Keeping America Informed ■ Annual Report 2001 

United States Government Printing Office 

United States Government Printing Office 

Keeping America Informed ■ Annual Report 2001 

Fiscal Year 2001 

keeping 

America 

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Table of Contents 

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

HIGHLIGHTS 2001

GPO Ranked Top In-Plant for Third Consecutive Year . . . . . . . . . . . . . . . . . . . . . . . . 5 

GPO Receives Clean Opinion in Audit of FY 2000 Finances . . . . . . . . . . . . . . . . . . . 5 

GPO’s FY 2002 Appropriations Approved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 

GPO Closes Bookstores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 

GPO Hosts Release of Federal Budget Documents . . . . . . . . . . . . . . . . . . . . . . . . . . 7 

Fourth Biennial Report on GPO Access Released . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 

GPO Servers Provided Public Access to Supreme 

Court Opinions in Florida Election Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 

GPO Access Makes Davis-Bacon Wage Data Available . . . . . . . . . . . . . . . . . . . . . . . . 9 

U.S.-China Security Review Commission Web Site Hosted by GPO . . . . . . . . . . . . . . 10 

GPO And Energy Department Launch New Web-Based Service . . . . . . . . . . . . . . . . . 10 

GPO Access Adds New Listserver Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 

GPO Online Products Win Two “Trailblazer” Awards . . . . . . . . . . . . . . . . . . . . . . . . 11 

Depository Library Conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 

Withdrawal of USGS CD-ROM from Depository Libraries . . . . . . . . . . . . . . . . . . . . . 12 

GPO Offers Printing Contractors Paperless Billing System . . . . . . . . . . . . . . . . . . . . . 14 

GPO Provides Printing Expertise to D.C. Government . . . . . . . . . . . . . . . . . . . . . . . 14 

GPO-Designed Publication Receives NEA Award . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 

Environmental Protection Agency Honors GPO . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 

FINANCIAL YEAR IN REVIEW 

Operating Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 

Financial Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 

Report of Independent Certified Public Accountants . . . . . . . . . . . . . . . . . . . . . . . . . 27 

Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 

Consolidated Statements of Revenues and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . 36 

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

Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 

Consolidating Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 

Supplemental Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 

Public Printer’s Assertion Letter on Internal Controls . . . . . . . . . . . . . . . . . . . . . . . . 73 

v

Public Printer’s Message 

In the post-9/11 

environment, GPO 

has initiated several 

steps to improve the 

security of our 

personnel and 

buildings.

As they were for everyone else in America, the events of 2001 were overshadowed at 

GPO by September 11 and the subsequent anthrax attacks on Capitol Hill. GPO 

responded by offering whatever assistance we could. When the Equal Employment Opportunity Commission’s regional office was destroyed at the World Trade Center complex, we 

established a secure area on our Web site so that displaced EEOC employees could 

continue working from home or other locations. Personnel from GPO’s Office of the 

Inspector General responded to a request from the FBI to help with the rescue and recovery efforts at the Pentagon and the World Trade Center. 

When anthrax forced the closure of House and Senate office buildings, we provided 

temporary space for personnel from the Office of the Clerk of the House and the 

Senate’s Office of Legislative Counsel to continue their work. We turned over the loading docks at our paper warehouse in Washington, DC, to the Capitol Police for use in 

screening deliveries to Capitol Hill, with up to 70 trucks a day passing through this 

process. Mail operations at GPO were severely hampered for a time, particularly those 

serving our sales of publications program, but fortunately all tests for the presence of 

bioagents in GPO proved negative. 

In the post-September 11 environment, GPO has initiated several steps to improve the 

security of our personnel and buildings. These include planning for enhanced security 

systems for GPO and the development of off-site production and Web site capabilities to 

provide for continuity of operations in an emergency. We implemented rapid-turnaround 

production and procurement procedures to meet essential military printing requirements. 

We were also confronted by new issues involving the continued provision of public access 

to certain kinds of Government information that before September 11 had been widely 

available. We have been working closely with the library community and Federal agencies 

to ensure that all of our partners in providing public access understand procedures for and 

the implications of restricting public access to previously accessible information products. 

Throughout the rest of the year, GPO continued the trend of providing an increased 

array of electronic and print information services and reducing its size. GPO’s Web site, 

GPO Access (http://www.gpo.gov/gpoaccess/), today makes available nearly 225,000 

online titles, which are downloaded by the public at the ever-growing rate of 31 million 

per month. Total employment stood at approximately 3,000 at yearend, a reduction of 

more than 35% since I took office in 1993. 

Financially, GPO ended the year reporting a loss of approximately $1.6 million from 

the results of normal business operations, a margin of 2 tenths of one percent on $712.4 

million in total revenues. However, this figure does not reflect two unusual accounting 

adjustments: a $12 million write-off of the cost of the Sales Program’s Integrated Processing System (IPS), and a required increase of $31.4 million in the long-term estimated 

liability of workers’ compensation benefits under the Federal Employees Compensation Act 

(FECA). Altogether, these factors resulted in a reported loss of $45 million. Our financial 

1
As I reported to 

Congress last year, 

the success of our 

Internet efforts have 

come at a price, 

resulting in an 

ongoing decline in 

our sales of print 

publications.

statements have been prepared to reflect the uniqueness of the two adjustments. The loss 

will be covered by GPO’s retained earnings and will not require additional appropriations. 

The implementation of IPS, which will replace the Sales Program's legacy automated 

systems, has been delayed by modification work on the original off-the-shelf system to 

make it fit the Program’s needs. IPS has been certified by the GPO’s Inspector General to 

be capable of operations, and training is currently being undertaken to implement the 

system. During the period in which IPS was under development it was not depreciated, in 

accordance with generally accepted accounting principles (GAAP). However, for FY 2001, 

GPO’s auditors recommended several options for making an accounting entry for IPS. A 

one-year write-off of IPS’ capitalized costs was among the recommended options. We 

selected this option because it obviates the need to assign these costs via depreciation to 

future years at a time when the Sales Program is cutting expenses to meet reduced order 

volume. All of the system’s acquisition costs have been paid for and the one-time write-off 

causes no additional reduction of GPO’s available funds. 

The adjustment to the long-term liability of GPO’s workers’ compensation program is 

based on actuarial assumptions that are different from those used to compute this liability 

in prior years. The difference has arisen due to changes in the assumptions used by the 

Department of Labor affecting the computation of this liability governmentwide, a figure 

which is currently forecast at $24.7 billion. The adjustment in GPO’s liability conforms to 

accepted Government accounting practice. As adjusted, this liability is essentially a 37- to 

55-year forecast of what GPO's responsibility for workers' compensation could be in view 

of historical benefit payment patterns, current information related to benefit claims, and 

Labor Department assumptions. The required reporting of this forecast does not cause any 

expenditure by GPO, does not affect GPO’s printing rates, and does not reflect a reduction 

in GPO’s available funds. It is important to note that the FECA adjustment is not indicative of an increase in GPO's workplace injury and illness rates, which remain comparable 

to other Federal agencies with substantially industrial missions, such as the Bureau of 

Engraving and Printing and the U.S. Mint. 

As I reported to Congress last year, the success of our Internet efforts have come at a 

price, resulting in an ongoing decline in our sales of print publications. In response, we 

have taken a number of steps to reduce program costs and increase revenues. In the past 5 

years, we have cut FTE’s in the sales program from 529 to 392, or 26%. Further FTE 

reductions of 25 and 35 are planned for FY 2002 and 2003, respectively, yielding an additional reduction of 15% during that period. We have reduced warehouse space for the 

program by closing our Springbelt, VA, paper warehouse and consolidating paper warehouse operations in our documents warehouse space in Laurel, MD. We have made 

across-the-board pricing adjustments of 20% over the past two years. In addition, we are 

emphasizing our online ordering service, and we have implemented a toll-free telephone 

ordering number and expanded credit card payments to include American Express. 

2
GPO has indeed 

come a long way in 

the past decade. 

That journey has 

been made possible 

by the skilled and 

dedicated efforts of 

the men and women 

who work here. 

Along with these actions, we have begun closing those GPO retail bookstores around 

the Nation that no longer are economically viable. Closing these stores will reduce costs, 

and we expect to retain a substantial portion of store revenues through our online, fax, 

phone, and mail order operations served by our warehouse. Quick turnaround service for 

purchasers can be provided by express overnight delivery. At the same time, free public 

access to Government information will remain unaffected through local Federal depository 

libraries as well as GPO’s Internet site. In FY 2001, we closed 4 bookstores, followed by 

two in early 2002. Additional closings are planned pending notification to the respective 

Members of Congress and affected employees. 

In spite of the decline in the volume of publications sold, I believe the continued operation of a sales program that provides the public with an opportunity to purchase their 

own copies of Government documents, pursuant to the provisions of chapter 17 of Title 

44, is justified. Our objective is to reduce the costs of this program to a level consistent 

with the program revenues. However, part of the costs of the sales program are indirect 

overhead expenses that impose a proportionally greater burden on the program as 

revenues have declined. This overhead includes many expenses that are unique to Government agencies. Until 1978, these sales program costs were covered by an annual appropriation. As GPO strives to find a way to continue providing the public service afforded by 

the sales program while minimizing its costs, it may become necessary to discuss other 

funding options for the program, including restoring the appropriation that once subsidized overhead costs assigned to the program. 

GPO has indeed come a long way in the past decade. That journey has been made 

possible by the skilled and dedicated efforts of the men and women who work here. Not 

only would GPO’s achievements have been impossible without them, but they have carved 

out an important role for GPO to fulfill in the electronic age ahead. It’s been a great privilege to work with them. 

MICHAEL F. DIMARIO

April 2002 

3

Highlights 

GPO was named 

the top in-plant 

printing operation 

in the Nation for the 

third year in a row. 

GPO Ranked Top In-Plant for 

Third Consecutive Year 

For the third year in a row, GPO was named 

the top in-plant printing operation in the 

Nation, in a survey conducted by In-Plant

Graphics, a widely respected journal of the 

in-plant printing industry. The ranking was 

released in the December 2000 issue of InPlant Graphics. 

In-Plant Graphics ranked in-plant operations from Federal, State, and local governments; universities; and the insurance, 

retail, and manufacturing sectors. The 

survey considered factors like annual sales, 

number of employees, budget, and number 

of printed jobs. According to the editor’s 

note in the December 2000 issue, “we feel 

the in-plants on our list are models of efficiency. We have written stories on many of 

them [GPO was profiled by In-Plant Graphics in 1996, 1998, and 1999] and found 

them to be extremely cost conscious and 

customer focused. They continually look 

out for the good of their parent organizations. In short, they not only are large, they 

are extremely well run—and that is 

precisely the type of in-plant that In-Plant

Graphics is proud to honor.”

GPO Receives Clean Opinion in 

Audit of FY 2000 Finances 

For the fourth consecutive year, GPO 

received an “unqualified opinion” in a 

comprehensive, independent audit of its 

financial operations by the nationally recognized accounting firm KPMG LLP. 

KPMG conducted a thorough audit of 

GPO’s financial statements for fiscal 2000, 

concluding that they “are presented fairly, 

in all material respects, in conformity with 

generally accepted accounting principles.” 

In summarizing the findings for GPO, 

KPMG partner Paul Geraty said, “An 

‘unqualified opinion’ is the highest level of 

assurance that an audit firm can give on an 

organization’s financial statements.” Geraty 

also praised GPO’s financial management 

team, led by Comptroller R. Bruce Holstein, 

saying the audit finding is “a sign of how 

seriously GPO’s financial area regards its 

ability to meet outside financial standards.” 

The fiscal 2000 audit was the fourth 

consecutive financial audit since an annual 

audit requirement for GPO was enacted by 

Congress in 1996. 

The KPMG audit “noted no instances 

of material noncompliance with laws and 

regulations we tested,” although it recommended the establishment of certain data 

processing controls. The 2000 financial 

audit findings continue GPO’s trend of 

“unqualified” audit opinions—the best that 

auditors can issue. KPMG audits of GPO’s 

1997, 1998, and 1999 finances each 

produced an “unqualified” opinion. 

On March 2, 2001, Government Executive magazine reported that “twelve of the 

17 Federal agencies that submitted their 

fiscal 2000 financial statements to 

Congress [in compliance with the Chief 

Financial Officers Act of 1990] this week 

received clean audit opinions, the highest 

number ever.” The magazine also reported 

that “auditors gave clean opinions to only 

11 of the 24 largest agencies’ fiscal 1999 

books as of March 1 last year.” 

5
Declining publications sales have 

resulted primarily 

from the public’s 

increased ability 

to access Government 

publications free of 

charge over the 

Internet. 

GPO's FY 2002 

Appropriations Approved 

With Senate passage on November 1, 2001, 

of the conference agreement on H.R. 2647, 

the Legislative Branch Appropriations Act 

for FY 2002, Congress completed action on 

GPO's appropriations, clearing the measure 

for the President. The President signed the 

bill into law on November 12, 2001. 

Under Title I of the Act, $71.5 million 

was approved for GPO's Congressional 

Printing and Binding Appropriation, which 

is used to cover the costs of printing work 

that GPO performs for Congress, such as 

the Congressional Record, bills, reports, and 

hearings. This is the full amount requested 

by GPO for FY 2002. 

Under Title II of the Act, $27.9 million 

was approved for the Salaries and Expenses 

Appropriation of the Superintendent of 

Documents, also the full amount requested 

by GPO. This funding is used to cover the 

costs of distributing Government publications as required by law (including distribution to Federal depository libraries), cataloging and indexing documents, distributing Government publications to recipients 

designated by law, and distributing Government publications to other nations which 

agree to send copies of their official publications to the Library of Congress. 

The Salaries and Expenses Appropriation for FY 2002 includes funding for additional staff to locate and catalog online 

Government information, modernize GPO's 

cataloging system, and support the Federal 

Depository Library Program (FDLP) Electronic Collection made available through 

GPO Access.

GPO's request of 3,260 full-time 

equivalent (FTE) employees for FY 2002 

was also approved. Together, the two 

appropriations to GPO total $99.4 million, 

representing about 4% of total legislative 

branch funding overall. 

Earlier in the year, in the supplemental 

appropriation for FY 2001, GPO was 

provided with $9.9 million to fund a prior 

year shortfall in congressional printing and 

binding and $6 million for energy-efficient 

air conditioning and lighting improvements 

recommended by the General Accounting 

Office. Also, there was a Government-wide 

recission of .22% that reduced the two FY 

2002 Appropriations by $218,000. With the 

supplemental and recission, GPO's appropriations for FY 2001, which originally were 

$99.4 million, totaled $115.1 million. 

Also approved was a legislative amendment that will extend the life of GPO's early 

retirement and separation incentive 

programs for an additional three years. These 

programs were originally enacted in FY 1999 

for 3 years. Under them, 98 GPO employees 

have taken early-out retirements, resulting in 

an estimated $5 million in savings. 

GPO Closes Bookstores 

Responding to declining sales of Government publications, GPO closed 4 of its 

bookstores in 2001. In July, the San Francisco and McPherson Square bookstores 

were closed, and in August GPO closed the 

Boston bookstore. The bookstore in 

Philadelphia was closed in September. The 

closings reduced the number of GPO bookstores nationwide to 20 by the end of 2001. 

