FMCS – 2021 Financial Statement Audit 

Contract: GS23F0111L/ FMCS-2018-TO-0001

Federal Mediation and Conciliation Service (FMCS) 

Fiscal Year 2021 Financial Statement Audit

Final Independent Auditors’ Report

Submitted for review and acceptance to:

Terry Lee

Contracting Officer's Representative (COR) 

Federal Mediation and Conciliation Service 

250 E St SW

Washington, DC 20427

Submitted by:

Jason L. Allmond CPA, CGFM, CISA, CISM 

Member

Allmond & Company, LLC 

7501 Forbes Blvd, Suite 200

Lanham, MD 20706

301-918-8200

jallmond@allmondcpa.com

Final Independent Auditors’ Report

Prepared under contract to the Federal Mediation and Conciliation Service (FMCS) to provide financial auditing 

services
FEDERAL MEDIATION AND CONCILIATION SERVICE

AUDIT REPORT 

SEPTEMBER 30, 2021

ALLMOND & COMPANY, LLC

Certified Public Accountants 

7501 Forbes Blvd, Suite 200

Lanham, Maryland 20706

(301) 918-8200
1

Independent Auditors’ Report

The Director

Federal Mediation and Conciliation Service:

Report on the Financial Statements

We have audited the accompanying financial statements of the Federal Mediation and Conciliation 

Service (FMCS), which comprise the balance sheets as of September 30, 2021 and 2020; the related 

statements of net cost, changes in net position, and budgetary resources for the fiscal years ended; and the 

related notes to the financial statements (hereinafter referred to as the financial statements).

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in 

accordance with accounting principles generally accepted in the United States of America; this 

responsibility includes the design, implementation, and maintenance of internal control relevant to the 

preparation and fair presentation of financial statements that are free from material misstatement, whether 

due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the fiscal years 2021 and 2020 financial statements of 

FMCS based on our audits. We conducted our audits in accordance with auditing standards generally 

accepted in the United States of America; the standards applicable to financial audits contained in 

Government Auditing Standards issued by the Comptroller General of the United States; and the Office of 

Management and Budget (OMB) Bulletin No. 21-04, Audit Requirements for Federal Financial 

Statements. Those standards and OMB Bulletin No. 21-04 require that we plan and perform the audit to 

obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in 

the financial statements. The procedures selected depend on the auditors' judgment, including the 

assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. 

In making those risk assessments, the auditor considers internal control relevant to the entity's preparation 

and fair presentation of the financial statements in order to design audit procedures that are appropriate in 

the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity' s 

internal control. Accordingly, we express no such opinion.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness 

of significant accounting estimates made by management, as well as evaluating the overall presentation of 

the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 

our audit opinion.
2

Independent Auditors’ Report

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

financial position of the Federal Mediation and Conciliation Service as of September 30, 2021 and 2020, 

and its net cost of operations, changes in net position, and budgetary resources for the years then ended in 

accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

The information in the Message from the Director, Management Discussion and Analysis section, and 

Other Accompanying Information section of this report is presented to supplement the basic financial 

statements. Such information, although not a part of the basic financial statements, is required by the 

Federal Accounting Standards Advisory Board. We have applied certain limited procedures, which 

consisted principally of inquiries of management regarding the methods of preparing the information and 

comparing the information for consistency with management’s responses to our inquiries, the basic 

financial statements, and other knowledge we obtained during our audit of FMCS’s financial statements. 

However, we did not audit this information and, accordingly, we express no opinion on it.

Other Reporting Required by Government Auditing Standards

Internal Control over Financial Reporting

In planning and performing our audit of FMCS’ financial statements as of and for the year ended 

September 30, 2021, in accordance with generally accepted government auditing standards, we 

considered FMCS’ internal control over financial reporting as a basis for designing audit procedures that 

are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, 

but not for the purpose of expressing an opinion on the effectiveness of FMCS’ internal control over 

financial reporting. Accordingly, we do not express an opinion on FMCS’ internal controls over financial 

reporting. We limited internal control testing to those necessary to achieve the objectives described in 

OMB Bulletin No. 21-04. We did not test all internal control relevant to operating objectives as broadly 

defined by the Federal Managers’ Financial Integrity Act of 1982.

