1

NATIONAL COUNCIL ON DISABILITY

An Independent Federal Agency

Performance & Accountability Report (PAR)

FISCAL YEAR 2009

National Council on Disability (202) 272-2004 Voice

1331 F Street, NW, Suite 850 (202) 272-2074 TTY

Washington, DC 20004 (202) 272-2022 Fax

www.ncd.gov
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TABLE OF CONTENTS

Message from the Chairman 3

Part I: Management’s Discussion and Analysis 6

NCD at a Glance 6

Mission 6

Vision 6

Strategic Goals 7

NCD Organizational Overview 9

NCD Organizational Chart 10

Program Performance Overview 11

Financial Performance Overview 12

Management Controls, Systems and Compliance 13

Part II: Performance Section 14

Performance by Strategic Goals 14

Part III: Financial Section 20

Message from the Executive Director 20

Appropriations History 22

Budget Detail 23

Independent Auditors’ Report 25

Opinion on Financial Statement 25

Consideration of Internal Control 25

Balance Shee 30

Statement of Net Cost 31

Statement of Changes in Net Position 32

Statement of Budgetary Resources 34

Note 1: Significant Accounting Policies 35

Note 2: Fund Balance with Treasure 41

Note 3: General Property, Plant and Equipment, Net 42

Note 4: Liabilities not covered by Budgetary Resources 42

Note 5: Other Liabilities 43

Note 6: Leases 43

Note 7: Intra-Governmental Costs and Exchange Revenue 44

Note 8: Apportionment Categories of Obligations Incurred 44

Note 9: Undelivered Orders at the End of the Period 45

Note 10: Reconciliations of Net Cost of Operations to Budget 46

Note 11: Subsequent Events 47

Distribution 47
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Message from the Chairman:

On behalf of the members of the National Council on Disability (NCD), I am pleased to 

submit our FY 2009 Performance and Accountability Report (PAR). The mission of 

NCD is to promote full inclusion, independent living and economic self-sufficiency for

people with disabilities of all ages and backgrounds by providing advice, analysis and 

recommendations on disability policy to the president, Congress, and other federal 

agencies. Some of those recommendations are contained in our annual Progress 

Report that our authorizing legislation requires us to submit to the president and 

Congress each year. 

NCD is unique because of its independent status and congressional mandate to provide 

timely advice on disability matters to the Administration and Congress, and the manner 

in which we accomplish our mission also varies from many of our larger peers in the 

federal government. 

This small independent agency has consistently provided timely advice gleaned from

comprehensive research reports on a variety of subjects important to people with 

disabilities. The resulting recommendations have resulted in passage of important laws 

and enhancements to the programs and services provided by many federal agencies 

that serve the disability community.

The 15 Council members, all leaders in the disability community, are appointed by the 

President, by and with the consent of the U.S. Senate, and we spend a great deal of 

time and effort reviewing the situations in our society that impact over 50 million 

Americans who have some type of disabling condition. This document emphasizes the 

over-arching goal of the Council to remain responsible stewards of the federal funds 

entrusted to us for the accomplishment of what we consider to be an extremely 

important mission. It also reflects both financial and program performance results and 

demonstrates our enduring commitment to fulfill the responsibilities for which the NCD 

has been entrusted. 

During FY 2009, NCD completed and released several research reports that address 

concerns and needs of people with disabilities. Subjects covered included:

 The Rehabilitation Act: Outcomes for Transition-Age Youth 

 Invisible Wounds: Serving Service Members and Veterans with PTSD and 

TBI

 Federal Employment of People with Disabilities

 National Disability Policy: a Progress Report

 Effective Emergency Management: Making Improvements for Communities 

and People with Disabilities

 The Current State of Healthcare for People with Disabilities.

In addition to the above reports, which were disseminated to Congress, the President 

and constituents worldwide, the Council also has commissioned additional research 

projects to be released in FY 2010:
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 Progress Report on the Implementation of the Developmental Disabilities 

Assistance and Bill Of Rights Act

 Housing for People with Disabilities

 Study of the Workforce Infrastructure Needs to Serve People with Disabilities

 Study of the United States Marine Corps Exceptional Family Member 

Program

 Digital Media and Its Impact on People with Disabilities

 Study of the Accessibility of US-Based Overseas Development

 National Disability Policy: a Progress Report.

In FY 2008, the Council began a multi-year project that will result in a National Summit 

on Disability Policy to be held in Washington, DC in July 2010, on the 20th anniversary 

of the passage of the Americans with Disabilities Act. NCD is the prime sponsor of this 

event, with support from other agencies and organizations interested in disability policy 

and programs. In preparation for the summit, the Council has commissioned ten “white 

papers” on subjects of importance to people with disabilities, and has been involved in a 

comprehensive planning process that will identify 300 delegates to attend the summit 

and represent the interests and needs of the broad constituency of people with 

disabilities. This multiyear project has occupied significant portions of the Council’s time 

and budget, but will ultimately result in policy recommendations that will best serve 

people with disabilities in this country in the challenging years that lie ahead.

Other items of importance to the achievement of our mission were the public meetings 

held by the Council in locations throughout the country that enabled people with 

disabilities to attend, interact with Council members and staff, and voice their opinions 

about the issues of importance to them. Each of those meetings included Councilhosted receptions for the public who attended, as well as opportunities for people who 

could not attend to call in on toll-free numbers to interact with the Council and express 

their thoughts. Those opportunities, when coupled with public consultations attracting 

comments through the NCD website, allow the Council to stay abreast of issues 

impacting the community so that the annual progress report and other NCD reports are 

timely and cover issues of importance to people with disabilities nationwide.

These and many other accomplishments were achieved as a result of sound financial

management and the effective use of available resources. This report reflects the

Council’s judicious management of funds and identifies our achievements in relation to 

the agency’s strategic goals. Based on the Independent Auditor’s unqualified opinion on 

NCD’s consolidated financial statements, and the lack of any material internal control 

weaknesses, the agency can provide reasonable assurance that the objectives of the 

Federal Manager’s Financial Integrity Act (FMFIA) have been achieved. The Agency

can also provide reasonable assurance that its financial systems conform to 

governmentwide standards.
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Assurances

NCD relies on a support agency contract to provide financial management services 

by the General Services Administration. GSA provides NCD with frequent updates 

of payment activity and interagency payments, through preparation of monthly status 

reports and input to the MAX electronic accounting system. NCD’s management is 

responsible for (1) preparing the financial statements in conformity with U.S. generally 

accepted accounting principles, (2) establishing, maintaining, and assessing internal control 

practices to provide reasonable assurance that the broad control objectives of the Federal 

Managers' Financial Integrity Act are met, and (3) complying with applicable laws and 

regulations. To the best of our cumulative knowledge the presentations in this report, 

and all NCD reports related to financial transactions and status, are accurate as 

presented. No internal control issues have been identified at NCD, as verified by our 

auditors.

NCD is proud to serve as an advocate for people with all types of disabilities, and of all 

ages, throughout the country. We take very seriously the requirements contained in the 

laws that allow us to be entrusted with this responsibility. We pledge to continue our 

work to achieve our vision of a country, and society, that accommodate and support the 

needs of our most vulnerable residents, people with disabilities, so that they may 

contribute to and enjoy the enduring values of the American people.

Sincerely,

John R. Vaughn November 16, 2009

Chairperson
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Part I: Management's Discussion and Analysis

NCD at a Glance

NCD was initially established in 1978 as an advisory board within the Department of 

Education (Public Law 95-602). The Rehabilitation Act Amendments of 1984 (Public 

Law 98-221) transformed NCD into an independent agency and required NCD to 

provide expert advice to Congress and the Administration. Changes were made to 

NCD’s statutory mandate by the Rehabilitation Act Amendments of 1992 and 1998 and 

the Education of the Deaf Act Technical Amendments of 1993.

Mission 

The mission of NCD is to promote the full inclusion, independent living and economic 

self-sufficiency of people with disabilities of all ages and backgrounds by providing 

advice, analysis and recommendations on disability policy to the President, Congress

and other federal agencies. NCD is tasked with completing an annual progress report 

regarding the state of disability in the United States and delivering this along with 

related recommendations to the President and Congress each year. The agency also 

completes research reports on other issues of concern to the disability community, and 

uses those as background for developing policy recommendations for the President, 

Congress and other federal agencies.

Vision

Disability touches everyone. In 2004, 51.2 million Americans reported some level of 

disability. All Americans have some experience with disability through their own daily 

experience or contact with relatives, colleagues or friends. At some point, most 

Americans will experience some form of functional incapacity or limitation as a normal 

part of aging. 

Americans with disabilities represent a diverse group which includes individuals with 

physical, sensory and intellectual disabilities. Disabilities vary in terms of severity, 

longevity, cause and consequences. Some disabilities remain static throughout a 

person's life while others may have periods of remission or regression. 

Through its outreach efforts, in various community venues, and at its quarterly 

meetings, NCD has continually learned about the impact of disability on individuals, 

families, and their communities. There are consistent messages being shared about 

NCD findings through comprehensive research reports, policy briefs, media outreach, 

our award-winning Internet website (http://www.ncd.gov/index.html), and a monthly 

newsletter that receives worldwide attention. 

Despite their diverse profile, Americans with disabilities share many common concerns. 

They face personal, social and economic disadvantages and barriers that prevent 

access to the same opportunities as Americans without disabilities. People with 
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disabilities continue, for example, to have lower education levels and to be socially 

isolated and discriminated against in the workplace. They often face economic hardship 

in their daily lives and far too many live below the poverty line. Women and people with 

disabilities from diverse cultures, in particular, experience greater disadvantages, 

reporting higher incidences of unemployment and poverty. 

Americans with disabilities share many common aspirations for themselves and for their 

country. They want a nation which demonstrates leadership with respect to disability 

issues. Persons with disabilities desire a country which is sensitive to individual needs 

and ensures that Americans with disabilities have input into the policies, programs and 

decisions that affect them. They seek a country which makes it possible to achieve a 

decent standard of living and support an approach to disability issues that is common to 

all jurisdictions but sensitive to regional differences and needs. People with disabilities 

want a nation that uses legal and other measures to promote social and economic 

equity and equality of outcomes. Through our work, NCD continually seeks to make 

those aspirations a reality.