6
GPO hosted 

3 different releases 

of documents by the 

Office of Management and Budget in 

FY 2001 in both 

print and online 

formats.

Declining publications sales have 

resulted primarily from the public’s 

increased ability to access Government 

publications free of charge over the Internet, 

including most prominently nearly 225,000 

Government titles available on GPO Access.

Nearly 31 million documents are being 

retrieved by the public every month from 

GPO Access. GPO Access features a number 

of regulatory information titles, such as the 

Federal Register and the Code of Federal Regulations, that once were the mainstays of 

bookstore sales. While a number of bookstores continue to generate net income, 

there are others whose sales have been 

declining and which have been operating at 

a loss. 

The San Francisco, Boston, and 

Philadelphia bookstores were selected for 

closing due to their financial profiles. 

Although generating net income, the 

McPherson Square bookstore’s sales were 

declining and Washington, DC, was the 

only city in the Nation with more than one 

bookstore. The McPherson Square bookstore began operations in 1987, the Boston 

bookstore began in 1970, the San Francisco 

bookstore in 1969, and the Philadelphia 

bookstore in 1977. 

The employees at the McPherson 

Square bookstore and one employee from 

the San Francisco bookstore were transferred to GPO’s Central Office. A Boston 

employee was transferred to GPO’s Boston 

regional procurement office, and two 

Philadelphia employees were transferred to 

the Philadelphia regional procurement 

office. One employee each in San Francisco and Boston retired. The remaining 

San Francisco employee found another 

Federal job through the hiring preference 

provided by Federal reduction-in-force 

(RIF) procedures, while 2 Philadelphia 

employees faced RIF procedures. GPO 

personnel staff provided assistance to 

these employees. 

GPO has worked closely with the 

congressional delegations for each bookstore area, and with the local media, to 

point out that the bookstore closings will 

not deprive local citizens of access to 

Government information. In addition to 

GPO Access, information can still be 

purchased from GPO by phone, fax, mail, 

and online, and there are multiple Federal 

depository library collections in San Francisco, Boston, Washington, DC, and 

Philadelphia that provide public access to 

Government documents. 

GPO Hosts Release of 

Federal Budget Documents 

GPO hosted 3 different releases of budget 

documents by the Office of Management 

and Budget in FY 2001 in both print and 

online formats. 

The first publication was the FY 2002 

Economic Outlook, Highlights from FY 1994 

to FY 2001, FY 2002 Baseline Projections,

released on January 16, 2001. Issued in the 

last week of President Clinton’s administration, the publication summarized historical 

data and provided estimates of the economy’s direction. The second publication 

was A Blueprint for New Beginnings: A 

Responsible Budget for America’s Priorities. It 

was released on February 28, 2001, to 

provide general information about the 

7
GPO Access fulfills 

approximately 31 

million document 

retrievals per month, 

with a total of 

more than 355 

million retrievals 

during fiscal year 

2001 alone. 

budget being prepared by President Bush’s 

administration. The full, traditional Budget

of the U.S. Government was published on 

April 9, 2001. 

Fourth Biennial Report 

on GPO Access Released

The fourth Biennial Report to Congress on the 

Status of GPO Access was released by GPO 

in December 2001. The report was transmitted to Congress in accordance with 

section 4103 of Title 44, U.S.C., and was 

made available on GPO Access.

According to the report, the information resources on GPO Access cover all 

three branches of Government, and 

include the Congressional Record and all 

major congressional publications, the 

Federal Register and Code of Federal Regulations, the United States Code, and other key 

Government documents. The databases 

also include such noteworthy publications 

as the Budget of the United States Government, Countering the Changing Threat of 

International Terrorism -- The Report of the 

National Commission on Terrorism, the 

Public Papers of the Presidents, and the 

Energy Citations Database.

As of December 2001, GPO Access 

provided public access to approximately

225,000 titles through links to more than 

130,000 titles on GPO servers and more 

than 94,000 additional titles on other 

Federal agency Web sites. Recent statistics 

indicate that GPO Access fulfills approximately 31 million document retrievals per 

month, with a total of more than 355 million 

retrievals during fiscal year 2001 alone. 

Since the last Biennial Report in 1999, 

GPO Access has added new applications and 

publications, and improved several existing 

applications. Numerous system enhancements have also been made, including the 

implementation of a distributed caching 

service, the monitoring of referrals from 

other Web sites, and improvements to the 

GPO’s Online Bookstore. In addition, a 

LISTSERV mailing list server has been 

brought online, with GPO Access offering

automated e-mail notification service for a 

range of publications carried by the Superintendent of Documents Sales Program. Since 

September 11, initial steps have been taken 

to develop a GPO Access mirror site in a 

geographically removed location. 

The report notes that the cost of GPO

Access has been significantly lower than 

was originally estimated by the Congressional Budget Office (CBO) in the legislation creating the system (Pub. L. 103-40). 

CBO estimated that creating and operating 

the online system would cost approximately 

$6 million in appropriated funds over the 

first 5 years. In addition, CBO said the 

provision of free online access to Federal 

depository libraries would cost another $2 

million to $10 million per year in appropriated funds and that, beginning in FY 1995, 

GPO would incur annual costs of $750,000 

to keep the directory of publications 

current and to maintain the electronic storage facility. In fact, the total cost of GPO

Access has been $19 million since it began 

operations in 1994, 61% less than the high 

range of the estimate. 

The report cites high levels of customer 

satisfaction with GPO Access, noting that in 

8
In the hours just 

before and after the 

Supreme Court’s 

historic opinion in 

the case of Bush v. 

Gore, the Court’s 

Web site, hosted by 

GPO Access, was hit 

for a total of 1.1 

million page views. 

June 2001, GPO Access was recognized 

with an E-Gov 2001 “Trailblazer” award; 

that in May 2001, LibrarySpot.com selected 

the U.S. Supreme Court Web site, which is 

developed and hosted by GPO, to be 

featured among the best and most useful 

library and reference sites online; and that 

in March 2001, the Congressional Bills 

database on GPO Access was featured in the 

Legislative Branch section of GovSpot.com. 

Also, in December 2000, Lightspan’s Study 

Web selected the U.S. Constitution: Analysis 

and Interpretations application on GPO

Access as “one of the best educational 

resources on the Web.” 

GPO Servers Provided Public 

Access to Supreme Court 

Opinions in Florida Election Case 

GPO provided the servers and bandwidth 

to cope with the U. S. Supreme Court’s 

release of its opinion in the case of George

W. Bush v. Palm Beach County Canvassing 

Board in December 2000. GPO hosts the 

Supreme Court Web site and had prepared 

in advance for an unusual load by increasing the number of servers containing the 

Court’s Web site and using load-balancing 

equipment to assure that all servers were 

used as efficiently as possible. At the time 

of the release at 11:55 a.m. on December 4, 

GPO had dedicated 14 servers to the 

Court’s Web site. 

Traffic on the Court’s Web site began to 

increase almost as soon as the Florida 

Supreme Court issued its opinion in Palm

Beach County Canvassing Board v. Harris on

November 21. In the days leading up to the 

release of the opinion, the Court posted a 

collection of 43 petitions, briefs, and oral 

arguments related to the case on its Web 

site. For the period November 21 to December 5, the Court’s Web site received 

4,346,687 page views, approximately double 

the normal volume for a two-week period. 

Later, in the hours just before and 

after the U.S. Supreme Court’s historic 

opinion in the case of George W. Bush, et 

al., Petitioners v. Albert Gore, Jr., et al. (No.

00-949) on December 12, the Court’s Web 

site was hit for a total of 1.1 million page 

views. GPO replicated the Court’s Web 

pages on a total of 19 servers in anticipation of the opinion’s release. The 65-page 

opinion, which included all dissents, was 

presented as a 330 KB Acrobat Portable 

Document Format (PDF) file. When 

displayed in an Acrobat Reader, the opinion appeared as an exact facsimile of the 

original printed slip opinion. 

Traffic on the site began to increase 

sharply at 4:00 p.m. and peaked in the 

minutes just after the opinion’s release at 

about 10:00 p.m., totaling 1.1 million page 

views by 7:30 a.m. the next day. Between 

November 21, the day before the election 

case reached the Supreme Court for the 

first time, and December 13, the day after 

the final opinion, the Court’s Web site had 

6.4 million page views. During a normal

month, the Court’s site handles roughly 1.5 

million page views. 

GPO Access Makes Davis-Bacon 

Wage Data Available 

The database containing Wage Determinations Issued Under the Davis-Bacon and 

Related Acts was made available without 

9
GPO and the 

Department of 

Energy (DOE) 

partnered in 2001 to 

launch a new Web 

service that increases 

access to the body of 

scientific and 

technical Government information. 

charge on GPO Access during FY 2001. A 

co-operative project of GPO and the Wage 

and Hour Division of the Department of 

Labor, the database includes the new annual 

issuance of the recompiled Wage Determination dataset. This dataset of more than 

1,600 Wage Determinations is updated 

weekly, as new and modified Determinations 

are issued by the Wage and Hour Division. 

The Davis-Bacon Wage Determinations 

Web site on GPO Access gives users the 

choice of browsing all determinations by 

State or searching the full database. Users 

who choose to browse by State are directed 

to a table that shows the Wage Determinations by county, and then by type of 

construction (highway, heavy, building, and 

residential). Users who choose to search 

the full database can target their searches 

by State, by construction type, and by date. 

There is also the option of searching by 

Wage Determination number. 

Regardless of the method used to 

select a determination, it is displayed to 

the user full-text, as provided by the 

Department of Labor, in HTML (HyperText 

Markup Language) format. This provides 

for rapid searching, fast screen views, and 

quick printing. 

The Davis-Bacon Act requires that each 

contract over $2,000 to which the United 

States or the District of Columbia is a party 

for the construction, alteration, or repair of 

public buildings or public works contain a 

clause setting forth the minimum wages to 

be paid to various classes of laborers and 

mechanics employed under the contract. 

Contractors and subcontractors are 

required to pay workers employed directly 

on the site of the work no less than the 

locally prevailing wages and fringe benefits 

paid on projects of a similar character. 

Under the Act, the Secretary of Labor is 

responsible for determining the local 

prevailing wage rates. 

U.S.- China Security Review 

Commission Web Site 

Hosted by GPO 

The U.S.-China Security Review Commission, effective with the 107th Congress, 

selected the GPO to develop and host its 

official Web site. Available at www.uscc.gov,

the site sets forth the Commission’s objective of analyzing the national security implications of trade and economic ties between 

the United States and the People’s Republic 

of China, and provides a schedule of its 

hearings in 2001. 

GPO and Energy Department 

Launch New Web-Based Service 

GPO and the Department of Energy (DOE) 

partnered in 2001 to launch a new Web 

service that increases access to the body of 

scientific and technical Government information. The Energy Citations Database, at 

www.osti.gov/energycitations, is a searchable index that describes publications from 

1948 to the present. 

Developed by DOE's Office of Scientific 

and Technical Information (OSTI), the 

Energy Citations Database provides bibliographic records for energy and energyrelated scientific and technical information 

from DOE and its predecessor agencies, the 

Atomic Energy Commission (AEC) and the 

Energy Research and Development Administration (ERDA). Indexed publications are 

10
GPO Access and the 

eCFR, an online 

version of the Code 

of Federal Regulations developed by 

GPO, both received 

the E-Gov 2001 

“Trailblazer” honorable mention awards. 

from disciplines of interest to the DOE 

such as chemistry, physics, environmental 

science, geology, engineering, climatology, 

oceanography, computer science and related 

disciplines. Publications in the database 

represent various forms of literature used to 

announce DOE's research results, including 

report literature, conference papers, journal 

articles, books, dissertations, and patents. 

Regular updates to the database will 

ensure that results of recent research and 

development are made available. When 

available, the full text of indexed publications issued since 1995 are linked through 

the DOE Information Bridge, another 

GPO/OSTI partnership. Publications prior 

to 1995 are available at more than 1,300 

Federal depository libraries located throughout the country and territories. 

DOE Information Bridge was the first 

GPO/OSTI partnership established in 1997. 

GPO and DOE jointly launched 

PubSCIENCE, an electronic system providing public access to a DOE database of 

scientific and technical literature, in 1999. 

In 2000, GPO and DOE initiated two additional services, called the GrayLIT Network 

and Federal R&D Project Summaries, that 

provide users with the ability to find information regardless of where it resides - by 

searching for documents across multiple 

databases of many Federal agencies - in 

response to a single query. The Energy Citations Database and other partnership online 

services are accessible through GPO Access.

GPO Access Adds New 

Listserver Option 

GPO announced a new GPO Access service,

GPOLISTSERV (http://listserv.access.

gpo.gov) in 2001. Through this service, the 

public has a quick and easy way to receive 

up-to-date notice about many of the 

resources available from GPO Access. 

Customers can subscribe to e-mail listservers moderated by GPO or hosted on 

GPO Access for other Federal agencies. Lists 

currently available include the Federal Register Table of Contents and the Merit Systems 

Protection Board Decisions and Studies lists.

Customers can also register to receive free 

e-mail updates when new publications are 

placed on sale by the Superintendent of 

Documents. This service allows customers 

to specify one or more area of interest from 

a topic list that currently includes: Business, Elementary and Secondary Education, 

Defense and Security, Health Care, Military 

History, and Travel and Tourism. This service can also be reached via GPO’s Online 

Bookstore at http://bookstore.gpo.gov/

alertservice.html.

GPO Online Products Win Two 

“Trailblazer” Awards 

GPO Access and the eCFR, an online 

version of the Code of Federal Regulations 

developed by GPO for the National 

Archives and Records Administration, both 

received the E-Gov 2001 “Trailblazer” 

honorable mention awards. In an 

announcement on May 2, 2001, the 

Government Solutions Center Selection 

Committee said that GPO’s were two of 

only 22 Trailblazer Awards selected from 

more than 300 nominations. The Secretary 

of Commerce was the keynote speaker at 

the July 12, 2001, awards ceremony. 

11
In spite of the 

September 11 

attacks, in October 

2001 nearly 400 

Federal depository 

librarians and agency 

representatives

attended the 10th 

annual Federal 

Depository Library 

Conference in 

Alexandria, VA 

Depository Library Conferences 

In April 2001, more than 150 Government information librarians met in San 

Antonio, TX, to discuss issues of importance to Government information users 

nationwide as well as the national library 

community. The occasion for the gathering 

was the 58th semiannual meeting of the 

Depository Library Council, an advisory 

group to the Public Printer. The Council is 

composed of 15 representatives of the 

Government information community who 

advise GPO on issues related to the Federal 

Depository Library Program (FDLP). 

Highlights of the April conference 

included remarks from the Public Printer 

and GPO’s Superintendent of Documents 

on the outlook for the FDLP, presentations 

from the Census Bureau and the National 

Park Service, and programs such as "Local 

Strategies for Ongoing Access to Electronic 

U.S. Government Information," "Incorporating Federal Government Resources in 

Virtual Libraries," and "Electronic Spanish 

Language Information Resource Locators." 