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, or 

detect and correct misstatement on a timely basis. A material weakness is a deficiency, or combination of 

deficiencies, such that there is a reasonable possibility that a material misstatement of the entity’s 

financial statements will not be prevented, or detected and corrected, on a timely basis. A significant 

deficiency is a deficiency or a combination of deficiencies, in internal control that is less severe than a 

material weakness yet important enough to merit the attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose as described in 

the first paragraph of this section, and was not designed to identify all deficiencies in internal control over 

financial reporting that might be material weaknesses or significant deficiencies and therefore material 

weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during 

our fiscal year 2021 audit we did not identify any deficiencies in internal control over financial reporting 

that we considered to be a material weakness, as defined above. However, material weaknesses may exist 

that have not been identified.
3

Independent Auditors’ Report

Compliance and Other Matters Specific to the Financial Statements

As part of obtaining reasonable assurance about whether FMCS’ fiscal year 2021 financial statements are 

free of material misstatements, we performed tests of FMCS’ compliance with certain provisions of 

applicable laws, regulations, contracts, and grant agreements, which noncompliance could have a direct 

and material effect on the determination of material amounts and disclosures in FMCS’s financial 

statements, and certain provisions of other laws specified in OMB Bulletin No. 21-04. However, 

providing an opinion on compliance with those provisions was not an objective of our audit, and 

accordingly, we do not express such an opinion.

The results of our tests of compliance as described in the preceding paragraph disclosed no instances of 

noncompliance or other matters that are required to be reported herein under Government Auditing 

Standards or OMB Bulletin No. 21-04.

Purpose of the Other Reporting Required by Government Auditing Standards

The purpose of the communication provided in the Other Reporting Required by Government Auditing 

Standards section is solely to describe the scope of our testing of internal control and compliance with 

selected provisions of applicable laws, regulations, contracts, and grant agreements, and the results of that 

testing, and not to provide an opinion on the effectiveness of the FMCS’s internal control or on 

compliance. This communication is an integral part of an audit performed in accordance with U.S. 

generally accepted government auditing standards in considering internal controls and compliance with 

laws, regulations, contracts, and grant agreements which could have a material effect FMCS’ financial 

statements. Accordingly, this communication is not suitable for any other purpose.

Allmond & Company, LLC

Lanham, MD

November 12, 2021
FEDERAL MEDIATION AND CONCILIATION SERVICE

SEPTEMBER 30, 2021 AND 2020

FINANCIAL STATEMENTS

FOR THE YEARS ENDED

4
TABLE OF CONTENTS

BALANCE SHEET...................................................................................................... 6

STATEMENT OF NET COST.......................................................................................... 7

STATEMENT OF CHANGES IN NET POSITION............................................................... 8

STATEMENT OF BUDGETARY RESOURCES.................................................................. 9

NOTES TO THE FINANCIAL STATEMENTS..................................................................... 10-21

FEDERAL MEDIATION AND CONCILIATION SERVICE

FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2021 AND 2020

5
2021 2020

Intragovernmental:

Fund Balance with Treasury (Note 2) 13,972,608 $ 12,690,845 $ 

Accounts Receivable, Net (Note 3) 283,965 206,724 

Total Intragovernmental 14,256,573 12,897,569

With the Public:

Accounts Receivable, Net (Note 3) 5,469 10,626 

General Property, Plant, and Equipment, Net (Note 4) 300,152 326,432 

Total With the Public 305,621 337,058 

Total Assets $ 14,562,194 $ 13,234,627

Liabilities (Note 5):

Intragovernmental:

Other Liabilities (Note 6) $ 626,998 $ 664,108

Total Intragovernmental 626,998 664,108 

With the Public:

Accounts Payable (Note 5) 223,578 204,339 

Federal Employee and Veteran Benefits Payable 4,378,563 4,774,674

Other Liabilities (Note 6) 1,464,453 1,559,579

Total With the Public 6,066,594 6,538,592

Total Liabilities $ 7,202,700 6,693,592 $ 

Net Position:

Unexpended Appropriations - Funds from Other than Dedicated Collections $ 8,284,357 $ 7,368,885

Cumulative Results of Operations - Funds from Other than Dedicated Collections (415,755) (1,336,958)

Total Cumulative Results of Operations (415,755) (1,336,958)

Total Net Position 7,868,602 6,031,927

Total Liabilities and Net Position $ 13,234,627 14,562,194 $ 

FEDERAL MEDIATION AND CONCILIATION SERVICE

BALANCE SHEET

AS OF SEPTEMBER 30, 2021 AND 2020

(In Dollars)

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

6
2021 2020

Gross Program Costs:

Gross Costs 49,562,728 $ 50,998,860 $ 

Less: Earned Revenue (2,177,264) (2,173,278) 

