Part 2. Financial Management

Financial Statements

Consolidated Balance Sheet
As of September 30, 2004 and 2003 (in thousands)

Assets & Liabilities			9/30/04	9/30/03
Assets	Intragovernmental	Fund Balance with Treasury (Note 1 & Note 2)	82,071	153,866
		Investments, Net (Note 1)	-	-
		Accounts Receivable, Net (Note 1 & Note 3)	7,736	4,545
		Other	363	-
	Total Intragovernmental		90,170	158,411
	General Property, Plant & Equipment, Net (Note 1 & Note 4)		385	325
	Other (Note 1)		-	-
	Total Assets		90,555	158,736
Liabilities	Intragovernmental	Accounts Payable (Note 1 and Note 6)	6,154	2,544
		Accrued Payroll and Benefits (Note 1 and Note 6)	243	396
		Deferred Revenue (Note 6)	18,626	11,320
	Total Intragovernmental		25,023	14,260
	Accounts Payable (Note 1 and Note 6)		12,808	10,738
	Accrued Grant Liability (Note 1 & Note 5)		13,927	14,708
	Actuarial FECA Liability (Note 1 and Note 6)		548	569
	Accrued Payroll and Benefits (Note 1 and Note 6)		3,289	2,689
	Total Liabilities		55,595	42,964
Net Position	Unexpended Appropriations		6,908	9,867
	Cumulative Results of Operations		28,052	105,905
	Total Net Position		34,960	115,772
Total Liabilities & Net Position			90,555	58,736

The accompanying notes are an integral part of these statements.

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Gross Cost and Exchange Revenue
For the Year Ending September 30, 2004 (in thousands)

Program	Intragovernmental
	Gross Cost
	Combined	Eliminations	Consolidated
Research on Health Cost, Quality and Outcomes	26,362	-	26,362
Medical Expenditure Panel Survey	8,200	-	8,200
Program Support	451	-	451
OPDIV Totals	35,013	-	35,013

The accompanying notes are an integral part of these statements.

Gross Cost And Exchange Revenue
For the Year Ending September 30, 2004 (in thousands)

Program	Intragovernmental
	Less: Exchange Revenue
	Combined	Eliminations	Consolidated
Research on Health Cost, Quality and Outcomes	189,044	-	189,044
Medical Expenditure Panel Survey	48,798	-	48,798
Program Support	2,667	-	2,667
OPDIV Totals	240,509	-	240,509

The accompanying notes are an integral part of these statements.

Gross Cost And Exchange Revenue
For the Year Ending September 30, 2004 (in thousands)

Program	With the Public
	Less: Exchange Revenue
	Gross Cost	Revenue	Consolidated Net Cost of Operations
Research on Health Cost, Quality and Outcomes	242,699	-	79,987
Medical Expenditure Panel Survey	40,598	-	-
Program Support	2,216	-	-
OPDIV Totals	285,483	-	79,987

The accompanying notes are an integral part of these statements.

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Consolidated Statement of Changes in Net Position
For Fiscal Years Ending September 30, 2004 and 2003 (in thousands)

Balances		2004 Cumulative Results of Operations	2004 Unexpended Appropriations	2004 Consolidated Totals	2003 Consolidated Totals
Beginning Balances (10/1/03 & 10/1/02)		$105,905	$9,867	$115,772	$331,803
Prior period adjustments (+/-)		-	-	-	-
Beginning Balances (10/1/03 & 10/1/02), as adjusted		105,905	9,867	115,772	331,803
Budgetary Resources:	Appropriations received		-	-	-
	Appropriations transferred-in/out (+/-)		-	-	-
	Other adjustments (rescissions, etc) (+/-)		(2,875)	(2,875)	(1,150)
	Appropriations used	84	(84)	-	-
	Nonexchange revenue			-	-
	Donations and forfeitures of cash and cash equivalents	26		26	102
	Transfers-in/out without reimbursement (+/-)	-		-	-
	Other budgetary financing resources (+/-)	-		-	-
Non-Budgetary Resources:	Donations and forfeitures of property	-		-	-
	Transfers-in/out without reimbursement (+/-)	-		-	-
	Imputed financing from costs absorbed by others	2,024		2,024	1,767
	Other non-budgetary financing resources (+/-)	-		-	-
Total Financing Sources		2,134	(2,959)	(825)	719
Net Cost of Operations (+/-)		79,987		79,987	216,750
Ending Balances		$28,052	$6,908	$34,960	$115,772

The accompanying notes are an integral part of these statements.

