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entitled 'American Battle Monuments Commission's Financial Statements
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Report to Congressional Committees:
February 2008:
Financial Audit:
American Battle Monuments Commission's Financial Statements for Fiscal
Years 2007 and 2006:
GAO-08-326:
GAO Highlights:
Highlights of GAO-08-326, a report to Senate and House Committees on
Veterans' Affairs.
Why GAO Did This Study:
In accordance with 36 U.S.C. 2103, GAO is responsible for conducting
audits of the agencywide financial statements of the American Battle
Monuments Commission (the Commission). GAO audited the financial
statements of the Commission for the fiscal years ended September 30,
2007, and 2006. The audits were done to determine whether, in all
material respects, (1) the Commission’s financial statements were
presented fairly, and (2) Commission management maintained effective
internal control over financial reporting and compliance with laws and
regulations. Also, GAO tested Commission management’s compliance with
selected laws and regulations.
The Commission was created in 1923 to commemorate the sacrifices and
achievements of U.S. Armed Forces where they have served overseas since
April 6, 1917, and locations within the United States as directed by
Congress. The Commission designs, operates, and maintains 24 American
military cemeteries on foreign soil and 25 federal memorials,
monuments, and markers, 22 of which are on foreign soil, that were
financed from appropriated funds. The Commission was also responsible
for designing and constructing the national World War II Memorial on
the Capitol Mall in Washington, D.C., and for maintaining seven
nonfederal memorials with funds provided by those memorials’ sponsors.
What GAO Found:
In GAO’s opinion, the financial statements of the American Battle
Monuments Commission as of September 30, 2007, and 2006, and for the
fiscal years then ended, are presented fairly, in all material
respects, in conformity with U.S. generally accepted accounting
principles. Also, in GAO’s opinion, although certain specific internal
controls were deficient, overall, the Commission maintained effective
internal control over financial reporting (including safeguarding of
assets) and compliance with laws and regulations as of September 30,
2007. In addition, GAO found no reportable instances of Commission
noncompliance in fiscal year 2007 with selected provisions of laws and
regulations tested.
GAO found a significant deficiency in two areas of the Commission’s
information technology controls as of September 30, 2007. Specifically,
(1) user documentation is lacking for the Commission’s Foreign Service
National (FSN) employee payroll, and (2) security program and access
controls over its computer systems, while improving, were not effective
at all Commission locations. The Commission is working to improve its
system of internal control to meet the complex challenges of
information technology, including implementing a new FSN payroll system
in fiscal year 2008, which they expect will eliminate the deficiency in
user documentation.
For fiscal year 2007, the Commission incurred program costs of $59.2
million to maintain its 24 cemeteries and 25 federal memorials that
were financed from appropriated funds. This included $12.5 million to
complete the Normandy Visitor Center, which tells the story of the
Americans interred and memorialized at the Normandy American Cemetery
as a result of the D-Day landings and area fighting to liberate Europe
during World War II. Another $2.2 million of program costs by trust
funds were financed by private contributions for final construction
costs and administration related to the World War II Memorial, purchase
of grave site flowers, and the repair and maintenance of nonfederal
memorials.
Photograph: The Normandy Visitor Center, Dedicated June 6, 2007:
[See PDF for image]
Source: Photo by Roland Haibe, courtesy American Battlefield, Monuments
Commission.
[End of figure]
To view the full product, including the scope and methodology, click on
[hyperlink, http://www.GAO-08-326]. For more information, contact
Steven J. Sebastian at (202) 512-3406 or sebastians@gao.gov.
[End of section]
Contents:
Letter:
Auditor's Report:
Opinion on Financial Statements:
Opinion on Internal Control:
Significant Deficiency:
Compliance with Laws and Regulations:
Consistency of Other Information:
Objectives, Scope, and Methodology:
Commission Comments:
Management's Discussion and Analysis:
Financial Statements:
Consolidating Balance Sheet:
Consolidating Statement of Net Cost and Changes in Net Position 22:
Consolidating Statement of Budgetary Resources:
Notes to Consolidating and Consolidated Financial Statements:
Other Information:
Required Supplementary Information:
Schedules of Heritage Assets:
Abbreviations:
FMFIA: Federal Managers' Financial Integrity Act of 1982:
FSN: Foreign Service National:
OMB: Office of Management and Budget:
[End of section]
United States Government Accountability Office:
Washington, D.C. 20548:
February 29, 2008:
The Honorable Daniel K. Akaka:
Chairman:
The Honorable Richard Burr:
Ranking Member:
Committee on Veterans' Affairs:
United States Senate:
The Honorable Bob Filner:
Chairman:
The Honorable Steve Buyer:
Ranking Member:
Committee on Veterans' Affairs:
House of Representatives:
In accordance with 36 U.S.C. 2103, this report presents the results of
our audits of the financial statements of the American Battle Monuments
Commission (the Commission) for the fiscal years ended September 30,
2007, and 2006.
We are sending copies of this report to the Chairmen and Ranking
Members of the Senate Committee on Appropriations and the House
Committee on Appropriations. We are also sending copies to the
Secretary of the Treasury, the Director of the Office of Management and
Budget, the Chairman of the Commission, and other interested parties.
This report will be available at no charge on the GAO Web site at
[Hyperlink, http://www.gao.gov].
Should you or your staffs have any questions concerning this report,
please contact me at (202) 512-3406 or by e-mail at s [Hyperlink,
sebastians@gao.gov] [Hyperlink, sebastians@gao.gov] ebastians@gao.gov.
Contact points for our Offices of Congressional Relations and Public
Affairs may be found on the last page of this report. Key contributors
to this engagement were Roger R. Stoltz, Patricia A. Summers, Eugene E.
Stevens IV, Cara L. Bauer, Janice L. Friedeborn, Vivian M. Gutierrez,
Tyrone D. Hutchins, and Melanie B. Swift.
Signed by:
Steven J. Sebastian:
Director:
Financial Management and Assurance:
[End of section]
To the Chairman of the American Battle Monuments Commission:
In accordance with 36 U.S.C. 2103, we are responsible for conducting
audits of the agencywide financial statements of the American Battle
Monuments Commission (the Commission). In our audits of the
Commission's financial statements for fiscal years 2007 and 2006, we
found:
* the consolidating financial statements as of and for the fiscal year
ended September 30, 2007, and comparative consolidated totals as of and
for the fiscal year ended September 30, 2006, are presented fairly, in
all material respects, in conformity with U.S. generally accepted
accounting principles;
* although certain specific internal controls should be improved,
overall, the Commission maintained effective internal control over
financial reporting (including safeguarding assets) and compliance with
laws and regulations as of September 30, 2007; and:
* no reportable noncompliance with laws and regulations we tested.
The following sections discuss (1) these conclusions, (2) our
conclusions on Management's Discussion and Analysis and other
supplementary information, (3) our audit objectives, scope, and
methodology, and (4) Commission comments.
Opinion on Financial Statements:
The Commission's consolidating balance sheet as of September 30, 2007,
consolidating statement of net cost and changes in net position, and
consolidating statement of budgetary resources, with accompanying notes
for the fiscal year then ended, and comparative consolidated totals as
of and for the fiscal year ended September 30, 2006, are presented
fairly, in all material respects, in conformity with U.S. generally
accepted accounting principles.
Opinion on Internal Control:
Although certain specific internal controls should be improved,
overall, the Commission maintained, in all material respects, effective
internal control over financial reporting (including safeguarding
assets) and compliance as of September 30, 2007. Internal control
provided reasonable assurance that misstatements, losses, or
noncompliance material in relation to the consolidating financial
statements would be prevented or detected on a timely basis. Our
opinion is based upon criteria established under 31 U.S.C. 3512 (c),
(d) [Federal Managers' Financial Integrity Act (FMFIA)], and the Office
of Management and Budget (OMB) Circular No. A-123, Management's
Responsibility for Internal Control (Dec. 21, 2004).
Our audit identified a significant deficiency related to the
Commission's internal controls over information technology systems as
of September 30, 2007, that we did not consider to be a material
weakness. A significant deficiency is a control deficiency, or
combination of deficiencies, that adversely affects the entity's
ability to initiate, authorize, record, process, or report financial
data reliably in accordance with U.S. generally accepted accounting
principles such that there is more than a remote likelihood that a
misstatement of the entity's financial statements that is more than
inconsequential will not be prevented or detected.[Footnote 1] In
addition, misstatements may occur in other financial information
reported by the Commission and not be prevented or detected because of
the significant internal control deficiency described in the next
section. Commission management disclosed this deficiency in its fiscal
year 2007 FMFIA report.
Significant Deficiency:
In our prior-year audit,[Footnote 2] we reported on weaknesses we
identified in internal controls regarding the Commission's information
technology systems, which we considered collectively to represent a
reportable condition.[Footnote 3] Specifically, inadequate controls
existed in the areas of (1) user documentation and (2) the Commission's
security program and related access controls. During fiscal year 2007,
the Commission took steps to correct weaknesses in these two areas, but
did not fully resolve them by year end. Consequently, the weaknesses in
these two areas collectively represent a significant deficiency as of
September 30, 2007.
Inadequate User Documentation:
While overall, the Commission's existing accounting system, implemented
on October 1, 2001, has sufficient user documentation, it did not
provide user documentation to support older legacy subsystems that were
still used primarily to process Foreign Service National (FSN) employee
payrolls during fiscal year 2007. This is significant as the
Commission's FSN employees comprised 334 of 404 full-time equivalent
positions for fiscal year 2007, or 83 percent. This condition has
existed since our first audit of the Commission's financial statements
in fiscal year 1997 and included the Clipper system used by the
Commission's European Regional Office and the dBase IV system used by
the Commission's Mediterranean Regional Office. Commission personnel
have learned how to use these legacy subsystems over the years,
primarily through on-the-job training, but have limited documentation
to explain how subsystems' functions should be performed and to answer
questions. As a result, errors or irregularities may occur and not be
detected by Commission personnel in the normal course of processing
transactions.
During fiscal year 2007, the Commission completed design and
documentation of a new payroll system for its FSN employees for which
it began parallel processing and testing in October 2007. Commission
officials reported that the new system was fully operational for
calendar year 2008.
Security Program and Access Controls:
As information technology systems evolve, so do the challenges in
keeping these systems secure from unauthorized access. While the
Commission has made considerable improvement in this area, particularly
as its computerized systems move to centralized worldwide management,
we continued to identify control deficiencies in security over the
Commission's systems during our fiscal year 2007 audit. This included
administrative controls over network configuration, encryption, and
access to files that were not effective at all Commission locations as
of September 30, 2007. These conditions may allow unauthorized parties
access to the Commission's computer system and network resources that
could result in damage, deletion, or theft of computerized data.
Since the installation of the Commission's automated accounting system
in fiscal year 2002, we have conducted annual security and general
controls reviews as part of our annual financial statement audits. In
separate Limited Official Use reports issued after our fiscal years
2002 through 2006 audits, we communicated detailed information and made
specific recommendations to strengthen Commission internal controls in
information technology, accounting procedures, and financial
reporting. While the Commission has implemented 75 percent of these
recommendations, further efforts are needed. We will be reporting
separately to Commission management on these matters.
Compliance with Laws and Regulations:
Our tests of the Commission's compliance with selected provisions of
laws and regulations for fiscal year 2007 disclosed no instances of
noncompliance that would be reportable under U.S. generally accepted
government auditing standards or OMB audit guidance. However, the
objective of our audit was not to provide an opinion on overall
compliance with laws and regulations. Accordingly, we do not express
such an opinion.
