through GPO Access 

(http://www.gpo.gov/gpoaccess). 

Facilities and Personnel 

Carrying out GPO’s mission today is a skilled and dedicated 

workforce of more than 3,000 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 is a storage and distribution facility. 

GPO operates a printing plant in Denver, a technical 

documentation facility in Atlantic City, NJ, a publication 

distribution facility in Pueblo, CO, as well as regional and 

satellite procurement offices and bookstores throughout 

the country. 

Funding

Unlike most Federal agencies, GPO operates much like a 

business—it is reimbursed by its customers for the cost of 

work performed. GPO also receives two appropriations, one 

to pay for the cost of congressional printing, and the other to 

fund the cataloging, indexing, distribution, and online access 

to Government documents, through the Federal Depository 

Library Program (FDLP) and as required by law. These funds 

are provided through the annual legislative branch 

appropriations bill, and together they comprise about 4

percent of total legislative branch appropriations. In fiscal 

year 2002, GPO’s revenues totaled $701 million. An 

independent auditor audits GPO’s finances every year, and 

GPO has been receiving an unqualified opinion every year. 

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 2,260 private sector firms in all 

50 States. It is one of the Government’s most successful 

procurement programs, assuring the most cost-effective use 

of the taxpayers’ printing dollar. 

3

ANNUAL REPOR T F I S C A L Y E A R 2002 
In-Plant Operations and Information Technology

GPO’s in-plant facility provides electronic information 

systems and production technologies to 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 in time to support Congress’ legislative 

needs. Also produced in-plant are the Federal Register, the 

Code of Federal Regulations, and other key Government 

documents, such as the annual U.S. Budget. In fiscal year 

2002 GPO’s in-plant operations produced more than 8.7

million U.S. Passports for the State Department and nearly 

249 million postal cards for the U.S. Postal Service. With 

few exceptions, all paper used by GPO and its contractors 

meet Federal recycled paper requirements and all GPO 

printing inks utilize vegetable oil. 

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 databases of 

Government information products from which publications 

in both print and electronic formats are produced. 

Computer-to-plate technology has further updated GPO’s 

capabilities. GPO has also been a leading producer of CDROMs of Government information for more than a decade. 

GPO uses electronic information technology to increase 

efficiency in its print production processes, facilitate ecommerce in its printing procurement and documents sales 

programs, and expand public access to Government 

information via the Internet. 

Superintendent of Documents 

Through its Superintendent of Documents’ programs, GPO 

disseminates the largest volume of U.S. Government 

publications and information in the world. More than 30.5

million printed publications were distributed in fiscal year 

2002 and approximately 372 million Government 

documents were downloaded from GPO Access at a cost 

of less than one penny per retrieval. GPO Access is 

available at www.gpo.gov/gpoaccess. 

To keep America informed, GPO also offers Government 

publications for sale to the public. Approximately 9,000 

titles are available for sale at any given time, including books, 

CD-ROMs, and other electronic formats. This provides the 

public with a wide variety of low cost consumer-oriented 

publications as well as Congressional documents, 

regulatory materials, research reports, reference books and 

guidebooks for National Parks. Documents can also be 

ordered through GPO’s secure Online Bookstore site at 

http://bookstore.gpo.gov. Publications are also sold by 

mail, telephone, fax, and through bookstores located 

around the country. Free and low-cost publications are 

distributed through the Federal Citizen Information 

Center in Pueblo, CO. 

The Federal Depository Library Program (FDLP) is the 

public’s primary source of free access to the published 

information of the Federal Government, and its enabling 

legislation has been called “America’s first freedom of 

information act.” More than 1,200 Federal depository 

libraries nationwide provide free public access to 

Government information in both print and electronic 

formats. Federal depository libraries are designated by 

Members of Congress or by law. Many are college, 

university, and academic law libraries, making the FDLP a 

key component of the Nation’s education system. In fiscal 

year 2002, GPO distributed 5 million copies of over 

14,000 tangible products in print, microform, and CDROM formats to depository libraries. Every depository 

library also has access to the vast range of information made 

available online via GPO Access. 

Superintendent of Documents’ programs catalog and index 

Government information, distribute publications as required 

by law, and provide reimbursable distribution services for 

other Federal agencies. Under the International Exchange 

Program, which is administered by the Library of Congress, 

GPO distributes U.S. Government publications to nearly 

70 nations. 

GPO Access 

In this age of pioneering advancements in information 

technology, the public requires immediate access to official 

Federal Government information to stay up-to-date with 

regulations, laws, and consumer information materials that 

affect their personal and professional lives. To meet this 

need, GPO Access makes online Government information 

products available to Federal depository libraries and the 

public with the goal of widespread and equitable 

information dissemination. 

4

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
is a leading 

2,800 

8

including the , the United States 

Code

, the 

145,

92,000 additional 

GPO Access. Since 1994, GPO

Access 1.6

31

GPO Access 

GPO Access is designed, 

GPO Access via e-

, 

GPO Access 

service, GPO Access 

1

GPO Access

online source of free, official 

Government information. Its 

publicly available resources, covering all 

three branches of the Federal Government, 

have grown to encompass more than 

separate databases through more than 0 applications 

Congressional Record

, GAO Reports, Congressional Bills and Reports, Public

Laws Federal Register, the Code of Federal Regulations, 

and many more. In total, more than 000 titles are 

available on GPO servers, and more than 

titles are linked from 

retrievals have exceeded billion, and it is currently 

averaging million retrievals each month. 

In addition to this, hosts 20 Federal Web 

sites including the Web site for the Supreme Court of the 

United States. In accordance with GPO’s goal of timely 

developed, and implemented for easy 

access to, and use of, free online Federal 

information products and services. GPO 

recognizes and accommodates the various 

special needs and technological capabilities of the 

public. The GPO Access User Support Team provides 

immediate assistance to customers on 

mail, toll-free phone, and fax. Finally Ben’s Guide to U.S. 

Government for Kids is an educational component of 

that introduces children and adults alike to 

the basics of Government. 

In recognition of the growth and accomplishments of the 

has received numerous awards and 

recognitions, such as the E-Gov 200 “Trailblazer” award. 

More than 

1,200 Federal depository 

libraries nationwide provide 

free public access to 

Government information in 

both print and electronic 

formats. 

delivery of official government information, most electronic 

documents appear on the day of publication, exactly as they 

appear in print, and are the official published version. GPO 

maintains permanent public access to Government 

information products residing on GPO Access, as well as 

through partnership agreements with depository libraries 

and other institutions. 

5

ANNUAL REPOR T F I S C A L Y E A R 2002 
2002 Highlights 

2, GPO

Access,

2,8

8

than 145,

92, GPO

Access

, GPO Access 31

2,

30,

7,000 

16

GPO Access 

Remained One of 

Sources of Free, 

Information

In fiscal year 200 the resources available through 

covering all three branches of the Federal 

Government, grew to encompass more than 00 separate 

databases through more than 0 applications. In total, more 

000 titles were made available on GPO servers, 

and more than 000 titles were linked from 

. As a measure of GPO’s success in disseminating 

electronic Government information, GPO monitored the 

number of document retrievals by users and by the end 

of the year averaged nearly 

million documents downloaded per month. 

During fiscal year 200 GPO introduced 

GPOLISTSERV, an opt-in service that 

sends email notifications of various new 

and updated products and services 

provided by GPO and its agency partners. 

More than 000 U.S. Government 

Online Bookstore customers are notified by 

the New Titles By Topic Email Alert Service 

when new publications in various topical areas 

such as military history, health care, and business 

become available for purchase. In response to the Federal 

depository library community’s request, the FDLP 

Electronic Only list provides libraries with a notice of 

publications that are no longer distributed in paper format, 

but are available for sale from GPO. More than 

users have the Federal Register table of contents delivered to 

their email inbox everyday. In addition, partner agencies such 

as the U.S. Merit Systems Protection Board, are able to use 

the GPOLISTSERV on a reimbursable basis to deliver 

content to their users. Currently there are different 

GPOLISTSERV services with plans to expand this list 

which will further our commitment to disseminate content 

to users. 

During this fiscal period, Federal Business Opportunities 

(FedBizOpps) was designated as the single point of universal 

electronic public access on the Internet for Governmentthe Leading Online 

Official Government 

6

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
wide Federal procurement opportunities that exceed 

$25,000. Therefore, CBDNet ceased to accept notices as 

of midnight, January 1, 2002. The FDLP Electronic 

Collection now makes the old CBDNet available as an 

archival source of prior procurement notices. In response to 

the continued need to ensure permanent public access to 

the Government information contained on GPO 

servers, plans towards establishing a geographically 

separate mirror site and backup facility for GPO

Access in Pueblo, Colorado, were developed. 

Once completed, GPO will steadily add to the 

resources and data at this facility until it is a 

complete mirror site for GPO Access. 

One notable measure of the recognition and 

appreciation of the GPO Access service is the 

reception of awards and recognitions. In recognition 

of the growth and accomplishments of the service, 

GPO Access received numerous awards and 

recognitions in fiscal year 2002. These included various 

articles of praise from noted sources, such as the National 

Coordinating Committee (NCC), Washington Update, and 

Personal Computer (PC) World Magazine. 

Of the metrics available for measuring Web site usage, 

GPO uses document retrievals because they represent 

units of actual content delivered to users. Document 

retrievals indicate the number of downloads of both 

documents within databases and files outside of databases 

that have been identified as containing Government 

information content. 

The more than 33 million retrievals in March 2002 

propelled total usage of GPO Access to over 1.5 billion 

documents retrieved since the service premiered in 1994. 

per 

retrieval. In 

turn, the average 

number of monthly 

retrievals from GPO

Access measures over 1.5

terabytes in size and is equivalent to 

over 759 million typewritten pages. 

1 The Transition to Electronic Federal 

36

GPO Access 17 million 

1999

950,

2,

GPO Access 31 million and the 

49

GPO Access 

some 24.5

1996

1 6

, behind the 

October 200 produced the highest total retrievals to date 

with more than million documents downloaded. Ben’s 

Guide to U.S. Government for Kids, the educational 

component of , has received almost 

retrievals since its debut in December . Its peak was in 

March 2002 with over 000 retrievals. 

For fiscal year 200 the average number of monthly 

retrievals from was 

average size of these documents was about KB. With 

2KB equaling roughly one typewritten page, the average 

size of a document retrieved from equates to 

typewritten pages and costs less than one penny 

Depository Library Program Continued 

The transition to a predominantly electronic FDLP, begun in 

at the direction of Congress, continued throughout 

fiscal year 2002. The mix of product formats distributed to 

libraries or made directly accessible to the public stabilized at 

the fiscal year 200 level, with about 0 percent of new 

FDLP titles being available online. However

scenes, GPO’s Library Programs Service (LPS) made 

significant progress in revamping its workforce to deal with 

the challenges of electronic information and moving toward 

the acquisition of an Integrated Library System (ILS). 

7

ANNUAL REPOR T F I S C A L Y E A R 2002 
Long recognized as the national authority for cataloging 

Government publications, LPS is gaining recognition as a 

center of excellence in other aspects of managing an 

electronic collection for permanent public access. LPS’ 

management of the FDLP Electronic Collection was notable 

in fiscal year 2002 for expanded use of the GPO archive 

servers and participation in the beta test phase of the OCLC 

Web Document Digital Archive initiative. 

Cataloging: Gateway to the E-FDLP 

With the advent of a more electronic FDLP, the LPS 

cataloging staff has expanded the range of its cataloging and 

locator services efforts, and moved beyond the traditional 

Monthly Catalog as its principal output. Cataloging now 

functions as a gateway for bringing online titles into the 

FDLP Electronic Collection, and then for 

disseminating them under the program’s 

auspices. The Cataloging and Indexing 

Program provides access to online, as 

well as tangible, resources through 

bibliographic control. 

LPS catalogers discover, 

evaluate, select, and 

archive most online 

resources, in 

addition to 

creating 

, 

2, nearly 

14, 15,400 

GPO Access 

described in LPS’ 1998 Managing the FDLP 

permanent public access: 

1. 

2. 

3. 

bibliographic records that enable the public to search for

identify, and obtain access to all program publications. 

Locating and describing online resources for the FDLP has 

significantly broadened the range of decision-making 

required of the cataloging staff. Catalogers now play a critical 

role in enhancing current and permanent public access to the 

FDLP Electronic Collection. In fiscal year 200

000 titles were catalogued, compared to about 

the previous year. The loss of experienced cataloging staff in 

the past 2 years, coupled with the increasing complexity of 

the work, had a marked impact on cataloging production. 

Digital Archiving 

GPO guarantees the public will have permanent access to 

the online titles in the FDLP, in similar fashion to the 

assurance that physical products in the FDLP will be 

permanently accessible at the regional depository libraries. 

Permanent public access for online electronic files entails an 

organizational commitment to preserving and maintaining 

the data, beginning with capturing the noncontent, and including refreshing files to prevent 

deterioration of storage media, migrating files to newer file 

formats to prevent technological obsolescence, managing 

backup and mirror sites, and other ongoing activities. 

GPO’s responsibilities for permanent public access are 

report, 

Electronic Collection: A Policy and Planning Document 

<http://www.access.gpo.gov/su_docs/fdlp/pubs/ecplan.h 

tml>. LPS has pursued three approaches to provide 

Digital archiving using partner sites, through 

contractual partnership agreements with 

depository libraries and/or publishing agencies. 

Digital archiving on GPO servers. 

Developing a processing “tool kit” of software for 

archiving digital objects, and an off-site archival 

storage capability with the Online Computer 

Library Center, Inc. (OCLC). 

Presently all three approaches are underway. LPS’ own archive 

of electronic publications provides a first level of security for 

agency publications that are primarily textual or images of 

text, and which have no tangible counterpart in the FDLP. 

8

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
Information about the operation of the FDLP/EC Archive 

can be found at <www.gpo.gov/ppa/resources.html>. 

LPS staff routinely downloads copies of online titles for 

which there are no analogous print versions in the FDLP. 

These files are eventually stored on GPO’s archive server, as 

a security measure. Their active use begins only when the 

original agency version is no longer available. As of August, 

there are approximately 4,750 titles stored in the archive 

server, with 77 archived titles being served up to users. 

GPO and OCLC, Inc. have completed the first phases of 

testing of a system to locate, identify, process, describe, and 

archive electronic publications. The Web Document 

Digital Archive Pilot Project includes several other partners, 

including the state libraries of Connecticut, Michigan, 

Arizona, and Ohio, and the University of Edinburgh in 

Scotland. The system incorporates a mix of new and 

existing solutions in an effort to refine and integrate LPS 

workflow and routines for processing and storing e-titles 

for the long term. 

GPO is a full partner in this project, and staff has worked 

closely with OCLC, providing input in the development 

process. LPS’ Director and Electronic Collection Manager 

ROMs that were brought into the program included: (1) 

Federal Tax Products, (2) United States Code: Containing the 

General and Permanent Laws of the United States in Force 

on January 23, 2000, (3) Annual Report on International 

Religious Freedom, (4) Occupational Outlook Handbook, 

and (5) NIOSH Pocket Guide to Chemical Hazards. 

In fiscal year 2002, GPO worked closely with General 

Services Administration to publish an audio eBook version 

of the Federal Architecture and Infrastructure Committee of 

the CIO Council publication, “Extending Digital Dividends: 

Public Goods and Services that Work for All.” The audio 

eBook on CD-ROM accompanied the print publication, and 

was the first eBook available for sale through the 

Superintendent of Documents as well as distributed through 

the FDLP. In addition to the aforementioned business 

development activities, GPO worked with other Federal 

agencies with Web site development and hosting. Hosted 

Federal Web sites added to GPO Access in fiscal year 

2002 included the U.S. Capitol Police and the Millennial 

Housing Commission. 

Depository Library Conference

Joint Committee on Printing Chairman Mark Dayton 

Business Development Activities 

4

open the 11

1-23, 2002,

44

3

9

were instrumental in conceptualizing this project, 

convincing OCLC of the value and importance of digital 

archiving, and in prototyping the features and the user 

interface. The resulting product, while initially a reflection of 

GPO’s high-level requirements for an archiving system, is 

making a significant contribution to the ability of libraries 

worldwide to manage and expand access to digital resources. 

As an outgrowth of the digital archive project, GPO is a 

charter member of the OCLC Digital and Preservation 

Cooperative, which advances research and development of 

digital preservation/archiving solutions for libraries worldwide. 

GPO’s business development work continued to increase in 

fiscal year 2002 as Superintendent of Documents’ staff 

worked closely with the Federal publishing community. The 

staff assisted agencies both with Web site development and 

hosting, as well as with CD-ROM services. In addition to 

assisting agencies with defining their electronic 

dissemination requirements, they also worked in conjunction 

with the agencies to improve the marketing, sales, and 

dissemination of their products. A sampling of the CDaddressed the audience of more than 00 Federal 

depository librarians and Federal agency representatives to 

th Annual Federal Depository Library 

Conference, the Nation’s premier event for Government 

information librarians. Sponsored by GPO, the conference 

was held October 2 in Arlington, VA. 

Chairman Dayton spoke about the OMB memorandum that 

sought to authorize printing outside of the GPO. He said 

Congress had placed language that prohibited OMB from 

promulgating any rule counter to Title in the four 

Continuing Resolutions that allowed the Government to 

temporarily operate without signed appropriations bills. 

Remarking on the fact that virtually no other qualifying 

language was incorporated into the resolutions, he said the 

language “is very unusual and shows the consensus of 

Democrats and Republicans that the law is the law.” 

Other highlights of the -day conference included 

discussions on electronic reference, genealogy resources in 

depository libraries, development of electronic competencies 

standards, Government sites for kids, and partnerships 

between academic and public libraries to improve service and 

ANNUAL REPOR T F I S C A L Y E A R 2002 
Partnerships

, 

2,

510,16

2,

10, 2002,

7, “Printing and 

,” 

1987 and 1994

16,000 

in 2003

1 0

public access to Federal information. The Census Bureau, 

Patent & Trademark Office, Centers for Disease Control, and 

Consumer Product Safety Commission are just a few of the 

many agencies that presented updates on their public 

information activities and products. 

A guiding principle of LPS’ transition efforts has been that a 

system of shared responsibility for building capacity, storing

disseminating, and preserving Government information will 

produce the greatest benefit in return for resources invested. 

The goal of establishing partnerships with agencies, 

depository libraries, and other organizations builds on the 

successful model of the FDLP sharing responsibility for 

access and preservation. 

Partnerships have taken various forms. Six libraries provide 

services or tools for locating Government information or 

managing depository library collections. In fiscal year 200

responsibility for one of GPO’s original Pathway locators, 

Browse Topics, shifted to Oklahoma State University. 

Nine partners manage content with specific permanent 

public access safeguards contractually defined. Among these 

are depository libraries including: the University of Illinois at 

Chicago, which hosts Department of State material; Indiana 

University, which hosts an online server of publications 

previously distributed in the FDLP on unstable floppy disk 

media, and the University of North Texas, which houses the 

Cybercemetery, a site which collects and preserves the Web 

sites of Government agencies and commissions that have 

ceased operation. 

In the past year, the Cybercemetery has been averaging 

0 hits per month. Several Government agencies, 

including the National Renewable Energy Laboratory and 

the National Library of Medicine, maintain agreements 

through which GPO is assured that Web content will be 

maintained on agency servers permanently, thus relieving 

GPO of the burden of capturing and archiving their content. 

In late 200 a content partnership between the U.S. 

Census Bureau, GPO, and the Case Western Reserve 

University Libraries (CWRU) was begun. CWRU will 

operate a site specifically geared to depository libraries 

offering the 2000 Census Summary Files for download by 

File Transfer Protocol (ftp). 