The National Commission on Libraries and 

Information Science (NCLIS) provided an 

update on its "Assessment of the Federal 

Government's Information Policies and 

Practices."

In spite of the September 11 attacks, in 

October 2001 nearly 400 Federal depository librarians and agency representatives 

attended the 10th annual Federal Depository Library Conference, the Nation's 

premier event for Government information 

librarians. The conference was held in 

Alexandria, VA, concurrent with the 59th 

meeting of the Depository Library Council 

to the Public Printer. 

Highlights of the October conference 

included discussions on depository library 

promotion, education resources on the 

Web, permanent public access strategies for 

electronic publications, baseline electronic 

proficiencies, and more. GPO's ongoing 

transition to a more electronic FDLP was 

the primary focus of the event, as was 

discussion of development of a mirror site 

for GPO Access at a location outside Washington, DC. One announcement welcomed 

by the group was that cataloging records for 

online electronic publications will now be 

included in the online Monthly Catalog of 

U.S. Government Publications. Other agency 

participants, such as the Census Bureau, 

U.S. Geological Survey, Federal Aviation 

Administration, National Imagery and 

Mapping Agency, Forest Service, Department of Energy, and the Bureau of Labor 

Statistics, presented updates on their public 

information activities and products. 

Withdrawal of USGS CD-ROM 

from Depository Libraries 

In the wake of the September 11 attacks, 

Federal agencies began reviewing their 

public information products. One agency, 

the U.S. Geological Survey (USGS), determined that one of its publications, a CDROM entitled Source Area Characteristics of 

Large Public Surface-Water Supplies in the 

Conterminous United States: An Information 

Resource for Source-Water Assessment, 1999,

should be withdrawn from public access in 

Federal depository libraries and destroyed. 

12
In the wake of the 

September 11th 

attacks, the U.S. 

Geological Survey 

determined that one 

of its publications 

should be withdrawn 

from public access in 

Federal depository 

libraries and 

destroyed.

By letter dated October 5, 2001, the 

USGS asked the GPO to “request that 

depository libraries receiving the [SourceWater CD-ROM] be instructed to destroy 

their copies.” When a member of the 

library community questioned the USGS on 

the need for this action, a USGS e-mail 

reply dated October 31, 2001, said: “Subsequent contact with the Government Printing Office and the USGS Committee that 

sets official policy on restriction of sensitive 

information has reconfirmed the validity of 

the original written instruction from USGS 

and GPO to destroy the report.” 

By letter dated October 12, 2001, 

Superintendent of Documents Francis J. 

Buckley, Jr. requested Federal depository 

libraries to withdraw and destroy their 

depository copies of the USGS CD-ROM. 

The Superintendent of Documents is the 

GPO official who by law is responsible for 

the operation of the Federal Depository 

Library Program (FDLP). 

The Superintendent of Documents’ 

October 12 letter went to the 335 Federal 

depository libraries that had selected this 

document for their collections (there are 

1,310 Federal depository libraries nationwide). The letter was subsequently 

published in the Superintendent of Documents publication “Administrative Notes,” 

which is made available to the entire depository library community and is posted on 

GPO’s Web site, at www.gpo.gov/su_docs/

fdlp/pubs/adnotes/. The Superintendent of 

Documents’ request applied only to copies 

of the Source-Water CD-ROM distributed 

under the FDLP. 

The Superintendent of Documents’ 

request followed established policy for the 

withdrawal of documents from the FDLP. 

This policy has been communicated in writing to all Federal depository libraries. 

Under the FDLP, the Government may 

request the removal of materials from 

depository libraries since it is a well-established principle of law that all FDLP materials remain Government property. Requests 

to withdraw happen rarely, however. Since 

FY 1995, the GPO has distributed 230,019 

tangible product (print, microfiche, and 

CD-ROM) titles to depository libraries, and 

recalled just 20 (16 to be destroyed, 3 

returned to the agency, 1 removed from 

shelves). Such actions are taken only on the 

request of the issuing agency, most 

commonly because the titles contain information that is erroneous or has been superseded. The Superintendent of Documents 

has no statutory ability to deny agency 

document withdrawal requests, but instead 

serves as the statutory conduit for carrying 

them out. Prior to initiating any withdrawal 

request, the Superintendent of Documents’ 

policy is to carefully review each request 

and ensure that all such requests to GPO 

are made in writing. 

In partnership with Federal depository 

libraries, the GPO has been the Government’s agent for providing public access to 

Government information for nearly two 

centuries. The GPO takes very seriously any 

Federal agency’s request to restrict access to 

Government information that has been 

made public. However, the GPO also has a 

duty under the law to cooperate with 

Federal agencies in the appropriate distribu13
In another move to 

improve the efficiency 

of the Government's 

printing, GPO 

installed an 

automated system 

that allows printing 

and other contractors 

to submit invoices via 

a fax gateway. 

tion of the official information they publish. 

Any agency withdrawal requests are 

handled in accordance with law and established policy. 

GPO Offers Printing Contractors 

Paperless Billing System 

In another move to improve the efficiency 

of the Government's printing, GPO installed 

an automated system that allows printing 

and other contractors to submit invoices via 

a fax gateway. Submitted this way, contractors' bills are read in digital format by 

GPO's processing equipment, and go 

directly into the billing database where they 

are scheduled for payment automatically. 

The new system functions through a 

bar code cover sheet that is used to identify, index, and control the invoices. The 

bar coding greatly reduces the possibility 

of data entry errors and speeds scheduling 

of payments. 

Contractors can now fax their invoices 

and supporting documentation to GPO 24 

hours a day, 7 days a week. This billing 

option saves postage and helps contractors 

get paid faster. Contractors also know 

immediately if the fax has been delivered 

to GPO. 

GPO’s contractors can find detailed 

instructions on how to use the system and 

the fax phone number at: http://winapps.

access.gpo.gov/fms/vouchers/barcode.

Before the first invoice is faxed to GPO, 

contractors are encouraged to call GPO at 

202-512-2073 so that the first transmission 

can be monitored. This will help assure that 

the contractor's implementation is operating properly. 

GPO Provides Printing 

Expertise to D.C. Government 

During the year, GPO designed and 

produced a large suite of materials promoting the D.C. Government’s Tuition Assistance Grant Program (TAGP). Over 20 highquality products were delivered on-time 

under very tight deadlines. The D.C. 

Government has ordered even more products for the second phase of the campaign. 

The campaign creates an awareness of TAGP, 

which provides college tuition money to 

D.C. high school graduates and residents.

GPO’s design team used a colorful grid 

of photos and text blocks that created a 

unifying appearance for all the campaign 

material describing the TAGP. The centerpiece of the campaign was the application 

form, a booklet with separate cover that 

had to be made available in an online 

version and in print. Other pieces included 

both English and Spanish versions of a 

brochure and a flyer, a postcard, a poster 

for use in schools, a poster for use in Metro 

trains and buses, stationery, a bumper 

sticker, banners, and poster enlargements 

for use at the kickoff press conference and 

at exhibits. 

GPO’s Printing Procurement Department handled the procurement of what was 

almost entirely four-color printing. The 

Postscript Section in GPO’s Production 

Department produced about 20 large 

posters for the Mayor’s press conference, 

and GPO’s Binding Division mounted the 

posters on foam-core board for display. 

14
GPO received the 

Federal Champion 

Award from 

WasteWise, an EPA 

program that unites 

more than 1,160 

businesses, government agencies, and 

institutions in an 

effort to reduce waste. 

GPO-Designed Publication 

Receives NEA Award 

Medical Guidelines, a publication series 

designed for the Department of Health 

and Human Services by GPO’s Typography 

and Design Division, was selected from 

332 entries as one of 35 projects honored 

with the National Endowment of the Arts’ 

highest award, the Federal Design Achievement Award. 

In making the award, the selecting 

committee noted, “The books and booklets 

contained in this series are well organized, 

appropriately structured, and convey information in a clear and concise manner. The 

sensitivity to typographical detail and attention to craft are very evident and superior 

to the level exhibited by too many Government agencies.” 

Environmental Protection 

Agency Honors GPO 

GPO was among 54 organizations that 

received recognition from the Environmental Protection Agency (EPA) at a November 

2001 awards ceremony in Washington, DC, 

for their extraordinary accomplishments in 

reducing waste. 

GPO received the Federal Champion 

Award from WasteWise, an EPA program 

that unites more than 1,160 businesses, 

government agencies, and institutions in an 

effort to reduce waste. The program is free, 

voluntary, and fosters cooperation among 

people working to find practical methods to 

reduce municipal solid waste and improve 

financial performance. 

GPO saved $20,000 in 2000 by initiating a program to repair approximately 

4,000 wooden pallets, equivalent to 80 

tons. Pallets that cannot be repaired are 

chipped and sold by a contractor for use as 

mulch. GPO achieved more than $10,000 

in net income from the sale of more than 

11 tons of computers and electronic equipment for reuse. A new program to recycle 

all toner cartridges also saved GPO about 

$27,000 in 2000. 

15
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Financial Year in Review 

GPO met its on-time 

delivery goal by 

attaining a 95 

percent on-time 

delivery rate, and 

nearly met the 

quality acceptance 

goal of 99 percent 

with a 98.2 percent 

rating.

U.S. Government Printing Office

Performance Measures 

September 30, 2001 

Operating Performance Measures 

Overtime Management 

GPO makes an ongoing effort to minimize overtime hours. In fiscal year 2001, overtime 

hours decreased to 198,000 hours from 204,000 hours in fiscal year 2000, or 2.9 percent. 

The cost of overtime in fiscal year 2001 decreased by about $355,000 from fiscal year 

2000’s level. GPO successfully achieved its goal for fiscal year 2001, with actual overtime 

hours worked well under the upper limit of 220,000 overtime hours established at the 

beginning of the year. Our goal for fiscal year 2002 will be reduced to an upper limit of 

200,000 overtime hours. 

Production Chargeable Hours 

Chargeable hours decreased to 652,000 in fiscal year 2001 from 706,000 in fiscal year 

2000, a decrease of 54,000 hours, or 7.6 percent, while the number of employees available for work decreased 5.1 percent. The results for 2001 met GPO’s goal of achieving 

sufficient chargeable hours necessary to break-even. GPO’s fiscal year 2002 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 Delivery 

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

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

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

9 AM the following day when copy is received in GPO by midnight, regardless of whether 

the Senate or the House of Representatives is in session. Our actual on-time delivery rate 

was 77 percent in fiscal year 2001, compared with 85.2 percent in fiscal year 2000. 

On-Time Delivery of Procured Printing 

The Printing Procurement Department contracted with commercial printers to ship 

147,800 jobs in fiscal year 2001 compared with 155,200 jobs in fiscal year 2000. For 

fiscal year 2001, 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. GPO met its 

on-time delivery goal by attaining a 95 percent on-time delivery rate, and nearly met the 

quality acceptance goal of 99 with a 98.2 percent rating. The goals for fiscal year 2002 

remain the same as those for fiscal year 2001. 

17
GPO implemented an 

automated workflow 

invoice processing 

system that should 

reduce lost prompt 

payment discounts. 

Financial Performance Measures 

Cash Management 

Payment Performance – In fiscal year 2001, 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 $432 million. This represents a discount rate 

of 1.5 percent, as compared to 1.6 percent for the prior fiscal year. Total discounts taken 

were less due to an $87 million decrease in the total purchased printing expense base 

of $519 million in fiscal year 2000. The 1.5 percent discount rate earned exceeded the 

1.4 percent goal set for fiscal year 2001. Our goal will remain at 1.4 percent for fiscal

year 2002. 

Discounts lost decreased to $278,000 in fiscal year 2001 from $288,000 in fiscal year 

2000. The percentages of discounts lost to discounts offered were 4 percent and 3.4 

percent in fiscal years 2001 and 2000, respectively. We did not achieve our goal set for 

fiscal year 2001, which was a maximum of 2.5 percent. At the end of fiscal year 2001, 

GPO implemented an automated workflow invoice processing system that should reduce 

lost prompt payment discounts. 

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 2001, approximately 25,500 monthly payments, 

or 91 percent, of all GPO payments were made by EFT, compared with 25,800 monthly 

payments, or 94 percent of all payments in fiscal year 2000. Our goal for fiscal year 2001 

was to increase EFT payments to 97 percent of all payments. Our goal in fiscal year 2002 

is to increase EFT payments to 96 percent of all payments made. 

Debt Management 

Federal Receivables – In fiscal year 2001, GPO billed Federal agencies $665 million for 

printing and binding services. Of this amount, $489.7 million (73.6 percent) was 

collected using the Department of Treasury’s On-Line Payment and Collection (OPAC) 

system; $33.8 million (5.1 percent) was from funds residing in Printing and Binding 

Deposit Accounts maintained by the GPO; and $11.5 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 2001 is $9.3 

million, compared with $8.4 million at the end of fiscal year 2000. The Department of 

Defense (DoD), with an average monthly balance of $5 million for billings outstanding for 

more than 90 days, representing 48.6 percent of all of GPO’s delinquent receivables, is 

18
GPO is committed to 

maintaining strong 

financial systems 

and internal controls 

to ensure accountability, integrity, and 

reliability. 

GPO’s largest delinquent customer. At the end of fiscal year 2001, DoD owed GPO 

$485,000 for billed, completed work that was between 31 and 60 days overdue, $262,000 

that was between 61 and 90 days overdue, and $5.7 million that was more than 90 days 

overdue. GPO and DoD have, in recent years, used Treasury’s OPAC 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 222 printing and binding deposit accounts valued at $42 million. 

GPO continues to offer agencies the option to pay their printing and binding bills by 

credit card. Credit card usage increased in fiscal year 2001 to $11.5 million for nearly 

13,000 print jobs from $10.6 million for nearly 12,000 print jobs in fiscal year 2000. The 

average price per job (about $900 per job in each year) paid via credit card indicates that 

customers find it an easy way to pay for small printing jobs. 

Management Discussion and Analysis 

The consolidated financial statements of 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 accountability, integrity, and reliability. Our internal controls are designed to 

19
The GPO Printing 

Procurement

Program continues to 

be the best acquisition service for the 

Federal printing 

dollar. 

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 our agency 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. 

Operating Issues 

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

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

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

efficiently and to achieve steady gains in productivity. 

There has been a steady decline in demand in recent years for traditional printing 

within the Federal government. All 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 3,026 at 

September 30, 2001. 

GPO’s Plant Printing Operations produces the Congressional Record and all other 

documents relative to the legislative process. However, neither Congress nor GPO can 

accurately forecast the printing workload that may be required to support and record 

legislative proceedings. In those years where congressional printing requirements exceeds 

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. 

In fiscal year 2000, the funding needed to provide Congress with its printing services 

exceeded the annual $71.3 million appropriation by an estimated $9.9 million in cumulative obligations. During fiscal year 2001, Congress approved a $9.9 million supplemental 

appropriation and a $9.5 million appropriation transfer to the Revolving Fund to pay 

down the cumulative shortfall through fiscal year 2000. GPO estimates a shortfall of $5.9 

million at the end of fiscal year 2001. 