Consistency of Other Information:
The Commission's Management Discussion and Analysis and other
information related to heritage assets contain a wide range of data,
some of which are not directly related to the financial statements. We
do not express an opinion on this information. However, we compared
this information for consistency with the financial statements and
discussed the methods of measurement and presentation with officials of
the Commission. On the basis of this limited work, we found no material
inconsistencies with the financial statements, U.S. generally accepted
accounting principles, or OMB guidance.
Objectives, Scope, and Methodology:
Commission management is responsible for (1) preparing the financial
statements in conformity with U.S. generally accepted accounting
principles; (2) establishing, maintaining, and assessing internal
control to provide reasonable assurance that the broad internal control
objectives of FMFIA are met; and (3) complying with applicable laws and
regulations.
We are responsible for obtaining reasonable assurance about whether (1)
the Commission's financial statements are presented fairly, in all
material respects, in conformity with U.S. generally accepted
accounting principles, and (2) Commission management maintained
effective internal control, the objectives of which are the following:
* Financial reporting: Transactions are properly recorded, processed,
and summarized to permit the preparation of financial statements and
other information in conformity with U.S. generally accepted accounting
principles, and assets are safeguarded against loss from unauthorized
acquisition, use, or disposition.
* Compliance with applicable laws and regulations: Transactions are
executed in accordance with (1) laws governing the use of budgetary
authority; (2) other laws and regulations that could have a direct and
material effect on the financial statements; and (3) any other laws,
regulations, and governmentwide policies identified by OMB audit
guidance.
We are also responsible for (1) testing compliance with selected
provisions of laws and regulations that have a direct and material
effect on the financial statements and for which OMB guidance requires
testing, and (2) performing limited procedures with respect to certain
other information appearing in the Commission's annual financial
report. In order to fulfill these responsibilities, we:
* examined, on a test basis, evidence supporting the amounts and
disclosures in the financial statements;
* assessed the accounting principles used and significant estimates
made by Commission management;
* evaluated the overall presentation of the financial statements;
* obtained an understanding of the Commission and its operations,
including its internal control related to financial reporting
(including safeguarding assets), compliance with laws and regulations
(including execution of transactions in accordance with budget
authority), and performance measures reported in the Commission's
Management's Discussion and Analysis in the annual financial report;
* tested relevant internal controls over financial reporting and
compliance, and evaluated the design and operating effectiveness of
internal control;
* considered the process for evaluating and reporting on internal
control and financial management systems under FMFIA; and:
* tested compliance with selected provisions of the following laws and
regulations:
- the Commission's enabling legislation codified in 36 U.S.C. Chapter
21,
- public laws applicable to the World War II Memorial Fund,
- Buffalo Soldiers Commemoration Act of 2005,
- Military Quality of Life and Veterans Affairs Appropriations Act,
2006,
- Continuing and Revised Appropriations Resolutions, 2007, as amended,
- Antideficiency Act,
- Pay and Allowance System for Civilian Employees, and:
- Prompt Payment Act.
We did not evaluate all internal controls relevant to operating
objectives as broadly defined by FMFIA, such as those controls relevant
to preparing statistical reports and ensuring efficient operations. We
limited our internal control testing to controls over financial
reporting and compliance. Because of inherent limitations in internal
control, misstatements due to error or fraud, losses or noncompliance
may nevertheless occur and not be detected. We also caution that
projecting our evaluation to future periods is subject to the risk that
controls may become inadequate because of changes in conditions or that
the degree of compliance with controls may deteriorate.
We did not test compliance with all laws and regulations applicable to
the Commission. We limited our tests of compliance to selected
provisions of laws and regulations that have a direct and material
effect on the financial statements and those required by OMB audit
guidance that we deemed applicable to the Commission's financial
statements for the fiscal year ended September 30, 2007. We caution
that noncompliance may occur and not be detected by these tests and
that such testing may not be sufficient for other purposes.
We performed our work in accordance with U.S. generally accepted
government auditing standards and OMB audit guidance.
Commission Comments:
Commission management was provided with a draft of this report and
concurred with its facts and conclusions.
Signed by:
Steven J. Sebastian:
Director:
Financial Management and Assurance:
February 7, 2008:
[End of section]
Management's Discussion and Analysis:
American Battle Monuments Commission:
Annual Financial Report:
Management's Discussion And Analysis (MDA) For The Fiscal Year Ended
September 30, 2007:
Commission Profile:
The American Battle Monuments Commission (the Commission)—guardian of
America's overseas commemorative cemeteries and memorials—honors the
service, achievements and sacrifice of United States Armed Forces.
Since 1923, the Commission has executed this mission by (1)
commemorating the achievements and sacrifices of United States Armed
Forces where they have served overseas since April 6, 1917, through the
erection and maintenance of suitable memorial shrines; (2) designing,
constructing, operating and maintaining permanent American military
burial grounds in foreign countries; and (3) controlling the design and
construction on foreign soil of U.S. military memorials, monuments, and
markers by other U.S. citizens and organizations, both public and
private, and encouraging their maintenance. Our fiscal year 2007
appropriation supported our continued commitment to the worldwide
responsibilities that flow from this mission.
In performance of its mission, the Commission administers, operates and
maintains 24 permanent American military cemeteries; 25 Federal
memorials, monuments, and markers; and seven nonfederal memorials.
While three memorials are located in the United States, the remaining
memorials and all of our cemeteries are located in 14 foreign
countries, the U.S. Commonwealth of the Northern Mariana Islands, and
the British dependency of Gibraltar. These cemeteries and memorials are
among the most beautiful and meticulously maintained shrines in the
world. As of September 30, 2007, interred in the cemeteries are almost
125,000 U.S. war dead: about 31,000 from World War I, over 93,000 from
World War II, and 750 from the Mexican American War. Additionally, over
6,000 American veterans and others are interred in our Mexico City and
Corozal cemeteries. The Commission's World War I, World War II, and
Mexico City cemeteries are closed to future burials except for the
remains of U.S. war dead discovered in World War I and II battle areas.
In addition to grave sites, the World War I and II cemeteries, together
with three memorials on U.S. soil, commemorate by name on Tablets of
the Missing over 94,000 U.S. servicemen and women who were missing in
action or lost or buried at sea in their general region during the
World Wars and the Korean and Vietnam Wars.
The Commission also administers trust funds to (1) build memorials
authorized by Congress, but financed primarily from private
contributions, commemorative coin proceeds, and investment earnings;
(2) decorate grave sites with flowers from private contributions; and
(3) maintain and repair nonfederal war memorials with private
contributions.
Organizational Structure:
The Commission's organizational structure for fiscal year 2007 is
presented in Figure 1 below.
Figure 1. The Commission's Organizational Structure:
[See PDF for image]
Board of Commissioners (Chairman and 10 Commissioners appointed by the
President);
ABMC Secretary (Appointed by the President);
Executive Director;
HQ Staff:
* Personnel and Administration;
* Finance;
* Engineering and Maintenance;
* Public Affairs;
Regional Director, Europe (17 cemeteries);
Regional Director, Mediterranean (4 cemeteries);
Independent Cemeteries (3 cemeteries).
Authorized Strength (FTE):
US-General Service: 70;
Foreign Service Nationals: 334;
Total: 404.
[End of figure]
The Commission's policymaking body consists of an 11-member Board of
Commissioners appointed by the President of the United States for an
indefinite term and whose members serve without pay. The commissioners
establish policy and ensure proper staff functioning in carrying out
the mission of the Commission. During inspections, they observe,
inquire, comment upon, and make recommendations on any and all aspects
of Commission operations. The Commission's daily operations are
directed by an Executive Level Secretary, who is appointed by the
President and assisted by an Executive Director, a member of the Senior
Executive Service.
The Commission's headquarters office is in Arlington, Virginia and
regional offices are located in Garches, France, just outside Paris,
and in Rome, Italy.
For fiscal year 2007, the Commission had a total of 404 full-time
equivalent (FTE) positions. U.S. citizens constituted 70 members of the
staff, while the remaining 334 were Foreign Service Nationals employed
at our regional offices and at the cemeteries in the countries where the
Commission operates.
Operations Management:
The Commission's fiscal year 2007 funding focused on personnel costs,
service fees, scheduled maintenance and repairs, supplies, materials,
spare parts, replacement of uneconomically repairable equipment, and
capital improvements. We also completed the construction of the
Normandy Visitor Center which was dedicated on June 6, 2007, in
conjunction with the 63rd Anniversary Commemoration of the D-Day
landings.
The Commission's fiscal year 2007 appropriation of $37.2 million was
available for salaries and expenses. In fiscal year 2007, Congress also
appropriated $5 million into the Commission's Foreign Currency
Fluctuation Account. This appropriation is used to offset foreign
exchange losses to the U.S. Dollar primarily by the European Euro. This
funding also reduces the Commission's risk that the funding
appropriated for its operations in the Salaries and Expenses
appropriation would be jeopardized due to vagaries in currency
fluctuations.
Most of our facilities range in age from 47 to 93 years old, with our
Mexico City Cemetery being over 150 years old. The permanent structures
and plantings, which make our facilities among the most beautiful
memorials in the world, require increased funding to maintain them at
the current standards. Accordingly, we prioritize the use of our
maintenance and engineering funds very carefully to ensure the most
effective utilization of our available resources. Within its fiscal year
2007 appropriation, the Commission continued the Infrastructure
Modernization Program that protects the American people’s investment in
the cemeteries, memorials, and monuments for which we are responsible.
The shrines to America's war dead entrusted to the Commission's care
require a significant annual program of maintenance and repair of
facilities, equipment, and grounds. This care includes upkeep of more
than 131,000 graves and headstones and 73 memorial structures (within
and external to the cemeteries) on over 1,600 acres of land.
Additionally, the Commission maintains 41 residential quarters for
assigned personnel; 24 visitor buildings; 24 maintenance facilities; 67
miles of roads and walkways; 911 acres of flowering plants, fine lawns,
and meadows; nearly 3 million square feet of shrubs and hedges; and
over 11,000 ornamental trees. All of the plantings, including the lawns
and to some extent the meadows, must be cut and shaped, fed, and
treated with insecticides and fungicides at regular intervals during
the growing season. The plantings also must be replaced when their
useful lives are exhausted or they receive major storm damage.
Because the care and maintenance of these resources is exceptionally
labor intensive, personnel costs accounted for more than half of the
Commission's fiscal year 2007 obligations. Figure 2 shows the
obligation of funds by object class under the Commission's fiscal year
2007 obligations.
Figure 2. The Commission's Fiscal Year 2007 Obligations by Object
Class:
[See PDF for image]
This figure is a pie-chart, depicting the following data:
Salaries and Benefits: 60%;
Contractual and Support Services: 20%;
Equipment and Engineering: 6%;
Printing and Supplies: 6%;
Rent and Utilities: 6%;
Travel and Transportation: 2%.
[End of figure]
Mission:
During fiscal year 2007, the Commission continued to develop its
mission and goals to help ensure that our commemorative cemeteries and
memorials remain fitting shrines to those who have served our nation in
uniform since America’s entry into World War I.
The Commission’s mission statement:
The American Battle Monuments Commission—guardian of America's
overseas commemorative cemeteries and memorials—honors the service,
achievements, and sacrifice of United States Armed Forces.
