Analysis of Financial Statement and Stewardship Information
The financial statements and financial data presented in this report have been prepared from the U.S. General Services Administration (GSA) accounting records in conformity with generally accepted accounting principles (GAAP) as prescribed by the Federal Accounting Standards Advisory Board (FASAB). The Consolidated Statements of Net Cost present the revenues and expenses incurred to provide goods and services to our customers and execute GSA’s programs, by major program and activity.
Consolidated Financial Results
GSA assets primarily include: property and equipment such as Federal buildings, motor vehicles, and office equipment; Fund Balance with Treasury (FBwT); and amounts due to GSA from federal agencies and non-federal customers, mostly from sales transactions or uncollected rent (Accounts Receivable). In fiscal year (FY) 2021, GSA reported total assets of $50.3 billion compared to FY 2020 total assets of 46.3 billion, representing a net increase of approximately $4.0 billion. Significant changes in assets include an increase in the overall FBwT of $2.6 billion, mainly due to activities in the Federal Buildings Fund (FBF), which saw an increase of $964 million. This FBF increase is primarily the result of strong earnings generated by building operations as funding for capital programs: to cover building repairs and alterations (R&A), and new constructions costs. In the ASF, FBwT reflects a $514 million increase, primarily as the result of increased business volumes for the FAS business lines, increased proceeds from vehicle sales, and a decrease in cash outlays in the TTL program due to a significant delay in vehicle purchases caused by manufacturing slow-downs impacting the automotive industry.
Additionally, a $1 billion increase in the FBwT is attributed to the Technology Modernization Fund (TMF) receiving appropriations from the American Rescue Plan Act (ARPA) (P.L. 117-2). GSA's accounts receivable from other Federal agencies also rose over $1.5 billion due to increases in business volume and an adjustment to the accrual methodology used for the Assisted Acquisition Services business units in the Acquisition Service Fund (ASF).
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 2021, total liabilities were $10.4 billion; a net increase of $1.4 billion compared to FY 2020 total liabilities of $9.0 billion. The increase is primarily attributable to the increased business volume in the ASF and the change in accrual methodology for the Assisted Acquisition Services business units resulting in increases to accounts payable to non-federal entities.
GSA Net Results
GSA reported almost $31.7 billion in revenue during FY 2021 compared to $29.0 billion reported in FY 2020, which were matched by expenses of $30.8 billion and $28.6 billion, respectively. Changes in the FBF and ASF net operating results are discussed further below.
GSA reported significant increases in spending authority from offsetting collections and obligations in the ASF. Generally this type of spending authority is created by the revenues and customer orders received from Federal agencies and is also referred to as reimbursable spending authority. The primary driver for these increases was business volume in the ASF, reflected in the overall $874 million increase in ASF reimbursable spending authority. The ASF's unobligated balances available from prior year activities also grew significantly in FY 2021, mostly due to modification or cancellation of prior year contracts on orders, that totaled over $1.2 billion, as well as FY 2020 positive net operating results. Also in the FBF, the beginning unobligated balances carried forward from prior years decreased by $268 million, as additional capital project funding was provided in FY 2019 and used in FY 2020 that typically takes multiple years to execute.
In FY 2021, GSA carried forward $236 million in unobligated balances for COVID-19 related activities from FY 2020 CARES Act authorities. Additionally in FY 2021, GSA received $1.15 billion of additional appropriations as part of the ARPA in order to stimulate the economy from the ongoing effects of the Coronavirus pandemic. The Technology Modernization Fund received $1.0 billion and the Federal Citizen Services Fund received $150 million and of these amounts approximately $95 million was obligated in FY 2021. GSA will carry over $1.29 billion of unobligated CARES Act and ARPA funding into FY 2022 to continue addressing impacts related to the Coronavirus.