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 

20
Three bookstores that 

were not recovering 

their operating 

expenses (San Francisco, Boston, and 

McPherson Square, 

DC) were closed 

during the year. 

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 webbased, 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 to advances in 

electronic information technology, such as the world wide web, and increases in electronic 

publishing by customer agencies. The Sales of Publications Operations 2001 revenue of 

$42.4 million declined from fiscal year 2000 revenue of $45.5 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 significant in that the Sales Program 

receives no appropriated funds, and must recover costs to continue operations. 

In an effort to improve this situation, 3 bookstores that were not recovering their 

operating expenses (San Francisco, Boston, and McPherson Square, DC) were closed 

during the year, and management plans to close additional stores in fiscal year 2002. Also, 

continued efforts to downsize through attrition are being employed in other areas of the 

Sales Program, 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. 

During fiscal year 2001, GPO management revalued the Integrated Processing System 

(IPS) for accounting purposes. This computer system is being developed for use by the 

Superintendent of Documents for the Sales of Publications Program. IPS is designed to 

replace about 18 older computer systems. IPS was initially expected to have a useful life of 

5 years. However, the project, which was begun in fiscal year 1995, was not operational as 

of September 30, 2001. Therefore, the capitalized asset was declared by management to 

be “impaired,” and was written-off in 2001. This write-off of $12 million has been 

presented as an “Impairment loss” on the financial statements for fiscal year 2001. 

21
Efforts are focused 

on purchasing from 

the GSA Schedule, 

commercial, off-theshelf cataloging and 

library management 

software that meets 

system requirements. 

The Salaries and Expense Appropriation by Congress funds the administration of the 

Federal Depository Library Program (FDLP), the Cataloging and Indexing 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 current public access to U.S. Government publications. Long recognized as the national authority for cataloging government publications, FDLP is also gaining recognition as a center of excellence in other aspects of managing an electronic collection for permanent public access. 

In order to provide FDLP services more timely and efficiently, GPO is in the process 

of acquiring an up-to-date library cataloging and data management system that will 

enhance the ability to perform the statutorily authorized functions of the Cataloging and 

Indexing Program and the FDLP. Efforts are focused on purchasing from the GSA Schedule, commercial, off-the-shelf cataloging and library management software that meets 

system requirements. Significant costs and time associated with a full competitive 

procurement will be saved with this approach. Internal workflow procedures will be 

adjusted, as necessary, to mesh with the new system, minimizing modifications to the 

standard software. 

Fiscal Year 2001 Financial Results 

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

to fulfill the printing needs of the Federal Government and distribute government publications to the public. GPO activities are financed through a Revolving Fund, which is reimbursed by payments from customer agencies, sales to the public, and transfers from the 

Congressional Printing and Binding Appropriation and the Superintendent of Documents 

Salaries and Expenses Appropriation. 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. 

GPO’s comprehensive, audited principle financial statements include all economic 

events impacting the agency. In fiscal year 2001, GPO recorded an accrued unfunded 

liability of $67.7 million and an accrued expense of $31.4 million resulting from the 

change in the actuarial estimate of the long-term liability for accident compensation. 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. 

22
To improve financial 

reporting, the change 

in the actuarial 

estimate of workers’ 

compensation

liability is now 

presented as a 

separate cost element 

in the financial 

statements.

However, GPO does not include the actuarial estimate of the future cost of 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. 

To improve financial reporting, the change in the actuarial estimate of workers’ 

compensation liability is now presented as a separate cost element in the financial statements. In prior statements, this cost was incorporated in the expense category entitled 

“Personnel Compensation and Benefits.” This enhancement provides readers with a better 

representation of actual personnel compensation and benefits. 

The Consolidated Statements of Revenues and Expenses reflect the “Change in actuarial liabilities” and the “Impairment loss” for IPS separately under “Other Operating 

Expenses.” This presentation method highlights two major events that had a significant 

economic effect on the Agency’s operating results. GPO’s expenses for fiscal year 2001 

increased by about $43.5 million as a result of these two items. 

GPO’s revenues, expenses, and income or loss before other operating expenses for 

fiscal years 2001 and 2000 are summarized in the table on the next page entitled “GPO’s 

Major Operations.” GPO’s loss before the aforementioned expenses was approximately 

$1.5 million in fiscal year 2001, compared with income of approximately $3.3 million in 

fiscal year 2000. After inclusion of the aforementioned expenses, GPO had losses of $45 

million and $115,000 for fiscal years 2001 and 2000, respectively. 

Revenues and expenses declined by $95 million (12 percent) and $90.1 million (11 

percent) in fiscal years 2001 and 2000, respectively, before inclusion of the expenses for 

the impairment loss and change in the actuarial estimate for workers’ compensation liability. Part of this decrease in revenue and expense is attributable to cyclical work for the 

U.S. Census Bureau. During fiscal year 2000, GPO provided about $70 million in

commercially procured printing for the Decennial Census of the United States. 

Printing and Binding Operations had income before other operating expenses for the 

year of approximately $6 million compared with income before other operating expenses 

of approximately $15 million in fiscal year 2000. Revenues were $663.3 million compared 

with $756.7 million in fiscal year 2000. The income for fiscal year 2001 is before the 

aforementioned costs recognized for the increase in the actuarial estimate for workers’ 

compensation liability, and the impairment loss for IPS. 

The Sales of Publications Operations revenue of $42.4 million declined by $3.1 

million, or 6.8 percent when compared to fiscal year 2000 revenue of $45.5 million. The 

Sales of Publications loss before other operating expenses was $7.6 million in fiscal year 

2001 and $11.8 million in fiscal year 2000. The loss before other operating expenses for 

23
fiscal year 2001 is before the costs recognized for the increase in the estimate for workers’ 

compensation liability and the impairment loss for IPS. 

The Equity for the Sales of Publications Operations reflects an accumulated deficit of 

approximately $35.9 million resulting from program operations since fiscal year 1993. 

Due to statutory restrictions that required earnings (i.e., receipts in excess of costs) to 

revert to the U.S. Treasury, the Sales of Publications Operations Program was unable to 

accumulate retained earnings until Public Law 103-69 amended 44 U.S.C. §1709 in 

1993. Prior to the 1993 revision, over $17 million in excess receipts was transferred to the 

Treasury as required by statute, and over $28 million was used to fund the Salaries and 

Expenses of the Superintendent of Documents, as directed by Congress. 

24
The following table summarizes the consolidated revenues and income (loss) before other operating expenses in each 

major operation of GPO during fiscal years 2001 and 2000. 

Revolving Fund: 

Printing and binding operations: 

Purchased printing 

Central $259,959 $330,620

Regional 214,371 (1,733) 226,992 (2,881) 

Subtotal 474,330 3,722 557,612 280

In-house printing 

Central 186,216 3,328 195,830 15,291 

Regional 759 (1,224) 1,217 (752) 

Subtotal 186,975 2,104 197,047 14,539 

Other 2,005 128 2,020 174 

Subtotal of printing and 

binding operations 663,310 5,954 756,679 14,993 

Information dissemination: 

Sales of publications 42,407 (7,607) 45,479 (11,815) 

Agency distributions 4,435 105 5,215 129 

Subtotal 46,842 (7,502) 50,694 (11,686) 

Appropriations:

Salaries and expenses 29,653 - -

Congressional printing and binding 86,100 - -

Subtotal 115,753 - 110,888 -

825,905 (1,548) 918,261 3,307 

Eliminations (1) (113,497) - (110,892) -

$712,408 $807,369

Revenues

Income (Loss) 

before Other 

Operating

Expenses

2001 2000

(Dollars in thousands) 

Revenues

Income (Loss) 

before Other 

Operating

Expenses

$ 5,455 $ 3,161 

29,824

81,064

Total before eliminations 

Total after eliminations $ (1,548) $ 3,307 

GPO’s Major Operations - Unaudited 

1. The eliminations include revenue recognized by one area of the

GPO for products or services produced or provided to another area 

of GPO. In order to avoid reporting the expense and revenue for 

intra-company transactions, eliminating entries must be made. In 

fiscal year 2001, major eliminations included printing work charged 

to the Congressional Printing and Binding Appropriation ($86.1 

million), publications printed for the Sales of Publications Program 

for resale to customers ($9.6 million), and printing for programs 

funded by the Salaries and Expenses Appropriation ($14.8 million). 

25
Fiscal Year 2002 Projections 

GPO projects breakeven operations for fiscal year 2002, with revenue and expenses 

expected to remain at about the same levels experienced in fiscal year 2001. However, 

congressional activity, in the form of legislation to stimulate the economy and deal with 

other issues related to the war against terrorism, may increase GPO’s revenue stream 

during the year. GPO expects to operate at less than the congressionally mandated fulltime equivalent ceiling of 3,260 for fiscal year 2002, with no degradation in core products 

and services. This is possible primarily to efficiencies from recent investments in new technology and on-going automation efforts. 

GPO will continue to develop and employ efficient business practices and production 

processes to contain costs, and emphasize cost-effective methods of providing customer 

agencies and the public with government information and dissemination services. 

26
27

Note: The Public Printer’s letter referenced above can be found on page 73 

The Public Pnnter 

2001 M Street, N.W 

Washn1;ton, D.C. 20036 

Independent Auditors' Report 

United States (iovemment Printing Office: 

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

Office (the GPO) as of September 30, 2001 and 2000, and the related consolidated statements ofrcvenues and 

expenses and cash 11ows for the years then ended. We have also examined management's assertions, included 

in the statement of assurance to us dated March 5, 2002 at page 4S, regarding the effectiveness of the GPO's 

internal control over financial reporting that were m place as of September 30. 2001. The objective of our 

audits was to express an opinion on the fair presentation of the GPO's consolidated fmanc1al statements. The 

objective of our examinatiOn of management's assertions regardmg internal control over tlnancial reporting 

was to express an opinion on management's assertions. In connection with our audits, we also tested the 

GPO's compliance with certain provisions of applicable laws and regulations that could have a direct material 

effect on its consolidated financial statements. 

Summary 

As stated in our opinion on the consolidated linancwl statements and on management's assertions about the 

effectiveness of internal control over financial reporting we conclude that: 

• The GPO's consolidated financial statements as of September 30, 200 I and 2000, and for the years then 

ended. arc presented fairly, m all matcnal respects. in conforrn1ty with accounting principles generally 

accepted in the Umted States of America; and 

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

financial reporting m place as of September 30. 200 I. provide reasonable assuranct: thut transactions are 

properly recorded, processed, and summarized to permit the preparation of the consolidated !lnancial 

statements m accordance with accounting pnnciples generally accepted in the United States of Amt:rica, 

and assets arc safeguarded against loss from unauthorized acquisition, use. or disposition; and 

transact10ns 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, based 

upon cntena established under GPO Instruction 825.18A, Internal Control Program. 

Our consideration of internal control over financial reporting resulted in deficiencies in the design and/or 

operation of the GPO's EDP general controls and internal control over its process for estimating its year-end 

workers' compensation liability. bemg identified as reportable conditions. 

The results of our tests of compliance w1th laws and regulations disclosed no instances of non-compliance 

that are reqmred to be reported herem under Government Auditing Standards. 
28

Note: The consolidating and supplemental information referenced above can be found on 

pages 58 through 72. 

The followmg sections discuss our opinion on the GPO's consolidated financtal statements, our opimon on 

management's assertions reearrling internal control over financial reporting, our tests of the GPO's 

compliance with certain provisions of applicable laws and regulations. and management's and our 

responsibilities. 

Opinion on the Consolidated Financial Statements 

We have audited the accompanying consolidated balance sheets of the Gl'O as of September 30, 2001 and 

2000, and the n:lated wnsolidated statements of revenues and expenses and cash flows for the years then 

ended. 

1n our opinion. the consolidated financial statements referred to above. present fairly, in all material 

respects, the financtal posttton of the GPO as of September 30, 2001 and 2000, and the results of its 

operations and its cash flows for the years then ended in conformity with accounting principles generally 

accepted in the United States of Amcnca. 

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

statements taken as a whole. The consolidating and supplemental information on pages 38 through 47 are 

presented for purposes of additional analysis and are not a required part of the consolidated tinancial 

statements. This information has not been subjected to the auditing procedures applied m our audtts of the 

consoltdated financml statements and, accordingly, we express no opinion on it. 

The information contained in the performance measures section has not been audited and, at:cordingly, we 

express no opm1on on tt. 

Opinion on Management's Assertions about the Effectiveness of Internal Controls Over Financial 

Reporting 

We have examined management's asserllons included in its statement of assurance to us dated March 5, 

2002, that internal controls designed by managemt:nl provide reasonable, but not absolute, assurance that 

as of September 30. 2001, the following objectives were met: 

• Transactions an: properly recordt:d, processed, and summarized to permit the preparation of the 

consolidated financtal statements in accordance with accounting principles generally accepted in the 

Umted States of America, and assets arc safeguarded against loss from unauthorized acqutsJtion, ust:, 

or dtsposttion; and 

• Transactions are executed in accordance with laws goveming the use of budget authonty and other 

Jaws and regulations that could have a direct and material effect on the consolidated financial 

statements. 

In our opinion, management's assertions that intemal controls in place as of September 30, 2001. provtde 

reasonahl~ assurance that transacllons are properly recorded, processed, and summanzcd to pcrmtt the 

preparation of the consolidated t1nancial statements in accordance with accountmg pnnc1ples generally 

accepted in the United States of America. and assets are safeguarded against loss from unauthorized 

acqutsition, usc, or dtsposltwn: and transacttons arc executed in accordance with laws governing the use of 

budget authority and other laws and regulattons that could have a direct and material effect on the 

consoltdatcd financJal statements, arc fatrly stated in all material respects. based upon critena established 

under GPO Instruction 825.18A, Internal Conrrol Program. 

(Continued) 
29

Our consideration of mtcmal control over financml reportmg would not necessarily disclose all matters in 

the intemal control over financ1al reportmg that might be reportable conditions. Under standards issued by 

the American Instttutc of Cert1fied Public Accountants, reportable conditions are matters coming to our 

attention rclatmg to significant defictcnctes m the design or operation of the internal control over financtal 

reporting that, in our judgment, could adversely affect the GPO's ability to record, process, summarize, and 

report financial data consist~::nt with the asst:rtions by management in the consolidated l1nancial statements. 

Material weaknesses are reportable conditions in which the design or operation of one or more of the 

1ntemal control components docs not reduce to a relatively low level the risk that misstatements, in 

amounts that would be matenal in relatton to the consolldated financial statements bcmg aud1ted, may 

occur and not be detected w1thm a timely period by employees m the normal course of performing their 

assigned functions. Because of inherent linutations in mtemal control, misstatements, due to error or fraud, 

may nevertheless occur and not be detected. 

We noted certam matters involving the internal control over financial reporting and its operation that we 

consider to be reportable conditions, however, we do not consider the reportable conditions described 

helow to be matenal weaknesses. 

EDP General Controls 

Deficiencies in the dCS!gJl and or operations of the GPO's l:Dl' general controls are considered a reportable 

cond1tion. Tins conditwn, wh1ch has been previously reported to management in prior years' aud!t reports, 

relates to the following areas. 

