UNITED STATES 

OFFICE OF GOVERNMENT ETHICS

 

Fiscal Year 2009 

Performance Accountability Report 

Management Discussion and Analysis 

Annual Program Performance Report 

Audited Financial Statements 

November 2009 


UNITED STATES OFFICE OF GOVERNMENT ETHICS

About OGE _____________________

 OGE, established by the Ethics in Government Act of 1978, is the agency within the 

Executive Branch which provides overall direction of Executive Branch policies designed to 

prevent and resolve conflicts of interest and to promote high ethical standards for Executive 

Branch employees. Specifically, OGE is responsible for promulgating and maintaining 

enforceable standards of ethical conduct for nearly 4 million civilian employees and military 

members in over 130 Executive Branch agencies and the White House; overseeing a financial 

disclosure system that reaches 25,000 public and nearly 300,000 confidential filers; providing 

direct education and training products to 5,600 ethics officials; conducting outreach to the 

general public, the private sector and civil society; and sharing good practices with and providing 

technical assistance to state, local, and foreign governments and international organizations. 

 OGE’s greatest resource is its multi-disciplinary staff of attorneys; ethics, finance, and 

training experts; and support staff. OGE leverages its human resources by organizing crossfunctional teams to perform such diverse tasks as reviewing for financial conflicts of interest the 

financial disclosure filings of Senate-confirmed, Presidential appointees, training Executive 

Branch ethics officials, and enhancing oversight of Executive Branch ethics programs. By 

necessity, OGE’s multi-disciplinary staff must be flexible in order to identify and respond to 

emerging needs within the ethics community and the Government as a whole. 

Mission Statement_____________________________________________

 The United States Office of Government Ethics (OGE) exercises leadership in the 

Executive Branch to prevent conflicts of interest on the part of Government employees, and to 

resolve those conflicts of interest that do occur. In partnership with Executive Branch 

departments and agencies, OGE fosters high ethical standards for employees and strengthens the 

public's confidence that the Government's business is conducted with impartiality and integrity. 

OGE’s mission directly supports the President’s goal of responsibly governing the Nation. 

i 
Table of Contents __________________

Letter from the Director 

United States Office of Government Ethics..................................................................... i 

Table of Contents............................................................................................................. ii 

Section I – Purpose.............................................................................................................1 

A. Long Term Strategic Objectives .............................................................................1 

B. Performance Measures ............................................................................................1 

Section II –Fiscal Year 2009 Key Accomplishments ....................................................2

A. Summary Results ....................................................................................................2 

B. Leadership ...............................................................................................................2 

C. Presidential Transition ............................................................................................3 

D. Administrative Improvements ................................................................................4 

Section III – Management Discussion & Analysis of Results ........................................6 

Strategic Goal 1: Strengthening Ethical Culture Within the Executive 

Branch ................................................................................................ 6 

Objective 1.1: Improve the Effectiveness of Ethics Policy ..............................6 

Objective 1.2: Enhance Assistance to and Oversight of 

 Agency Ethics Programs ...........................................................7 

Objective 1.3: Increase Employees’ Awareness of 

 Their Ethics Responsibilities .....................................................8 

Objective 1.4: Increase OGE’s Focus on Senior Officials’ Roles in 

 Implementing Ethics Programs................................................10 

Strategic Goal 2: Preventing Conflicts of Interest ......................................................11 

Objective 2.1: Enhance Assistance to the President and the Senate in 

 the Presidential Appointment Process .....................................11 

Objective 2.2: Monitor Continued Compliance with Conflict of 

 Interest Laws ........................................................................ 12 

Objective 2.3: Administer an Effective Confidential Financial 

 Disclosure System .................................................. 13 

Strategic Goal 3: Promoting Good Governance ........................................................14 

Objective 3.1: Support and Cooperate with Federal, State, and 

 Local Agencies Implementing Programs that 

 Help Support Good Governance..............................................14 

Objective 3.2: Enhance Outreach to the Public and 

 Private Sector and Civil Society ..............................................16 

Objective 3.3: Support United States Foreign Policy Anti-Corruption 

 and Good Governance Initiatives.............................................17 

ii 
iii 

Section IV – Management Assurances ..........................................................................18

Section V – Financial Statement & Independent Auditor’s Report ...........................19
1 

Section I – Purpose____________________________________________

A. Long Term Strategic Goals

 OGE established a five-year strategic plan in 2007 with three goals. The daily work of 

OGE is driven by performance measures for the objectives within each of these goals. 

 Strengthening Ethical Culture Within the Executive Branch: 

o Objective 1.1: Improve the Effectiveness of Ethics Policy 

o Objective 1.2: Enhance Assistance to and Oversight of Agency Ethics Programs 

o Objective 1.3: Increase Employees’ Awareness of Their Ethics Responsibilities 

o Objective 1.4: Increase OGE’s Focus on Senior Officials’ Roles in Implementing 

Ethics Programs 

 Preventing Conflicts of Interest: 

o Objective 2.1: Enhance Assistance to the President and the Senate in the Presidential 

Appointment Process 

o Objective 2.2: Monitor Continued Compliance with Conflict of Interest Laws 

o Objective 2.3: Administer an Effective Confidential Financial Disclosure System 

 Promoting Good Governance: 

o Objective 3.1: Support and Cooperate with Federal, State, and Local Agencies 

Implementing Programs that Help Support Good Governance 

o Objective 3.2: Enhance Outreach to the Public and Private Sector and Civil Society 

o Objective 3.3: Support United States Foreign Policy Anti-Corruption and Good 

Governance Initiatives 

B. Performance Measures

OGE tracks its progress toward achieving its strategic goals through specific objectives 

assessed with reference to established performance measures. Baseline data for the majority of 

measures was established by merging statistical data from a variety of existing sources, including 

ethics training surveys, annual ethics program questionnaires, employee ethics surveys, and 

surveys of ethics officials. Certain performance targets for FY 2009 and thereafter have been 

modified as a result of surveys and OGE's experience in implementing the Strategic Plan. 
2 

Section II – Fiscal Year 2009 Key Accomplishments ____ ____________

A. Summary Results

 In working to meet its strategic goals and performance objectives in FY 2009, OGE 

focused on two key themes: Leadership and the Presidential Transition. Additionally, OGE 

began to make essential improvements to its administrative functions and began replacing an 

obsolete IT infrastructure. 