Strategic Goals and Objectives:
Summarized below are the Commission’s goals and objectives and the
strategies employed to guide the Commission in accomplishing its goals.
Goal: To develop, operate, maintain, and improve ABMC facilities as the
world's best commemorative sites.
Objectives:
* Develop, implement, and sustain best business practices for
commemorative operations;
* Sustain standardized processes for cemetery management & maintenance;
and;
* Strengthen management of infrastructure modernization, productivity,
and equipment programs.
Means for Achieving Objectives:
The Commission’s Infrastructure Modernization Program provides a
systematic look at our aging facilities. It addresses areas that will
reduce the growth of operational and routine maintenance costs and
promotes more effective long-term planning, operations, and resource
management.
Since fiscal year 2000, the Commission has been working on resolving
deficiencies noted during in-depth technical surveys conducted by
professional engineering firms who applied current industry standards,
regulations, and technological advances in making their assessment. The
first priority established by the Commission focused on correcting
deficiencies noted in its electrical and structural systems at the
memorial cemeteries and monuments. In fiscal year 2007, the Commission
continued its work on resolving infrastructure deficiencies and
prioritized that work based on a systematic process of review and
analysis.
Resources:
Throughout the Commission, 358 personnel work directly on activities
that contribute to satisfying this strategic goal.
* Headquarters senior staff and directors;
* Regional and staff directors; and;
* Superintendents, assistant superintendents, and cemetery workers.
Program Activities, Outcomes, and Performance Indicators:
* Achieved an annualized workload to resolve infrastructure
modernization deficiencies at a targeted rate of 35 percent of the
balance per year.
Goal: To value and invest in each employee.
Objectives:
* Recruit, develop, and retain a world-class workforce;
* Recognize and award superior performance;
* Create an environment in which employees feel that their needs are
being met;
* Develop a skilled and dedicated workforce by encouraging learning
throughout the organization;
* Ensure that employees have a stake in and can relate their job to the
vision;
* Ensure employees are energized and "feel good" about working at ABMC;
and;
* Communicate ABMC programs and priorities to employees.
Means for Achieving Objectives:
Training and education provides opportunities for our employees to
better their service and support to the Commission. By sponsoring and
offering training and professional development opportunities, the
Commission creates an environment where employees become vested in the
agency’s well-being and are better able to contribute its operations.
Data is collected on training needs, objectives, and professional
development for all employees. After reviewing and determining needs,
data is compared against 5 C.F.R. 410 in order to create or outsource
training and education opportunities best suited for ABMC employees.
Resources:
Throughout the Commission, 5 personnel work directly on activities that
contribute to satisfying this strategic goal.
* Human Resources;
* Administration.
Program Activities, Outcomes, and Performance Indicators:
* Filled 100% of authorized Full-Time Equivalent positions;
* Sustained a turn-over rate of less than 30%;
* Achieved 50% participation in an Employee Wellness Program; and;
* Achieved 100% participation in developing formalized Individual
Development Plans.
Goal: To have ABMC commemorative sites recognized worldwide as
inspirational and educational visitor destinations.
Objectives:
* Increase public awareness and understanding of the ABMC commemorative
mission;
* Increase the number of visitors to ABMC cemeteries and memorials;
and;
* Satisfy constituents’ needs through timely distribution of
information & products.
Means for Achieving Objectives:
The men and women buried in ABMC cemeteries and memorialized on Tablets
of the Missing come from the U.S. armed forces whose competence,
courage and sacrifice helped preserve freedom throughout the world.
ABMC honors that service and sacrifice by operating and maintaining
uniquely splendid commemorative cemeteries and memorials. But to truly
honor the memory of those buried or memorialized at our commemorative
sites, we also must tell their story.
The Commission continued its efforts to increase public awareness of
the ABMC commemorative mission and encourage more U.S. and foreign
citizens to visit our cemeteries and memorials worldwide. To achieve
these objectives, ABMC focuses its outreach program on relevant
constituencies such as travel industry representatives and writers,
national media publications, active duty military personnel, the U.S.
diplomatic community, educators and students, and national veterans’
groups. Concurrently, the Commission is expanding the amount of
information provided to the public through the ABMC Web site and work
to streamline delivery of products.
Resources:
Throughout the Commission, 23 personnel, 14 at the Normandy Visitor
Center, work directly on activities that contribute to satisfying this
strategic goal.
* Public Affairs;
* Normandy Visitor Center Operations.
Program Activities, Outcomes, and Performance Indicators:
* Increased public awareness and understanding of the ABMC
commemorative mission and increased the number of visitors to ABMC
cemeteries and memorials: Worked with editors of travel and veterans’
publications and Web sites, national convention planners, and the
National History Day program to increase visits to ABMC commemorative
sites by 20 percent.
* Satisfied constituents’ needs through timely distribution of
information and products: Improved the quantity and quality of
historical information and links provided on the Web pages of at least
four ABMC cemeteries; worked to digitize ABMC headstone photo files and
automated the lithograph production process to reduce delivery time to
customers from 4-6 weeks to one week.
Goal: To make ABMC’s business and resource management the best in
government.
Objectives:
* Fully resource ABMC's Mission, Vision, and Standards;
* Improve internal controls; and;
* Leverage cutting-edge business technologies and practices.
Means for Achieving Objectives:
Central to achieving the Commission’s business and resources process
improvement goal are mechanisms that aid managers at all levels of the
organization in monitoring and evaluating the wide variety of systems
and programs inherent in its operations.
Data Management and Support System: One deficiency noted during the
Commission’s strategic planning process was a lack of timely and
financial information available at the decision-maker level. Managers
charged with the responsibility for individual projects require timely,
accurate, and appropriate access to operational information to ensure
that the Commission uses its resources effectively and efficiently. The
current system, while focused on enabling accounting clerks to input
individual vouchers, does not provide an appropriate means for timely
management routines to meet the diverse needs of the organization.
Accounting System Upgrade: The Commission continues to refine its
efforts in budget development, account processing, and financial
reporting to better enable workers and managers at all levels of the
organization to use the financial management system. The re-engineering
effort enables the Commission to modify its accounting software system
to meet management and performance objectives.
The Commission must maximize the return on all resources provided on
the part of the American public. Our fixed costs continue to consume a
greater percentage of our total Salaries and Expenses. An integrated
Financial Management System enables the Commission to better manage the
resources provided, providing us with the tools to maximize return on
investments on the labor saving equipment crucial to the maintenance of
our cemeteries and memorials, a true national treasure.
Resources:
Throughout the Commission, 18 personnel work directly on activities
that contribute to satisfying this strategic goal.
* Finance;
* Accounting;
* Budget.
Program Activities, Outcomes, and Performance Indicators:
Leveraged cutting-edge business technologies and practices: Began to
acquire resources to upgrade outdated accounting system so that the
Commission has an integrated financial management and reporting system
providing key decision makers with necessary information.
Selected Performance Results Toward Achieving Strategic Goals:
During fiscal year 2007, the Commission demonstrated an ability to
achieve performance results through a number of specific projects that
tie directly to its strategic goals as follows:
1. In support of next of kin and other customers who use our services,
the Commission provides burial and memorialization site information;
letters authorizing non-fee passports for members of the immediate
family traveling overseas primarily to visit an ABMC cemetery; in-
country travel information; and, upon arrival at the cemetery, escort
to the appropriate grave or memorialization site. Requesters are
provided a photograph taken of the appropriate headstone or section on
the Tablet of the Missing, which is mounted on a color lithograph of
the cemetery or memorial where a serviceman or woman is buried or
commemorated by name. We also purchase floral decorations with donor
funds and the donor is given a photograph of the headstone or Tablet of
the Missing with the decoration in place.
2. In addition to responding to inquiries by friends and relatives of
the war dead interred or memorialized at its sites, the Commission also
provides information to the Executive Branch, Members of Congress,
other government agencies, historians, and other interested
individuals. We provide cemetery lithographs, photos, and other
information throughout the year.
3. The Commission's Web site at [hyperlink, http://www.abmc.gov]
provides visitors a convenient, user-friendly method to access
information on the Commission, as well as its cemeteries, memorials,
monuments, markers, and headquarters operations. In addition,
information on U.S. war dead from the Korean War and those interred or
commemorated at its World War I and World War II cemeteries and
memorials are accessible on the Web site.
4. The Commission's overseas commemorative sites are recognized for
their beauty and inspirational qualities, yet few Americans are aware
of their existence. Through a variety of methods, including using
traveling displays and increasing contacts with media and
representatives of the travel and tour industry, the Commission
continued to work toward achieving its strategic goal of having its
commemorative sites recognized for their educational and inspirational
qualities.
5. Throughout the year, the Commission hosted a variety of special
events and commemorations including ceremonies on Memorial Day and
Veterans Day. In addition, military units held ceremonies to honor
their fallen comrades, and local organizations paid tribute to those who
died while liberating their regions. A significant ceremony held in
fiscal year 2007 was the dedication of the Normandy American Cemetery
Visitor Center, an event attended by the United States Secretary of
Defense, the French Defense Minister, numerous other dignitaries
and, most importantly, hundreds of World War II D-Day veterans,
including Medal of Honor recipient Walter Ehlers. It was the
Commission’s first such center and will help us tell the story of those
that participated in the D-Day invasion and ensuing operations of the
Normandy campaign. Construction of this facility began in September
2005.
6. The American Veterans of WWII, Korea, and Vietnam (AMVETS) and the
Robert R. McCormick Tribune Foundation have generously donated
chromatically tuned bells in carillons to enhance our overseas
cemeteries. AMVETS installed the first carillon in our Manila cemetery
in 1985. They subsequently formed a partnership with the foundation, and
in May 2007 dedicated a carillon at the Flanders Field American
Cemetery in Belgium, the 18th donated over the years.
7. The Commission’s fiscal year 2006 appropriation included funding for
a study to determine what action is warranted to reopen to the public
the World War II Pointe du Hoc Ranger Monument in France and to
preserve the long-term stability of this iconic symbol. The study
was completed in May 2007 and the results called for additional
studies. The findings of this further review are expected in the summer
of 2008. The Commission is working with the French government on a
solution to preserve the Pointe du Hoc site. The Commission will
continue to review and revise its mission, goals, and performance
criteria during the upcoming budget year.
President's Management Agenda Initiatives:
In conjunction with our strategic goals, the Commission made
significant progress in the implementation of each item within the five
initiatives of the President's Management Agenda as follows.
Strategic Management of Human Capital:
In fiscal year 2002, we began a worldwide manpower study that outlined
our manpower requirements, position descriptions, workloads, and
manpower distribution. This effort was to ensure that we deploy our
workforce so that we have the right person with the right skills in
every position. Training and development for the Commission’s workforce
aid in staffing retention and contributes to the effective and
efficient operations of our cemeteries. We expect to continue to
implement the study recommendations through fiscal year 2008 as funding
allows.
Competitive Sourcing:
We have used competitive sourcing initiatives in a number of ways to
improve performance and save costs. Our fiscal year 2007 budget
contained funding for upgrades, hosting, and 24-hour support of our
financial management system. These funds allowed us to outsource
support to contractors experienced in providing such services and
enabled us to support our worldwide operations without increasing the
size of our financial management staff. Most of our construction and
engineering projects were contracted out, since these projects are
usually unique and beyond the capability of our limited staff. Core
aeration, for example, has become a routine horticultural program
applied throughout our cemeteries. Due to this competition, the
Commission has not had to invest in the machines or FTE manpower
normally needed to support this program. In addition, a major headstone
renovation program will rely heavily on contractors.