• Entity-Wide Security Program 

There arc several areas rcgardmg an enterpnse-w1de secunry program that arc inadequate. The 

program should establish a framework for assessing risk, developing and implementing eiTective 

security procedures, and monitoring the effectiveness of these procedures. Without a well-designed 

program, security coniTols may be madequate; respon~ibilities may be unclear, misunderstood, and 

tmproperly implemented; and con\Tob may be inconstslently applied. 

Examples of weaknesses mclud[: 

Establtshment of risk assessment standards and the routine performance of formal risk assessments 

has not been implemented. 

The draft security program policy has not been finalized and implemented. 

Program management has not conststently conducted and documented pcnodic system rcvtcws of 

application software systems and associated hardware. 

Compliance with GPO Personnel Security Program policy has not been enforced and tcm1ination 

and transfer procedures should be rcvtsed. 

• Access Controls 

Certain access control" require modificatton in order to provide a more secure environment. 

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

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

unauthorized modification. disclosun:. Joss, or impamnent. These controls mclude controls over 

phystcal access to computer resources, and controls that prevent unauthorized access to scns!tlVC 

liks. 

(Continued) 
30

Examples of weaknesses include: 

Clear and concise criteria to classify entity-w1de re~ources have not been established. 

A policy that requires resource owners to periodically review access authorization listings and 

privileges has not been e$Lablished. 

Access privileges to Oracle utihties and "agents" have not been reviewed and restricted. 

Internal and external network secunty vulnerabilities to the GPO network have not been restricted. 

An entity-wide policy for rev1cw of aud1t logs and access violations has not been implemented. 

• Ap)J!ication Change Control and Systems Development 

Certain controls over the modification of application software programs arc dcfic1cnt. These 

controls should be designed to ensure that only authorized programs and modifications are 

implemented. Without proper controls. there is a risk that security features could be inadvertently 

or deliberately omitted or "turned ort" m that processing irregularities or malicious code could be 

introduced. 

Examples of weaknesses include: 

An Otiice of lntt1rmation Resource Management (OIRM) and Production systems development 

methodology has not been formally estabbshed. 

Application development standards and procedures have not been adhered to. 

An entity-wide development methodology has not been developed. 

• Segregation of Duties 

Certain controls over separating the work responsibilitks so that one individual does not control all 

critical stages of a process need improvement. These controls should be designed to ensure that 

duties are divided to diminish tht: likdihood tha! errors and wrongful acts will go undetected 

because the activities of one group or individual will serve as a check on the actlVJtlcs of another. 

Inadequately segregated dut1es increase the nsk that erroneously or fraudulent transactions could 

he processed, that proper program changes could be tmplcmcntcd, and that computer resources 

could be damage or destroyed. 

Examples of weaknesses include: 

Development of a policy and a security plan for application systems has not been estabhshed. 

Management oversight, guidelines, guidance, and support to assist the local network administrators 

have not been provided. 

• Service Continuity 

Losmg the capability to process, retrieve, aml proted infiJrmation maintained electronically can 

significantly impact an agency's ability to accomphsh 1ts mission. For this reason, an agency 

should have (I) procedures in place to protect infom1ation resources and minim1ze the nsk of 

unplanned interruptiOns and (2) a plan to recover cnhcal operations should intenuptions occur. 

Examples of weaknesses include: 

Tape backup controls have not been implemented and emergency response procedures have nol 

been developed. 

Contingency planning efforts have not been finalized. 

(Continued) 
31

We again recommend that the GPO develop a formal action plan to review and rev1se 1ts EDP general 

controls. This plan should address each of the five areas discussed above as well as any other areas that 

impact the general f.DP control environment, set forth appropriate corrective action steps, assign 

responsibilities to employees, and establish target completion dates for each action. This plan should be 

adopted by the GPO and proVIde for periodic reviews towards achJcvcmcnt of corrective actions. 

Workers' Compensation Liability 

The GPO has developed its estimate for workers' compensahon at fiscal year end using a methodology 

which is not a generally accepted actuarial approach lor calculating such liabilities. In order to determine 

the reasonableness of the GPO's estimate, our procedures have included having our actuary review the 

methodology and assumptions for n:asonablt:ness. Such procedures resulted in significant adjustments to 

the GPO's estimate of the liability as of fiscal year end. We recommend that the GPO engage a tl1lfd-party 

actuary who specializ.es m the calculation of workers' compensation liability to develop the GPO's 

estimate in the future. 

We also noted other matters involving internal control over financial reportmg and its operation that we do 

not consider to be reportable conditions. These matters. along with further technical deta1ls and related 

recommendations of the reportable condition;;, will be reported to the GPO management in a separate 

letter. 

Compliance with Laws and Regulations 

The results of our tests of compliance with the laws and rcgulattons described in the "Responsibthties" 

sechon of this report disclosed no instances of noncompliance that are required to be reported under 

Government Auditing Standards. 

Consistency of Other hlformation 

The performance measures, the consolidating financial statements, and other supplemental informatiOn 

contain a wide range of data, some of which are not directly related to the consolidated financ1al 

statements. We do not express an overall opinion on this infom1ation. However, we compared this 

information lilr consistency with the consolidated financial statements. Based on this hm!ted work, we 

found no material inconsistencies with the consolidated financial statements. 

Responsibilities 

Management's Respomibility 

Management 1s responsible for: 

• 1'repanng the consolidated financial statements in conformity with accounting principles generally 

accepted in the United States of Ameri~.;a , and for preparing the supplemental information and 

perfom1ance measun:s; 

• Establishing and maintaining adequate mtemal control over linancial reporting; and 

• Complymg Wtth laws and rcgulatrons. 

In fulftllmg this responsibility, estimates and adjustments are required to assess the expected benefits ami 

related costs of internal control policies. 

Auditors' Respon.~ibility 

Our n:sponsibility is to express an opinion on Lhe consoltdaled financial slalements of the GPO, based on 

our audits. We conducted our audits in accordance with auditing standards generally accepted in the United 

(Continued) 
32

Stales of Amcnca and Governmenr Auditing Standards, issued by the Comptroller General of the Umtcd 

States. Those standards require that we plan and perfonn the audits to obtain reasonable assurance about 

whether the consolida!t:d financial statements are free of material misstatement. 

We arc also responsible for expressmg an opmion, based on our exammation, on whether management's 

asscrttons regarding the effectiveness of mternal control over financial reportmg are fatrly stated, in all 

matenal respects, based on criteria established under GPO Instruction 1125.1 SA, Internal Control Program. 

We conducted our examination of management 's assertions regarding the effectiveness of the GPO's 

intemal control over financial reporting in place as of September 30. 2001 , in accordance w!th attestation 

standards established by the American Institute of Certified Public Accountants. 

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

material misstatement, we performed test of the GPO's compliance with certain provisions of laws and 

regulations. noncompliance with which could have a direct matcnal effect on the determination of 

consolidated financial statement amounts. We limited our tests of compliance to the provisions described 

in the prcccdmg sentence, and we dtd not test compliance with all laws and regulatwns applicable to the 

GPO. Providing an opinion on compliance with laws and regulations was not an objective of our aud1t, 

and, accordingly, we do not express such an opinion. 

To fi.Jliill these responsibilities. we: 

• Examined, on a test basis, evidence supporting the amounts and disclosun:s in the consohdated 

financ1al statements: 

• Assessed the accountmg principles used and significant estimates made by GPO management: 

• Evaluated the overall financial statement prescntatton: 

• Assessed conlrnl risk in onkr to determim: our auditing procedures for the purpose of expressing our 

opinion on the consolidated financial statements; 

• Obtained an understanding of the internal control over financial reporting; 

• Tested and evaluated the design and operating effectiveness of internal control; 

• Tested compliance with certmn provisions of laws and regulations that may materially affect the 

.financial statements: and 

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

We d1d not evaluate all internal controls relevant to operating objectives as broadly defined hy (iPO 

Instruction 825.18/\. We limited our internal control testing to those controls necessary to achieve the 

obJectives outlmcd in our optmon on management's asscrttons about the effectiveness of internal control 

over financial reporting. Because of inherent limitations m any internal control, misstatements due to errors 

or fraud may occur and not be detected. Also, projections of any evaluation or internal control ovt:r 

fmancial reporting to future periods are subject to the risk that the internal control may become madequate 

because of' changes in conditions, or that the do::gree of compliance with the policies and procedures may 

deteriorate. 

We believe that our audtts and cxammation prov1de a reasonable basis for our opm1ons. 

(Contmued) 
33

Distrib11tion 

This report is intended solely for the infonnation and usc of the Public Printer, the Joint Committee on 

Printing, the GPO management, and the GPO's Office of Inspector General, and is not intended to be and 

should not be used by anyone other than these specified parties, 

March 5, 2002 
U.S. Government Printing Office

Consolidated Balance Sheets 

As of September 30, 2001 and 2000 

(Dollars in thousands) 

Assets

2001 2000 

Current Assets 

$209,642 $224,869 

Accounts receivable, net (Note 4) 126,934 146,206 

Inventories, net (Note 2F) 22,458 20,667 

Prepaid expenses 374 731 

359,408 392,473 

)

Land and buildings 18,633 18,633 

Equipment and building improvements 166,645 177,243 

185,278 195,876 

Less: Accumulated depreciation and amortization (134,312) (127,884) 

50,966 67,992 

$410,374 $460,465 

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

Total current assets 

Property, Plant, and Equipment (Notes 2G & 5

Total property, plant, and equipment 

Net property, plant, and equipment 

Total assets 

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

34
U.S. Government Printing Office

Consolidated Balance Sheets (continued)

As of September 30, 2001 and 2000 

(Dollars in thousands) 

Liabilities and Net Position 

2001 2000 

Current Liabilities 

Accounts payable and accrued expenses (Note 6) 

Deferred revenues (Note 7) 59,512 84,630 

Accrued annual leave (Note 2I) 10,048 10,449 

143,722 192,377 

Other Liabilities 

67,653 36,217 

67,653 36,217 

211,375 228,594 

Commitments and Contingencies (Notes 9 and 10) 

Net Position (Note 11) 

Cumulative results of operations: 

Retained earnings 52,092 97,113 

Invested capital 92,879 92,879 

Unexpended Appropriations 54,028 41,879 

Net position 198,999 231,871 

$410,374 $460,465 

$ 74,162 $ 97,298 

Total current liabilities 

Workers' compensation liability (Notes 2L and 8) 

Total other liabilities 

Total liabilities 

Total liabilities and net position 

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

35
U.S. Government Printing Office

Consolidated Statements of Revenues and Expenses 

For the Fiscal Years Ended September 30, 2001 and 2000 

(Dollars in thousands) 

Revenues

Printing and binding $550,435 77.2 $646,540 80.1 

Sales of publications 42,407 6.0 45,479 5.6 

Appropriations (Note 12) 115,131 16.2 110,135 13.7 

Reimbursements 4,435 0.6 5,215 0.6 

712,408 100.0 807,369 100.0 

Expenses

Printing and reproduction 415,449 58.3 498,326 61.7 

Personnel compensation and benefits 203,759 28.6 199,769 24.8 

Supplies and materials 39,126 5.5 39,215 4.9 

Rents, communications, and utilities 24,783 3.5 25,384 3.1 

Publications sold 9,558 1.3 12,887 1.6 

Depreciation and amortization 7,338 1.0 7,886 1.0 

Other services 8,333 1.2 8,740 1.1 

Surplus publications 2,270 0.3 2,790 0.3 

3,340 0.5 9,065 1.1 

713,956 100.2 804,062 99.6 

Income (loss) before other operating expenses (1,548) (0.2) 3,307 0.4 

Other Operating Expenses:

Impairment loss (Note 2H) (12,037) (1.7) - -

Changes in actuarial liabilities (Notes 2L and 8) (31,436) (4.4) (3,422) (0.4) 

Net loss (6.3) $ (115) 0.0 

Amount

Percent of 

Revenues

2001 2000

Amount

Percent of 

Revenues

Total revenues 

Travel and transportation 

Total expenses 

$ (45,021)

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

36
U.S. Government Printing Office

Consolidated Statements of Cash Flows 

For the Fiscal Years Ended September 30, 2001 and 2000 

(Dollars in thousands) 

Cash Flows from Operating Activities 

Net loss $ (115) 

Adjustments to reconcile net loss to net cash 

provided by (used in) operating activities: 

Depreciation and amortization 7,339 7,886 

Impairment loss 12,037 -

Depreciation expense funded from appropriated capital - (444)

(61) 58 

Revenue from donated assets (170) -

Changes in assets and liabilities: 

(Increase) decrease in assetsAccounts receivable 19,273 17,808 

Inventories (1,791) 1,153 

Prepaid expenses 357 (121) 

Increase (decrease) in liabilitiesAccounts payable and accrued expenses (23,135) 6,721 

Deferred revenue (25,118) 23,163 

Accrued annual leave (401) (93) 

31,436 3,422 

19,766 59,553 

Net cash provided by (used in) operating activities (25,255) 59,438 

Cash Flows from Investing Activities 

Capital expenditures (2,387) (2,685) 

107 60 

Net cash provided by (used in) investing activities (2,280) (2,625) 

Cash Flows from Financing Activities 

Increase (decrease) in unexpended appropriations 12,308 (7,716) 

Net cash provided by (used in) financing activities 12,308 (7,716) 

(15,227) 49,097 

224,869 175,772 

$209,642 $224,869 

2001 2000 

$ (45,021)

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

Workers' compensation liability 

Total adjustments 

Proceeds from sale of property, plant, and equipment 

Net (Decrease) Increase in Funds with U.S. Treasury 

Funds with U.S. Treasury, beginning of year 

Funds with U.S. Treasury, end of year 

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

37

U.S. Government Printing Office

Notes to Consolidated 

Financial Statements 

September 30, 2001 and 2000 

1. Reporting Entity:

The U.S. Government Printing Office (GPO) 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 economic, efficient, and 

effective means for the production, procurement, and dissemination of Government 

information products. 

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. 

2. Significant Accounting Policies: 

A. Basis of Consolidation

GPO prepares annual financial statements that meet the requirements of 31 U.S.C. 

§3515(b) in accordance with 44 U.S.C. §309(e). The accompanying consolidated financial 

statements of GPO include the accounts of all funds under the agency’s control (see Note 

2C) that have been established and maintained to account for the resources of GPO. 

GPO maintains its fund balances with the U.S. Department of the Treasury and 

submits required information incorporating its financial and budget data into the overall 

Federal Government structure. For purposes of financial management and reporting, GPO 

has issued a regulation (GPO Instruction 825.18A Internal Control Program) which effectively adopts the federal standards for financial reporting and internal controls in a 

manner consistent with a legislative agency. GPO has not adopted 31 U.S.C. §3512 

(formerly the Federal Managers’ Financial Integrity Act of 1982), the Federal Management 

Improvement Act of 1996, and the Government Performance and Results Act of 1993, as 

39
these statutes are not applicable to GPO. However, GPO uses these authoritative sources 

as guidance in its operations. 

The 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. 

