NATIONAL COUNCIL ON DISABILITY

GENERAL FUND

FINANCIAL STATEMENTS

As Of And For The Years Ended September 30, 2016 and 2015





2016 2015

Assets:

 Intragovernmental:

 Fund Balance With Treasury (Note 2) $ 1,211,289.87 1,378,117.07 $ 

 Other:

 Advances and Prepayments (Note 3) 87,253.76 118,838.55 

 Total Intragovernmental 1,298,543.63 1,496,955.62 

 Assets With The Public:

 Accounts Receivable, net (Note 4) 18,966.02 293.23 

 Direct Loan and Loan Guarantees, Net - 11,959.01 

 General Property, Plant and Equipment, Net (Note 5) - 14,881.32 

Total Assets $ 1,317,509.65 1,524,089.18 $ 

Liabilities: (Note 6)

 Intragovernmental:

 Accounts Payable 81,690.96 - 

 Other:

 Employer Contributions and Payroll Taxes Payable (Note 7) 8,031.53 13,383.81 

 Total Intragovernmental 89,722.49 13,383.81 

 Liabilities With the Public:

 Accounts Payable 88,129.45 132,730.46 

 Other:

 Accrued Funded Payroll and Leave (Note 7) 35,562.41 47,260.80 

 Employer Contributions and Payroll Taxes Payable 952.36 1,922.36 

 Unfunded Leave 89,830.11 88,710.58 

Total Liabilities $ 304,196.82 284,008.01 $ 

Net Position:

 1,084,176.92 1,301,658.19 

 (70,864.09) (61,577.02) 

 1,013,312.83 1,240,081.17 

 Total Net Position $ 1,013,312.83 1,240,081.17 $ 

Total Liabilities and Net Position $ 1,317,509.65 1,524,089.18 $ 

 Unexpended Appropriations - All Other Funds (Consolidated

 Totals)

 Cumulative Results of Operations - All Other Funds

 (Consolidated Totals)

 Total Net Position - All Other Funds (Consolidated

 Totals)

THE NATIONAL COUNCIL ON DISABILITY

BALANCE SHEET

As Of September 30, 2016 and 2015

The accompanying notes are an integral part of these statements.

1
2016 2015

Program Costs:

 NCD:

 Gross Costs (Note 9) $ 3,045,306.93 $ 3,368,697.89

 Net Program Costs 3,045,306.93 3,368,697.89

Net Cost of Operations $ 3,045,306.93 $ 3,368,697.89

THE NATIONAL COUNCIL ON DISABILITY

STATEMENT OF NET COST

As Of And For The Years Ended September 30, 2016 and 2015

The accompanying notes are an integral part of these statements.

2
Funds From Dedicated 

Collections 

(Consolidated Totals)

All Other Funds 

(Consolidated Totals) Eliminations Consolidated Total

Cumulative Results of Operations:

Beginning Balances $ - $ (70,864.09) $ (70,864.09)

Beginning balance, as adjusted - (70,864.09) - (70,864.09)

Budgetary Financing Sources:

Appropriations used $ - $ 2,981,561.70 $ 2,981,561.70

Other Financing Sources (Non-Exchange):

Imputed financing - 73,032.30 73,032.30

Total Financing Sources - 3,054,594.00 - 3,054,594.00

Net Cost of Operations - 3,045,306.93 3,045,306.93

Net Change $ - $ 9,287.07 $ 9,287.07

Cumulative Results of Operations $ - $ (61,577.02) $ (61,577.02)

Unexpended Appropriations:

Beginning Balance $ - $ 1,084,176.92 $ 1,084,176.92

Budgetary Financing Sources:

Appropriations received - 3,250,000.00 3,250,000.00

Other adjustments (50,957.03) - (50,957.03)

Appropriations used - (2,981,561.70) (2,981,561.70)

Total Budgetary Financing Sources - 217,481.27 217,481.27

Total Unexpended Appropriations - 1,301,658.19 1,301,658.19

Net Position $ - $ 1,240,081.17 $ 1,240,081.17

THE NATIONAL COUNCIL ON DISABILITY

STATEMENT OF CHANGES IN NET POSITION

As Of And For The Years Ended September 30, 2016 and 2015

FY 2016 (CY)

The accompanying notes are an integral part of these statements.