Improved Financial Performance:
Since fiscal year 1997, the Commission has been required to produce
financial statements and the Comptroller General of the United States
has been required to independently audit these statements. Each year,
the Commission has earned an unqualified opinion on its financial
statements from the U.S. Government Accountability Office. We recognize
that improved financial performance depends on putting useful and
timely information in the hands of Commission managers so they can make
timely and informed decisions. The fiscal year 2007 budget not only
supported our daily accounting operations and proper internal controls,
but allowed us to identify, develop and employ additional management
needs and reports to provide the best financial information available.
Expanded E-Government:
The Commission continued to expand public access to valuable
information through the use of online tools. Our Web site allows
visitors to gather information on our organization, our cemeteries and
memorials, and the war dead buried or honored at our commemorative
sites. We added to the Web site a database of the Vietnam War missing
in action who are honored at the Honolulu Memorial; a database of those
interred at Corozal American Cemetery in Panama; and individual video
tours of our 24 cemeteries. The Commission is committed to continuing
its efforts in fiscal year 2008 to add content to the Web site that
facilitates historical research and visitation of our cemeteries and
memorials. Additionally, we will add an e-commerce capability to place
credit card orders from the ABMC Flower Fund in much the same way that
the public submits on-line enrollments in the World War II Registry
that the Commission maintains on its World War II Memorial Web site at
[hyperlink, http://www.wwiimemorial.com].
Budget and Performance Integration:
A key element in linking budget and performance is having timely and
reliable financial data. We achieved that with our integrated financial
system. Another key element is the process by which the Commission ties
performance within the organization to the budget formulation process.
In fiscal year 2007, we initiated top-to-bottom cemetery reviews within
our European and Mediterranean Regions. These reviews are used to match
requirements to resources across engineering, logistics, and
horticulture, and form the basis for future budget requirements.
Management Integrity: Controls, Systems, Compliance, and Challenges:
The Commission is cognizant of the importance of, and need for,
management accountability and responsibility as the basis for quality
and timeliness of program performance, mission accomplishment,
productivity, cost effectiveness, and compliance with applicable laws.
It has taken management actions to ensure that the annual evaluation of
these controls is performed in a conscientious and thorough manner
according to OMB regulations and guidelines and in compliance with 31
U.S.C. 3512 (c), (d), commonly known as the Federal Managers' Financial
Integrity Act (FMFIA). The Commission's evaluation of its system of
internal management practices and controls during fiscal year 2007
revealed no material weaknesses. The objectives of the Commission's
internal management control policies and procedures are to provide
reasonable assurance that:
1. Obligations and costs are in compliance with applicable law;
2. Funds, property, and other assets are safeguarded against waste,
loss, unauthorized use, and misappropriation;
3. Revenue and expenditures applicable to agency operations are
promptly recorded and accounted for; and;
4. Programs are efficiently and effectively carried out in accordance
with applicable laws and management policy.
Based on its evaluation, the Commission concluded that there is
reasonable assurance that it complies with the provisions of FMFIA. The
reasonable assurance concept recognizes that the cost of internal
controls should not exceed the benefits expected to be derived and that
the benefits reduce the risk of failing to achieve stated objectives.
Future Risks:
Changes in the rate of exchange for foreign currencies have a
significant impact on our day-today operations. In order to insulate
the Commission's annual appropriation against major changes in its
purchasing power, Congress enacted legislation in 1988 (codified in 36
U.S.C. 2109) to establish a foreign currency fluctuation account in the
U.S. Treasury. However, since the summer of 2006, the U.S. Dollar has
fallen precipitously against the European Euro. The Commission has been
closely monitoring this because our budget is disproportionately
affected by foreign currency fluctuation since over 70% of the budget
is exposed to foreign currency.
As a strategic hedge against currency fluctuation, the Commission is
proposing a change to its statutory language for FCFA (36 U.S.C. 2109)
to authorize an indefinite appropriation. In seeking “such sums”
language, the Commission would preserve its purchasing power against a
suddenly falling U.S. Dollar against the European Euro. Overall, by
maintaining close scrutiny on the Commission's obligation status, as
well as monitoring and distributing the Foreign Currency Fluctuation
Account balance, our overall future financial risk to operations is
reduced.
[End of section]
Financial Statements:
Consolidating Balance Sheet:
American Battle Monuments Commission:
Consolidating Balance Sheet:
As of September 30, 2007:
(With Comparative Consolidated Total as of September 30, 2006):
Assets, Intragovernmental: Fund balance with Treasury (note 2):
General Fund, Cemeteries and Memorials: $24,360,410;
Trust Funds, WWII and Other Trust Funds: $4,438,066;
Total Funds, Total 2007: $28,798,476;
Total Funds, Total 2006: $55,070,124.
Assets, Intragovernmental: Treasury investments, net (note 3):
General Fund, Cemeteries and Memorials: [Empty];
Trust Funds, WWII and Other Trust Funds: $8,164,160;
Total Funds, Total 2007: $8,164,160;
Total Funds, Total 2006:$58,137.
Assets, Total Intragovernmental:
General Fund, Cemeteries and Memorials: $24,360,410;
Trust Funds, WWII and Other Trust Funds: $12,602,226;
Total Funds, Total 2007: $36,962,636;
Total Funds, Total 2006: $55,128,261.
Assets, Cash and foreign accounts (note 4):
General Fund, Cemeteries and Memorials: $91,790;
Trust Funds, WWII and Other Trust Funds: $1,112;
Total Funds, Total 2007: $92,902;
Total Funds, Total 2006: $89,568.
Assets, Contributions receivable, net (note 5):
General Fund, Cemeteries and Memorials: [Empty];
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: [Empty];
Total Funds, Total 2006: $110,000.
Assets, General property and equipment, net (note 6):
General Fund, Cemeteries and Memorials: $1,806,015;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $1,806,015;
Total Funds, Total 2006: $1,921,881.
Assets, Heritage property (note 6):
General Fund, Cemeteries and Memorials: [Empty];
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: [Empty];
Total Funds, Total 2006: [Empty].
Total Assets:
General Fund, Cemeteries and Memorials: $26,258,215;
Trust Funds, WWII and Other Trust Funds: $12,603,338;
Total Funds, Total 2007: $38,861,553;
Total Funds, Total 2006: $57,249,710.
Liabilities, Intragovernmental, Accounts payable:
General Fund, Cemeteries and Memorials: $156,329;
Trust Funds, WWII and Other Trust Funds: $203,211;
Total Funds, Total 2007: $359,540;
Total Funds, Total 2006: $1,838,816.
Liabilities, Intragovernmental, Accrued salaries and benefits:
General Fund, Cemeteries and Memorials: $422,330;
Trust Funds, WWII and Other Trust Funds: {Empty];
Total Funds, Total 2007: $422,330;
Total Funds, Total 2006: $85,511.
Liabilities, Total Intragovernmental:
General Fund, Cemeteries and Memorials: $9,264,925;
Trust Funds, WWII and Other Trust Funds: $254,463;
Total Funds, Total 2007: $9,519,388;
Total Funds, Total 2006: $10,553,273.
Commitments and contingencies (note 8):
Net Position (note 9): Unexpended appropriations:
General Fund, Cemeteries and Memorials: $18,061,682;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $18,061,682;
Total Funds, Total 2006: $33,809,576.
Net Position (note 9): Cumulative Results of Operations (deficit):
General Fund, Cemeteries and Memorials: ($1,068,392);
Trust Funds, WWII and Other Trust Funds: $12,348,875;
Total Funds, Total 2007: $11,280,483;
Total Funds, Total 2006: $12,886,861.
Total Net Position:
General Fund, Cemeteries and Memorials: $16,993,290;
Trust Funds, WWII and Other Trust Funds: $12,348,875;
Total Funds, Total 2007: $29,342,165;
Total Funds, Total 2006: $46,696,437.
Total Liabilities and Net Position:
General Fund, Cemeteries and Memorials: $26,258,215;
Trust Funds, WWII and Other Trust Funds: $12,603,338;
Total Funds, Total 2007: $38,861,553;
Total Funds, Total 2006: $57,249,710.
The accompanying notes are an integral part of these statements.
[End of statement]
Consolidating Statement of Net Cost and Changes in Net Position:
American Battle Monuments Commission:
Consolidating Statement Of Net Cost And Changes In Net Position:
For the Year Ended September 30, 2007:
(With Comparative Consolidated Total for the Year Ended September 30,
2006):
Program Costs: Intragovernmental program costs: Operations and
maintenance:
General Fund, Cemeteries and Memorials: $3,614,515;
Trust Funds, WWII and Other Trust Funds: $673,778;
Total Funds, Total 2007: $4,288,293;
Total Funds, Total 2006: $2,932,680.
Program Costs: Intragovernmental program costs: Design and
construction:
General Fund, Cemeteries and Memorials: [Empty];
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: [Empty];
Total Funds, Total 2006: $1,858,309.
Program Costs: Program costs with the public: Operations and
maintenance:
General Fund, Cemeteries and Memorials: $28,434,076;
Trust Funds, WWII and Other Trust Funds: $1,550,292;
Total Funds, Total 2007: $29,984,368;
Total Funds, Total 2006: $32,117,323.
Program Costs: Program costs with the public: Administrative:
General Fund, Cemeteries and Memorials: [Empty];
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: [Empty];
Total Funds, Total 2006: $324,278.
Program Costs: Program costs with the public: Memorial costs:
General Fund, Cemeteries and Memorials: [Empty];
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: [Empty];
Total Funds, Total 2006: $439,841.
Program Costs: Program costs with the public: Property and equipment
(note 6):
General Fund, Cemeteries and Memorials: $13,716,452;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $13,716,452;
Total Funds, Total 2006: $9,626,321.
Program Costs: Program costs with the public: Foreign currency losses,
net:
General Fund, Cemeteries and Memorials: $13,453,070;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $13,453,070;
Total Funds, Total 2006: $9,334,477.
Net Cost of Operations:
General Fund, Cemeteries and Memorials: $59,218,113;
Trust Funds, WWII and Other Trust Funds: $2,224,070;
Total Funds, Total 2007: $61,442,183;
Total Funds, Total 2006: $56,633,229.
Changes In Net Position: Cumulative Results (Deficit) - Start of Year:
General Fund, Cemeteries and Memorials: ($581,346);
Trust Funds, WWII and Other Trust Funds: $13,468,207;
Total Funds, Total 2007: $12,886,861;
Total Funds, Total 2006: $15,132,282.
Budgetary Financing Sources: Appropriations used:
General Fund, Cemeteries and Memorials: $57,977,412;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $57,977,412;
Total Funds, Total 2006: $52,642,968.
Budgetary Financing Sources: Total Budgetary Financing Sources:
General Fund, Cemeteries and Memorials: $57,977,412;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $57,977,412;
Total Funds, Total 2006: $52,642,968.
Other Financing Sources: Contributions:
General Fund, Cemeteries and Memorials: $29,340;
Trust Funds, WWII and Other Trust Funds: $784,306;
Total Funds, Total 2007: $813,646;
Total Funds, Total 2006: $843,913.
Other Financing Sources: Treasury investment earnings:
General Fund, Cemeteries and Memorials: [Empty];
Trust Funds, WWII and Other Trust Funds: $320,432;
Total Funds, Total 2007: $320,432;
Total Funds, Total 2006: $232,209.