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

preparation of the consolidated financial statements. Intra-agency transactions that were 

eliminated to consolidate GPO financial statements for the years ended September 30, 

2001 and 2000, are reflected in the following table. 

(Dollars in thousands) 

Printing and reproduction: 

Congressional printing and binding 

Sales of publications 9,558 12,887 

Salaries and expenses 14,759 13,475 

GPO internal use 356 374 

110,773 107,800 

Data processing 2,102 2,339 

Miscellaneous 622 753 

$113,497 $110,892 

2001 2000 

$ 86,100 $ 81,064 

Total printing and reproduction 

Total

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

and expenses and other internal transactions (e.g., internal-use forms, electronic repairs) 

provided by In-house Printing Operations. This elimination was $4,583,000 and 

$4,360,000 for the years ended September 30, 2001 and 2000, respectively. 

Beginning in Fiscal Year 1998, GPO provided the U.S. Census Monitoring Board 

with administrative support services for a fee. This reimbursable inter-agency service 

agreement expired on September 30, 2001. The expenses incurred on behalf of the 

[former] Board and the subsequent reimbursements to GPO have been removed from 

GPO’s financial statements. 

B. Basis of Accounting

As allowed by the Federal Accounting Standards Advisory Board (FASAB), and as 

further discussed in the following paragraphs, the accompanying 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. 

40
As a legislative branch agency, GPO is not required to follow the executive agency 

accounting principles established by the Comptroller General under 31 U.S.C. §3511. 

GPO has historically prepared its consolidated financial statements in accordance with 

GAAP, based on accounting standards issued by the Financial Accounting Standards Board 

(FASB), the private-sector standards setting body. In October 1999, the Federal Accounting 

Standards Advisory Board (FASAB) was designated by the American Institute of Certified 

Public Accountants (AICPA) as the standards setting body for GAAP financial statements 

of federal government entities. FASAB has indicated, however, that financial statements 

prepared based upon accounting standards published by the FASB may also be regarded 

as GAAP for those federal agencies, such as GPO, that have issued financial statements 

based upon FASB accounting standards in the past. Accordingly, consistent with historic 

reporting, the consolidated financial statements of GPO are presented in accordance with 

accounting standards published by the FASB. 

C. Methods of Funding

The Department of Treasury maintains a revolving fund and a general fund for the 

accounting of resources financing GPO’s various programs and operations authorized by 

the Congress. 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 revolving 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 (see General Fund). 

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 customers for the cost of 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). 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 

41
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), 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. 

Both of these two 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.

D. Revenue Recognition 

In-house Printing and Binding – By law, GPO must be reimbursed for the cost of 

printing and binding services furnished customers. Consequently, all Revolving Fund 

revenues from in-house printing and binding work (work not commercially procured) are 

recognized on a value-added basis, as work is performed. 

Commercially Procured Printing and Binding – Revolving Fund revenues from 

commercially procured printing and binding are recognized on the date the contract 

requirements are fulfilled, which is generally the date of shipment by the commercial 

printer to the customer agency. 

Distributing or Selling Publications – Revolving Fund revenues from distributing or 

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

services have been performed. 

Appropriation Revenues – Appropriation revenues are recorded when qualifying 

expenses are incurred. The amount of appropriations expended and the 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. 

Deferred Revenues – Deferred revenues result from the receipt of customer remittances for products or services that will be delivered or provided in the future. Deferred 

revenues are classified into the following categories: deferred subscription revenue, 

customer deposits-held on account, customer deposits-unfilled orders, and advance 

billings to Federal agencies. 

42
“Deferred subscription revenue” represents the value of paid subscription service that 

has not yet been provided to customers for products such as the Congressional Record and

the Federal Register. The category “Customer deposits-held on account” represents 

amounts received from customers for deposit in pre-established accounts that provide 

customers the convenience of sending periodic payments to pay for products ordered, 

rather than remitting payments for each item ordered. “Customer deposits-unfilled orders” 

represent funds received for products (subscriptions, publications, etc.) not available for 

immediate shipment. Revenue for these transactions will be recognized at the time the 

products are delivered. Finally, “Advance billings to Federal agencies” are advance 

payments made by agencies to cover the cost of producing large printing orders. This 

revenue is recognized as work is completed. 

E. Funds with U.S. Treasury 

Funds with U.S. Treasury represent all balances in GPO’s accounts with the Department of the 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, 2001 and 

2000 follows. 

(Dollars in thousands) 

Revolving fund: 

Unrestricted

Restricted 81,990 92,429 

On-hand or in-transit 262 248 

172,153 176,776 

Appropriations by fiscal year: 

1996 - 5,698

1997 2,227 11,318 

1998 640 1,747 

1999 665 1,544 

2000 3,768 27,786 

2001 30,189 -

37,489 48,093 

$209,642 $224,869 

2001 2000 

$ 89,901 $ 84,099 

Total revolving fund 

Total appropriations 

Total

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

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

employees’ accrued salaries and annual leave. These funds cannot be used other than for 

those purposes. 

In fiscal year 2001, GPO received $6 million under Public Law 107-20, dated July 24, 

2001, in supplemental funding for the express purpose of replacing air conditioning and 

43
lighting systems. These unexpended appropriated funds are included in the restricted 

balance in 2001. 

An agreement between GPO and the Census Monitoring Board (CMB) provided for 

CMB funds to be reported on GPO’s Treasury statements. For fiscal year 2001, GPO 

included $1,425,273 for the CMB on GPO’s FACTS II Treasury report; however, this 

amount was excluded from GPO’s financial statements. In fiscal year 2000, this amount 

was $2,464,000. 

All appropriated funds were either expended or obligated at September 30, 2001 and 

2000 (see Note 12), with the exception of the $6 million supplemental appropriation 

discussed above. 

F. Inventories

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

weighted average cost method, or market, and are net of an allowance for surplus publications. The allowance for surplus publications is established for the estimated value of 

potentially obsolete or excess publications held in inventory. 

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

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

supplies. This inventory is valued at the lower of cost, using the weighted moving average 

cost method, or market, net of an allowance for materials and supplies obsolescence. 

There is no provision for paper obsolescence due to the frequency of use. 

The components of inventories as of September 30, 2001 and 2000 follow. 

(Dollars in thousands) 

Publications for sale $12,690 $11,520 

Allowance for surplus publications (2,715) (2,643) 

Publications for sale, net 9,975 8,877 

Paper 5,564 4,874 

Materials and supplies 9,101 8,984 

Allowance for obsolescence (2,182) (2,068) 

12,483 11,790 

Inventories, net $22,458 $20,667 

2001 2000 

Paper, materials, and supplies, net 

G. Property, Plant, and Equipment 

Property and equipment purchases and additions are valued at cost. Printing equipment transferred to GPO from other Federal agencies is valued in accordance with JCP 

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

approximates fair market value. 

44
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 respective estimated useful 

life of the asset. The standard estimated useful life, or range of estimated useful lives, for 

each asset category follows. 

Category Estimated Useful Life 

Buildings and improvements 42 to 50 years 

Plant machinery and equipment 5 to 20 years 

Office machinery and equipment 5 years 

Computer hardware 5 years 

Computer software 3 years 

Furniture and fixtures 5 years 

Vehicles 3 to 6 years 

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

H. 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-ofthe-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 currently in use. 

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. 

I. Annual, Sick, and Other Types of 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. At 

September 30, 2001 and 2000, the liability for accrued annual leave was $10,048,000 and 

$10,449,000, respectively. 

Sick leave 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. 

45
J. Accounting for Intra-agency Activities 

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. Federal agencies are required to record or report only those 

financial matters for which they are directly responsible. Financial matters maintained or 

reported by other Federal agencies in which GPO is indirectly involved include employee 

benefit plans (see Note 3) and certain legal situations (see Note 10). 

K. Statements of Cash Flows

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

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

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

identify financing acquired from outside sources, and to identify the major non-operating 

(investing) uses of funds. For purposes of these financial statements, cash is considered to 

be funds with U.S. Treasury, as defined in Note 2E. 

L. Workers’ Compensation Liability 

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

compensation and medical benefits that GPO will be obligated to pay. GPO discounted 

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

future payments for estimated cost of living adjustments and consumer price index 

increases. The probability of future payments was based on historical benefit payment 

patterns combined with current information related to individual benefit claims. The estimated liability of $67.7 million as of September 30, 2001, increased by $31.4 million 

from the prior year, primarily due to changes in assumptions made by the Department of 

Labor which are summarized in Note 8. 

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 amount of assets and liabilities, as well as 

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

and the amount of revenues and expenses reported during the reporting period. Actual 

results could differ from these estimates. 

N. Reclassification of Fiscal Year 2000 Balances 

Reclassifications have been made to fiscal year 2000 balances to present them on a 

comparable basis with the fiscal year 2001 financial statements. 

3. Employee Benefit Plans:

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

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

makes payroll deductions from employees for their pension contributions. The required 

46
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. 

A. 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 2001 and 2000 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 $9.0 million and $9.3 

million for the fiscal years ended September 30, 2001 and 2000, respectively. 

B. 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 2001 and 2000, 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 $5.6 million and $5.1 million in 

fiscal year 2001 and 2000, respectively. Contributions by GPO to TSP for fiscal years 2001 

and 2000 were $2.0 million and $1.9 million, respectively. 

C. 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 $80,400 in 2001 and 

$76,200 in 2000) 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, 2001 and 2000 totaled $5.9 million and $5.7 million, respectively. 

47
D. 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 (see Notes 3A and 3B). 

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 postemployment benefits provided by others, such as OPM. To the extent that normal costs 

exceed current contributions, the standard requires that an additional expense be recognized by the employing agency for the future estimated cost of post-employment benefits 

not currently funded. SFFAS No. 5 also requires that the estimated expense amount be 

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

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

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

the current cost of these programs in its financial statements since OPM is responsible for 

funding the normal cost component. 

48
4. Accounts Receivable: 

Accounts receivable as of September 30, 2001 and 2000, consists of the following. 

(Dollars in thousands) 

Federal Agencies: 

Unbilled completed work $108,954 $132,319 

Unbilled work in process 10,062 5,568 

Billed completed work 9,340 8,376 

Subtotal 128,356 146,263 

Other receivables: 

The public 622 604 

GPO employees 1,148 1,132 

Subtotal 1,770 1,736 

130,126 147,999 

Allowance for doubtful accounts (3,192) (1,793) 

$126,934 $146,206 

2001 2000 

Total accounts receivable 

Total accounts receivable, net 

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, 2001, this balance included 

finished work for which invoices have 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 the U. S. Treasury’s On-line Payment and Collections (OPAC) system in 

October 2001. At September 30, 2000, this balance included finished work for which 

invoices had not be prepared of $36.6 million, unbilled commercial printing of $72 

million, and finished work of $23.7 million that was collected via the U.S. Treasury’s 

OPAC system in October 2000. 

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

as of September 30, 2001 and 2000, 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. 

The allowance for doubtful accounts is based on GPO’s collection experience. The 

allowance account increased from approximately $1.8 million at September 30, 2000 

to approximately $3.2 million at September 30, 2001 due to an increase in Department 

of Defense accounts receivable greater than 18 months old. 

49
5. Property, Plant, and Equipment: 

Property, plant, and equipment as of September 30, 2001 and 2000 consisted of 

the following. (Dollars in thousands) 

Land $ 9,977 $ -

Buildings 8,656 8,656 - -

Subtotal 18,633 8,656 9,977 9,977 

Building improvements 55,468 41,984 13,484 15,444 

Leasehold improvements 1,049 915 134 162 

Plant machinery and equipment 75,133 54,617 20,516 22,454 

Office machinery and equipment 18,105 14,659 3,446 4,681 

Computer software 9,485 8,594 891 10,492 

Furniture and fixtures 3,084 2,030 1,054 1,335 

3,185 2,857 328 417 

Capital improvements in process 22 - -

Software development in process 1,114 - 1,114 3,030 

Subtotal 166,645 125,656 40,989 58,015 

$185,278 $134,312 $50,966 $67,992 

Acquisition

Accumulated

Depreciation & 

Ammortization

2001

Net

2000

Net

$ 9,977 $ 9,977 

Vehicles

22

Total

Value Book Value Book Value 

6. Accounts Payable and Accrued Expenses: 

Accounts payable and accrued expenses as of September 30, 2001 and 2000 were 

composed of the following. 

(Dollars in thousands) 

Accounts payable: 

Commercial printing $42,701 $66,209 

U.S. Government agencies 12,848 12,758 

Other 4,908 6,388 

60,457 85,355 

Accrued salaries and wages 12,968 11,177 

State and local payroll taxes 737 766 

$74,162 $97,298 

2001 2000 

Total accounts payable 

Total accounts payable and accrued expenses 

The liability for commercial printing accounts payable of $42.7 million as of September 30, 2001, reflects a decrease in the account balance of about 36 percent when 

compared to the $66.2 million balance in the account at the end of fiscal year 2000. This 

decrease in the liability account balance was, in part, due to a large volume of Internal 

Revenue Service work in the account at September 30, 2000. 

50
7. Deferred Revenues:

As of September 30, 2001 and 2000, deferred revenue consisted of the following. 

(Dollars in thousands) 

Customer deposits-held on account $47,607 $61,956 

Deferred subscription revenue 9,206 11,922 

Customer deposits-unfilled orders 1,588 1,241 

Advance billings to Federal agencies 1,111 9,511 

$59,512 $84,630 

2001 2000 

Total

Customer deposits-held on account totaled $47.6 million at September 30, 2001. 

This represents $42 million received in advance from printing and binding customer agencies to cover future printing requirements and $5.6 million received in advance by Sales of 

Publications Program customers enabling them to purchase publications without remitting 

cash with each order. Customer deposits are refunded upon request. 

The decrease in customer deposits-held on account from $61.9 million in fiscal year 

2000 to $47.6 million in fiscal year 2001, primarily results from one customer (Center for 

Medicare and Medicaid Services) that withdrew $10.6 million in 2001 to fund unexpected 

postage costs. 

The $1.1 million in advance billings to Federal agencies is a decline of $8.4 million 

when compared to the $9.5 million balance at the end of fiscal year 2000. In fiscal year 

2000, GPO collected $8.1 million in advance from the Internal Revenue Service (IRS) to 

provide necessary capital to fund large IRS printing jobs. 

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

The Workers’ Compensation Liability, including the Medical Liability, is estimated at 

approximately $67.7 million at September 30, 2001, compared to $36.2 million at the 

end of fiscal year 2000. The estimate also includes a factor to cover those individuals 

injured but not reported. 

The Workers’ Compensation Liability in both years represents the sum of projected 

annual benefit payments after adjusting for the effect of inflation on both wages and 

medical payments, and after discounting to present value using the Congressional Budget 

Office’s economic assumptions for 10-year Treasury notes and bonds. 

2005 and 

Interest Assumptions 2001 2002 2003 2004 thereafter

2001 N/A 5.21% 5.21% 5.21% 5.21%

2000 6.80% 5.80% 5.80% 5.80% 5.80%

51
Wage inflation factors (cost of living adjustment, or COLA) and medical inflation 

factors (consumer price index for medical costs, or CPIM) were used to calculate the estimated future compensation and medical payments. The COLA and CPIM factors used to 

develop the estimated liability at September 30, 2001 and 2000 follow. 

