Page 60 - Financial Report 2020

PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD

offsetting collections, recoveries of unexpired budget authority through downward
adjustments of prior year obligations, and unobligated balances of budgetary resources at
the beginning of the year. Unfunded liabilities are not considered to be covered by such
budgetary resources. Examples of unfunded liabilities are actuarial liabilities for future
Federal Employees’ Compensation Act payments and annual leave. The Government, acting
in its sovereign capacity, can abrogate liabilities arising from other than contracts.

L. Net Position
Net position consists of unexpended appropriations and cumulative results of operations.
Unexpended appropriations represent amounts of budget authority to include unobligated
or obligated balances not rescinded or withdrawn. Cumulative results of operations are
comprised of the following: (1) the difference between revenues and expenses, (2) the net
amount of transfers of assets in and out without reimbursement, and (3) donations, all
since inception of the fund(s).

M. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to
make certain estimates and assumptions. These estimates and assumptions affect the
reported amounts of assets, liabilities (including contingent liabilities), revenues, financing
sources, expenses and obligations incurred during the reporting period. These estimates
are based on management’s best knowledge of current events, historical experience and
other assumptions that are believed to be reasonable under the circumstances. Estimates
are subject to a wide range of variables, including assumptions on future economic and
financial events. Accordingly, actual results may differ from those estimates.

N. Classified Activities

Accounting standards require all reporting entities to disclose that accounting standards
allow certain presentations and disclosures to be modified, if needed, to prevent the
disclosure of classified information.

NOTE 2 - FUND BALANCE WITH TREASURY

Fund Balance with Treasury account balances as of September 30, 2020 and 2019, were as
follows:

2020 2019
Status of Fund Balance with Treasury:
Unobligated Balance
Available $ 3,433,198 $ 5,077,538
Unavailable 16,941,107 13,131,613
Obligated Balance Not Yet Disbursed 358,935 3,829,717
Total $ 20,733,240 $ 22,038,868

FY 2020 AGENCY FINANCIAL REPORT 51