Net Cost of Operations $ 47,385,464 $ 48,825,582

FEDERAL MEDIATION AND CONCILIATION SERVICE

STATEMENT OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2021 AND 2020

(In Dollars)

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

7
2021 2020

Unexpended Appropriations:

Beginning Balances $ 7,368,885 $ 7,635,205

Appropriations Received 48,600,000 47,200,000 

Other Adjustments (1,025,094) (150,896) 

Appropriations Used (46,659,434) (47,315,424)

Net Change in Unexpended Appropriations 915,472 (266,320) 

Total Unexpended Appropriations - Ending $ 8,284,357 $ 7,368,885

Cumulative Results of Operations:

Beginning Balances $ (1,336,958) $ (1,383,743)

Appropriations Used 46,659,434 47,315,424 

Imputed Financing (Note 8) 1,647,233 1,556,943 

Net Cost of Operations (47,385,464) (48,825,582)

Net Change in Cumulative Results of Operations 921,203 46,785 

Cumulative Results of Operations - Ending $ (415,755) $ (1,336,958)

Net Position $ 7,868,602 $ 6,031,927

FEDERAL MEDIATION AND CONCILIATION SERVICE

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2021 AND 2020

(In Dollars)

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

8
2021 2020

Budgetary Resources:

Unobligated balance from prior year budget authority, net (Note 9) $ 6,740,113 $ 6,955,844

Appropriations 48,600,000 47,200,000

Spending authority from offsetting collections 3,231,407 2,594,624

Total Budgetary Resources $ 56,750,468 58,571,520 $ 

Status of Budgetary Resources:

New obligations and upward adjustments (total) (Note 10) $ 48,502,747 $ 49,215,749

Unobligated balance, end of year:

 Apportioned, unexpired accounts 2,729,910 1,201,633

 Unapportioned, unexpired accounts 4,353,546 2,522,000

Unexpired unobligated balance, end of year 7,083,456 3,723,633

Expired unobligated balance, end of year 2,985,317 3,811,086

Unobligated balance, end of year (total) 10,068,773 7,534,719

Total Budgetary Resources $ 56,750,468 58,571,520 $ 

Outlays, Net and Disbursements, Net:

Outlays, net (total) $ 46,293,144 $ 46,535,330

Agency outlays, net $ 46,535,330 46,293,144 $ 

FEDERAL MEDIATION AND CONCILIATION SERVICE

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2021 AND 2020

(In Dollars)

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

9
FEDERAL MEDIATION AND CONCILIATION SERVICE 

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

A. Reporting Entity

The Federal Mediation and Conciliation Service (the FMCS) is an independent Federal agency 

whose primary mission is to prevent or minimize labor-management disputes affecting interstate 

commerce by providing mediation, conciliation, and voluntary arbitration. These activities are 

performed in both the private and public sectors, except for the railroad and airline industries, which 

are covered by the Railway Labor Act and the National Mediation Board, respectively. As of 

September 30, 2021, the FMCS consisted of a national office, 8 district offices, and 9 field offices. 

The FMCS reporting entity is comprised of General Funds and General Miscellaneous Receipts. 

General Funds are accounts used to record financial transactions arising under congressional 

appropriations or other authorizations to spend general revenues. The FMCS manages Operations 

and Facilities, Engineering and Development General Fund accounts. 

General Fund Miscellaneous Receipts are accounts established for receipts of non-recurring 

activity, such as fines, penalties, fees and other miscellaneous receipts for services and benefits. 

The FMCS has rights and ownership of all assets reported in these financial statements. The 

reporting entity is a component of the U.S Government. For this reason, some of the assets and 

liabilities reported by the entity may be eliminated for Government-wide reporting because they 

are offset by assets and liabilities of another U.S. Government entity. These financial statements 

should be read with the realization that they are for a component of the U.S. Government, a 

sovereign entity. The FMCS does not possess any non-entity assets. 

B. Basis of Presentation

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

operations of the FMCS. The Balance Sheet presents the financial position of the agency. The 

Statement of Net Cost presents the agency’s operating results; the Statement of Changes in Net 

Position displays the changes in the agency’s equity accounts. The Statement of Budgetary 

Resources presents the sources, status, and uses of the agency’s resources and follows the rules for 

the Budget of the United States Government.