Strategic Goals

Following are the goals NCD established for Fiscal Year 2009:

Goal 1: Increase Levels of Public Participation and Outreach 

NCD is a deliberative body, providing advice, guidance and counsel to the President, 

Congress and federal agencies. Some of our most important activities occur when we

hold our quarterly meetings in various cities and receive public comment, hear local 

presenters on issues of concern in their community or region and meet stakeholders in 

the disability community so we can identify best practices and identify needs. Our 

legislation mandates a minimum of four public meetings annually and requires the 

payment of compensation and travel expense to members when they are engaged in 

Council business. To accomplish that mandate, During FY 2009 the Council met in

Kansas City, Missouri, Scottsdale, Arizona, Washington, DC and Minneapolis, 

Minnesota.

One of our goals for fiscal year 2009 was to increase our outreach to the public as 

demonstrated by increased public participation at NCD meetings and through the other 

vehicles we use to gather information. Our goal for 2009 was to realize a 30% increase 

in participation and comments received at meetings, beyond the rate of participation in 

FY 2007. 

Goal 2: Advise the President and Congress about Issues of Importance to the Disability 

Community through an Annual Progress Report.

NCD released its Progress Report to the President and Congress early in 2009, based 

on research completed during the preceding year. That report highlighted issues of 

importance to people with disabilities, and catalogued several positive changes in policy 
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and programs that benefited the disability community nationwide. The progress report 

delivery was followed by several meetings with executive managers of the federal 

agencies responsible for the programs discussed in the report. 

Goal 3: Review Programs, Practices and Policies of Other Federal Agencies and 

Provide Recommendations for Improvement.

While NCD is not a formal monitoring or control agency, we have a mandate to 

periodically review programs delivered or administered by other agencies in the federal 

government to assure that they meet the needs of the community and comply with their 

congressional mandates. During FY 2009, NCD published reports about services 

delivered by the Department of Education, Department of Health and Human Services, 

Department of Homeland Security, Veterans Affairs, Department of Labor, and 

Department of Transportation, plus others. During the preparation of these reports, 

agency staff and a variety of stakeholders were consulted or interviewed to provide the 

most up-to-date information to the consultants working on the reports. After the reports 

were published, NCD members and staff met with these agencies to determine what 

follow-up activities were planned to correct any identified deficiencies, or to improve the 

programs to the benefit of the people with disabilities they serve. NCD also meets 

regularly with federal agency partners in an ongoing effort to determine what follow-up 

actions have been taken as a result of prior NCD report recommendations, and to 

identify challenges in administering the programs that may require additional NCD 

research or policy recommendations. The annual progress report also evaluates 

services provided to people with disabilities by all federal agencies.

Goal 4: Respond to the Needs and Priorities Identified by the Public by Completing 

Comprehensive Research Reports on Issues of Concern.

NCD gathers information from the public through a number of means: public testimony 

at quarterly meetings either in person or on toll-free phone lines, electronic mail 

received on the NCD website, letters of concern from members of the public, formal 

public consultations in order to provide advice on reports underway at NCD, information 

gathered by contractors preparing NCD research reports, interaction between Council 

members and staff at conferences and meetings of stakeholder groups, and during 

sessions where NCD is releasing its research reports. The information gathered through 

all of these means and during NCD’s periodic meetings is used by the Council to 

develop policy recommendations that are shared with Congress and the president 

through the more formal avenue of the annual progress report or as needed during 

discussions about pending legislation. 

Goal 5: Support the Attendance and Participation of Council Members at Meetings and 

in Activities Where NCD Accomplishments and Outreach Occur.

The current Council believes strongly that face-to-face interactions with the broad 

community of disability stakeholders nationwide benefit this agency in two ways: we are 

able to gather relevant information to guide our reports and activities and we gain 
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another avenue of dissemination of quality work products or important news of interest 

to the disability community. To measure this, NCD monitors the amount of time 

members spend on travel to meetings and conferences, as well as the time they invest 

in preparing for and participating in NCD meetings and other activities

Goal 6: Continue to Be Responsible Stewards of Funding Committed to the Support of 

NCD and Its Activities.

In order to assure that controllable costs are maintained at a minimal level in order to 

meet the mission mandates, the executive director works with other staff and members 

of the Council to assure that all such expenditures are minimized and that we make the 

most effective use of our relatively small budget and staff. NCD continues to seek out 

opportunities for such reductions and to identify them when they occur. 

Goal 7: Continue to Work with the Federal Emergency Management Agency (FEMA) 

and Others Responsible for Enhancing the Safety and Security of the Nation's Disability 

Community As Mandated by the Post-Katrina Emergency Management Reform Act.

The congressional mandate and fiscal support received by NCD have made it possible 

to call a heightened level of attention to the needs of the disability community in 

emergencies of any type. NCD continues to seek out opportunities for participation with 

FEMA in meeting the requirements outlined by Congress, and maintains a record of that 

participation for periodic reports to Congress when requested.

NCD Organizational Overview

NCD is a small agency, and does not require a complex management structure. 

Operating as a true policy Board, the Council sets the agency budget and establishes 

the parameters for what it will support. The NCD executive director has full 

responsibility for carrying out the agency operations necessary to accomplish the goals 

and mission of the agency as established by the Council members. The small staff 

(currently 10 FTEs) report directly to the executive director, who acts with the oversight 

of the NCD executive committee under the guidance of the chair of the Council.
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NATIONAL COUNCIL ON DISABILITY

ORGANIZATIONAL CHART

Chairperson/Members

Executive Committee Finance Committee

Executive Director

Special Assistant to Executive 

Director.

Legislative Affairs Specialist

Director of External Affairs

Director of Research

Attorney Advisor

Attorney Advisor

Program Analyst

Staff Assistant

Administrative Specialist
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Program Performance Overview

The National Council on Disability (NCD) provides leadership in the disability policy 

arena by building on its traditions of innovation, objectivity, independence, and 

transcending disciplinary boundaries to meet the changing needs of society. 

Influencing the policy making process is important to the NCD in the work that it 

conducts as an independent federal advisory agency. Informing and influencing federal 

policy making and implementation is an important core activity of NCD.

Many NCD project and program activities reflect the expectation that the work it 

undertakes and supports will influence or have a positive impact on the policy process, 

and ultimately improve the quality of life and outcomes for Americans with disabilities. 

Within projects and programs, NCD members and staff promote various means of 

linking their activities to Federal Government policy and the work undertaken and 

supported is often reported to have enhanced decision makers’ awareness of policy 

options or to have been otherwise taken into account in policy processes. 

Over the past year, NCD reviewed and evaluated key disability laws, programs and 

policies to assess their effectiveness. NCD has also extended its outreach through 

public consultations and its quarterly board meetings. As a result of these various 

efforts, and others, NCD has issued formal advice -- e.g., through reports, policy 

papers, proceedings papers, and oral and written testimony -- that was disseminated to 

decision makers in the White House and members of the U.S. Congress, key leaders in 

the Executive Branch of the Federal Government, people with disabilities, and various 

stakeholders throughout the nation. As is often the case, NCD engages in research and 

policy analysis that is cumulative in nature, and its impact may not be measurable within 

any one fiscal year. 

An ambitious schedule of research projects is planned for FY 2010 in order to 

investigate issues or programs of importance to the disability community, as pointed out 

in their feedback to NCD throughout the past two years. NCD has six operating or 

program committees composed of Council members and supported by NCD staff. 

These committees provide guidance to contractors for all research reports, provide an 

independent resource for investigating new issues or concerns brought to the Council 

by the public and recommend subjects for additional study or those that may require 

policy recommendations to the president, Congress or other stakeholders. The 

program committees in place at NCD during FY 2009 include: Homeland 

Security/Emergency Preparedness, Health Care, Employment, Emerging Trends, 

International and Civil Rights.

The Council has taken positions on several issues that involve other federal agencies, 

and two of those issues will continue to be under discussion during the next year. NCD 

recommended to the President, in March 2007, that the United States sign the United 

Nations Convention on the Rights of Persons with Disabilities (CRPD). In order to help 

frame the discussion about the relative merits of signing or ratifying that convention, the 

NCD released a policy paper during May, 2008 that was a comparative analysis of 
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United States disability-related laws and the CRPD. To the best of our knowledge, that 

is the only such analysis that has been completed on this issue and made available to 

those who are interested from both the public and private sectors.

The other current issue concerns accessible currency that is usable by people who are 

blind. NCD has taken a public position that all paper currency in the United States 

should be accessible to people with all levels of vision loss, and that this should be 

accomplished without the necessity to utilize external electronic devices that would 

need to be carried by those who are blind. The NCD Chair and Executive Director have 

met numerous times with staff of the Department of Treasury, particularly the Bureau of 

Engraving and Printing, and will continue to cooperate fully in the crafting of a 

reasonable solution now that the Treasury has decided not to contest the recent lawsuit 

decision regarding the need to make that currency accessible.

Financial Performance Overview

As an independent agency, NCD takes a unique approach to the responsibilities of 

management and the need for the presidentially-appointed Council members to be 

knowledgeable about the routine activities of this small federal agency. Council 

members, led by the chair, routinely discuss the management of the agency during daily 

telephone calls, monthly executive committee and finance committee teleconference 

meetings, and through reports and discussions at the quarterly meetings of the full 

Council. Work products related to the administration of the agency, including all reports 

to control agencies, are shared with the executive committee for their input and 

approval. The chair of the Council meets with the executive director on a face-to-face 

basis at least 10 times per year, as well as for multiple days during quarterly meetings 

of the full Council.

Fiscal activities of the agency are the responsibility of the Executive Director, and fall 

under the purview of the NCD finance committee that is composed of four Council 

members who are knowledgeable about government financial standards, recordkeeping and transactions. NCD maintains a financial policies and procedures manual to 

govern all fiscal processes, and that manual is currently being updated. The finance 

committee reviews the monthly reports from the contracted GSA financial officer, and 

the chair of that committee is the approval authority on all funds requests for 

expenditures over $3000 and reviews all potential purchases in advance. Processing 

financial invoices involves a three-part review by NCD staff and the final approval of the 

executive director prior to forwarding it to the General Services Administration for two 

additional levels of review before payment.