 In major Presidential transition years, such as FY 2009, OGE must be particularly 

flexible to address the unique, often unforeseeable, challenges posed by a transition period while 

simultaneously maintaining necessary services and functions for over 130 Executive Branch 

agencies. It is imperative for OGE’s components to work in concert toward common goals. 

Following a right-sizing of OGE’s budget for FY 2009, OGE prepared diligently for, and 

managed successfully, the highest volume on record of public financial disclosure filings by 

nominees for Senate-confirmed, Presidential appointments, while restoring it other programmatic 

leadership capabilities to normal levels. Specifically, OGE more than doubled monitoring and 

compliance productivity, tripled training efforts for the approximately 5,600 ethics officials 

throughout the Government, provided daily expert technical assistance to ethics officials from 

FY 2008 to FY 2009 and assumed unanticipated responsibility for additional duties under a new 

ethics-related Executive Order. 

 

B. Leadership 

 Leading and shaping Executive Branch ethics policy and programs is OGE’s primary 

mission. Highlights of OGE’s ethics leadership efforts in FY 2009 include: 

 Communicating regularly with the senior leadership of the departing Administration, 

representatives of the Presidential candidates, the Presidential Transition Team, and 

senior leadership of the new Administration. 

 Providing expert assistance to Government organizations as they established new ethics 

programs and processes. Noteworthy examples include a new ethics program within the 

Office of the Special Inspector General for Afghanistan Reconstruction, new policies 

within the Department of the Treasury addressing the Troubled Asset Relief Program, a 

new standardized contract clause at the Department of State establishing standards for 

personal services contractors, the Panel on Contracting Integrity’s recommendations to 

the Secretary of Defense regarding organizational conflicts of interest requirements for 

contractors involved in Major Weapons Systems Acquisitions, and the Secretary of the 

Interior’s order entititled Enhancing and Promoting an Ethical Culture within the 

Department of the Interior. 

 Partnering with other Government agencies in employee exchanges, which allowed ethics 

officials to receive intensive training at OGE and improved OGE’s understanding of the 

practical needs of the ethics community. 
3 

 Assisting agencies that organize and host conferences to spot potential issues related to 

the Executive Branch ethics program. 

 Encouraging agencies to adopt a strategic, proactive approach for their ethics programs in 

order to move beyond a passive, reactive approach of merely complying with statutory 

and regulatory requirements. This approach allows OGE to share model practices with 

the entire Government ethics community. For example, OGE held numerous workshops 

in which model practices were shared, systematically posted model practices on the OGE 

website, and personalized model practices for agencies under review. 

 Updating ethics officials on legislative developments affecting the Federal ethics 

community and individual agencies. 

 Leveraging training technologies that enable on-demand access to training, which 

dramatically increased training delivered at OGE’s office and agency facilities. 

 Representing the United States at anti-corruption and good governance meetings of 

international organizations of which the U.S. is a member, such as UNODC, the Council 

of Europe’s GRECO, APEC, and the OECD. 

 Using the OGE experience to assist with the development or enhancement of good 

governance programs throughout the world by meeting with, at the request of its foreign 

policy agencies, 41 delegations, totaling 332 people from 80 countries. 

 Sharing good practices with state and local government agencies whose responsibilities 

include ethics and good governance programs, and with non-government organizations 

studying ethical culture in private and government sectors. 

C. Presidential Transition

 OGE’s work during the ongoing Presidential transition underscores the importance of 

OGE’s leadership across the Executive Branch. OGE’s role in the Presidential transition enables 

OGE to impress upon the Government’s most senior leaders the value of cultivating an ethical 

Government workforce. Highlights of OGE’s facilitation of the Presidential transition in FY 

2009 include: 

 Hosting in-person meetings with representatives of both major Presidential candidates’ 

campaign teams prior to the election, and providing those representatives with training on 

the legal requirements imposed by the Executive Branch ethics program and on the 

development of effective ethics programs. 

 Producing and posting guidance on OGE’s website directed at Senate-confirmed, 

Presidential appointees, including a video message from OGE’s Director stressing the 

importance of ethics and financial disclosure and a Presidential Transition Guide. 

 Producing posters that creatively and succinctly conveyed key ethics concepts, which the 

Transition Team displayed in its headquarters. 
4 

 Certifying over 400 financial disclosure reports of nominees to Senate-confirmed, 

Presidential appointees and White House officials. 

 Maintaining a 100% on-time Freedom of Information Act (FOIA) response rate, despite 

an exponential increase in FOIA requests. 

 Issuing eight substantive policy memoranda since January 2009 that implement the new 

Ethics Pledge contained in Executive Order 13490; three additional memoranda are 

pending. 

 Providing training to ethics officials on financial disclosure and providing individual 

agency guidance regarding new lobbyist rules. 

 Using electronic survey technology to conduct an online assessment of agency 

implementation of the Ethics Pledge requirements and the issuance of Ethics Pledge 

waivers. 

 Conducting focused reviews of select agencies’ processes and procedures for collecting, 

reviewing, and certifying financial disclosure reports. 

 Processing a significantly increased volume of termination public financial disclosure 

reports from departing officials from the outgoing Administration. 

 Providing guidance to departing Administration personnel on issues such as seeking 

employment and post-Government employment. 

D. Administrative Improvements

 During the challenging period of the Presidential transition, OGE undertook some 

significant internal changes in order to improve agency efficiency, as well as employee 

satisfaction and well-being. In order to measure the success of these efforts, OGE conducted an 

employee satisfaction survey in August 2009. The survey results indicated a significant 

improvement in employee satisfaction from OGE's 2008 survey with an increase in the number 

of positive responses for 37 of the 40 survey items. Highlights of OGE’s administrative 

improvements in FY 2009 include:

 Appointing and developing new leadership within the organization. 

 Designing a total replacement of OGE’s aged computer network and a migration plan 

from an eDirectory environment to an Active Directory environment in order to meet the 

security standards established by the Federal Desktop Core Configuration. 

 Successfully competing and awarding a contract for the technology replacement. 

 Fully implementing Personal Identity Verification (PIV) for all employees in accordance 

with HSPD-12. 