September 30, 2001 

2006 and 

Factors 2002 2003 2004 2005 thereafter

COLA 3.00% 2.56% 2.50% 2.50% 2.50%

CPIM 4.15% 4.09% 4.09% 4.09% 4.09%

September 30, 2000 

2005 and 

Factors 2001 2002 2003 2004 thereafter

COLA 1.84% 1.70% 1.57% 1.45% 1.45%

CPIM 3.83% 3.92% 3.98% 4.02% 4.02%

Retention rates used to develop the estimated liability for fiscal years 2001 and 2000 

are shown on the following table. They were developed using the Agency’s historical data. 

Beginning in fiscal year 2001, claims were divided into two categories: permanent disability/death (PD), and non-permanent disability (NP). 

Retention Rates 2001 2000

PD NP Combined

Medical Claims 97.9% 59.1% 84.0%

Compensation Claims 97.3% 73.9% 95.0%

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

expectancy rates were based on annuity tables to estimate the expected remaining life 

based upon claimant’s age as of September 30, 2001. Life expectancy tables were taken 

from the Center for Disease Control’s National Vital Statistics Report, Volume 48, No. 18, 

dated February 5, 2001, for the fiscal year 2001 estimate, and from the Department of the 

Treasury’s Internal Revenue Service Publication 939, General Rule for Pensions and Annuities, dated June 1997, for the fiscal year 2000 estimate. 

52
9. Commitments:

A. Operating Leases

As of September 30, 2001, GPO was committed to various non-cancelable 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 

2002 $1,642 $ 274 $197 $2,113 

2003 1,642 243 114 1,999 

2004 1,586 169 85 1,840 

2005 964 159 83 1,206 

2006 241 111 - 352 

2007 and beyond - 96 - 96

Total minimum lease payments $6,075 $1,052 $479 $7,606 

Rent expense for the years ended September 30, 2001 and 2000, were $5,577,000 and 

$6,044,000, respectively. 

B. Commitments on Undelivered Orders

Some of GPO’s orders for goods and services have been placed, but have not been delivered at fiscal year-end. Total undelivered orders for all GPO activities were approximately 

$109.7 million and $110.9 million as of September 30, 2001 and 2000, respectively. 

10. Contingencies:

Administrative Proceedings, Legal Actions, and Claims 

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

brought by or against it. In the opinion of GPO management and legal counsel, the ultimate resolution of these proceedings, actions, and claims will not materially affect the 

financial position or results of operations of GPO. 

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

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

thereto may be funded by those agencies. In most cases, tort claims are administered and 

resolved by the U.S. Department of Justice, and any amounts necessary for resolution are 

obtained from a Special Judgment Fund maintained by the Department of the Treasury. 

Amounts paid from this fund on behalf of the GPO were $34,000 and $85,000 for the 

years ended September 30, 2001 and 2000, respectively, and are not reflected in GPO's 

consolidated financial statements. 

53
11. Net Position:

A. Revolving Fund Cumulative Results of Operations: 

Retained Earnings — Retained earnings for the Revolving Fund includes net operating results since its inception, reduced by excess receipts 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. 

During fiscal year 2001, GPO changed its accounting for certain items previously 

reported as invested capital. Specifically, depreciation of assets acquired with Federal 

appropriations that are restricted to the acquisition of fixed assets, as well as donated fixed 

assets, are no longer recorded as an adjustment directly to invested capital. Additionally, 

invested capital is now reported as a component of the cumulative results of operations. 

Below is a summary of the changes to the cumulative results of operations in the 

fiscal years ended September 30, 2001 and 2000. 

(Dollars in thousands) 

Retained Invested 

Cumulative Results of Operations Earnings Capital Total 

Balance at September 30, 1999 $95,000 $95,616 $190,616 

Donated equipment, net - (65) (65) 

Reclassification to transfer depreciation 

expense for air-conditioning system - (444) (444) 

Net loss for fiscal year ending 

September 30, 2000 (115) - (115) 

Balance at September 30, 2000, 

as previously reported 94,885 95,107 189,992 

Reclassification of book-value 

of air-conditioning system 2,228 (2,228) -

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

Net loss for fiscal year ending 

September 30, 2001 (45,021) - (45,021) 

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

B. Unexpended Appropriations: 

As of September 30, 2001, GPO had obligated services for the unexpended appropriations for the Congressional Printing and Binding of $21,118,000, and Salaries and 

Expenses of $14,108,000, for a total of $35,226,000. At September 30, 2000, these 

54
amounts were $26,012,000 for the Congressional Printing and Binding and $15,867,000 

for Salaries and Expenses, totaling $41,879,000. 

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

million from the Congressional Printing and Binding Appropriations to the Printing and 

Binding Revolving Fund to cover the cost of Congressional work submitted, but not 

completed. Also, Congress approved $3.3 million transferred from the Salaries and 

Expenses Appropriations to the Printing and Binding Revolving Fund to pay for the printing and distribution of government publications selected by the depository libraries. These 

are also included in unexpended appropriations as of September 30, 2001. 

In August 2001, Congress authorized $6 million to enable GPO to replace antiquated air conditioning and lighting systems. This amount is included in unexpended 

appropriations as of September 30, 2001. These replacement systems will be capitalized 

as assets upon completion, along with internal engineering services required in planning 

and installation. 

55
12. Appropriated Funds:

A. Available Appropriations 

Total net appropriations made available, after rescissions and supplemental appropriations, for fiscal years ended September 30, 2001 and 2000, were $81,205,000 and 

$73,297,000, respectively, for Congressional Printing and Binding, and $27,893,000 and 

$29,872,000, respectively, for Salaries and Expenses of the Superintendent of Documents. 

B. Expended Appropriations

Expended appropriations for program operations for the years ended September 30, 

2001 and 2000 follow. 

(Dollars in thousands) 

2001 2000 

Congressional printing and binding: 

Congressional Record products 

Miscellaneous publications and 

printing and binding 23,658 19,188 

Hearings 16,742 18,954 

Bills, resolutions, and amendments 10,878 5,173 

Details to Congress 2,685 2,332 

Other 12,410 14,238 

86,100 81,064 

Salaries and expenses: 

Depository library distribution 25,188 25,755 

Cataloging and indexing 3,602 2,866 

By-law distribution 592 673 

International exchange 271 530 

29,653 29,824 

115,753 110,888 

Reconciliation of expended appropriations to the 

consolidated statements of revenues and expenses: 

115,753 110,888 

Eliminations (Intra-agency) (622) (753) 

Consolidated revenues from appropriations $115,131 $110,135 

$ 19,727 $ 21,179 

Total congressional printing and binding 

Total salaries and expenses 

Total expended appropriations 

Total expended appropriations 

56
13. 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, 2001 and 2000. GPO estimates the fair value of financial instruments at 

September 30, 2001 and 2000 to be the carrying value. Funds with the U.S. Treasury 

represent balances in GPO’s accounts with the U.S. Department of the Treasury, accounts 

receivable are primarily due from various agencies, and accounts payable are primarily due 

to various commercial vendors. 

14. 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) 

Amount Percent Amount Percent 

Department of Defense $123,517 17.3% $136,376 16.9% 

13.2% $102,509 12.7% 

Department of Health & Human Services 11.4% 9.6%

Congress of the United States 10.8% 10.0%

2001 2000

Department of the Treasury $ 94,256

$ 81,037 $ 68,333 

$ 76,600 $ 81,064 

57
U.S. Government Printing Office

Consolidating Balance Sheet by Fund Type 

As of September 30, 2001 

(Dollars in thousands) 

(Unaudited)

Assets

Current Assets 

$163,986 $16,370 $ - $209,642 

Accounts receivable, net 168,378 1,267 1,386 - 171,031 (44,097) 126,934 

Inventories:

Publications for sale, net - 9,975 - - 9,975 - 9,975 

Paper 5,564 - - - 5,564 - 5,564 

Materials and supplies, net 6,919 - - - 6,919 - 6,919 

12,483 9,975 - - 22,458 - 22,458 

Prepaid expenses 374 - - - 374 - 374 

345,221 19,410 17,756 21,118 403,505 (44,097) 359,408 

Land and buildings 18,633 - - - 18,633 - 18,633 

Building improvements 55,468 - - - 55,468 - 55,468 

Leasehold improvements 1,049 - - - 1,049 - 1,049 

Plant machinery and equipment 75,133 - - - 75,133 - 75,133 

Office machinery and equipment 18,105 - - - 18,105 - 18,105 

Computer software 9,485 - - - 9,485 - 9,485 

Furniture and fixtures 3,084 - - - 3,084 - 3,084 

3,185 - - - 3,185 - 3,185 

Capital improvements in process 22 - - - 22 -

Software development in process 1,114 - - - 1,114 - 1,114 

Less: Accumulated depreciation 

and amortization (134,312) - - - (134,312) - (134,312) 

and equipment 50,966 - - - 50,966 - 50,966 

$396,187 $19,410 $17,756 

Printing

and Binding 

Operations

Sales of 

Publications

Operations

Salaries and 

Expenses

Appropriation

Congressional

Printing and 

Binding

Appropriation Eliminations Eliminations Consolidated 

Revolving Fund General Fund 

Funds with U.S. Treasury $ 8,168 $21,118 $209,642 

Total inventories, net 

Total current assets 

Property, Plant, and Equipment 

Vehicles

22

Net property, plant, 

Total assets $21,118 $454,471 $(44,097) $410,374 

Total Before 

58
U.S. Government Printing Office

Consolidating Balance Sheet by Fund Type (continued) 

As of September 30, 2001 

(Dollars in thousands) 

(Unaudited) 

Liabilities and Net Position 

Current Liabilities 

Accounts payable and accrued expenses $38,959 $ - $118,259 

Deferred revenue 43,153 16,359 - - 59,512 - 59,512 

Accrued annual leave 10,048 - - - 10,048 - 10,048 

128,853 55,318 3,648 - 187,819 (44,097) 143,722 

Other Liabilities 

67,653 - - - 67,653 - 67,653 

67,653 - - - 67,653 - 67,653 

196,506 55,318 3,648 - 255,472 (44,097) 211,375 

Net Position 

Cumulative results of operations: 

Retained earnings 

(accumulated deficit) 90,589 (38,497) - - 52,092 - 52,092 

Invested capital 90,290 2,589 - - 92,879 - 92,879 

Unexpended appropriations 18,802 - 14,108 21,118 54,028 - 54,028 

Net position 199,681 (35,908) 14,108 21,118 198,999 - 198,999 

net position $396,187 $19,410 $17,756 

Printing

and Binding 

Operations

Sales of 

Publications

Operations

Salaries and 

Expenses

Appropriation

Congressional

Printing and 

Binding

Appropriation Eliminations Eliminations Consolidated 

Revolving Fund General Fund 

$ 75,652 $ 3,648 $(44,097) $ 74,162 

Total current liabilities 

Workers' compensation liability 

Total other liabilities 

Total liabilities 

Total liabilities and 

$21,118 $454,471 $(44,097) $410,374 

Total Before 

59
U.S. Government Printing Office

Consolidating Schedule of Revenues and Expenses by Fund Type 

For the Fiscal Year Ended September 30, 2001 

(Dollars in thousands) 

(Unaudited) 

Revolving Fund General Fund 

Revenues

Printing and Binding $663,310 $ - $ - $ -

Sales of Publications - 42,407 - - 42,407 - 42,407 

Appropriations - - 29,653 86,100 115,753 (622) 115,131 

Reimbursements - 4,435 - - 4,435 - 4,435 

663,310 46,842 29,653 86,100 825,905 (113,497) 712,408 

Expenses

Printing and reproduction 425,007 356 14,759 86,100 526,222 (110,773) 415,449 

Personnel compensation and benefits 166,127 28,241 11,032 - 205,400 (1,641) 203,759 

Supplies and materials 37,452 1,150 638 - 39,240 (114) 39,126 

Rents, communications, and utilities 14,391 9,721 913 - 25,025 (242) 24,783 

Publications sold - 9,558 - - 9,558 - 9,558 

Depreciation and amortization 6,500 555 283 - 7,338 - 7,338 

Other services 7,014 1,465 581 - 9,060 (727) 8,333 

Surplus publications - 2,270 - - 2,270 - 2,270 

865 1,028 1,447 - 3,340 - 3,340 

657,356 54,344 29,653 86,100 827,453 (113,497) 713,956 

Income (loss) before 

other operating expenses 5,954 (7,502) - - (1,548) - (1,548) 

Other Operating Expenses: 

Impairment loss - (12,037) - - (12,037) - (12,037) 

Changes in actuarial liabilities (31,436) - - - (31,436) - (31,436) 

Net loss $ - $ - - $(45,021) 

Printing

and Binding 

Operations

Sales of 

Publications

Operations

Salaries and 

Expenses

Appropriation

Congressional

Printing and 

Binding

Appropriation Eliminations Eliminations Consolidated 

$663,310 $(112,875) $550,435

Total revenues 

Travel and transportation 

Total expenses 

$(25,482) $(19,539) $(45,021) $ 

Total Before 

60
U.S. Government Printing Office

Consolidating Schedule of Cash Flows by Fund Type 

For the Fiscal Year Ended September 30, 2001 

(Dollars in thousands) 

(Unaudited) 

Revolving Fund General Fund 

Cash Flows from Operating Activities 

Net loss $ $ - $ - - $(45,021) 

Adjustments to net loss: 

Depreciation and amortization 7,339 - - - 7,339 - 7,339 

Impairment loss 12,037 - - - 12,037 12,037

and equipment (61) - - - (61) - (61) 

Revenue from donated assets (170) - - - (170) - (170) 

Changes in assets and liabilities: 

(Increase) decrease in assetsAccounts receivable 4,027 1,478 (1,174) - 4,331 14,942 19,273 

Inventories (694) (1,097) - - (1,791) - (1,791) 

Prepaid expenses 357 - - - 357 - 357 

Increase (decrease) in liabilitiesAccounts payable and 

accrued expenses (21,978) 16,401 (384) (2,232) (23,135)

Deferred revenue (22,265) (2,853) - - (25,118) - (25,118) 

Accrued annual leave (401) - - - (401) - (401) 

31,436 - - - 31,436 - 31,436 

9,627 13,929 (1,558) (2,232) 19,766 - 19,766 

Net cash provided by (used in) 

operating activities (15,855) (5,610) (1,558) (2,232) (25,255) - (25,255) 

Cash Flows from Investing Activities 

Capital expenditures (2,387) - - - (2,387) - (2,387) 

and equipment 107 - - - 107 - 107 

Net cash used in investing activities (2,280) - - - (2,280) - (2,280) 

Cash Flows from Financing Activities 

Increase (decrease) in 

unexpended appropriations 18,802 - (1,599) (4,895) 12,308 - 12,308 

Net cash used in financing activities 18,802 - (1,599) (4,895) 12,308 - 12,308 

Net Increase (decrease) in Funds 

667 (5,610) (3,157) (7,127) (15,227) - (15,227) 

