effective internal control, strategic decision making and efficient mission performance.

A summary of key financial data from the AOC’s Balance Sheets and Statements of Net Cost and Budgetary Resources is presented in Table 11. The complete financial statements and audit reports are presented in Section III: Financial Information.

Guide to the Financial Statements 

Federal Government efforts to improve financial transparency and accountability led to the enactment of mandatory uniform accounting and reporting standards for Executive Branch agencies, along with the tools to manage financial resources. Although AOC is a Legislative Branch agency, it has voluntarily implemented policies that comply with the spirit of many Executive Branch requirements as a best business practice. The financial statements and financial data presented herein have been prepared from AOC’s accounting records in conformity with generally accepted accounting principles (GAAP). GAAP, for federal entities, are the standards prescribed by the Federal Accounting Standards and Advisory Board (FASAB). To facilitate analysis, AOC presents its financial highlights as follows:

• Overview of Financial Position: Balance Sheet

• Results of Operations: Statement of Net Cost

• Cumulative Overview: Statement of Changes in Net Position

• Investments to Preserve Our National Treasures: Statement of Budgetary Resources

• Other Information: Schedule of Spending

• Limitation of Financial Statements.

Overview of Financial Position: Balance Sheet

The Balance Sheet provides a snapshot of AOC’s financial position at a fixed point in time. The fiscal year-end Balance Sheet displays amounts of current and future economic benefits owned or available for use (Assets), amounts owed (Liabilities) and the residual amounts (Net Position) at the end of the fiscal year.

Assets

AOC reported on its Balance Sheet total assets of $2.61 billion at the end of FY 2014. This represents an increase of $0.11 billion (4.4 percent) over FY 2013 total assets of $2.50 billion. This increase is primarily due to the $124 million increase in Fund Balance with Treasury (FBWT). The FBWT increase resulted from additional funds appropriated with passage of the FY 2014 Consolidated Appropriations Act. In addition, FY 2013 offered a low point of comparison as AOC operated under a Continuing Resolution in FY 2013 based on FY 2012 funding levels that included budget reductions related to sequestration and a rescission.

Introducing the Principal Financial Statements

Balance Sheet Provides comparative information on AOC’s Assets, Liabilities and Net Position (Unexpended Appropriations and Cumulative Results of Operations). Net Position represents the Net Investment of the U.S. government in AOC’s Assets less Liabilities.

Statement of Net Costs Provides the comparative gross costs incurred by responsibility segment (AOC jurisdiction), net of any exchange or earned revenue from activities. Exchange revenue includes income from steam and chilled water provided to governmental or private entities, gift shop sales, recycling and others. The net cost of operations is prepared on the proprietary basis of accounting and, unlike budgetary accounting, includes costs of services provided by other entities, accruals and non-cash expenses such as depreciation and amortization.

Statement of Changes in Net Position Provides, on a comparative basis, the beginning Net Position, the transactions that affected Net Position during the period and the ending Net Position.

Statement of Budgetary Resources Presents comparative information on the budgetary basis of accounting, including how budgetary resources were made available and their status at the end of the period.

Figure 22 summarizes FY 2014 total assets by component. AOC’s distribution of assets remains largely unchanged from FY 2013. Property, Plant and Equipment (PP&E) remains AOC’s largest asset class, representing 69.7 percent of total assets. PP&E, net of accumulated depreciation, equaled $1.8 billion at fiscal year-end and decreased

FIGURE 22: Summary of Total Assets, See Full Report, Page 47