 Completing all requirements of Eagle Horizon, the 2009 Continuity of Operations 

Exercise. 
5 

 Completing the initial requirements of the President's 2009 Hiring Reform Initiative, 

including establishing an agency SWAT team to map and streamline OGE's hiring 

process and re-writing Job Opportunity Announcements in plain language. 
6 

Section III – Management Discussion & Analysis of Results 

 This section of OGE’s PAR provides data on OGE’s success in achieving its strategic 

goals and performance objectives. 

Strategic Goal 1 – Strengthening Ethical Culture Within the Executive Branch

o Objective 1.1: Improve the Effectiveness of Ethics Policy 

 OGE continues to earn high marks for its efforts in providing timely and useful guidance 

to ethics officials. Indeed, the positive results related to Objective 1.1 performance measures 

again surpassed previous fiscal year percentages. 

 

Objective 1.1 

Improve the Effectiveness of Ethics Policy 

Performance Targets – Projected 

FY Actual Results in bold 

Performance Measures 

Baseline FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Percent of ethics 

officials who rate OGE 

as responsive to 

emerging ethics program 

issues 

78% 80% 

81% 

80% 

84% 

80% 

88% 

80% 80% 

Percent of ethics 

officials who rate 

guidance as useful 

 

94% 95% 

93% 

95% 

93% 

95% 

95% 

95% 95% 

Percent of ethics 

officials who say they 

receive the guidance 

they need to do their 

jobs effectively 

85% 85%

82%

85% 

88%

85% 

93% 

85% 85% 
7 

o Objective 1.2: Enhance Assistance to and Oversight of Agency Ethics Programs 

 OGE has devoted considerable resources to training ethics officials. In FY 2009, OGE 

trained approximately 2,500 ethics officials. The positive trend assures OGE that this focus on 

training has been successful. In addition, positive indicators in OGE’s program review area 

endorse OGE’s movement toward a more consultative monitoring approach. 

Objective 1.2

Enhance Assistance and Oversight 

Performance Targets – Projected 

FY Actual Results in bold 

Performance Measures 

Baseline FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Percent of ethics officials 

who are satisfied with 

education and training 

provided by OGE to 

support ethics officials 

64% 70%

72% 

75% 

73% 

80% 

86% 

80% 80% 

Percent of ethics officials 

who view OGE’s 

program review process 

as adding value to their 

own programs 

65% 75% 

57% 

85% 

93% 

90% 

94% 

90% 90% 

Percent of agencies that 

conduct internal reviews 

or audits to evaluate their 

program’s compliance 

with applicable ethics 

laws and regulations 

59% 60%

60% 

65% 

61%

65% 

57% 

65% 65% 

Percent of ethics officials 

who are satisfied with 

information shared on 

ethics program model 

practices 

55% 65% 

63% 

70% 

67%

75% 

69% 

75% 75% 
8 

o Objective 1.3: Increase Employees’ Awareness of Their Ethics Responsibilities 

 To strengthen the ethical culture within the Executive Branch, OGE continued efforts to 

raise employee awareness of their ethics responsibilities. OGE provided education and training 

products that agencies could incorporate into their ethics training programs and distributed the 

products throughout the Executive Branch. The following tables show that a high percentage of 

agencies incorporated these products into their programs to increase employee awareness of their 

ethics responsibilities. Additionally, a high percentage of ethics officials are satisfied with the 

products provided by OGE. 

Objective 1.3 

Increase Employee Awareness and Understanding 

Performance Targets – Projected 

FY Actual Results in bold 

Performance Measures 

Baseline FY2007 FY 2008 FY 2009 FY 2010 FY 2011 

Percent of agencies that 

incorporate OGE 

education and training 

products into their 

program 

66% 70% 

72% 

75% 

76% 

80% 

80% 

80% 80% 

Percent of ethics officials 

reporting that they are 

better able to do their 

jobs as a result of OGE 

training 

94% 

85% 85% 

Percent of ethics officials 

who are satisfied with 

employee education and 

training products 

provided by OGE 

44% 55% 

57% 

60% 

65%

70% 

77% 

75% 80% 
9 

Objective 1.3 

Increase Employee Awareness and Understanding 

Performance Targets – Projected 

FY Actual Results in bold 

Performance Measures 

Baseline FY2007 FY 2008 FY 2009 FY 2010 FY 2011 

Percent of agencies that 

incorporate 

OGE-provided education 

and training products to 

promote employees’ 

awareness of their ethics 

responsibilities 

82% 

80% 

82% 

80% 80% 

Percent of agencies that 

are satisfied with OGEprovided education and 

training products 

designed to promote 

employees’ awareness of 

their ethics 

responsibilities 

79% 

80% 

71% 

80% 80% 
10 

o Objective 1.4: Increase OGE’s Focus on Senior Officials’ Roles in Implementing 

Ethics Programs 

 OGE recognizes that commitment and action by agency leadership is the keystone for 

ensuring an agency’s ethical culture and for fostering public confidence in the decision-making 

processes of Government. In FY 2009, OGE continued its emphasis on ensuring agency 

leadership involvement in implementing and supporting the ethics program. Among other 

things, OGE continued to assess, encourage, and applaud leadership efforts related to the ethics 

program during the course of OGE’s plenary and focused reviews of the ethics program. OGE 

also facilitated meetings between agency leadership and OGE’s Director in connection with 

these reviews to underscore the importance of agency ethics programs. 

Objective 1.4 

Promote Agency Leadership 

 Performance Targets – Projected 

FY Actual Results in bold

Performance Measures 

Baseline FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Percent of ethics officials 

who indicate that their 

agency's leaders pay 

attention to ethics 

92% 

90% 

93% 

90% 90% 

Percent of ethics officials 

who indicate that their 

agency's leadership 

demonstrates support for 

the ethics program 

92% 

90% 

90% 

90% 90% 
11 

Strategic Goal 2 – Preventing conflicts of interest

o Objective 2.1: Enhance Assistance to the President and the Senate in the Presidential 

Appointment Process 

 

 The financial disclosure process can be made more efficient through electronic filing 

systems. OGE continued to work with agencies to ensure that systems they implemented met 

standards established by agencies’ CIOs and embedded information is accurate. 

In coordination with agency ethics officials, OGE monitors the timeliness of employee 

compliance with ethics agreements. In general, agencies are to ensure that employees comply 

within 90 days of entering into the agreement. In FY 2009, largely due to the change in 

Presidential administration, almost three times as many ethics agreements were entered into by 

employees than were in FY 2008. Despite the dramatic increase in the number of ethics 

agreements and the overall increase in agency ethics official workload related to the change in 

administration, agencies still ensured that over 90% of ethics agreements were complied with 

within the required time frames. 

