Financial Statements Summary and Analysis
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) 2020, GSA reported total assets of $46.3 billion compared to FY 2019 total assets of $44.7 billion, representing a net increase of approximately $1.6 billion. Significant changes in assets include an increase in the overall FBwT of $0.8 billion, mainly due to activities in the Federal Buildings Fund (FBF), which saw an increase of $0.6 billion, 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. The amounts contributed by earnings exceeded amounts spent on the capital programs which included the $767 million purchase of the Department of Transportation headquarters building in Washington, DC, which had previously been leased. The FBF also received additional funding of $275 million via the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). GSA's accounts receivable from other Federal agencies also rose over $365 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 2020, total liabilities were $9.0 billion; a net increase of $0.5 million compared to FY 2019 total liabilities of $8.5 billion. The increase is primarily attributable to the increased business volume in the ASF reflected in increases to ASF accounts payable to nonfederal entities of nearly $235 million. A significant change in liabilities for the FBF was an increase in estimates of environmental liabilities of $136 million.
GSA Net Results
GSA reported almost $29.0 billion in revenue during FY 2020 compared to $26.3 billion reported in FY 2019, which were matched by expenses of $28.6 billion and $25.8 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 Assisted Acquisition Services (AAS) portfolio that has experienced $2.2 billion in revenue growth year over year. This revenue growth and related increases in the balance of unfilled orders from customers produced the overall $2.4 billion increase in ASF reimbursable spending authority. The ASF's unobligated balances available from prior year activities also grew significantly in FY 2020, mostly due to cancellation of prior year contracts and orders of over $769 million as well as FY 2019 positive net operating results. In the FBF, reimbursable spending authority from offsetting collections decreased by $184 million. This decrease in reimbursable spending authority was primarily the result of limitations imposed via annual appropriation acts. For the majority of revenues earned, the appropriation acts set caps on the amount authorized to be spent. While actual reimbursable resources from revenues in the FBF grew in FY 2020, the amount made available in appropriation acts to spend these reimbursable resources was almost $429 million lower than the amount authorized in FY 2019. Also in the FBF, the unobligated balances from prior years increased by $387 million, as additional capital project funding was provided in FY 2019 that typically takes several years to execute.
In FY 2020, GSA received $295 million in supplemental appropriations as a part of the CARES Act to prevent, prepare for, and respond to impacts of the coronavirus. The CARES Act provided GSA with no-year funding in three of its fund accounts: the FBF, the Federal Citizen Services Fund (FCSF), and the Working Capital Fund (WCF). The FBF received $275 million and obligated $45 million to provide cleaning and supplies in Federally owned and leased buildings to prevent the spread of coronavirus as well as other operational costs associated with responding to the pandemic. The FCSF received $18 million and obligated $13 million to assist GSA and other agencies to update their IT systems and infrastructure in response to coronavirus and to better allow their employees to work remotely. The WCF received $2 million and obligated $1 million for cleaning supplies, physical space changes, and to develop new internal controls and management reporting in response to the pandemic. GSA will carry over $236 million of unobligated CARES Act funding into FY 2021 to continue addressing impacts of the coronavirus on GSA activities.