Other Financing Sources: Other revenue:
General Fund, Cemeteries and Memorials: [Empty];
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: [Empty];
Total Funds, Total 2006: $7,645.
Other Financing Sources: Imputed financing;
General Fund, Cemeteries and Memorials: $724,315;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $724,315;
Total Funds, Total 2006: $661,073.
Total, Other Financing Sources:
General Fund, Cemeteries and Memorials: $753,655;
Trust Funds, WWII and Other Trust Funds: $104,738;
Total Funds, Total 2007: $1,858,393;
Total Funds, Total 2006: $1,744,840.
Total Financing Sources:
General Fund, Cemeteries and Memorials: $58,731,067;
Trust Funds, WWII and Other Trust Funds: $1,104,738;
Total Funds, Total 2007: $59,835,805;
Total Funds, Total 2006: $54,387,808.
Less: Net Cost of Operations:
General Fund, Cemeteries and Memorials: $59,218,113;
Trust Funds, WWII and Other Trust Funds: $2,224,070;
Total Funds, Total 2007: $61,442,183;
Total Funds, Total 2006: $56,663,229.
Net Increase (Decrease) for the Year:
General Fund, Cemeteries and Memorials: ($487,046);
Trust Funds, WWII and Other Trust Funds: ($1,119,332);
Total Funds, Total 2007: ($1,606,378);
Total Funds, Total 2006: ($2,245,421).
Cumulative Results (Deficit) - End of Year:
General Fund, Cemeteries and Memorials: ($1,068,392);
Trust Funds, WWII and Other Trust Funds: $12,348,875;
Total Funds, Total 2007: $11,280,483;
Total Funds, Total 2006: $12,886,861.
Unexpended Appropriations - Start of Year:
General Fund, Cemeteries and Memorials: $33,809,576;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $33,809,576;
Total Funds, Total 2006: $34,749,909.
Budgetary Financing Sources, Appropriations received:
General Fund, Cemeteries and Memorials: $42,169,000;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $42,169,000;
Total Funds, Total 2006: $50,985,000.
Budgetary Financing Sources, Other offsetting receipts and adjustments:
General Fund, Cemeteries and Memorials: $60,518;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $60,518;
Total Funds, Total 2006: $717,635.
Budgetary Financing Sources, Appropriations used:
General Fund, Cemeteries and Memorials: ($57,977,412);
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: ($57,977,412);
Total Funds, Total 2006: ($52,642,968).
Budgetary Financing Sources, (Decrease) in unexpended appropriations:
General Fund, Cemeteries and Memorials: ($15,747,894);
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: ($15,747,894);
Total Funds, Total 2006: ($940,333).
Unexpended Appropriations -End of Year:
General Fund, Cemeteries and Memorials: $18,601,682;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $18,601,682;
Total Funds, Total 2006: $33,809,576.
Total Net Position- End Of Year:
General Fund, Cemeteries and Memorials: $16,993,290;
Trust Funds, WWII and Other Trust Funds: $12,348,875;
Total Funds, Total 2007: $29,342,165;
Total Funds, Total 2006: $46,696,437.
The accompanying notes are an integral part of these statements.
[End of statement]
Consolidating Statement of Budgetary Resources:
American Battle Monuments Commission:
Consolidating Statement Of Budgetary Resources:
For the Year Ended September 30, 2007:
(With Comparative Consolidated Total for the Year Ended September 30,
2006):
Budgetary Resources, Budgetary Authority: Appropriations:
General Fund, Cemeteries and Memorials: $42,169,000;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $42,169,000;
Total Funds, Total 2006: $51,500,000.
Budgetary Resources, Budgetary Authority: Net transfer in for net
foreign exchange loss:
General Fund, Cemeteries and Memorials: $9,256,916;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $9,256,916;
Total Funds, Total 2006: $7,929,796.
Budgetary Resources, Budgetary Authority: Other (receipts collected):
General Fund, Cemeteries and Memorials: $6,522;
Trust Funds, WWII and Other Trust Funds: $1,094,567;
Total Funds, Total 2007: $1,101,089;
Total Funds, Total 2006: $2,067,131.
Budgetary Resources, Budgetary Authority: Less: Rescinded:
General Fund, Cemeteries and Memorials: [Empty];
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: [Empty];
Total Funds, Total 2006: ($515,000).
Budgetary Resources, Unobligated Balances: Start of year:
General Fund, Cemeteries and Memorials: $19,906,015;
Trust Funds, WWII and Other Trust Funds: $10,028,653;
Total Funds, Total 2007: $29,934,668;
Total Funds, Total 2006: $29,839,756.
Budgetary Resources, Unobligated Balances: Net transfer (out) for net
foreign exchange (loss):
General Fund, Cemeteries and Memorials: ($9,256,916);
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: ($9,256,916);
Total Funds, Total 2006: ($7,929,796).
Budgetary Resources, Unobligated Balances: Other adjustments:
General Fund, Cemeteries and Memorials: $176,610;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $176,610;
Total Funds, Total 2006: ($37,743).
Recoveries of prior year obligations:
General Fund, Cemeteries and Memorials: [Empty];
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: [Empty];
Total Funds, Total 2006: $10,041.
Total Budgetary Resources:
General Fund, Cemeteries and Memorials: $62,258,147;
Trust Funds, WWII and Other Trust Funds: $11,123,220;
Total Funds, Total 2007: $73,381,367;
Total Funds, Total 2006: $82,864,185.
Status of Budgetary Resources, Obligations incurred - direct:
General Fund, Cemeteries and Memorials: $51,260,715;
Trust Funds, WWII and Other Trust Funds: ($702,458);
Total Funds, Total 2007: $50,558,257;
Total Funds, Total 2006: $52,930,042.
Status of Budgetary Resources, Unobligated balances available:
General Fund, Cemeteries and Memorials: $10,997,432;
Trust Funds, WWII and Other Trust Funds: $11,825,678;
Total Funds, Total 2007: $22,823,110;
Total Funds, Total 2006: $29,934,143.
Total Status of Budgetary Resources:
General Fund, Cemeteries and Memorials: $6,258,147;
Trust Funds, WWII and Other Trust Funds: $11,123,220;
Total Funds, Total 2007: $73,381,367;
Total Funds, Total 2006: $82,864,185.
Change in Obligated Balances, Obligations incurred for year:
General Fund, Cemeteries and Memorials: $51,260,715;
Trust Funds, WWII and Other Trust Funds: ($702,458);
Total Funds, Total 2007: $50,558,257;
Total Funds, Total 2006: $52,930,042.
Change in Obligated Balances, Plus: Obligated balances, start of year:
General Fund, Cemeteries and Memorials: $19,994,050;
Trust Funds, WWII and Other Trust Funds: $5,087,080;
Total Funds, Total 2007: $25,081,130;
Total Funds, Total 2006: $26,173,412.
Change in Obligated Balances, Less: Gross outlays for year:
General Fund, Cemeteries and Memorials: ($57,795,262);
Trust Funds, WWII and Other Trust Funds: ($3,727,455);
Total Funds, Total 2007: ($61,522,717);
Total Funds, Total 2006: ($54,022,324).
Obligated Balances, End of Year:
General Fund, Cemeteries and Memorials: $13,459,503;
Trust Funds, WWII and Other Trust Funds: $657,167;
Total Funds, Total 2007: $14,116,670;
Total Funds, Total 2006: $25,081,130.
Net Outlays, Gross outlays for year:
General Fund, Cemeteries and Memorials: $57,795,262;
Trust Funds, WWII and Other Trust Funds: $3,727,455;
Total Funds, Total 2007: $61,522,717;
Total Funds, Total 2006: $54,022,324.
Net Outlays, Less: Offsetting collections;
General Fund, Cemeteries and Memorials: ($6,522);
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: ($6,522);
Total Funds, Total 2006: ($591,141).
Net Outlays:
General Fund, Cemeteries and Memorials: $57,788,740;
Trust Funds, WWII and Other Trust Funds: $3,727,455;
Total Funds, Total 2007: $61,516,195;
Total Funds, Total 2006: $53,431,183.
The accompanying notes are an integral part of these statements.
[End of statement]
Notes to Consolidating and Consolidated Financial Statements:
American Battle Monuments Commission:
Notes To Consolidating And Consolidated Financial Statements:
For the Fiscal Years Ended September 30, 2007 and 2006:
Note 1. Significant Accounting Policies:
A. Basis of Presentation:
The accompanying consolidating and consolidated financial statements
present the financial position, net cost of operations, changes in net
position, and budgetary resources of the American Battle Monuments
Commission (the Commission) in conformity with U.S. generally accepted
accounting principles as used by the federal government. There are no
intra-entity transactions to be eliminated.
B. Reporting Entity and Funding Sources:
The Commission is an independent agency within the executive branch of
the federal government and was created by an Act of March 4, 1923, the
current provisions of which are now codified in 36 U.S.C. Chapter 21.
The Commission’s mission is to commemorate the sacrifices and
achievements of U.S. Armed Forces where they have served overseas since
April 6, 1917, the date of the United States entry into World War I,
and at locations within the United States when directed by the
Congress. The Commission designs, administers, constructs, operates,
and maintains 24 American military cemeteries and 25 federal memorials,
monuments, and markers (herein collectively referred to as memorials).
Three of the memorials are located in the United States while all of
the cemeteries and the remaining memorials are located on foreign soil
in 14 foreign countries, the Marianas, and Gibraltar. The Commission is
also responsible for maintaining 7 nonfederal memorials with funds
received from the memorials’ sponsors. The Commission is headquartered
in Arlington, Virginia. Field operations are conducted through regional
offices located near Paris, France; and in Rome, Italy; and cemeteries
in Manila, the Philippines; Mexico City, Mexico; and Panama City,
Panama.
The Commission also had responsibility for designing and constructing
the National World War II Memorial located on the Mall in Washington,
D.C. In accordance with 40 U.S.C. 8906 (b), the Commission provided
$6.6 million for deposit in a separate Treasury account to offset the
memorial’s costs of perpetual maintenance. On November 1, 2004, the
Commission signed an agreement with the National Park Service to
formally transfer the National World War II Memorial to the Service for
its future care and maintenance. Remaining funds reside in a trust fund
in the U.S. Treasury to be used solely to benefit the World War II
Memorial for other than routine maintenance expense.
Commission programs are funded primarily through appropriations
available without fiscal year limitation (no-year). The Commission also
administers several trust funds established to: (1) build
memorials authorized by the Congress, but which are funded primarily by
private contributions, commemorative coin sales proceeds, and
investment earnings; (2) decorate grave sites; and (3) maintain and
repair certain nonfederal war memorials.
C. Basis of Accounting:
The Commission’s proprietary accounts (assets, liabilities, equity,
revenue, and expenses) are maintained on the accrual basis, where
appropriated funds are accounted for by appropriation year;
operating expenses are recorded as incurred; and depreciation is taken
on property, plant, and equipment not otherwise classified as heritage
assets. Commission budgetary accounts are maintained on a budgetary
basis, which facilitates compliance with legal constraints and
statutory funds control requirements. The functional budget
classification is Veterans’ Benefits and Services.
D. Fund Balances with Treasury:
The Commission’s cash receipts and disbursements are processed by the
U.S. Treasury. Fund balances with Treasury are comprised of
appropriated general funds and trust funds.