Testimony on OMB Printing Proposal 

GPO appeared July at a hearing of the Joint 

Committee on Printing (JCP) that had been called to review 

the OMB Memorandum M-02-0

Duplicating Through the Government Printing Office

that instructed the heads of executive branch departments 

and agencies to produce or procure their printing work 

wherever they wish, without regard to the law requiring 

those agencies to send printing work to GPO. The Public 

Printer provided extensive testimony on the weaknesses in 

the proposal, noting that the OMB memorandum echoed 

earlier unsuccessful efforts in to transfer 

printing authority to executive branch agencies. Congress 

did not support the change either time for fear of increased 

costs in Federal printing, lost contracting opportunities by 

small businesses in the printing industry, and reduced public 

access to Government information. 

The Public Printer, in his current testimony, noted the savings 

that are achieved annually by GPO’s Printing Procurement 

Program, working in partnership with nearly 

private sector printers, the majority of whom are small 

businesses. He further discussed the potential impact on the 

Federal Depository Library Program, observing, “there is no 

way to escape the conclusion that OMB’s policy will 

seriously impair public access to Government information.” 

He said, although OMB would require agencies to continue 

providing publications for depository distribution, 

compliance with this requirement would be low. 

In response to the latest challenge, the Senate Appropriations 

Committee has directed that the U.S. General Accounting 

Office (GAO) conduct a comprehensive and critical 

assessment of printing, publishing, copying, and 

disseminating information within the Federal Government 

. This assessment is intended to provide the 

Congress and the new Public Printer with useful information 

that will be needed to formulate a long-term strategic plan 

for the GPO and to develop effective, efficient, and 

economical means for printing and disseminating Federal 

Government information. The Committee has requested the 

GAO to place special emphasis on GPO’s congressional 

printing and binding services, the Federal Depository Library 

Program, and contracting out executive branch printing. 

Further, the assessment should examine Federal agencies’ 

current printing needs and requirements and GAO’s 

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
assessment of the costs and benefits of using GPO for 

printing needs; the extent to which agencies bypass the 

requirement to use GPO without appropriate waivers; an 

inventory of agencies’ large-scale printing/copying 

equipment; the appropriateness of GPO charges to agencies; 

and GPO overhead costs. GAO should also examine the 

GPO’s bookstore program; the purpose and utility of the 

Federal Depository Loan Program; and use of the Internet for 

ensuring that Federal Government information and 

publications are widely available to the public. 

In addition, GAO’s report should also include strategic 

options for GPO to enhance the efficiency, economy, and 

effectiveness of printing and disseminating Federal 

Government information to the public. The Committee is 

seeking recommendations concerning how the international 

exchange program and the Library’s collections will be 

ensured full receipt of executive branch documents should 

there be a change to the current system. In conducting this 

study, GAO should work closely with the Public Printer, the 

Superintendent of Documents, and the Librarian of 

Congress. GAO shall report its findings and 

recommendations no later than December 1, 2003, so that 

the Committee may fully consider GAO’s findings and 

recommendations in deliberating the fiscal year 2005

appropriations for the Legislative Branch. 

Analysis Showed Potential Negative Impact 

of OMB’s Printing Policy Proposal 

At the request of the Senate Subcommittee on 

Legislative Branch Appropriations, GPO prepared an 

analysis of the impact that OMB’s proposal would 

have on GPO’s operations and Federal printing 

and information dissemination in general. 

Title 44 of the United States Code 

generally requires all executive branch 

agencies to obtain printing through 

GPO. The OMB memorandum would 

transfer printing authority to 

executive branch agencies. GPO’s 

analysis found that the OMB 

policy change would raise 

Government printing costs 

significantly, jeopardize the 

ability of small businesses to compete for Government 

printing contracts, and reduce public access to Government 

information. OMB claimed savings between $50 million 

and $70 million would be realized annually by permitting 

agencies to perform or procure their own printing. 

GPO took a different position. If all executive branch 

printing were to be removed from GPO, the analysis showed 

that the cost to the Government could potentially increase 

over current levels by a range of $231.5 million to $335.2 

million in the first year, and from $152.8 million to $256.5

million annually thereafter. In addition, if agencies were to 

comply with OMB’s requirement to provide copies of their 

publications to the Superintendent of Documents for 

distribution to depository libraries, there would be a net 

transfer of about $4 million in depository printing costs 

from the legislative branch to the executive branch. 

GPO’s analysis showed that, in addition to increased printing 

costs, the OMB memorandum could also lead to a number of 

non-quantifiable cost impacts on Government printing, 

such as loss of the capability to enforce Federal laws 

and regulations requiring the use of recycled and 

permanent papers and vegetable oil-based printing 

inks. There are also likely to be negative economic 

impacts on the private sector printing industry, 

especially small businesses including small 

disadvantaged businesses that currently handle 

more than 70 percent of the printing orders 

procured by GPO each year. 

Finally, there could be serious adverse 

impacts on the public’s ability to 

access Government information 

through Federal depository 

libraries if executive branch 

agencies failed to provide 

copies of their 

publications for 

depository 

distribution, as 

previous studies 

have shown. 

1 1

ANNUAL REPOR T F I S C A L Y E A R 2002 
GPO Produced Largest Federal Register 

The Federal Register issued for Friday, May 3, 2002, was 

the largest single issue of that publication since its origin in 

1936. Published by the National Archives and Records 

Administration, the Federal Register is issued every 

business day. The publication provides the official public 

notice of proposed and final rules issued by the departments 

and agencies of the U.S. Government, and includes 

information about opportunities for public comments 

relative to Federal rulemaking and other matters of public 

interest. Federal departments and agencies are required to 

publish information about new regulations, and changes to 

existing regulation, in this publication. 

The 12-volume, 20-pound May 3 issue owes its unusual 

bulk to the inclusion of the public comments received by 

the Department of Justice on the proposed United States 

v. Microsoft Corporation settlement. Eleven 

volumes consist of those public 

comments, most 

transmitted to the U.S. Department of Justice by e-mail. As 

required by the Department of Justice, the materials were 

published exactly as they were received. The 12th volume 

(actually the first in the set) consists of the regular Federal

Register material for the day. 

Manuscript was provided to GPO in both paper and 

electronic formats on March 28. The paper manuscript 

consisted of 11 cardboard cartons of typescript. The 

electronic format manuscript was tagged and converted to 

drive GPO’s typesetting system, and the 43,394 galley 

proof pages that it produced were proofread against the 

paper manuscript to assure accuracy. When made up into 

pages, the job required 6,654 of the Federal Register’s 3-

column pages, or 11 books of 512 to 640 pages each. 

The regular material for May 3 required 184 pages, 

producing a total page count of 6,838 for the day’s issue. 

In addition to the print edition, GPO provided an electronic 

edition on its Web site. 

Clean Audit Opinions Received 

on GPO’s Fiscal Year 2001-2002 Finances 

GPO received two unqualified opinions from the 

comprehensive and independent audits of its financial 

operations by the nationally recognized accounting firm 

KPMG LLP for the 2 years presented in this report. 

KPMG conducted thorough audits of GPO’s 

financial statements for fiscal year 

2001 and 2002, concluding that 

the statements “are presented fairly, in 

all material respects, in conformity 

with accounting principles generally 

accepted in the United States of 

America.” An unqualified opinion is 

the highest level of assurance that an 

audit firm can give on an 

organization’s financial statements. 

The audits “noted no instances of 

material noncompliance with laws and 

regulations we tested.” 

KPMG audits of GPO, over the recent past, 

followed a sweeping management audit of 

GPO by the internationally recognized firm of 

Booz-Allen & Hamilton, Inc., in 1998. In 

addition to validating strong customer support for 

1 2

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
GPO’s operations in Congress, Federal agencies, and the 

public, Booz-Allen concluded, “the financial management 

history at GPO demonstrates that the agency has had 

considerable experience as a business-oriented operation.” 

Booz-Allen also said “GPO has been a leader in providing 

Congress accrual-based accounting and financial statements.” 

Appropriations Presentation for Fiscal Year 2003 

GPO presented its fiscal year 2003 appropriations request 

to the Senate in May 2002, and to the House of 

Representatives in April. The Public Printer requested a total 

of $129.3 million, of which $95.2 million was for 

Congressional Printing and Binding and $34.1 million for 

Salaries and Expenses of the Superintendent of Documents. 

The request represented an increase of $14.7 million over 

the fiscal year 2002 level of funding. The increase included 

$6.9 million to cover the cost of post-retirement benefits for 

employees covered by the two appropriations, in compliance 

with an Office of Management and Budget (OMB) 

directive. It also included approximately $5.9 million for 

Congressional printing to fund a fiscal year 2001

The Congressional Printing and Binding Appropriation 

covers the costs of producing the Congressional Record, 

bills, reports, hearings, documents, and related legislative 

products. Each year, a substantial volume of this work is 

requisitioned from GPO. This appropriation also covers the 

cost of building Congressional information databases for 

dissemination via GPO Access. A noteworthy component 

of the Superintendent of Documents’ request was a plan to 

commit approximately $2.6 million to the replacement of 

obsolete formats, servers, and other equipment, and for 

improvements to enhance online services provided through 

GPO Access. 

The majority of the Superintendent of Documents’ 

appropriation is for the depository libraries, under which 

Government publications are distributed in print, microfiche, 

or electronic formats to approximately 1,300 libraries 

nationwide for the free use of the public. It also funds the 

cataloging and indexing of Government publications, the 

distribution of Government publications as required by law, 

and the distribution of U.S. Government publications to 

foreign libraries, which in turn agree to provide copies of 

$1.9

7,

“Printing and Duplicating 

Printing Office 3,

2002,

,

1 3

The 12-volume, 

20-pound May 3 issue 

owes its unusual bulk to 

the inclusion of the public 

comments received by the 

Department of Justice on the 

Microsoft Corporation 

settlement.

shortfall in that appropriation. 

Notwithstanding these amounts, GPO’s 

request represented an increase of only 

million, less than 2 percent 

over the amount approved for 

fiscal year 2002. 

During the hearing, the Public 

Printer was questioned about 

the impact of the OMB 

Memorandum (M-02-0

Through the Government 

”), dated May 

concerning the procurement of 

printing and duplicating through GPO. The 

Public Printer noted that any policy change 

would have to be processed as a revision to the Federal 

Acquisition Regulation affecting the executive branch, and 

that there would be no immediate impact. If the change were 

made, however there would be many negative results, 

including an impairment of public access to Government 

documents through Federal depository libraries. 

their official publications to the Library of 

Congress. In addition, this appropriation 

provides the majority of funding for 

GPO Access. 

proposed United States v. 

ANNUAL REPOR T F I S C A L Y E A R 2002 
Beyond2002 

GPO has a proud history, one built on innovation, 

craftsmanship, scale, flexibility, and a singular dedication to 

meeting the printing needs of the Federal Government and 

the information needs of the American people. GPO’s 

middle name—a name we are going to change—gets in the 

way of our true mission, which is keeping America

informed by distributing the official information 

products of the Government, thereby sustaining one of 

the keystones of our 200-year old experiment in 

freedom: an enlightened public. The nature of what 

GPO does, printing—once the world’s only mass 

communications medium—has been eclipsed by 

revolutionary changes in electronic information 

technologies, principally the Internet. Where 

once printing predominated as the means of 

communication between the Government and 

the public, new and ever-evolving strategies of 

communications are not only possible but have 

become mainstream practices, changing how 

America is kept informed. GPO is undergoing 

a transformation that will allow a smooth 

transition to the new millennium. 

1 4

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
3 million—just 1.5 5 times 

1

Major Focus Being Placed On Customers 

,

5

GPO has 

established an Office 

of Innovation and New 

information on cutting 

edge digital information 

technologies...

THE TRANSFORMATION HAS BEGUN 

Organizational Alignment Improvements 

GPO has implemented an organizational model that is 

relatively new to the Federal Government but widely used 

in industry, wherein the chief executive officer (Public 

Printer) focuses on organizational policy and long-range 

planning and the second in command (Deputy Public 

Printer) serves as chief operating officer focusing on the dayto-day operations of the business. Working in collaboration 

with GPO’s senior managers, a new top-level organizational 

structure, that will be more responsive to the needs of our 

customers and employees and serve in a transition phase over 

the next two years, has been completed. 

GPO has recently implemented its first employee incentive 

program in over a decade to reward creativity, dedication, and 

initiative. Our workforce development budget has increased 

to $ % of our overall budget, but 

the amount previously allocated—to ensure that no one is 

left behind as the transformation proceeds forward. In 

addition, our workforce development policy now 

emphasizes mission-related training, not simply job-related. 

Our use of digital communications internally has been 

expanded, and a new Employee Communications Office will 

provide employees the information needed to do their jobs 

more effectively. 

GPO has established an Office of Innovation and New 

Technology to harvest information on cutting edge digital 

information technologies from diverse sources through a 

visibility due to the critical and dangerous times in which 

we live and work today. GPO is working directly with the 

House and Senate to ensure continuity of operations in the 

event of an emergency, and finalizing operational 

improvements funded through the fiscal year 200

emergency supplemental. 

A principal goal is to focus all of GPO’s operations toward 

customer service—transforming our operations, however 

necessary, to help our customers. Meetings have been held 

with Members of Congress, key congressional staff Federal 

agency heads, the heads of Federal operations with congruent 

missions—such as the Postmaster General, Director of the 

Bureau of Engraving and Printing, and Director of the Mint, 

the library and information communities, the printing 

industry, and others—to win support for the GPO and 

increase our future business opportunities. GPO will 

be exploring ways of helping Congress reinvent 

its information products to expedite its work. 

The meetings with the library 

community at the American Library 

Association Midwinter Conference in 

Philadelphia, and at the upcoming 

Regional Conference of the Depository 

Library Advisory Council, have created a 

challenge to develop a new depository 

library program model that recognizes that 

more than 0 percent of the information 

Technology to harvest 

variety of methods. This office will then infuse this 

information to those GPO operations charged with merging 

new technologies with the needs of GPO and its customers. 

This new office will guide GPO in the creation of 

associations with public and private sector entities to carry 

out its new missions. These types of associations are crucial 

to the transformation of the GPO. 

Another area that has received major attention in the last 

few months has been GPO’s emergency preparedness 

activities. As part of our new management alignment, 

greater focus has been placed on Contingency Planning 

under the direction of GPO’s Chief of Staff. Planning for 

emergency preparedness, protecting GPO employees, and 

ensuring continuity-of-government operations in concert 

with similar planning efforts in Congress, Federal agencies, 

the District of Columbia, and elsewhere, has received high 

coming into the program is now only in electronic 

form, never reaching ink-on-paper. This is one of the biggest 

challenges that confronts GPO and the library community 

today. Its resolution will directly impact the appropriations 

that are provided annually for this purpose. 

A New Legislative Agenda 

To Meet New Challenges 

Together with the fiscal year 2004 appropriations request, 

GPO is seeking two technical legislative changes to Title 

44, U.S.C., to improve our ability to attract and retain 

leadership talent and give us the authority to accept 

contributions of equipment and services as well as transfer 

or donate surplus equipment to appropriate entities. Both 

changes would significantly assist GPO’s new vision and 

transformation. 

1 5

ANNUAL REPOR T F I S C A L Y E A R 2002 
Language, requesting a revision to 44 U.S.C. 303, to 

increase the statutory salary levels of the Public Printer and 

Deputy Public Printer has been submitted for Congressional 

consideration. The current levels have been in place for more 

than a decade and are causing pay compression for GPO’s 

senior level service. Without the ability to compete on a 

level playing field with executive pay for the rest of the 

Federal Government, much less with executive pay in the 

private sector, GPO will not be able to recruit and retain the 

talent needed to bring change to the GPO. 

subject to further revision. The acceptance of contributions 

Authority has been sought to accept contributions of 

property and services on behalf of the GPO. Currently, GPO 

is not authorized to accept uncompensated contributions of 

property and services, and the granting of new authority 

would enable GPO to accept the placement of prototype 

equipment for beta-testing and systems trials without 

requiring a significant Government investment. Such 

authority would provide the flexibility to evaluate new and 

emerging technologies onsite in this period of rapid 

technological change. The language is primarily for 

placeholder purposes with the recognition that it may be 

of property and services would remain subject to the usual 

limitations covering donations. 

Finally, GPO has requested the authority to transfer or 

donate surplus property. GPO’s equipment profile will 

undergo significant change in the coming period, and the 

appropriate disposition of surplus property would be 

facilitated with the authority to transfer or donate surplus 

property similar to that possessed by the Administrator of 

the General Services Administration. Currently, when any 

GPO property is declared surplus it must be sold to the 

highest competitive bidder. In addition to imposing an 

administrative burden in the conduct of the sale, this process 

often results in a price that is extremely low when compared 

to the actual value of the item when in use. The proposed 

language would provide GPO with discretionary authority 

to transfer or donate surplus property to specific 

governmental and non-profit entities, such as other Federal 

entities, educational or non-profit institutions as defined by 

the Internal Revenue Code, or state or local governments. In 

addition, it would allow us to donate surplus publications 

rather than destroying them and selling them as scrap paper. 

1 6

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
A NEW GPO IMAGE 

FOR THE 21ST CENTURY 

To enhance the focus of GPO’s future mission, a new logo has 

been designed that moves GPO away from printing and into the 

new millennium, where the emphasis will be digital information 

processing and multi-media dissemination. 

While printing will not disappear in our lifetime, its role in our 

lives—and in the lives of GPO’s customers—has been forever 

changed. GPO is now in a period where there is a great need to 

sort out what continues to belong in print and what best belongs 

in information retrieval systems that allow the public to define 

their own information needs, then search against databases of 

information that GPO constructs to retrieve only what they need, 

only when they need it. Therein lies the challenge for GPO. Like 

every other manufacturing business in America, GPO must 

reinvent itself if it is to remain relevant and viable for the future. 

GPO must take a new look at the changing and emerging 

information needs of its customers and develop a deeper 

understanding of its true strengths so that we can strategically plan 

for and build a new business model that will allow GPO to meet 

its customers’ information demands. The new plan will present a 

new vision of GPO, establish specific and measurable short- and 

long-term goals and objectives, and contain budget and timetable 

details. The change to the new GPO is now in motion. 

...a new logo has 

been designed that 

moves GPO away from 

printing and into the 

new millennium,... 

1 7

ANNUAL REPOR T F I S C A L Y E A R 2002 
FINANCIAL YEAR IN REVIEW — FISCAL YEARS 2002 AND 2001 

1 8

Financial Year 

in Review 

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
T A B L E O F C O N T E N T S 

I. Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 20 

GPO’s Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 

Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 

Fiscal Year 2002 Financial Results . . . . . . . . . . . . . . . . . . . . . . . . . 23 

Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 

Operating Performance Measures . . . . . . . . . . . . . . . . . . . . . . . 24 

Financial Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . 25 

Possible Future Effects of Existing Events and Conditions . . . . . . . . . . . . . . 26 

Fiscal Year 2003 Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 

II. Independent Auditors’ Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 

III. Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 

Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 

Consolidated Statements of Revenues and Expenses . . . . . . . . . . . . . . . . . 38 

Consolidated Statements of Cash Flows. . . . . . . . . . . . . . . . . . . . . . . 39 

Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . 40 

1. Summary of Significant Accounting Policies . . . . . . . . . . . . . . . . . . 41 

2. Fund Balance with the U.S. Treasury . . . . . . . . . . . . . . . . . . . . . . 45 

3. Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 

4. Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 

5. Property, Plant, and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . 47 

6. Accounts Payable and Accrued Expense . . . . . . . . . . . . . . . . . . . . 48 

7. Deferred Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 

8. Workers’ Compensation Liability . . . . . . . . . . . . . . . . . . . . . . . 49 

9. Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 

10. Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 

11. Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 

12. Appropriated Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 

13. Employee Benefit Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 

14. Concentration of Credit Risk . . . . . . . . . . . . . . . . . . . . . . . . . 55 

15. Major Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 

16. Impairment Loss, Write-down of Software Development Project . . . . . . . . 55 

IV. Consolidating and Supplemental Schedules . . . . . . . . . . . . . . . . . . . . . . . 56 

Consolidating Schedule of Income (Loss) before Other Operating Expenses

Supplemental Schedule of Income (Loss) before Other Operating Expenses 

Supplemental Schedule of Income (Loss) before Other Operating Expenses 

Consolidating Balance Sheet by Fund Type . . . . . . . . . . . . . . . . . . . . . 57 

Consolidating Schedule of Revenues and Expenses by Fund Type . . . . . . . . . . 59 

Consolidating Schedule of Cash Flows by Fund Type . . . . . . . . . . . . . . . . 60 

Supplemental Schedule of Appropriated Funds . . . . . . . . . . . . . . . . . . . 61 

Supplemental Schedule of Balance Sheets for Revolving Fund . . . . . . . . . . . . 62 

by Major Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 

for Printing and Binding Operations . . . . . . . . . . . . . . . . . . . . . . 68 

for Information Dissemination . . . . . . . . . . . . . . . . . . . . . . . . . 70 

V. Management’s Assertion about the Effectiveness of Internal Controls . . . . . . . . . . 72 

2002 

1 9

ANNUAL REPOR T F I S C A L Y E A R 
FINANCIAL YEAR IN REVIEW — FISCAL YEARS 2002 AND 2001 

SECTION I 

Management’s

Discussion and 

Analysis 

2 0

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
MAN A GEMENT ’ S D I S C U S S I O N A N D A N A L Y SIS 

The consolidated financial statements of the U.S. 

