Page 33 - Financial Report 2020

PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD

STATEMENT OF NET COST

The Statement of Net Cost reports the agency’s net cost of operations for a given fiscal year.
Net cost of operations is the difference between the costs incurred minus earned revenue
attributed to and permitted to be offset against these costs. The agency’s net cost of
operations increased $1 million (or 15%) from $6.5 million in FY 2019 to $7.5 million in FY
2020. The increase is mostly due to an increase in gross costs. Expenses were attributable
to strategic programs enhancement and employee payroll and benefits.

PCLOB’s earned revenues come from reimbursable agreements with other federal agencies
for temporary detail assignments of PCLOB employees. Earned revenues decreased
approximately $115 thousand (or 61%), from approximately $190 thousand in FY 2019 to
nearly $75 thousand in FY 2020, primarily due to shorter reimbursable detail assignments
in FY 2020.

STATEMENT OF CHANGES IN NET POSITION

The Statement of Changes in Net Position identifies the difference between all financing
sources available to and used by the PCLOB to support its net cost of operations. Increases
or decreases in an organization’s net financial position is the sum of two components:
cumulative results of operations and unexpended appropriations. Each component is
displayed separately to facilitate more detailed understanding of the changes in net
position as a whole.

The Board’s net position as of September 30, 2020, shown on both the Balance Sheet and
the Statement of Changes in Net Position, was $23.1 million, an increase of approximately
$900 thousand (or 4%) from FY 2019’s net position of $22.2 million. This change was due
to an increase of $1.5 million (or 7%) in unexpended appropriations and a decrease of
approximately $600 thousand (or 31%) to the cumulative results of operations. The
PCLOB’s overall increase in net position stems from an increase in appropriations of $5
million in FY 2019 to $8.2 million in FY 2020.

FY 2020 AGENCY FINANCIAL REPORT 24