The NCD executive director and executive committee members are responsible for 

establishing and maintaining a system of internal control. Pursuant to 31 U.S.C. 

3512(c), (d) (commonly known as the Federal Managers’ Financial Integrity Act), our 

auditors have assessed the effectiveness of the agency's internal control procedures 

and have determined that NCD has achieved the following objectives:
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a. Reliability of financial reporting: Transactions are properly recorded, 

processed and summarized to permit the preparation of the financial 

statements in accordance with U.S. 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; 

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

the financial statements, and any other laws and regulations identified in 

OMB audit guidance.

Because NCD is dependent upon larger agencies to provide many of the support 

functions that are provided in-house by large agencies, it requires extreme vigilance to 

control costs and ensure that all needs and reporting requirements are being met. The 

General Services Administration provides fiscal management, accounting, payroll, 

human resources, legal and lease administration for NCD. The Department of 

Education provides a contracted ethics and conflict of interest attorney on an as-needed 

basis to educate members and staff about their responsibilities as federal employees. 

The Department of Homeland Security provides building security, and the Government 

Printing Office provides printing services and supports the agency Web site. These 

agencies and the services they provide consume about 10% of the agency budget, 

although it has proved more cost-effective than trying to employ internal staff to perform 

all of these functions for NCD.

The following items will provide a snapshot of the financial status of NCD at the 

conclusion of FY 2009, in addition to how our funding will be allocated for FY 2010 and 

what we hope to have available to support continuing operations during FY 2011.

Management Controls, Systems and Compliance

Federal Managers’ Financial Integrity Act (FMFIA)

The FMFIA requires federal agencies to provide an annual statement of assurance

regarding management controls and financial systems. The statement of assurance is

provided in the Chairman’s message at the beginning of the Performance and

Accountability Report. This statement was based on the review and consideration of

internal analyses, reconciliations and the independent auditor’s opinion on the NCD’s

financial statements.

Prompt Payment Act

The Prompt Payment Act requires federal agencies to make timely payments to 

vendors, including any interest penalties for late invoice payments. In FY 2008, the NCD

did not pay any interest penalties on invoices processed.
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Federal Financial Management Improvement Act (FFMIA)

The National Council on Disability is a federal agency subject to the

Accountability of Tax Dollars Act, 2002. Agencies subject to the ATDA are not subject

to the requirements of FFMIA.

Improper Payments Information Act

The Improper Payments Information Act (Public Law (P.L. No. 107-300) defined

requirements to reduce improper/erroneous payments made by the federal government.

OMB also has established specific reporting requirements for agencies with programs

that possess a significant risk of erroneous payments and for reporting on the results of

recovery auditing activities. A significant erroneous payment as defined by OMB

guidance is an annual payment in a program that exceeds both 2.5 percent of the 

program payments and $10 million. NCD has not identified any programs where 

significant erroneous payments have occurred within the agency. The agency will 

continue to review programs on an annual basis to determine if any significant 

erroneous payments exist.

Part II: Performance Section

Performance by Strategic Goals

The Council’s Fiscal Year 2009 Performance Report links the agency’s funding to

its goals and accomplishments and demonstrates NCD’s continued commitment to 

shaping and preserving a complex framework of poliies and programs that serve and 

support people with disabilities nationwide. This year the agency expanded partnerships

with federal and local entities on major initiatives that support its long-range plans,

and completed several research projects of interest to the diverse constituency we 

serve. Following are the goals NCD established for Fiscal Year 2009, and a summary of 

the results we attained:

Goal 1: Increase Levels of Public Participation and Outreach 

NCD is a deliberative body, providing advice, guidance and counsel to the President, 

Congress and federal agencies. Some of our most important activities occur when we 

hold our quarterly meetings in various cities and receive public comment, hear local 

presenters on issues of concern in their community or region and meet stakeholders in 

the disability community so we can identify best practices and identify needs. Our 

legislation mandates a minimum of four public meetings annually and requires the 

payment of compensation and travel expense to members when they are engaged in 

Council business. To accomplish that mandate, During FY 2009 the Council met in 

Kansas City, KS, Scottsdale, AZ, Washington, DC, and Minneapolis, MN. 

One of our goals for fiscal year 2009 was to increase outreach to the public as 

demonstrated by increased public participation at NCD meetings and through the other 

vehicles we use to gather information. While we set a goal of a 30 percent increase in 

participation and comments received at meetings over FY 2007, that participation 
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increased by over 70 percent during the year. The following table illustrates that 

increase in participation and public comments received at NCD quarterly meetings: 

Fiscal Year Participants Public Comments

FY 2007 Totals 223 47

Fiscal Year 2009

Kansas City

Oct 2008

45 10

Scottsdale

Jan 2009

141 27

Washington DC 70 32

Apr 2009

Minneapolis 79 24

July 2009

FY 2009 

Totals

335 93

NCD also maximizes the use of electronic communications in order to advise the public 

about Council meetings and other activities, and to solicit information from the disability 

community about issues of concern in their daily lives. For a small agency, with only 12 

FTEs, NCD sends and receives a large volume of electronic mail messages. During 

Fiscal Year 2009 NCD made significant strides to reach more of the public in every part 

of the United States and obtain much-needed feedback. 

NCD receives approximately 570,000 emails per year. The NCD Web site 

(www.ncd.gov) receives nearly eight million successful “hits” per year. We think this is 

significant for such a small agency. Even more significant is the number of reports and 

papers that are downloaded each year. During FY 2009, 800,744 reports and papers 

were downloaded from our Web site, which is an increase of 81,273 downloads over 

last year. This produces a savings to the taxpayer of literally thousands of dollars in 

printing, handling and mailing costs. In addition, the NCD listserv now has more than 

2,500 subscribers. Many of those subscribers share NCD messages, news advisories 

and news releases with their own listservs, exponentially increasing our public outreach. 

NCD works closely with media sources around the world. This symbiotic relationship 

helps spread much-needed information about people with disabilities and issues related 

to disability policy to every corner of the globe. News stories on NCD issues and the 

reports it releases to the president and Congress are frequently published in the United 

States. During the fiscal year, there were 46 media placements of news items related to 
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NCD. Several editorials and opinion pieces were also disseminated about the release of 

NCD publications. 

In addition, NCD utilizes US Newswire and PR Newswire to distribute its news releases 

and news advisories to major media markets in Washington, DC, and throughout the 

country. As a result of this relationship, NCD news items are also distributed to every 

member of Congress and 3,600 of the world's most widely accessed Web sites, 

databases and online services, including AOL, Google and Yahoo. Readership is in the 

millions. 

NCD’s monthly newsletter, NCD Bulletin, provides readers with an update on NCD 

current and future activities and other disability-related items of interest. The newsletter 

is published 12 times a year and reaches millions of readers when it’s published on the 

NCD listserv, US Newswire and PR Newswire, utilizing the same distribution as NCD 

news releases and news advisories. 

NCD's mission requires worldwide involvement regarding disability issues so this past 

year NCD provided technical assistance and outreach to several different foreign 

delegations that visited our offices. NCD staff and members met with representatives of 

Ireland, Russia, Vietnam, South Korea, India, Bhutan, Afghanistan, Jordan, Morocco,

Bahrain, Lebanon, Oman, and Syria.

During the year, NCD held one public consultation that was advertised on our Web site 

and designed to gather specific information to help guide the drafting of our annual 

progress report, which is in development to be released to the president and Congress 

early in 2010. The public consultation for the progress report (about any issue of 

concern) resulted in over 150 comments which are under review by the NCD committee 

members, staff and the consultants responsible for drafting the report.

Goal 2: Advise the President and Congress about Issues of Importance to the Disability 

Community through an Annual Progress Report.

NCD released its progress report (Disability Policy: A Progress Report) to the president 

and Congress early in 2009, based on research completed during the preceding year. 

That report highlighted issues of importance to people with disabilities, and catalogued 

several positive changes in policy and programs that benefited the disability community 

nationwide. The progress report delivery was followed by meetings with executive 

managers of the federal agencies responsible for the programs discussed in the report. 

The progress report for the current year is being completed at this time, and will be 

published in February 2010.

Goal 3: Review Programs, Practices and Policies of Other Federal Agencies and 

Provide Recommendations for Improvement.

While NCD is not a formal monitoring or control agency, we have a mandate to 

periodically review programs delivered or administered by other agencies in the federal 
17

government to assure that they meet the needs of the community and comply with their 

congressional mandates. During 2009, NCD published reports about services delivered 

by the Department of Education, Department of Health and Human Services, 

Department of Homeland Security, Veterans Affairs, Department of Labor, and 

Department of Transportation, plus others. During the preparation of these reports, 

agency staff and a variety of stakeholders were consulted or interviewed to provide the 

most up-to-date information to the consultants working on the reports. After the reports 

were published, NCD members and staff met with many of these agencies to determine

what follow-up activities were planned to correct any identified deficiencies, or to 

improve the programs to the benefit of the people with disabilities they serve.

NCD continues to meet with federal agency partners in an ongoing effort to determine 

what follow-up actions were taken as a result of prior NCD report recommendations, 

and to identify challenges in administering the programs that may require additional 

NCD research or policy recommendations.

Goal 4: Respond to the Needs and Priorities Identified by the Public by Completing 

Comprehensive Research Reports on Issues of Concern.

NCD gathers information from the public through a number of means: public testimony 

at quarterly meetings either in person or on toll-free phone lines, electronic mail 

received on the NCD website, letters of concern from members of the public, formal 

public consultations in order to provide advice on reports underway at NCD, information 

gathered by contractors preparing NCD research reports, interaction between Council 

members and staff at conferences and meetings of stakeholder groups, and during 

sessions where NCD is releasing its research reports.

The information gathered during the preparation of these reports and during NCD’s 

periodic meetings is used by the Council to develop policy recommendations that are 

shared with Congress and the president through the more formal avenue of the annual 

progress report or as needed during discussions about pending legislation. 

