A

Rp

2002
20

On January 16th, we saw our loved ones launch into a brilliant,

cloud-free sky. Their hearts were full of enthusiasm, pride in country,

faith in their God, and a willingness to accept risk in the pursuit of

knowledge — knowledge that might improve the quality of life for all

mankind. Columbia's 16-day mission of scientific discovery was a

great success, cut short by mere minutes — yet it will live on forever

in our memories. We want to thank the NASA family and people from

around the world for their incredible outpouring of love and support.

Although we grieve deeply, as do the families of Apollo 1 and

Challenger before us, the bold exploration of space must go on. Once

the root cause of this tragedy is found and corrected, the legacy of

Columbia must carry on — for the benefit of our children and yours.

The Families of Columbia 

February 3, 2003
1

20

W.F. Townsend A.V. Diaz Alison McNallyDeputy Director Director Associate Director

The Near Infrared Cameraand Multi-objectSpectrometer took thisimage of a galactic smashup involving four galaxieslocated in the distantuniverse. Called IRAS19297-0406, the collidingsystem glows fiercely ininfrared light because newstars are forming in theresulting dust.
2 3

Landsat 7, the latest in thenation’s long-running Earthremote-sensing satellitesystem, captured this imageof the Chesapeake Bay area.

NASA’s Vision To improve life here, To extend life to there, To find life beyond

20

The colliding galaxiesshown in this Hubble imageare nicknamed “the Mice”because of the long tails ofstars and gas emanatingfrom each galaxy. Otherwiseknown as NGC 7676, thepair will eventually mergeinto a single giant galaxy.This celestial dance wasfound 300 million light-yearsaway in the constellationComa Berenices.
5

20

4

after Reuven Ramaty, a Goddard scientistwho provided the original scientific justification for the mission of studying theSun’s production of solar flares, the mostintense explosions in our solar system.Working with the Jet Propulsion Lab inCalifornia, Goddard personnel oversawthe integration of three instruments onboard the Space Infrared Telescopescheduled for a spring 2003 launch.Instruments included the Goddard –builtInfrared Array Camera.Marking another milestone, a Goddardteam successfully completed the construction of a massive “coded aperturemask,” a critical element of the BurstAlert Telescope that will fly on NASA’slatest gamma-ray burst spacecraft calledSwift. The mask is the largest suchdevice ever built and will play a key rolein precisely locating the origin of gammaray bursts, the most powerful events inthe universe. 

The EOS data management system —EOSDIS — made headlines, too, earningthe distinction of becoming the world’ssingle largest repository of information.This is noteworthy not because of itssize at 2,000 terabytes of data — whichis 100 times larger than the Library ofCongress — but because of the newknowledge it will likely generate.In other supercomputing news, theCenter’s HP AlphaServer SC 45 computer system — named after Dr. MiltHalem, the former Director ofInformation Sciences — earned theranking of 18 in the 20th edition of the“TOP 500” list of the world’s most powerful computing systems. The HewlettPackard system handles billions of calculations per second. Working with the

Ames Research Center in California provides Goddard enhanced capabilities incomputational research for Earth andspace science applications.

2003 MissionsIce, Cloud and landElevation Satellite(ICESat) and CosmicHot Interstellar PlasmaSpectrometer (CHIPS)STS-107, Fast ReactionExperiments EnablingScience TechnologyApplications andResearch (FREESTAR)Hitchhiker Solar Radiation andClimate Experiment(SORCE)Galaxy EvolutionExplorer (GALEX)Space InfraredTelescope Facility(SIRTF) / Infrared ArrayCamera (IRAC)All-Canadian ScienceSatellite, SCISAT-1Coupled Ion-NeutralDynamics Investigation(CINDI)Swift

Plumes of smoke areidentified in this Terraspacecraft image. Knowingthe location of fires helpsfirefighters to allocatetheir resources better.

