company of other federal agencies, the Department took numerous steps to ensure that our national
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US Department of Commerce 2018–2022 Strategic Plan
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US DEPARTMENT COMMERCE - US Department of Commerce
company of other federal agencies, the Department took numerous steps to ensure that our national
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ve Assistant to the Secretary BARBARA J SCHMITZ Director, Office of White House Liaison
A BRIEF HISTORY OF THE DEPARTMENT OF COMMERCE
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FY 2002 Performance
ACCOUNTABILITY REPORT
A M E R I C A N J O B S,AM E R I C A N V A L U ESU.S. DEPARTMENT
COMMERCE
OFFY 2002 Performance
ACCOUNTABILITY REPORT
A M E R I C A N J O B S,AM E R I C A N V A L U ESU.S. DEPARTMENT
COMMERCE
OFNATIONAL TELECOMMUNICATIONS & INFORMATION ADMINISTRATION NATIONAL OCEANIC & ATMOSPHERIC ADMINISTRATION
NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY
ECONOMICS & STATISTICS ADMINISTRATION
MINORITY BUSINESS DEVELOPMENT AGENCYECONOMIC DEVELOPMENT ADMINISTRATIONINTERNATIONAL TRADE ADMINISTRATION
BUREAU OF
INDUSTRY & SECURITY
NATIONAL TECHNICAL INFORMATION SERVICE
BUREAU OF ECONOMIC ANALYSIS
U.S. PATENT AND TRADEMARK OFFICE
TECHNOLOGY ADMINISTRATION
BUREAU OF THE CENSUS
NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATIONMANAGEMENT DISCUSSION AND ANALYSIS
B I am pleased to offer this report on the performance of the Department of Commerce for fiscal year (FY) 2002. During the year, our Nation, our Department, and our 35,000 individual employees joined in responding with resolve to the challenges we faced as a result of the events of September11, 2001. In the company of other federal agencies, the Department took numerous steps to ensure
that our national interests were well protected and that our national business affairs remained on course.
This report addresses the DepartmentÕs many significant accomplishments during FY 2002. We havesucceeded in greatly expanding the global trading arena for our NationÕs exporters. Our international
successes included support for passage of Trade Promotion Authority that set out mutually agreed trade
negotiation objectives to be pursued by the President in close consultation with the Congress. We assisted
in opening vast new markets around the world and in negotiating equitable terms of trade that permitAmerican firms to compete without hidden impediments. As a result of our efforts, we were able to aid China in becoming the 143rd
member of the World Trade Organization, support the AdministrationÕs National Energy Policy by engaging Russia in the U.S.-Russia
Commercial Energy Summit, and take many other actions aimed at bringing the world together in peaceful and mutually productive trade.
In cooperation with the private sector, the Department approved a new encryption standard that will protect sensitive computerized
information well into the 21st century. We improved our measurements of economic activity, which assist us in forecasting federal spending
and allow private firms to more accurately plan their investment strategies. Commerce developed the American Community Survey,
anew approach that will provide up to date information for public and private planning every year and replace the once-a-decade decennial
census Ôlong-form.ÕThe Department developed a plan to allocate additional spectrum to meet the demand for new, advanced wireless communication, which
has been growing by 75 percent annually. We aided many communities around the Nation in collaborative efforts to strengthen their
economies, create jobs, and adjust to the impact of import competition. The Department of Commerce has assisted our NationÕs fi
rms Ðwhether they are large or small, women- or minority-owned, new to exporting or experienced world traders, developing state-of-the-art
technology or inventing a new product Ð by providing technical, economic and statistical information, aiding in the development of sound
business plans, ensuring that international standards reflect U.S. interests, and providing a voice for their benefit in our NationÕs policy
discussions.The Department established standards for the protection of endangered Pacific salmon and baseline data on which to judge the he
alth ofthe worldÕs coral reefs. We improved our predictive information on heat warnings, severe weather, coastal emergencies and in-flight icing
conditions so that state and local officials are better prepared to save lives, and local and regional economies may avoid unnecessary
expense.This combined performance and accountability report includes our consolidated financial statements, which received an unqualified
opinion for the fourth consecutive year, as well as our annual program performance report under the Government Performance and Results
Act (GPRA). The Department has continued to improve its performance under GPRA. We met 77 percent of our performance targets in
FY 2002 compared to 69 percent in FY 2001. In collaboration with our bureaus and the Inspector General, the Department is working to
continuously strengthen its implementation of GPRA and assure that our performance information is appropriate, complete, and reliable.
