FIGURE 28: Net Cost of Operations by Strategic Goal, See Full Report Page 50

Resources Used to Achieve Strategic Goals

To accomplish its mission, AOC’s Strategic Vision identifies four strategic goals. Figure 28 displays the breakdown of the agency’s cost expenditures by strategic goal for FY 2014. AOC utilizes an activity-based cost framework to obtain the cost per goal. Under this framework, a series of cost accounting codes are used to record direct labor, material and contract costs. All direct costs are crosswalked to its respective goal. Indirect costs are assigned to an overhead pool and allocated among the four goals to arrive at the total cost per strategic goal.

The significant majority of AOC’s expenditures 94.0 percent) were attributed to achieving Strategic Goal 3—Awe-Inspiring Facilities (72.7 percent) and toward Strategic Goal 4—Extraordinary Services (21.3 percent). These areas form the core of AOC’s mission to serve the Congress and the Supreme Court, preserve America’s Capitol and inspire memorable experiences for its visitors. The remainder of the agency’s resources was devoted to achieving Strategic Goals 1 and 2 (One Team, One Mission and Innovative and Empowered Workforce)—support goals that help AOC implement the business practices necessary to accomplish its mission effectively and efficiently. Though only a small portion of its resources are committed to Strategic Goals 1 and 2, AOC management believes these expenditures are critical to forming a culture of teamwork and innovation.

In its FY 2014 budget cycle, AOC continued to refine a zero-based budget philosophy, strategy and process to develop its budget requirements. In efforts to anticipate future funding challenges, the AOC significantly changed how it prioritized spending requirements, and developed payroll tools, analyzed efficiencies, and strategies to prepare for impending budget impacts such as a year-long continuing resolution. AOC also used effective costing methodologies and project justifications to focus on investing limited resources and prioritizing projects and programs to address its most pressing obligations. In conjunction with judiciously requesting funding for those projects that were most urgent, AOC continued to capitalize on cost avoidance measures implemented in recent years.

Earned Revenues by Source

Two of AOC’s major sources of revenue for the fiscal year ending September 30, 2014 are intra-governmental reimbursements from the Judicial Branch for facility operations in the Supreme Court and Thurgood Marshall Federal Judiciary Building ($33.1 million) and reimbursements to the AOC Utilities and Capitol Power Plant for steam and chilled water ($9.0 million). These amounts account for over 88 percent of AOC’s total earned revenues. The remainder of earned revenues is comprised of sources that are earned year-to-year and are depicted in Figure 29.

CVC gift shop sales and food service commissions, along with rent and recycling proceeds from across Capitol Hill make up the majority of these other revenue categories. AOC is permitted to invest the recycling program proceeds into programs or activities to improve the environment or promote energy savings through its Recycling Program Revolving Fund. In FY 2014, Congress passed legislation to extend this fund from a limited five-year life to a fund with an indefinite life.

Cumulative Overview: Statement of Changes in Net Position

The Statement of Changes in Net Position identifies all financing sources available to, or used by, AOC to support its net cost of operations and also identifies the net change in its financial position. Net position is the sum of two components: Cumulative Results of Operations

FIGURE 29: Earned Revenues by Source, See Full Report Page 50