 3
Funds From Dedicated 

Collections 

(Consolidated Totals)

All Other Funds 

(Consolidated Totals) Eliminations Consolidated Total

Cumulative Results of Operations:

Beginning Balances $ (72,416.80) - $ $ (72,416.80)

Beginning balance, as adjusted (72,416.80) - - (72,416.80) 

Budgetary Financing Sources:

Appropriations used $ 3,302,401.77 $ 3,302,401.77

Other Financing Sources (Non-Exchange):

Imputed financing 67,848.83 - 67,848.83

Total Financing Sources 3,370,250.60 3,370,250.60 - 

Net Cost of Operations 3,368,697.89 3,368,697.89

Net Change $ 1,552.71 - $ $ 1,552.71

Cumulative Results of Operations $ (70,864.09) - $ $ (70,864.09)

Unexpended Appropriations:

Beginning Balance $ 1,179,173.94 $ 1,179,173.94

Budgetary Financing Sources:

Appropriations received 3,250,000.00 - 3,250,000.00

Other adjustments (42,595.25) - (42,595)

Appropriations used (3,302,401.77) - (3,302,401.77)

Total Budgetary Financing Sources (94,997.02) - (94,997.02)

Total Unexpended Appropriations 1,084,176.92 - 1,084,176.92

Net Position $ - $ 1,013,312.83 $ 1,013,312.83

THE NATIONAL COUNCIL ON DISABILITY

STATEMENT OF CHANGES IN NET POSITION

As Of And For The Years Ended September 30, 2016 and 2015

FY 2015 (PY)

 4
2016 2015

Budgetary Budgetary

BUDGETARY RESOURCES

Unobligated balance brought forward, October 1 $ 385,020.89 253,092.31 $ 

Unobligated balance brought forward, October 1, adjusted 385,020.89 253,092.31 

Recoveries of prior year unpaid obligations (unobligated balances) 19,873.29 388,156.33 

Other changes in unobligated balance (42,595.25) (50,957.03) 

Unobligated balance from prior year budget authority, net 362,298.93 590,291.61 

Appropriations (discretionary and mandatory) 3,250,000.00 3,250,000.00 

Spending authority from offsetting collections 26,167.41 20,010.52 

Total budgetary resources $ 3,638,466.34 3,860,302.13 $ 

STATUS OF BUDGETARY RESOURCES

Obligations incurred (Note 10) $ 3,385,374.03 3,675,794.54 $ 

Apportioned 101,007.12 52,825.94 

Unapportioned 152,085.19 131,681.65 

Unobligated balance brought forward, end of year 253,092.31 184,507.59 

Total budgetary resources $ 3,638,466.34 3,860,302.13 $ 

CHANGE IN OBLIGATED BALANCE

Unpaid obligations, brought forward, October 1 (gross) $ 932,967.78 958,197.56 $ 

Obligations incurred 3,385,374.03 3,675,794.54 

Outlays (gross) (-) (3,340,270.96) (3,052,226.29) 

Recoveries of prior year unpaid obligations (-) (19,873.29) (388,156.33) 

Unpaid obligations, end of year 958,197.56 1,193,609.48 

Obligated balance, start of year (net) 932,967.78 958,197.56 

Obligated balance, end of year (net) $ 958,197.56 1,193,609.48 $ 

BUDGET AUTHORITY AND OUTLAYS, NET

Budget authority, gross (discretionary and mandatory) $ 3,276,167.41 3,270,010.52 $ 

Actual offsetting collections (discretionary and mandatory) (-) (26,167.41) (20,010.52) 

Budget authority, net (discretionary and mandatory) 3,250,000.00 3,250,000.00 

Outlays, gross (discretionary and mandatory) 3,340,270.96 3,052,226.29 

Actual offsetting collections (discretionary and mandatory) (-) (26,167.41) (20,010.52) 

Outlays, net (discretionary and mandatory) 3,314,103.55 3,032,215.77 

Agency outlays, net (discretionary and mandatory) $ 3,314,103.55 3,032,215.77 $ 

THE NATIONAL COUNCIL ON DISABILITY

STATEMENT OF BUDGETARY RESOURCES

As Of And For The Years Ended September 30, 2016 and 2015

 The accompanying notes are an integral part of these statements.

