FY 2006 Performance and Financial Highlights

PERFORMANCE HIGHLIGHTS

Overall performance results for the Department show that of the 131 performance targets, 86 percent were at or above target, six percent slightly below target, and eight percent not on target. These results are slightly lower than last year, when 89 percent were at or above target. Below are the performance results by strategic goal and financial highlights. Achieving results in each of the strategic goals furthers the Department’s mission. This summary provides a snapshot of the targeted achievements. Discussions and highlights of successes can be found in the performance discussions of each performance goal.

OBLIGATIONS AND FULL TIME EQUIVALENTS (FTEs) BY STRATEGIC GOAL
For the Years Ending September 30, 2006 and 2005
(Dollars In Millions) ¹

	Percentage Change	FY 2006	FY 2005
Obligations by Strategic Goal:
Strategic Goal 1: Provide the Information and Tools to Maximize U.S. Competitiveness and Enable Economic Growth for American Industries, Workers, and Consumers	+3%	$1,936.0	$1,888.5
Strategic Goal 2: Foster Science and Technological Leadership by Protecting Intellectual Property, Enhancing Technical Standards, and Advancing Measurement Science	+11%	$2,719.4	$2,456.5
Strategic Goal 3: Observe, Protect, and Manage the Earth’s Resources to Promote Environmental Stewardship	+11%	$4,507.3	$4,064.0
Management Integration Goal: Achieve Organizational and Management Excellence	-9%	$   71.8	$   79.2
TOTAL OBLIGATIONS	+9%	$9,234.5	$8,488.2
Full Time Equivalents (FTEs) by Strategic Goal:
Strategic Goal 1: Provide the Information and Tools to Maximize U.S. Competitiveness and Enable Economic Growth for American Industries, Workers, and Consumers	+1%	12,017	11,877
Strategic Goal 2: Foster Science and Technological Leadership by Protecting Intellectual Property, Enhancing Technical Standards, and Advancing Measurement Science	+6%	10,582	10,022
Strategic Goal 3: Observe, Protect, and Manage the Earth’s Resources to Promote Environmental Stewardship	+8%	12,896	11,918
Management Integration Goal: Achieve Organizational and Management Excellence	+1%	295	292
TOTAL FTEs	+5%	35,790	34,109
1Performance obligations may differ from obligations shown in financial reports because they do not include one-time funds for unexpected events (e.g., Katrina) or reimbursable work that cannot be planned. In these cases, these obligations are not factored into bureau performance amounts. (back)

FINANCIAL HIGHLIGHTS

CONDENSED BALANCE SHEETS
As of September 30, 2006 and 2005
(Dollars in Thousands)

	Percentage Change	FY 2006	FY 2005
ASSETS:
Fund Balance with Treasury	+3%	$ 7,231,997	$ 7,041,269
General Property, Plant, and Equipment, Net	+8%	5,299,093	4,927,707
Loans Receivable and Related Foreclosed Property, Net	+12%	467,985	417,509
Accounts Receivable, Net	+15%	145,906	126,754
Other	-1%	215,437	216,937
TOTAL ASSETS	+5%	$13,360,418	$12,730,176
LIABILITIES:
Unearned Revenue	+8%	$ 1,390,284	$ 1,287,749
Federal Employee Benefits	+4%	589,964	569,114
Accounts Payable	-9%	364,250	399,957
Accrued Grants	+8%	420,588	388,679
Debt to Treasury	+18%	422,071	357,581
Accrued Payroll and Annual Leave	+5%	370,240	351,698
Other	-18%	333,519	407,211
TOTAL LIABILITIES	+3%	$ 3,890,916	$ 3,761,989
NET POSITION:
Unexpended Appropriations	+2%	$ 4,306,421	$ 4,238,321
Cumulative Results of Operations	+9%	5,163,081	4,729,866
TOTAL NET POSITION	+6%	$ 9,469,502	$ 8,968,187
TOTAL LIABILITIES AND NET POSITION	+5%	$13,360,418	$12,730,176

CONDENSED STATEMENTS OF NET COST
For the Years Ended September 30, 2006 and 2005
(Dollars in Thousands)

	Percentage Change	FY 2006	FY 2005
Strategic Goal 1: Provide the Information and Tools to Maximize U.S. Competitiveness and Enable Economic Growth for American Industries, Workers, and Consumers	+9%	$1,816,282	$1,672,505
Strategic Goal 2: Foster Science and Technological Leadership by Protecting Intellectual Property, Enhancing Technical Standards, and Advancing Measurement Science	-24%	707,220	931,507
Strategic Goal 3: Observe, Protect, and Manage the Earth’s Resources to Promote Environmental Stewardship	+5%	3,893,386	3,708,116
TOTAL NET COST OF OPERATIONS	+2%	$6,416,888	$6,312,128
Total Gross Costs	+5%	$8,824,389	$8,438,306
Total Earned Revenue	+13%	(2,407,501)	(2,126,178)
Total Net Cost of Operations	+2%	$6,416,888	$6,312,128

REVIEW OF FINANCIAL POSITION AND RESULTS

Assets

The Department had total assets of $13.4 billion as of September 30, 2006. This represents an increase of $630 million (five percent) over the previous year’s total assets of $12.7 billion. The increase is primarily the result of Fund Balance with Treasury increasing by $191 million, which primarily resulted from higher Appropriations Received of $287 million or 4.4%; and General Property, Plant, and Equipment, Net increasing by $371 million, which primarily resulted from increase in Construction-Work-in-Progress of $640 million, and a decrease of $287 million in Satellites/Weather System Personal Property.

Liabilities

The Department had total liabilities of $3.9 billion as of September 30, 2006. This represents an increase of $128.9 million (3.4 percent) over the previous year’s total liabilities of $3.8 billion. The increase is primarily the result of Unearned Revenue increasing by $102.5 million, which primarily resulted from increased patent and trademark application and user fees that are pending action; and the result of Debt to Treasury increasing by $64.5 million primarily due to increase in crab buyback program loans.

Net Cost of Operations

In FY 2006, Net Cost of Operations amounted to $6.4 billion, which consists of Gross Costs of $8.8 billion less Earned Revenue of $2.4 billion. Strategic Goal 1 includes Gross Costs of $2.1 billion related to providing information and tools to maximize U.S. competitiveness and enable economic growth. Strategic Goal 2 includes Gross Costs of $2.5 billion related to fostering science and technological leadership by protecting intellectual property, enhancing technical standards, and advancing measurement science. Strategic Goal 3 includes Gross Costs of $4.2 billion related to observing, protecting, and managing the Earth’s resources to promote environmental stewardship.