This Hubble Space

Telescope image taken

with the spacecraft’s newly

installed Advanced

Camera for Surveys shows

a menagerie of galaxies in

the distant universe and

offers a hint of what the

next-generation James

Webb Space Telescope will

be able to see when NASA

launches it in 2010.
7

20

This map, created with TerraModerate-resolutionImaging Spectroradiometer(MODIS) surface reflectanceand model data, shows thepresence of aerosols in theatmosphere. The green huesindicate the location ofnatural particles, such aswind-blown desert dust,while the red areas indicateaerosols, most likely theresult of biomass burning.The gold areas indicate amixture of the two. Goddardscientists plan to incorporateTerra data into moresophisticated computermodels to monitor theeffects of aerosols on aglobal scale.

H
8

Warmer TemperaturesUnderstanding ice sheets and the distribution of the ocean massare crucial. The enormous Larsen ice shelf in Antarctica, in existence since the last Ice Age 12,000 years ago, began to collapseinto the ocean, offering stunning evidence that temperatures arerising and affecting the polar caps.Another tangible sign of Earth’s changing climate — particularly inthe form of warmer temperatures — appeared a few monthslater. Scientists from Goddard and the National Oceanic andAtmospheric Administration confirmed that the Antarctic ozonehole in September was much smaller than it was in 2000 and2001. Another first, researchers also announced that the hole hadsplit into two, a scientific anomaly. Goddard scientists attributedthis unusual ozone activity to warmer-than-normal temperatures

in the Antarctic. 

Instrumental data confirmed what scientists

had observed with Goddard spacecraft.

According to researchers with the

Goddard Institute for Space Studies

(GISS), 2002 recorded the second

warmest global surface temperature in

more than a century of data gathering.

Using different assumptions about

greenhouse gas emissions, GISS

researchers also projected warming over

the next 50 years. Their computer climate

model predicts a global warming of about 

2.5-3.0 degrees Fahrenheit (-16.3 to -16.1 Celsius) if 9

20

This series of imagestaken by Terra’sModerate ResolutionImaging Spectroradiometer (MODIS) showsthe dramatic collapse ofthe northern section ofthe Larsen B ice shelf, alarge floating ice mass onthe eastern side of theAntarctic Peninsula —evidence of risingtemperatures. NASA and the National Oceanic and Atmospheric

Administration confirmed

that the ozone hole over

the Antarctic (depicted in

blue) was much smaller in

2002 than it was in 2000

and 2001, and that it split

into two separate holes —

something that has never

happened before.
10

Space technology also found an unlikely beneficiary in the worldof speedskating. At the 2002 Olympic games in Salt Lake City,speedskater Chris Witty won a total of 11 medals in long- andshort-track races. At the 1998 games in Nagano, Japan, Wittytook home two medals. She attributed her success in Salt Lake

City to a Goddard-developed polishingtechnology that gave her skates a 15percent improvement in glide, whilemaintaining their razor-sharp edge.The new technology was based on thesame principles used in polishingspace optics. Because of the technology transfer made possible, Witty andothers on the U.S. Olympic teamskated into history. 

NASA technology found its way into 20 different Baltimore Citymiddle and high schools as part of a project aimed at determiningthe cause of pediatric asthma in Baltimore City. Using a deviceknown as the “Sun Photometer,” students and teachers gathereddata to help determine the size and quantity of aerosols in thevicinity of their schools. This research initiative provided a firsttime look at the distribution of aerosols across the city in relationto the incidence of asthma, one of the most common chronic illnesses in Baltimore. 11

20

Speedskater Chris Witty,who won 11 medals at the2002 Olympic games in SaltLake City, visited Goddardand explained how aGoddard-developedpolishing technology gaveher skates a 15 percentimprovement in glide.

This still image illustratesthe distribution of activefires across the planet onJuly 11, 2002. Active firesdetected by Terra's MODISsensor are shown in red.Never before have scientistshad the opportunity tomap fire across the entireEarth with such detail,accuracy, and frequency.

