GSA Financial Results
KPMG LLP issued an unqualified (clean) opinion on GSA’s FY 2012 financial statements. GSA’s financial statements and the audit opinion results demonstrate the agency’s commitment to accountability and integrity in financial management.
Federal Buildings Fund
The Federal Buildings Fund (FBF) is the primary fund of the Public Buildings Service (PBS). PBS provides workplaces for federal agencies and their employees. The FBF is primarily supported by rent paid to GSA from other federal entities. It also operates a Reimbursable Work Authorization program that provides alterations and lease improvements above those in the agencies’ base rental agreements.
In FY 2012, FBF gross revenue was $11.5 billion. Revenues and expenses in FBF come primarily from building operations and rent. Net revenues from operations are used to invest in major repairs and alterations to federal buildings and to partially offset the costs of constructing new federal buildings. FBF reported net revenue of $310 million. Overall net revenues increased by $169 million, from $141 million in FY 2011. This was due to a $103 million increase in net revenue from owned building operations and a $66 million decrease in the net cost of leased building operations.
In the FBF, obligations are primarily the value of contracts awarded to commercial vendors for the construction of new federal buildings, for repairs, cleaning, utilities, and other maintenance of GSA-owned federal buildings; and lease and related payments to commercial landlords for space leased by GSA for federal agencies. FBF Obligations Incurred decreased by more than $450 million between FY 2011 and FY 2012. This significant reduction is the direct result of the depletion of Recovery Act and Reinvestment Act resources and reduced ordering as the initiation of projects is winding down.
Acquisition Services Fund
The Acquisition Services Fund (ASF) is a revolving fund that operates on the revenue generated from its business and is the primary fund of GSA’s Federal Acquisition Service (FAS). FAS consolidates common requirements from multiple federal agencies and uses its negotiating expertise to acquire products and services at better prices and terms than agencies could obtain individually.
In FY 2012, ASF realized $9.8 billion in revenues. Revenues and expenses in ASF come primarily from the sale of goods and services and the respective costs associated with them. Net revenues from Operations are used to invest in the GSA Fleet, information systems, other investments necessary to improve FAS service levels, and to comply with regulatory and statutory requirements. ASF reported net revenues of $74 million during FY 2012, which is $83 million less than FY 2011 net revenue of $157 million. The decrease in net revenue was primarily attributed to a $66 million decrease in the Integrated Technology Services (ITS) Program.
ASF obligations and outlays are primarily driven by contracts awarded to commercial vendors who provide goods and services to federal agencies. Obligations incurred decreased by more than $450 million between FY 2011 to FY 2012. The decrease is primarily attributable to lower business volume in the General Supplies and Services (GSS) portfolio. Outlays and Offsetting Collections both increased.
For more information about GSA’s FY 2012 financial results, please visit the Financial Section of the FY 2012 AFR at: GSA.gov/afr2012.