Government Printing Office (GPO) were prepared on the 

accrual basis of accounting in conformity with accounting 

principles generally accepted in the United States of 

America (GAAP). Under the accrual method, revenues are 

recognized when earned, and expenses are recognized when 

a liability is incurred, without regard to receipt or payment of 

cash. GAAP also requires that accounting principles used be 

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

The principal consolidated financial statements report the 

financial position and the results of operations of the 

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

§3515(b). The principal consolidated financial statements 

were audited by an independent external auditor selected by 

the Public Printer in accordance with 44 U.S.C.§309(e). 

The consolidated financial statements and reports are 

prepared from the GPO’s financial management system. 

Transactions are recorded on the accrual basis and are within 

budgetary limitations established to facilitate compliance 

with legal constraints and controls over the use of Federal 

funds. GPO’s annual financial statements and accompanying 

notes provide information on the Agency’s financial 

position, results of operations, changes in net position, and 

disclose all significant events and economic affairs controlled 

by GPO, in conformity with applicable laws, regulations, 

standards, and policies relevant to financial reporting. 

GPO is committed to maintaining strong financial systems 

and internal controls to ensure our accountability, integrity, 

and reliability. Our internal controls are designed to provide 

reasonable assurance that obligations and costs are in 

compliance with applicable laws and regulations; funds, 

property, and other assets are safeguarded against loss from 

unauthorized acquisition, use, or disposition; and revenues 

and expenses are properly recorded and accounted for to 

enable the GPO to prepare reliable financial reports and 

maintain accountability over assets. 

GPO Instruction 825.18A Internal Control Program 

effectively adopts the internal control standards and 

assessment methodology used by the Executive Branch. 

GPO managers regularly conduct vulnerability assessments 

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

and other activities. The GPO Inspector General monitors 

the program and keeps the Public Printer informed of the 

progress by management. The GPO Internal Control 

Program has strengthened management controls and 

improved the economy, efficiency, and effectiveness of 

GPO’s programs, operations, and other activities. 

GPO’s Mission 

For over 140 years, GPO has been keeping America 

informed. GPO accomplishes this mission by assisting all 

three branches of the Federal government in the costeffective creation and replication of information products 

and services, and by providing effective and economical 

public access to Government information. GPO is one of 

the Nation’s oldest and most venerable agencies, within 

which the official version of every great American state 

paper since President Lincoln’s time has been produced. 

Many of the Nation’s most important information products, 

such as the Congressional Record and all other legislative 

information supporting the U.S. Senate and House of 

Representatives, are produced at the GPO’s main plant, a 1.5

million square foot complex that is the largest information 

processing, printing, and distribution facility in the world. 

Working in partnership with the American printing 

industry, the GPO also maintains a pool of private sector 

vendors nationwide to produce print and other information 

products for the Federal government. 

Operations

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. These two annual appropriations 

are used to reimburse the Revolving Fund for costs incurred 

while performing congressional work and fulfilling statutory 

requirements associated with the distribution of 

Government publications, respectively. Reimbursements to 

the Revolving Fund from the appropriations are recorded as 

revenue, and generally, unexpended appropriations are 

returned to the U.S. Treasury after 5 years have passed. 

There has been a steady decline in demand in recent years 

for traditional printing within the Federal government. All 

2 1

ANNUAL REPOR T F I S C A L Y E A R 2002 
F I N A N C I A L Y E A R I N R E V I E W — FISC AL YEARS 2002 AND 2001 

major programs within GPO have been impacted by this 

dynamic: less printing is produced and procured, and fewer 

printed publications are sold. The GPO workforce reflects 

this decrease in demand as well, with the number of 

employees on the rolls decreasing from 8,500 employees in 

fiscal year 1976 to 3,019 at September 30, 2002. 

GPO’s Plant Printing Operations produces the 

Congressional Record and all other documents relative to 

the legislative process. However, neither Congress nor GPO 

may be able to accurately forecast the printing workload that 

may be required to support and record legislative 

proceedings. In those years where congressional printing 

requirements exceed the funding provided, GPO uses its 

authority to temporarily fund the shortfall through the 

Revolving Fund. In the majority of years, funding has been 

adequate. At September 30, 2002, no unfunded shortfalls 

were projected. 

The GPO Printing Procurement Program continues to be the 

best acquisition service for the Federal printing dollar. The 

Program offers the advantage of a centralized staff of 

technical experts to ensure that the customer agency’s 

printing requirements are met at the lowest cost. Customer 

orders are offered, via the competitive bid process, to the 

commercial printing industry to obtain the best offer. GPO’s 

commercial printing contractors are capable of producing 

over 350 types of products. GPO’s Printing Procurement 

staff has fulfilled the needs of its customers for timely and 

cost effective printing, as shown by their on-time delivery 

and quality acceptance rate performance measures. This 

program, as with other print-on-paper operations, must 

continually look for ways to reduce costs and increase 

efficiency in an environment of declining demand. GPO is 

looking to streamline the printing procurement process by 

developing requirements for a web-based, simplified 

purchase agreement application, which will allow customer 

agencies to electronically transmit their specifications to 

GPO. GPO will be able to rank potential contractors and 

electronically place the order with the contractor that 

provides the best value for the Federal government. 

Contractors will also be able to electronically receive orders 

and bill GPO for the finished product. 

The GPO Sales of Publications Program has experienced a 

significant decrease in sales activity and the number of titles 

available for sale. This decline corresponds with advances in 

electronic information technology, such as the world-wideweb, and increases in electronic publishing by customer 

agencies. The Sales of Publications Operations 2002

revenue of $38 million declined from fiscal year 2001

revenue of $42.4 million. This continues the downward 

trend that began in fiscal year 1995, when revenue was 

$80 million. Years of diminished revenue and virtually fixed 

labor costs have caused the Sales Program to sustain 

significant annual operating losses. This is important in that 

the Sales Program receives no appropriated funds, and must 

recover costs to continue operations. In order to reverse this 

trend, certain initiatives have been undertaken over the past 

few years. 

One element of the Sales Program, the GPO Bookstores, 

generating about 20 percent of the Program’s revenue, has 

also been in a downward trend. In order to address this 

problem, the Superintendent of Documents closed several 

bookstores in fiscal year 2001 which were unable to 

recover operating expenses. This effort was continued in 

fiscal year 2002, with the closing of the Birmingham and 

Chicago bookstores, with plans to close additional stores in 

fiscal year 2003. 

Other actions taken in recent years to improve operating 

results include efforts to downsize, through attrition, as 

well as efforts to consolidate space to reduce overhead 

costs. Sales Program customers are also being encouraged to 

do business with the U. S. Government Online Bookstore 

as a means of providing more efficient customer service 

while lowering administrative and staffing costs. To 

generate additional revenue, efforts are being intensified to 

identify and obtain additional Government publications for 

sale to the public. Beginning in January 2003, the new 

Superintendent of Documents began evaluating the Sales 

Program to identify additional ways to generate revenue and 

reduce operating costs. 

The Salaries and Expense Appropriation provided by 

Congress funds the administration of the Federal Depository 

Library Program (FDLP), the Cataloging and Indexing 

Program, the By-Law Distribution Program and the 

distribution component of the International Exchange 

Program of the Library of Congress. GPO’s cataloging and 

locator services have emerged as a critical element in the 

FDLP’s provision of public access to U.S. Government 

publications. Long recognized as the National authority for 

2 2

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
MAN A GEMENT ’ S D I S C U S S I O N A N D A N A L Y SIS 

cataloging Government publications, FDLP is also recognized 

as a center of excellence in other aspects of managing an 

electronic collection for permanent public access. 

The transition to a predominantly electronic FDLP began in 

1996 at the direction of Congress. In the fiscal year 2002

appropriation, GPO received general approval from Congress 

to acquire a commercial off-the-shelf Integrated Library 

System (ILS). A contract has been negotiated with a library 

automation consulting firm to analyze functional 

requirements to determine available systems best suited to 

meet the Government’s needs. Once operational, the ILS 

public cataloging interface will offer enhanced information 

identification and location capabilities to all users. 

Depository library staff will, for the first time, have direct 

access to the processing and product status information, 

satisfying the majority of FDLP customer inquiries. 

Fiscal Year 2002 Financial Results 

The comprehensive and audited principal financial statements 

of the GPO include all economic events impacting the 

Agency, including items not recoverable through reimbursable 

rates. In fiscal year 2002, GPO’s estimated liability for 

worker’s compensation claims increased from $67.7 million 

to $91.2 million. GPO is required to include the actuarial 

estimate of Federal Employees’ Compensation Act (FECA) 

liability and the accrued FECA expense in its consolidated 

financial statements in order to comply with applicable 

accounting standards. 

GPO does not include the actuarial estimate of the future 

cost of workers’ accident compensation in the computation 

of rates and prices used to charge Congress, Executive 

Agencies, or the public, and does not include it in its 

requests for annual appropriations. GPO has included in its 

rate structure and prices only the actual cost of accident 

compensation paid to the Department of Labor (DOL) for 

the period reported. The future costs of GPO’s accident 

compensation will be paid from revenues earned in the year 

the expense is paid. 

Fiscal year 2002 total operating revenues were $702.3

million compared with $712.4 million in the prior year, a 

decrease of 1.4 percent. Total operating expenses, before the 

increase in the actuarial estimate of the workers’ 

compensation and the impairment loss in 2001 discussed 

below, were $717.5 million compared with $714 million in 

fiscal year 2001. The net loss of the Revolving Fund before 

other operating expenses was $15.2 million compared to a 

net loss in the prior year of $1.5 million. 

The consolidated net loss for fiscal years 2002 and 2001

were $38.8 million and $45 million, respectively. The 

actuarial estimated liability for long-term FECA benefits 

increased by $23.6 million during fiscal year 2002,

following an increase of $31.4 million in fiscal year 2001. 

Also, in fiscal year 2001, GPO recorded a one-time 

impairment loss of $12 million for a major systems 

acquisition project that was terminated (See Note 16). 

The most significant changes in operating results occurred 

in In-House Printing Operations, Purchased Printing and 

the Sales of Publications Programs. In-House Printing 

Operations improved bottom-line results by $608,000,

although revenue declined by $5 million, from $187

million in fiscal year 2001 to $182 million in fiscal year 

2002. Decreasing revenues were offset to a greater degree 

by expenses which declined by $5.6 million to $179.3

million in fiscal year 2002. 

Purchased Printing reported a net loss of $3.8 million in 

fiscal year 2002 compared to net income of $3.7 million in 

the prior fiscal year. This was a result of a decrease in 

revenues from $474.3 million in fiscal year 2001 to 

$470.3 million in fiscal year 2002, and an increase in 

expenses of $3.5 million. 

The Sales of Publications continued to decline in fiscal year 

2002, with a net loss of $16 million compared to a $7.6

million loss in the previous fiscal year. Revenues showed a 

dramatic drop from $42.4 million in fiscal year 2001 to 

$38 million, or 10.4 percent, in fiscal year 2002. Expenses 

in fiscal year 2002 increased by $4 million to $54 million 

from $50 million in fiscal year 2001 due primarily to a 

$3.4 million increase in surplus publications expense. 

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

million in supplemental funding, under Public Law 107-20,

to replace the air conditioning and lighting systems. During 

fiscal year 2002, these funds were fully obligated, with 

about 80 percent set aside for the air conditioning project, 

and 20 percent to upgrade lighting fixtures. As of 

September 30, 2002, $192,000 was expended, primarily 

to pay for engineering design studies for the new systems. 

2 3

ANNUAL REPOR T F I S C A L Y E A R 2002 
F I N A N C I A L Y E A R I N R E V I E W — FISC AL YEARS 2002 AND 2001 

In fiscal year 2002, the GPO Revolving Fund received $4

million in Emergency Response (Homeland Security) 

funding under Public Law 107-117 to enhance security 

measures at the central facility and provide backup sites for 

both production operations and the Superintendent of 

Documents GPO Access web-site and support functions. 

During fiscal year 2002, GPO obligated $2.6 million of 

the available funds and expended $1.7 million. GPO plans 

to obligate the balance in fiscal year 2003, including about 

$1 million for the GPO Access mirror site. 

As a result of these activities GPO recorded Appropriation 

Revenue of $1.9 million from Appropriations made to the 

Revolving Fund. This represents the amount expended by 

GPO for Homeland Security and Air Conditioning and 

Lighting Improvements during the year. Accounting 

standards require the recognition of appropriation revenue at 

the time the appropriated funds are spent, while acquired 

goods and services are either depreciated (if a capital asset) 

over a number of years, or expensed within the period. 

Performance Measures

The Government Printing Office gauges its overall 

efficiency and effectiveness using performance measures. 

Generally, these performance measures are based on 

established standards that are compared against actual 

performance for each fiscal year. The following sections 

discuss the major operating performance measures and 

financial performance measures for the Agency. 

Operating Performance Measures

OVERTIME MANAGEMENT 

GPO makes an ongoing effort to minimize overtime hours. 

In fiscal year 2002, overtime hours decreased to 189,000

hours from 198,000 hours in fiscal year 2001, or 4.5

percent. The cost of overtime in fiscal year 2002 increased 

by less than $5,000 from fiscal year 2001’s level. GPO 

successfully achieved its goal for fiscal year 2002, with 

actual overtime hours worked well under the upper limit 

goal of 200,000 overtime hours established at the 

beginning of the year. Our goal for fiscal year 2003 will be 

to remain under 200,000 overtime hours. 

PRODUCTION CHARGEABLE HOURS 

Chargeable hours decreased to 570,000 in fiscal year 2002

from 652,000 in fiscal year 2001, a decrease of 82,000

hours, or 12.6 percent, while the number of employees 

available for work increased by only .4 percent. The results 

for 2002 met GPO’s goal of achieving sufficient chargeable 

hours necessary to break-even. GPO’s fiscal year 2003 goal 

is to have enough chargeable hours to achieve break-even in 

Production Operations. Due to the mix in hourly rates 

charged for the various printing processes, a specific 

chargeable hour target cannot be established. 

CONGRESSIONAL RECORD DELIVER Y

The Congressional Record is an important tool and product 

of the legislative process, with its timely production a large 

part of GPO’s mission. To gauge GPO’s efficiency in 

providing the Congressional Record to Congress, 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 percent in fiscal year 

2002, compared with 77 percent in fiscal year 2001. 

ON-TIME DELIVER Y OF PROCURED PRINTING 

The Printing Procurement Department contracted with 

commercial printers to ship 142,900 jobs in fiscal year 

2002 compared with 147,800 jobs in fiscal year 2001. 

For fiscal year 2002, GPO’s goal was to have at least 95

percent of procured printing orders delivered on schedule 

and a quality acceptance rate of at least 99 percent. Both 

goals were met. The goals for fiscal year 2003 remain the 

same as those for fiscal year 2002. 

Financial Performance Measures

CASH MANAGEMENT 

Payment Performance – In fiscal year 2002, GPO 

continued to earn millions of dollars from taking favorable 

prompt payment discounts offered by contractors for the 

payment of invoices within the discount period. GPO 

earned prompt payment discounts of $6.6 million on 

purchased printing expense of $437 million. This represents 

a discount rate of 1.5 percent, in line with that of the prior 

fiscal year1.6. The 1.5 percent discount rate earned 

exceeded the 1.4 percent goal set for fiscal year 2002. Our 

goal will remain at 1.4 percent for fiscal year 2003. 

2 4

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
MAN A GEMENT ’ S D I S C U S S I O N A N D A N A L Y SIS 

Discounts lost increased to $367,000 in fiscal year 2002

from $278,000 in fiscal year 2001. The percentages of 

discounts lost to discounts offered were 5.3 percent and 

43.4 percent in fiscal years 2002 and 2001, respectively. 

We did not achieve our goal set for fiscal year 2002, which 

was a maximum of 2.5 percent. 2001

Electronic Payments – The use of electronic funds 

transfer (EFT) payments results in savings for GPO and the 

Department of the Treasury because paper checks do not 

have to be produced and processed. In fiscal year 2002,

approximately 25,600 monthly payments, or 92 percent, of 

all GPO payments were made by EFT, compared with 

25,500 monthly payments, or 91 percent of all payments 

in fiscal year 2001. Our goal for fiscal year 2002 to 

increase EFT payments, as a percent of all payments, to 96

percent was not met due primarily to an increase in the 

number of small-value refund checks issued to the 

Superintendent of Documents’ Sales Program customers. 

These checks are not feasibly disbursed via EFT. Our goal 

for fiscal year 2003 is to increase EFT payments to 93

percent of all payments made. 

DEBT MANAGEMENT 

Federal Receivables – In fiscal year 2002, GPO billed 

Federal agencies $670 million for printing and binding 

services. Of this amount, $483.8 million (72.2 percent) was 

collected using the Department of Treasury’s Intragovernmental Payment and Collection (IPAC) system; $38.4

million (5.7 percent) was from funds residing in Printing and 

Binding Deposit Accounts maintained by the GPO; and 

$11.6 million (1.7 percent) was collected via credit card. 

These methods enable the collection of funds within 30

days or less, as opposed to the more traditional methods of 

collection which require the creation and exchange of 

paper documents. 

Total GPO government accounts receivable at the end of 

fiscal year 2002 was $16.3 million, compared with 

$9.38.4 million at the end of fiscal year 2001. The 

Department of Defense (DOD), with an average monthly 

balance of $5.9 million for billings outstanding for more 

than 90 days, representing 55.7 percent of all of GPO’s 

delinquent receivables, is GPO’s largest delinquent customer. 

At the end of fiscal year 2002, DOD owed GPO 

$768,000 for billed, completed work that was between 31

and 60 days overdue, $181,000 that was between 61 and 

90 days overdue, and $6.3 million that was more than 90

days overdue. GPO and DOD have, in recent years, used 

Treasury’s IPAC system to simultaneously bill and collect 

certain DOD invoices for printing and publishing services. 

This agreement has had a significant impact in reducing 

GPO’s receivables from DOD. As recently as fiscal year 

1998, accounts receivable from DOD were $34.9 million, 

including $14.1 million overdue by more than 90 days. 

GPO also offers Printing and Binding Deposit Accounts to 

allow agencies to prepay for their printing. These accounts 

greatly simplify customer agency accounting and have the 

added benefit of providing detailed customer account 

information, via a secure web site, which enables customers 

to either download or print their transactions. At the end of 

the year, there were 243 printing and binding deposit 

accounts valued at $48.1 million. 

Customer agencies have the option of paying for their 

printing and binding needs by credit card. Credit card usage 

increased in fiscal year 2002 to $11.6 million for 14,392

print jobs from $11.5 million for 12,852 print jobs in fiscal 

year 2001. The average price per job paid via credit card for 

the past two years was about $850, indicating that 

customers find it a convenient method to pay for small 

printing jobs. 