These images, produced

from data collected by

Terra's Multi-angle Imaging

Spectro-Radiometer, show a

large dust cloud that

extended across countries

bordering the eastern

Mediterranean Sea on

October 18, 2002. This

cloud was situated between

about 1.2 miles (2 km) and

3.4 miles (5.5 km) above sea

level, the data reveal.
12

include joint effort in SeaWinds, SAFARI, GRACE, CloudSat, QuickScatterometer, SOLVE, coastal studies, CERES, Calipso, network supportand shuttle payloads, such as Freestar on STS 107.Earth Observing-1 (EO-1) was launched successfully in 2000 to flightvalidate a variety of new technologies aimed at lowering the cost andincreasing the performance of future Earth science missions. The spacecraft's planned one-year mission was extended because of the highinterest of the remote sensing research and applications community. Asa result of the superior performance of the satellite's three imaginginstruments and exceptional value of the collected data, an interim agreement was reached between NASA and the United States GeologicalSurvey to continue EO-1 operations to augment the EO-1 scientific database and promote technology applications.

This image taken by NASA’sexperimental spacecraft,EO-1, shows the swath ofdestruction that resultedafter a tornado rippedthrough the town of LaPlata, Maryland, in April2002. The tornadoregistered 4 out of 5 on theFujita scale making it thestrongest in Maryland’sweather history.

Goddard’s latest Earth

Observing System spacecraft,

Aqua, is launched aboard a

Delta II rocket from the

Western Test Range of

Vandenberg Air Force Base.

It previously was known as

the EOS-PM platform. Aqua

was launched May 4, 2002.
15

20

The Hubble SpaceTelescope’s Near InfraredCamera and Multi-ObjectSpectrometer opened its“near infrared eyes” on theuniverse, snapping this viewof a star-forming region inthe Cone Nebula. The newimage was released afterspace-walking astronautsinstalled a new cryocoolerthat restored life to theinstrument.
17

20

16

The fix will keep NICMOS working until the Hubble retires laterthis decade and is replaced by a follow-on telescope, now knownas the James Webb Space Telescope (JWST). In September, NASA announced the selection of TRW as theprime contractor to build Hubble’s technological and scientificsuccessor. When launched in 2010, JWST will give scientists atGoddard, Jet Propulsion Laboratory and elsewhere an even betterview into space and time, allowing the analysis of minisculespecks of light that Hubble cannot detect. And yet another of NASA’s Great Observatories significantly contributed to the world of science. Nearly 90 years after AlbertEinstein described gravity as the warping of space-time, scientists using data gathered by NASA’s Chandra X-Ray Observatory— managed by the Marshall Space Flight Center in Alabama —and the European XMM-Newton discovered that light emanatingnear a black hole lost its energy as it climbed out of a gravitational well created by the black hole. The observation showedthat the black hole’s powerful gravity warped the space and timenext to it, allowing yet another of Einstein’s insights to stand thetest of time. 

Astronomers used theHubble Space Telescope tomeasure the velocities ofstars whirling around thecrowded core of thisglobular cluster, G1, located2.2 million light-years fromEarth in the Andromedagalaxy. There, they found amedium-size black hole.Astronomers believe that ifG1 contains a black holenow, it most likelycontained one when thegalaxy formed billions ofyears ago. 

