Fort George G. Meade, Maryland

Management’s review concluded that AOC is not responsible for the clean-up and remediation of previous environmental contamination on the approximately 100 acres of land at Fort George G. Meade, Maryland, which the U.S. Army transferred to AOC. The Army is responsible for the environmental clean-up of any previous contamination under CERCLA. AOC understands that the Army is actively monitoring existing contamination on the entire site, including the land transferred to AOC, and is pursuing appropriate remediation of this contamination.

Note 14: Leases

As of September 30, 2014, AOC was committed to various non-cancelable leases primarily covering administrative office space and storage facilities, motor vehicles, and office equipment. Many of these leases contain escalation clauses tied to inflationary and tax increases, and renewal options. At the end of the current reporting period, AOC had one real property capital lease for the Senate Sergeant of Arms Warehouse facility in Landover, MD.

Capital Leases

Capital leases have initial or remaining non-cancelable lease terms in excess of one year and the capital lease liability is amortized over the term of the lease. As of September 30, 2014 and 2013, the present value of the future minimum lease payments required by those leases identified as capital leases is as follows:

Table, See Full Report, Page 125

Operating Leases

AOC currently has leases and occupancy agreements with the General Services Administration (GSA) and leases with other commercial vendors for office and storage space, plus rentals of equipment and vehicles. These leases expire in various years.

As of September 30, 2014, the aggregate of future pay- ments due under non-cancelable operating leases and occupancy agreements are as follows:

Table, See Full Report, Page 125

Note 15: Custodial and Accrued Liabilities

As of September 30, 2014 and 2013, these liabilities consist of accrued accounts payable (with the public) and miscellaneous receipts that are to be forwarded to Treasury (intragovernmental custodial liabilities). Miscelleanous receipts include, but are not limited to, flag-flying fees, rent from the Monocle restaurant and steam and chilled water collections over the Congressional cap. In FY 2014, AOC recorded an additional accounts payable accrual of $16.9 million to recognize the estimated value of work performed by and payable to GSA. This work was per- formed under reimbursable work agreements with GSA for tenant improvements to space occupied in the Thomas P. O’Neill, Jr. Federal Building.

These liabilities, which are classified as current as of September 30, 2014 and 2013, are as follows:

Table, See Full Report, Page 125