Possible Future Effects of Existing 

Events and Conditions 

The Executive Branch has been evaluating a proposal to 

amend the Federal Acquisition Regulation (FAR) in regard to 

the procurement of printing and duplicating requirements. 

Implementation of this proposal to decentralize the Federal 

Printing Program could significantly reduce GPO’s workload 

and associated revenues from Executive Branch customers. 

Specifically, the Office of Management and Budget (OMB) 

issued Policy Memorandum No. M-02-07, Procurement of 

Printing and Duplicating through the Government Printing 

Office, on May 3, 2002. OMB proposed that agencies of 

the Executive Branch be allowed to procure their printing 

and duplicating needs directly from the private sector or 

from other agencies, including GPO. The proposed 

amendments to the FAR were published in the Federal 

Register on November 13, 2002. The public comment 

period closed on December 13, 2002. The FAR has not 

been amended as of this date. 

2 5

ANNUAL REPOR T F I S C A L Y E A R 2002 
F I N A N C I A L Y E A R I N R E V I E W — FISC AL YEARS 2002 AND 2001 

During this same time period, the U.S. Congress reaffirmed 

the statutory requirements for Executive Branch agencies to 

use GPO for printing through Section 117 of Public Law 

107-229 (the Fiscal Year 2003 Continuing Resolution), as 

amended by Section 4 of Public Law 107-240. On 

November 13, 2002, the GAO General Counsel issued a 

legal opinion that agencies are prohibited from using any 

funds to implement OMB Memorandum No. M-02-07. 

Subsequent to all these events, the new Public Printer and 

the Director of OMB reached an agreement to set aside the 

contention between the two agencies regarding Federal 

printing policy. 

The Public Printer has invited the Director of OMB to 

jointly establish the facts about printing and information 

dissemination, and to devise a Government-wide policy that 

fits the 21st century. 

Fiscal Year 2003 Projections 

Congress created the GPO Revolving Fund to finance the 

business-type operations of the Agency. The Revolving Fund 

was designed to financially “break-even” by recovering costs 

through rates and charges to customers for goods and 

services provided by GPO. The Agency has not met this 

financial goal since fiscal year 1998. Under the leadership 

of the new Public Printer, the Agency’s fiscal year 2003

financial performance is projected to improve as a result of 

management initiatives being taken. 

GPO is in the process of reinventing itself to better serve its 

customers. The new Public Printer has been meeting with 

Members of Congress, key congressional staff, Federal 

agency heads, the heads of Federal operations with 

congruent missions – such as the Postmaster General, 

Director of the Bureau of Engraving and Printing, and 

Director of the Mint – the library and information 

communities, the printing industry, and others to identify 

customer needs and business opportunities. This input from 

customers and other interested parties will help determine 

the future direction of the Agency. 

A new organization structure is currently being 

implemented for GPO that will be more responsive to the 

needs of customers and employees. The new Public Printer is 

in the process of assembling a management team that will 

have vast business and government experience, and a wealth 

of industry knowledge. Greater emphasis will be placed on 

operating GPO in a business-like manner. 

The Agency will continue to transform its image as a 

producer of ink-on-paper products into a provider of digital 

and multi-media information. As part of the transition, plans 

are underway to greatly expand the workforce development 

budget to ensure that employees are empowered with the 

skills necessary to succeed in the transformation. The funds 

will be used to emphasize mission-related human capital 

development, and not simply job-related training. 

The Public Printer has requested a $10 million appropriation 

to cover the costs associated with necessary workforce 

restructuring under retirement incentive authority 

established by law. This investment will enable GPO to 

manage the size, composition, and skills of the workforce as 

required by rapidly changing technology. Additionally, the 

Public Printer is increasing the recruitment of college 

graduates to obtain the next generation of technical skills 

needed to take GPO into the 21st century. 

Through the new Office of Innovation and New 

Technology, actions are planned to form associations with 

industry to explore opportunities for the GPO to assume a 

leadership position in technological innovation in the digital 

information era. 

2 6

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
MANAGEMENT ’ S D I S C U S S I O N A N D A N A L Y S I S 

Additionally, 

the Public Printer is 

increasing the recruitment 

of college graduates to obtain 

the next generation of 

technical skills needed to 

take GPO into the 

21st century. 

2 7

ANNUAL REPORT FISCAL YEAR 2002 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

SECTION II 

Independent

consolidated financial 

statements as of and for the 

years ended September 30, 

2002 and 2001, are presented 

conformity with accounting 

principles generally accepted 

in the United States 

of America;... 

The GPO’s 

fairly, in all material respects, in 

Auditors’ Report

2 8

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
INDEPENDENT AU D I TO R S R E P O RT ’

2 9

ANNUAL REPORT FISCAL YEAR 2002 

Independent Audicon' Report 

Th~ Public Printer 

United St:u.::s Govc,, uncm Printing Onicc: 

We have audited the ae<:ompanyins co so ~t .-d h!llancc she>el$ f~ ~ U•tiu:d Sl.!ues Govemnx:,u 

Priming Office (the GPO) as of St.-plc:mher 30, 2002 t111d 2001, and Lhc related CQnso!id:ued 

Slil!cmcnts of '"'''cnucs and cxpc.tses :md ca!ih llov,.-s fOI' lhc yca1'l; then ended. We hav\.' aiSll 

c)(smincd management's :tssen nlt!~. included in Lhe smtem..-nt nf :1ssur:mcc to us d:ttcd Fcbrunry 7. 

'2003 m pages S6 and 57, rcga•'ding the cm~ctivc:ness of the GPO's imcrnal control O\'C:r lin.'lncial 

reponing 1hut we1e In lllace :L~ uf Scptctnbcr 30, 2002 and lill' the yc:u tht.'n ~-ndcd. TI.c objective 

or our audit\ wns to cxpl"e$S on Ol)inion on the fair presentation or these ..-onsolida.tcd lill:lncial 

stutCI'l\ICfltS. Use objt.'Cii\'t' of uur cxaminntioo of m:magcmcm's assertions regarding internal 

oonuo1 o~·tt linnncial reporting was to express an opinion on manngcrncm's osscniOfiS. In 

oomtcction with our uudits.. we olso tcstcd the GPO's cootpliancc with t.-cnain pt-o\·isions uf 

opplkablc laws nnd regulotions that could hnvc o direct and m:.ucri!ll em•e~ oo its consolidated 

financial statcmcms. 

SUMMA In' 

As seated in our opm1ons on the consolidmcd Jin.anci:d statements ond on management's 

nsscnions about the clfet.•th•cncss ofintcmal control over lin:tnciul repon.ing. we condudc.'d lhat: 

• The GPO's consolidated iilWICtal •l~·m<.·nts as or and for the yean; ended Sl-ptc:mbcr 30. 

2002 and 2001. ;are p«:S('Illtd l';•irly, tn all motcrial n:~S t.'(;tS. in Clmfonntl)' with acoountmg 

princ ~s generally ncccpt«< in the lJnite.J States of Amo:ric.•: and 

• nw:: Gro man:.s.::mc-nt has fi1irly st:ttcd, ;,, all tnatcri.:.l tL'S(X:CtS, its as<;et"liO•li: th:u im;::,..,:.l 

control over liMnci:al rep(lf'lil\S in place as of September 30, 21)()2 n.od tOr the ye:tr then C1\dOO, 

pt(widc 1\!:\SC)I,:tble nsl<ut:lnce thiu ll'lllli::tctions :~re prQpc••ly 1\.">Cotded, l)f'()Cesst>d. and 

summa•·izcd 1n petmil 1hc pceparotion of the CU•lsnlid:u.::d finrulcial sratemc•lt.S in :lccorda•lct 

with nct.'()uncing ptin.ciples cnctt~lly l.'IC"Cel)tcd in the UnitOO States. of Am.cric::t, and 3SSt.'1.\.1lte 

safeguarded nsninsa lo.ss rmrn unauthoti?cd ncquisition, liSC. or sposi ti on~ and t~::lct s 

arc cxcemed in accord.'lncc with: (:t) tows gllwming 1hc usc or budget :w.thorit)', and (b) other 

laws and regul:llions that could hnve a direct and m:llCI'i:d dfec1 em the oonsntidatcd fi n:wcial 

Sl:l cm~IIL"-. b:.~cd upon criteria cst:lbfi~ cd under CiPO lns.truc!ioo ~25 .1 8A. lmemol Cfmrml 

Pru{ll"fJm. 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

3 0

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 

Our <;Ofbid..:rtlliOu t•l' intem.-.1 <:(lfllrot uv~'T finanei:\1 a1JIOI1111S resulted in dcfic•tn<:tl:$ m th.: d..:Sit(fl 

utld/(lr np.:mliOn .,rille GPO'~ lnfonmlli(lfl Tt! hn (l@.)' ern g .. -.~rtll L'Pilii\IIS ;"n\(1 inlcmtll L'Pil l\11~ 

over 1b pi'O¢ess fi·u· id.:;.nifyin8- obsol~"'¢ or ~tow mO\ i•t8 1)\•bhc:•ti(IIIS. for Sl•l..: uwe-1101')' rm\1 

es.tiJn:)ting lht! ~'1lr L"Ilt.l llow;m<:~· for surrlus pt•hlil':llions .,i!ing idcntilic.l ~ n'J"('rtllhlc 

t.Xmdilionso. 1-towever, non.:: of lilt repon:.hle Ci~nd tn s r~ C<)l),ic,ltre(! w he matc .. ial wt:)kn.::ssoei. 

The re$uhs or ()llr tests ,,r C<llllt>liance will! laws :and l't!'S,\il:llilli\S dlS<:J(IS ~d 1)1) iiLSI:lllL"t$. i) l' liOn• 

C(>JTIJ'!Ii:lllet! 11\!11 :'Ire r• red M he rcp<llfiCd her¢in und.::l' Grm•mrm•r~l Amllliug Stwukml.v is:oute.l 

h>• II)(: C'ilfllt'~•\11l · GenC:'r:tl of the Unilcll Slates. 

The folio'' 1~s !l~tio••" dtSC"USS our <>t)nlltlll on IlK" ClPO's <:onsolld:ned. li•l.'lfl<:lltl S"l:ltcnW!ntS.. ()Ill' 

iltliniM t<on m:ulagcmcm'l! :l.J'iliCtt n••~ rC"tsatdi•lS mcnt:~l Clltutolu\'CI' tin:utd:tl re~ot1i 1¥, (II.Jt tst~ 

(I( the Gro•s .. ~,m lliance wi1h C(:M3in pr()\'lsi(lllS of !•Wikablc l:•ws :utd regui:UiOI\S, :md 

lll!ltl3SC nem'~ and l)l.lt I'CSt)()ru;ibilitie:s;. 

OJ)LNION ONTtU: O~SOUOATEO NANCIAL STATF.~ ENTS 

We h3W :tudit<!'d the 3C'COO p31l g c<M'I$Oii00t00 bal.ance sbocts of thC" ClPO :.s of Scpto::mhcr 30, 

2002 .and ~00 1. tmd 1hc rd:ned consolid:ued SliltCmcm<> of l'e\'Cnues nnd expenses :tnd cssh 110\\'> 

fi"'f the years then cn~kd. 

In our oplniOJI, the ~'Oli$OIIduterJ llnanci!IJ statements re-fL'fiX'd lO abOH\ ptescnt lillrly, ln all 

mutcrial tc$pects. the lin.uncinl positiOI\ of the United States Go~crnmcm Priming Ollicc as of 

Scplcmlx'f 30, 2000 and 2001, and the results of its opcrauons und its cash flows for tho: years 

then ended in conformity with x:oum ng pri plcs gcnl'fnlly acee-p1cd in the Unilcd St:11e.s of 

Amcria~. 

Out audits were cond ucted lOr the purpose of IOm1ing .an opmum on the GPO's consolidaK·d 

financial statements Wen usn whole. The ronsolida!ing u.nd supplemental iniOmlation on pages 

45 through 54 n.re- presented lOr purposes of udditionaJ analysis <Jnd <~re not n requittd pan of the 

consolidated Jinancial ta lcm~-:nts. We did no1 nudit this mlbmlatioo. and oc.;.ordingly, we express 

no opinion on iL 

The information contained in the M:: ag ':lllcm·s Dtseussioo nnd Analysis section has not bl't'n 

audited. and accordingly. \W express no opimon on i1. 

OI)L. IOK OK MANA GEM E:NTS ASSERTIONS ABOUT TUE EFFECTIVENESS OF 

INTERNAL CONTROL OVER FINANCIAL REPOinlNG 

We ha\'e exanuncd m:magcmenfs asscruons. included in its slalemcnt or ass r<~nce 10 us datr:d 

Februllf)' 7. 2003, that uncmal controls des1gncd by management provide reasoMhle. 001 noc 

absolute. assurance th.11 as of September 30. 2002 and for the ye.:.r lhc.n cndtd. the IOIIowmg 

jOCU 'S \\ttC lnt'C: 
INDEPENDENT AU D I TO R S R E P O RT ’

3 1

ANNUAL REPORT FISCAL YEAR 2002 

• T~tt(lfb :r.: proptrl) rcc:onkd. fWO'."C'i..td,. Md ~mm.wucd ._, f"'."nnll die- pl\.~ oC 

ch.: ('(lfbOIIif.di."d raft:lnei.tl Sl:h~ ill xet'W'"dlria "lth -."a-Ulll"f rr--tplts gnta~tl~ 

... '\:"ffk.--d ..,. the United ~llt!L'S or AJneric1. and ._,..a_ .. ..n: ~J ... '1!\&If'dt.'d npltbl loss rrom 

~1.MJ :lt."quiSJiion.IJSC. 01' dispoiiti()ft; !lAd 

• I nll\...,ttKms m: c:-<ccutcd 1n 3l'('ordanc<" \\ith· talla'As wo\cmin.aJ the U!C of budJ;<"t aulhont}. 

111nJ Itt) udlc:r laws and n:_g:ulatJons that l'OUkl h.l\t' 11 dlra:t ai'IJ ll\.ltcnal cll<:-..1 on the 

et:~ ,.uln .a J financwl st.at<"mcnts 

In t)l,lt uplnlon, management's ussen10ns that intern:. I ~~'ntro ~ tn o~l:(l ~ 1Jf ~-.-p c:mb('r 30, 2002. 

Ulld ll•r til() )'CIIF then \!llt.k-d. pn.wide ~ilSOl\l ~ liS'iUfiUioC~ 111,11 11\\II >!~'IIUII \ Ill\! J'tlupt'rly fClCord-."lf, 

I'OC(''~ . 4md mm;~.nzt:d ttl J"l'rmit th e p«pmmwn o( the CU!htllidatcd 11mmdal ~tu ~'!llb tn 

UCt.:C"oni.Jn-.-< ''lilt uc~:ountmg prim:1ple!t getll'fltlly Ul~C 'I Cd in tt.c Unuc .. l ~ta c!! ol Amene<t 11nd 

11'-"Clll t•te &afc~ xlo.:J a.g; in~ iusl> fnnn unaulhont .. -d IIC\JUIIitllt•n. u~. tor i~p<.ll!> lion: and 

lr.II\\IIC{II>II>! I&JC CI(C:CU:Ied in a!OConlanc.: \\ lth; (l'l. Ia\\,. j;i" L"flllnil the lN' uf btMJ~-..1 olUthOnl), lllli.J 

iM t1l ~"1 111\\S and ~~;vJall<.mS thU2 r;oold N\t' u d!r«'l und tnlll1.!1111.1 ciT-.-cl llrl the ~,fldutcd 

(m,. ~l;~~l \l.lL"tfli;l1lli.IJf"(' (lliriy M<llt¢dltl 11.!1 miiiC'I"I'*I ~ h, l'lll~ Ui""H'tl(l,."fJII l:!>t.;tblt.'!ht:f.i llfld.:r 

<•1'0 11\...u\K."hOfl 8%S .I~A. /nt(TTfll/ C()ltfro/ {IT(J~rmtf 

Our "''""flkni!IC.IO of lf'lk'mlll (:(In~ 0\er (NncuJ R'fl'lt1"'1 "'\-.ld tkll ~1) d~ all 

,.,..Mt'f'\ 1ft the 1r111m11l cunlr\ll c.n<~" finunal R'JI(lrtlnj lh.lt tnJcfM N Jq'lwtoil'lk a."'nd!IK!ftl>. lndL..-

~ .. ""utd b) d~ Amo.'ndn lnsllluflf of l MJ(t<d PwNtt A~,.'\:,unnt.._ rlt'f'(lflabk «ondci<lns 

lll'~t rNtk'f' "'~"" 10 (lUf auenti(IIR n.1:al*"¥ tu ,.,.l~llkh,k'fkk"" '" lhl! ell."' ~fA elf up.'nlltOn Of 

lhc lnltm.ll (\)rcrol OHT ftnol.JII.::.al rqx"Fltnl lhlat. m UUf Jifd8n'~"'IU, a)Uad llkht.'f'id) affcc.:t tb¢ 

c,ro· .. ...,,Itt) h} t«vtl.i. ~ 3>Ummo'irlllf, and R"f'l'll1 firgnu:d d.tt.a ''"'"No:n1 •••h tt-.: :t.:o..~MI\IIt\ b)' Ul~ll)tnl u) the cons.offdah:d finai'C"ial M.at ... 'fl1<'nt.. 

Mlll~r -;af .... l:. kfie'1."C~ Of~ f\"PO ULh ~ C(lnd1 1011~ '" v. hi..:h dw tk"'¥1' ~ nr,•r.uion llf Qlh: or nK>I\! ()( 

tlh: lllh.-'ftl;tl Cl)ntl'()l q\nlJ'II 11Cil~ t$.\i,"S. n(ltC 1'\!llu.;c Ill !1 ~11111\\tly lo.... ~\d dtc n .. k lh:u 

mi .. , tatl!'lttcnttl, in amuwus that v.ou1d be m; ~,-•:•1 u1 ~l. ttt•u tt• the .:uusulillatc.l liltall.::i:ll 

kn~11h bctll41, .1uditcJ. lli:l)' (IL'\:ur atw.l ll•IC be d~t~IL'd v. ilhiu .1 timd y ~n••~l b) ettll)loyn!:. in 

the 11\!fnLII C1111rt11.l r pcrf••tllling thci1' :lSSiSI C~I ll<: iful ~. 

We fMkll ~ctt:li n IMUCfS im <lh·ing th~ lll l C(lflltfll ol\0:1' (inancill l\:j"llW'ting :mJ its ~roti(lll 

d~~r hoc\l bd!ol\ that "~ C\)fl<;;id<.'r 10 be 1\:l)<lrl!lhh,'l ((llf~i tion .... I h>V.~\ \"1, IM'IlC or the rcpc> hl ~ 

CIW'Idltion..: aro he he\ cJ liJ !'It matc,•ial \\C:tk1le,<;c..._ 

De-rtel~·~a '" 1ht dcstgn and or opct31:ion~> of tht c. PO·, IT j!Cftmll eoo.trol~ aa C"OOiidl"fi.'d ~ 

fqklf'\Mbk rondltim. "f'lm condition. ~-bich h:n t'M.'ft5 pn.."\ •IU!rol)' rq'IOOCd 10 10ana£Cintlll .in prior 

)cafi • iai.MJII rqtUb. tdalts 10 tht follo.ing ~ 

• f "fll) · \\ kt• h~ ~nm 

Thcr\" 11t ~\t1'al at~ n..1.2fdi"¥an ~~.,...·~.de 'M.'\.-vnl) rt'~a•llt.at are IR:ltlequ::u~ Tho.: 

1"'¥-'1'•• \tll"IU.ld t:<OUhli.;;h a fr.t~t~...,Ofl. fOf ~ .. ~,inlf n .. ~. ~\..-l-l'f'II'IJ at'ld unplem.."'tllitl$ 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

3 2

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 

..:O'c:cl h •c s.xurily pr<x;'-'lfurts. Md moo itOring IIH: efl"c."Ct i \'tfiCS:I (I r tllese proct<brres. \Vidl()ul .. 

well•d¢SiQ11<:d prOgrtlnl. s~ ity 1.'QIIIJ'01S nll})' be ~ooteo l'e!;pQt•slbi1ities m~y be: uncl~r. 

misun<ltrstood, and improperl)• impk mentOO: tmd Cl,ntrols nwy be in1.'QnSisten11y Applied. 

