Fiscal Year 2010 CBP Annual Financial Report - CBP.gov

Notes to Financial Statements
13. Accrued Payroll and Benefits
The payroll and benefits liability as of September 30, 2010 and 2009 consists of the following (in thousands):
2010 2009
Accrued Funded Payroll and Benefits $ 298,963 $ 255,003
Accrued Unfunded Leave 390,221 329,376
Actuarial FECA Liability 773,051 715,033
Total $ 1,462,235 $ 1,299,412
Actuarial workers compensation liability claims incurred for the benefit of CBP employees under FECA are administered
by DOL and are ultimately paid by CBP. Future workers’ compensation estimates are generated from an
application of actuarial procedures developed by the DOL.
14. Environmental & Disposal Liabilities
CBP is required to remediate contamination in accordance with Federal laws in order to protect human health and
the environment. These laws include the Comprehensive Environmental Response, Compensation and Liability
Act, the Resource Conservation and Recovery Act, the Oil Pollution Act, the Clean Water Act, the Toxic Substances
Control Act, and the Clean Air Act.
Estimated environmental liabilities include expected future cleanup costs and those associated with site characterization,
sampling, risk assessment, removal of contamination sources, treatment, containment, and monitoring.
These costs are recognized and disclosed in accordance with SFFAS No. 5; SFFAS No.6; Technical Releases No.
2, 10, and 11, and DHS policy directives and memorandum. CBP records the estimated cost of environmental
liabilities that are probable and measurable to the current operating period. For those probable sites where future
liability is unknown or no reasonable estimate of the cost to clean up a particular site could be made, the cost of
studies necessary to evaluate response or remediation requirements is reported.
CBP’s environmental cleanup liability as of September 30, 2010 and 2009 was $15.7 million and $13.3 million,
respectively. There were no material changes in total estimated cleanup costs due to changes in law or technology.
Notable changes in estimated liabilities include:
• Estimates of liability are presented in FY 2010 dollars and have been appropriately escalated to account for
inflation.
• Inventory of liabilities modified due to Due Care Review process.
• The estimate for environmental remediation increased in FY 2010 due to a change in long term monitoring
requirements.
Financial Section
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