5
6

NATIONAL COUNCIL ON DISABILITY

GENERAL FUND

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 98-221) 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 fifteen 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. 

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 by the Office of Management and Budget (OMB) 

in OMB Circular No. 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.”
7

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)

Basis of Presentation – (Continued)

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

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

Statement of Budgetary Resources. The balance sheet presents, as of September 30, 

2016, 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 in accordance with OMB 

Circular No. 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 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 2016. 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) 2016 and 2015, NCD is accountable for general fund appropriations and noyear fund carryover. NCD recognizes budgetary resources as assets when cash (funds 

held by 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, 
8

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)

Revenues and Other Financing Sources – (Continued)

within statutory limits, for operating and capital expenditures. Appropriations are 

recognized as revenues as the related programs 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.

For CSRS employees, NCD contributes an amount equal to 7% of the employees’ basic 

pay to the plan. For FERS employees, NCD contributes an amount equal to 13.7% of 

the employees’ basic pay to the plan. For FERS-RAE and FRAE employees, NCD 

contributes an amount equal to 11.9% of the employees’ basic pay to the plan.
9

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)

Personnel Compensation and Benefits – (Continued)

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 governmentwide, 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.

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.
10

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)

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

Treasury is reduced through non-expenditure Treasury Warrants for recissions, 

negative non-expenditure 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 year-end 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 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.

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
11

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)

General Property, Plant, and Equipment, Net – (Continued)

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.

Contingencies

The agency has potential commitments or contingencies that currently do not meet any 

of the conditions for liability recognition however there is a possibility that a loss will 

occur of approximately $400,000.
12

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)

Net Position

Net position consists of unexpended appropriations and cumulative results of 

operations. Unexpended appropriations represent amounts of budgetary authority to 

include unobligated or obligated balances not rescinded or withdrawn. Cumulative 

results of operations are 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).

Funds from Dedicated Collections

SFFAS 43 replaced SFFAS 27 and resulted in a significant change in the definition of 

what was previously known as "earmarked funding." SFFAS 43 states that funds 

from dedicated collections are financed by specifically identified revenues, provided to 

the government by non-federal sources, often supplemented by other financing sources, 

which remain available over time. These specifically identified revenues and other 

financing sources are required by statute to be used for designated activities, benefits or 

purposes, and must be accounted for separately from the government’s general 

revenues. 

As of FY 2014 it was determined that NCD funding that previously was designated 

"earmarked" did not qualify under the new definition for "Funds 

from Dedicated Collections" and are not presented separately in these financial 

statements.

NOTE 2 – FUND BALANCE WITH TREASURY

All of NCD’s fund balance with treasury is coming from appropriations. No trust, 

revolving or other fund type are used to fund NCD’s activities. NCD operates as an 

annual fund, where each year is a new appropriation. This fund balance with treasury is 

a consolidated balance of one no-year fund and five annual funds (FY 2012, FY 2013, 

FY 2014, and FY 2015 and FY 2016). The annual fund for FY 2011 is cancelled and 

the remaining fund balance of $50,957.03 is given back to US Treasury during fiscal 

year 2016.

A. Fund Balance with Treasury 2016 2015

Appropriated Fund 1,378,117.07 1,211,289.87 

B. Status of Fund Balance with Treasury

1) Unobligated Balance 184,507.59 

a) Available 52,825.94 101,007.12 

b) Unavailable 131,681.65 152,085.19 

2) Obligated Balance not yet Disbursed 1,193,609.48 958,197.56 

Total 1,378,117.07 1,211,289.87 
13

NOTE 3 – ADVANCES AND PREPAYMENTS

Advances and Prepayments represents advances to Government Publishing Office 

Deposit Accounts.

2016 2015

Deferred 118,838.55 87,253.76

Total 118,838.55 87,253.76

NOTE 4 – ACCOUNTS RECEIVABLE, NET

Accounts Receivable, Net from the Public represents the Accounts Receivable from 

current employees.

2016 2015

Accounts Receivable - With the Public 12,252.24 18,966.02

NOTE 4A – LOANS RECEIVABLE, NET

Loans Receivable, Net from the Public represents a Loan Receivable from a current 

employee.