Sp«iJi<:lliJ)", \~~ noced the na.~ for the GPO 10 t:. lish an effective sec;,•ri•y •nlln4\Semtnt 

Slnk.1,11'1! thm prtWide!; ;) ffilniCWQrk Md ¢00tinuing C:)'>Cie or l'ICth•it)' ror 111\lnt!.ghl@ risl:, 

de\'elopins security roticics. and m<mitoring the l\teu""l.'Y of computer security oon•rols. 

• AcC'l'SS CuntroiJ 

Certain IKCCSS controls rcquirc modificutian in order to provide a more secure cnvironmenL 

ACCI:$S <:ontrols should provide reasonable assurance that computer rcsoun.:cs (data lites. 

apphcation programs. and computcr-rdatcd facilities IUld equipment} ll.ft' protected against 

unauthorized modiftt'lllion. disdost.lre, loss. or impainncnt. 1'he.sc. c:ootrols inc:lude oontrols 

over physical aocess to computer n:soun:cs. aDd controls that prevent unauthom.ed aocess to 

scns1th·e file..;, 

Examples of impro,•cmcnts nocdcd include: 

- Utilizing independent risk asscssmmts in order to prop«ly C-lassifY computer information 

rc.sources according to sensitivily and c:riticlllity. 

- Reviewing aoccss authorizlltion lisaings, and user llCcount privilcg.cs f<W all of GPO's 

infonMtion systems 10 determine if access is stilltnJuircd ll.l1d privileges are appmpriau: 

based upon job function. 

lnlft«>Vins ogic.:~l !!Ccurity, conligur:.tion ui g,<~. nnd .lt.'ll):.:~c pcrmi.,.,iQfU MUmundins 

the goocral lcdgcr and Probc dsmbascs. 

fmpro,·ins imcmal nctwofi< uhlerabi ti~ fOt p:tSSwotd ndmini ~tio . ' 'cndot l)atches. 

nnd \'cndQt recommended enhancement$. 

- Enhancing emrln)'et! checkllUI ri\'ICedui\!S. 

- lmpro,•ing physil,':,'l) ;1et;I!SS controls. 

• Applic-ation ~(' Control and S)'Sh' DIS Oc,·tlopmc-nl 

Certain controls O\'er the modilication of applia.tion software programs are defkient. lllese 

controls should be designed to ensure thllt only authomed programs and modifientions arc 

implC'memed. Without proper contro•s. lhC'rc is a risk that s«urity features could be. 

inad\'encntly or dC'-Iibcrately omitted or "turned oO'" or that procc~ing tmgularities or 

malicious code could be inlroduced. As an eJUJmplc. the GPO needs to de,·d op on cntily·wick 

systems dcvC'IopmCTlt melhodology to encompass client/server and production environmrnts. 

• Sen1« Ccuuluulcy 

L.osins the ca~il y to process, rl."'ricvc, and protrct infQtlnalion maintained clcC'In,nicnUy 

can sisnificaruly impact an agcncy•s ability to !'lccompli!ih its. missioll. For this rc:.~. an 

agency should have (I) procedures in place to pf()(cet infonnatioo. ti.'SOUI'I.~ alld mi7'~ the 

risk or unpltmncd interruptions and (2) :. pion to recO\•cr critical OfiCratioos should 

inrcrruptions occur. The GPO needs to csublish n comt,rchcns- v~. cntity·widc businc:;s 

c-Ontinuity and disaster reoovcry plans. 
INDEPENDENT AU D I TO R S R E P O RT ’

3 3

ANNUAL REPORT FISCAL YEAR 2002 

A"' ~'d tn ,...... )"tarS. "e ~ ~ dLlc 1~ QPO «k\elc.~p • fontYI >~«ion (llitR t0 

R."\tc• and tt"\•S.: 11~ IT~ ~ttob an ord« N ""-""'htn tht •nctmal """roe mwoomem:. 

rhl' pbn :\hOUkJ ~ Ql.... of lbt' lll\!aS d~'\1 lh.li.C tli. \\i.'ll '-' <ld.)" ('ltwf ~ th:tt IIIII*' 

the J'.'fM!ral IT c:t)(\11\'11 ~' •rot~mmt. ~ fQ11h •rrrorr•ak t."((ft'\'\:11\~ aa•()n 5"-""J'$.. ~en 

f\'.'"'"'"'b•hue" w l!mplt))'M. and t!"ita.bli!ih lllfld 4"(JfYII'I..:hon d.u~ "• \:J~Ctl o~..:~k!rl. Th:i< pl~n 

'"Ot• M ~ :w.lop1 ~'d b) tJow: GPO and prO\" i~ f()f p.•nrodt.; n: .. i..:"., or rroa~~ 1(1" anl$1k!'bii!\ tmenl 

nf .._~,,~.._li\c :l .. ll(ltl". 

W..: 1\l!lt..'d llt.•t the ~al }Car end l)uh lic:: \ll ~ for .. !!Ill inH:nl\lf)' hnlau .. -.: mdudcd a ifict~m 

uumhc•· of ptlblic:•lioos lhat al'~ c(lfls-idcred oh6olcu.• nr 111m · flltl\ ing as dc li r~oed by O'~ tXllicies. 

W..: rllfol) nCilt..'d th111 the GPO Financinl Ace<ountmv IU\1.1 J<ct'lf•l1ins nnmch has dc''l'lopcd it.'> 

4-"Jeimlllc ror lhe allo"'ancc for surplus pt•blicruian-. ~ma 11 f001 )Cill :1\CI'ago ratio o f stuplu.~ 

t\:pcn...c co 101al rublic:uioos for sale im.:-moty .,...ilh\•111 t.-king Into oon~<idcnuioo Lht .aaual 

C'lhM'Il'1c or !I low roo' mg nems 1.h:u cuged a~ of li.-.:::111 )CIIJ md 111 dcfi:ncd by CWO's policies. 

lhi10 rctoullcd m •n adjusunem to the aUO\\aftCC and the \.urp.lw. publkalions cxpcme of 

llrfl«''\lmald) SJ mtlhoo aJ fiscal yc:~r end. 

\\ c K'C'OIIuncnd that tal ~~ ftlilft' th3l the m ecw. o( \low. mMill4!, lnd obsoktcj'WductJ.. .,. ckftntd in GPO's pollcies.. is perf~ c-fTM."..:nll)' on a periodic buis. and fb) tht 

GPO Ftnuca~l AIXOUOtlng and Rcponifl£ Bnnt'h modd) •b mcdtodolo@) for csailnalicg ~ 

alto\\ ~c D) WJII@ tmo conskler3alon me ~~r..--wst number or .. ~ '*"' tna !Mid obsolc're ttnas as C'l 

fisc;al > ar encL. 

'fhc: liK;a.l )"('Ill' 2001 ~pocublc condi:tlon ~bled to GPO•li proc~ll (or numaung llS "'orkttS' 

compauahon l&abihcy has bcm S3lisfactonl) add~ In 2002 anll h:u not been repeated '"this 

re:pon. 1·bc only othtt liscal year 2001 tq)Onable cancfuion rcl11led to dcfldcndcs in the GPO's 

IT atn;:nat t:ontrols. "hi!< IXrtlln impro .. crnems htne ~ nClflcd II iJ !lid I t:OOStdcrcd ll reporu.bl< 

cood11lon and hu.s bern repealed inthi:; ~pon.. 

We fii!IO IM:Itt..l other tnattcrs involnng intcm:.J conrrol over flna d;~l rc-ponmg und ns operatiOn 

thllt "<: do oot (.'Onsidcr to b(' rcpo:rtuble condilion.s:. The"" mallei'&. ulong whh funhcr lcxhnical 

de1a1b und n:lutt.'d rc•.:~: nmendatio s of the n:po11ablo condltiOOJ., will b: reponed to 1.he GPO 

lllllna~c K"ntma scparate IC'Uer. 

C0\JI•LIA1\CE WITH LAWS AND REGULATIONS 

Our '"•'- or rotnph.anC'C \lol.th t'atain pro\oiSklns of Ill .... ") IU\d f't't'Ul&tiom.. " described m tbt' 

RC'tipONolbthtJC$ sec1100 of this npon. disclosed no tm.uncn of nt'lnC'OmplWJtt thal vc- n:qund 

to br tqlOfk'd bcrtaa uodcT Gol't'I'DIIImr A•dwng S10a.:lutth 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

3 4

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 

• P1\"paring l.be consolidntcd llnancial UIJ~n-;cnts in 1.'>0nformity witb ac .. 'Ounting principles 

gencmlly nett!)(~d in the Unit ed S!atcs of America.. and for preparing the supplcm~nlnl 

in10m12tion and Ma.nugcmc-m's s~o'USSion and Analysis: 

• bstubhshmg tmd maintmning mtemal contml over financial reportmg: und 

111 fulfilling llti~ teSp<>I\Sihility, C&~ im:u el) :uw! judgmi.'fUS by rn:ul:tgcrnc•u arc required 10 assess Uw: 

e>:ptctcd benefi ts and u l:ucd CO$lS or internal cQtnw1 pol ide$. Occause of inhel'cm limit:ltiMs in 

intetll:tl l'()lllrol, misstatcmcms, due tn ctmc- or fr.:tud u1:1y rlC\'I:Ohcless occur :md 1\01 tx: dl.'tl:'ctcd. 

A wllltJr,\' ' ll r.i ln~IIIIJlty 

Out responsibility is 10 express :m opi11io11 on 1hc liscal yeJ1t 2002und 2001 eonsolid.:nOO lituncial 

sliltcment.; of the GPO based on our nudits. We conducted our audits in accordance with auditins 

sLnnW:lrds: g.cncrally ncttptcd in the United Sl!lu.'S of America. :uwi the starubtds applic.uhlc to 

financial audil<> rontajned in Gtn'ffn11re111 A11ditiJ1fl Stmliku·ds. Those st:tndtltds require t~lt we 

!)fan ttnd pcrfonn the uudit'i. LO obt:ain reasonable assura.ncc about whNhL'f the 1.'-0nsaJidatcd 

financial statements arc frc~ of material misstatement. 

An :!udi1 includes: 

• E:wmining.. on n test basis. C\'tdcncc supporting the amounts and disclosures m the 

consolidated fin.,ndal st.mcmcms: 

• Assessin{l.t ~ :te<:(mntin~ principl~ "*'I ilil<l s.isn iii ~nl cstimmes m\)1)~ by mu n; lt~lll'.'Tl t; iiJid 

• Evnluati:ng the owt:tll linancio1 !>lnu.•mcm pi\"SroUition. 

We nrc nJso responsib-le lOr expn'SSing an opinion. based on our ~am n:l io , oo whether 

mtmsgcmcnt's ass~n ons rcg11rding the eOi:'l.'tivcness of imemal control O\ cr financial reporting 

lltc fairly st::ued. in all 1nuterial respcccs. based on criteria cstohlishcd undL'f GPO lnsuuction 

825.18A. /menull Comrt,/ Program. We eonduct;.-d our ex:unin:uion ofmanngcmcm"s assenions 

reg111ding the ~llCcti vcncss or the GPO's m~"mal comr<ll ovc•· li nt~ndal reponing in place as of 

September 30. 2002. and for the )'elr then ended. in acoordnnce with auc:uation slandards 

ffiablishcd by the Antocrican Institute ofCt't'tiftcd Public Aecoumants. 

We did not evaluate all intcm.al contml rele\'ant to opcrnting objc...:ti,·es ns broadly defined by 

GPO Instruction 825.1 8A. We limited our inlcmal conu-ol tcsting to thOS< controls n-c..xossary to 

achieve the objccli\'cS outlined in our op-inion on management's u.sscnions abou1 the d lt.'Ctin:ness 

of intcrnlll control over linandal repomng. Bcx-1ms~ or inherent limiunioos in internal control. 

fruud muy occur and not be detc~ . Also projections of any e\'aluation of intcrn!ll control O\'er 
INDEPENDENT AU D I TO R S R E P O RT ’

3 5

ANNUAL REPORT FISCAL YEAR 2002 

'••mu.ll rt'f'tlr\~ w ru~ pmoch an: ""t,«t 10 the n~l. lhM rh: lfllmul "'"'uul rn"--at~ m:l} 

~"\Wnnt' 11\Jdtq,a;~~,: ~&rlooC' of~ '" ~IKll'l' til' chic thr ck~ of a.•.phano: •••h dw 

r-~1·\-IC"' .tnd Jl""'-'~ m:J) dtft:n('nk 

\~ ~11 tlr oh1.1111111' UoN•nabk ;a,<;;~ i"'JnCt: al'lttu• Y.tk!th.:r lh\.' \:tMI'O(II!,I.ltcd lin.ulll!ial «t:liL'111Cn(.l. :a:ri!' 

r~" ,,r m:1h::rial m•~S .!ItCnk!'ut., Y.C p..:tf~lrn~o :t.l t..:~h M the (,1,0' .. \-"(\ntJ"Iia,lcc \\Uh cemun 

prm j,iu.-.. ,,r J~y. .c '"'"'rcsu li illl~, ttc'neomrti:~ et' "ich 

"'"'"h ~m d hiiH' a dil\lCI rn:1h.:ri:d L'ifd't 

till lhtJ th.:kl'lltin;ui,,n (If COi\Sol'l d.'lt~ fio:mci:•l !iliiiCul""nl ·'"'''""''· We lirmccd our t.::SI (If 

tOIIIJIIi.lll'-'tt hi the j\1'()\ j-;,iOll." d!!$Cri\)c,j ir1 tht~ pi\'C"C,IIng ll l..:"lll:lol, lllld '\\ C did IIC\1 IC:O:I CI,Jit!J'Ii:lnee 

w11h ull l1ms :uwJ cg l:uit"'~ :lppliC1lblc 10 11~ CWO, Pr(l\ iding .m t!piniuft 011 ecwnpli:uli.X: '' ith 

1,1\''" :uMJ r.:ij,u.latil•ns " a!> nnt :.\1\ ohjce1 i \ ..-: C'f 0111 :tud it, 111M! I)C;~~urdi 11gl y, "'c '''' IW'II Clj'IX:~>S !>u..:h 

fin ••pini\wt. 

~llt ii ' 

l'hti! ''-1'11'11 '" in1.!!\lk."'CI "t)lely rot' ~ mfi.'ln...,t~ '"" u...: o( lht: Puhhc Pwr~cr, lhe Join1 

< onlJfltlk-'C '"' flnnut~s. tho! GPO '"~"~~,11. .lii..S t.lw (if'(l' .. Otl"IO." ••f ln~'k-'-""t.l...., (.'j.contnl, :~nd ~ 

n~lll•nk."f•"\1 Ill h! and \l~ld '""' hr u~ t') lin)'~ clChct 'tg" d~ ~.r ... ..s ft3""-~ 

fcbna.u) 7. :!OOJ 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

SECTION III 

Consolidated 

Financial Statements 

U N I T E D P R I N T I N G O F F I C E 

3 6

S TAT E S G OV E R N M E N T 
C O N S O L I DAT E D F I N A N C I A L S TAT E M E N T S 

U.S. GOVERNMENT PRINTING OFFICE

Consolidated Balance Sheets 

For the Fiscal Years Ended September 30, 2002 and 2001 

(Dollars in thousands) 

ASSETS

Current assets 

Fund balance with the U.S. Treasury (Note 2) 

Accounts receivable, net (Note 3) 

Inventories (Note 4) 

Prepaid expenses 

Total current assets 

Property, plant, and equipment, net (Note 5) 

Total assets 

LIABILITIES AND NET POSITION 

Current liabilities 

Accounts payable and accrued expenses (Note 6) 

Deferred revenues (Note 7) 

Accrued annual leave 

Total current liabilities 

Other liabilities 

Workers’ compensation liability (Note 8) 

Total liabilities 

Commitments and contingencies (Notes 9 and 10) 

Net position (Note 11) 

Cumulative results of operations: 

Retained earnings 

Invested capital 

Unexpended appropriations 

Total net position 

Total liabilities and total net position 

2002 2001

$211,338 $209,642

121,488 126,934

19,599 22,458

455 374

352,880 359,408

51,026 50,966

$403,906 $410,374

$70,707 $74,162

64,805 59,512

10,056 10,048

145,568 143,722

91,216 67,653

236,784 211,375

13,327 52,092

92,879 92,879

60,916 54,028

167,122 198,999

$403,906 $410,374

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

3 7

ANNUAL REPORT FISCAL YEAR 2002 
2002 2001

FINANCIAL YEAR IN REVIEW — FISCAL YEARS 2002 AND 2001 

U.S. GOVERNMENT PRINTING OFFICE

Consolidated Statements of Revenues and Expenses 

For the Fiscal Years Ended September 30, 2002 and 2001 

(Dollars in thousands) 

OPERATING REVENUES 

Printing and binding 

Sales of publications 

Appropriations 

Reimbursements 

Total operating revenues 

OPERATING EXPENSES 

Printing and reproduction 

Personnel compensation and benefits 

Supplies and materials 

Rents, communications, and utilities 

Publications sold 

Depreciation and amortization 

Other services 

Surplus publications 

Travel and transportation 

Total operating expenses 

Loss before other operating expenses 

OTHER OPERATING EXPENSES 

Changes in workers’ compensation liabilities (Note 8) 

Impairment loss (Note 16) 

NET LOSS 

$555,170 $550,435 

37,984 42,407

104,626 115,131 

4,528 4,435 

702,308 712,408

421,266 415,449

203,803 203,759

36,090 39,126

23,836 24,783

8,804 9,558

7,022 7,338

6,994 8,333

5,657 2,270

4,038 3,340

717,510 713,956

(15,202) (1,548)

(23,563) (31,436)

- (12,037)

$(38,765) $(45,021) 

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

3 8

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
C O N S O L I DAT E D F I N A N C I A L S TAT E M E N T S 

U.S. GOVERNMENT PRINTING OFFICE

Consolidated Statements of Cash Flows 

For the Fiscal Years Ended September 30, 2002 and 2001 

(Dollars in thousands) 

2002 2001

CASH FLOWS FROM OPERATING ACTIVITIES 

Net loss $(38,765) $(45,021)

Adjustments to reconcile net loss to net cash 

Provided by (used in) operating activities: 

Depreciation and amortization 7,022 7,339

Impairment loss - 12,037

Loss on disposal of property, plant, and equipment 45 (61)

Revenue from donated assets - (170)

Changes in assets and liabilities: 

(Increase) decrease in assetsAccounts receivable 5,446 19,273

Inventories 2,859 (1,791) 

Prepaid expenses (81) 357

Increase (decrease) in liabilitiesAccounts payable and accrued expenses (3,455) (23,135)

Deferred revenue 5,293 (25,118)

Accrued annual leave 8 (401)

Workers’ compensation liability 23,563 31,436

Total adjustments 40,700 19,766

Net cash provided by (used in) operating activities 1,935 (25,255)

CASH FLOWS FROM INVESTING ACTIVITIES 

Capital expenditures (7,374) (2,387)

Proceeds from sale of property, plant, and equipment 246 107

Net cash used in investing activities (7,128) (2,280)

CASH FLOWS FROM FINANCING ACTIVITIES 

Increase in unexpended appropriations 6,889 12,308

Net cash provided by financing activities 6,889 12,308

Net increase (decrease) in fund balance 

with the U.S. Treasury 1,696 (15,227)

Fund balance with the U.S. Treasury, beginning of year 209,642 224,869

Fund balance with the U.S. Treasury, end of year $211,338 $209,642

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

2002 

3 9

ANNUAL REPORT FISCAL YEAR 
F I N A N C I A L Y E A R I N R E V I E W — FISC AL YEARS 2002 AND 2001 

Notes to Consolidated 

Financial Statements 

The Public Printer 

of the United States, 

appointed by the President of 

the United States with the advice 

and consent of the U.S. Senate, 

serves as the Agency head and 

oversees GPO’s programs 

and operations. 

