NATIONAL COUNCIL ON DISABILITY

GENERAL FUND

FINANCIAL STATEMENTS

As Of And For The Years Ended September 30, 2015 and 2014





2015 2014

Assets:

 Intragovernmental:

 Fund Balance With Treasury (Note 2) $ 1,317,988.67 1,211,289.87 $ 

 Other:

 Advances and Prepayments (Note 3) 89,000.00 87,253.76 

 Total Intragovernmental 1,406,988.67 1,298,543.63 

 Assets With The Public:

 Accounts Receivable, net (Note 4) 17,558.83 18,966.02 

Total Assets $ 1,424,547.50 1,317,509.65 $ 

Liabilities: (Note 6)

 Intragovernmental:

 Accounts Payable 9,111.96 81,690.96 

 Other:

 Employer Contributions and Payroll Taxes Payable (Note 7) 7,593.62 8,031.53 

 Total Intragovernmental 16,705.58 89,722.49 

 Liabilities With the Public:

 Accounts Payable 177,544.25 78,456.88 

 Other:

 Accrued Funded Payroll and Leave (Note 7) 32,646.38 35,562.41 

 Employer Contributions and Payroll Taxes Payable 918.52 952.36 

 Unfunded Leave 89,975.63 89,830.11 

Total Liabilities $ 317,790.36 294,524.25 $ 

Net Position:

 1,179,173.94 1,093,849.49 

 (72,416.80) (70,864.09) 

 1,106,757.14 1,022,985.40 

 Total Net Position $ 1,106,757.14 1,022,985.40 $ 

Total Liabilities and Net Position $ 1,424,547.50 1,317,509.65 $ 

THE NATIONAL COUNCIL ON DISABILITY

BALANCE SHEET

As Of September 30, 2015 and 2014

 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 accompanying notes are an integral part of these statements.

1
2015 2014

Program Costs:

 NCD:

 Gross Costs (Note 9) $ 3,359,025.32 $ 2,650,259.42

 Net Program Costs 3,359,025.32 2,650,259.42

Net Cost of Operations $ 3,359,025.32 $ 2,650,259.42

THE NATIONAL COUNCIL ON DISABILITY

STATEMENT OF NET COST

As Of And For The Years Ended September 30, 2015 and 2014

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 $ - $ (72,416.80) $ (72,416.80)

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

Budgetary Financing Sources:

Appropriations used $ - $ 3,292,729.20 $ 3,292,729.20

Other Financing Sources (Non-Exchange):

Imputed financing - 67,848.83 67,848.83

Total Financing Sources - 3,360,578.03 - 3,360,578.03

Net Cost of Operations - 3,359,025.32 3,359,025.32

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) - (42,595.25)

Appropriations used - (3,292,729.20) (3,292,729.20)

Total Budgetary Financing Sources - (85,324.45) (85,324.45)

Total Unexpended Appropriations - 1,093,849.49 1,093,849.49

Net Position $ - $ 1,022,985.40 $ 1,022,985.40

THE NATIONAL COUNCIL ON DISABILITY

STATEMENT OF CHANGES IN NET POSITION

As Of And For The Years Ended September 30, 2015 and 2014

FY 2015 (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 $ (91,463.70) - $ $ (91,463.70)

Beginning balance, as adjusted (91,463.70) - - (91,463.70) 

Budgetary Financing Sources:

Appropriations used $ 2,599,764.55 $ 2,599,764.55

Other Financing Sources (Non-Exchange):

Imputed financing 69,541.77 - 69,541.77

Total Financing Sources 2,669,306.32 2,669,306.32 - 

Net Cost of Operations 2,650,259.42 2,650,259.42

Net Change $ 19,046.90 - $ $ 19,046.90

Cumulative Results of Operations $ (72,416.80) - $ $ (72,416.80)

Unexpended Appropriations:

Beginning Balance $ 618,489.81 $ 618,489.81

Budgetary Financing Sources:

Appropriations received 3,186,000.00 - 3,186,000.00

Other adjustments (25,551) - (25,551)

Appropriations used (2,599,764.55) - (2,599,764.55)