2016 2015

Loans Receivable - With the Public - -

NOTE 5 - GENERAL PROPERTY, PLANT AND EQUIPMENT, NET 

The Board’s total cost, accumulated depreciation, and net book value for PPE for the 

year ending September 30, 2016 is as follows. There was no PPE for the year ending 

September 30, 2015.

2016 Equipment Furniture 

& Fixtures

Software Software in 

Development

Total

Cost $15,452.00 $0.00 $0.00 $0.00 $15,452.00

Accum. 

Depr.

($570.68) $0.00 $0.00 $0.00 ($570.68)

Net Book 

Value

$14,881.32 $0.00 $0.00 $0.00 $14,881.32
14

NOTE 6 – LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

Liabilities of NCD are classified as liabilities covered or not covered by budgetary 

resources. As of September 30, 2016, NCD showed liabilities covered by budgetary 

resources of $195,297.43 and liabilities not covered by budgetary resources of 

$88,710.58. As of September 30, 2015, NCD showed liabilities covered by budgetary 

resources of $214,366.71 and liabilities not covered by budgetary resources of 

$89,830.11.

LIABILITIES NOT COVERED BY BUDGETARY RESOURCES - Continued

As of September 30, 2016, liabilities covered by budgetary resources are composed of 

Accounts Payable of $132,730.46, Accrued Funded Payroll and Leave of $47,260.80, 

and Employer Contributions and Payroll Taxes Payable of $15,306.17. As of 

September 30, 2015, liabilities covered by budgetary resources are composed of 

Accounts Payable of $169,820.41, Accrued Funded Payroll and Leave of $35,562.41, 

and Employer Contributions and Payroll Taxes Payable of $8,983.89. 

2016 2015

Other (Unfunded leave liability) 88,710.58 89,830.11

Total liabilities not covered by budgetary resources 88,710.58 89,830.11

Total liabilities covered by budgetary resources 195,297.43 214,366.71

Total Liabilities 284,008.01 304,196.82

NOTE 7 – OTHER LIABILITIES

As of September 30, 2016, other liabilities with the public consist of Accrued Funded 

Payroll and Leave of $47,260.80, unfunded leave in the amount of $88,710.58, and 

employer contributions and payroll taxes payable – TSP of $1,922.36. Other 

Intragovernmental liabilities consist of employer contributions and payroll taxes payable 

of $13,383.81. 

As of September 30, 2015, other liabilities with the public consist of Accrued Funded 

Payroll and Leave of $35,562.41 unfunded leave in the amount of $89,830.11, and 

employer contributions and payroll taxes payable – TSP of $952.36. Other 

Intragovernmental liabilities consist of employer contributions and payroll taxes payable 

of $8,031.53. 

With the Public Non-Current Current Total

2016 Other Liabilities 88,710.58 49,183.16 137,893.74

2015 Other Liabilities 89,830.11 36,514.77 126,344.88

Intragovernmental Non-Current Current Total

2016 Other Liabilities - 13,383.81 13,383.81

2015 Other Liabilities - 8,031.53 8,031.53
15

NOTE 8 - LEASES

Operating Leases

NCD leases office space at 1331 F Street, NW, Washington, DC. The lease was 

entered into on August 29, 2012 for a period of 10-years retroactive August 22, 2011 

continuing through August 21, 2021. The lease and 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, 2017 279,139 

September 30, 2018 282,076 

September 30, 2019 285,100 

September 30, 2020 288,215 

September 30, 2021 257,804 

 1,392,334 

NOTE 9 – INTRAGOVERNMENTAL COSTS AND EXCHANCE REVENUE

Intragovernmental costs are those of goods/services purchased from a federal entity.

Total Total 

2016 2015

Program A

Intragovernmental costs 775,846.84 884,096.35

Public costs 2,269,460.09 2,484,601.54

Total Program A costs 3,045,306.93 3,368,697.89

Total Program A 3,045,306.93 3,368,697.89

NOTE 10 – APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED

Obligations for NCD are category B, which is the amount of direct obligations incurred 

against amounts apportioned under category B on the latest SF 132.