During FY 2009, NCD completed and released several research reports that address 

concerns and needs of people with disabilities. Subjects covered included:

 The Rehabilitation Act: Outcomes for Transition-Age Youth 

 Invisible Wounds: Serving Service Members and Veterans with PTSD and 

TBI

 Federal Employment of People with Disabilities

 National Disability Policy: a Progress Report

 Effective Emergency Management: Making Improvements for Communities 

and People with Disabilities

 The Current State of Healthcare for People with Disabilities.

In addition to the above reports, which were disseminated to Congress, the President 

and constituents worldwide, the Council also has commissioned additional research 

projects to be released in FY 2010:
18

 Progress Report on the Implementation of the Developmental Disabilities 

Assistance and Bill Of Rights Act

 Housing for People with Disabilities

 Workforce Infrastructure in Support of People with Disabilities: Matching 

Human Resources to Service Needs

 Study of the United States Marine Corps Exceptional Family Member 

Program

 Digital Media and Its Impact on People with Disabilities

 Study of the Accessibility of US-Based Overseas Development

 National Disability Policy: a Progress Report.

NCD also contracted with a consultant to complete 10 Policy Papers on subjects of 

concern to people with disabilities to be used as discussants and tracks for a 2011 

National Summit on Disability Policy in Washington, DC. That summit is a top priority 

for the Council, and will include up to 300 representatives from the disability community 

nationwide who will meet in the nation's capital on the 20th anniversary of the 

Americans with Disabilities Act to review significant achievements and to develop policy 

recommendations to help guide government programs for the next 20 years.

The types of research reports and projects listed above are not valuable unless they are 

used by the applicable administering agencies, or even Congress in some cases, to 

bring about positive change or modify existing programs to benefit those they are 

supposed to serve. NCD has many examples of quality research by this agency being 

used to develop and implement policies of benefit to people with disabilities, including 

the initial Americans with Disabilities Act, through and including the recently passed 

ADA Amendments Act.

Goal 5: Support the Attendance and Participation of Council Members at Meetings and 

in Activities Where NCD Accomplishments and Outreach Occur.

The current Council believes strongly that face-to-face interactions with the broad 

community of disability stakeholders nationwide benefit this agency in two ways: we are 

able to gather relevant information to guide our reports and activities and we gain 

another avenue of dissemination of quality work products or important news of interest 

to the disability community. To accomplish this, members must be paid for their travel 

to meetings and conferences, as well as for the time they invest in preparing for and 

participating in NCD meetings and other activities. During the last two fiscal years, the 

NCD budget has funded an increased level of travel and salaries for the appointed 

members of the Council. This recognizes the increased involvement of members in 

agency operations and a pledge by the Council leadership to meet at geographically 

dispersed locations throughout the country in order to gather information from our 

diverse stakeholders outside the Beltway. Between public meetings, the various 

committees of the Council carry on the business of the agency through teleconference 

meetings and email. 
19

Goal 6: Continue to Be Responsible Stewards of Funding Committed to the Support of 

NCD and Its Activities.

We understand that costs need to be maintained at a minimal level in order to meet the 

mission mandates, and the executive director works with other staff and members of the 

Council to assure that all controllable costs are minimized and that we make the most 

effective use of our relatively small budget and staff. To help accomplish that, during 

the past year the following cost reductions were realized:

1. Reduced payments to the Government Printing Office for Web site support by 

over $25,000 through the use of enhanced editing that includes creation of 

accessible formatting for reports.

2. NCD is contracting with GSA for all legal and financial management services at a 

cost savings compared to providing these services with staff in past years.

NCD continues to realize additional savings from new operational efficiencies, and 

members and staff continually seek out the viability of additional changes to accomplish 

our important mission at a reduced cost. Despite being forced to operate on what is 

basically a flat budget for the past five years, NCD has finished each year within budget 

and with an impressive list of accomplishments. The current economy has resulted in 

increased costs for air travel to meetings, hotel sleeping rooms and meeting facilities, 

member and staff salaries and benefits, office rent and may begin to affect the amounts 

that NCD will force to pay in order to find qualified contractors willing to produce NCD 

research reports.

Because NCD is such a small agency, and since our mission requires the ability to 

gather timely and relevant information regarding disability needs and concerns to 

produce our research reports, we have few opportunities to realize a significant 

reduction in the cost of supporting this agency’s mission. The executive director has 

been charged with identifying potential savings in a variety of support services that NCD 

receives from other agencies, and that has become an ongoing effort to avoid the 

necessity of scaling back our disability policy research efforts in future years.

Goal 7: Continue to Work with the Federal Emergency Management Agency (FEMA) 

and Others Responsible for Enhancing the Safety and Security of the Nation's Disability 

Community As Mandated by the Post-Katrina Emergency Management Reform Act.

The congressional mandate and fiscal support received by NCD have made it possible 

to call a heightened level of attention to the needs of the disability community in 

emergencies of any type. Using the funding provided by Congress, NCD has held 

hearings in New Orleans, Louisiana following hurricanes Katrina and Rita, and recently 

released a report reviewing current response to major emergencies by federal, state 

and local entities and the impact it has had on people with disabilities. That report has 

resulted in several additional opportunities for Council members to speak about the 

findings and recommendations in the report to emergency management and disability 

related conferences nationwide.
20

During the past year, the NCD Chair, staff and homeland security committee members 

have met several times with staff of the Federal Emergency Management Agency and 

their DHS counterparts. We have supported the participation of NCD members to make 

presentations at or attend emergency management conferences, and provided input to 

major documents published by FEMA. Additionally, each quarterly NCD meeting 

includes presentations by local or regional emergency response personnel, as well as 

people from the disability community within that area, to discuss their knowledge and 

preparations for the types of emergency situations most common to that region. FEMA 

staff also attend and make presentations at our meetings periodically, including FEMA 

regional staff when NCD meets in other parts of the country.

NCD has also worked with FEMA staff, other federal agency personnel and 

representatives of National Voluntary Organizations Active in Disasters around 

emergency preparedness initiatives in various efforts. This includes the development of 

a functional needs support unit service model, National Disaster Housing Strategy 

annexes, and various short-term working initiatives of the Interagency Coordinating 

Committee on Emergency Preparedness for Individuals with Disabilities. 

Part III. Financial Section

Message From the Executive Director:

In Fiscal Year 2009 the National Council on Disability continued to make strides towards 

financial management excellence. The Council’s progress is measured by the results 

and outcomes captured in this annual Performance and Accountability Report. I am 

pleased to report that, for the third consecutive year, the audit did not identify any 

material weaknesses in the agency’s financial transactions or record-keeping.

Any internal control matters involving operations determined by the audit to carry more

risk, but not considered to be material weaknesses or significant deficiencies, will be

continually monitored. We will also continue to review, assess the validity of and, when 

appropriate, de-obligate outstanding obligations.

The Council has made progress in fiscal year 2009 toward integration of performance 

management into our budget process. Such integration provides the Council’s

leadership with the robust financial analysis required to support timely and effective 

strategic planning and decision-making. Besides our independent auditiors, NCD has 

also contracted with an outside financial consulting firm to independently review the 

agency’s financial policies and procedures manual and recommend additional steps 

which might be taken to improve efficiency and fiscal responsibility.

During FY 2009, the NCD continued to engage an outside agency to administer various

aspects of financial management and accounting functions. Through lessons learned 

from this partnership, NCD staff have developed new policies and procedures to 

enhance internal controls in the financial management operations. Financial 

management and internal control matters have been enhanced further through the 

active participation of the Council’s finance committee, whose members met quarterly to 
21

review operations. We take financial accountability, a commitment to sound agency 

performance, and providing taxpayers with the service they deserve very seriously. 

NCD is committed to ensuring it has the organization, systems, and resources to 

sustain a clean opinion in future years and to continue to improve its financial 

management performance.

Michael C. Collins

Executive Director
22

APPROPRIATIONS HISTORY

Salaries and Expense Account

(Amounts in thousands of dollars)

Fiscal Year Budget Authority Fiscal Year Budget Authority

1980 25 2005 3,344******

1981 205 2006 3,144*’

1982 197 2007 3,125*’’

1983 198 2008 3,113

1984 500 2009 3,206 

1985 750 2010 3,271 (req)

1986 732 2011 3,336 (req)

1987 860

1988 871*

1989 1,160

1990 1,540

1991 1,439

1992 1,569

1993 1,541

1994 1,690

1995 1,793

1996 1,793

1997 1,791 

1998 1,793

1999 2,344

2000 2,391**

2001 2,615

2002 2,829***

2003 2,839 

2004 3,021** ***

FY 1988 amount reflects reductions pursuant to Public Law 100-436. *

FY 2000 amount reflects reductions pursuant to Public Law 106-113. **

FY 2002 amount reflects reductions pursuant to Public Law 107-206. ***

FY 2003 amount reflects reductions pursuant to Public Law 108-7.  