Objective 2.1 

Enhance Assistance to the President and the Congress 

Performance Targets – Projected 

FY Actual Results in bold 

Performance Measures 

Baseline FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Number of agencies 

using an electronic 

filing system 

 

2 

 

6 

4 

* 

9 

* 

11 

* * 

Percent of officials who 

comply with ethics 

agreements within 

required time frames 

95% 95% 

98% 

95% 

97% 

95% 

91% 

95% 95% 

Resolves all conflicts 

and technical reporting 

issues for nominee 

financial disclosure 

reports no later than 

five days after a 

nomination is made 

90% 90% 

95% 

90% 

95%

95% 

95% 

95% 95% 
12 

o Objective 2.2: Monitor Continued Compliance with Conflict of Interest Laws 

 Financial disclosure serves an important public function. Through monitoring and 

oversight, OGE ensures that agencies have implemented effective financial disclosure processes. 

In addition, OGE works with agencies to implement alternative disclosure systems when such a 

system may more effectively provide public confidence in the government’s integrity. The 

following two charts, for Objectives 2.2 and 2.3, show continued positive results. 

Objective 2.2 

Monitoring Compliance with Conflict of Interest Laws 

Performance Targets – Projected 

FY Actual Results in bold 

Performance Measures 

Baseline FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Percent of audited 

entities that provide 

public financial 

disclosure report filers 

with feedback after 

their reports have been 

reviewed 

84% 85% 

100% 

90% 

100% 

90% 

100% 

95% 95% 

Percent of audited 

entities that have 

written procedures for 

following up with 

delinquent filers 

49% 60% 

91% 

75% 

85% 

90% 

99% 

90% 90% 
13 

o Objective 2.3: Administer an Effective Confidential Financial Disclosure System 

Objective 2.3 

Improved Administration of Confidential System 

Performance Targets – Projected 

FY Actual Results in bold 

Performance Measures 

Baseline FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Percent of alternative 

systems judged by 

program review to have 

been effectively 

implemented 

60% 65% 

100% 

70% 

100%

80% 

100% 

90% 90% 

Percent of required 

confidential filers who 

filed by end of reporting 

year 

70% 70% 

99% 

75% 

99% 

75% 

TBD* 

80% 80% 

* The results for FY 2009 are not yet available.
14 

Strategic Goal 3 – Promoting good governance

o Objective 3.1: Support and Cooperate with Federal, State, and Local Agencies 

Implementing Programs that Help Support Good Governance 

 In keeping with the broader good governance aspects of supporting a successful transition 

of Administrations, OGE focused a part of its outreach within the Executive Branch on 

opportunities to discuss the implications of a substantial change of senior personnel with federal 

organizations, offices, and officials whose duties would be affected by those changes; these 

groups included the Chief Human Capital Officers, Council of Counsels to the Inspectors 

General, and new members of the SES. In addition, with the issuance of the new Executive 

Order, OGE established a cooperative working relationship with the Office of the Secretary of 

the Senate which is responsible for implementing the Lobbying Disclosure Act so that each 

office would have a clear understanding of the other’s requirements and activities and that 

neither’s activities would inadvertently conflict with the other’s. In addition, within Executive 

Branch agencies OGE continued to support the information needs of federal advisory committee 

managers. OGE’s presentations to and work with these various entities on subjects outside of the 

traditional ethics program was consistently well-received and provided OGE with a better 

understanding of complementary federal programs. 

 OGE continued to serve as a good practice resource to state and local government 

agencies which administer ethics programs as well as to gain insights into their good practices 

through its active participation in the Council on Governmental Ethics (COGEL) on-line 

discussion board and through its participation in the annual COGEL and Heartland Conferences. 

Topics of mutual interest have included lobbying disclosure systems, blind trusts, appearance of 

impropriety issues, training materials, solicitation of charitable contributions by public officials, 

de minimis conflicts, and post employment. OGE also helped facilitate the participation of the 

Executive Director of a State Ethics Commission in a OECD-directed Joint Learning Study with 

Jordan. The experiences of U.S. states, given their size and the range of the types of public 

officials, can be an extremely valuable resource to a country with a similarly-sized population 

and a strong central government system. In turn, the Executive Director has, since his return, 

shared his experiences and lessons learned widely within the COGEL community through its 

newsletter as well as through his individual discussions. 
15 

Objective 3.1 

Increase OGE’s Support of and Cooperation with Federal, State, and 

Local Agencies Implementing Programs That Help Support Good Governance 

Performance Targets

FY Actual Results in bold

Performance Measures 

Baseline FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Number of programs/ 

projects involving federal 

agencies/ organizations 

6 8 

14 

8 

9 

10 

14 

10 10 

Percent of feedback from 

federal program/project 

attendees indicating OGE 

participation was useful 

30% 30% 

95% 

40% 

100% 

50% 

70% 

50% 60% 

Number of 

programs/projects 

involving state/local/ 

government agencies/ 

organizations 

2 2 

5 

2 

3 

3 

6 

3 3 

Percent of feedback from 

state and local 

program/project 

attendees indicating OGE 

participation was useful 

30% 30% 

100% 

40% 

100% 

50% 

67% 

50% 60% 
16 

o Objective 3.2: Enhance Outreach to the Public and Private Sector and Civil Society 

Given the focus on the Presidential transition, OGE directed those resources available for 

domestic outreach primarily to audiences within the Government; nevertheless, the agency met 

its specific target for outreach events to the public. The agency also redid its website, which is 

its primary communication vehicle to the public, and began listing there, for the first time, those 

individuals whose financial disclosure reports were publicly available from the agency. This 

resulted in a substantial increase of requests for the forms which by some measure may be a far 

better indicator of the success of OGE’s efforts in reaching the public than a specific event with 

an audience necessarily limited by the physical space for the audience. 

