FY 2013 Agency Financial Report

National Aeronautics and Space Administration

www.nasa.gov Cover Image Captions and Credits

Front Cover: Outside Front Main Image: Artist concept of planets space. (Credit: NASA) Outside Front Bottom Images (left to right): Flight Engineer Chris Cassidy exits the Quest airlock for a session of extrave- hicular activity (EVA) as work continues on the International Space Station. (Credit: NASA); Technicians complete the center section of the backplane and backplane support frame for NASA’s James Webb Space Telescope at ATK’s facility in Magna, Utah. (Credit: ATK); Artist concept of the Space Launch System and Orion spacecraft being stacked in the Vehicle Assembly Building at NASA’s Kennedy Space Center in Florida. (Credit: NASA) Inside Front: A 2.4 meter Composite Cryogenic Propellant Tank is being inspected after going successful pressurized testing (Credit: NASA)

Rear Cover: Outside Rear: A view of Earth as seen from the Cupola on the Earth-facing side of the International Space Station. (Credit: NASA) Message from the Administrator

Message from the Administrator December 6, 2013

I am proud to present the National Aeronautics and Space Admin- istration’s (NASA) Fiscal Year (FY) 2013 Agency Financial Report summarizing NASA’s accomplishments and financial performance for the American people, the President, and the Congress.

At NASA, we believe that there is a direct relationship between fiscal stewardship and mission success. For FY 2013, NASA received an unmodified “clean” audit opinion on our financial statements. The Mission Performance section of this report provides insight into our program activities. The Financial section details how we use your tax dollars to accomplish our Mission. Reports and recommenda- tions from NASA’s Inspector General and independent auditors are also included. As Administrator, and in accordance with Office of Management and Budget regulations, I can provide reasonable assurance that the performance and financial information in this report is reliable and complete.

FY 2013 was another banner year for NASA. Our two commercial space transportation partners, SpaceX and Orbital Sciences Corp., successfully launched several critical missions to the International Space Station. These commercial flights mark the beginning of a new era of space transportation for the United States. NASA completed preliminary design of the Space Launch System and continued the development of the Orion Multi-Purpose Crew Vehicle, preparing for exploration beyond Earth orbit. The Mars Exploration Rover, Curiosity, continued to dazzle scientists and the public with new data from the surface of Mars and confirmed that conditions once existed there that could have supported life. NASA’s ongoing investments in aeronautics research continue to improve aviation safety, efficiency, and noise reduction. Finally, in December 2012, NASA was named the best place to work in the Federal Government among large agencies in a survey conducted by the Partnership for Public Service. I am pleased with this validation of the high commitment and dedication of NASA’s talented workforce.

As you can see from this report, NASA is putting your tax dollars to efficient use in maintaining America’s leadership in space exploration, bringing critical launch capability back to the United States, creating American jobs, and keeping the Nation on the cutting edge of innovation. If you would like more detail on our progress toward achieving our Strategic Goals, I invite you to read our Annual Performance Report, which will be released with the President’s Budget Request in early 2014.

NASA FY 2013 Agency Financial Report Page i This page has been left blank intentionally.

Page ii NASA FY 2013 Agency Financial Report Table of Contents

Image Caption: The United Launch Alliance (ULA) Atlas-V rocket with the Landsat Data Continuity Mission (LDCM) spacecraft onboard is seen on Sunday, Feb. 10, 2013 at Vandenberg Air Force Base, Calif. The Landsat Data Continuity Mission (LDCM) mission is a collaboration between NASA and the U.S. Geological Survey that will continue the Landsat Program’s 40-year data record of monitoring the Earth’s landscapes from space. (Credit: NASA/Bill Ingalls)

Management Discussion and Analysis...... 1 Welcome to NASA...... 3 Mission and Vision Statement...... 5 Organization...... 7 Workforce...... 11 Shared Values, Shared Results...... 12 FY 2013 In Review...... 13 Mission Performance...... 15 Performance Overview...... 15 Performance Summary...... 18 Strategic Goals and Highlights...... 21 Strategic Goal 1: Extend and sustain human activities across the Solar System...... 21