FY 2004 amount reflects reductions pursuant to Public Law 108-199** ***

FY 2005 amount reflects reductions pursuant to Public Law 108-447******

FY 2006 amount reflects reductions pursuant to Public Law 109-148*’

FY 2007 amount reflects reductions pursuant to Public Law 110-5*’’
23

Budget detail (FY 2008-2011)

 FY 2008 Final FY 2009 Final 

FY 2010 

Proposed 

FY 2011 Proposed Budget 

(2% Increase) 

Appropriation 

 $ 

3,113,000 

 $ 

3,206,000 

 $ 

3,271,090 $ 3,336,512 

Supplemental 

Appropriation $ - 

$ 

- $ - $ - 

Enacted Reductions 

 $ 

(54,384) 

$ 

- $ - $ - 

Net Appropriation 

 $ 

3,058,616 

 $ 

3,206,000 

 $ 

3,271,090 $ 3,336,512 

 

Obligations/Expenses 

Salaries, Full Time 

 $ 

1,031,000 

 $ 

1,109,004 

 

1,280,000 $ 1,218,972 

Salaries, Board 

 $ 

209,510 $ 206,178 

 $ 

220,000 $ 220,000 

Incentive Awards 

 $ 

7,000 $ 1,500 

 $ 

15,000 $ 25,000 

Leave Payout 

 $ 

14,402 $ - $ - 

$ 

- 

Subtotal Salaries 

 $ 

1,261,912 

 $ 

1,316,683 

 $ 

1,515,000 $ 1,463,972 

Benefits 

 $ 

266,340 $ 266,307 

 $ 

318,518 $ 316,933 

Travel 

Member Travel

 $ 

50,246 $ 39,062 

 $ 

99,800 $ 99,800 

Member Assistant

 $ 

14,389 $ 3,220 

 $ 

15,000 $ 15,000 

Staff Travel

 $ 

19,586 $ 12,829 

 $ 

20,200 $ 20,000 

Participant

 $ 

1,938 $ 603 $ 5,000 $ 5,000 

Citibank (Airline

Tickets)

 $ 

44,760 $ 66,680 

 $ 

30,000 $ 30,000 

Miscellaneous

 $ 

11,426 $ 500 $ - $ - 

Hotel

 $ 

126,174 $ 97,617 

 $ 

110,000 $ 110,000 

DOT Reimbursement $ - $ - $ - $ - 

Subtotal Travel 

 $ 

268,521 $ 220,511 

 $ 

280,000 $ 279,800 

Training $ - $ - $ 10,000 

Rent 

 $ 

246,833 $ 238,768 

 $ 

241,080 $ 241,080 

Communications 

 $ 

54,854 $ 31,517 

 $ 

80,000 $ 80,000 

Utilities $ - $ - $ - $ - 

Printing/Reproduction 

 $ 

5,114 $ 18,605 

 $ 

30,000 $ 30,000 

Contracts 

Program Contracts

 $ 

485,800 $ 700,545 

 $ 

430,746 $ 513,981 

Administrative Contracts

 $ 

443,732 $ 273,304 

 $ 

355,746 $ 355,746 

Supplies 

 $ 

17,651 $ 10,008 

 $ 

20,000 $ 20,000 
24

Equipment 

 $ 

3,835.90 $ - $ - $ 25,000 

Total 

Obligation/Expenses 

 $ 

3,054,592 

 $ 

3,076,247 

 $ 

3,271,090 $ 3,336,512 

 

Unobligated Balances 

 $ 

4,024 $ 129,753 $ - $ 0 
25

The principal financial statements of NCD have been prepared to report the financial 

position and results of operations of the entity pursuant to the requirements of 31 U.S.C.

3515 (b). While the statements have been prepared from the books and records of 

NCD in accordance with generally acceptable accounting practices for federal entities 

and in the format prescribed by OMB, the statements are in addition to the financial 

reports used to monitor and control our budgetary resources which are prepared from 

the same books and records. The statements should thus be read with the realization 

that they are for a component of the U.S. Government, a sovereign entity.

Like our larger peers, NCD utilizes external auditors to review all agency financial 

records and transactions during the past year, and their work has become a part of this 

report. Our annual financial audit includes copies of all principal statements, which 

include a Balance Sheet, Statement of Net Cost, Statement of Changes in Net 

Position, and Statement of Budgetary Resources. The balance sheet presents, as of 

September 30, 2009, amounts of future economic benefits owned or managed by NCD 

(assets), amounts owed by NCD (liabilities), and amounts which comprise the 

difference (net position). The Statement of Net Cost reports the full cost of the 

program, both direct and indirect costs of the output and the costs of identifiable 

supporting services provided by other segments within NCD and other reporting 

entities. The Statement of Budgetary Resources reports NCD’s budgetary activity.

NCD is an appropriated fund. It receives appropriations from the General Fund. 

Other financing sources for NCD consist of imputed financing sources which are costs 

financed by other Federal entities on behalf of NCD, as required by Statement of Federal 

Financial Accounting Standard (SFFAS) No. 5, Accounting for Liabilities of the 

Federal Government.

All of NCD's fund balance with Treasury comes from appropriations. No trust, revolving 

or other fund types are used to fund NCD's activities. NCD operates as an annual fund, 

receiving a new single-year appropriation each year. The fund balance with Treasury is a 

consolidated balance of one no-year fund and five annual funds (FY 2005, FY 2006, FY 

2007, FY 2008 and FY 2009). The annual fund for FY 2004 was cancelled and the 

remaining fund balance of $1,655 was returned to the U.S.Treasury during fiscal year 

2009.

With the exception of the detailed financial spreadsheets that follow which were 

provided by NCD’s auditors, no outside parties have assisted in the preparation of this 

NCD Performance and Accountability Report.
26

Independent Auditors’ Report

Council Members and Executive Director 

National Council on Disability

Washington, DC

In accordance with the Accountability of Tax Dollars Act of 2002, we are responsible for 

conducting audits of the National Council on Disability. In our audits of the National 

Council on Disability for the fiscal years ended September 30, 2009 and 2008, we found

 the financial statements are presented fairly, in all material respects, in conformity 

with U.S. generally accepted accounting principles,

 no material weaknesses in internal control over financial reporting (including 

safeguarding assets) and compliance, although internal controls could be 

improved,

 no reportable noncompliance with laws and regulations we tested.

The following sections discuss in more detail (1) these conclusions, (2) our 

conclusions on Management Discussion and Analysis and other supplementary 

information, (3) our audit objectives, scope and methodology, and (4) agency 

comments and our evaluation.

Opinion on Financial Statements

The financial statements including the accompanying notes present fairly, in all 

material respects, in conformity with U.S. generally accepted accounting principles, the

National Council on Disability’s assets, liabilities, and net position as of September 30, 

2009 and 2008; and net costs; changes in net position; and budgetary resources; for the 

years then ended.

Consideration of Internal Control

In planning and performing our audit, we considered the National Council on 

Disability’s internal controls over financial reporting and compliance. We did this to 

determine our procedures for auditing the financial statements and to comply with OMB 

audit guidance, not to express an opinion on internal control. Accordingly, we do not 

express an opinion on internal control over financial reporting and compliance or on 

management’s assertion on internal control included in Management’s Discussion and 

Analysis. However, our work identified the need to improve certain internal controls as 

described below.
27

09-01: Ineffective Process for Period-End Review of Accounts 

Payable and Undelivered Orders

Condition: The National Council on Disability lacks formal policies and 

procedures to facilitate the timely identification and estimation of 

accruals related to accounts payable, and the validation of 

outstanding obligations at period-end.

Criteria: Statement of Federal Financial Accounting Standards (SFFAS) 

Number 1, Accounting for Selected Assets and Liabilities, defines 

accounts payable as “amounts owed by a federal entity for goods and 

services received from, progress in contract performance made by, 

and rents due to other entities.” SFFAS No. 1 further indicates, “[i]f 

invoices for those goods [or services] are not available when 

financial statements are prepared, the amounts owed should be 

estimated.

The Federal Manager’s Financial Integrity Act of 1982 (FMFIA) 

required the Government Accountability Office (GAO) to establish 

standards for internal control. GAO/AIMD-00-21.3. 1 , Standards for 

Internal Control in the Federal Government, provides, “[t]ransactions 

should be promptly recorded to maintain their relevance and value 

to management...This applies to the entire process or life cycle of 

a transaction...In addition, control activities help to ensure that all 

transactions are completely and accurately recorded...Internal 

control and all transactions and other significant events need to be 

clearly documented, and the documentation should be readily 

available for examination. The documentation should appear in 

management directives, administrative policies, or operating manuals 

and may be in paper or electronic form.”

Cause: The National Council on Disability has not developed formal policies 

and procedures to facilitate the timely identification and estimation of 

accruals related to accounts payable, and the validation of 

outstanding obligations at period-end.

Effect: The National Council on Disability failed to identify goods and 

services received prior to year-end, which should have been 

accrued as of September 30, 2009. This oversight led to a material 

understatement of accounts payable and expenses that was 

identified in the course of conducting the audit.

This deficiency in internal control, although not considered a material weakness, 

represents a significant deficiency in the design or operation of internal control, which 

adversely affects the entity’s ability to meet the internal control objectives listed in the 
28

objectives, scope, and methodology, or meet OMB criteria for reporting matters under 

FMFIA.

A material weakness is a control deficiency that results in more than a remote likelihood 

that the design or operation of one or more internal controls will not allow management or 

employees, in the normal course of performing their duties, to promptly detect or prevent 

errors, fraud, or noncompliance in amounts that would be material to the financial 

statements. Our internal control work would not necessarily disclose all deficiencies in 

internal control that might be material weaknesses or other significant deficiencies.

Compliance with Laws and Regulations

Our tests of the National Council on Disability’s compliance with selected provisions 

of laws and regulations for fiscal year 2009 disclosed no instances of noncompliance that 

would be reportable under U.S. generally accepted government auditing standards or OMB 

audit guidance. However, the objective of our audit was not to provide an opinion on 

overall compliance with laws and regulations. Accordingly, we do not express such an 

opinion.

Consistency of Other Information

The National Council on Disability’s Management’s Discussion and Analysis, required 

supplementary information (including stewardship information), and other accompanying 

information contain a wide range of information, some of which is not directly related to 

the financial statements. We do not express an opinion on this information. However, we 

compared this information for consistency with the financial statements and discussed the 

methods of measurement and presentation with National Council on Disability 

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

financial statements, U.S. generally accepted accounting principles, or OMB guidance.

Objectives. Scope. and Methodology

The National Council on Disability’s management is responsible for (1) preparing the 

financial statements in conformity with U.S. generally accepted accounting principles, (2) 

establishing, maintaining, and assessing internal control to provide reasonable assurance 

that the broad control objectives of the Federal Managers’ Financial Integrity Act are met, 

and (3) complying with applicable laws and regulations.

We are responsible for obtaining reasonable assurance about whether the financial 

statements are presented fairly, in all material respects, in conformity with U.S. generally 

accepted accounting principles. We are also responsible for (1) obtaining a sufficient 

understanding of internal control over financial reporting and compliance to plan the audit, 

(2) testing compliance with selected provisions of laws and regulations that have a 

direct and material effect on the financial statements and laws for which OMB audit 

guidance requires testing, and (3) performing limited procedures with respect to certain 

other information appearing in the Annual Financial Statement.
29

In order to fulfill these responsibilities, we

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

in the financial statements;

 assessed the accounting principles used and significant estimates made by 

management;

 evaluated the overall presentation of the financial statements;

 obtained an understanding of the entity and its operations, including its internal 

control related to financial reporting (including safeguarding assets), and 

compliance with laws and regulations (including execution of transactions in 

accordance with budget authority);

 tested relevant internal controls over financial reporting, and compliance, and 

evaluated the design and operating effectiveness of internal control;

 considered the design of the process for evaluating and reporting on internal control 

and financial management systems under the Federal Managers’ Financial 

Integrity Act; and

 tested compliance with selected provisions of the following laws and 

regulations: the Anti-Deficiency Act; Provisions Governing Claims of the U.S. 