Objective 3.2 

Enhance Outreach to the Private Sector and Civil Society 

Performance Targets

FY Actual Results in bold

Performance Measures 

Baseline FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Number of meetings, 

speeches, presentations 

and similar outreach 

efforts to organizations 

that represent the 

public, civil society and 

persons who do 

business with the 

Government 

8 10 

12 

10 

13 

12 

12 

12 15 

Percent of feedback 

from attendees 

indicating that 

interaction with OGE 

was useful 

30% 30% 

100% 

40% 

100% 

50% 

100% 

50% 60% 
17 

o Objective 3.3: Support United States Foreign Policy Anti-Corruption and Good 

Governance Initiatives 

This was an extraordinarily busy year for OGE in supporting U.S. anti-corruption foreign 

policy initiatives. OGE staff served as one of the principle U.S. representatives to the working 

group on developing the terms of reference for the review of implementation mechanism for the 

UN Convention Against Corruption; served as a representative to the APEC Anti-Corruption and 

Transparency Task Force and developed the agenda and secured or helped identify 14 APEC 

economy speakers and moderators for a U.S.-China sponsored workshop on the APEC Conduct 

Principles for Public Officials held in early October (all APEC economies attending); served as 

combined second and third round evaluators of two major new GRECO member states; assisted 

the State Department with the MESICIC review process; represented the U.S. at OECD Public 

Governance Directorate’s Global Forum on Public Governance and as a member of its expert 

group; fielded individual country and international organization inquiries on such topics as 

financial disclosure systems, blind trusts, conflicts of interest and gifts; and spoke to 41 

international visitor groups totaling 332 individuals from 80 countries. Consistently OGE 

received genuine thanks and positive feedback from its federal agency partners and from those to 

whom it provided direct technical assistance. OGE is one of the oldest national agencies 

established to help prevent corruption and promote integrity and its willingness to share 

thoughtfully and in context its experiences of both what has and what has not worked is well 

regarded internationally. 

Objective 3.3 

Support U.S. Foreign Policy Anti-Corruption and Good Governance Initiatives 

Performance Targets

FY Actual Results in bold

Performance Measures 

Baseline FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Number of 

programs/projects OGE 

participates in at the 

request of U.S. foreign 

policy agencies/ 

organizations 

7 7 

21 

7 

21 

8 

24 

8 8 

Percent of feedback from 

program/project 

participants indicating 

that interaction with 

OGE was useful 

30% 30% 

90% 

40% 

100% 

50% 

90% 

50% 60% 

19 

Section V – Financial Statements and Independent Auditor’s Report________ 

Limitations of the Financial Statements 

The principal financial statements have been prepared to report the financial position and results 

of operations of the Office of Government Ethics, pursuant to the requirements of 31 

U.S.C.3515(b). The statements have been prepared from the books and records of the Office of 

Government Ethics in accordance with generally accepted accounting principles (GAAP) for 

Federal entities and formats prescribed by the Office of Management and Budget (OMB). The 

statements are in addition to the financial reports used to monitor and control budgetary 

resources, which are prepared from the same books and records. These statements should be read 

with the realization that they are for a component of the United States Government, a sovereign 

entity. 
20 
21 
 

22 
2009 2008

Assets:

Intragovernmental:

Fund Balance With Treasury (Note 2) $ 1,701,883 $ 2,454,523

Accounts Receivable (Note 3) - 37,636

Total Intragovernmental 1,701,883 2,492,159

Accounts Receivable (Note 3) 985 259

Total Assets $ 1,702,868 $ 2,492,418

Liabilities:

Intragovernmental:

Accounts Payable $ 119,857 $ 25,000

Other 163,760 149,117

Total Intragovernmental 283,617 174,117

Accounts Payable 253,188 697,053

Federal Employee and Veterans' Benefits (Note 4) 347,745 335,745

Other (Note 5) 1,218,663 1,230,347

Total Liabilities $ 2,103,213 $ 2,437,262

Net Position:

Unexpended Appropriations $ 737,404 $ 1,228,435

Cumulative Results of Operations (1,137,749) (1,173,279)

Total Net Position $ (400,345) $ 55,156

Total Liabilities and Net Position $ 1,702,868 $ 2,492,418

UNITED STATES OFFICE OF GOVERNMENT ETHICS

BALANCE SHEET

AS OF SEPTEMBER 30, 2009 AND 2008

(In Dollars)

The accompanying notes are an integral part of these statements. 

23 
2009 2008

Program Costs:

Salaries and Expenses:

Gross Costs (Note 7) $ 13,614,907 $ 13,063,488

Less: Earned Revenue 68,149 506,414

Net Program Costs $ 13,546,758 $ 12,557,074

UNITED STATES OFFICE OF GOVERNMENT ETHICS

STATEMENT OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008

(In Dollars)

 

The accompanying notes are an integral part of these statements. 

24 
2009 2008

Cumulative Results of Operations:

Beginning Balances $ (1,173,279) $ (788,376)

Budgetary Financing Sources:

Appropriations Used 13,027,389 11,628,496

Other Financing Sources (Non-Exchange):

Imputed Financing Sources 554,899 543,675

Total Financing Sources 13,582,288 12,172,171

Net Cost of Operations 13,546,758 12,557,074

Net Change 35,530 (384,903)

Cumulative Results of Operations $ (1,137,749) $ (1,173,279)

Unexpended Appropriations:

Beginning Balances $ 1,228,435 $ 1,495,340

Budgetary Financing Sources:

Appropriations Received 13,000,000 11,750,000

Other Adjustments (463,642) (388,409)

Appropriations Used (13,027,389) (11,628,496)

Total Budgetary Financing Sources (491,031) (266,905)

Total Unexpended Appropriations $ 737,404 $ 1,228,435

Net Position $ (400,345) $ 55,156

UNITED STATES OFFICE OF GOVERNMENT ETHICS

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008

(In Dollars)

The accompanying notes are an integral part of these statements. 