E. Investments:
In accordance with 36 U.S.C. 2113(b), the Commission is authorized to
invest World War II Memorial Trust Fund receipts in U.S. Treasury
securities. The Commission is also authorized under a modification to
its original legislation to invest receipts from certain nonfederal war
memorial organizations in U.S. Treasury securities. Treasury
investments are recorded at par value plus unamortized premium or less
unamortized discount. Premiums and discounts are amortized using the
interest method.
F. Foreign Currency:
The Commission’s overseas offices maintain accounts of foreign
currencies to be used in making payments in foreign countries. Amounts
are recorded at a standard budget rate in U.S. dollars and a gain or
loss recognized when paid in foreign currency. Appropriated monies are
transferred from the Commission’s Foreign Currency Fluctuation Account
to fund net currency losses. Cash accounts in foreign currencies are
reported at the U.S. dollar equivalent using the Treasury exchange rate
in effect on the last day of the fiscal year.
G. Contributions and Revenue Recognition:
The Commission recognizes unrestricted contributions or unconditional
promises to give as revenue in the period of the initial pledge when
sufficient verifiable evidence of the pledge exists. Conditional
promises to give are recorded as revenue when the condition has been
met. Unconditional promises to give may be temporarily restricted or
permanently restricted. Temporarily restricted promises to give are
released from restriction when the conditions have been met.
Permanently restricted promises to give are recorded as revenue in the
period donated; however, donors generally allow only the earned income
to be used for general or specific purposes. In-kind contributions of
goods and services are recognized at fair value by the Commission at
the time the goods are received or the services are performed.
Multiyear contributions due over a period of time are discounted to
their present value based upon the short term Treasury interest rate.
H. Operating Materials and Supplies Inventories:
The Commission has determined that operating materials and supplies
located at its cemeteries are not significant amounts and that it is
more cost beneficial to record them on the purchase method of
accounting whereby items are expensed as purchased rather than when
consumed. Consequently, the Commission reports no operating materials
or supplies inventories.
I. Property and Equipment:
Purchases of general property and equipment of $25,000 or less are
expensed in the year of acquisition. Purchases of personal property
exceeding $25,000 are capitalized and depreciated on a straight-line
basis over 5 years. Expenditures relating to real property exceeding
$25,000 are capitalized and depreciated on a straight-line basis over
30 years. Heritage assets are assets possessing significant cultural,
architectural, or aesthetic characteristics. The Commission considers
its cemeteries, and federal memorials, monuments, and markers acquired
through purchase or donation to be noncollection heritage assets.
Heritage assets acquired through purchase or donation are accounted for
in the Commission’s property records, and are not presented in the
balance sheet. Withdrawals of heritage assets are recorded upon formal
agreement with recipients. Additional disclosure on individual heritage
asset cemeteries and memorials are found in the Schedules of Heritage
Assets presented as unaudited other information. Land was donated by
host countries to the United States in perpetuity for use as cemeteries
and memorials.
J. Employee Benefits:
The Commission’s civilian U.S. nationals hired after December 31, 1983
are covered by the Federal Employees’ Retirement System (FERS), which
was implemented on January 1, 1984. The Commission’s civilian U.S.
nationals hired on or before December 31, 1983, could elect to transfer
to FERS or remain with the Civil Service Retirement System (CSRS). For
FERS employees, the Commission withholds .80 percent of base pay and as
employer contributes 10.7 percent of base pay to this retirement
system. For Federal Insurance Contribution Act (FICA) tax and Medicare,
the Commission withholds 7.65 percent from FERS employees’ earnings,
matches this amount on a dollar-for-dollar basis, and remits the total
amount to the Social Security Administration. The Commission withholds
7.00 percent of base pay plus 1.45 percent for Medicare from CSRS
employees’ earnings and as employer contributes 7.00 percent of base
pay plus 1.45 percent for Medicare. These deductions are then remitted
to the Office of Personnel Management (OPM) and the Social Security
Administration. OPM is responsible for governmentwide reporting of FERS
and CSRS assets, accumulated plan benefits, and unfunded liabilities.
On April 1, 1987, the federal government instituted the Thrift Saving
Plan (TSP), a retirement savings and investment plan for employees
covered by FERS and CSRS. The Commission contributes a minimum of 1
percent of FERS employees’ base pay to TSP. For 2007, FERS employees
could contribute up to $15,500 ($20,500 if at least age 50) on a tax-
deferred basis to TSP, which the Commission matches up to 4 percent of
base pay. For 2007, CSRS employees may also contribute up to $15,500
($20,500 if at least age 50) on a tax-deferred basis; however, they
receive no matching contribution from the Commission.
Retirement and other benefits for the Commission’s foreign national
employees are paid by the Commission in accordance with the provisions
of 10 host nation agreements negotiated by the U.S. Department of
State.
Annual leave is accrued as earned, and the resulting unfunded liability
is reduced as leave is taken. Separation pay is provided in certain
countries according to host nation agreements. Separation pay is
accrued as earned, and the resulting unfunded liability is reduced when
paid to the foreign national leaving the employ of the Commission. Each
year balances in the accrued separation pay and annual leave accounts
are adjusted to reflect current pay rates. To the extent that current
or prior year appropriations are not available to fund annual leave and
separation pay, funding will be obtained from future financing
resources. Sick leave and other types of unvested leave are expensed
when incurred.
K. Imputed Financing:
The Commission imputes financing for retirement and other benefits paid
by OPM and financial audit costs incurred by the U.S. Government
Accountability Office (GAO) by recognizing these expenses and related
imputed financing in its financial statements. A heritage asset musical
carillon is also recognized each fiscal year as a donation by AMVETS
and an in-kind expense.
L. Use of Estimates:
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities, as well as the disclosure of contingent assets and
liabilities at the date of the financial statements, and the amount of
revenues and expenses reported during the reporting period. Actual
results could differ from those estimates.
M. Change in Presentation of a Principle Financial Statement:
In the revised OMB Circular A-136, dated June 29, 2007, the Statement
of Financing is not required to be presented as a principle financial
statement. The Statement of Financing reconciled the net cost of
operations with the obligation of budgetary resources and non-budgetary
resources. In FY 2007, the statement presentation has been changed to a
required disclosure, Reconciliation of Net Cost of Operations to
Budget, as presented in note 10.
Note 2. Fund Balances with Treasury:
All undisbursed account balances with the U.S. Treasury, as reflected
in the Commission’s records, as of September 30 are available and were
as follows:
Appropriated Funds:
2007, General Fund: $21,223,693
2007, Trust Funds: [Empty];
2007, Total: $21,223,693
2006, Total: $28,422,604.
Currency Fluctuation:
2007, General Fund: $3,136,717;
2007, Trust Funds: [Empty];
2007, Total: $3,136,717;
2006, Total: $11,589,787.
Various Trust Funds:
2007, General Fund: [Empty];
2007, Trust Funds: $4,438,066;
2007, Total: $4,438,066;
2006, Total: $15,057,733.
Totals:
2007, General Fund: $24,360,410;
2007, Trust Funds: $4,438,066;
2007, Total: $28,798,476;
2006, Total: $55,070,124.
Note 3. Treasury Investments, Net:
As of September 30, the Commission’s Trust Fund investments in U.S.
Treasury notes, which are marketable securities due within 2 years were
as follows:
FY: 2007;
Cost: $8,085,000;
Interest Rates: 4,375%;
Net Premium/(Discount): ($9,270);
Interest Receivable: $88,430;
Net Investment: $8,164,160.
FY: 2006;
Cost: $58,000;
Interest Rates: 4.00%;
Net Premium/(Discount): ($48);
Interest Receivable: $185;
Net Investment: $58,137.
Amortization is on the interest method, and amortized cost approximated
market as of September 30.
Note 4. Cash and Foreign Accounts:
Outside the United States, the Commission makes payments in U.S. and
foreign currencies through imprest cash funds and Treasury-designated
depository commercial bank accounts, which as of September 30 were as
follows:
2007:
Imprest Cash Funds: $45,019;
Foreign Bank Accounts: $46,771;
Undeposited Cash--Trust: $1,112;
Totals: $92,902.
2006:
Imprest Cash Funds: $42,664;
Foreign Bank Accounts: $46,719;
Undeposited Cash--Trust: $185.
Totals: $89,568.
Note 5. Contributions Receivable:
During fiscal year 2007, the Commission collected its last pledge from
the private sector to be used for the World War II Memorial, which was
recorded as an accounts receivable and revenue in the fiscal year
pledged and was temporarily restricted until collected. Additionally,
the Commission has a pledge from a living trust valued at $181,739 as
of September 30, 2007. However, due to the uncertainty of time and
amount when the pledge is collected, if at all, the contribution will be
recognized at the amount when it is received.
Note 6. General and Heritage Property and Equipment:
General property and equipment with an aggregate cost basis of $25,000
or less and all heritage assets were expensed by the Commission. In
fiscal year 2007, $13,716,452 was expensed, which included $12,540,802
of costs related to the construction of the Normandy Visitor Center as a
heritage asset. In fiscal year 2006, $9,626,263 was expensed, which
included $6,879,901 of costs related to the construction of the
Normandy Visitor Center.
Since the 1960s, the Commission’s European Regional Office near Paris,
France, has occupied a residential structure owned by the United States
government. The Commission is responsible for all utilities,
maintenance, and repairs. While the structure has the characteristics
of a heritage asset, it has been used as general property. However, it
is now fully depreciated, and no value is contained in the Commission’s
financial statements. General property and equipment as of September 30
was as follows:
Category: Buildings;
2007 Cost: $923,461;
2007 Accumulated Depreciation: $103,814;
2007 Net: $819,647;
2006 Cost: $923,461;
2006 Accumulated Depreciation: $473,063;
2006 Net: $850,398.
Category: Accounting System;
2007 Cost: $1,760,065;
2007 Accumulated Depreciation: $1,760,065;
2007 Net: 0;
2006 Cost: $1,760,065;
2006 Accumulated Depreciation: $1,760,065;
2006 Net: 0.
Category: Equipment;
2007 Cost: $2,919,808;
2007 Accumulated Depreciation: $1,932,914;
2007 Net: $986,368;
2006 Cost: $2,746,362;
2006 Accumulated Depreciation: $1,674,879;
2006 Net: $1,071,483.
Category: Totals;
2007 Cost: $5,602,808;
2007 Accumulated Depreciation: $3,796,793;
2007 Net: $1,806,015;
2006 Cost: $5,429,888;
2006 Accumulated Depreciation: $3,508,007;
2006 Net: $1,921,881.
Heritage assets are significant to the mission of the Commission to
design, construct, and maintain historical cemeteries and memorials.
The Commission presents its heritage assets in three categories;
cemeteries, federal memorials, and nonfederal memorials. Changes in
heritage assets for fiscal year 2007 were as follows:
Beginning of Year, 10-1-06:
Cemeteries: 24;
Federal Memorials: 25;
Nonfederal Memorials: 6.
Number Acquired, Fiscal Year 2007:
Cemeteries: 0;
Federal Memorials: 0;
Nonfederal Memorials: 1.
Number Withdrawn, Fiscal Year 2007:
Cemeteries: 0;
Federal Memorials: 0;
Nonfederal Memorials: 0.
End of Year, 9-30-07:
Cemeteries: 24;
Federal Memorials: 25;
Nonfederal Memorials: 7.
During fiscal year 2007, the Commission assumed responsibility for the
nonfederal 398th Bomb Group Memorial. Through September 30, 2007,
Commission cemeteries contain over 131,000 interments. Over 94,000
Honored War Dead, whose remains were not recovered, are memorialized in
the cemeteries and federal memorials that encompass over 1,600 acres.