Government (31 U.S.C. 3711 -3720E), including the Debt Collection 

Improvement Act of 1996 (DCIA), the Prompt Payment Act; the Pay and 

Allowance System for Civilian Employees as provided primarily in Chapters 51-59 

of title 5, United States Code; the Civil Service Retirement Act, 5 U.S.C. Chapter 

83; Federal Employee Health Benefits Act, 5 U.S.C. Chapter 89; Federal 

Employees Compensation Act (FECA), 5 U.S.C. Chapter 81; Federal 

Employee’s Retirement System (FERS) Act of 1986, 5 U.S.C. Chapter 84; and 

Rehabilitation Act Amendments of 1984, Public Law 98-22 1.

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

defined by the Federal Managers’ Financial Integrity Act, such as those controls relevant 

to preparing statistical reports and ensuring efficient operations. We limited our internal 

control testing to controls over financial reporting and compliance. Because of inherent 

limitations in internal control, misstatements due to error or fraud, losses, or 

noncompliance may nevertheless occur and not be detected. We also caution that 

projecting our evaluation to future periods is subject to the risk that controls may become 

inadequate because of changes in conditions or that the degree of compliance with 

controls may deteriorate. In addition, we caution that our internal control testing may not 

be sufficient for other purposes.

We did not test compliance with all laws and regulations applicable to the National Council 

on Disability. We limited our tests of compliance to selected provisions of laws and 

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

required by OMB audit guidance that we deemed applicable to the National Council on 

Disability’s financial statements for the fiscal year ended September 30, 2009. We 

caution that noncompliance may occur and not be detected by these tests and that such 

testing may not be sufficient for other purposes.
30

We performed our audit in accordance with U.S. generally accepted government 

auditing standards and OMB audit guidance.

Martin & Wall, Independent Auditors

December 14, 2009
31

NATIONAL COUNCIL ON DISABILITY

BALANCE SHEETS

AS OF SEPTEMBER 30, 2009 AND 2008

Assets:

Intragovernmental:

2009 2008

Fund Balance With Treasury (Note 2) $ 1,569,814 $ 1,340,070

Total Intragovernmental 1,569,814 1,340,070

Total Assets $ 1,569,814 $ 1,340,070

Liabilities: (Note 4)

Intragovernmental:

Accounts Payable $ 27,385 $

Other (Note 5) 12,512

Total Intragovernmental 39,897

Accounts Payable 87,810 39,518

Other (Note 5) 154,152 145,056

Total Liabilities 281,859 184,574

Net Position:

Unexpended Appropriations - Other Funds 1,467,944 1,236,871

Cumulative Results of Operations - Other Funds (179,989) (81,375)

Total Net Position 1,287,955 1,155,495

Total Liabilities and Net Position $ 1,569,814 $ 1,340,070

*Amounts may be off by a dollar due to rounding.

The accompanying notes are an integral part of these financial statements.
32

NATIONAL COUNCIL ON DISABLITY

STATEMENTS OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008

2009 

Program Costs:

Program A: (Note 7)

Gross Costs $3,113,436 $3,052,831 

Net Program Costs 3,113,436 3,052,831 

Net Cost of Operations $ 3,113,436 $ 3,052,831

*Amounts may be off by a dollar due to rounding. The accompanying notes are an 

integral part of these financial statements.
33

NATIONAL COUNCIL ON DISABLITY

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEAR ENDED SEPTEMBER 30, 2009

Cumulative Results of Operations:

Earmarked

Funds All Other Funds Eliminations

Consolidated

Total

Beginning Balances $ $ (81,375) $ $ (81,375)

Budgetary Financing Sources:

Appropriations Used 2,960,048 2,960,048

Other Financing Resources (NonExchange):

Imputed Financing 54,774 54,774

Total Financing Sources 3,014,822 3,014,822

Net Cost of Operations (+/-) 3,113,436 3,113,436

Net Change (98,614) (98,614)

Cumulative Results of Operations $ $

(179,989

)

$ $

(179,989

) Unexpended Appropriations:

Beginning Balances $ $ 1,236,871 $ $ 1,236,871

Budgetary Financing Sources:

Appropriations Received 3,206,000 3,206,000

Other Adjustments (14,879) (14,879)

Appropriations Used (2,960,048) (2,960,048)

Total Budgetary Financing Sources 231,073 231,073

Total Unexpended Appropriations 1,467,944 1,467,944

Net Position $ $ 1,287,955 $ $ 1,287,955

*Amounts may be off by a dollar due to 

rounding.

The accompanying notes are an integral part of these financial statements.
34

NATIONAL COUNCIL ON DISABILITY

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEAR ENDED SEPTEMBER 30, 2008

Cumulative Results of Operations:

Earmarked

Funds

All Other

Funds Eliminations

Consolidated

Total

Beginning Balances $ $ (77,901) $ $ (77,901)

Budgetary Financing Sources:

Appropriations Used 2,995,908 2,995,908

Other Financing Resources (NonExchange):

Imputed Financing 53,449 53,449

Total Financing Sources 3,049,357 3,049,357

Net Cost of Operations (+/-) 3,052,831 3,052,831

Net Change (3,474) (3,474)

Cumulative Results of Operations $ $ (81,375) $ $ (81,375)

Unexpended Appropriations:

Beginning Balances $ $ 1,194,999 $ $ 1,194,999

Budgetary Financing Sources:

Appropriations Received 3,113,000 3,113,000

Other Adjustments (75,221) (75,221)

Appropriations Used (2,995,908) (2,995,908)

Total Budgetary Financing Sources 41,871 41,871

Total Unexpended Appropriations 1,236,871 1,236,871

Net Position $ $ 1,155,495 $ $1,155,495

*Amounts may be off by a dollar due to 

rounding.

The accompanying notes are an integral part of these financial statements.
35

NATIONAL COUNCIL ON DISABILITY

STATEMENTS OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008

2009

Budgetary

2009

Non-Budgetary

Credit Program

Financing Accounts

2008

Budgetary

2008

Non-Budgeta

Credit Progra

Financing Acco

Budgetary Resources:

Unobligated Balance, Brought Forward, October 1 $ 415,578 $ $ 498,356 $

Recoveries of Prior Year Obligations 178,168 34,086

Budget Authority:

Appropriation 3,206,000 3,113,000

Earned

Collected 500 2,736

Subtotal 3,206,500 3,115,736

Permanently Not Available (14,879) (75,221)

Total Budgetary Resources $ 3,785,367 $ $ 3,572,957 $

Status of Budgetary Resources:

Obligations Incurred (Note 8)

Direct $ 3,269,135 $ $ 3,157,379 $

Subtotal 3,269,135 3,157,379

Unobligated Balances

Apportioned 257,081 242,092

Subtotal 257,081 242,092

Unobligated Balances - Not Available 259,151 173,486

Total Status of Budgetary Resources $ 3,785,367 $ $ 3,572,957 $

Change in Obligated Balances:

Obligated Balance, Net:

Unpaid Obligations, Brought Forward, October 

1

$ 924,491 $ $ 819,039 $

Total, Unpaid Obligated Balance, Net 924,491 819,039

Obligations Incurred 3,269,135 3,157,379

Gross Outlays (-) (2,961,876) (3,017,840)

Recoveries of Prior-Year Unpaid Obligations, Actual 

(-)

(178,168) (34,086)

Obligated Balance, Net, End of Period:

Unpaid Obligations (+) (Note 9) 1,053,582 924,491

Total, Unpaid Obligated Balance, Net, End of 

Period

$ 1,053,582 $ $ 924,491 $

Net Outlays:

Gross Outlays (+) 2,961,876 3,017,840

Offsetting Collections (-) (500) (2,736)

Net Outlays $ 2,961,376 $ $ 3,015,104 $

*Amounts may be off by a dollar due to rounding.

The accompanying notes are an integral part of these financial statements.
36

NOTE 1 –SIGNIFICANT ACCOUNTING POLICIES 

Reporting Entity

The National Council on Disability (NCD) is an independent agency of the Executive 

Branch of the United States Government that makes recommendations to the President 

and Congress on issues affecting Americans with disabilities.

NCD was initially established in 1978 as an advisory board within the Department of 

Education (Public Law 95-602). The Rehabilitation Act Amendments of 1984 (Public Law 

98-22 1) transformed NCD into an independent agency and required NCD to provide 

expert advice to Congress and the Administration. The Rehabilitation Act Amendments of 

1992 and 1998 and the Education of the Deaf Act Technical Amendments of 1993 

updated NCD’s statutory mandate.

NCD is composed of 15 members appointed by the President and confirmed by the 

U.S. Senate. The Council members set the agency budget and establish the 

parameters for what it will support. The NCD executive director has full 

responsibility for carrying out the agency’s operations as necessary to accomplish the 

goals and mission of the agency as established by the Council members.

NCD’s overall purpose is to promote policies, programs, practices and procedures that 

guarantee equal opportunity for all individuals with disabilities, regardless of the nature or 

severity of the disability; and to empower individuals with disabilities to achieve economic 

self-sufficiency, independent living, and inclusion and integration into all aspects of 

society. This mission is accomplished by serving as a policy agency that publishes 

reports and works with other federal agencies on policy development and implementing 

best practices. Strategic goals established for fiscal year 2009 included:

 Goal 1: Increase Levels of Public Participation and Outreach

 Goal 2: Advise the President and Congress about Issues of Importance to the 

Disability Community through an Annual Progress Report.

 Goal 3: Review Programs, Practices and Policies of Other Federal Agencies and 

Provide Recommendations for Improvement.