25 
26 

2009 2008

Budgetary Resources:

Unobligated Balance Brought Forward, October 1 $ 885,266 $ 1,159,369

Recoveries of Prior Year Unpaid Obligations 697,716 351,876

Budget Authority

Appropriation 13,000,000 11,750,000

Spending Authority From Offsetting Collections

Collected 105,897 468,666

Change In Receivables From Federal Sources (37,748) 37,748

Change In Unfilled Customer Orders

Without Advance From Federal Sources (34,403) 34,403

Less: Permanently Not Available 463,642 388,409

Total Budgetary Resources $ 14,153,086 $ 13,413,653

Status of Budgetary Resources:

Obligations Incurred

Direct $ 13,442,308 $ 11,987,569

Reimbursable 143,591 540,817

Subtotal 13,585,899 12,528,386

Unobligated Balance

Apportioned 35,400 71,861

Unobligated Balance Not Available 531,787 813,406

Total Status of Budgetary Resources $ 14,153,086 $ 13,413,653

Change In Obligated Balance

Obligated Balance, Net

Unpaid Obligations, Brought Forward, October 1 $ 1,641,407 $ 1,285,202

Less: Uncollected Customer Payments From

Federal Sources, Brought Forward, October 1 (72,151) -

Total Unpaid Obligated Balance, Net 1,569,256 1,285,202

Obligations Incurred Net 13,585,899 12,528,386

Less: Gross Outlays 13,394,895 11,820,306

Less: Recoveries of Prior Year Unpaid

Obligations, Actual 697,716 351,876

Change In Uncollected Customer Payments

From Federal Sources 72,151 (72,151)

Obligated Balance, Net, End of Period

Unpaid obligations 1,134,695 1,641,407

Less: Uncollected Customer Payments From

Federal Sources - 72,151

Total, Unpaid Obligated Balance, Net, End of Period $ 1,134,695 $ 1,713,558

Net Outlays

Gross Outlays $ 13,394,895 $ 11,820,306

Less: Offsetting Collections 105,897 468,666

Net Outlays $ 13,288,998 $ 11,351,640

UNITED STATES OFFICE OF GOVERNMENT ETHICS

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008

(In Dollars)

The accompanying notes are an integral part of these statements. 
UNITED STATES OFFICE OF GOVERNMENT ETHICS 

NOTES TO THE FINANCIAL STATEMENTS 

27 

NOTE 1. SUMMARY OF SIGNIFICANT 

ACCOUNTING POLICIES 

A. Reporting Entity 

The Office of Government Ethics (OGE), a 

small agency within the executive branch, was 

established by the Ethics in Government Act of 

1978. In partnership with executive branch 

agencies and departments, OGE fosters high 

ethical standards for employees and 

strengthens the public’s confidence that the 

Government’s business is conducted with 

impartiality and integrity. 

OGE has three divisions under the Office of 

Agency Programs that monitors and provides 

services to federal agency ethic programs. 

They work closely with agencies to identify 

and resolve problem areas, provide educational 

material and stay abreast of budgetary 

concerns and identify issues to be addressed by 

OGE. 

OGE hosts an annual Government Ethics 

Conference to update executive branch ethic 

officials on the most recent developments in 

the ethics area and to provide opportunities to 

enhance their undestanding of the ethics 

statutes, regulations and policies. 

B. Basis of Presentation 

The financial statements have been prepared to 

report the financial position, net cost of

operations, changes in net position, and the 

status and availability of budgetary resources 

of OGE. The statements are a requirement of 

the Chief Financial Officers Act of 1990, the 

Government Management Reform Act of 1994 

and the Accountability of Tax Dollars Act of 

2002. They have been prepared from, and are 

fully supported by, the books and records of 

OGE in accordance with the hierarchy of 

accounting principles generally accepted in the 

United States of America, standards approved 

by the principals of the Federal Accounting 

Standards Advisory Board (FASAB), OMB 

Circular A-136, Financial Reporting 

Requirements and OGE accounting policies 

which are summarized in this note. These 

statements, with the exception of the Statement 

of Budgetary Resources, are different from 

financial management reports, which are also 

prepared pursuant to OMB directives that are 

used to monitor and control OGE's use of 

budgetary resources. Unless specified 

otherwise, all amounts are presented in dollars. 

C. Budgets and Budgetary Accounting 

Congress usually enacts appropriations to 

permit OGE to incur obligations for specified 

purposes. In fiscal years 2009 and 2008, we 

were accountable for General Fund 

appropriations. OGE recognizes budgetary 

resources as assets when cash (funds held by 

the U.S. Treasury) is made available through 

the Department of Treasury General Fund 

warrants. 

D. Basis of Accounting 

Transactions are recorded on both an accrual 

accounting basis and a budgetary basis. 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. Budgetary 

accounting facilitates compliance with legal 

requirements on the use of federal funds. 

E. Revenues & Other Financing Sources 

Congress enacts annual and multi-year 

appropriations to be used, within statutory 

limits, for operating and capital expenditures. 

Additional amounts are obtained from service 
fees and reimbursements from other 

government entities and the public. 

Appropriations are recognized as a financing 

source when expended. Revenues from 

service fees associated with reimbursable 

agreements are recognized concurrently with 

the recognition of accrued expenditures for 

performing the services. 

OGE recognizes as an imputed financing 

source the amount of accrued pension and 

post-retirement benefit expenses for current 

employees paid on our behalf by the Office of 

Personnel Management (OPM). 

F. Taxes 

OGE, as a Federal entity, is not subject to 

Federal, State, or local income taxes, and, 

accordingly, no provision for income taxes has 

been recorded in the accompanying financial 

statements. 

G. Fund Balance with Treasury 

The U.S. Treasury processes cash receipts and 

disbursements. Funds held at the Treasury are 

available to pay agency liabilities. OGE does 

not maintain cash in commercial bank 

accounts or foreign currency balances. 

H. Accounts Receivable 

Accounts receivable consists of amounts owed 

to OGE by other Federal agencies and the 

public. Amounts due from Federal agencies 

are considered fully collectible. Accounts 

receivable from the public include 

reimbursements from employees. An 

allowance for uncollectible accounts 

receivable from the public is established when, 

based upon a review of outstanding accounts 

and the failure of all collection efforts, 

management determines that collection is 

unlikely to occur considering the debtor’s 

ability to pay. 

I. Property, Equipment, and Software 

Property, equipment and software represent 

furniture, fixtures, equipment, and information 

technology hardware and software which are 

recorded at original acquisition cost and are 

depreciated or amortized using the straight-line 

method over their estimated useful lives. 

Major alterations and renovations are 

capitalized, while maintenance and repair costs 

are charged to expense as incurred. OGE's 

capitalization threshold is $50,000 for 

individual purchases and $500,000 for bulk 

purchases. Applicable standard governmental 

guidelines regulate the disposal and 

convertibility of agency property, equipment, 

and software. The useful life classifications 

for capitalized assets are as follows: 

Description Useful Life (years)

Leasehold Improvements 9 

Office Furniture 5 

Computer Equipment 3 

Office Equipment 5 

J. Advances and Prepaid Charges 

Advance payments are generally prohibited by

law. There are some exceptions, such as 

reimbursable agreements, subscriptions and 

payments to contractors and employees. 