The statements are a requirement of the Chief Financial Officers Act of 1990, the Government 

Management Reform Act of 1994 and the Accountability of Tax Dollars Act of 2002. They have 

been prepared from, and are fully supported by, the books and records of the FMCS in accordance 

with the hierarchy of accounting principles generally accepted in the United States of America, 

standards issued by the Federal Accounting Standards Advisory Board (FASAB), Office of 

Management and Budget (OMB) Circular A-136, Financial Reporting Requirements, as amended,

and the FMCS accounting policies which are summarized in this note. These statements, with the 

exception of the Statement of Budgetary Resources, are different from financial management 

10
reports, which are also prepared pursuant to OMB directives that are used to monitor and control 

FMCS’s use of budgetary resources. The financial statements and associated notes are presented 

on a comparative basis. Unless specified otherwise, all amounts are presented in dollars. 

C. Basis of Accounting

Transactions are recorded on both an accrual accounting basis and a budgetary basis. Under the 

accrual method, revenues are recognized when earned, and expenses are recognized when a liability 

is incurred, without regard to receipt or payment of cash. Budgetary accounting facilitates 

compliance with legal requirements on the use of federal funds.

D. Fund Balance with Treasury

FBWT is an asset of a reporting entity and a liability of the General Fund. It is the aggregate amount 

of the FMCS’s funds with Treasury in expenditure, receipt, and deposit fund accounts. 

Appropriated funds recorded in expenditure accounts are available to pay current liabilities and 

finance authorized purchases. 

The FMCS does not maintain bank accounts of its own, has no disbursing authority, and does not 

maintain cash held outside of Treasury. Funds are disbursed for the agency on demand. Foreign 

currency payments are made either by Treasury or the Department of State and are reported by the 

FMCS in the U.S. dollar equivalents 

E. Accounts Receivable

Accounts receivable consists of amounts owed to the FMCS by other federal agencies and the 

general public. Amounts due from federal agencies are considered fully collectible. Accounts 

receivable from the public include reimbursements from employees. An allowance for 

uncollectible accounts receivable from the public is established when, based upon a review of 

outstanding accounts and the failure of all collection efforts, management determines that collection 

is unlikely to occur considering the debtor’s ability to pay. 

F. Property, Equipment, and Software

Property, equipment, and software represent furniture, fixtures, equipment, and information 

technology hardware and software which are recorded at original acquisition cost and are 

depreciated or amortized using the straight-line method over their estimated useful lives. Major 

alterations and renovations are capitalized, while maintenance and repair costs are expensed as 

incurred. The FMCS’s capitalization threshold is $5,000 for individual purchases and a total useful 

life exceeding one year. Property, equipment, and software acquisitions that do not meet the 

capitalization criteria are expensed upon receipt. Applicable standard governmental guidelines 

regulate the disposal and convertibility of agency property, equipment, and software. Calculating 

depreciation is on an estimated useful life of five (5) years for software, equipment, and capital 

lease assets. 

G. Liabilities

Liabilities represent the amount of funds likely to be paid by the FMCS as a result of transactions 

or events that have already occurred. 

The FMCS reports its liabilities under two categories, Intragovernmental and With the Public. 

Intragovernmental liabilities represent funds owed to another government agency. Liabilities with 

11
the Public represent funds owed to any entity or person that is not a federal agency, including 

private sector firms and federal employees. Each of these categories may include liabilities that 

are covered by budgetary resources and liabilities not covered by budgetary resources. 

Liabilities covered by budgetary resources are liabilities funded by a current appropriation or other 

funding source. These consist of accounts payable and accrued payroll and benefits. Accounts 

payable represent amounts owed to another entity for goods ordered and received and for services 

rendered except for employees. Accrued payroll and benefits represent payroll costs earned by 

employees during the fiscal year which are not paid until the next fiscal year. 

Liabilities not covered by budgetary resources are liabilities that are not funded by any current 

appropriation or other funding source. These liabilities consist of accrued annual leave, actuarial 

FECA, and the amounts due to Treasury for collection and accounts receivable of civil penalties 

and FOIA request fees. 

H. Annual, Sick, and Other Leave

Annual leave is accrued as it is earned, and the accrual is reduced as leave is taken. The balance in 

the accrued leave account is adjusted to reflect current pay rates. Liabilities associated with other 

types of vested leave, including compensatory, restored leave, and sick leave in certain 

circumstances, are accrued at year-end, based on latest pay rates and unused hours of leave. 

Funding will be obtained from future financing sources to the extent that current or prior year 

appropriations are not available to fund annual and other types of vested leave earned but not taken. 