4 0

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
NO TES T O CONSOLID A T E D F I N A N C I A L S T A TEMENT S 

BASIS OF PRESENT ATION AND CONSOLIDATION 1. Summary of Significant 

Accounting Policies GPO prepares annual financial statements that meet the

A. Reporting Entity 

The U.S. Government Printing Office (GPO or Agency) is a 

Legislative Branch agency of the Federal government. GPO’s 

mission and authority is derived from various statutes 

codified in Title 44 Public Printing and Documents of 

the United States Code. The Congress established GPO to 

provide the Federal government with an efficient and 

effective means for the production, procurement, and 

dissemination of Government information. 

The Public Printer of the United States, appointed by the 

President of the United States with the advice and consent 

of the U.S. Senate, serves as the Agency head and oversees 

GPO’s programs and operations. These programs and 

operations are funded through a business-type revolving 

fund, authorized by 44 U.S.C. §309, and appropriations 

provided by the Congress. The GPO Revolving Fund 

maintains a system of accounts and records transactions to 

comply with the requirements of Section 309 of Title 44. 

GPO’s programs and operations are subject to the oversight 

of the Joint Committee on Printing (JCP) which is 

comprised of members of the U.S. House of Representatives 

and the U.S. Senate. GPO relies on appropriated funds to 

finance certain information dissemination programs of the 

Superintendent of Documents and Congress’ printing and 

binding requirements. Budget requests are subject to review 

by the House and Senate Appropriations Committees’ 

Subcommittees on Legislative Branch Appropriations. GPO 

also receives funds from customer agencies as 

reimbursement for products and services, and from the 

public for the sale of publications. 

B. Accounting Environment 

BASIS OF ACCOUNTING 

As allowed by the Federal Accounting Standards Advisory 

Board (FASAB), the consolidated financial statements of 

GPO have been prepared on the accrual basis of accounting 

in conformity with accounting principles generally accepted 

in the United States of America (GAAP), applicable to 

commercial enterprises. Under the accrual method, revenues 

are recognized when earned, and expenses are recognized 

when a liability is incurred, without regard to receipt or 

payment of cash. 

requirements of 31 U.S.C. §3515(b) in accordance with 

44 U.S.C. §309(e). The accompanying consolidated 

financial statements include all funds under GPO’s control 

that have been established and maintained to account for the 

resources of the Agency. All significant intra-agency 

balances and transactions have been eliminated in the 

preparation of the consolidated financial statements. 

The GPO financial statements do not include the effects of 

centrally administered assets and liabilities of the Federal 

government, as a whole, such as interest on the public debt, 

which may in part be attributable to GPO. Other Federal 

agencies make financial decisions and report certain financial 

matters on behalf of the entire Federal government, 

including matters in which individual agencies may be an 

indirect party. Financial matters maintained or reported by 

other Federal agencies in which GPO is indirectly involved 

include employee benefit plans and certain legal situations. 

FUNDS

GPO maintains a revolving fund and a general fund to 

account for its various programs and operations. Each of 

these funds is a distinct fiscal and accounting entity that 

accounts for cash and other financial resources together 

with all related liabilities and equities. 

Revolving Fund – The GPO Revolving Fund is an intergovernmental fund established by Congress on July 1,

1953 (44 U.S.C. §309). This business-type revolving fund 

is available without fiscal year limitation for financing the 

operation and maintenance of GPO, except for those 

programs of the Superintendent of Documents that are 

funded by specific appropriations. 

The GPO Revolving Fund is a self-sustaining financial entity 

used primarily to temporarily finance and account for GPO’s 

Printing and Binding Operations and the Sales of Publications 

Operations. Accordingly, the two major sources of revenue to 

the revolving fund are reimbursements from the Congress and 

other Federal customers for providing printing and binding 

services, and publication sales to the public. 

The Printing and Binding Operations account for the 

revenues and expenses associated with services provided by 

GPO’s printing plants (i.e., in-plant printing) and Printing 

Procurement Program (i.e., commercially procured printing). 

4 1

ANNUAL REPOR T F I S C A L Y E A R 2002 
F I N A N C I A L Y E A R I N R E V I E W — FISC AL YEARS 2002 AND 2001 

The costs of these services are recovered through rates 

charged customers that include direct costs, overhead, and 

related expenses permitted under 44 U.S.C. §309(b). 

The Sales of Publications Program sells Federal government 

information products to the public. The sales price of a 

Federal government publication is established in accordance 

with 44 U.S.C. §1708. Book dealers and purchasers of large 

quantities may be allowed a price discount of up to 25

percent for purchases. 

General Fund – The General Fund is financed by two 

annual congressional appropriations. These appropriated 

funds finance the cost of GPO’s support of the Congress 

and the information dissemination provided without charge 

to recipients by the Superintendent of Documents. 

The larger of the two annual appropriations made available to 

GPO is the Congressional Printing and Binding Appropriation. 

This appropriation is used to pay the cost of the printing and 

binding requirements of the Congress, and the printing, 

binding, and distribution of publications authorized by law to 

be distributed without charge to the recipient. 

The second annual appropriation made available to GPO is 

the Superintendent of Documents, Salaries and Expense 

Appropriation. This appropriation is used to fund the 

following four information dissemination programs of the 

Superintendent of Documents: the Federal Depository 

Library Program (FDLP) which includes GPO Access, the 

Cataloging and Indexing Program, the By-Law Distribution 

Program, and the International Exchange Program. The 

majority of these appropriated funds finance the FDLP, the 

largest and most visible Federal government information 

dissemination program. 

These annual appropriations are used to reimburse the GPO 

Revolving Fund for the cost of printing and binding, and 

other services and supplies furnished by GPO in accordance 

with Title 44 Public Printing and Documents. 

C. Fund Balance with U. S. Treasury 

Fund balance with the U.S. Treasury represent all balances in 

GPO accounts with the Department of the Treasury. 

D. Accounts Receivable 

Accounts receivable consist of intra-governmental amounts 

due to GPO, as well as amounts due from the public. 

Accounts receivable are shown net of a provision for 

uncollectable accounts. The allowance for doubtful 

accounts is based on GPO’s recent collection experience. 

E. Inventories

Inventories of publications held for sale are valued at the 

lower of cost, using the weighted average cost method, 

or market. 

Inventories of paper, materials and supplies include the cost 

of production material (e.g., blank paper, spare parts, ink, and 

book cloth), as well as the cost of administrative-use 

supplies. These inventories are valued at the lower of cost, 

using the weighted moving average cost method, or market. 

F. 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 fair market value. 

Major alterations and renovations are capitalized while 

normal maintenance and repair costs are expensed as 

incurred. Depreciation and amortization of property, plant, 

and equipment is calculated on a straight-line basis over the 

estimated useful life of the asset. 

The estimated useful lives for buildings and improvements 

range from 42 to 50 years, plant machinery and equipment 

from 5 to 20 years, and motor vehicles from 3 to 6 years. 

Leasehold improvements are assigned a useful life of 3 years 

or the life of the lease, whichever is less. Furniture and 

fixtures and computer hardware have estimated useful lives 

of 5 years. Computer software is assigned a 3-year useful 

life. Land is not depreciated. 

G. Deferred Revenue 

Deferred revenue results from the receipt of customer 

remittances for products or services that will be delivered or 

provided in the future. Deferred revenue is recorded as 

revenue when products or services are produced or provided. 

H. Accrued Annual Leave

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

liability is reduced when leave is used. Each year the annual 

leave liability is adjusted to reflect current pay rates. Sick leave 

4 2

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
NO TES T O CONSOLID A T E D F I N A N C I A L S T A TEMENT S 

and other types of non-vested leave are expensed when used. 

There is no limit on the amount of sick leave that may be 

accumulated, and no payment is made for unused sick leave. 

I. Workers’ Compensation Liability 

The Federal Employees’ Compensation Act (FECA) provides 

income and medical cost protection to covered Federal 

civilian employees injured on the job, employees who have 

incurred a work-related occupational disease, and 

beneficiaries of employees whose deaths are attributable to 

job-related injuries or occupational diseases. The Department 

of Labor (DOL) administers the FECA Program, which 

provides workers’ compensation benefits to GPO employees 

and others through the Special Benefit Fund. GPO annually 

reimburses DOL for the cost of FECA benefit claims paid 

on GPO’s behalf. 

Future workers’ compensation estimates are generated from 

the application of actuarial procedures developed by DOL to 

estimate the liability for FECA benefits. The liability for 

future workers’ compensation benefits includes the expected 

liability for death, disability, medical, and miscellaneous costs 

for approved compensation cases related to injuries incurred 

but not reported. The liability is determined by utilizing 

historic benefit payment patterns related to a particular period 

to estimate the ultimate payments related to that period. 

J. Revenue Recognition

Printing and Binding – By law, GPO must be 

reimbursed for the cost of printing and binding services 

furnished customers. Revenues from in-house printing and 

binding work are recognized on a value-added basis, as work 

is performed, while revenues from commercially procured 

printing and binding are recognized on the date the contract 

requirements are fulfilled, which is generally the date of 

shipment by the commercial printer to the customer agency. 

Sales of Publications – Revenues from the sale of 

publications and subscriptions are recognized when shipped. 

Appropriations – Appropriation revenues are recorded 

when qualifying expenses are incurred. The amount of 

appropriations expended and the major products or programs 

funded by appropriations are presented in Note 12B. 

Unexpended appropriations are recorded as a component of 

Net Position. Unexpended appropriation balances are 

generally canceled after five years. 

Reimbursements – Revenues for the distribution of 

publications for other Federal agencies is recorded when 

services have been performed. 

K. Expense Recognition 

Printing and Reproduction – This expense represents 

the cost of printing and reproduction services obtained from 

the private sector to fill customer orders. The expense is 

generally recorded on the date of shipment, and is shown net 

of prompt payment discounts. 

Personnel Compensation and Benefits – Personnel 

compensation primarily consists of wages and salaries paid to 

GPO employees. Personnel benefits include the GPO’s 

contributions toward employee life and health insurance, and 

retirement. Personnel compensation and benefits are recorded 

as expenses when earned by employee. 

Supplies and Materials – The most significant cost 

component in this category is paper used to satisfy in-house 

printing requirements as well as customer orders for blank 

paper. The expense is recorded when paper is drawn from 

inventory or delivered to customers (direct mill-to-customer 

agency shipments). This category also includes all supplies 

and materials that are not capitalized, such as personal 

computers, furniture, office supplies, spare parts, ink, etc. The 

cost of these items is expensed as issued from inventory. 

Rents, Communications, and Utilities – Rents 

include leases with the General Services Administration 

(GSA) and other landlords for space, plus rentals of 

equipment and vehicles. Communications includes 

telecommunication services and postage expenses. Utilities 

include electricity, gas, steam, and water service. Expenses are 

recorded as services are provided. 

Publications Sold – This expense represents the cost of 

publications sold and subscription copies issued to 

customers. Expenses are recorded at the time of sale or 

issuance, respectively. 

Depreciation and Amortization – Depreciation and 

amortization is the allocation of an asset’s cost over the 

asset’s estimated useful life. Assets include building 

appurtenances, production and office equipment, motor 

vehicles, and software costing over $25,000. The 

recordation of depreciation and amortization expense begins 

once the asset is placed in service. 

4 3

ANNUAL REPOR T F I S C A L Y E A R 2002 
F I N A N C I A L Y E A R I N R E V I E W — FISC AL YEARS 2002 AND 2001 

Other Services – This expense represents the cost of 

services provided by contractors for audits, investigations, 

consulting, tuition, and training. The expenses are recognized 

when services have been provided. 

Surplus Publications – This expense represents an 

estimate of the cost of potentially unsaleable publications 

held for sale at year end. The estimate is based on each 

publication’s sales history, quantity held in inventory, and an 

assumed 18-month life cycle. 

Travel and Transportation – This category includes the 

official travel cost of persons conducting audits, inspections, 

and investigations. Transportation includes the cost of 

shipping printing and reproduction products from GPO or 

contractors to customer agencies, Depository Libraries, or 

other GPO locations. Travel expenses are accrued when they 

are estimable, while transportation costs are generally 

recorded on the date of shipment. 

L. Consolidated Statements of Cash Flows 

The consolidated statements of cash flows identify cash 

receipts and disbursements and classify each into operating, 

investing, and financing activity categories. The disclosure of 

this information is intended to help assess the ability of 

GPO to generate funds from current operations, to identify 

financing acquired from outside sources, and to identify the 

major non-operating (investing) uses of funds. 

M. Use of Estimates 

The preparation of financial statements in accordance 

with accounting principles generally accepted in the 

United States of America requires management to make 

estimates and assumptions that affect the reported amounts 

of assets and liabilities, as well as the disclosure of 

contingent assets and liabilities at the date of the financial 

statements, and the amount of revenues and expenses 

reported during the reporting period. Actual results could 

differ from these estimates. 

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. 

4 4

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
2002

NO TES T O CONSOLID A T E D F I N A N C I A L S T A TEMENT S 

2. Fund Balance with the U.S. Treasury 

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

Treasury, as of September 30, 2002 and 2001 follows. 

Fund Balances: 

Revolving fund: 

Unrestricted

Restricted:

Deposit accounts 

Other

On-hand or in-transit 

Total revolving fund 

Appropriated Funds: 

Congressional printing and binding 

Salaries and expenses 

Supplemental and other 

Total appropriated funds 

Total

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

Unobligated balance: 

Available

Unavailable

Total

Obligated balance not yet disbursed 

Total

(Dollars in thousands) 

2001

$72,544 $81,728

53,426 47,607

23,015 23,754 

54 262

149,039 153,351

26,780 21,118

17,150 16,371

18,369 18,802

62,299 56,291 

$211,338 $209,642 

$14,780 $35,316 

71,795 66,409 

86,575 101,725 

124,763 107,917

$211,338 $209,642 

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

Restricted funds are comprised of customer deposit accounts and employees’ accrued salaries and annual leave. 

These funds cannot be used other than for those purposes. 

Supplemental and other appropriations include unexpended appropriations made to the GPO for specific purposes as discussed in Note 11B. 

Between fiscal year 1998 and fiscal year 2001, GPO provided the U.S. Census Monitoring Board (CMB) with 

administrative support services for a fee. At September 30, 2002, the U.S. Treasury maintained an account balance for CMB, which was reported by the U.S. Treasury under GPO’s accounts. GPO, however, did not include 

this amount in its Agency’s consolidated financial statements. At September 30, 2002, the CMB cash balance 

with the U.S. Treasury was $439,993 at September 30, 2002, and $1,425,272 at September 30, 2001. 

4 5

ANNUAL REPOR T F I S C A L Y E A R 2002 
F I N A N C I A L Y E A R I N R E V I E W — FISC AL YEARS 2002 AND 2001 

3. Accounts Receivable

Accounts receivable as of September 30, 2002 and 2001, consists of the following. 

Federal Agencies: 

Unbilled completed work 

Unbilled work in process 

Billed completed work 

Subtotal

Other receivables: 

The public 

GPO employees 

Subtotal

Total accounts receivable 

Allowance for doubtful accounts 

Total accounts receivable, net 

(Dollars in thousands) 

2002 2001

$93,416 $108,954

12,740 10,062

16,335 9,340

122,491 128,356 

971 622

1,029 1,148

2,000 1,770 

124,491 130,126

(3,003) (3,192)

$121,488 $126,934

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, 2002, this balance included finished work for which invoices have not been prepared of $47.4 million, 

unbilled commercial printing of $37.2 million, and finished work of $8.8 million that was collected via the U. 

S. Treasury’s Intra-governmental Payment and Collection (IPAC) system in October 2002. At September 30,

2001, this balance included finished work for which invoices had not been prepared of $33.4 million, unbilled 

commercial printing of $45.5 million, and finished work of $30.1 million that was collected via IPAC in 

October 2001. 

Unbilled work in process represents the value of work performed on customer orders as of September 30,

2002 and 2001, that, by law, must be reimbursed by GPO customers. 

Employee accounts receivable includes amounts owed by current and former employees 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. 

4 6

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
2002

2002

NO TES T O CONSOLID A T E D F I N A N C I A L S T A TEMENT S 

4. Inventories

The components of inventories as of September 30, 2002 and 2001 are as follows. 

(Dollars in thousands) 

2001

Publications for sale $7,713 $9,975

Paper 5,506 5,564

Materials and supplies 6,380 6,919

Inventories $19,599 $22,458

5. Property, Plant, and Equipment 

Net property, plant, and equipment as of September 30, 2002 and 2001 consisted of the following. 

Land

Buildings and improvements 

Plant machinery and equipment 

Computers and computer software 

Furniture and fixtures 

Motor vehicles 

Leasehold improvements 

Construction and software in process 

Total

Less: Accumulated depreciation and amortization 

Net property, plant, and equipment 

(Dollars in thousands) 

$ 9,971 $9,977

68,542 64,124

77,972 75,133

22,844 27,590

3,247 3,084

833 3,185

1,035 1,049

1,044 1,136

185,488 185,278 

(134,462) (134,312)

$51,026 $50,966

4 7

ANNUAL REPOR T F I S C A L Y E A R 2002 

2001
F I N A N C I A L Y E A R I N R E V I E W — FISC AL YEARS 2002 AND 2001 

6. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2002 and 2001 were composed of 

the following. 

Accounts payable: 

Commercial printing 

U.S. Government agencies

Other 

Total accounts payable 

Accrued salaries and wages 

State and local payroll taxes 

Total accounts payable and 

accrued expenses 

(Dollars in thousands) 

2002 2001

$34,704 $42,701

17,184 12,848

5,861 4,908 

57,749 60,457

12,216 12,968

742 737

$70,707 $74,162

7. Deferred Revenues 

As of September 30, 2002 and 2001, deferred revenues from customers consisted of the following. 

(Dollars in thousands) 

2002 2001

Deposit accounts $53,426 $47,607

Subscriptions 8,459 9,206

Unfilled orders 766 1,588

Advance billings 2,154 1,111

Total $64,805 $59,512

GPO held about $53.4 million in customer deposit accounts as of September 30, 2002. Government 

customers had advanced about $48.1 million for printing and binding, and about $5.3 million for sales of 

publications. The restricted funds in these deposit accounts will be applied to future orders specified by 

customers, or refunded upon request. 

GPO deferred the recognition of about $8.5 million in revenues for subscription services that will be provided 

to customers in the future. Customers pay for subscriptions to the Congressional Record and other 

Government publications in advance of delivery by the Superintendent of Documents. The revenues from 

subscriptions will be recognized as these periodicals are published and distributed to subscribers. 

4 8

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
NO TES T O CONSOLID A T E D F I N A N C I A L S T A TEMENT S 

GPO also deferred the recognition of $766,000 in revenues for unfilled orders of Government publications. 

The revenue from these sales will be recognized when the Superintendent of Documents fills the customer’s 

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

Finally, GPO deferred the recognition of about $2.2 million in revenues for advance billings to Government 

customers. Advance billings are occasionally used to finance the cost of producing certain large printing and 

binding jobs. GPO will recognize the revenue as work is completed. 

8. Workers’ Compensation Liability 

The liability estimate recorded by GPO for future workers’ compensation benefits was $91.2 million as of 

September 30, 2002, and $67.7 million as of September 30, 2001. The liability estimate for the current year 

originated from the Department of Labor (DOL), which develops an estimate of future workers’ compensation 

benefits for each department and agency to use for financial accounting and reporting each year. The prior year 

liability estimate was developed internally by GPO using a statistical methodology. GPO adopted the DOL 

actuarial liability estimate to comply with new intragovernmental accounting requirements for FECA in the U.S. 