NASA FY 2013 Agency Financial Report Page iii Strategic Goal 2: Expand scientific understanding of the Earth and the universe in which we live...... 2 4 Strategic Goal 3: Create innovative new space technologies for our exploration, science, and economic future...... 33 Strategic Goal 4: Advance aeronautics research for societal benefit...... 35 Strategic Goal 5: Enable program and institutional capabilities to conduct NASA’s aeronautic and space activities...... 39 Strategic Goal 6: Share NASA with the public, educators, and students to provide opportunities to participate in our Mission, foster innovation, and contribute to a strong national economy...... 43 Financial Performance...... 47 CFO Letter...... 47 Financial Overview...... 49 NASA Financial Goals and Accomplishments...... 49 Financial Highlights...... 53 Results of Operations...... 5 3 Sources of Funding...... 58 Balance Sheet...... 60 Limitation of the Financial Statements...... 63 Systems, Controls and Legal Compliance...... 65 Management Assurances...... 67 Financial Systems Strategies...... 69 Looking Forward...... 71

Financials...... 75 Introduction to the Principal Financial Statements...... 77 Financial Statements, Notes, and Supplemental Information...... 78 Letter from the Inspector General on the Audit...... 109 Report of the Independent Auditors...... 111 Report of the Independent Auditors on Internal Control...... 114 Report of the Independent Auditors on Compliance and Other Matters...... 116

Other Information...... 119 Office of Inspector General Letter on NASA’s Top Management and Performance Challenges...... 121 FY 2013 Inspector General Act Amendments Report...... 157 Background...... 157 NASA’s Audit Follow-Up Program...... 158 FY 2013 Audit Follow-Up Results...... 160 Improper Payments Information Act (IPIA) Assessment...... 165 Recapture Audit...... 167 Schedule of Spending...... 171 Summary of Financial Statement Audit and Management Assurances...... 1 73

Page iv NASA FY 2013 Agency Financial Report Management Discussion and Analysis

Welcome to NASA...... 3 Mission and Vision Statement...... 5 Organization...... 7 Workforce...... 11 Shared Values, Shared Results...... 12

Image Caption: Space Launch Complex 40 on Cape Canaveral Air Force Station in Florida comes alive as the Merlin engines ignite under the Falcon 9 rocket carrying a Dragon capsule to orbit. Liftoff was at 8:35 p.m. EDT on October 7, 2013. Space Exploration Technologies Corp., or SpaceX, built both the rocket and capsule for NASA’s first Commercial Resupply Services, or CRS-1, mission to the International Space Sta- tion. (Credit: NASA/Rick Wetherington and Tony Gray)

NASA FY 2013 Agency Financial Report Page 1 This page has been left blank intentionally.

Page 2 NASA FY 2013 Agency Financial Report Welcome to NASA

The sun is captured in a “starburst” mode over Earth’s horizon by one of the Expedition 36 crew members aboard the Interna- tional Space Station, as the orbital outpost was above a point in southwestern Minnesota on May 21, 2013. (Credit: NASA) Welcome to NASA

The fiscal year (FY) 2013 Agency Financial the Government Performance and Results Report (AFR) provides an overview of NA- Act (GPRA, as amended). Financial aspects SA’s major programmatic and financial re- of Agency business operations are accounted sults for FY 2013. It integrates financial and for according to generally accepted account- program performance to demonstrate stew- ing principles and Federal Accounting Stan- ardship and accountability. It highlights FY dards Advisory Board standards. 2013 achievements as well as financial and programmatic challenges and opportunities NASA presents both performance and results in the years ahead and strategies for manag- of operations by strategic goal. A high level ing them. summary of this budget-results connection is provided in the “statement of net cost” (SNC) NASA demonstrates stewardship and ac- found in the Financial Section (page 75). countability through compliance with the The SNC presents the net cost of operations Chief Financial Officers’ Act (CFO Act) and during FY 2013 by strategic goal and for the

NASA FY 2013 Agency Financial Report Page 3 Welcome to NASA

Agency as a whole. In addition, the Finan- cial Section explains significant changes in NASA’s financial condition from FY 2012 to FY 2013.