Another technological

marvel proving its worth

to scientists in their quest

to understand the

universe is the longduration balloon seen in

the distance of this photo. 
18 19

20

Where Are We Going?Our planet depends on the light and energy the Sun provides.Without the Sun, life as we know it on Earth would cease toexist. Consequently, understanding the mechanics of the Sun andits impact on the Earth has always been a key focus at Goddard.Goddard scientists announced that a solar eruption, called aCoronal Mass Ejection (CME), that appeared to hit Earth head-onactually originated on the backside of the Sun and expanded sideways to the Earth. CME eruptions can hurl a billion tons ofelectrified gas into space at a million miles per hour. Solarastronomers watch the Sun closely for these Earth-directedCMEs because they can generate severe space storms,adversely affecting communications, power grids, and spacewalking astronauts. This new insight led scientists to broadentheir view of what constituted a potential threat. Another Goddard spacecraft, the Imager for Magnetopause toAurora Global Exploration, also provided the first global picture ofthe role that Earth’s outer atmosphere plays in space storms,which occasionally disrupt spacecraft — a significant discoverygiven earlier beliefs that the solar wind was solely responsible.The spacecraft also was selected as one of the top five finalistsfor the NASA Continuous Improvement Award. Goddard is collaborating with NASA’s Marshall Space Flight Center and the UnitedKingdom’s Particle Physics and Astronomy Research Council on a

Goddard scientists discovered that the Coronal Mass Ejection shown in this series of photos originated on the back side of the Sun and expanded sideways to strike Earth. Although it was not a head-on blow, its billion tons of electrified gas were powerful enough to generate a moderate space storm, which can disrupt communication and power grids on Earth. In this map created from data gathered by the gamma ray spectrometer on NASA’s 2001 Mars Odyssey, the deep blue areas indicate soil enriched by hydrogen. Scientists believe that the polar regions contain up to 50 percent water ice in the upper 3 feet (1 meter) of the soil. 
20

NASA selected TRW, now

known as Northrop

Grumman Space

Technology, to build the

more technologically

advanced James Webb Space

Telescope, which is depicted

here in an artist’s rendition.

During the Hubble SpaceTelescope ServicingMission, astronauts installedthe new Advanced Camerafor Surveys and a Goddardbuilt cryocooler thatrestored life to theobservatory’s Near InfraredCamera and Multi-objectSpectrometer.

forming star just 450 light-years from Earth in the direction of theconstellation Taurus. These disks contain gas and dust that havenot fallen into the star and are believed to be the birthplace ofplanets. Made with the Goddard-designed Space TelescopeImaging Spectrograph, the observation shows gaps in the disk —regions where planets may be forming. Perhaps more compelling was an earlier announcement thatHubble directly detected and analyzed the atmosphere of aplanet outside the solar system. The unique discovery of sodiumin the atmosphere of a planet that orbits a yellow, Sun-like star150 light-years away demonstrated that it was possible tomeasure the chemical makeup of a planet’s atmosphere andsearch for chemical markers of life beyond Earth.
23

20

Twenty-two schools fromMaryland, Virginia, RhodeIsland and Pennsylvaniavisited the Maryland StateFair to compete in theGoddard-sponsored FIRST(For Inspiration andRecognition of Science andTechnology) contest. Theirrobots ran obstacle coursesand performed othersporting-like feats todetermine which teambuilt the best robot. 
25

20

24

School Apprenticeship Research Program, designed principally forminority students. During their 8-week internship, the studentsconducted cutting-edge research and worked on state-of-the-artequipment.In addition, 20 middle school-age girls worked one-on-one withGoddard’s women scientists, technicians, researchers and engineers as part of the Center’s SISTER program. The mentoringprogram paired the girls with the Goddard professionals, whoshowed their students the different opportunities available in thefields of math, science, and technology. Working with the Glenn Research Center in Ohio, Goddard isinvolved in the Science, Engineering, Mathematics andAerospace Academy at the University of Maryland Eastern Shore.Students in grades three through twelve are involved in interactive group activities in the fields of mathematics, science,engineering and technology to ignite interest and provide encouragement for strengthening mathematics skills.At the university level, 16 undergraduate students worked withGoddard’s most innovative scientists and engineers as part of theNASA Academy, a 10-year-old program designed to expose students already interested in aerospace-related careers to a varietyof job-related experiences. Following the 10-week program, four

As the year drew to aclose, Goddard reachedout to students youngand old by exhibiting atNBC 4’s “Digital EdgeExpo” at the WashingtonConvention Center. Inthis image, visitorsexamine Earth imagerytaken by NASA’s highlysuccessful Landsatspacecraft. Visitors toGoddard’s booth weretreated to robotdemonstrations and vividimagery of the ozonehole over the Antarcticand global fires. Channel4 News featuredGoddard’s booth on itsevening news.