Nonvested leave is expensed when used. Any liability for sick leave that is accrued but not taken 

by a Civil Service Retirement System (CSRS)-covered employee is transferred to the Office of 

Personnel Management (OPM) upon the retirement of that individual. Credit is given for sick leave 

balances in the computation of annuities upon the retirement of Federal Employees Retirement 

System (FERS)-covered employees. 

I. Accrued and Actuarial Workers’ Compensation

The Federal Employees' Compensation Act (FECA) administered by the U.S. Department of Labor 

(DOL) addresses all claims brought by the FMCS employees for on-the-job injuries. The DOL 

bills each agency annually as its claims are paid, but payment of these bills is deferred for two years 

to allow for funding through the budget process. Similarly, employees that the FMCS terminates 

without cause may receive unemployment compensation benefits under the unemployment 

insurance program also administered by the DOL, which bills each agency quarterly for paid 

claims. Future appropriations will be used for the reimbursement to DOL. The liability consists of 

(1) the net present value of estimated future payments calculated by the DOL (Only include if you

have FECA actuarial liability), and (2) the unreimbursed cost paid by DOL for compensation to

recipients under the FECA.

J. Retirement Plans

The FMCS employees participate in either the CSRS or the FERS. The employees who participate 

in CSRS are beneficiaries of the FMCS matching contribution, equal to seven percent of pay, 

distributed to their annuity account in the Civil Service Retirement and Disability Fund. 

Prior to December 31, 1983, all employees were covered under the CSRS program. From January 

1, 1984 through December 31, 1986, employees had the option of remaining under CSRS or joining 

FERS and Social Security. Employees hired as of January 1, 1987 are automatically covered by 

12
the FERS program. Both CSRS and FERS employees may participate in the federal Thrift Savings 

Plan (TSP). FERS employees receive an automatic agency contribution equal to one percent of 

pay and the FMCS matches any employee contribution up to an additional four percent of pay. For 

FERS participants, the FMCS also contributes the employer’s matching share of Social Security. 

FERS employees and certain CSRS reinstatement employees are eligible to participate in the Social 

Security program after retirement. In these instances, the FMCS remits the employer’s share of the 

required contribution. 

The FMCS recognizes the imputed cost of pension and other retirement benefits during the 

employees’ active years of service. OPM actuaries determine pension cost factors by calculating 

the value of pension benefits expected to be paid in the future and communicate these factors to the 

FMCS for current period expense reporting. OPM also provides information regarding the full cost 

of health and life insurance benefits. The FMCS recognized the offsetting revenue as imputed 

financing sources to the extent these expenses will be paid by OPM. 

The FMCS does not report on its financial statements information pertaining to the retirement plans 

covering its employees. Reporting amounts such as plan assets, accumulated plan benefits, and 

related unfunded liabilities, if any, is the responsibility of the OPM, as the administrator. 

K. Other Post-Employment Benefits

The FMCS employees eligible to participate in the Federal Employees' Health Benefits Plan 

(FEHBP) and the Federal Employees' Group Life Insurance Program (FEGLIP) may continue to 

participate in these programs after their retirement. The OPM has provided the FMCS with certain 

cost factors that estimate the true cost of providing the post-retirement benefit to current employees. 

The FMCS recognizes a current cost for these and Other Retirement Benefits (ORB) at the time the 

employee's services are rendered. The ORB expense is financed by OPM, and offset by the FMCS 

through the recognition of an imputed financing source. 

L. Use of Estimates

The preparation of the accompanying financial statements in accordance with generally accepted 

accounting principles requires management to make certain estimates and assumptions that affect 

the reported amounts of assets, liabilities, revenues, and expenses. Actual results could differ from 

those estimates. 

M. Reclassification

Certain fiscal year 2020 balances have been reclassified, retitled, or combined with other financial 

statement line items for consistency with the current year presentation. 

N. Classified Activities

Accounting standards require all reporting entities to disclose that accounting standards allow 

certain presentations and disclosures to be modified, if needed, to prevent the disclosure of 

classified information. 

13
NOTE 2. FUND BALANCE WITH TREASURY

Fund Balance with Treasury account balances as of September 30, 2021 and 2020, were as follows: 

No discrepancies exist between the Fund Balance reflected on the Balance Sheet and the balances 

in the Treasury accounts.

The available unobligated fund balances represent the current-period amount available for 

obligation or commitment. At the start of the next fiscal year, this amount will become part of the 

unavailable balance as described in the following paragraph. 