Financial systems that meet requirements of the Federal Financial Management Improve- ment Act (FFMIA) are vital to NASA’s financial management program. The AFR de- scribes NASA’s compliance with the FFMIA, as well as the built-in checks and balances required by Office of Management and Bud- get’s (OMB) Circular A-123, which places responsibility for internal controls over financial reporting on Agency management for the purpose of safeguarding assets and improving efficiency and effectiveness of operations.

Finally, the AFR presents the Agency’s audited FY 2013 financial statements and the independent auditor’s financial audit opinion. The 2013 AFR can be found at http://www.nasa.gov/news/budget/.

Image Caption: The doors of the gantry support structure are opened to reveal the LADEE/Minotaur V Rocket on Pad 0B at the Mid-Atlantic Regional Spaceport (MARS) at NASA’s Wallops Flight Facility in Virginia. The Mino- taur V launched NASA’s Lunar Atmo- sphere and Dust Environment Explorer (LADEE), a robotic mission that will orbit the moon to provide unprecedent- ed information about the environment around the moon and give scientists a better understanding of other planetary bodies in our solar system and beyond. LADEE launched at 11:27 p.m. Friday, Sept. 6, from NASA’s Wallops Flight Facility. (Credit: NASA/Carla Cioffi)

Page 4 NASA FY 2013 Agency Financial Report Welcome to NASA

Mission and Vision Statement

NASA was created by the National Aeronautics and Space Act of 1958 to provide for research into problems of flight within and outside the Earth’s atmosphere and to ensure that the United States conducts activities in space devoted to peaceful purposes for the benefit of mankind. In 2010, the President and Congress unveiled an ambitious new direction for NASA, laying the groundwork for a sustainable program of exploration and innovation. This new direction extends the life of the International Space Station, supports the growing commercial space industry, and addresses important scientific challenges while continuing our commitment to robust human space exploration, science, and aeronautics programs. The strong bipartisan support for the NASA Authorization Act of 2010 confirms our essential role in addressing the Nation’s priorities.

In early 2014, NASA plans to release a new Strategic Plan that will outline the strategic direction for the next four years and beyond. It will embody the spirit of the Agency’s founding principles, as well as recent policies and legislation. The plan will introduce a new framework of goals and objectives that will allow our Nation to lead humanity into space while improving life on Earth.

The current Strategic Plan, released in 2011, laid out the Vision and Mission for NASA’s strategic direction. NASA’s Vision and Mission are:

The NASA Vision The NASA Mission

To reach for new heights and reveal Drive advances in science, technology, the unknown, so that what we do and and exploration to enhance knowl- learn will benefit all humankind. edge, education, innovation, economic vitality, and stewardship of Earth.

NASA FY 2013 Agency Financial Report Page 5 Welcome to NASA

The following overarching strategies govern the management and conduct of our aeronautics and space programs. These are standard practices that each organization within NASA employs in developing and executing their plans to achieve our strategic goals. They also provide a framework that guides our support for other areas of National and Administration policy: government transparency; science, technology, engineering, and mathematics (STEM) education; energy and climate change; innovation; and increased citizen and partnership participation to help address the multitude of challenges faced by our Nation. The overarching strategies, listed below, help strengthen the Agency and support U.S. competitiveness on a global scale.

Overarching Strategies

Investing in next- Inspiring students to Committing to envi- generation technolo- be our future scientists, ronmental stewardship gies and approaches engineers, explorers, through Earth observa- to spur innovation. and educators through tion and science, and the interactions with NASA’s development and use of people, missions, re- green technologies and search, and facilities. capabilities in NASA missions and facilities.