Making astronomy

accessible to students with

physical or learning

challenges is the objective

of this NASA-funded

educational program in

Howard County, Maryland.

The program uses Internet

technologies and other

tools to teach the wonders

of the universe. 
26

In Anne Arundel County, Maryland, meanwhile, high school students are now studying Earth science as a system, learning howthe atmosphere, water, and land masses interact and relate toone another. NASA scientists use this systematic approach whenplanning their Earth science missions. Goddard educationalexperts provided content and teacher training, and according tothe school system, the course is among the most popularscience electives in the county.Classroom OpportunitiesGoddard scientists also devoted their time to work on the JasonProject. The popular multidisciplinary program, which uses NASAunique communications technologies to bring science into theclassroom, featured an expedition to the coldest and mostremote regions of the planet. Entitled “Frozen Worlds,” studentsexamined current research in geology, glaciology, biology, astrobiology, oceanography, and climatology. These programs are examples of how Goddard can demonstrateto teachers that science and discovery are fun and exiting. Theydraw on human inquisitiveness and give educators a first-handlook at how science really works.

At the 2002 D.C.

Regional Botball

Tournament held at

George Mason

University’s Patriot

Center and sponsored

by Goddard, students

from 59 area schools

designed, built and

programmed robots

made entirely of Lego

building blocks. They

competed on a 4-foot by

8-foot (1.2-meters by 2.4-

meters) game board,

scoring points by

moving colored balls

into scoring position.

Equipped with sensors,

the robots turned

themselves on and off,

reacted to their

opponents, and

maneuvered on the

game board without the

use of remote controls. 

Students from Eleanor

Roosevelt High School in

Greenbelt, Maryland, view

computer model data

about Earth’s magnetosphere on a threedimensional display.

Interactive displays, such

as this one, explain

complicated data sets and

scientific concepts to

students.
29

20

In an important step insemiconductor processing,a Goddard engineerexamines a photoengravedmicroelectronic detectorarray under a computercontrolled, highmagnification microscopeto ensure that the manylayers remain preciselyaligned to within .00004inches (.0001 cm). 
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouri

State 

31

20

Geographical diObligations by s

Total primecontractawards forFY02

Goddard engineer examines the52,000 lead tiles on the Swiftspacecraft’s Coded Aperture Mask,which allows scientists to pinpointthe location of gamma-ray bursts.The tiles block incoming gammaray, casting a shadow on a detectorbelow the mask. G
FY 

02

123456789

10111213141516171819202122232425

CompanyLockheed Martin Corp. Raytheon Information Systems Co QSS Group, Inc. Boeing Satellite Systems, Inc.TRW, Inc. Swales & Associates, Inc. Science Systems Applications Northrop Grumman Systems Corp.Ball Aerospace & Tech. Corporation ITT Corporation P R C, Inc. Cube CorporationCortez III Service Corporation Parsons Infrastruction & Tech. General Sciences Corporation Averstar, Inc. Mantech Systems Engineering Corp.Computer Sciences Corporation Spectrum Astro, Inc. SRS Information ServicesITT Industries, Inc.NSI Technology Services Corporation L B & B Associates, Inc. Global Science & Tech., Inc. Honeywell Technology Sols., Inc. 

