Financial Results by Major Fund – Federal Buildings Fund
The FBF is the primary fund of the Public Buildings Service (PBS). PBS provides workplaces for federal agencies and their employees. FBF is primarily supported by rent paid to GSA from other federal entities. Operating results are displayed on the Consolidating Statements of Net Costs, segregated into the two primary components of Building Operations – Government Owned, and Building Operations – Leased.
FY 2014 FBF gross revenue was $11.4 billion, with over half the revenue from five federal customer agencies shown in the “FBF Top 5 Federal Customers” table.
|Revenues ($ in Millions)||% of Total Revenues|
|FBF Top 5 Federal Customers|
|Department of Homeland Security||$1,851||16%|
|Department of Justice||$1,817||16%|
|Social Security Administration||$822||7%|
|Department of the Treasury||$779||7%|
FBF Net Revenues from Operations
FBF Net Revenues from Operations represents the amounts remaining after the costs of operating GSA owned and leased buildings are subtracted from revenue. Net Revenues from Operations are used to invest in major repairs and alterations to federal buildings and to partially offset costs of constructing new federal buildings.
Revenues and expenses in FBF are primarily from building operations and rent. FBF also operates a Reimbursable Work Authorization (RWA) program, which provides customer agencies with alterations and improvements in GSA space, above what is specified in the base rental agreement.
FBF reported net costs exceeding revenue by $104 million compared to net revenues exceeding costs by $434 million reported in FY 2013, a decrease of $538 million. This was due to a $571 million decrease in net results in the Building Operations – Government owned segment and a $33 million reduction of losses in Building Operations- Leased compared to the previous fiscal year. While the net operating results were down significantly, the primary cause was increases in estimates of the long-term cost of environmental liabilities, totaling $513 million. These estimated environmental liabilities are generally classified as retirement obligations, which will be liquidated either over the life of the associated buildings, or at final disposal or demolition of the buildings. While changes for re-estimates of these long-term liabilities are recognized each year in the results of operations, the rental rates for associated buildings are designed to recover such costs over time, similar to funding for capital improvements for building alterations and improvements so that resources are available from year-to-year, as needed. This variation of immediate cost recognition compared to revenue generation over time can periodically create substantial differences in net operating results, as was seen in FY 2014.
FBF Obligations, Outlays and Collections
In the FBF, obligations are primarily the value of contracts awarded to commercial vendors for the construction of new federal buildings; for repairs and alteration, 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 $25 million between FY 2014 and FY 2013. Gross Outlays also decreased by $796 million during FY 2014, mostly due to the wind-down of spending on buildings and alterations funded by the ARRA and reductions in overall FBF funding authorities for capital improvements. Outlays are payments made by the government, once goods and services are received at an acceptable level of quality and completeness. Offsetting Collections increased by $10 million, which represent revenues collected from other federal agencies that “offset” expenditures made by GSA on behalf of other federal agencies.
|2014||2013||Change ($)||Change (%)|
|FBF Obligations and Outlays (Dollars in Millions)|