 Goal 4: Respond to the Needs and Priorities Identified by the Public by 

Completing Comprehensive Research Reports on Issues of Concern.

 Goal 5: Support the Attendance and Participation of Council Members at Meetings 

and in Activities Where NCD Accomplishments and Outreach Occur.

 Goal 6: Continue to Be Responsible Stewards of Funding Committed to the 

Support of NCD and Its Activities.

 Goal 7: Continue to Work with the Federal Emergency Management Agency 

(FEMA) and Others Responsible for Enhancing the Safety and Security of the 

Nation's Disability Community As Mandated by the Post-Katrina Emergency 

Management Reform Act.
37

Basis of Presentation 

These financial statements have been prepared from the accounting records of NCD 

in accordance with generally accepted accounting principles (GAAP) as promulgated 

by the Federal Accounting Standards Advisory Board (FASAB), and the form and content 

for entity financial statements specified in Office of Management and Budget (OMB) 

Circular A-136, “Financial Reporting Requirements.” GAAP for Federal entities is the 

hierarchy of accounting principles prescribed in Statement of Federal Financial Accounting 

Standards (SFFAS) 34, “The Hierarchy of Generally Accepted Accounting Principles, 

Including the Application of Standards issued by the Financial Accounting Standards 

Board.”

OMB Circular No. A- 136 requires agencies to prepare principal statements, which 

include a Balance Sheet, Statement of Net Cost, Statement of Changes in Net Position, 

and Statement of Budgetary Resources. The balance sheet presents, as of September 

30, 2009, amounts of future economic benefits owned or managed by NCD (assets), 

amounts owed by NCD (liabilities), and amounts which comprise the difference (net 

position). The Statement of Net Cost reports the full cost of the program, both direct and 

indirect costs of the output, and the costs of identifiable supporting services provided by 

other segments within NCD and other reporting entities. The Statement of Budgetary 

Resources reports an agency’s budgetary activity.

Basis of Accounting 

Transactions are recorded on the accrual accounting basis of accounting in 

accordance with OMB Circular A-136. Under the accrual basis of accounting, 

revenues are recognized when earned, and expenses are recognized when a liability is 

incurred, without regard to the receipt or payment of cash.

Use of Estimates 

The preparation of financial statements requires management to make estimates and 

assumptions that affect the reported amounts of assets and liabilities, the disclosure of 

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

amounts of revenues and expenses during the reporting period. Actual results may 

differ from those estimates.

Budgets and Budgetary Accounting 

NCD follows standard federal budgetary accounting policies and practices in accordance 

with OMB Circular A-11, “Preparation, Submission, and Execution of the Budget,” dated 

June 2008. Budgetary accounting facilitates compliance with legal constraints and 

controls over the use of federal funds. Each year, Congress provides NCD 

appropriations to incur obligations in support of agency programs. For Fiscal Years (FY) 

2009 and 2008, NCD is accountable for general fund appropriations and no-year fund 

carryover. NCD recognizes budgetary resources as assets when cash (funds held by 
38

Treasury) is made available through warrants and when spending authority from the 

offsetting collections is incurred.

Revenues and Other Financing Sources

NCD receives substantially all of the funding needed to support its programs 

through appropriations. NCD receives annual and no-year appropriations that may 

be used, within statutory limits, for operating and capital expenditures. 

Appropriations are recognized as revenues as the related program or 

administrative expenses are incurred.

Other financing sources for NCD consist of imputed financing sources which are costs 

financed by other federal entities on behalf of NCD, as required by SFFAS No. 5, 

“Accounting for Liabilities of the Federal Government. ” In certain instances, operating 

costs of NCD are paid out of funds appropriated to other federal agencies. In 

accordance with SFFAS 5, all expenses of a federal entity should be reported by that 

agency regardless of whether the agency will ultimately pay those expenses. 

Amounts for certain expenses of NCD, which will be paid by other federal agencies, 

are recorded in the Statement of Net Cost. A related amount is recognized in the 

Statement of Changes in Net Position as an imputed financing source. NCD records 

imputed expenses and financing sources for employee retirement plan contributions, 

group term life insurance, and health benefit costs, which are paid by the Office of 

Personnel Management (OPM).

Personnel Compensation and Benefits

Salaries and wages of employees are recognized as accrued payroll expenses and 

related liabilities as earned. These expenses are recognized as a funded liability 

when accrued.

Annual leave is accrued as it is earned by employees and is included in personnel 

compensation and benefit costs. An unfunded liability is recognized for earned but 

unused annual leave, since from a budgetary standpoint, this annual leave will be paid 

from future appropriations when employees use the leave. The amount accrued is 

based upon current pay rates for employees. Sick leave and other types of leave that 

are not vested are expensed when used and no future liability is recognized for these 

amounts.

NCD’s employees participate in one of two retirement programs, either the Civil Service 

Retirement System (CSRS) or the Federal Employees Retirement System (FERS), which 

became effective on January 1, 1987. NCD and its employees both contribute to these 

systems. Although NCD funds a portion of the benefits under CSRS and FERS and 

makes the necessary payroll withholdings, it does not report assets associated with 

these benefit plans in accordance with SFFAS 5.
39

For CSRS employees, NCD contributes an amount equal to 11.2% of the employees’ 

basic pay to the plan. For FERS employees, NCD contributes an amount equal to 7% of 

the employees’ basic pay to the plan.

Both CSRS employees and FERS employees are eligible to participate in the Thrift Savings 

Plan (TSP). The TSP is a defined contribution retirement plan intended to supplement the 

benefits provided under CSRS and FERS. For FERS employees, NCD contributes an 

amount equal to 1% of the employee’s basic pay to the TSP and matches employee 

contributions up to an additional 4%. CSRS employees receive no matching 

contribution from NCD.

OPM is responsible for reporting assets, accumulated plan benefits, and unfunded 

liabilities, if any, applicable to CSRS participants and FERS employees government-wide, 

including NCD’s employees. NCD has recognized an Imputed Cost and Imputed 

Financing Source for the difference between the estimated service cost and the 

contributions made by NCD and its covered employees. The estimated cost of pension 

benefits is based on rates issued by OPM.

Employees are entitled to participate in the Federal Employees Group Life Insurance 

(FEGLI) Program. Participating employees can obtain “basic life” term life insurance, with 

the employee paying two-thirds of the cost and NCD paying one-third. Additional 

coverage is optional, to be paid fully by the employee. The basic life coverage may be 

continued into retirement if certain requirements are met. OPM administers the FEGLI 

program and is responsible for the reporting of related liabilities. Each fiscal year, 

OPM calculates the U.S. Government’s service cost for the post-retirement portion of 

basic life coverage. Because NCD’s contributions to the basic life coverage are fully 

allocated by OPM to the pre-retirement portion of coverage, the Board has recognized 

the entire service cost of the post-retirement portion of basic life coverage as an Imputed 

Cost and Imputed Financing Source.

Assets and Liabilities

Intra-governmental assets and liabilities arise from transactions between NCD and other 

Federal entities.

Funds with the U.S. Treasury comprise the majority of assets on NCD’s balance sheet. 

All other assets result from activity with non-federal sources.
40

Liabilities represent amounts that are likely to be paid by NCD as a result of 

transactions that have already occurred. The accounts payable portion of liabilities 

consists of amounts owed to federal agencies and commercial vendors for goods, 

services, and other expenses received but not yet paid.

Liabilities covered by budgetary or other resources are those liabilities of NCD for 

which Congress has appropriated funds, or funding is otherwise available to pay 

amounts due.

Fund Balance with Treasury

The U.S. Department of the Treasury (Treasury) processes NCD’s receipts and 

disbursements. Fund Balance with Treasury is the aggregate amount of the agency’s 

accounts with Treasury for which the agency is authorized to liquidate obligations, pay 

funded liabilities, and make expenditures. The fund balance is increased through the 

receipt of non-expenditure Treasury warrants for appropriations, positive non-expenditure 

transfers, and other expenditure inflows of funds. The Fund Balance with Treasury is 

reduced through non-expenditure Treasury Warrants for recissions, negative nonexpenditure transfers, disbursements, and other expenditure cash outflows of funds.

NCD’s funds with the U.S. Treasury are cash balances from appropriations as of the 

fiscal yearend from which NCD is authorized to make expenditures and pay liabilities 

resulting from operational activity.

General Property, Plant and Equipment, Net

Property, plant, and equipment (PP&E) have been defined in the Federal Government as 

tangible items owned by the Federal Government and having an expected useful life of 

greater than two years. NCD has established the following policies for PP&E:

PP&E is reported at acquisition cost.

The capitalization threshold is $5,000 for assets with a useful life of two or more years.

For bulk purchases, items will be capitalized when the individual useful lives are at 

least two years and the property acquired has an aggregate value of $100,000 or 

more.

Acquisitions of PP&E that do not meet the capitalization criteria outlined above are 

recorded as operating expenses. General PP&E consists of items that are used by NCD 

to support its mission.
41

Depreciation on assets is calculated using the straight-line method. Depreciation 

begins the month after the asset is placed in service.

Useful lives are as follows:

Equipment - 4 years

Furniture - 4 years

Maintenance, repairs and minor renovations are expensed as incurred. 

Expenditures that materially increase values, change capacities or extend useful 

lives are capitalized.

The costs of any leasehold improvements financed with NCD appropriated funds is 

capitalized if the total cost exceeds $25,000. Construction costs are accumulated as 

“construction in-progress” until completion, at which time they are transferred to 

“leasehold improvements” and depreciated over 7 years or the remainder of the lease, 

whichever is less.

Internal use software development and acquisition costs of $25,000 are capitalized as 

“software development-in-progress” until the development stage is completed and the 

software is successfully tested. At acceptance, “software development-in-progress” costs 

are reclassified as “internal use software” and amortized using the straight-line method 

over an estimated useful life of 4 years. Purchased commercial software that does not 

meet the capitalization criteria is expensed. Enhancements that do not add significant 

new capability or functionality are expensed.

Prepaid and Deferred Charges

Payments in advance of the receipt of goods and services are recorded as prepaid 

charges at the time of prepayment and recognized as expenses when the related 

goods and services are received.