Treasury, Financial Management Service, Federal Intragovernmental Transactions Accounting Policies 

Guide, dated September 28, 2001. The impact of the change in adopting the DOL liability estimate on the 

consolidated statement of revenues and expenses for the year ended September 30, 2002 is not available. 

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

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

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

payments related to that period. The methodology provides for the effects of inflation and adjusts historical 

payments to current year constant dollars by applying wage inflation factors (cost of living adjustments or 

COLA’s) and medical inflation factors (consumer price index medical or CPIM’s) to the calculation of projected 

benefits. The compensation COLA’s and CPIM’s used in the projections for 2002 and 2001 were as follows. 

COLA CPIM

Fiscal Year 2002 2001 2002 2001

2002

2003

2004

2005+

N/A

1.80%

2.67%

2.40%

3.00%

2.56%

2.50%

2.50%

N/A

4.31%

4.01%

4.01%

4.15%

4.09%

4.09%

4.09%

Projected annual payments were discounted to the present value based on OMB’s interest rate assumptions for 

ten year Treasury notes. For 2002, interest rate assumptions were 5.2 percent in year one and thereafter. For 

2001, interest rate assumptions were 5.21 percent in year one and thereafter. 

2002 

4 9

ANNUAL REPOR T F I S C A L Y E A R 
F I N A N C I A L Y E A R I N R E V I E W — FISC AL YEARS 2002 AND 2001 

9. Commitments

9. A. Operating Leases

As of September 30, 2002, GPO was committed to various non-cancelable commercial operating leases, 

primarily covering warehouse, retail, and office space. Some of these leases contain escalation clauses and renewal 

options. A schedule of future minimum rental payments required under operating leases by type, which have 

initial or remaining non-cancelable lease terms in excess of one year, follows. 

(Dollars in thousands) 

Fiscal Year Warehouse Retail Office Total 

2003 $1,930 $243 $446 $2,619

2004 2,081 169 437 2,687

2005 1,459 159 432 2,050

2006 736 111 253 1,100

2007 495 96 109 700

2008 and beyond 288 - 7 295

Total minimum lease payments $6,989 $778 $1,684 $9,451

Rent expense for the years ended September 30, 2002 and 2001, were $5,742,000 and 

$5,577,000 respectively. 

9. 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 $101.8 million and $109.7 million as of 

September 30, 2002 and 2001, respectively. 

10. Contingencies

Administrative Proceedings, Legal Actions, and Claims 

GPO is a party in various administrative proceedings, legal actions, and claims brought against the Government 

by employees, contractors, and other parties. The uncertainty involving the outcome of these pending matters 

will be determined when future events occur or fail to occur. 

GPO did not record any liability for contingencies as of September 30, 2002 and 2001. Management and 

legal counsel were of the opinion that incurrence of a liability was not probable for any of these contingent 

matters. In some cases, legal matters relate to contractual arrangements GPO has entered into for goods and 

services procured on behalf of other Federal agencies. The costs of administering, litigating, and resolving these 

actions are borne by the GPO Revolving Fund unless the costs can be recovered from another Federal agency. 

Certain legal matters in which GPO is a named party may be administered and litigated by the U.S. Department 

of Justice (DOJ) on GPO’s behalf. In these cases, amounts paid under any decision, settlement, or award are 

funded by the DOJ Special Judgment Fund. The DOJ paid a total of $169,000 and $34,000 from the fund 

5 0

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
NO TES T O CONSOLID A T E D F I N A N C I A L S T A TEMENT S 

on behalf of the GPO for the years ended September 30, 2002 and 2001, respectively. These amounts are not 

reflected in GPO’s consolidated financial statements. 

11. Net Position

11. A. Cumulative Results of Operations

Retained Earnings — Retained earnings include net operating results since its inception less returns to the 

U.S. Treasury from the sales of publications deposited as “miscellaneous receipts” in the Treasury of the United 

States, and by transfers to other Federal agencies. 

Invested Capital — Invested Capital represents Federal resources directly appropriated to GPO by Congress to 

invest in GPO assets, namely land, buildings, equipment, and capital. The Revolving Fund was established in 

1953 with capital appropriations of $33.8 million and buildings and land with a fair market value in 1953 of 

$415,000. Subsequently, Congress provided additional funding to GPO of $75.5 million for capital, land, and 

other improvements. 

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

30, 2002 and 2001. 

(Dollars in thousands) 

Retained Invested

Cumulative Results of Operations Earnings Capital Total 

Balance at September 30, 2000 $97,113 $92,879 $189,992 

Net loss for fiscal year ended September 30, 2001 (45,021) - (45,021) 

Balance at September 30, 2001 $52,092 $92,879 $144,971 

Net loss for fiscal year ended September 30, 2002 (38,765) - (38,765) 

Balance at September 30, 2002 $13,327 $92,879 $106,206 

5 1

ANNUAL REPOR T F I S C A L Y E A R 2002 
FIN ANCIAL FISC AL YEAR IN REVIEW — YEARS 2002 AND 2001

11. B. Unexpended Appropriations

As of September 30, 2002, GPO had obligated services for the unexpended appropriations for the 

Congressional Printing and Binding of $26,780,000, and Salaries and Expenses of $15,767,000, for a total 

of $42,547,000. These obligated funds represent estimates of expected total costs of open orders as of 

September 30, 2002. At September 30, 2001, these amounts were $21,118,000 for the Congressional 

Printing and Binding and $14,108,000 for Salaries and Expenses, totaling $35,226,000. 

In fiscal year 2001, the Congress (Public Law 107-20) authorized the use of $9.5 million from the 

Congressional Printing and Binding Appropriations to cover the cost of congressional work submitted but not 

completed. At the end of fiscal year 2002, a balance of about $7.1 million remained to cover congressional 

requirements. 

Also, Congress authorized the use of $3.3 million from the Salaries and Expenses Appropriations to pay for the 

printing and distribution of Government publications selected by the depository libraries. As of September 30,

2002, $3.2 million remained on hand for the intended purpose. 

In August 2001, Congress authorized $6 million to enable GPO to replace antiquated air conditioning and 

lighting systems. Of this amount, about $5.8 million is included as unexpended appropriations as of September 

30, 2002. These replacement systems will be capitalized as fixed assets upon completion, along with internal 

engineering services required in planning and installation. 

In January 2002, under the Emergency Response legislation, GPO received $4 million to improve security and 

establish backup facilities to ensure continuity of key operations in the event of a National emergency affecting 

the Washington, DC area. As of September 30, 2002, about $2.3 million remained in unexpended 

appropriations. 

12. Appropriated Funds 

12. A. Available Appropriations 

Total net appropriations made available, after rescissions and supplemental appropriations, for fiscal years ended 

September 30, 2002 and 2001 follow. 

(Dollars in thousands) 

2002 2001

Congressional printing and binding $81,000 $81,205

Salaries and expenses 29,639 27,893

Total available appropriations $110,639 $109,098

5 2

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
2002

NO TES T O CONSOLID A T E D F I N A N C I A L S T A TEMENT S 

12. B. Expended Appropriations

Expended appropriations for program operations for the years ended September 30, 2002 and 2001 follow. 

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 

Revolving fund: 

Homeland Security 

Air conditioning and lighting upgrade 

Total revolving fund 

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 

(Dollars in thousands) 

2001

$18,648 $19,727

21,902 23,658

16,857 16,742 

6,392 10,878

2,163 2,685

9,376 12,410 

75,338 86,100

23,732 25,188

3,119 3,602

856 592

274 271

27,981 29,653

1,714 -

192 -

1,906 -

$105,225 $115,753

$105,225 $115,753

(599) (622)

$104,626 $115,131

13. Employee Benefit Plans

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

(CSRS) and the Federal Employees Retirement System (FERS), and also makes payroll deductions from employees 

for their pension contributions. The required employer contributions are established by the U.S. Office of 

Personnel Management (OPM). OPM is responsible for government-wide reporting of CSRS and FERS assets, 

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

pension liability and post-employment benefits relative to its employees. 

5 3

ANNUAL REPOR T F I S C A L Y E A R 2002 
FIN ANCIAL FISC AL YEAR IN REVIEW — YEARS 2002 AND 2001

Civil Service Retirement System 

The majority of GPO’s employees were covered by the CSRS, a defined benefit plan. Total GPO (employer) 

contributions to CSRS for employees covered under this retirement program were 9.01 percent of basic pay in 

both fiscal years 2002 and 2001 for Congressional Record indexers, investigators, and law officers; and 8.51

percent of basic pay in both fiscal years for all other employees. GPO’s contributions were $8.5 million and $9

million for the fiscal years ended September 30, 2002 and 2001, respectively. 

Federal Employees Retirement System 

On January 1, 1987, the Federal Employees Retirement System (FERS) was created pursuant to Public Law 99-

335. Using the Social Security system as a base, FERS provides a defined benefit plan (Basic Benefit Plan) and a 

voluntary (defined contribution) plan. Employees first hired after December 31, 1983 were automatically 

covered by FERS and Social Security, while employees hired prior to January 1, 1984 were able to choose 

between joining this plan or remaining in CSRS. 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 to match 

voluntary employee contributions of up to 4 percent of base pay. 

In both fiscal years 2002 and 2001, GPO (employer) contributions to FERS were 15.4 percent of basic pay for 

Congressional Record indexers; 23.3 percent of basic pay for investigators and law officers; and 10.7 percent of 

basic pay for all other employees covered under this plan. Total GPO contributions were $6.1 million and $5.6

million in fiscal year 2002 and 2001, respectively. Contributions by GPO to TSP for fiscal year 2002 and 

2001 were $2.2 million, and $2 million, respectively. 

Social Security System 

For employees covered by FERS, GPO matches contributions to the Social Security Administration (SSA) under 

the Federal Insurance Contributions Act (FICA). GPO contributes matching amounts of 6.2 percent of gross pay 

(up to $84,900 in 2002 and $80,400 in 2001) 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, 2002 and 2001 totaled $6.2 million and $5.9 million, respectively. 

Pension and Other Post-Employment Benefits Provided by Others 

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

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

programs provide benefits to former employees of GPO. 

OPM administered pension programs include CSRS and FERS. Other OPM programs provide health and life 

insurance benefits to active, inactive and retired Government employees. Permanent employees of GPO may 

participate in the Federal Employees Health Benefit Program (FEHBP) and/or Federal Employee Group Life 

Insurance Program (FEGLIP) before and after their retirement. 

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

Federal Government, requires agencies that follow Federal Accounting Standards to recognize their share of the 

normal cost of pension and other post-employment benefits provided by others, such as OPM. To the extent that 

normal costs exceed current contributions, the standard requires that an additional expense be recognized by the 

employing agency for the future estimated cost of post-employment benefits not currently funded. SFFAS No. 5

also requires that the estimated expense amount be offset by an equal amount of imputed financing. OPM, which 

is responsible for these programs, represents the source of imputed financing for the post-employment benefits. 

5 4

U N I T E D S T A TES GO V E R N M E N T P R I N T I N G O F F I C E 
NO TES T O CONSOLID A T E D F I N A N C I A L S T A TEMENT S 

As allowed by the FASAB, GPO has historically elected to prepare its financial statements on the basis of GAAP 

for commercial enterprises, and accordingly has reflected only the current cost of these programs in its financial 

statements since OPM is responsible for funding the normal cost component. 

14. Concentration of Credit Risk 

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

Treasury, accounts receivable, and accounts payable at September 30, 2002 and 2001. GPO estimates the fair 

value of financial instruments at September 30, 2002 and 2001 to be the carrying value. 

15. Major Customers 

GPO’s primary customers are Federal agencies. Revenues from those customers representing 10 percent or more 

of GPO’s revenues follow. 

(Dollars in thousands) 

2002 2001

Amount Percent Amount Percent 

Department of Defense $142,838

Department of the Treasury $94,665

Department of Health & Human Services $76,620

Congress of the United States $77,769

20.3% $123,517 17.3%

13.5% $94,256 13.2%

10.9% $81,037 11.4%

11.1% $76,600 10.8%

16. Impairment Loss, Write-down of Software Development Project 

In fiscal year 2001, GPO management reconsidered the capitalized costs associated with the Superintendent of 

Documents Integrated Processing System (IPS) which has been under development since 1995. The software 

project was initiated to develop a state-of-the-art order processing system to track transactions from order receipt 

to final shipment, as well as handle customer-related issues. As of September 30, 2001, IPS was not fully 

operational and had not been deployed by the Superintendent of Documents to replace legacy systems. 

The capitalized cost of the IPS system was approximately $12 million including hardware items required to 

operate the system. Furthermore, the software was originally assigned a useful life of 5 years upon 

implementation. However, GPO management made the determination that the 6-year delay in activating the 

software had rendered the asset “impaired” and negated the future economic benefit to GPO. This resulted in a 

$12 million write-down in fiscal year 2001. 

5 5

ANNUAL REPOR T F I S C A L Y E A R 2002 
5 6

YEAR IN REVIEW — YEARS 2002 AND 2001 

SECTION IV 

Consolidating and

Supplemental Schedules 

F I N A N C I A L F I S C A L 

(unaudited) 

U N I T E D S T A T E S G O V E R N M E N T P R I N T I N G O F F I C E 
C O N S O L I DAT I N G S U P P L E M E N TA L U N AU D I T E D AND SCHEDULES ( )

U.S. GOVERNMENT PRINTING OFFICE

Consolidating Balance Sheet by Fund Type

As of September 30, 2002 

(Dollars in thousands) 

(Unaudited)

Revolving Fund General Fund 

Congressional 

Printing Sales of Salaries and Printing Total A S S E T S and Binding Publications Expenses and Binding Before 

Operations Operations Appropriation Appropriation Eliminations Eliminations Consolidated 

CURRENT ASSETS 

Funds with U.S. Treasury 

Accounts receivable, net 

Inventories: 

Publications for sale, net 

Paper

Materials and supplies, net 

Total inventories, net 

Prepaid expenses 

Total current assets 

PROPERTY, PLANT, AND EQUIPMENT 

Land

Buildings and improvements 

Plant machinery and equipment 

Computers and computer software 

Furniture and fixtures 

Motor vehicles 

Leasehold improvements 

Construction and software in process 

Less: Accumulated depreciation and 

amortization

Property, plant, and equipment, net 

Total assets 

See accompanying independent auditors’ report. 

$159,681 $7,727 $17,150 $26,780 $211,338 $- $211,338 

177,440 3,497 134 - 181,071 (59,583) 121,488 

- 7,712 - 

5,507 - - 

6,380 - - 

- 7,712 - 7,712 

- 5,507 - 5,507 

- 6,380 - 6,380 

11,887 7,712 19,599 19,599

455 - - - 455 - 455 

349,463 18,936 17,284 26,780 412,463 (59,583) 352,880 

9,971 - -

68,542 - -

77,972 - -

22,844 - -

3,247 - -

833 - - 

1,035 - - 

1,044 - - 

- 9,971 - 9,971 

- 68,542 - 68,542 

- 77,972 - 77,972 

- 22,844 - 22,844 

- 3,247 - 3,247 

- 833 - 833 

- 1,035 - 1,035 

- 1,044 - 1,044 

185,488 - - - 185,488 - 185,488 

(134,462) - - - (134,462) - (134,462) 

51,026 - - - 51,026 - 51,026 

$400,489 $18,936 $17,284 $26,780 $463,489 $(59,583) $403,906 

5 7

ANNUAL REPORT FISCAL YEAR 2002 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

U.S. GOVERNMENT PRINTING OFFICE

Consolidating Balance Sheet by Fund Type

As of September 30, 2002 

(Dollars in thousands) 

(Unaudited)

Revolving Fund General Fund 

Congressional 

LIABILITIES AND NET POSITION Printing

and Binding 

Sales of 

Publications

Salaries and 

Expenses

Printing

and Binding 

Total 

Before 

Operations Operations Appropriation Appropriation Eliminations Eliminations Consolidated

CURRENT LIABILITIES 

Accounts payable and accrued expenses $72,566 $56,207 $1,517 $- $130,290 $(59,583) $70,707 

Deferred revenue 50,268 14,537 - - 64,805 - 64,805 

Accrued annual leave 10,056 - - - 10,056 - 10,056 

Total current liabilities 132,890 70,744 1,517 - 205,151 (59,583) 145,568 

OTHER LIABILITIES 

Workers’ compensation liability 91,216 - - - 91,216 - 91,216 

Total other liabilities 91,216 - - - 91,216 - 91,216 

Total liabilities 224,106 70,744 1,517 - 296,367 (59,583) 236,784 

NET POSITION 

Cumulative results of operations: 

Retained earnings (accumulated deficit) 67,724

Invested capital 90,290

Unexpended appropriations 18,369

Total net position 176,383

(54,397) - - 13,327 - 13,327 

2,589 - - 92,879 - 92,879 

- 15,767 26,780 60,916 - 60,916 

(51,808) 15,767 26,780 167,122 - 167,122 

Total liabilities and total net position $400,489 $18,936 $17,284 $26,780 $463,489 $(59,583) $403,906 

See accompanying independent auditors’ report. 

5 8

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
C O N S O L I DAT I N G S U P P L E M E N TA L U N AU D I T E D AND SCHEDULES ( )

U.S. GOVERNMENT PRINTING OFFICE

Consolidating Schedule of Revenues and Expenses by Fund Type

For the Fiscal Year Ended September 30, 2002 

(Dollars in thousands) 

(Unaudited) 

Revolving Fund General Fund 

Congressional 

Printing Sales of Salaries and Printing Total 

and Binding Publications Expenses and Binding Before 

Operations Operations Appropriation Appropriation Eliminations Eliminations Consolidated 

OPERATING REVENUES 

Printing and Binding $653,738

Sales of Publications -

Appropriations 1,906

Reimbursements -

$- $- $- $653,738 $(98,568) $555,170 

37,984 - - 37,984 - 37,984 

- 27,981 75,338 105,225 (599) 104,626 

4,528 - - 4,528 - 4,528 

Total operating revenues 

OPERATING EXPENSES 

Printing and reproduction 

Personnel compensation and benefits 

Supplies and materials 

Rents, communications, and utilities 

Publications sold 

Depreciation and amortization 

Other services 

Surplus publications 

Travel and transportation 

655,644

430,070

165,137

33,901

12,471

-

6,316

5,511

-

1,539

42,512

356

28,443

1,507

10,685

8,804

495

1,339

5,657

1,127

27,981 75,338 801,475 (99,167) 702,308 

11,937 75,338 517,701 (96,435) 421,266

11,938 - 205,518 (1,715) 203,803

780 - 36,188 (98) 36,090

915 - 24,071 (235) 23,836

- - 8,804 - 8,804

211 - 7,022 - 7,022

828 - 7,678 (684) 6,994

- - 5,657 - 5,657

1,372 - 4,038 - 4,038

Total operating expenses 654,945 58,413 27,981 75,338 816,677 (99,167) 717,510 

Income (loss) before 

other operating expenses 699 (15,901) - - (15,202) - (15,202) 

OTHER OPERATING EXPENSES: 

Changes in actuarial liabilities (23,563) - - - (23,563) - (23,563) 

Net loss $(22,864) $(15,901) $- $- $(38,765) $- $(38,765) 

See accompanying independent auditors’ report. 

