OESC FINANCIAL OVERVIEWFEBRUARY, 2005

2

TABLE OF CONTENTS1. HOW OESC IS FUNDED2. OTHER SOURCES OF

REVENUE3. OESC EXPENDITURES4. UNEMPLOYMENT

INSURANCE ACTIVITIES

3

OESC FUNDING-GRANTS

1. Unemployment Insurance

2. Employment & Training

3. Employment Services

4. Economic Research & Analysis

OESCEXECUTIVE

OFFICE

EMPLOYMENTSERVICES

UNEMPLOYMENTINSURANCE

EMPLOYMENT & TRAINING

INFORMATIONTECHNOLOGY

ADMINISTRATION& FINANCE

RESEARCH &ANALYSIS

4

Other Sources of Revenue

Reed-Act Redistribution

Penalty & Interest

Program Income

5

OESC FUNDING

DESCRIPTION OF MAJOR GRANTS FY2004 FY2003 VARIANCE

UNEMPLOYMENT INSURANCE $20,215,125 $19,782,086 $433,039

EMPLOYMENT AND TRAINING $8,216,880 $6,681,849 $1,535,031

EMPLOYMENT SERVICES $10,129,718 $12,148,545 ($2,018,827)

RESEARCH AND ANALYSIS $1,703,439 $1,696,413 $7,026

REEDACT APPROPRIATION $4,500,000 $6,219,458 ($1,719,458)

PENALTY AND INTEREST FUND $1,502,718 $1,298,764 $203,954

$46,267,880 $47,827,115 ($1,559,235)

6

YEAR TO DATE COMPARATIVE ANALYSIS

DESCRIPTION YEAR 2004 YEAR 2003 VARIANCE % VAR YEAR 2002

DIRECT PERSONNEL SERVICES $19,298,162.29 $20,040,667.29 ($742,505.00) -3.70% $20,048,513.56

ANNUAL LEAVE TAKEN $1,686,964.42 $1,633,797.21 $53,167.21 3.25% $1,711,895.29

OTHER PERSONNEL SERVICES $2,078,722.56 $1,976,125.29 $102,597.27 5.19% $1,922,997.18

TOTAL PERSONNEL SERVICES $23,063,849.27 $23,650,589.79 ($586,740.52) -2.48% $23,683,406.03

PERSONNEL BENEFITS $9,514,031.05 $7,860,927.60 $1,653,103.45 21.03% $7,701,146.69

TOTAL PS/PB$32,577,880.3

2 $31,511,517.3

9 $1,066,362.93 3.38% $31,384,552.72

     

SUPPLIES $859,554.21 $632,765.99 $226,788.22 35.84% $887,380.15

COMMUNICATIONS $1,440,629.94 $1,768,240.18 ($327,610.24) -18.53% $1,726,015.34

TRAVEL $689,541.65 $659,802.90 $29,738.75 4.51% $707,529.19

EQUIPMENT EXPENSE $3,331,405.69 $2,876,787.40 $454,618.29 15.80% $3,458,088.44

PREMISES EXPENSE $1,998,344.56 $2,047,635.30 ($49,290.74) -2.41% $2,041,618.44

SERVICES $1,852,261.98 $1,929,096.32 ($76,834.34) -3.98% $3,196,802.14

OTHER $362,353.40 $303,319.84 $59,033.56 19.46% $352,688.42

TOTAL NPS $10,534,091.43 $10,217,647.93 $316,443.50 3.10% $12,370,122.12

TOTAL EXPENDITURES$43,111,971.7

5 $41,729,165.3

2 $1,382,806.43 3.31% $43,754,674.84

7

Unemployment Insurance

The Largest Grant Supports Approximately

401 OESC Employees. Pays about 51% of

OESC Administrative Expenditures. Largest Block of Employees works in Field Audit, Call Centers, Appeals, Benefits, & Contribution Units.

8

UI FUNDING

DESCRIPTION FY2005 FY2004 FY2003 FY2002

Unemployment Insurance Base

$18,408,448 $17,600,390 $17,111,572 $18,314,728

Contingency Revenue

$1,500,000 $1,900,327 $2,781,777 $2,315,299

Extended Benefit $168,752 $1,981,160 $1,168,637 $0.00

TOTAL UI FUNDING

$20,077,200 $21,481,877 $21,061,986 $20,630,027

9

Employment & Training

Youth Dislocated Worker Adult Title V Disability Navigator Grant

10

WORKFORCE INVESTMENT ACT

DESCRIPTION FY2005 FY2004 FY2003

WIA $26,724,882 $21,361,908 $24,165,712

PASS THROUGH $20,471,594 $16,696,246 $19,053,467

GOVERNORS 15% $4,008,286 $3,204,286 $3,624,857

RAPID RESPONSE $2,245,002 $1,461,376 $1,487,388

STATE WIA ADMINISTRATION

$6,253,288 $4,665,662 $$5,112,245

11

EMPLOYMENT SERVICE

Has been on the decline for the last 10 years. Primary support of the One Stop Centers. Maybe combined with WIA based on the President’s

proposed budget. Supports approximately 215 FTE’S The primary grants are

Wagner PyserLVERDVOPTANFRe-Employment Services

12

EMPLOYMENT SERVICES

Description PY2005 PY2004 PY2003

Wagner Pyser $7,672,154 $7,713,677 $7,925,054

LVER $1,200,000 $1,462,000 $1,516,000

DVOP $689,728 $920,000 $809,000

TANF $255,572 $1,035,000 $1,326,000

Re-Employment Services

$198,014 $375,320 $359,867

TOTAL $10,015,468 $11,505,997 $11,935,975

13

11 YEAR TRUST FUND ACTIVITIES TRUST FUND SUMMARY 1/1/1994 TO 12/31/04

   

