Page 64 - Financial Report 2020

PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD

NOTE 8 - LEASES
Operating Leases

PCLOB occupies office space under a lease agreement that is accounted for as an operating
lease. The lease term began on April 30, 2018 and expires on April 29, 2028. The total
operating lease expense relating to this agreement for fiscal years 2020 and 2019 was
$943,349 and $282,736, respectively. Below is a schedule of future payments for the term
of the lease.

Fiscal Year Total
2021 $ 959,051
2022 969,409
2023 998,571
2024 1,035,451
2025 1,046,770
2026 thru 2028 2,732,196
Total Future Payments $ 7,741,448

The operating lease amount does not include estimated payments for leases with annual
renewal options.

NOTE 9 - INTER-ENTITY COSTS

PCLOB recognizes certain inter-entity costs for goods and services that are received from
other federal entities at no cost or at a cost less than the full cost. Consistent with
accounting standards, certain costs of the providing entity that are not fully reimbursed are
recognized as imputed cost and are offset by imputed revenue. Such imputed costs and
revenues relate to business-type activities, employee benefits and claims to be settled by
the Treasury Judgement Fund. However, unreimbursed costs of goods and services other
than those identified are not included in our financial statements.

PCLOB recognizes as inter-entity costs the amount of accrued pension and post-retirement
benefit expenses for current employees. The assets and liabilities associated with such
benefits are the responsibility of the administering agency, OPM. For the periods ended
September 30, 2020 and 2019, respectively, inter-entity costs were as follows:

2020 2019
Office of Personnel Management $ 163,016 $ 143,526
Treasury Judgment Fund 74,103 -
Total Imputed Financing Sources $ 237,119 $ 143,526

FY 2020 AGENCY FINANCIAL REPORT 55