FINANCIAL_MANAGEMENT_AND_ANALYSIS

FINANCIAL_MANAGEMENT_AND_ANALYSIS - FINANCIAL MANAGEMENT...

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FINANCIAL MANAGEMENT AND ANALYSIS In order to strengthen the integrity for the financial operations and data reliability, DOT produces audited financial statements. The principal financial statements include: the Consolidated Balance Sheets; Consolidated Statement of Net Cost of Operations; Combined Statement of Budgetary Resources; and the Consolidated Statement of Financing. These principal financial statements, in addition to the financial information in the Other Supplemental Information section of the report, summarized the financial activities of the Department. Analysis of Financial Statements An unqualified audit opinion reflects that the agency’s information is reliable, and DOT attained an unqualified audit in FY 2002 from the Office of Inspector General (OIG). DOT had one beginning and four new material weaknesses related to the audit on the financial statements, resulting in 5 ending material weaknesses for FY 2002. The Department made efforts to comply with the requirements of the Federal Managers Financial Integrity Act (FMFIA) and regulations to improve its financial management system. DOT’s management takes responsibility for the objectivity and integrity of the financial information presented in the financial statements contained in this report. Ongoing operations of the Department are subjected to enactment of appropriations. In the previous year, FY 2001, the Department obtained an unqualified audit opinion. Total Consolidated Statements of Net Cost The net cost of DOT operations for FY 2002 was $63 billion, as reflected in the Consolidated Statement of Net Cost as of September 30, 2002. This figure was an increase of over 5 percent compared to FY 2001 cost of operations. The increase was due to a rise in cost for surface and air transportation. However, the cost of maritime transportation decreased by 44 percent or $5.5 billion in FY 2002 compared to FY 2001. From the $63 billion for DOT’s net cost of operations, 63 percent was from surface transportation, 21 percent from air transportation, 11 percent from maritime transportation, about 0.2 percent from crosscutting programs, and four percent from costs not assigned to any particular program. For surface transportation, a large amount of the net cost was from the highway trust fund ($32 billion of
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FINANCIAL_MANAGEMENT_AND_ANALYSIS - FINANCIAL MANAGEMENT...

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