Total Budgetary Financing Sources 560,684.13 - 560,684.13

Total Unexpended Appropriations 1,179,173.94 - 1,179,173.94

Net Position $ - $ 1,106,757.14 $ 1,106,757.14

THE NATIONAL COUNCIL ON DISABILITY

STATEMENT OF CHANGES IN NET POSITION

As Of And For The Years Ended September 30, 2015 and 2014

FY 2014 (PY)

 4
2015 2014

Budgetary Budgetary

BUDGETARY RESOURCES

Unobligated balance brought forward, October 1 $ 537,544.61 385,020.89 $ 

Unobligated balance brought forward, October 1, adjusted 537,544.61 385,020.89 

Recoveries of prior year unpaid obligations (unobligated balances) 157,412.52 19,873.29 

Other changes in unobligated balance (25,551.32) (42,595.25) 

Unobligated balance from prior year budget authority, net 669,405.81 362,298.93 

Appropriations (discretionary and mandatory) 3,186,000.00 3,250,000.00 

Spending authority from offsetting collections 3,848.50 26,167.41 

Total budgetary resources $ 3,859,254.31 3,638,466.34 $ 

STATUS OF BUDGETARY RESOURCES

Obligations incurred (Note 10) $ 3,474,233.42 3,391,678.04 $ 

Apportioned 279,195.57 94,703.11 

Unapportioned 105,825.32 152,085.19 

Unobligated balance brought forward, end of year 385,020.89 246,788.30 

Total budgetary resources $ 3,859,254.31 3,638,466.34 $ 

CHANGE IN OBLIGATED BALANCE

Unpaid obligations, brought forward, October 1 (gross) $ 465,017.08 932,967.78 $ 

Obligations incurred 3,474,233.42 3,391,678.04 

Outlays (gross) (-) (2,848,870.20) (3,340,270.96) 

Recoveries of prior year unpaid obligations (-) (157,412.52) (19,873.29) 

Unpaid obligations, end of year (Note 11) 932,967.78 964,501.57 

Obligated balance, start of year (net) 465,017.08 932,967.78 

Obligated balance, end of year (net) $ 932,967.78 964,501.57 $ 

BUDGET AUTHORITY AND OUTLAYS, NET

Budget authority, gross (discretionary and mandatory) $ 3,189,848.50 3,276,167.41 $ 

Actual offsetting collections (discretionary and mandatory) (-) (3,848.50) (26,167.41) 

Budget authority, net (discretionary and mandatory) 3,186,000.00 3,250,000.00 

Outlays, gross (discretionary and mandatory) 2,848,870.20 3,340,270.96 

Actual offsetting collections (discretionary and mandatory) (-) (3,848.50) (26,167.41) 

Outlays, net (discretionary and mandatory) 2,845,021.70 3,314,103.55 

Agency outlays, net (discretionary and mandatory) $ 2,845,021.70 3,314,103.55 $ 

THE NATIONAL COUNCIL ON DISABILITY

STATEMENT OF BUDGETARY RESOURCES

As Of And For The Years Ended September 30, 2015 and 2014

 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 nine members appointed by the President and Congress. 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, 2015, 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 2015. 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) 2015 and 

2014, NCD is accountable for general fund appropriations and no-year 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 13.2% 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. For FERS-RAE and FRAE employees, NCD 

contributes an amount equal to 11.1% 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 
9

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) 

Personnel Compensation and Benefits – (Continued) 

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 

Maintenance, repairs and minor renovations are expensed as incurred. Expenditures that 

materially increase values, change capacities, or extend useful lives are capitalized. 
11

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) 

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

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 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 
12

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 of 

results of operations. 

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 2015 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 2011, FY 2012, FY 

2013, and FY 2014 and FY 2015). The annual fund for FY 2010 is cancelled and the 

remaining fund balance of $42,595.25 is given back to US Treasury during fiscal year 

2014. 
13

A. Fund Balance with Treasury 2015 2014

Appropriated Fund 1,211,289.87 1,317,988.67 

B. Status of Fund Balance with Treasury

1) Unobligated Balance

a) Available 94,703.11 279,195.57 

b) Unavailable 152,085.19 105,825.32 

2) Obligated Balance not yet Disbursed 964,501.57 932,967.78 

Total 1,211,289.87 1,317,988.67 

NOTE 3 – ADVANCES AND PREPAYMENTS 

Advances and Prepayments represents advances to Government Publishing Office 

Deposit Accounts.

