US Postal Service 2003 Annual Report Download - page 56

54 | 2003 annual report united states postal service
notes to the
financial statements
and postal customers from exposure to biohazardous
material, to sanitize and screen the mail and to replace
or repair postal facilities destroyed or damaged in New
York City as a result of the September 11, 2001, terror-
ist attacks.” Our use of the funds provided by this
appropriation was contingent on the submission of an
emergency preparedness plan to combat the threat of
biohazards in the mail. We submitted the required
Emergency Preparedness Plan in March 2002.
In August 2002, as set forth in our Emergency
Preparedness Plan, Congress appropriated an addi-
tional $87 million to us for emergency expenses to
further protect postal employees and customers from
exposure to biohazardous material and to sanitize and
screen the mail.
All three appropriations are to remain available until
expended for purposes approved by Congress. We are
required to submit quarterly expenditure plans on the obli-
gation as well as continued annual updates of the
Emergency Preparedness Plan. We have submitted all
required plans and updates. Unspent funds that are not
reallocated with Congressional approval are required to be
returned to the United States Treasury.
The appropriations during 2003 and 2002 which
have been expended or committed are as follows (dollars in
millions):
2003 2002
Operating expenses $00-$ 16
Non-operating expenses 177 163
Capital equipment 189 38
Total $366 $217
Detection and filtration systems are being tested and
evaluated and will then be deployed in 2004 and
beyond. The amounts expected to be spent in future
years although we have not been appropriated the
total amount are as follows (dollars in millions)
Building restoration $085
Biohazard detection system 223
Ventilation and filtration 632
Miscellaneous 18
$958
Our Emergency Preparedness expenditures are not
all covered by the appropriations we received. The
Emergency Preparedness expenses for the years
ended September 30 are as follows (dollars in
millions):
2003 2002
Operating expenses:
Personnel costs $012 $073
Total operating costs $012 $073
Nonoperating expenses:
Safety measures $015 $ 128
Research and development 3 5
Building restoration 125 54
Miscellaneous 41 2
Total nonoperating expenses $184 $189
$196 $262
We recognize the appropriations as income in the
year in which the related expenditure is recognized
as an expense or when the government approves
the reimbursement of a previously incurred expense.
The Emergency Preparedness appropriations
revenues recognized during the years ended
September 30 are as follows (dollars in millions):
2003 2002
Personnel costs $00-$016
Safety measures - 121
Research and development 35
Building restoration 135 35
Miscellaneous 39 2
$177 $179
As a result, the funds that had not been spent or real-
located as of September 30, 2003 and 2002 of $406
million and $583 million are reflected in our Balance
Sheets as a non-interest bearing liability and have
been reflected in the 2003 and 2002 Statements of
Cash Flows as a financing activity.
The funds spent in 2002 were for irradiation equip-
ment that did not meet our needs. With the approval
of OMB, six of the eight machines valued at $17
million were transferred to other government and
public agencies, and the manufacturer provided us
with a more powerful machine at no additional cost.
This new machine is valued at $14 million and is to
be deployed at a future date.