5 9

ANNUAL REPORT FISCAL YEAR 2002 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

U.S. GOVERNMENT PRINTING OFFICE

Consolidating Schedule of Cash Flows by Fund Type

For the Fiscal Year Ended September 30, 2002 

(Dollars in thousands) 

(Unaudited) 

Revolving Fund General Fund 

Congressional 

Printing Sales of Salaries and Printing Total 

and Binding Publications Expenses and Binding Before 

Operations Operations Appropriation Appropriation Eliminations Eliminations Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES 

Net loss $(22,864) $(15,901) $- $- $(38,765) $- $(38,765)

Adjustments to reconcile net loss to net cash 

Provided by operating activities: 

Depreciation and amortization 7,022 - - - 7,022 - 7,022

Loss on disposal of property, 

plant, and equipment 45 - - - 45 - 45

Changes in assets and liabilities: 

(Increase) decrease in assetsAccounts receivable (9,060) (2,230) 1,251 - (10,039) 15,485 5,446

Inventories 596 2,263 - - 2,859 - 2,859

Prepaid expenses (81) - - - (81) - (81)

Increase (decrease) in liabilitiesAccounts payable and accrued expenses (3,087) 17,249 (2,132) - 12,030 (15,485) (3,455)

Deferred revenue 7,115 (1,822) - - 5,293 - 5,293

Accrued annual leave 8 - - - 8 - 8

Workers’ compensation liability 23,563 - - - 23,563 - 23,563

Total adjustments 26,121 15,460 (881) - 40,700 - 40,700

Net cash provided by (used in) 

operating activities 3,257 (441) (881) - 1,935 - 1,935

CASH FLOWS FROM INVESTING ACTIVITIES 

Capital expenditures (7,374) - - - (7,374) - (7,374) 

Proceeds from sale of property, plant, and equipment 246 - - - 246 - 246 

Net cash used in investing activities (7,128) - - - (7,128) - (7,128) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Increase (decrease) in unexpended appropriations (433) - 1,660 5,662 6,889 - 6,889 

Net cash provided (used) in 

financing activities (433) - 1,660 5,662 6,889 - 6,889 

Net increase (decrease) in fund balance 

with the U.S. Treasury (4,304) (441) 779 5,662 1,696 - 1,696 

Fund balance with the U.S. Treasury, beginning of year 163,985 8,168 16,371 21,118 209,642 - 209,642 

Fund balance with the U.S. Treasury, end of year $159,681 $7,727 $17,150 $26,780 $211,338 $- $211,338 

See accompanying independent auditors’ report. 

6 0

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
2001

C O N S O L I DAT I N G S U P P L E M E N TA L U N AU D I T E D AND SCHEDULES ( )

U.S. GOVERNMENT PRINTING OFFICE

Supplemental Schedule of Appropriated Funds 

For the Fiscal Years Ended September 30, 2002 and 2001 

(Dollars in thousands) 

(Unaudited) 

Unexpended Appropriations, 

beginning of year (on cash basis) 

Funds Provided:

Appropriations 

Supplemental Appropriations 

Transfers 

Total funds available 

Funds Applied: 

Obligated appropriationsCurrent year 

Prior years 

Funds transferred to the Revolving Fund 

Total funds applied 

Unexpended Appropriations, 

end of year (on cash basis) 

Adjustments:

Intra-agency accounts receivable 

Intra-agency accounts payable 

Unexpended Appropriations,

end of year (on accrual basis) 

See accompanying independent auditors’ report. 

Revolving

Fund

Appropriation 

$18,802 $16,371 $21,118 $56,291 $48,255

- 29,639 81,000 110,639 99,198

4,000 - - 4,000 15,900

- - - - 12,802

22,802 46,010 102,118 170,930 176,155

1,714

2,719

-

4,433

18,369

-

-

$18,369

Salaries

and

Expenses

Appropriation 

20,936

7,924

-

28,860

17,150

134

(1,517)

$15,767

Congressional 

Printing and 

Binding

Appropriation 

54,220

21,118

-

75,338

26,780

-

-

$26,780

Total

2002

76,870

31,761

-

108,631

62,299

134

(1,517)

$60,916

78,909

28,152

12,802

119,863

56,291

1,385

(3,648)

$54,028

6 1

ANNUAL REPORT FISCAL YEAR 2002 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

U.S. GOVERNMENT PRINTING OFFICE

Supplemental Schedule of Balance Sheets for Revolving Fund 

As of September 30, 2002 and 2001 

(Dollars in thousands) 

(Unaudited) 

Printing and Binding Sales of Publications 

Operations Operations

2002 2001 2002 2001

A S S E T S 

CURRENT ASSETS 

$159,681 $163,986 $7,727 $8,168 

Accounts receivable 177,440 168,378 3,497 1,267 

Inventories 11,887 12,483 7,712 9,975 

Prepaid expenses 455 374 - -

349,463 345,221 18,936 19,410 

Land 9,971 9,977 - -

Buildings and improvements 68,542 64,124 - -

Plant machinery and equipment 77,972 75,133 - -

Computers and computer software 22,844 27,590 - -

Furniture and fixtures 3,247 3,084 - -

Motor vehicles 833 3,185 - -

Leasehold improvements 1,035 1,049 - -

Construction and software in process 1,044 1,136 - -

185,488 185,278 - -

Less: Accumulated depreciation and 

amortization (134,462) (134,312) - -

51,026 50,966 - -

$400,489 $396,187 $18,936 $19,410 

Funds with U.S. Treasury 

Total current assets 

PROPERTY, PLANT, AND EQUIPMENT 

Net property, plant, and equipment 

Total assets 

See accompanying independent auditors’ report. 

6 2

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
C O N S O L I DAT I N G S U P P L E M E N TA L U N AU D I T E D AND SCHEDULES ( )

Total Revolving Fund Total Revolving Fund 

2002 2001

Before Before

Eliminations- Eliminations- Consolidated Eliminations- Eliminations- Consolidated 

$167,408 $ - $167,408 

180,937 (59,583) 121,354 

19,599 - 19,599

455 - 455

$172,154 $ - $172,154 

169,645 (44,097) 125,548 

22,458 - 22,458

374 - 374

368,399 (59,583) 308,816 364,631 (44,097) 320,534 

9,971 - 9,971 9,977 - 9,977

68,542 - 68,542 64,124 - 64,124

77,972 - 77,972 75,133 - 75,133

22,844 - 22,844 27,590 - 27,590

3,247 - 3,247 3,084 - 3,084

833 - 833 3,185 - 3,185

1,035 - 1,035 1,049 - 1,049

1,044 - 1,044 1,136 - 1,136

185,488 - 185,488 185,278 - 185,278 

(134,462) - (134,462) (134,312) - (134,312) 

51,026 - 51,026 50,966 - 50,966

$419,425 $(59,583) $359,842 $415,597 $(44,097) $371,500 

6 3

ANNUAL REPORT FISCAL YEAR 2002 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

U.S. GOVERNMENT PRINTING OFFICE

Supplemental Schedule of Balance Sheets for Revolving Fund 

As of September 30, 2002 and 2001 

(Dollars in thousands) 

(Unaudited) 

Printing and Binding Sales of Publications 

Operations Operations

2002 2001 2002 2001

LIABILITIES AND NET POSITION 

CURRENT LIABILITIES 

Accounts payable and accrued expenses $72,566 $75,652 $56,207 $38,959 

Deferred revenue 50,268 43,153 14,537 16,359 

Accrued annual leave 10,056 10,048 - -

132,890 128,853 70,744 55,318 

OTHER LIABILITIES 

91,216 67,653 - -

91,216 67,653 - -

224,106 196,506 70,744 55,318 

NET POSITION 

Cumulative results of operations: 

Retained earnings (accumulated deficit) 67,724 90,589 (54,397) (38,497) 

Invested capital 90,290 90,290 2,589 2,589 

Unexpended appropriations 18,369 18,802 - -

176,383 199,681 (51,808) (35,908) 

$400,489 $396,187 $18,936 $19,410 

Total current liabilities 

Workers’ compensation liability 

Total other liabilities 

Total liabilities 

Total net position 

Total liabilities and total net position 

See accompanying independent auditors’ report. 

6 4

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
C O N S O L I DAT I N G S U P P L E M E N TA L U N AU D I T E D AND SCHEDULES ( )

Total Revolving Fund Total Revolving Fund 

2002 2001

Before Before

Eliminations- Eliminations- Consolidated Eliminations- Eliminations- Consolidated 

$128,773 $(59,583) $69,190

64,805 - 64,805

10,056 - 10,056

$114,611 $(44,097) $70,514 

59,512 - 59,512

10,048 - 10,048

203,634 (59,583) 144,051 184,171 (44,097) 140,074 

91,216 - 91,216 67,653 - 67,653

91,216 - 91,216 67,653 - 67,653

294,850 (59,583) 235,267 251,824 (44,097) 207,727 

13,327 - 13,327

92,879 - 92,879

18,369 - 18,369

52,092 - 52,092

92,879 - 92,879

18,802 - 18,802

124,575 - 124,575 163,773 - 163,773 

$419,425 $(59,583) $359,842 $415,597 $(44,097) $371,500 

6 5

ANNUAL REPORT FISCAL YEAR 2002 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

U.S. GOVERNMENT PRINTING OFFICE

Consolidating Schedule of Income (Loss) before

Other Operating Expenses by Major Program 

For the Fiscal Years Ended September 30, 2002 and 2001 

(Dollars in thousands) 

(Unaudited) 

Printing Information Congressional 

and Binding Dissemination Printing

Operations Operations and Binding 

2002 2001 2002 2001 2002 

REVENUES:

Printing and binding $641,159 

Sales of blank paper 10,666 

Sales of waste and scrap 478 

Sales of publications - 

Appropriations - 

Reimbursements - 

$648,276 $ - $ - $ - $ -

12,307 - - - -

722 - - - -

- 37,984 42,407 - -

- 27,981 29,653 75,338 86,100 

- 4,528 4,435 - -

Total revenues 652,303 661,305 70,493 76,495 75,338 86,100

EXPENSES:

Printing and reproduction 430,070 425,007 12,293 15,115 75,338 86,100

Personnel compensation 

and benefit 164,768 165,917 40,381 39,273 - -

Supplies and materials 33,794 37,432 2,287 1,788 - -

Rents, communications, 

and utilities 11,699 13,660 11,600 10,634 - -

Publications sold - - 8,804 9,558 - -

Depreciation and amortization 6,313 5,823 706 838 - -

Other services 5,216 6,775 2,167 2,046 - -

Surplus publications - - 5,657 2,270 - -

Travel and transportation 1,539 865 2,499 2,475 - -

Total expenses 653,399 655,479 86,394 83,997 75,338 86,100 

INCOME (LOSS) before 

Other Operating Expenses $(1,096) $5,826 $(15,901) $(7,502) $ - $ -

See accompanying independent auditors’ report. 

6 6

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 

2001
C O N S O L I DAT I N G S U P P L E M E N TA L U N AU D I T E D AND SCHEDULES ( )

Total GPO 

Other Operations Before Eliminations Eliminations Total GPO 

2002 2001 2002 2001 2002 2001 2002 2001 

$1,435 $2,005 $642,594 $650,281 

- - 10,666 12,307 

- - 478 722 

- - 37,984 42,407 

1,906 - 105,225 115,753 

- - 4,528 4,435 

$(98,568) $(112,875) $544,026 $537,406 

- - 10,666 12,307 

- - 478 722 

- - 37,984 42,407 

(599) (622) 104,626 115,131 

- - 4,528 4,435 

3,341 2,005 801,475 825,905 (99,167) (113,497) 702,308 712,408 

- - 517,701 526,222 (96,435) (110,773) 421,266 415,449

369 210 205,518 205,400 (1,715) (1,641) 203,803 203,759

107 20 36,188 39,240 (98) (114) 36,090 39,126

772 731 24,071 25,025 (235) (242) 23,836 24,783

- - 8,804 9,558 - - 8,804 9,558

3 677 7,022 7,338 - - 7,022 7,338

295 239 7,678 9,060 (684) (727) 6,994 8,333

- - 5,657 2,270 - - 5,657 2,270

- - 4,038 3,340 - - 4,038 3,340

1,546 1,877 816,677 827,453 (99,167) (113,497) 717,510 713,956 

$1,795 $128 $(15,202) $(1,548) $ - $ - $(15,202) $(1,548) 

6 7

ANNUAL REPORT FISCAL YEAR 2002 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

U.S. GOVERNMENT PRINTING OFFICE 

Supplemental Schedule of Income (Loss) before

Other Operating Expenses for Printing and Binding Operations 

For the Fiscal Years Ended September 30, 2002 and 2001 

(Dollars in thousands) 

(Unaudited) 

Plant Printing 

Operations Regional Printing 

2002 2001 2002 2001 

REVENUES:

Printing and binding $170,114 $173,187 $705 $759 

Sales of blank paper 10,666 12,307 - -

Sales of waste and scrap 478 722 - -

Total revenues 181,258 186,216 705 759

EXPENSES:

Printing and reproduction - - - -

Personnel compensation 

and benefits 128,264 128,589 $1,211 1,316

Supplies and materials 32,518 36,026 138 179

Rents, communications, and 

utilities 5,959 6,451 352 412

Depreciation and amortization 5,571 5,182 6 7

Other services 3,963 5,963 438 60

Travel and transportation 825 677 6 9

Total expenses 177,100 182,888 2,151 1,983 

INCOME (LOSS) before 

Other Operating Expenses $4,158 $3,328 $(1,446) $(1,224) 

See accompanying independent auditors’ report. 

6 8

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
C O N S O L I DAT I N G S U P P L E M E N TA L U N AU D I T E D AND SCHEDULES ( )

Total In-House Printing 

Percent Percent

of of

2002 Revenues 2001 Revenues 2002

$170,819 94 $173,946 93 $470,340

10,666 6 12,307 7 -

478 - 722 - -

181,963 100 186,975 100 470,340 

- - - - 430,070 

129,475 72 129,905 70 35,293 

32,656 19 36,205 19 1,138 

6,311 3 6,863 4 5,388 

5,577 3 5,189 3 736 

4,401 2 6,023 3 815 

831 - 686 - 708 

179,251 99 184,871 99 474,148 

$2,712 1 $2,104 1 $(3,808) 

Purchased Printing Total Printing and Binding Operations 

Percent Percent 

of of

Revenues 2001 Revenues 2002 

100 $474,330 

- - 

- - 

100 $641,159 

- 10,666 

- 478

100 474,330 100 652,303 

91 425,007 90 430,070 

8 36,012 8 164,768 

- 1,227 - 33,794 

1 6,797 1 11,699 

- 634 - 6,313 

- 752 - 5,216 

- 179 - 1,539 

101 470,608 99 653,399 

(1) $3,722 1 $(1,096) 

Percent Percent

of of

Revenues 2001 Revenues

98 $648,276 98

2 12,307 2

- 722 -

100 661,305 100

66 425,007 64

25 165,917 25

5 37,432 6

2 13,660 2

1 5,823 1

1 6,775 1

- 865 -

100 655,479 99

- $5,826 1

6 9

ANNUAL REPORT FISCAL YEAR 2002 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

U.S. GOVERNMENT PRINTING OFFICE

Supplemental Schedule of Income (Loss) before

Other Operating Expenses for Information Dissemination 

For the Fiscal Years Ended September 30, 2002 and 2001 

(Dollars in thousands) 

(Unaudited) 

REVENUES:

Sales of publications 

Appropriations 

Reimbursements 

Total revenues 

EXPENSES:

Printing and reproduction 

Personnel compensation and 

benefits

Supplies and materials 

Rents, communications, and 

utilities

Publications sold 

Depreciation and amortization 

Other services 

Surplus publications 

Travel and transportation 

Total expenses 

INCOME (LOSS) before 

Other Operating Expenses 

Sales of Publications Programs 

Percent Percent

of of

2002 Revenues 2001 Revenues 

$37,984 100 $42,407 100 

-- - -

-- - -

37,984 100 42,407 100 

235 1 292 1 

25,996 68 25,834 61 

1,355 4 1,052 2 

9,326 25 8,277 20 

8,804 23 9,558 23 

446 1 499 1 

1,224 3 1,337 3 

5,657 15 2,270 5 

922 2 895 2 

53,965 142 50,014 118 

$(15,981) (42) $(7,607) (18) 

See accompanying independent auditors’ report. 

7 0

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
C O N S O L I DAT I N G S U P P L E M E N TA L U N AU D I T E D AND SCHEDULES ( )

Agency Distribution Services Salaries and Expenses Programs Total Information Dissemination 

Percent Percent Percent 

of of of 

2002 Revenues 2001 Revenues 2002 Revenues 

Percent Percent Percent

of of of

2001 Revenues 2002 Revenues 2001 Revenues 

$- - $- - $-

- - - - 27,981 

4,528 100 4,435 100 -

- $- - $37,984 54 $42,407 55 

100 29,653 100 27,981 40 29,653 39 

- - - 4,528 6 4,435 6 

4,528 100 4,435 100 27,981 100 29,653 100 70,493 100 76,495 100 

121 3 64 1 11,937 43 14,759 50 12,293 17 15,115 20 

2,447 55 2,407 55 11,938 43 11,032 37 40,381 57 39,273 51 

152 3 98 2 780 3 638 2 2,287 3 1,788 2 

1,359 30 1,444 33 915 

- - -- -

49 1 56 1 211 

115 3 128 3 828 

- - -- -

205 5 133 3 1,372 

3 913 3 11,600 16 10,634 14 

- - - 8,804 12 9,558 12 

1 283 1 706 1 838 1 

3 581 2 2,167 3 2,046 3 

- - - 5,657 8 2,270 3 

5 1,447 5 2,499 4 2,475 3 

4,448 98 4,330 98 27,981 100 29,653 100 86,394 122 83,997 109 

$80 2 $105 2 $- - $- - $(15,901) (22) $(7,502) (9) 

7 1

ANNUAL REPORT FISCAL YEAR 2002 
FIN ANCIAL FISC AL YEAR IN REVIEW — YEARS 2002 AND 2001

SECTION V 

Management’s Assertion

About the Effectiveness 

of Internal Controls 

7 2

U N I T E D S T A T E S G O V E R N M E N T P R I N T I N G O F F I C E 
M A N AG E M E N T A N A LY S I S ’ S D I S C U S S I O N A N D

U. S. G O V E R N M E N T

PRINTING OFFICE Office of the Public Printer 

KEEPING AMERICA INFORMED 

February 7, 2003 

Mr. Paul Geraty 

KPMG LLP 

2001 M Street NW. 

Washington, DC 20036-3389 

Dear Mr. Geraty: 

In connection with your examination of our assertion regarding 

internal controls over financial reporting of the United States 

Government Printing Office (GPO) as of September 30, 2002, and 

for the year then ended, we make the following representations: 

1. The GPO is responsible for establishing and maintaining an 

effective internal control structure. 

2. Pursuant to GPO Instruction 825.18A, Internal Control 

Program, "internal control" as it relates to the consolidated 

financial statements, is a process that is effected by the 

agency's management and other personnel, and is designed to 

provide reasonable assurance that the following objectives 

are met: 

a. Reliable financial reporting. Transactions are properly 

recorded, processed, and summarized to permit the 

preparation of the consolidated financial statements in 

accordance with generally accepted accounting 

principles, and assets are safeguarded against loss from 

unauthorized acquisition, use, or disposition. 

b. Compliance with applicable laws and regulations. 

Transactions are executed in accordance with laws 

governing the use of budget authority and other laws 

and regulations that could have a direct and material 

effect on the consolidated financial statements. 

732 North Capitol Street NW Washington, DC 20401-0001 PublicPrinter@gpo.gov 

ANNUAL REPORT FISCAL YEAR 2002 

7 3
C O N S O L I DAT I N G S U P P L E M E N TA L U N AU D I T E D AND SCHEDULES ( )

3. The GPO has performed an evaluation of the effectiveness of 

internal controls over financial reporting pursuant to the 

objectives (or criteria) set forth in GPO Instruction 825.18A, 

Internal Control Program. 

4. Except as disclosed in the Independent Auditors’ Report, all 

internal controls are operated in accordance with applicable 

policies and procedures and are effective in meeting the 

foregoing objectives as set forth in GPO Instruction 825.18A, 

Internal Control Program. 

5. There have been no changes subsequent to September 30, 

2002, that would significantly affect internal controls over 

financial reporting. 

Sincerely, 

BRUCE R. JAMES 

Public Printer 

7 4

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E 
NOTES 

7 5

ANNUAL REPORT FISCAL YEAR 2002 
FINANCIAL FISCAL YEAR IN REVIEW — YEARS 2002 AND 2001

7 6

U N I T E D S TAT E S G OV E R N M E N T P R I N T I N G O F F I C E