2016 2015

Direct

Category B 3,675,794.54 3,385,374.03 

 3,675,794.54 3,385,374.03
16

NOTE 11 – UNDELIVERED ORDERS AT THE END OF THE PERIOD

The amount of NCD’s undelivered orders was $1,117,150.60 and $831,084.61 as of 

September 30, 2016 and 2015, respectively.

NOTE 12 – EXPLANATION OF THE RELATIONSHIP BETWEEN LIABILITIES NOT 

COVERED BY BUDGETARY RESOURCES ON THE BALANCE SHEET AND THE 

CHANGE IN COMPONENTS REQUIRING OR GENERATING RESOURCES IN 

FUTURE PERIODS

The Change in Components Requiring or Generating Resources in Future Periods 

equals the difference between the opening and ending balances of Liabilities Not 

Covered by Budgetary Resources (as shown on the Balance Sheet, reference Note 6), 

shown as follows:

FY 2016

FY 2015 FY 2016 Change

Unfunded Annual Leave $89,830.11 $88,710.58 ($1,119.53)

FY 2015

FY 2014 FY 2015 Change

Unfunded Annual Leave $89,975.63 $89,830.11 ($145.52)

Note accrued funded payroll liability is covered by budgetary resources and is included 

in the net cost of operations, whereas unfunded annual leave liability includes the 

expense related to the decrease in annual leave liability for which the budgetary 

resources will be provided in a subsequent period.

NOTE 13 – RECONCILIATION OF NET COST OF OPERATIONS (PROPRIETARY) 

TO BUDGET

Budgetary resources obligated are obligations for personnel, goods, services, benefits, 

etc. made by the NCD in order to conduct operations or acquire assets. Other (i.e., 

non-budgetary) financing resources are also utilized by the NCD in its program 

(proprietary) operations. For example, spending authority from offsetting collections 

and recoveries are financial resources from the recoveries of prior year obligations (e.g., 

the completion of a contract where not all the funds were used) and refunds or other 

collections (i.e., funds used to conduct operations that were previously budgeted). An 

imputed financing source is recognized for future federal employee benefits costs
17

NOTE 13 – RECONCILIATION OF NET COST OF OPERATIONS (PROPRIETARY) 

TO BUDGET – (CONTINUED)

incurred for the NCD employees that will be funded by OPM. Changes in budgetary 

resources obligated for goods, services, and benefits ordered by not yet provided 

represents the difference between the beginning and ending balances of undelivered 

orders (i.e., good and services received during the year based on obligations incurred 

the prior year represent a cost of operations not funded from budgetary resources). 

Resources that finance the acquisition of assets are budgetary resources used to 

finance assets and not cost of operations (e.g., increases in accounts receivables or 

capitalized assets). Financing sources yet to be provided represents financing that will 

be provided in future periods for future costs that are recognized in determining the net 

cost of operations for the present period. Finally, components not requiring or 

generating resources are costs included in the net cost of operations that do not require 

resources (e.g., depreciation and amortized expenses of assets previously capitalized).

A reconciliation between budgetary resources obligated and net cost of operations, i.e., 

providing an explanation between budgetary and financial (proprietary) accounting is as 

follows (note: in prior years this information was presented as a separate financial 

statement (the Statement of Financing)):

2016 2015

Budgetary Resources Obligated 3,675,794.54 3,385,374.03

Spending Authority from Recoveries and Offsetting 

Collections (408,166.85) (46,040.70)

Distributed Offsetting Receipts - -

Imputed Financing from Costs Absorbed by Others 73,032.30 67,848.83

Changes in Budgetary Resources Obligated for Goods, 

Services, and Benefits Ordered but Not Yet Provided (286,065.99) (36,931.56)

Other Resources or adjustments - -

Resources that Finance the Acquisition of Assets (8,738.22) (1,407.19)

Increase in Annual Leave Liability (1,119.53) (145.52)

Depreciation and Amortization 570.68

Net Cost of Operations 3,045,306.93 3,368,697.89

NOTE 14 – SUBSEQUENT EVENTS

In preparing these financial statements, management has evaluated events and 

transactions for potential recognition or disclosure through December 12, 2016, which is 

the date the financial statements were available to be issued.