Expanding partnerships with international, Securing the public trust intergovernmental, academic, industrial, and through transparency and entrepreneurial communities and recognizing accountability in our program- their role as important contributors of skill and matic and financial management, creativity to our missions and for the propaga- procurement, and reporting tion of our results. practices.

The NASA Strategic Plan was revised as a result of the GPRA Modernization Act of 2010 (GPRAMA). GPRAMA was enacted to improve the Federal Government’s performance management framework to reinforce key elements of the Administration’s approach to improving the effectiveness and efficiency of the Government. In response to this revision of the law, NASA developed four Agency Priority Goals for FY 2012 and FY 2013, which were incorporated into the Strategic Plan. These Priority Goals are in addition to the annual performance goals in the FY 2012 and FY 2013 performance plans. Goal statements for each Agency Priority Goal are as follows:

Page 6 NASA FY 2013 Agency Financial Report Welcome to NASA

Agency Priority Goals

International Space Station Human Exploration Sustain operations and full utilization and Operations of the International Space Station Develop the Nation’s next (ISS) generation Human Space Flight (HSF) system to allow for travel beyond low Earth orbit (LEO).

Mars Science Laboratory Space Technology Use the Mars Science Laboratory Enable bold new missions and make Curiosity Rover to explore and new technologies available to quantitatively assess a local region Government agencies and U.S. on the surface of Mars as a potential industry. habitat for life, past or present.

Organization

NASA’s organizational structure is designed to accomplish its mission and provide a framework for sound business operations, management controls, and safety oversight. The Of- fice of the Administrator provides overarching vision and strategic direction. The Agency’s science, research, and technology development work is implemented through four Mission Directorates supported by one Mission Support Directorate: Science Mission Directorate (SMD) man- that still exist in our nation’s air transporta- ages the Agency’s Science portfolio budget tion system, including: air traffic congestion, account and focuses on programmatic work safety, and environmental impacts. Another on Earth, planetary, astrophysics, and helio- significant goal of ARMD programs is to im- physics research. SMD engages the United prove our national air transportation system States’ science community, sponsors scien- by developing “green aviation” solutions. Ad- tific research, develops and deploys satel- ditional information on the ARMD is available lites and probes in collaboration with NASA’s at: http://www.aeronautics.nasa.gov/. international partners to answer fundamental scientific questions and expand our under- Space Technology Mission Director- standing of space. Additional information on ate (STMD), new in FY 2013, manages SMD is available at: http://science.nasa.gov/. the Space Technology account which supports crosscutting activities of the Office Aeronautics Research Mission Directorate of the Chief Technologist. STMD manages (ARMD) manages the budget account for the advanced technology development within Agency’s Aeronautics and applied research NASA and the commercial sector. It devel- activities that improves current and future ops crosscutting and pioneering new technol- air travel. ARMD works to solve challenges ogies and capabilities needed by the Agency