2015 2014

Deferred 87,253.76 89,000.00 

Total 87,253.76 89,000.00 

NOTE 4 – ACCOUNTS RECEIVABLE, NET 

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

current employees. 

2015 2014

Accounts Receivable - With the Public 18,966.02 17,558.83 

 
14

NOTE 5 – LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

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

resources. As of September 30, 2015, NCD showed liabilities covered by budgetary 

resources of $204,694.14 and liabilities not covered by budgetary resources of 

$89,830.11. As of September 30, 2014, NCD showed liabilities covered by budgetary 

resources of $227,814.73 and liabilities not covered by budgetary resources of 

$89,975.63. 

 

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

Accounts Payable of $156,781.29, Accrued Funded Payroll and Leave of $35,562.41, and 

Employer Contributions and Payroll Taxes Payable of $8,983.89. As of September 30, 

2014, liabilities covered by budgetary resources are composed of Accounts Payable of 

$186,656.21, Accrued Funded Payroll and Leave of $32,646.38, and Employer 

Contributions and Payroll Taxes Payable of $8,512.14. 

2015 2014

With the Public

Other (Unfunded leave liability) 89,830.11 89,975.63 

Total liabilities not covered by budgetary resources 89,830.11 89,975.63 

Total liabilities covered by budgetary resources 204,694.14 227,814.73 

Total Liabilities 294,524.25 317,790.36 

NOTE 6 – OTHER LIABILITIES 

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

Payroll and Leave of $35,262.41 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 $8,983.89. 

As of September 30, 2014, other liabilities with the public consist of Accrued Funded 

Payroll and Leave of $32,646.38, unfunded leave in the amount of $89,975.63, and 

employer contributions and payroll taxes payable – TSP of $918.52. Other 

Intragovernmental liabilities consist of employer contributions and payroll taxes payable 

of $7,593.62. 

With the Public Non-Current Current Total

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

2014 Other Liabilities 89,975.63 123,540.53 33,564.90 
15

Intragovernmental Non-Current Current Total

2015 Other Liabilities - 8,031.53 8,031.53 

2014 Other Liabilities - 7,593.62 7,593.62 

NOTE 7 - LEASES 

Entity as Lessee: 

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, 2016 263,859 

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 

 1,656,193
16

NOTE 8 – INTRAGOVERNMENTAL COSTS AND EXCHANCE REVENUE 

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

Total Total 

2015 2014

Program A

Intragovernmental costs 884,096.35 730,765.76 

Public costs 2,474,928.97 1,919,493.66 

Total Program A costs 3,359,025.32 2,650,259.42 

Total Program A 3,359,025.32 2,650,259.42 

NOTE 9 – 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. 

2015 2014

Direct

Category B 3,391,678.04 3,474,233.00 

 3,474,233.00 3,391,678.04 

 
17

NOTE 10 – UNDELIVERED ORDERS AT THE END OF THE PERIOD 

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

Accounts 

Payable

Unpaid Obligated Balance 

Net

2015 759,807.43 204,694.14 964,501.57 

2014 705,153.05 227,814.73 932,967.78 

NOTE 11 – 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 2015 

FY 2014 FY 2015 Change 

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

FY 2014 

FY 2013 FY 2014 Change 

Unfunded Annual Leave $92,463.10 $89,975.63 ($2,487.47) 

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. 
18

NOTE 12 – 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., nonbudgetary) 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 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)): 

2015 2014

Budgetary Resources Obligated 3,391,678.04 3,474,233.42 

Spending Authority from Recoveries and Offsetting 

Collections (161,261.02) (46,040.70) 

Distributed Offsetting Receipts - - 

Imputed Financing from Costs Absorbed by Others 67,848.83 69,541.77 

Changes in Budgetary Resources Obligated for Goods, 

Services, and Benefits Ordered but Not Yet Provided (713,207.85) (52,908.14) 

Other Resources or adjustments - - 

Resources that Finance the Acquisition of Assets (1,407.19) (16,559.43) 

Increase in Annual Leave Liability (145.52) (2,487.47) 

Net Cost of Operations 3,359,025.32 2,650,259.42 
19

NOTE 13 – SUBSEQUENT EVENTS 

In preparing these financial statements, management has evaluated events and 

transactions for potential recognition or disclosure through February 1, 2016, which is the 

date the financial statements were available to be issued.