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Combined Statement of Budgetary Resources
For the Fiscal Years Ending September 30, 2004 and 2003 (in thousands)

Budgetary Resources & Relationship of Obligations to Outlays				2004 Combined Total	2003 Combined Total
Budgetary Resources	1. Budget Authority	1A. Appropriations received		-	-
		1B. Borrowing authority		-	-
		1C. Contract authority		-	-
		1D. Net transfers (+/-)		-	-
		1E. Other		25	100
	2. Unobligated Balances - Beginning of period	2A. Beginning of Period		25,406	22,737
		2B. Net transfers, actual (+/-)		-	-
		2C. Anticipated transfers balances (+/-)		-	-
	3. Spending Authority from Offsetting Collections	3A. Earned	1. Collected	316,144	298,011
			2. Receivable from Federal sources	3,190	4,545
		3B. Change in unfilled customer orders	1. Advance received	(64,721)	(188,249)
			2. Without advance from Federal sources	76,267	218,149
		3C. Anticipated for rest of year, without advances		-	-
		3D. Transfers from trust funds		-	-
		3E. Subtotal		330,880	332,456
	4. Recoveries of Prior Year Obligations	4A. Actual		2,874	939
		4B. Anticipated		-	-
	5. Temporarily not available pursuant to Public Law			-	-
	6. Permanently not available (-)			(2,874)	(1,156)
	7. Total Budgetary Resources			356,311	355,076
Status of Budgetary Resources	8. Obligations Incurred	8A. Direct		1,818	(2,569)
		8B. Reimbursable		333,885	332,239
		8C. Subtotal		335,703	329,670
	9. Unobligated Balances - Available	9A. Apportioned		16,384	22,519
		9B. Exempt from apportionment		25	100
		9C. Other available		-	-
	10. Unobligated Balances - Not Available			4,199	2,787
	11. Total Status of Budgetary Resources			356,311	355,076
Relationship of Obligations to Outlays	12. Obligated Balance, Net - Beginning of Period			136,128	341,939
	13. Obligated Balance Transferred, Net (+/-)			-	-
	14. Obligated Balance, Net - End of Period	14A. Accounts receivable		(7,736)	(4,545)
		14B. Unfilled customer orders from Federal sources		(295,216)	(218,949)
		14C. Undelivered orders		334,025	345,463
		14D. Accounts payable		34,106	14,159
	15. Outlays	15A. Disbursements		318,969	312,208
		15B. Collections (-)		(246,071)	(110,122)
		15C. Subtotal		72,898	202,086
	16. Less: Offsetting receipts			-	-
	17. Net Outlays			72,898	202,086

The accompanying notes are an integral part of these statements.

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Consolidated Statement of Financing
For the Fiscal Years Ending September 30, 2004 and 2003 (in thousands)

Resources			2004 Consolidated Total	2003 Consolidated Total
Resources Used to Finance Activities	Budgetary Resources Obligated	Obligations Incurred	$335,703	$329,670
		Less: Spending Authority from Offsetting Collections and Recoveries	333,754	333,395
		Obligations Net of Offsetting Collections and Recoveries	1,949	(3,725)
		Less: Offsetting Receipts	-	-
		Net Obligations	1,949	(3,725)
	Non-Budgetary Resources	Imputed Financing From Costs Absorbed by Others	2,024	1,767
		Net Non-Budgetary Resources Used to Finance Activities	2,024	1,767
		Total Resources Used to Finance Activities	3,973	(1,958)
Resources Used to Finance Items Not Part of the Net Cost of Operations	Change in Budgetary Resources Obligated for Goods, Services, and Benefits Ordered but Not Yet Provided		5,460	(23,044)
	Budgetary Offsetting Collections and Receipts That Do Not Affect Net Cost of Operations Other Budgetary Collection and Receipts		26	102
	Resources that Finance the Acquisition of Assets or Liquidation of Liabilities		-	-
	Other Resources or Adjustments to Net Obligated Resources That Do Not Affect Net Cost of Operations		(78,145)	(201,904)
	Total Resources Used to Finance Items Not Part of the Net Cost of Operations		(72,659)	(224,846)
	Total Resources Used to Finance the Net Cost of Operations		76,632	222,888
Components of Net Cost of Operations That Will Not Require or Generate Resources in the Current Period	Components Requiring or Generating Resources in Future Periods	Increase in Annual Leave Liability	107	-
		Total Components of Net Cost of Operations That Will Require or Generate Resources in Future Periods	107	-
	Components Not Requiring or Generating Resources	Depreciation and Amortization	164	76
		Losses or (Gains) from Revaluation of Assets and Liabilities	-	-
		Other	3,084	(6,214)
		Total Components of Net Cost of Operations That Will Not Require or Generate Resources	3,248	(6,138)
		Total Components of Net Cost of Operations That Will Not Require or Generate Resources in the Current Period	3,355	(6,138)
		Net Cost of Operations	$79,987	$216,750

The accompanying notes are an integral part of these statements.

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