The unavailable unobligated fund balances represent the amount of appropriations for which the 

period of availability for obligation has expired. These balances are available for upward 

adjustments of obligations incurred only during the period for which the appropriation was 

available for obligation or for paying claims attributable to the appropriations. 

The obligated balance not yet disbursed includes accounts payable, accrued expenses, and 

undelivered orders that have reduced unexpended appropriations but have not yet decreased the 

fund balance on hand (see also Note 11). 

NOTE 3. ACCOUNTS RECEIVABLE, NET 

Accounts receivable balances as of September 30, 2021 and 2020, were as follows: 

The accounts receivable is primarily made up of amounts due from federal government departments 

and other agencies. 

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

no material uncollectible accounts as of September 30, 2021 and 2020. 

2021 2020

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 2,729,909 $ 1,201,633 

 Unavailable 7,373,994 6,368,217 

Obligated Balance Not Yet Disbursed 3,868,705 5,120,995 

Total $ 13,972,608 $ 12,690,845 

2021 2020

Intragovernmental

Accounts Receivable $ 283,965 $ 206,724

Total Intragovernmental Accounts Receivable $ 283,965 $ 206,724

With the Public

Accounts Receivable $ 5,469 $ 10,626

Total Public Accounts Receivable $ 5,469 $ 10,626

Total Accounts Receivable $ 289,434 $ 217,350

14
NOTE 4. GENERAL PROPERTY, PLANT AND EQUIPMENT, NET 

Schedule of General Property, Plant and Equipment, Net as of September 30, 2021: 

Schedule of General Property, Plant and Equipment, Net as of September 30, 2020: 

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

The liabilities for the FMCS as of September 30, 2021 and 2020, include liabilities not covered by 

budgetary resources. Congressional action is needed before budgetary resources can be provided. 

Although future appropriations to fund these liabilities are likely and anticipated, it is not certain 

that appropriations will be enacted to fund these liabilities. 

FECA and the Unemployment Insurance liabilities represent the unfunded liability for actual 

workers compensation claims and unemployment benefits paid on the FMCS’s behalf and payable 

to the DOL. The FMCS also records an actuarial liability for future workers compensation claims 

based on the liability to benefits paid (LBP) ratio provided by DOL and multiplied by the average 

of benefits paid over three years.

Unfunded leave represents a liability for earned leave and is reduced when leave is taken. The 

balance in the accrued annual leave account is reviewed quarterly and adjusted as needed to 

accurately reflect the liability at current pay rates and leave balances. Accrued annual leave is paid 

from future funding sources and, accordingly, is reflected as a liability not covered by budgetary 

resources. Sick and other leave is expensed as taken. 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Furniture & Equipment $ 931,530 $ 817,019 $ 114,511

Software 77,918 2,128 75,790 

Construction-in-Progress 82,887 N/A 82,887

Software-in-Development 26,964 N/A 26,964

Total $ 1,119,299 $ 819,147 $ 300,152

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Furniture & Equipment $ 1,022,888 $ 841,700 $ 181,188

Construction-in-Progress 145,244 N/A 145,244 

Total $ 1,168,132 $ 841,700 $ 326,432

2021 2020

Intragovernmental – FECA $ 150,007 $ 246,417

Unfunded Leave 3,005,271 3,057,139 

Actuarial FECA 1,304,840 1,654,305 

Total Liabilities Not Covered by Budgetary Resources $ 4,460,118 $ 4,957,861

Total Liabilities Covered by Budgetary Resources 2,233,474 2,244,839 

Total Liabilities $ 6,693,592 $ 7,202,700

15
NOTE 6. OTHER LIABILITIES

Other liabilities account balances as of September 30, 2021 were as follows: 

Other liabilities account balances as of September 30, 2020 were as follows: 

NOTE 7. LEASES 

The FMCS leases office space for headquarters operations in Washington, D.C. and for district 

and field operations. The lease agreements expire at various dates, the latest being 2034. Assets 

held under these leases consist primarily of offices. All office space occupied by the FMCS is 

leased by the General Services Administration (GSA). Finally, the only non-cancellable GSA 

leases in the portfolio are Collierville, TN and Portsmouth, VA. 