NASA FY 2013 Agency Financial Report Page 7 Welcome to NASA to achieve its current and future missions. Centers to provide coordination and control. STMD programs complement other technol- Additional information on the MSD is avail- ogy development activities in NASA’s other able at: http://msd.hq.nasa.gov/. Mission Directorates, delivering solutions to NASA’s needs for new technologies for fu- Office of Education (Education) develops ture missions in science and exploration. Ad- and manages a portfolio of educational pro- ditional information on STMD is available at: grams for students and teachers at all levels. http://www.nasa.gov/directorates/spacetech/ Education seeks to develop a vibrant pool of home/index.html. future workforce for sustainable support of national and NASA mission by attracting and Human Exploration and Operations Mis- retaining students in STEM disciplines, and sion Directorate (HEOMD) manages the raising public awareness of NASA’s activities. budget account for the Exploration and To achieve these goals, Education works in Space Operations portfolio. HEOMD man- partnership with other government agencies, ages development of the Orion Multi-Purpose non-profit organizations, museums and the Crew Vehicle (Orion-MPCV), future explora- education community at large. Additional in- tion technologies, and works with U.S. com- formation on the Office of Education is avail- mercial space industry partners to develop able at: http://www.nasa.gov/centers/dryden/ commercial systems for providing crew and education/mission.html. cargo transportation services to and from low Earth orbit. HEOMD also manages op- The Administrator’s Staff Offices support erations and research for the International the Administrator’s administrative respon- Space Station (ISS), and communications sibilities by providing a range of high-level systems and networks that enable deep guidance and support in critical areas like space and near-Earth exploration. Additional safety and mission assurance, technology information on the HEOMD is available at: planning, education, equal opportunity, infor- http://www.nasa.gov/directorates/heo/home/ mation technology, financial administration, index.html. small business administration, international relations, and legislative and intergovern- Mission Support Directorate (MSD) sup- mental affairs. Additional information on the ports all NASA Missions in a crosscutting Administrator’s Staff Offices is available at: manner. For example, MSD manages the http://www.nasa.gov/about/org_index.html. Cross Agency Support (CAS) and Construc- tion and Environmental Compliance and Res- Administratively, NASA is organized into one toration (CECR) accounts which cut across Headquarters Office located in Washington, all Mission Directorates. CAS and CECR DC, nine operating Centers located across accounts fund operations at Headquarters the country, and the Jet Propulsion Labora- and the Centers as well as institutional and tory, a federally funded research and devel- programmatic construction of facilities. MSD opment center operated under a contract with progress reports on major national initiatives the California Institute of Technology. NASA to the Administrator and other senior Agency works in partnership with academia, the pri- officials; provides independent reviews and/ vate sector, state and local governments, oth- or investigations; and liaises with the public er Federal agencies, and a number of inter- and other federal agencies. MSD is based at national organizations to support and achieve Headquarters but has representatives at the its mission.

Page 8 NASA FY 2013 Agency Financial Report Welcome to NASA

Organizational Structure

Note: * Center functional office directors report to Agency functional AA. Deputy and below report to Center leadership.

NASA FY 2013 Agency Financial Report Page 9 Welcome to NASA

Centers and Facilities Nationwide

Under the leadership of the Administrator, NASA offices at Headquarters provide overall guidance and direction to the Agency. NASA’s Centers and installations conduct the Agency’s day-to-day work in laboratories, on airfields, in wind tunnels, in control rooms, and in NASA’s other one-of-a-kind facilities.

Note: The Jet Propulsion Laboratory (JPL) is a federally funded research and development center in Pasadena, California. The California Institute of Technology manages JPL.

Page 10 NASA FY 2013 Agency Financial Report Welcome to NASA

Workforce

As of the end of FY 2013, NASA employed focus on these three principal areas that will more than 18,000 civil servants, including full- help to embed innovation in the NASA cul- time, part-time, term appointees, student and ture. other non-permanent workers at nine Cen- ters, Headquarters, and the NASA Shared • Recognizing and rewarding innovative Services Center. In addition, the Jet Propul- performance: Reward and appreciate em- sion Laboratory, operated by the California In- ployees for their innovative performance stitute of Technology, employs approximately and contributions to their workplace. 4,700 people. To see more information about workforce profile and distribution, visit the • Engaging and connecting the workforce: Workforce Information Cubes for NASA at Engage employees in the NASA mission http://wicn.nssc.nasa.gov/. and enable them to cooperate, collabo- rate, and network with one another. NASA’s talented and engaged people are our greatest resource. The NASA mission re- • Building model supervisors and leaders: quires great responsibility and the continued Develop supervisors and leaders who need for a highly skilled, agile, inclusive, and view developing employees as an impor- innovative workforce. While many drivers of tant and productive use of time. a positive workplace culture contribute to employee engagement and mission accomplish- NASA cares about the environment in which ment, analysis showed that three areas have employees work. Direct attention to the NASA the greatest potential to increase innovation work environment, workforce and culture given our current environment. The NASA through both inclusion and innovation strate- Strategic Management Council has agreed to gies are critical to achieving NASA’ s mission.