BEGINNING TRUST FUND BALANCE 1/1/1994 $437,335,223.55

EMPLOYER CONTRIBUTIONS $1,176,421,522.32

INTEREST INCOME RECEIVED $373,141,881.25

REED ACT RECEIVED $82,608,062.62

ADDITIONS TO THE TRUST FUND $1,632,171,466.19

   

TOTAL BENEFIT PAYMENTS ($1,614,362,778.23)

REED ACT USED ($8,002,968.39)

CMIA AND OTHER CORRECTIONS ($21,686.99)

DEDUCTIONS FROM THE TRUST FUND ($1,622,387,433.61)

ENDING TRUST FUND BALANCE 12/31/2004 $447,119,256.13

14

EMPLOYER CONTRIBUTIONS

MONTH 2004 2003 2002 2001 2000 1999

JANUARY $4,462,535 $3,173,650 $2,185,810 $1,410,331 $1,890,031 $2,020,829

FEBRUARY $11,871,638 $6,569,813 $4,321,279 $4,608,731 $4,788,818 $5,087,553

MARCH $775,713 $870,423 $210,581 ($154,977) $602,363 $258,289

APRIL $41,624,703 $21,782,479 $14,459,344 $6,600,598 $5,616,471 $6,677,269

MAY $87,437,206 $55,315,191 $35,403,978 $18,994,755 $15,121,773 $14,733,176

JUNE $3,928,985 $3,377,841 $1,001,328 $144,210 $653,415 $395,246

JULY $25,132,096 $15,360,921 $9,100,993 $4,107,002 $3,715,963 $4,989,496

AUGUST $53,329,604 $25,887,676 $15,196,372 $9,392,644 $7,558,109 $8,690,794

SEPTEMBER $1,679,190 $941,714 $565,572 $478,039 $262,747 $214,226

OCTOBER $12,266,406 $7,946,325 $4,740,161 $2,522,959 $3,221,173 $2,698,777

NOVEMBER $31,660,549 $13,178,701 $8,186,664 $5,878,556 $7,368,952 $5,660,466

DECEMBER $1,208,507 $935,302 $657,794 $263,383 $238,175 $290,298

TOTAL $275,377,134 $155,340,034 $96,029,878 $54,246,230 $51,037,988 $51,716,418

PERCENT CHANGE $275,377,134 $155,340,034 77.27%

15

BENEFIT PAYMENT TREND

MONTH 2004 2003 2002 2001 2000 1999

JANUARY $20,064,194 $22,719,365 $20,005,322 $13,743,264 $10,380,144 $11,282,521

FEBRUARY $20,104,156 $20,143,882 $19,283,932 $11,855,560 $7,026,731 $10,215,540

MARCH $20,631,884 $26,878,692 $23,353,383 $13,788,885 $8,837,205 $12,413,744

APRIL $16,274,411 $23,446,935 $20,818,122 $12,767,089 $8,378,714 $10,201,843

MAY $17,691,870 $19,529,434 $18,403,230 $10,266,059 $6,840,733 $10,142,229

JUNE $17,365,473 $30,272,484 $21,413,452 $15,598,005 $8,968,338 $10,797,774

JULY $14,051,310 $24,404,296 $21,012,897 $18,646,347 $9,876,135 $10,118,781

AUGUST $15,881,153 $20,317,692 $17,919,071 $13,851,920 $6,937,675 $10,236,056

SEPTEMBER $12,797,490 $25,034,692 $22,211,090 $15,098,210 $7,475,458 $8,789,100

OCTOBER $13,706,371 $19,903,260 $19,945,527 $13,121,313 $10,431,138 $8,750,827

NOVEMBER $11,380,800 $19,023,135 $16,635,669 $15,383,956 $10,171,662 $7,545,403

DECEMBER $13,334,879 $21,286,642 $24,870,625 $21,386,099 $9,773,635 $9,329,227

TOTAL $193,283,992 $272,960,511 $245,872,319 $175,506,709 $105,097,567 $119,823,045

PERCENTAGE CHANGE $193,283,992 $272,960,511 -29.19%    

16

TRUST FUND INTEREST INCOME

QUARTER 2003 2004 YIELD 2004

1ST QUARTER $6,552,119 $5,077,960 6.09%

2ND QUARTER $6,179,110 $5,242,122 5.64%

3RD QUARTER $6,093,861 $5,891,256 5.43%

4TH QUARTER $5,616,883 $6,141,324 5.40%

TOTAL $24,441,973.71 $22,352,662.04

17

HOW YOU CAN HELP

Understand your Profile and complete exception Report when necessary.

Be responsible with supplies, do not waste. Use email instead of a long distance call. Make sure all calls are business related. Understand agency fraud policy and report

fraudulent activities accordingly.

THE END OF OESC FINANCIAL OVERVIEW

LEVI C. ONWUCHURUBA, CFO