Liabilities

Liabilities represent amounts expected to be paid as the result of a transaction or event 

that has already occurred. Liabilities covered by budgetary resources are liabilities 

incurred which are covered by realized budgetary resources as of the balance sheet 

date. Available budgetary resources include new budget authority, spending authority 

from the offsetting collections, recoveries of unexpired budget authority through 

downward adjustments of prior year obligations, and unobligated balances of budgetary 

resources at the beginning of the year. Unfunded liabilities are not considered to be 

covered by such budgetary resources. Examples of unfunded liabilities are actuarial 

liabilities for future Federal Employees’ Compensation Act (FECA) payments and 

annual leave. The Government, acting in its sovereign capacity, can abrogate 

liabilities arising from other than contracts.
42

Contingencies

The criteria for recognizing contingencies for claims are (1) a past event or exchange 

transaction has occurred as of the date of the statements; (2) a future outflow or other 

sacrifice of resources is probable; and (3) the future outflow or sacrifice of resources is 

measurable (reasonably estimated). NCD recognizes material contingent liabilities in the 

form of claims, legal action, administrative proceedings and environmental suits that 

have been brought to the attention of legal counsel, some of which will be paid by the 

Treasury Judgment Fund. It is the opinion of management and legal counsel that the 

ultimate resolution of these proceedings, actions and claims, will not materially affect 

the financial position or results of operations.

Net Position

Net position consists of unexpended appropriations and cumulative results of operations. 

Unexpended appropriations represent amounts of budget authority to include unobligated 

or obligated balances not rescinded or withdrawn. Cumulative results of operations is 

comprised of the following: (1) the difference between revenues and expenses, (2) the 

net amount of transfers of assets in and out without reimbursement, and (3) donations, 

all since inception of the fund(s).

NOTE 2 – FUND BALANCE WITH TREASURY

All of NCD’s Fund Balance with Treasury is derived from appropriated funds. No 

trust, revolving or other fund types are used to fund NCD’s activities. NCD operates 

as an annual fund, receiving a new appropriation each year. This fund balance with 

treasury is a consolidated balance of one no-year fund and five annual funds (FY 2005, 

FY 2006, FY 2007, FY 2008, and FY 2009). The annual fund for FY 2004 was 

cancelled and the remaining fund balance of $14,879 was transferred back to the US 

Treasury during fiscal year 2009.

A. Fund Balance with Treasury 2009 2008 

General Funds $1,569,814 $1,340,070

B. Status of Fund Balance with Treasury

1) Unobligated Balance

a) Available 257,081 242,092

b) Unavailable 259,151 173,486

2) Obligated Balance not yet Disbursed 1,053,582 924,491

Total $1,569,814 $1,340,070 *

* Rounding
43

NOTE 3 – GENERAL PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment is used in NCD’s operations and consumed over time. 

NCD owns certain furniture, computer equipment and software that are not reflected on 

the balance sheet as of September 30, 2009 and 2008 because either: (1) items were 

were acquired several years ago, are still in service, but are fully depreciated and have 

immaterial book values, or (2) purchases were below the capitalization policy stated in 

Note 1. Therefore, these property, plant and equipment items are not recorded as 

assets as of September 30, 2009 or 2008.

NOTE 4 – LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

Liabilities of NCD are classified as liabilities covered or not covered by budgetary 

resources. As of September 30, 2009, NCD showed liabilities covered by budgetary 

resources of $186,449 and liabilities not covered by budgetary resources of $95,410. As 

of September 30, 2008, NCD showed liabilities covered by budgetary resources of 

$103,199 and liabilities not covered by budgetary resources of $81,375.

As of September 30, 2009, liabilities covered by budgetary resources is composed of 

Accounts Payable of $30,618, Accrued Funded Payroll and Leave of $58,742, and 

Employer Contributions and Payroll Taxes Payable of $12,512. As of September 30, 

2008, liabilities covered by budgetary resources was composed of Accounts Payable of 

$39,518 Accrued Funded Payroll and Leave of $63,681.

2009 2008

Other (Unfunded leave liability) 95,410 81,375

Total liabilities not covered by budgetary 

resources

95,410 81,375

Total liabilities covered by budgetary resources 186,449 103,199

Total Liabilities $281,859 $184,574

*Rounding
44

NOTE 5 – OTHER LIABILITIES

As of September 30, 2009, other liabilities with the public consisted of Accrued Funded 

Payroll and Leave of $58,742 and unfunded leave in the amount of $95,410. Other 

Intragovernmental liabilities consist of employer contributions and payroll taxes 

payable of $12,512. As of September 30, 2008, other liabilities with the public 

consisted of Accrued Funded Payroll and Leave of $63,681 and unfunded leave in the 

amount of $81,375.

Non-Current Current

FY 2009

Total

Intragovernmental

Employer Contributions & Payroll Taxes 

Payable

$ - $ 12,512 $ 12,512

Total Intragovernmental - 12,512 12,512

Unfunded Leave 95,410 - 95,410

Accrued Funded Payroll & Leave - 58,742 58,742

Total Other Liabilities $ 95,410 $ 71,254 $ 166,664

FY 2008

Non-Current Current Total

Unfunded Leave $ 81,375 $ - $ 81,375

Accrued Funded Payroll & Leave - 63,681 63,681

Total Other Liabilities $ 81,375 $ 63,681 $ 145,056

NOTE 6 –LEASES 

Entity as Lessee:

Operating Leases

NCD leases office space at 1331 F Street, NW, Washington, DC. The lease was entered 

into and became effective December 2007, and expires September 2011. The lease does 

not contain an option to renew, and the space may be vacated at any time upon four (4) 

months written notice.

The following is a schedule of future minimum lease payments required by the lease:

Fiscal Year Ended Minimum Lease Payments 

September 30, 2009 $ 240,168

September 30, 2010 241,080

September 30, 2011 222,079

$ 703,327
45

NOTE 7 –INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE 

Intragovernmental costs are those of goods/services purchased from a 

federal entity.

Program A

Intragovernmental 

costs Public costs

Total Program A costs

Total 

2009

Total 

2008

475,234 

2,638,202

550,023 

2,502,809

3,113,436 * 3,052,831 *

* Rounding

NOTE 8 – APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED

Apportionment is a plan, approved by OMB, to spend resources provided by one of the 

annual appropriations acts, a supplemental appropriations act, a continuing resolution, 

or a permanent law (mandatory appropriations). Resources are apportioned by Treasury 

Account Fund Symbol (TAFS). The apportionment identifies amounts available for 

obligation and expenditure. It specifies and limits the obligations that may be incurred 

and expenditures made (or makes other limitations, as appropriate) for specified time 

periods, programs, activities, projects, objects, or any combination thereof. An 

apportioned amount may be further subdivided by an agency into allotments, 

suballotments, and allocations. All of NCD’s obligations incurred are considered direct. 

None are reimbursable. Obligations incurred for NCD include both Category A and 

Category B apportionments, as defined by OMB Circular A-11, and reported on NCD’s 

latest SF 132. Category A apportionments distribute budgetary resources by fiscal 

quarters. Category B apportionments typically distribute budgetary resources by 

activities, projects, objects or a combination of these categories. NCD has no funds 

exempt from apportionment. The table below presents the distribution of obligations 

incurred by apportionment category. 

2009 2008

Direct

Category A $129,080 $ 3,157,379

Category B 3,140,055 -

$ 3,269,135 $ 
46

NOTE 9 – UNDELIVERED ORDERS AT THE END OF THE PERIOD

Undelivered orders represent the value of goods and services ordered and obligated that 

have not been received. This amount includes any orders for which advance payment 

has been made but for which delivery or performance has not yet occurred. The 

amount of Unpaid Obligated Balance, Net, End of Period includes obligations relating 

to Undelivered Orders (good and services contracted for but not yet received at the 

end of the year) and Accounts Payable (amounts owed at the end of the year for 

goods and services received).

Undelivered

Orders

Account

s 

Payable

Unpaid Obligated Balance

Net

2009 867,132 186,450 $1,053,582

2008 821,292 103,199 $924,491
47

NOTE 10 – RECONCILIATION OF NET COST OF OPERATIONS (PROPRIETARY) 

TO BUDGET (FORMERLY THE STATEMENT OF FINANCING)

2009 2008

Resources Used to Finance Activities:

Budgetary Resources Obligated

Obligations Incurred $ 3,269,135 $ 3,157,379

Less: Spending Authority from Offsetting Collections 

and Recoveries 178,668 36,822

Net Obligations 3,090,467 3,120,557

Other Resources

Imputed Financing from Costs Absorbed by Others 54,774 53,449

Other Resources (+/-)

Net Other Resources Used to Finance Activities 54,774 53,449

Total Resources Used to Finance Activities 3,145,241 3,174,007

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 45,840 124,649

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

of Operations 45,840 124,649

Total Resources Used to Finance the Net Cost of Operations

3,099,401 3,049,357

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 14,035 3,474

Total Components of Net Cost of Operations that will Require or Generate 14,035 3,474

Resources in Future Periods

Total Components of Net Cost of Operations that will not Require or Generate

Resources in the Current Period 14,035 3,474

Net Cost of Operations $ 3,113,436 $ 3,052,831

Liabilities not covered by budgetary resources total $95,410 and the change in 

components requiring or generating resources in future period shows $14,035. The 

$14,035 is the net increase of future funded expenses – leave between appropriations 

of annual fund 2008 and annual fund 2009. Accrued funded payroll liability is covered by 

budgetary resources and is included in the net cost of operations. Whereas, the 

unfunded leave liability includes the expense related to the increase in annual leave 

liability for which the budgetary resources will be provided in a subsequent period.
NOTE 11 – SUBSEQUENT EVENTS

In preparing these financial statements, management has evaluated events and 

transactions for potential recognition or disclosure through December 14, 2009, which is the 

date the financial statements were available to be issued.

DISTRIBUTION

This report is intended for the information and use of the National Council on Disability 

members, management, Office of Management and Budget, the Government 

Accountability Office, and the U.S. Congress, and is not intended to be and should not 

be used by anyone other than these specified parties.

National Council on Disability

December 16, 2009

Washington, DC