This land is provided to the Commission through host agreements with
foreign countries for permanent use as cemeteries and memorials.
Note 7. Other Liabilities:
Other liabilities as of September 30 were as follows:
Accrued Salaries and Benefits:
2007: $1,239,990;
2006: $1,315,431.
Unfunded Separation Pay Liability:
2007: $1,665,616;
2006: $1,492,136.
Unfunded Annual Leave:
2007: $1,208,818;
2006: $1,213,318.
Totals:
2007: $4,114,424;
2006: $4,020,885.
Under a host nation agreement, the Commission’s Italian employees earn
separation pay for each year of service with the Commission. The
Commission recognized an unfunded liability for separation pay for
these employees of $1,665,616 as of September 30, 2007, and $1,492,136
as of September 30, 2006.
A portion of pension and other retirement benefits (ORB) expense is
funded by an imputed financing source to recognize the amount of
pension and ORB unfunded liabilities assumed by OPM. These costs are
computed in accordance with cost factors provided by OPM. For fiscal
year 2007, the Commission incurred $1,173,374 of pension and ORB costs,
$364,315 of which was imputed. For fiscal year 2006, the Commission
incurred $1,071,577 of pension and ORB costs, $314,073 of which was
imputed. Total imputed costs of $724,315 for fiscal year 2007 and
$661,073 for fiscal year 2006 included audit services provided by GAO.
Note 8. Lease Agreements:
The Commission has no capital leases. The Commission’s Arlington,
Virginia, headquarters, including office space for the WWII Memorial
Project, are rented under a 5-year operating lease expiring in July
2012. The Commission’s Mediterranean Regional Office occupies
commercial office space under a 4-year operating lease expiring in May
2011. The office also has two operating leases for living quarters
which expire in December 2007 and August 2008, respectively. The
Commission’s European Regional Office has two operating leases for
temporary living quarters which expire in August 2009 and February
2013, respectively. Rent expense for fiscal year 2007 operating leases
was $544,985. Future minimum payments due on operating leases as of
September 30, 2007, are as follows:
Fiscal Year: 2008: $734,445;
Fiscal Year: 2009: $718,669
Fiscal Year: 2010: $711,543
Fiscal Year: 2011: $698,308
Fiscal Year: 2012: $556,608
Fiscal Year: After 5 years: $5,218
Total: $3,424,791.
Note 9. Net Position:
Net position balances as of September 30, 2007, were as follows:
Unexpended Appropriations: Unobligated:
General Fund: $10,997,432[A];
Trust Funds: [Empty];
Total: $10,997,432.
Unexpended Appropriations: Undelivered Orders:
General Fund: $7,064,250;
Trust Funds: [Empty];
Total: $7,064,250.
Total Unexpended Appropriations:
General Fund: $18,061,682;
Trust Funds: [Empty];
Total: $18,061,682.
Cumulative Results of Operations (deficit): Unrestricted:
General Fund: ($1,068,392)
Trust Funds: $11,946,144;
Total: $10,877,752.
Cumulative Results of Operations (deficit): Undelivered Orders:
General Fund: [Empty];
Trust Funds: $402,731;
Total: $402,731.
Total, Cumulative Results of Operations (deficit):
General Fund: ($1,068,392);
Trust Funds: $12,348,875;
Total: $11,280,483.
Total Net Position:
General Fund: $16,993,290;
Trust Funds: $12,348,875;
Total: $29,342,165.
Net position balances as of September 30, 2006, were as follows:
Unexpended Appropriations: Unobligated:
General Fund: $19,906,015[B];
Trust Funds: [Empty];
Total: $19,906,015.
Unexpended Appropriations: Undelivered Orders:
General Fund: $13,903,561;
Trust Funds: [Empty];
Total: $13,903,561.
Total Unexpended Appropriations:
General Fund: $33,809,576;
Trust Funds: [Empty];
Total: $33,809,576.
Cumulative Results of Operations (deficit): Unrestricted:
General Fund: ($581,346);
Trust Funds: $10,028,457;
Total: $9,447,111.
Cumulative Results of Operations (deficit): Undelivered Orders:
General Fund: [Empty];
Trust Funds: $3,329,750;
Total: $3,329,750.
Cumulative Results of Operations (deficit): Temporarily Restricted:
General Fund: [Empty];
Trust Funds: $110,000;
Total: $110,000.
Total, Cumulative Results of Operations (deficit):
General Fund: ($581,346);
Trust Funds: $13,468,207;
Total: $12,886,861.
Total Net Position:
General Fund: $33,228,230;
Trust Funds: $13,468,207;
Total: $46,696,437.
[A] Includes $4,578,877 for design and construction of the Normandy
Visitor Center, consisting of zero unobligated from a $5,000,000 no-
year appropriation earmark for FY 2002; $31,446 unobligated (after a
$26,000 rescission) from a $4,000,000 no-year appropriation for FY
2003; $26,735 unobligated (after a $53,100 rescission) from a $9,000,000
no-year appropriation for FY 2004; $1,451,696 unobligated (after a
$72,800 rescission) from a $9,100,000 no-year appropriation for FY
2005; and $3,069,000 unobligated (after a $31,000 rescission) from a
$3,100,000 no-year appropriation for FY 2006.
[B] Includes $7,113,322 for design and construction of the Normandy
Visitor Center, consisting of $98,145 unobligated from a $5,000,000 no-
year appropriation earmark for FY 2002; $479,574 unobligated (after a
$26,000 rescission) from a $4,000,000 no-year appropriation for FY
2003; $26,735 unobligated (after a $53,100 rescission) from a
$9,000,000 no-year appropriation for FY 2004; $3,439,868 unobligated
(after a $72,800 rescission) from a $9,100,000 no-year appropriation
for FY 2005; and $3,069,000 unobligated (after a $31,000 rescission)
from a $3,100,000 no-year appropriation for FY 2006.
Note 10. Reconciliation of Net Cost of Operations to Budget:
SFFAS No. 7 requires a reconciliation of proprietary and budgetary
information in a way that helps users determine how budget resources
obligated for programs relates to net costs of operations. In previous
years, this reconciliation was accomplished by presenting the Statement
of Financing as a basic financial statement. As discussed in Note 1 M.,
effective for fiscal year 2007, the Office of Management and Budget, in
its Circular No. A-136, Financial Reporting Requirements, decided that
this information for federal entities would be better placed and
understood in a note. Consequently, this information is presented as
follows:
Resources Used To Finance Activities, Obligations incurred - direct:
General Fund, Cemeteries and Memorials: $51,260,715;
Trust Funds, WWII and Other Trust Funds: ($702,458);
Total Funds, Total 2007: $50,558,257;
Total Funds, Total 2006: $52,930,042.
Resources Used To Finance Activities, Offsetting collections and
recoveries:
General Fund, Cemeteries and Memorials: ($6,522);
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: ($6,522);
Total Funds, Total 2006: ($601,182).
Resources Used To Finance Activities, Imputed retirement and audit
services:
General Fund, Cemeteries and Memorials: $724,315;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $724,315;
Total Funds, Total 2006: $661,073.
Resources Used To Finance Activities, Other adjustments:
General Fund, Cemeteries and Memorials: $85,615;
Trust Funds, WWII and Other Trust Funds:
Total Funds, Total 2007: $85,615;
Total Funds, Total 2006: ($624,171).
Total Resources Used to Finance Activities:
General Fund, Cemeteries and Memorials: $52,064,123;
Trust Funds, WWII and Other Trust Funds: ($702,458);
Total Funds, Total 2007: $51,361,665;
Total Funds, Total 2006: $52,365,762.
Resources That Do Not Fund Net Cost of Operations, General property
capitalized on the balance sheet:
General Fund, Cemeteries and Memorials: ($299,258);
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: ($299,258);
Total Funds, Total 2006: $636,720.
Resources That Do Not Fund Net Cost of Operations, Decrease in unfunded
annual leave:
General Fund, Cemeteries and Memorials: ($4,008);
Trust Funds, WWII and Other Trust Funds: ($491);
Total Funds, Total 2007: ($4,499);
Total Funds, Total 2006: [Empty].
Resources That Do Not Fund Net Cost of Operations, Undelivered orders -
start of year:
General Fund, Cemeteries and Memorials: $13,903,561;
Trust Funds, WWII and Other Trust Funds: $3,329,750;
Total Funds, Total 2007: $17,233,311;
Total Funds, Total 2006: $19,654,338.
Resources That Do Not Fund Net Cost of Operations, Less: Undelivered
orders - end of year:
General Fund, Cemeteries and Memorials: ($7,064,250);
Trust Funds, WWII and Other Trust Funds: ($402,731);
Total Funds, Total 2007: ($7,466,981);
Total Funds, Total 2006: ($17,233,311).
Total Resources That Do Not Fund Net Cost of Operations:
General Fund, Cemeteries and Memorials: $6,536,045;
Trust Funds, WWII and Other Trust Funds: $2,926,528;
Total Funds, Total 2007: $9,462,573;
Total Funds, Total 2006: $3,057,747.
Components of Net Cost of Operations Not Requiring Resources in the
Current Period, Components Requiring Resources in Future Periods:
Increase in unfunded annual leave:
General Fund, Cemeteries and Memorials: [Empty];
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: [Empty];
Total Funds, Total 2006: $291,174.
Components of Net Cost of Operations Not Requiring Resources in the
Current Period, Components Requiring Resources in Future Periods:
Increase in unfunded separation pay liability:
General Fund, Cemeteries and Memorials: $173,480;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $173,480;
Total Funds, Total 2006: $177,353.
Components of Net Cost of Operations Not Requiring Resources in the
Current Period, Components Not Requiring Resources: Depreciation:
General Fund, Cemeteries and Memorials: $415,125;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $415,125;
Total Funds, Total 2006: $710,543.
Components of Net Cost of Operations Not Requiring Resources in the
Current Period, Components Not Requiring Resources: In-kind expenses:
General Fund, Cemeteries and Memorials: $29,340;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $29,340;
Total Funds, Total 2006: $30,650.
Total Costs Not Requiring Resources in the Current Period:
General Fund, Cemeteries and Memorials: $617,945;
Trust Funds, WWII and Other Trust Funds: [Empty];
Total Funds, Total 2007: $617,945;
Total Funds, Total 2006: $1,209,720.
Net Cost of Operations:
General Fund, Cemeteries and Memorials: $59,218,113;
Trust Funds, WWII and Other Trust Funds: $2,224,070;
Total Funds, Total 2007: $61,442,183;
Total Funds, Total 2006: $56,633,229.
[End of notes]
Other Information:
Required Supplementary Information:
American Battle Monuments Commission:
Other Information:
September 30, 2007:
(Unaudited):
Maintenance, Repairs, and Improvements:
The following unaudited information is required supplementary
information on deferred maintenance and the condition of real property
at Commission cemeteries and memorials:
Deferred maintenance is maintenance that was not performed when it
should have or was scheduled to be and which, therefore, is put off or
delayed for a future period. Maintenance and repairs performed on real
property consisting of land improvements, buildings, and memorials
totaled $3.2 million in fiscal year 2007 and $2.9 million in fiscal
year 2006. For fiscal years 1998 through 2002, the Commission received
$11.3 million of additional appropriations from the Congress that
enabled it to entirely eliminate its deferred maintenance backlog as of
September 30, 2002. No deferred maintenance backlogs existed as of
September 30, 2006, and 2007.
