Financial Statements Analysis and Summary
KPMG LLP issued an unqualified “clean” opinion on GSA’s FY 2013 financial statements. Agency management is accountable for the integrity of the financial information presented in the financial statements. The financial statements and financial data presented in this report have been prepared from GSA accounting records in conformity with generally accepted accounting principles (GAAP) as prescribed by the Federal Accounting Standards Advisory Board (FASAB). The Consolidating Statements of Net Cost presents, by major program and activity, the revenues and expenses incurred to provide goods and services to our customers.
Consolidated Financial Results
GSA assets include federal buildings, motor vehicles, and office equipment (Property and Equipment); cash balances held in the U.S. Treasury, Fund Balance with Treasury (FBWT); and debts owed to GSA mainly from other federal agencies, primarily for sales transactions or uncollected rent (Accounts Receivable). In FY 2014 GSA reported Total Assets of $39.0 billion compared to FY 2013 Total Assets of $40.3 billion, a net decrease of more than $1.2 billion. Significant changes in assets include: FBWT decreased by $1.3 billion, due primarily to the early retirement of Federal Buildings Fund (FBF) debt, which reduced FBWT by $2.1 billion, offset by positive cash flow from other FBF activities of $955 million; and reductions of $284 million in the Acquisition Services Fund (ASF) resulting mostly from reduced net operating results, and increased capital acquisitions in the motor vehicle fleet. Also, the value of GSA-owned buildings increased by $2.0 billion. This increase was mostly due to the transfer of approximately $1.9 billion from Construction-in-Progress (CIP), to the Buildings account. Much of this amount was related to FBF American Recovery and Reinvestment Act (ARRA) construction projects.
GSA liabilities are primarily amounts owed to commercial vendors for goods and services received but not yet paid (Accounts Payable), amounts GSA owes to other federal entities, and long-term estimates of future environmental remediation costs. In FY 2014, Total Liabilities were $6.8 billion; a net decrease of $839 million compared to FY 2013 Total Liabilities of $7.6 billion. This decrease was mostly attributable to the retirement of $1.7 billion in Intragovernmental Debt, offset by a $507 million increase in Environmental and Disposal Liabilities due to changes in long-term estimates for asbestos and other environmental cleanup costs.
The Consolidating Statements of Net Cost presents, by major program and activity, the revenues and expenses incurred to provide goods and services to our customers. GSA reported $20.1 billion in revenue during FY 2014 compared to $20.7 billion reported in FY 2013, a decrease of $604 million. Changes in revenues were most notable in the ASF, which experienced a $572 million reduction. FY 2014 Expenses were $20.3 billion compared to FY 2013 Expenses of $20.4 billion, a decrease of $98 million. Net Costs of Operations was $200 million, a $506 million decrease compared to FY 2013’s positive Net Revenues from Operations of $306 million. The largest drop in net operating results occurred in the FBF, with a reduction of $538 million, discussed further below.