Page 57 - Financial Report 2020

PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD

Earned revenues as reported on the Statement of Net Cost represent revenue from services
provided to another governmental agency through reimbursable agreements. No revenues
were earned by PCLOB outside of federal sources in FY 2020 or 2019.

In certain instances, operating costs of the Board are paid out of funds appropriated to
other federal agencies. In accordance with Statement of Federal Financial Accounting
Standards (“SFFAS”) No. 5, Accounting for Liabilities of the Federal Government, all expenses
of a federal entity should be reported by that agency regardless of whether the agency will
ultimately pay those expenses. Amounts for certain expenses of the Board, which will be
paid by other federal agencies, are recorded in the Statement of Net Cost.

A related amount is recognized in the Statement of Changes in Net Position as an imputed
financing source. The Board records imputed expenses and financing sources for employee
retirement plan contributions, group term life insurance, and health benefit costs, which
are paid by the Office of Personnel Management (“OPM”).

F. Personnel Compensation and Benefits

Salaries and wages of employees are recognized as accrued payroll expenses and related
liabilities as earned. These expenses are recognized as a funded liability when accrued.
Annual leave is accrued as it is earned by employees and is included in personnel
compensation and benefit costs. An unfunded liability is recognized for earned but unused
annual leave since from a budgetary standpoint, this annual leave will be paid from future
appropriations when employees use the leave. The amount accrued is based upon current
pay rates for employees. Sick leave and other types of leave that are not vested are
expensed when used and no future liability is recognized for these amounts.

The Board’s employees participate in the Federal Employees Retirement System (“FERS”)
retirement program which became effective on January 1, 1987. The Board and its
employees both contribute to this system. Although the Board funds a portion of the
benefits under FERS and makes the necessary payroll withholdings, it does not report
assets associated with this benefit plan in accordance with SFFAS 5.

For FERS employees covered under FERS prior to January 1, 2013, the Board contributes
an amount equal to 16 percent of the employees’ basic pay to the plan. FERS employees
covered under FERS-RAE or FRAE hired on or after January 1, 2013, pay a higher
percentage of their pay for their retirement, and thus the Board contributes only 14.2
percent of each employee’s basic pay to the plan.
Employees are eligible to participate in the Thrift Savings Plan (“TSP”). The TSP is a defined
contribution retirement plan intended to supplement the benefits provided under FERS.
The Board contributes an amount equal to 1 percent of the employee’s basic pay to the TSP
and matches employee contributions up to an additional 4 percent.
OPM is responsible for reporting assets, accumulated plan benefits, and unfunded
liabilities, if any, applicable to FERS employee’s government-wide, including the Board’s

FY 2020 AGENCY FINANCIAL REPORT 48