0 50 100 150 200

$156.7

$132.0

$100.7

$89.0

$86.0

$84.6

$61.2

$51.3

$45.4

$33.4

$25.5

$23.9

$22.7

$19.6

$19.2

$17.7

$16.8

$15.5

$12.6

$10.7

$10.6

$10.5

$9.8

$9.4

$8.6

Number of 

Contracts 

27

14174

10

3

11

52122721

28

312117

15

FY 

01 

126

120

647

581

89

126114151611

—

1817262910222021

 Millions of Dollars Obligated 

Number of 

Contracts 

125

32

192105

8339

141 

13 

6 

20 92 

128 147 

54 43 34 65 

5 3 

69 76 35 60 69 76

FY 

01 

12364

13

58

2010

7

14

9

181120171940151622213423

FY 

02

123456789

10111213141516171819202122232425

Institution Johns Hopkins University Assoc. of Universities for Res. in Astronomy University of Colorado – Boulder University of California – Berkeley California Institute Technology University of Maryland – Baltimore County University of Maryland – College Park New Mexico State University – Las Cruces Institute Software Research University of Alaska – Fairbanks Massachusetts Institute of Technology University of Arizona Smithsonian Institution Pennsylvania State University Columbia University Universities Space Research Southwest Research Institute Wheeling Jesuit College Oklahoma State UniversityUniversity of California – San Diego University of Hawaii Stanford University University of New Hampshire University of Michigan – Ann ArborUniversity of Washington

Millions of Dollars Obligated

$165.3

$90.7

$43.7

$23.4

$21.1

$18.8

$18.5

$17.5

$17.1

$15.5

$13.0

$12.9

$12.3

$11.4$11.4

$11.3

$11.2

$10.9

$10.6

$10.2

$9.7

$9.6

$8.4

$7.4

$7.2

0 20 40 60 80 100 120 140 160 180

20

32

Top 25 Business Contractors for FY02

Top 25 Nonprofit Institutions for FY02

20

33
20

20

Statement of Financial PositionAs of September 30, 2002

2002 2001

(In Thousands of $) (In Thousands of $)

AssetsIntragovernmental Assets:

Fund Balance with Treasury (Note 2) $ 1,759,160 $ 1,454,407

Accounts Receivable, Net (Note 3) – Federal Claims 9,613 12,598Advances and Prepayments (Note 4) 16,898 18,119 

Governmental Assets:

Accounts Receivable, Net (Note 3) – Non-Federal Claims 2,527 2,402Operating Materials & Supplies, Net (Note 5) 174,907 169,457Property, Plant and Equipment, Net (Note 6) 1,712,178 1,942,057Total Assets $ 3,675,284 $ 3,599,040

LiabilitiesLiabilities Covered by Budgetary Resources:Intragovernmental Liabilities:

Accounts Payable $ 55,879 $ 32,908Other Liabilities (Note 7) 113,374 30,058

Governmental Liabilities:

Accounts Payable 474,912 590,701Other Liabilities (Note 7) 10,939 19,363

Total Liabilities Covered by Budgetary Resources $ 655,104 $ 673,030Liabilities Not Covered by Budgetary Resources:Intragovernmental Liabilities:

Other Liabilities (Note 7) $ 669 $ 545

Governmental Liabilities:

Other Liabilities (Note 7) 37,577 36,032 

Total Liabilities Not Covered by Budgetary Resources 38,246 36,577

Total Liabilities $ 693,350 $ 709,607

Net Position (Note 9):Balances: 

Unexpended Appropriations $ 1,133,033 $ 814,320Trust Fund Balance 50 166Invested Capital (Note 9) 1,887,085 2,111,514Cumulative Results of Operations 12 10Future Funding Requirements (38,246) ( 36,577)

Total Net Position 2,981,934 2,889,433

Total Liabilities and Net Position $ 3,675,284 $ 3,599,040The accompanying notes are an integral part of these statements. 34 35
20