Current Non Current Total

Intragovernmental

Employer Contributions and Payroll Taxes Payable (without reciprocals) $ 137,747 $ - $ 137,747

Employer Contributions and Payroll Taxes Payable 339,244 - 339,244 

Unfunded FECA Liability 150,007 - 150,007 

Total Intragovernmental Other Liabilities $ 626,998 $ - $ 626,998

With the Public

Accrued Funded Payroll and Leave $ 1,464,050 $ - $ 1,464,050

Other Liabilities w/Related Budgetary Obligations 403 - 403 

Total Public Other Liabilities $ 1,464,453 $ - $ 1,464,453

Total Other Liabilities $ 2,091,451 $ - $ 2,091,451

Current Non Current Total

Intragovernmental

Employer Contributions and Payroll Taxes Payable (without reciprocals) $ 113,955 $ - $ 113,955

Employer Contributions and Payroll Taxes Payable 303,736 - 303,736 

Unfunded FECA Liability 246,417 - 246,417 

Total Intragovernmental Other Liabilities $ 664,108 $ - $ 664,108

With the Public

Accrued Funded Payroll and Leave $ 1,554,382 $ - $ 1,554,382

Other Liabilities w/Related Budgetary Obligations 5,197 - 5,197

Total Public Other Liabilities $ 1,559,579 $ - $ 1,559,579

Total Other Liabilities $ 2,223,687 $ - $ 2,223,687

16
Future estimated minimum lease payments for the fiscal years ended September 30 are as follows: 

Due to the office closure of the Hinsdale office in March 2021, this will affect the forecasting 

numbers starting in FY2022.

The Glendale office is currently in an ongoing procurement process that will be completed in 

FY2022. Therefore, the Glendale expiration date and annual rent amount will be updated and will 

reflect new annual rent amounts beginning in FY2022. 

NOTE 8. INTER-ENTITY COSTS

The FMCS recognizes certain inter-entity costs for goods and services that are received from other 

federal entities at no cost or at a cost less than the full cost. Certain costs of the providing entity 

that are not fully reimbursed are recognized as imputed cost and are offset by imputed revenue. 

Such imputed costs and revenues relate to employee benefits and claims to be settled by the 

Treasury Judgement Fund. The FMCS recognizes as inter-entity costs the amount of accrued 

pension and post-retirement benefit expenses for current employees. The assets and liabilities 

associated with such benefits are the responsibility of the administering agency, OPM. For the 

periods ended September 30, 2021 and 2020, respectively, inter-entity costs were as follows: 

NOTE 9. NET ADJUSTMENTS TO UNOBLIGATED BALANCE, BROUGHT 

FORWARD, OCTOBER 1

The Unobligated Balance Brought Forward from the prior fiscal year has been adjusted for 

recoveries of prior year paid and unpaid obligations and other changes such as canceled authority. 

The Adjustments to Unobligated Balance Brought Forward, October 1, as of September 30, 2021, 

and 2020, consisted of the following: 

Fiscal Year Office Space

2022 $ 3,975,347

2023 3,771,626

2024 3,786,471

2025 3,758,060

2026 3,609,137

2027 thru 2034 15,885,617

Total Future Payments $ 34,786,258

2021 2020

Office of Personnel Management $ 1,647,233 $ 1,556,943 

Total Imputed Financing Sources $ 1,647,233 $ 1,556,943 

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NOTE 10. APPORTIONMENT CATEGORIES OF NEW OBLIGATIONS AND UPWARD 

ADJUSTMENTS

New obligations and upward adjustments incurred and reported in the Statement of Budgetary 

Resources in 2021 and 2020 consisted of the following: 

Category A apportionments distribute budgetary resources by fiscal quarters.

NOTE 11. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

As of September 30, 2021, budgetary resources obligated for undelivered orders were as follows: 

As of September 30, 2020, budgetary resources obligated for undelivered orders were as follows:

2021 2020

Unobligated Balance Brought Forward From Prior Year, October 1 $ 7,534,719 $ 7,019,915 

Recoveries of Prior Year Obligations 230,488 86,825 

Other Changes in Unobligated Balances (1,025,094) (150,896)

Unobligated Balance From Prior Year Budget Authority, Net (Discretionary and Mandatory) $ 6,740,113 $ 6,955,844 

2021 2020

Direct Obligations, Category A $ 46,794,794 $ 47,595,948

Reimbursable Obligations, Category A 1,707,953 1,619,801 

Total New Obligations and Upward Adjustments $ 48,502,747 $ 49,215,749

Federal Non-Federal Total

Unpaid Undelivered Orders $ 201,482 $ 3,197,202 $ 3,398,684

Total Undelivered Orders $ 201,482 $ 3,197,202 $ 3,398,684

Federal Non-Federal Total

Unpaid Undelivered Orders $ 146,279 $ 3,367,197 $ 3,513,476

Total Undelivered Orders $ 146,279 $ 3,367,197 $ 3,513,476

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NOTE 12. EXPLANATION OF DIFFERENCES BETWEEN THE SBR AND THE 

BUDGET OF THE U.S. GOVERNMENT 

The President’s Budget that will include fiscal year 2021 actual budgetary execution information 

has not yet been published. The President’s Budget is scheduled for publication in February 2022 

and can be found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2022 Budget of 

the United States Government, with the "Actual" column completed for 2020, has been reconciled 

to the Statement of Budgetary Resources and there were no material differences. 

