Page 58 - Financial Report 2020

PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD

employees. The Board has recognized an Imputed Cost and Imputed Financing Source for
the difference between the estimated service cost and the contributions made by the Board
and its covered employees. The estimated cost of pension benefits is based on rates issued
by OPM.

Employees are entitled to participate in the Federal Employees Group Life Insurance
(“FEGLI”) Program. Participating employees can obtain “basic life” term life insurance, with
the employee paying two-thirds of the cost and the Board paying one-third. Additional
coverage is optional, to be paid fully by the employee. The basic life coverage may be
continued into retirement if certain requirements are met.

OPM administers the FEGLI program and is responsible for the reporting of related
liabilities. Each fiscal year, OPM calculates the U.S. Government’s service cost for the post-
retirement portion of basic life coverage. Because the Board’s contributions to the basic life
coverage are fully allocated by OPM to the pre-retirement portion of coverage, the Board
has recognized the entire service cost of the post-retirement portion of basic life coverage
as an Imputed Cost and Imputed Financing Source.

G. Intragovernmental Assets and Liabilities
Intragovernmental assets and liabilities arise from transactions between the Board and
other federal entities. Fund balance with Treasury comprise the majority of the assets on
the Board’s balance sheet. All other assets result from activity with non-federal sources.
Liabilities represent amounts that are likely to be paid by the Board as a result of
transactions that have already occurred. The accounts payable portion of liabilities consists
of amounts owed to federal agencies and commercial vendors for goods, services, and
other expenses received but not yet paid. Liabilities covered by budgetary or other
resources are those liabilities of the Board for which Congress has appropriated funds, or
funding is otherwise available to pay amounts due.

H. Fund Balance with Treasury
Treasury processes the Board’s receipts and disbursements. The Fund Balance with
Treasury (“FBwT”) is the aggregate amount of the agency’s accounts with Treasury for
which the agency is authorized to liquidate obligations, pay funded liabilities, and make
expenditures. The FBwT is increased through the receipt of non-expenditure Treasury
warrants for appropriations, positive non-expenditure transfers, and other expenditure
inflows of funds. FBwT is reduced through non-expenditure Treasury warrants for
rescissions, negative non-expenditure transfers, disbursements, and other expenditure
cash outflows of funds.

The Board’s FBwT are cash balances from appropriations as of the fiscal year-end from
which the Board is authorized to make expenditures and pay liabilities resulting from
operational activity.

FY 2020 AGENCY FINANCIAL REPORT 49