2

Basis of PresentationIn accordance with NASA’s Chief Financial Officer (CFO) directive that installations begin the processof fulfilling the requirements legislated by the Chief Financial Officers Act of 1990, regarding thepreparation of subject to audit financial statements (beginning FY 1996), these statements wereformulated from the books and records of GSFC in conformity with form and content proceduresspecified in OMB Bulletin 94-01.Reporting EntityGSFC is one of nine NASA Field Centers established to assist NASA in its mission to provide foraeronautical and space activities. The financial management of NASA’s operations is the responsibilityof Center officials at all organizational levels. Ultimately, the Regional Finance Office, Code 151, withinthe Office of the Center’s Chief Financial Officer is responsible for synthesizing, aggregating, andreporting accounting events to NASA Headquarters Code B and the Department of Treasury (for cashtransactions), in accordance with Agencywide financial management regulations. These statementsrefer only to the Goddard business.The GSFC overall accounting system consists of numerous feeder systems. When combined, theyprovide the basic information necessary to meet internal and external financial reporting requirementsin terms of funds control and accountability. Albeit, it is recognized that the current systems do notmeet OMB Circular A-127 requirements for a single integrated financial system. NASA is moving toimplementing a fully integrated financial system. NASA has selected SAP Public Sector and Education,Inc. to deliver a commercial off-the-shelf accounting system as part of the integrated financial programthat will replace 10 different systems now used by NASA Field Centers. Currently, Goddard is scheduled for deployment in FY 2003.The following five direct appropriations require individual treatment and are distinctly classified inGSFC combined accounting and control systems:(1) Human Space Flight (HSF) — supports human space flight research and development activitiesfor space flight, spacecraft control, and communications actions. This includes research, development,operations, services, maintenance, and construction of facilities, which encompass the repair,rehabilitation, and modification of real and personal property. Beginning in FY 2002, the HSF appropriation also includes budgetary resources for salaries, fringe benefits and related expenses, in addition to support for research operations that were previously funded under Mission Support (MS).(2) Space, Aeronautics and Technology (SAT) — provides for the conduct and support of science,aeronautics, and technology programs. Research, development, operations, services, maintenance,and construction of facilities (repair, rehabilitation, and modification of real and personal property) alsoserve as by-products of this appropriation. Beginning in FY 2002, the SAT appropriation also includesbudgetary resources for salaries, fringe benefits and related expenses, in addition to support forresearch operations that were previously funded under Mission Support (MS).(3) Mission Support (MS) — funds safety, reliability and quality assurance activities in support ofAgency programs and space communication services for NASA programs. The appropriation alsoprovides budgetary resources for salaries, fringe benefits and related expenses, while supportingresearch and construction of facilities. Although still current, FY 2001 is the last year that GSFC willreceive any new funding under this appropriation.(4) Construction of Facilities (C of F) — provides budgetary resources for construction, repair,rehabilitation and modification of facilities, minor construction of new facilities and additions toexisting structures, and facility planning and design. This appropriation was restructured and replacedin the FY 1995 NASA budget.

36 37
38 39

20

Beginning in October 2000, SFFAS No 10 mandated NASA to categorize internal-use software asgeneral PP&E. Thus, the cost of the software must be capitalized if the cost is $100,000 or greaterand the useful life of the software is 2 years or more. The software costs that must be captured andanalyzed include new software, such as internally developed, COTS, and contractor developed; andenhanced software; and software where the enhancement results in significant additional capabilitybeyond which the software was originally intended. This standard resulted in various treatments foreach type of software. If software costs do not meet these guidelines, then they are expensed asincurred. This includes costs to repair design flaws, minor upgrades, data conversion costs,maintenance costs, and training costs.Land values are recorded at acquisition cost and cost of improvements. Buildings are also valuedat acquisition cost, including the cost of capital improvements and fixed equipment required forfunctional use of the facility.Government-owned/contractor-held property is in two distinct categories: real property and work inprogress. Real property is land, buildings, structures and facilities, materials, plant equipment, Agencypeculiar property, special tooling, and special test equipment. Work in progress is construction inprogress and contract work in progress property, which is real property in various stages of completion. Contractors are directed to report annually on NASA Form 1018 real property costing $100,000 ormore and having a useful life of 2 years, as well as all materials and work in progress. These amountsare included in the Statement of Financial Position. Industrial Property Management Specialist (IPMS),Department of Defense (DOD) and the Deputy Chief Financial Officer (DCFO) review this reporting.Liabilities for Reimbursable AdvancesUnder the Economy Act, OMB Circular A-34 and the Federal Acquisition Regulations (FAR), Federalagencies are granted the authority to require advance payment from other Federal agencies. NASAchanged its procedures with advances effective October 1, 2001. Advance payment is now requiredfor all Federal and non-Federal reimbursable agreements; except for those agreements exempted bythe Chief of the Accounting, Reporting and Analysis Branch or the GSFC Deputy Chief FinancialOfficer. GSFC recognizes the advances as unearned revenue thereby recording them as a liability onthe Statement of Financial Position. Revenues and Other Financing SourcesGSFC receives the majority of its funding through multiyear appropriations. These include 3-yearappropriations for construction activities, 2-year appropriations for operational and space flightactivities, and a single year appropriation for civil service payroll and travel. In addition to appropriatedfunds, the Center performs services for Federal and non-Federal customers upon receipt ofcustomers funding authority.
20