Condition assessment surveys, using a five-point scale of one
(excellent) to five (very poor), identify needed future maintenance and
repair projects at cemeteries and memorials in order to maintain real
property in an acceptable condition of three (fair) or better. These
surveys are reviewed and updated at least annually by the Commission’s
engineering staff. In addition, engineering projects identified
improvements in cemetery irrigation, drainage, roads, parking areas,
and buildings. As of September 30, 2007, the Commission has identified
over 550 maintenance, repair, and improvement projects, with an
estimated cost of $31.4 million, to be performed in future years,
subject to available funding.
Schedules of Heritage Assets:
The following three pages present unaudited other information not
required by U.S. generally accepted accounting principles on the
Commission’s 24 cemeteries; 25 federal memorials, monuments, and
markers; and seven nonfederal memorials as of September 30, 2007.
Schedules of Heritage Assets:
American Battle Monuments Commission:
Schedule of Heritage Assets:
September 30, 2007:
(Unaudited):
European Region:
Name: Aisne Marne American Cemetery;
Location: Belleau (Aisne), France;
Interred: 2,289;
Memorialized: 1,060;
Acres: 42.5;
War: WW I.
Name: Ardennes American Cemetery;
Location: Neupre, Belgium;
Interred: 5,325;
Memorialized: 462;
Acres: 90.5;
War: WW II.
Name: Brittany American Cemetery;
Location: St. James (Manche), France;
Interred: 4,410;
Memorialized: 498;
Acres: 27.9;
War: WW II.
Name: Brookwood American Cemetery;
Location: Brookwood, England;
Interred: 468;
Memorialized: 563;
Acres: 4.5;
War: WW I.
Name: Cambridge American Cemetery;
Location: Cambridge, England;
Interred: 3,812;
Memorialized: 5,127;
Acres: 30.5;
War: WW II.
Name: Epinal American Cemetery;
Location: Epinal (Vosges), France;
Interred: 5,255;
Memorialized: 424;
Acres: 48.6;
War: WW II.
Name: Flanders Field American Cemetery;
Location: Waregem, Belgium;
Interred: 368;
Memorialized: 43;
Acres: 6.2;
War: WW I.
Name: Henri-Chapelle American Cemetery;
Location: Henri-Chapelle, Belgium;
Interred: 7,992;
Memorialized: 450;
Acres: 57.0;
War: WW II.
Name: Lorraine American Cemetery;
Location: St. Avold (Moselle), France;
Interred: 10,489;
Memorialized: 444;
Acres: 113.5;
War: WW II.
Name: Luxembourg American Cemetery;
Location: Luxembourg City, Luxembourg;
Interred: 5,076;
Memorialized: 371;
Acres: 50.5;
War: WW II.
Name: Meuse-Argonne American Cemetery;
Location: Romagne (Meuse), France;
Interred: 14,246;
Memorialized: 954;
Acres: 130.5;
War: WW I.
Name: Netherlands American Cemetery;
Location: Margraten, Holland;
Interred: 8,301;
Memorialized: 1,722;
Acres: 65.5;
War: WW II.
Name: Normandy American Cemetery;
Location: Colleville-sur-Mer, France;
Interred: 9,387;
Memorialized: 1,557;
Acres: 172.5;
War: WW II.
Name: Oise-Aisne American Cemetery;
Location: Fere-en-Tardenois, France;
Interred: 6,012;
Memorialized: 241;
Acres: 36.5;
War: WW I.
Name: Somme American Cemetery;
Location: Bony (Aisne), France;
Interred: 1,844;
Memorialized: 333;
Acres: 14.3;
War: WW I.
Name: St. Mihiel American Cemetery;
Location: Thiaucourt, Meurthe, France;
Interred: 4,153;
Memorialized: 284;
Acres: 40.5;
War: WW I.
Name: Suresnes American Cemetery;
Location: Seine, France;
Interred: 1,565;
Memorialized: 974;
Acres: 7.5;
War: WW I/II.
Mediterranean Region:
Name: Florence American Cemetery;
Location: Florence, Italy;
Interred: 4,402;
Memorialized: 1,409;
Acres: 70.0;
War: WW II.
Name: North Africa American Cemetery;
Location: Carthage, Tunisia;
Interred: 2,841;
Memorialized: 3,724;
Acres: 27.0;
War: WW II.
Name: Rhone American Cemetery;
Location: Draguignan, Var, France;
Interred: 861;
Memorialized: 294;
Acres: 12.5;
War: WW II.
Name: Sicily-Rome American Cemetery;
Location: Nettuno, Italy;
Interred: 7,861;
Memorialized: 3,095;
Acres: 77.0;
War: WW II.
Other:
Name: Corozal American Cemetery;
Location: Panama City, Panama;
Interred: 5,353;
Memorialized: [Empty];
Acres: 16.0;
War: Acquired by Executive Order from the former Panama Canal Zone.
Name: Mexico City American Cemetery;
Location: Mexico City, Mexico;
Interred: 1,563;
Memorialized: [Empty];
Acres: 1.0;
War: Mex Am.
Name: Manila American Cemetery;
Location: Luzon, Phillipines;
Interred: 17,202;
Memorialized: 36,285;
Acres: 152.0;
War: WW II.
Name: Subtotal for Cemeteries:
Interred: 131,075;
Memorialized: 60,314;
Acres: 1,294.5.
25 Federal Memorials, Monuments, And Markers:
Name: East Coast Memorial;
Location: New York City, NY;
Interred: None;
Memorialized: 4,609;
Acres: 0.8;
War: WW II.
Name: Honolulu Memorial;
Location: Honolulu, HI;
Interred: None;
Memorialized: 28,800;
Acres: 1.0;
War: WW II/Korea/Vietnam.
Name: West Coast Memorial;
Location: San Francisco, CA;
Interred: None;
Memorialized: 412;
Acres: 1.3;
War: WW II.
Name: Audenarde Monument;
Location: Audenarde, Belgium;
Interred: None;
Memorialized: None;
Acres: 0.4;
War: WW I.
Name: Bellicourt Monument;
Location: St. Quentin, France;
Interred: None;
Memorialized: None;
Acres: 1.8;
War: WW I.
Name: Brest Naval Monument;
Location: Brest, France;
Interred: None;
Memorialized: None;
Acres: 1.0;
War: WW I.
Name: Cabanatuan Memorial;
Location: Luzon, Phillipines;
Interred: None;
Memorialized: None;
Acres: [Empty];
War: WW II.
Name: Cantigny Monument;
Location: Cantigny, France;
Interred: None;
Memorialized: None;
Acres: 0.4;
War: WW I.
Name: Chateau-Thierry Monument;
Location: Chateau-Thierry, France;
Interred: None;
Memorialized: None;
Acres: 58.9;
War: WW I.
Name: Chaumont Marker;
Location: Chaumont, France;
Interred: None;
Memorialized: None;
Acres: [Empty];
War: WW I.
Name: Gibraltar Naval Monument;
Location: Gibraltar;
Interred: None;
Memorialized: None;
Acres: 0.1;
War: WW I.
Name: Guadalcanal Memorial;
Location: Guadalcanal;
Interred: None;
Memorialized: None;
Acres: 0.5;
War: WW II.
Name: Kemmel Monument;
Location: Ypres, Belgium;
Interred: None;
Memorialized: None;
Acres: 0.2;
War: WW I.
Name: Marine Monument Belleau Wood;
Location: Aisne, France;
Interred: None;
Memorialized: None;
Acres: 199.6;
War: WW I.
Name: Montfaucon Monument;
Location: Montfaucon, France;
Interred: None;
Memorialized: None;
Acres: 9.6;
War: WW I.
Name: Montsec Monument;
Location: Thiaucourt, France;
Interred: None;
Memorialized: None;
Acres: 47.5;
War: WW I.
Name: Papua Marker;
Location: Port Moresby, New Guinea;
Interred: None;
Memorialized: None;
Acres: [Empty];
War: WW II.
Name: Pointe du Hoc Ranger Monument;
Location: St. Laurent-sur-Mer, France;
Interred: None;
Memorialized: None;
Acres: 29.8;
War: WW II.
Name: Saipan Monument;
Location: Saipan, Northern Mariana Islands;
Interred: None;
Memorialized: None;
Acres: [Empty];
War: WW II.
Name: Santiago Surrender Tree;
Location: Santiago, Cuba;
Interred: None;
Memorialized: None;
Acres: [Empty];
War: Spanish American War.
Name: Sommepy Monument;
Location: Sommepy, France;
Interred: None;
Memorialized: None;
Acres: 15.0;
War: WW I.
Name: Souilly Marker;
Location: Souilly, France;
Interred: None;
Memorialized: None;
Acres: [Empty];
War: WW I.
Name: Tours Monument;
Location: Tours, France;
Interred: None;
Memorialized: None;
Acres: 0.5;
War: WW I.
Name: Utah Beach Monument;
Location: Sainte Marie-du-Mont, France;
Interred: None;
Memorialized: None;
Acres: 0.5;
War: WW II.
Name: Western Naval Task Force Memorial;
Location: Casablanca, Morocco;
Interred: None;
Memorialized: None;
Acres: [Empty];
War: WW II.
Subtotal for Memorials:
Interred: 0;
Memorialized: 33,821;
Acres: 368.9.
Grand Total, Cemeteries and Memorials:
Interred: 131,075;
Memorialized: 94,135;
Acres: 1,663.4.
7 Nonfederal Memorials:
Name: 29th Infantry Division Memorial;
Location: Vierville-sur-Mer, France;
War: WW II.
Name:
30th Infantry Division Memorial;
Location: Mortain, France;
War: WW II.
Name: 6th Engineering Special Brigade Memorial;
Location: Vierville-sur-Mer, France;
War: WW II.
Name: 351st Bomb Group Memorial;
Location: Oundle, England;
War: WW II.
Name: 147th Engineer Battalion Monument;
Location: Englesqueville-la-Percee, France;
War: WW II.
Name: 507th Parachute Infantry Regiment Memorial;
Location: Amfreville, France;
War: WW II.
Name: 398th Bomb Group Memorial;
Location: Herdfordshire, England;
War: WW II.
[End of section]
Footnotes:
[1] A material weakness is a significant deficiency, or combination of
significant deficiencies, that result in more than a remote likelihood
that a material misstatement of the financial statements will not be
prevented or detected.
[2] GAO, Financial Audit: American Battle Monuments Commission's
Financial Statements for Fiscal Years 2006 and 2005, GAO-07-321
(Washington, D.C.: Mar. 1, 2007).
[3] Reportable conditions involve matters coming to the auditor's
attention that, in the auditor's professional judgment, should be
communicated because they represent significant deficiencies in the
design or operation of internal control and could adversely affect an
entity's ability to meet key control objectives. In May 2006, the
American Institute of Certified Public Accountants issued Statement on
Auditing Standards (SAS) No. 112, and subsequently made conforming
changes to the Statements on Standards for Attestation Engagements (AT
501). AT 501 eliminated the term reportable condition and it is no
longer used. AT 501 also established standards related to a new
definition for the terms significant deficiency and material weakness,
and the auditor's responsibilities for identifying, evaluating, and
communicating matters related to an entity's internal control over
financial reporting. Under these new standards, the auditor is required
to communicate control deficiencies that are considered to be
significant deficiencies or material weaknesses in internal controls.
[End of section]
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