Our accomplishments provide a record of public investment that has been properly and honorably discharged Ð and contributes to a better
business environment that creates jobs, supports economic growth, and protects our environment.Donald L. Evans
Secretary of CommerceSTATEMENT FROM THE SECRETARY
I am pleased to join Secretary Evans in presenting the Department of CommerceÕs performance and accountability report for fiscal year (FY) 2002. This combined report describes some of the DepartmentÕs most notable accomplishments during the past year and reviews key challenges thatit currently faces. As such, it serves as a key tool in achieving the PresidentÕs vision of a transparent
government that is fully accountable.The report also discusses initiatives and priorities that the Department is pursuing to assist it in carrying
out its mission of promoting economic growth, technological competitiveness, and sustainable development. The most critical of these efforts include implementation of the PresidentÕs Management Agenda, acomprehensive strategy for addressing the most pressing issues confronting government today. It includes
five management initiatives that cut across all federal agencies and are intended to: strengthen management of and provide full
accountability for financial resources; improve the strategic management of the federal workforce to guarantee that it has the right
combination of necessary skills and knowledge; increase the use of competitive sourcing to maximize operational efficiency; expand
electronic access to federal products and services through Òe-government;Ó and integrate budget functions and performance measurement
to ensure wise use of resources.We have just completed our first full year of carrying out the PresidentÕs Management Agenda and have begun to see significant progress
in each of these areas. The Department has again received an unqualified opinion on its consolidated financial statements and anticipates
completing implementation of its integrated financial management system soon. We developed and adopted a Workforce Restructuring
Plan, which lays out a comprehensive strategy for recruiting and retaining the employees we need to effectively carry out our evolving
mission, and will continue its implementation during FY 2003. Our competitive sourcing program has been revitalized and we are
conducting several competitions between public and private sector entities to acquire services more cost effectively. Our effort to build a
cohesive information technology (IT) infrastructure is proceeding, and we are strengthening our IT security. Lastly, we are working
collaboratively with our bureaus and the Office of Management and Budget to objectively assess programmatic performance as it relates
to our budgetary resources.In addition to pursuing the PresidentÕs management reforms, we are continuing our efforts to strengthen the DepartmentÕs safety and
security programs. As the terrorist attacks of September 11, 2001 and subsequent developments have made clear, we can no longer rely
on traditional approaches for protecting our program operations, facilities, and Ð most importantly Ð our employees. This report describes
the DepartmentÕs efforts to address these concerns, which include continuity of operations planning, addressing the unique security
challenges posed by Commerce programs, and safety awareness training for employees at all levels.The Department will continue to aggressively pursue these initiatives in the coming year and beyond. We look forward to achieving their
objectives and, in turn, realizing the PresidentÕs promise to provide a government that works better, costs less and is more responsive to
the needs of the American public.Samuel W. Bodman
Deputy Secretary
STATEMENT FROM THE DEPUTY SECRETARY
This performance and accountability report summarizes the highlights of the DepartmentÕs performance during fiscal
year (FY) 2002. It fulfills the requirements of the Reports Consolidation Act, Chief Financial Officers Act,
Government Performance and Results Act, Federal ManagersÕ Financial Integrity Act, and GovernmentManagement Reform Act. More importantly, however, it provides our stakeholders with the ability to assess our
performance relative to our mission and the financial resources with which we are entrusted.We are proud of having achieved an unqualified audit opinion on the DepartmentÕs consolidated financial statements for the
fourth year and of the progress we have made in improving our financial systems. The Department-wide financial management
system, the Commerce Administrative Management System (CAMS), was deployed at the National Oceanic and Atmospheric
Administration and the Bureau of Industry and Security. Implementation of CAMS, now in operation at ten of our bureaus,
will be complete this fiscal year. Commerce also made measurable progress in addressing deficiencies in information
technology controls. We plan to improve our information security program sufficiently to eliminate this material weakness in
FY 2003 and to address personal property accounting, currently cited as a reportable condition.Improving the quality of work life for Commerce employees was another area in which we focused considerable energy,
specifically targeting professional development and employee safety. We recruited a Director of Training and Knowledge
Management to enhance our performance-based training and development programs, initiated a Candidate Development
Program to prepare our most promising employees for leadership positions, and implemented a web-based Learning
Management System. We also undertook an initiative to reinvigorate the DepartmentÕs Safety and Health Program by re-
establishing the DepartmentÕs Safety Council, hiring a new Director for Occupational Safety and Health, and adopting a Safety
Program Action Plan to address a wide range of concerns such as safety training and awareness, workplace inspections, and
health services. A communications campaign disseminating safety newsletters and educational materials to Commerce
employees is also underway.Another critical activity involves the preparations being made to maintain essential activities without interruption and to
quickly resume routine operations in the face of any emergency. Focused efforts undertaken after September 11, 2001, began
to pay off in FY 2002. We developed, for the first time ever, a Departmental continuity of operations plan and have begun
testing it to ensure its effectiveness.The progress made in enhancing our acquisition program represents another highlight. The effective implementation of
acquisition reform, begun in the 1990s, requires adapting established procedures and control mechanisms to reflect increased
flexibilities. Toward that end, Commerce is now using the Internet to announce upcoming contracts, employing performance-
based contracting, strengthening overall management of its purchase card program, and improving the training of employees
who are involved in procurement activities.During FY 2003, we will continue enhancing the administrative tools used to manage Commerce programs by pursuing these
initiatives and the crosscutting management reforms established in the PresidentÕs Management Agenda. Through these and
other efforts, we plan to maximize the effectiveness of our programs and their benefit to the American taxpayers.
