Financial Statements Summary and Analysis
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 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 nonFederal customers, mostly from sales transactions or uncollected rent (Accounts Receivable). In FY 2019, GSA reported total assets of $44.7 billion compared to FY 2018 total assets of $42.9 billion, representing a net increase of approximately $1.7 billion. Significant changes in assets include an increase in the overall FBwT of $1.5 billion, mainly due to activities in the Federal Buildings Fund (FBF), which saw an increase of nearly $1 billion, primarily as earnings generated as funding for capital programs, to cover building repairs and alterations (R&A) and new constructions costs, exceed amounts spent on these programs. The FBF also received additional funding in excess of $211 million for disaster relief and for transfers to support construction project costs, further contributing to the increase in FBwT. GSA's accounts receivable from other Federal agencies also rose over $600 million due to increases in business volume 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 2019, total liabilities were $8.5 billion; a net increase of $447 million compared to FY 2018 total liabilities of $8 billion. The increase is primarily attributable to the increased business volume in the ASF reflected in increases to ASF accounts payable to non-Federal entities of nearly $600 million. Another significant change in liabilities was a decrease in estimates of environmental liabilities and contingencies of $221 million.
GSA Net Results
GSA reported $26.3 billion in revenue during FY 2019 compared to $23.8 billion reported in FY 2018, which were matched by expenses of $ 25.8 billion and $ 23.4 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. The primary driver for these increases was business volume in the AAS portfolio that has experienced $2.1 billion in revenue growth year over year. In the FBF, spending authority from offsetting collections increased by $178 million and unobligated balances from prior years increased by $315 million. The primary driver for the growth in spending authority from offsetting collections was the increase in the limitation on spending authority provided by Congress. The increase in unobligated balances was a result of capital project funding that typically takes several years to execute. Unobligated balances in FBF operating programs decreased from FY 2018 to FY 2019. Budgetary resources and execution in all other accounts were relatively flat from FY 2018 to FY 2019.
Limitations of Financial Statements
The principal financial statements are prepared to report the financial position and results of operations, pursuant to the requirements of 31 U.S.C. 3515 (b). The statements are prepared from the books and records of GSA in accordance with Federal GAAP and the formats prescribed by OMB. Reports used to monitor and control budgetary resources are prepared from the same books and records. The financial statements should be read with the realization that they are for a component of the U.S. Government