Payments made in advance of the receipt of 

goods and services are recorded as advances or 

prepaid charges at the time of prepayment and 

recognized as expenses when the related goods 

and services are received. 

K Liabilities

Liabilities represent the amount of monies or 

other resources likely to be paid by the OGE as 

a result of transactions or events that have 

already occurred. No liability can be paid, 

however, absent an appropriation or other 

funding. Liabilities for which an appropriation 

has not been enacted or other funds received 

are, therefore, classified as not covered by 

budgetary resources. There is no certainty that 

the appropriation will be enacted. 

28 
Additionally, the Government, acting in its 

sovereign capacity, can abrogate liabilities. 

Liabilities not covered by budgetary resources 

on the Balance Sheet are equivalent to amounts 

reported as components requiring or generating 

resources on the Reconciliation of Net Cost to 

Budget. 

L. Accounts Payable 

Accounts payable consists primarily of 

amounts owed to other Federal agencies and 

the public for contracts for goods or services, 

such as leases, utilities, telecommunications 

and consulting and support services. 

M. Annual, Sick, and Other Leave 

Annual leave is accrued as it is earned, and the 

accrual is reduced as leave is taken. The 

balance in the accrued leave account is 

adjusted to reflect current pay rates. Liabilities 

associated with other types of vested leave, 

including compensatory, restored leave, and 

sick leave in certain circumstances, are accrued 

at year-end, based on latest pay rates and 

unused hours of leave. Funding will be 

obtained from future financing sources to the 

extent that current or prior year appropriations 

are not available to fund annual and other 

types of vested leave earned but not taken. 

Nonvested leave is expensed when used. Any 

liability for sick leave that is accrued but not 

taken by a Civil Service Retirement System 

(CSRS)-covered employee is transferred to the 

Office of Personnel Management upon the 

retirement of that individual. No credit is 

given for sick leave balances upon the 

retirement of Federal Employees Retirement 

System (FERS)-covered employees. 

N. Accrued and Actuarial Workers’ 

Compensation 

The Federal Employees' Compensation Act 

(FECA) administered by the U.S. Department 

of Labor (DOL) addresses all claims brought 

by the OGE employees for on-the-job injuries. 

The DOL bills each agency annually as its 

claims are paid, but payment of these bills is 

deferred for two years to allow for funding 

through the budget process. Similarly, 

employees that the OGE terminates without 

cause may receive unemployment 

compensation benefits under the 

unemployment insurance program also 

administered by the DOL, which bills each 

agency quarterly for paid claims. Future 

appropriations will be used for the 

reimbursement to DOL. The liability consists 

of (1) the net present value of estimated future 

payments calculated by the DOL, and (2) the 

unreimbursed cost paid by DOL for 

compensation to recipients under the FECA. 

O. Retirement Plans 

OGE employees participate in either the CSRS 

or the FERS. The employees who participate 

in CSRS are beneficiaries of OGE matching 

contribution, equal to seven percent of pay, 

distributed to their annuity account in the Civil 

Service Retirement and Disability Fund. 

FERS went into effect on January 1, 1987. 

FERS and Social Security automatically cover 

most employees hired after December 31, 

1983. Employees hired prior to January 1, 

1984 elected to join either FERS and Social 

Security, or remain in CSRS. FERS offers a 

savings plan to which OGE automatically 

contributes one percent of pay and matches 

any employee contribution up to an additional 

four percent of pay. For FERS participants, 

OGE also contributes the employer’s matching 

share of Social Security. 

FERS employees and certain CSRS 

reinstatement employees are eligible to 

participate in the Social Security program after 

retirement. In these instances, OGE remits the 

employer’s share of the required contribution. 

OGE recognizes the imputed cost of pension 

and other retirement benefits during the 

employees’ active years of service. OPM 

actuaries determine pension cost factors by 

calculating the value of pension benefits 

expected to be paid in the future and 

communicate these factors to OGE for current 

29 
30 

period expense reporting. OPM also provides 

information regarding the full cost of health 

and life insurance benefits. OGE recognized 

the offsetting revenue as imputed financing 

sources to the extent these expenses will be 

paid by OPM. 

OGE does not report on its financial statements 

information pertaining to the retirement plans 

covering its employees. Reporting amounts 

such as plan assets, accumulated plan benefits, 

and related unfunded liabilities, if any, is the 

responsibility of the OPM. 

P. Use of Estimates 

The preparation of the accompanying financial

statements in accordance with generally 

accepted accounting principles requires 

management to make certain estimates and 

assumptions that affect the reported amounts 

of assets, liabilities, revenues, and expenses. 

Actual results could differ from those 

estimates. 

Q. Imputed Costs/Financing Sources 

Federal Government entities often receive 

goods and services from other Federal 

Government entities without reimbursing the 

providing entity for all the related costs. In 

addition, Federal Government entities also 

incur costs that are paid in total or in part by 

other entities. An imputed financing source is 

recognized by the receiving entity for costs 

that are paid by other entities. OGE 

recognized imputed costs and financing 

sources in fiscal years 2009 and 2008 to the 

extent directed by OMB. 

R. Expired Accounts and Cancelled 

Authority 

Unless otherwise specified by law, annual 

authority expires for incurring new obligations 

at the beginning of the subsequent fiscal year. 

The account in which the annual authority is 

placed is called the expired account. For five 

fiscal years, the expired account is available 

for expenditure to liquidate valid obligations 

incurred during the unexpired period. 

Adjustments are allowed to increase or 

decrease valid obligations incurred during the 

unexpired period but not previously reported. 

At the end of the fifth expired year, the expired 

account is cancelled. 