In Millions

New Obligations Distributed

Budgetary & Upward Offsetting Net

Resources Adjustments (Total) Receipts Outlays

Combined Statement of Budgetary Resources 57 $ 49 $ -$ 47$ 

Unobligated Balance Not Available (4) - - - 

Budget of the U.S. Government $ 53 $ 49 47$ 

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NOTE 13. RECONCILIATION OF NET COST TO NET OUTLAYS 

The reconciliation of net outlays, presented on a budgetary basis, and the net cost, presented on an 

accrual basis, provides an explanation of the relationship between budgetary and financial 

accounting information. 

Reconciliation of Net Cost to Net Outlays as of September 30, 2021: 

Intragovernmental With the Public Total 

$ 14,190,949 $ 33,194,515 $ 47,385,464

Property, Plant, and Equipment Depreciation Expense - (133,303) (133,303)

Property, Plant, and Equipment Disposals & Revaluations - (1,199) (1,199)

Increase/(Decrease) in Assets:

Accounts Receivable, Net 77,241 (5,157) 72,084 

(Increase)/Decrease in Liabilities:

Accounts Payable - (19,239) (19,239)

Federal Employee and Veteran Benefits Payable - 396,111 396,111

Other Liabilities 37,111 95,126 132,237

Financing Sources:

Imputed Cost (1,647,233) (1, - 647,233)

$ (1,532,881) $ 332,339 $ (1,200,542)

Acquisition of Capital Assets - 134,322 134,322

$ - $ 134,322 $ 134,322

$ 12,658,068 $ 33,661,176 $ 46,319,244

$ 46,293,144

RECONCILIATION OF NET COST TO NET OUTLAYS

BUDGET AND ACCRUAL RECONCILIATION

FOR THE YEARS ENDED SEPTEMBER 30, 2021

(In Dollars)

Components of Net Cost Not Part of the Budgetary Outlays

Total Net Outlays (Calculated Total) 

Net Operating Cost (SNC)

Total Components of Net Operating Cost Not Part of the Budgetary Outlays

Components of the Budget Outlays That Are Not Part of Net Operating Cost

Total Components of the Budget Outlays That Are Not Part of Net Operating Cost

Budgetary Agency Outlays, Net (SBR 4210)

Budgetary Agency Outlays, Net

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Reconciliation of Net Cost to Net Outlays as of September 30, 2020: 

Intragovernmental With the Public Total 

Net Operating Cost (SNC) $ 13,930,222 $ 34,895,360 $ 48,825,582

Property, Plant, and Equipment Depreciation Expense - (125,904) (125,904) 

Other - Conversion related fixed asset reclassification - 16,406 16,406 

Increase/(Decrease) in Assets:

Accounts Receivable, Net 188,150 10,626 198,776 

(Increase)/Decrease in Liabilities:

Accounts Payable - (35,761) (35,761)

Federal Employee and Veteran Benefits Payable - (489,546) (489,546) 

Other Liabilities (30,362) (393,636) (423,998) 

Financing Sources:

Imputed Cost (1,556,943) - (1,556,943) 

$ (1,399,155) $ (1,017,815) $ (2,416,970)

Acquisition of Capital Assets - 126,718 126,718 

$ - $ 126,718 $ 126,718

$ 12,531,067 $ 34,004,263 $ 46,535,330

$ 46,535,330

BUDGET AND ACCRUAL RECONCILIATION

FOR THE YEARS ENDED SEPTEMBER 30, 2020

(In Dollars)

Budgetary Agency Outlays, Net 

Components of Net Cost Not Part of the Budgetary Outlays

Total Components of Net Operating Cost Not Part of the Budgetary Outlays

Components of the Budget Outlays That Are Not Part of Net Operating Cost

Total Components of the Budget Outlays That Are Not Part of Net Operating Cost

Budgetary Agency Outlays, Net (SBR 4210)

Total Net Outlays (Calculated Total) 

RECONCILIATION OF NET COST TO NET OUTLAYS

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