NOTE 6 – PROPERTY, PLANT, AND EQUIPMENT (In Thousands):

2002 2001 Change

Government-owned/Government-heldLand $ 4,964 $ 4,964 $ 0Structures, Facilities & Leasehold Improvements 505,363 501,602 3,761Equipment 214,486 204,531 9,955Work-in-Process 37,496 47,473 (9,977)

Total $ 762,309 $ 758,570 $ 3,739

2002 2001 Change

Government-owned/Contractor-heldStructures, Facilities & Leasehold Improvements $ 7,870 $ 7,865 $ 5Equipment 139,137 66,744 72,393Special Tooling 7,119 8,151 (1,032)Special Test Equipment 46,905 81,145 (34,240)Agency-peculiar Property 81,244 121,383 (40,139)Work-In-Process 667,594 898,199 (230,605)

Total $ 949,869 $1,183,487 $ (233,618)Grand Total $1,712,178 $1,942,057 $ (229,879)Decrease in PP&E from FY 01 to FY 02 is due to the write-off of property previously reported to Goddard by several contractors on NASA Form 1018, but the property was actually owned by another agency.NOTE 7 – OTHER LIABILITIES (In Thousands):

Current Non-Current Total

Liabilities Covered by Budgetary Resources:Intragovernmental Liabilities:

Liabilities for Reimbursable Advances $113,374 $ 0 $ 113,374

Total $113,374 $ 0 $ 113,374Governmental Liabilities:

Liabilities for Deposit and Suspense Funds $ (9,641) $ 0 $ (9,641)Accrued Funded Payroll 20,580 0 20,580

Total $ 10,939 $ 0 $10,939Total Liabilities Covered by Budgetary Resources $124,313 $ 0 $ 124,313

Current Non-Current Total

Liabilities Not Covered by Budgetary Resources:Intragovernmental Liabilities

Accounts Payable for Closed Appropriations $ 0 $ 669 $ 669

Total $ 0 $ 669 $ 669Governmental Liabilities:

Accounts Payable for Closed Appropriation $ 0 $11,719 $ 11,719 Liabilities for Receipt Accounts 1 0 1

Unfunded Annual Leave 25,857 0 25,857

Total $ 25,858 $11,719 $ 37,577Total Liabilities Not Covered

by Budgetary Resources $ 25,858 $12,388 $ 38,246

Grand Total $150,171 $12,388 $ 162,559

Accounts payable include amounts recorded for receipt of goods or services furnished to the Center but not disbursed.Additionally, throughout GSFC, cost is recognized and accrued based on information provided monthly by contractors oncost and performance reports (NASA Form 533, Contractor Financial Management Report). The Defense Contract AuditAgency (DCAA) performs independent audits on reported cost to ensure reliability of estimates. Also further assurance isprovided by GSFC resource analysts as a result of examining cost accruals generated from the NF 533s. Please see Note 1 for further discussion on the liability for reimbursable advances. 40 41
NASA technicians remove

Germanium black Kaptonfilm after testing in one ofGoddard's many vacuumchambers.
NP-2003-2-533-GSFC