Otto J. Wolff
Chief Financial Officer and
Assistant Secretary for Administration
MESSAGE FROM THE CHIEF FINANCIAL OFFICER
FY 2002 PERFORMANCE AND ACCOUNTABILITY REPORT
TABLE OF CONTENTS
Management Discussion And Analysis 1
The Department at a Glance 2
FY 2002 Highlights and Management Accomplishments 5Mission and Strategic Planning 25
FY 2002 Performance Results 31
Management Controls 41
Federal ManagerÕs Financial Integrity Act of 1982 (FMFIA) 43 Federal Financial Management Improvement Act of 1996 (FFMIA) 47Report on Audit Follow-up 47
Biennial Review of Fees 49
Looking Ahead51
Challenges and Priorities 53
Inspector GeneralÕs Statement 57
FY 2002 Performance Report 65
Management Integration Goal - Strengthen management at all levels67Departmental Management 69
Strategic Goal 1 -
Provide the information and the framework to enable the economy to operate efficiently and equitably 103Economics and Statistics Administration 105
Economics and Statistics Administration Ð Bureau of Economic Analysis 107 Economics and Statistics Administration Ð Bureau of the Census 119International Trade Administration 139
Bureau of Industry and Security 173
Economic Development Administration 199
Minority Business Development Agency 225
Strategic Goal 2 -
Provide infrastructure for innovation to enhance American competitiveness 241US Patent and Trademark Office 243
Technology Administration 257
National Telecommunications and Information Administration 303Strategic Goal 3 -
Observe and manage the EarthÕs environment to promote sustainable growth315 National Oceanic and Atmospheric Administration 317FY 2002 PERFORMANCE AND ACCOUNTABILITY REPORT
FY 2002 Financial Report 371
Financial Management and Analysis 373
Introduction 375
Initiatives and Priorities 375
Financial Management Indicators 379
Debt Management 379
Payment Practices 380
Financial Review 382
Analysis of FY 2002 Financial Condition and Results 383Limitations of the Financial Statements 386
Principal Financial Statements 387
Consolidated Balance Sheets 389
Consolidated Statements of Net Cost 390
Consolidated Statement of Changes in Net Position 391Combined Statement of Budgetary Resources 392
Consolidated Statement of Financing 393
Notes to the Financial Statements 395
Consolidating Balance Sheet 439
Required Supplementary Information 443
Requirement Supplementary Stewardship Information 451AuditorsÕ Report 461
Glossary of Acronyms 485
NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION 1MANAGEMENT DISCUSSION AND ANALYSIS
MANAGEMENT
DISCUSSION AND
ANALYSIS
1The Department at a Glance
History and Enabling Legislation
The Department of Commerce is one of the oldest cabinet-level departments in the United States Government.
Originally established by Congressional Act on February 14, 1903 as the Department of Commerce and Labor (32 Stat. 826; 5 U.S.C. 591), it was subsequently renamed the U. S. Department of Commerce byPresident William H. Taft on March 4, 1913 (15 U.S.C. Section 1512). The defined role of the new Department was
"to foster, promote, and develop the foreign and domestic commerce, the mining, manufacturing, and fishery
industries of the United States."Mission
The Department of Commerce promotes job creation and improved living standards for all Americans by creating
an infrastructure that promotes economic growth, technological competitiveness, and sustainable development.
Strategic Goals
GOAL1:Provide the information and the framework to enable the economy to operate efficiently and equitably G OAL2:Provide infrastructure for innovation to enhance American competitiveness G OAL3:Observe and manage the EarthÕs environment to promote sustainable growth M ANAGEMENTINTEGRATIONGOAL:Strengthen management at all levelsU.S. DEPARTMENT OF COMMERCE
MANAGEMENT DISCUSSION AND ANALYSIS
2Department of Commerce Ð
Herbert C. Hoover Building
Bureaus
Economics and Statistics Administration (ESA)
Bureau of Economic Analysis (BEA)
Bureau of the Census
International Trade Administration (ITA)
Bureau of Industry and Security (BIS)
Economic Development Administration (EDA)
Minority Business Development Agency (MBDA)
U.S. Patent and Trademark Office (USPTO)
Technology Administration (TA)
National Institute of Standards and Technology (NIST)National Technical Information Service (NTIS)
National Telecommunications and Information Administration (NTIA) National Oceanic and Atmospheric Administration (NOAA)In addition to these bureaus, Departmental Management (DM) encompasses the responsibilities of the Secretary,
Deputy Secretary, Chief Financial Officer and Assistant Secretary for Administration, and the Chief Information
Officer. At the heart of the Department, DM provides the policies, planning, and administrative guidance that ensure
bureau operations are consistent with Secretarial priorities and with the DepartmentÕs mission.Location
The Department is headquartered in Washington, D.C., at the Herbert Clark Hoover Building, which is located on
eight acres of land covering three city blocks. The Department also has field offices in all states and territories and
maintains offices in more than 86 countries worldwide.Employees
The Department is an agency with approximately 35,000 employees.Financial Resources
The DepartmentÕs FY 2001 budget was approximately $5.5 billion and its FY 2002 budget was about $5.8 billion.