S. Reclassification 

Certain fiscal year 2008 balances have been

reclassified, retitled, or combined with other 

financial statement line items for consistency 

with current year presentation.
31 

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2009 and 2008 were as 

follows: 

Fund Balances:

2009 2008

Appropriated Funds $ 1,701,883 $ 2,454,523 

Total $ 1,701,883 $ 2,454,523 

Status of Fund Balance with Treasury:

2009 2008

Unobligated Balance

 Available $ 35,400 $ 71,860 

 Unavailable 531,787 813,406 

Obligated Balance Not Yet Disbursed 1,134,696 1,569,257 

Total $ 1,701,883 $ 2,454,523 

NOTE 3. ACCOUNTS RECEIVABLE 

Accounts receivable balances as of September 30, 2009 and 2008 were as follows: 

2009 2008

Intragovernmental

 Accounts Receivable $ - $ 37,636

With the Public

 Receivables from Employees 985 259

Total Accounts Receivable $ 985 $ 37,895

Historical experience has indicated that the majority of the receivables are collectible. There are 

no material uncollectible accounts as of September 30, 2009 and 2008. 

NOTE 4. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

The liabilities on OGE's Balance Sheet as of September 30, 2009 and 2008, include liabilities not 

covered by budgetary resources. Congressional action is needed before budgetary resources can 

be provided. Although future appropriations to fund these liabilities are likely and anticipated, it 

is not certain that appropriations will be enacted to fund these liabilities. 

2009 2008

Intragovernmental – FECA $ 75,132 $ 71,795

Annual Leave 715,856 766,467

Actuarial FECA 347,745 335,745

Total Liabilities $ 1,138,733 $ 1,174,007
32 

NOTE 5. OTHER LIABILITIES

All Other Liabilities are considered current liabilities. 

2009 2008

Intragovernmental Liabilities

FECA Liability $ 75,132 $ 71,796

Payroll Taxes Payable 88,628 77,321

Total Intragovernmental Liabilities $ 163,760 $ 149,117

2009 2008

With the Public

 Payroll Taxes Payable $ 13,140 $ 10,937

 Accrued Funded Payroll and Leave 489,667 452,943

 Unfunded Annual Leave 715,856 766,467

Total Public Liabilities $ 1,218,663 $ 1,230,347

NOTE 6. LEASES 

Operating Leases

OGE occupies office space under a lease agreement that is accounted for as an operating lease. 

The lease term begins on February 2, 2004 and expires on February 1, 2014. 

Asset Category 

Fiscal Year Totals 

2010 $ 1,386,826 

2011 1,401,175 

2012 1,415,909 

2013 1,431,042 

2014 478,711 

Total Future Payments $ 6,113,663 
NOTE 7. INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE 

Intragovernmental costs and intragovernmental exchanges revenue represent goods and services 

exchange transactions made between two reporting entities within the Federal government, and 

are in contrast to those with non-federal entities (the public). Such costs and revenue are 

summarized as follows: 

2009 2008

Total Intragovernmental costs 4,347,387 3,708,566

Total Public costs 9,267,520 9,354,922

 Total Costs 13,614,907 13,063,488

Less: Total Intragovernmental Earned Revenue 65,661 133,280

Less: Total Public Earned Revenue 2,488 373,134

 Total Net Cost $ 13,546,758 $ 12,557,074

NOTE 8. IMPUTED FINANCING SOURCES 

OGE recognizes as imputed financing the amount of accrued pension and post-retirement benefit 

expenses for current employees. The assets and liabilities associated with such benefits are the 

responsibility of the administering agency, the Office of Personnel Management (OPM). For the 

fiscal years ended September 30, 2009 and 2008, respectively, imputed financing was as follows. 

2009 2008

Office of Personnel Management $ 554,899 $ 543,675 

Total Imputed Financing Sources $ 554,899 $ 543,675 

NOTE 9. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE 

UNITED STATES GOVERNMENT 

The President’s Budget that will include FY09 actual budgetary execution information has not yet 

been published. The President’s Budget is scheduled for publication in February 2010 and can be 

found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2010 Budget of the United 

States Government, with the Actual column completed for 2008, has been reconciled to the 

Statement of Budgetary Resources and there were no material differences. 

NOTE 10. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

Obligations incurred and reported in the Statement of Budgetary Resources in 2009 and 2008 

consisted of the following:

2009 2008

Direct Obligations, Category A $ 13,442,308 $ 11,987,569

Reimbursable Obligations, Category A 143,591 540,817

Total Obligations Incurred $ 13,585,899 $ 12,528,386

33 
34 

NOTE 11. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

Statement of Federal Financial Accounting Standards No. 7, Accounting for Revenue and Other 

Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting, states that 

the amount of budgetary resources obligated for undelivered orders at the end of the period 

should be disclosed. For the fiscal years ended September 30, 2009 and 2008, undelivered orders 

amounted to $170,217 and $378,153 respectively. 

NOTE 12. CUSTODIAL ACTIVITY 

OGE's custodial collection primarily consists of Freedom of Information Act requests. While 

these collections are considered custodial, they are neither primary to the mission of OGE nor 

material to the overall financial statements. OGE’s total custodial collections are $108 and $622 

for the years ended September 30, 2009, and 2008, respectively. 

NOTE 13. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET 

OGE has reconciled its budgetary obligations and non-budgetary resources available to its net 

cost of operations. 

2009 2008

Resources Used to Finance Activities:

Budgetary Resources Obligated

Obligations incurred 13,585,899 $ 12,528,386 $ 

Less: Spending Authority From Offsetting Collections and Recoveries 731,462 892,692

Obligations Net of Offsetting Collections and Recoveries 12,854,437 11,635,694

Other Resources

Imputed Financing From Costs Absorbed By Others 554,899 543,675

Total Resources Used to Finance Activities 13,409,336 12,179,369

Resources Used to Finance Items Not Part of the Net Cost of Operations

Change In Budgetary Resources Obligated For Goods,

Services and Benefits Ordered But Not Yet Provided (173,534) 7,779

Resources That Fund Expenses Recognized In Prior Periods 50,611 -

Total Resources Used to Finance Items Not Part of Net Cost of Operations (122,923) 7,779

Total Resources Used to Finance the Net Cost of Operations 13,532,259 12,171,590

Components of the Net Cost of Operations That Will Not Require or

Generate Resources in the Current Period

Components Requiring or Generating Resources in Future Periods

Increase In Annual Leave Liability - 47,095

Other 15,337 338,536

Total Components of Net Cost of Operations That Will Require or

Generate Resources In Future Periods 15,337 385,631

Components Not Requiring or Generating Resources:

Other (838) (147)

Total Components of Net Cost of Operations That Will Not Require or

Generate Resources In The Current Period 14,499 385,484

Net Cost of Operations $ 13,546,758 $ 12,557,074