162,997 13,778 19,849 28,245 224,869 - 224,869 

$163,664 $16,692 $21,118 - $209,642

Printing

and Binding 

Operations

Sales of 

Publications

Operations

Salaries and 

Expenses

Appropriation

Congressional

Printing and 

Binding

Appropriation Eliminations Eliminations Consolidated 

(25,482) $(19,539) $(45,021) $ 

Gain on disposal of property, plant, 

(8,193) (14,942) 

Workers' compensation liability 

Total adjustments 

Proceeds from sale of property, plant, 

with U.S. Treasury 

Funds with U.S. Treasury, beginning of year 

Funds with U.S. Treasury, end of year $ 8,168 $209,642 $ 

Total Before 

61
U.S. Government Printing Office

Supplemental Schedule of Balance Sheets for Revolving Fund 

As of September 30, 2001 and 2000 

(Dollars in thousands) 

(Unaudited) 

Assets

Current Assets 

$163,986 $162,996 $13,779

Accounts receivable 168,378 172,855 1,267 2,745 

Inventories 12,483 11,789 9,975 8,878 

Prepaid expenses 374 731 - -

345,221 348,371 19,410 25,402 

Land and buildings 18,633 18,633 - -

Building improvements 55,468 55,495 - -

Leasehold improvements 1,049 1,214 - -

Plant machinery and equipment 75,133 75,348 - -

Office machinery and equipment 18,105 17,592 - -

Computer software 9,485 18,544 - -

Furniture and fixtures 3,084 3,062 - -

3,185 2,958 - -

Capital improvements in process 22 - - -

Software development in process 1,114 3,030 - -

Less: Accumulated depreciation 

and amortization (134,312) (127,884) - -

50,966 67,992 - -

$396,187 $416,363 $19,410 $25,402 

2001 2000 2001 2000

Printing and Binding 

Operations

Sales of Publications 

Operations

Funds with U.S. Treasury $ 8,168 

Total current assets 

Property, Plant, and Equipment 

Vehicles

Net property, plant, and equipment 

Total assets 

62
$172,154 $ - $172,154 $176,775 $ - $176,775 

169,645 (44,097) 125,548 175,600 (29,444) 146,156 

22,458 - 22,458 20,667 - 20,667 

374 - 374 731 - 731 

364,631 (44,097) 320,534 373,773 (29,444) 344,329 

18,633 - 18,633 18,633 - 18,633 

55,468 - 55,468 55,495 - 55,495 

1,049 - 1,049 1,214 - 1,214 

75,133 - 75,133 75,348 - 75,348 

18,105 - 18,105 17,592 - 17,592 

9,485 - 9,485 18,544 - 18,544 

3,084 - 3,084 3,062 - 3,062 

3,185 - 3,185 2,958 - 2,958 

22 - - - -

1,114 - 1,114 3,030 - 3,030 

(134,312) - (134,312) (127,884) - (127,884) 

50,966 - 50,966 67,992 - 67,992 

$415,597 $(44,097) $371,500 $441,765 $(29,444) $412,321 

Before

Eliminations Eliminations Consolidated 

Before

Eliminations Eliminations Consolidated 

2001 2000

22

Total Revolving Fund Total Revolving Fund 

63 
U.S. Government Printing Office

Supplemental Schedule of Balance Sheets for Revolving Fund 

As of September 30, 2001 and 2000 

(Dollars in thousands) 

(Unaudited) 

Printing and Binding Sales of Publications 

Operations Operations

Liabilities and Net Position 

Current Liabilities 

Accounts payable and accrued expenses $38,959 $23,007 

Deferred revenue 43,153 65,418 16,359 19,212 

Accrued annual leave 10,048 10,449 - -

128,853 173,337 55,318 42,219 

Other Liabilities 

67,653 36,217 - -

67,653 36,217 - -

196,506 209,554 55,318 42,219 

Net Position 

Cumulative results of operations: 

Retained earnings (accumulated deficit) 90,589 116,519 (38,497) (19,406) 

Invested capital 90,290 90,290 2,589 2,589 

Unexpended appropriations 18,802 - - -

Net position 199,681 206,809 (35,908) (16,817) 

$396,187 $416,363 $19,410 $25,402 

2001 2000 2001 2000

$ 75,652 $ 97,470 

Total current liabilities 

Workers' compensation liability 

Total other liabilities 

Total liabilities 

Total liabilities and net position 

64
$114,611 $(44,097) $120,477 $(29,444) 

59,512 - 59,512 84,630 - 84,630 

10,048 - 10,048 10,449 - 10,449 

184,171 (44,097) 140,074 215,556 (29,444) 186,112 

67,653 - 67,653 36,217 - 36,217 

67,653 - 67,653 36,217 - 36,217 

251,824 (44,097) 207,727 251,773 (29,444) 222,329 

52,092 - 52,092 97,113 - 97,113 

92,879 - 92,879 92,879 - 92,879 

18,802 - 18,802 - - -

163,773 - 163,773 189,992 - 189,992 

$415,597 $(44,097) $371,500 $441,765 $(29,444) $412,321 

Before

Eliminations Eliminations Consolidated 

Before

Eliminations Eliminations Consolidated 

2001 2000

$ 70,514 $ 91,033 

Total Revolving Fund Total Revolving Fund 

65 
U.S. Government Printing Office

Consolidating Schedule of Income (Loss) before 

Other Operating Expenses by Major Program 

For the Fiscal Years Ended September 30, 2001 and 2000 

(Dollars in thousands) 

(Unaudited) 

Printing and Binding Information Dissemination Congressional Printing 

Operations Operations and Binding 

Revenues:

Printing and binding $648,276 $739,993 $ - $ - $ - $ -

Sales of blank paper 12,307 13,675 - - - -

Sales of waste and scrap 722 991 - - - -

Sales of publications - - 42,407 45,479 - -

Appropriations - - 29,653 29,824 86,100 81,064 

Reimbursements - - 4,435 5,215 - -

661,305 754,659 76,495 80,518 86,100 81,064 

Expenses:

Printing and reproduction 425,007 511,213 15,115 13,849 86,100 81,064 

Personnel compensation 

and benefit 165,917 161,212 39,273 40,140 - -

Supplies and materials 37,432 37,152 1,788 2,163 - -

Rents, communications, 

and utilities 13,660 12,876 10,634 12,096 - -

Publications sold - - 9,558 12,887 - -

Depreciation and 

amortization 5,823 6,179 838 1,029 - -

Other services 6,775 7,304 2,046 2,089 - -

Surplus publications - - 2,270 2,790 - -

865 3,904 2,475 5,161 - -

655,479 739,840 83,997 92,204 86,100 81,064 

Income (loss) before 

Other Operating Expenses $ 5,826 $(7,502) $(11,686) $ - $ -

2001 2000 2001 2000 2001 2000 

Total revenues 

Travel and transportation 

Total expenses 

$ 14,819 

66
Total GPO 

Other Operations Before Eliminations Eliminations Total GPO 

$2,005 $2,020 $650,281 $742,013 $(112,875) $(110,139) $537,406 $631,874 

- - 12,307 13,675 - - 13,675

- - 722 991 - - 722 991 

- - 42,407 45,479 - - 45,479

- - 115,753 110,888 (622) (753) 115,131 110,135 

- - 4,435 5,215 - - 4,435 5,215 

2,005 2,020 825,905 918,261 (113,497) (110,892) 712,408 807,369 

- - 526,222 606,126 (110,773) (107,800) 415,449 498,326 

210 250 205,400 201,602 (1,641) (1,833) 203,759 199,769 

20 17 39,240 39,332 (114) (117) 39,126 39,215 

731 704 25,025 25,676 (242) (292) 24,783 25,384 

- - 9,558 12,887 - - 9,558 12,887 

677 678 7,338 7,886 - - 7,338 7,886 

239 197 9,060 9,590 (727) (850) 8,333 8,740 

- - 2,270 2,790 - - 2,270 2,790 

- - 3,340 9,065 - - 3,340 9,065 

1,877 1,846 827,453 914,954 (113,497) (110,892) 713,956 804,062 

$ 3,307 $ - $ - $ 3,307 

2001 2000 2001 2000 2001 2000 2001 2000

12,307

42,407

$ 128 $ 174 $ (1,548) $ (1,548) 

67
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, 2001 and 2000 

(Dollars in thousands) 

(Unaudited) 

Revenues:

Printing and binding $173,187 $181,164 $ 759 $1,217 

Sales of blank paper 12,307 13,675 - -

Sales of waste and scrap 722 991 - -

186,216 195,830 759 1,217 

Expenses:

Printing and reproduction ----

Personnel compensation 

and benefits 128,589 125,195 1,316 1,311 

Supplies and materials 36,026 35,801 179 294 

Rents, communications, 

and utilities 6,451 6,492 412 274 

Depreciation and amortization 5,182 5,520 7 

Other services 5,963 6,375 60 43 

677 1,156 9 

182,888 180,539 1,983 1,969 

Income (loss) before Other Operating Expenses $ 3,328 $(1,224) $ (752) 

2001 2000 2001 2000

Plant Printing Operations Regional Printing 

Total revenues 

33

Travel and transportation 14

Total expenses 

$ 15,291 

68
Total In-House Printing Purchased Printing Total Printing and Binding Operations 

$173,946 93 $182,381 92 $474,330 100 $557,612 100 $648,276 98 $739,993 98 

12,307 7 13,675 7 - - - - 12,307 2 13,675 2 

722 - 991 1 - - - - 722 - 991 -

186,975 100 197,047 100 474,330 100 557,612 100 661,305 100 754,659 100 

- - - - 425,007 90 511,213 93 425,007 63 511,213 66 

129,905 70 126,506 65 36,012 8 6 165,917 26 161,212 22 

36,205 19 36,095 18 1,227 - 1,057 - 37,432 6 37,152 5 

6,863 4 6,766 3 6,797 1 6,110 1 13,660 2 12,876 2 

5,189 3 5,553 3 634 - 626 - 5,823 1 6,179 1 

6,023 3 6,418 3 752 - 886 - 6,775 1 7,304 1 

686 - 1,170 1 179 - 2,734 - 865 - 3,904 1 

184,871 99 182,508 93 470,608 99 557,332 100 655,479 99 739,840 98 

$ 2,104 1 7 1 $ 280 - $ 5,826 1 2

2001

Percent of 

Revenues 2000 

Percent of 

Revenues 2001 

Percent of 

Revenues 2000 

Percent of 

Revenues 2001 

Percent of 

Revenues 2000 

Percent of 

Revenues

34,706

$ 14,539 $ 3,722 $ 14,819 

69
U.S. Government Printing Office

Supplemental Schedule of Income (Loss) before 

Other Operating Expenses for Information Dissemination 

For the Fiscal Years Ended September 30, 2001 and 2000 

(Dollars in thousands) 

(Unaudited) 

Revenues:

Sales of publications $42,407 100 $45,479 100 

Appropriations -- --

Reimbursements -- --

42,407 100 45,479 100 

Expenses:

Printing and reproduction 292 1 270 1 

Personnel compensation and benefits 25,834 61 26,319 57 

Supplies and materials 1,052 2 1,196 3 

Rents, communications, and utilities 8,277 20 9,461 21 

Publications sold 9,558 23 12,887 28 

Depreciation and amortization 499 1 658 1 

Other services 1,337 3 1,210 3 

Surplus publications 2,270 5 2,790 6 

895 2 2,503 6 

50,014 118 57,294 126 

Income (loss) before Other Operating Expenses (18) $ (11,815) (26) 

Percent of Percent of 

2001 Revenues 2000 Revenues 

Sales of Publications Programs 

Total revenues 

Travel and transportation 

Total expenses 

$ (7,607)

70
Agency Distribution Services Salaries and Expenses Programs Total Information Dissemination 

$ - - $ - - $ - - $ - - $42,407 55 $45,479 57 

- - - - 29,653 100 29,824 100 29,653 39 29,824 37 

4,435 100 5,215 100 - - - - 4,435 6 5,215 6 

4,435 100 5,215 100 29,653 100 29,824 100 76,495 100 80,518 100 

64 1 104 2 14,759 50 13,475 46 15,115 20 13,849 17 

2,407 55 2,674 51 11,032 37 11,147 37 39,273 51 40,140 51 

98 2 177 3 638 2 790 3 1,788 2 2,163 3 

1,444 33 1,379 26 913 3 1,256 4 10,634 14 12,096 15 

- - - - - - - - 9,558 12 12,887 16 

56 1 2 283 1 289 1 838 1 1,029 1 

128 3 159 3 581 2 720 2 2,046 3 2,089 3 

- - - - - - - - 2,270 3 2,790 3 

133 3 511 10 1,447 5 2,147 7 2,475 3 5,161 6 

4,330 98 5,086 97 29,653 100 29,824 100 83,997 109 92,204 115 

$ 105 2 $ 129 3 $ - - $ - - $ (7,502) (9) $(11,686) (15) 

2001

Percent of 

Revenues 2000 

Percent of 

Revenues 2001 

Percent of 

Revenues 2000 

Percent of 

Revenues 2001 

Percent of 

Revenues 2000 

Percent of 

Revenues

82

71
U.S. Government Printing Office

Supplemental Schedule of Appropriated Funds 

For the Fiscal Years Ended September 30, 2001 and 2000 

(Dollars in thousands) 

(Unaudited) 

Congressional

Revolving Salaries and Printing and Total

Unexpended Appropriations, 

beginning of year (on cash basis) $ - $20,010 $28,244 

Funds Provided 

Appropriations - 71,305 99,198 103,169 

Supplemental Appropriations 6,000 - 9,900 15,900 -

12,802 - - 12,802 -

18,802 47,903 109,449 176,155 156,229 

Funds Applied 

Obligated appropriations: 

Current year - 61,645 78,909 77,115 

Prior years - 17,186 28,152 31,021 

Funds transferred to the 

Revolving Fund - 3,302 9,500 12,802 -

- 31,532 88,331 119,863 108,136 

Unexpended Appropriations, 

end of year (on cash basis) 18,802 16,371 21,118 56,291 48,093 

Adjustments

Intra-agency accounts receivable - 1,385 - 1,385 50 

Intra-agency accounts payable - (3,648) - (3,648) (6,264) 

Unexpended Appropriations, 

end of year (on accrual basis) $18,802 $14,108 $21,118 

Fund

Appropriation

Expenses

Appropriation

Binding

Appropriation 2001 2000

$ 48,255 $ 53,060 

27,893

Transfers

Total funds available 

17,264

10,966

Total funds applied 

$ 54,028 $ 41,879 

72
73

March 5, 2002 

Mr. Paul Geraty 

KPMGLLP 

United States Government Printing Office 

Washington, DC 20401 

2001 M ~treet, NW 

Washington, DC 20036-3389 

Dear Mr. Gcraty: 

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 30,2001, and 

for the year then ended, we make the following representations: 

I. The GPO is responsible for establishing and maintaining an 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 persoiUlel, 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 pennit 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 

financiaJ statements. 

3. 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. 
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There have been no changes subsequent to September 30, 2001 that would significantly affect 

internal controls over financial reporting. 

Sincerely, 

I ~~·~ ~iMARIO Public Printer