Image Caption: NASA Social attendees pose for a group photograph following a NASA Social exploring science on the International Space Station at NASA Headquarters, Wednesday, Feb. 20, 2013 in Washing- ton. NASA’s workforce is energizing the public with innovative social methods. (Credit: NASA/Carla Cioffi)

NASA FY 2013 Agency Financial Report Page 11 Welcome to NASA

Shared Values, Shared Results

NASA’s tradition of excellence is rooted on Teamwork: The most powerful force behind the four uncompromising shared core values NASA’s mission success is a multi-disciplin- of safety, integrity, teamwork, and excellence, ary team of diverse, competent people across as well as the firm belief that failure is not an all NASA Centers and Headquarters. Team- option. work at NASA embodies the belief that each team member brings unique experience and Safety: Constant attention to safety is the important expertise to project issues. This ap- cornerstone of mission success. NASA is proach to teamwork improves the likelihood of committed, individually and as a corporate identifying and resolving challenges to safety team, to protecting the safety and health of and mission success. NASA is committed the public, NASA team members, and the as- to cultivating and sustaining an environment sets that the Nation entrusts to the Agency. that fosters this approach to teamwork and processes that support equal opportunity, Integrity: NASA is committed to maintain- collaboration, continuous learning, and opening an environment of trust, built on hon- ness to innovation and new ideas. esty, ethical behavior, respect, and candor. Agency leaders enable this environment by Excellence: To achieve the highest stan- exemplifying, encouraging, and rewarding a dards in engineering, research, operations, vigorous, open flow of communication on all and management in support of mission suc- issues, in all directions, and among all em- cess, NASA is committed to nurturing an or- ployees without fear of reprisal. Building trust ganizational culture in which individuals make through ethical conduct as individuals and as full use of their time, talent, and opportunities an organization is a necessary component of to pursue excellence in both the ordinary and mission success. the extraordinary.

Page 12 NASA FY 2013 Agency Financial Report FY 2013 In Review

Mission Performance...... 15 Performance Overview...... 15 Performance Summary...... 18 Strategic Goals and Highlights...... 21 Strategic Goal 1: Extend and sustain human activities across the Solar System...... 21 Strategic Goal 2: Expand scientific understanding of the Earth and the universe in which we live...... 2 4 Strategic Goal 3: Create innovative new space technologies for our exploration, science, and economic future...... 33 Strategic Goal 4: Advance aeronautics research for societal benefit...... 35 Strategic Goal 5: Enable program and institutional capabilities to conduct NASA’s aeronautic and space activities...... 39 Strategic Goal 6: Share NASA with the public, educators, and students to provide opportunities to participate in our Mission, foster innovation, and contribute to a strong national economy...... 43

NASA FY 2013 Agency Financial Report Page 13 Financial Performance...... 47 CFO Letter...... 47 Financial Overview...... 49 NASA Financial Goals and Accomplishments...... 49 Financial Highlights...... 53 Results of Operations...... 5 3 Sources of Funding...... 58 Balance Sheet...... 60 Limitation of the Financial Statements...... 63

Page 14 NASA FY 2013 Agency Financial Report Mission Performance

Mission Performance

Performance Overview

NASA has chosen to produce an Agency the benefit of the Nation. These strategic Financial Report (AFR) and Annual Perfor- additions to NASA’s performance framework mance Report (APR). NASA will include its support more effective and holistic decision- FY 2013 APR with its Congressional Bud- making. Strategic Goals 5 and 6 allow NASA get Justification and will post it on NASA’s leaders to track organizational, institutional, website at www.nasa.gov by February 2014. and outreach performance beyond discreet Congress, the Government Accountability program, projects, and spaceflight missions. Office (GAO), and the Office of Manage- This information makes data-driven deci- ment and Budget (OMB) have recognized sion-making possible across all of NASA’s NASA for its culture of performance and activities, and gives decision-makers the ob- data-driven performance management. In jective performance information they need to recent years, the Agency has worked hard prioritize and balance funding between indi- to improve its performance management vidual mission needs and the requirements system to increase accountability, transpar- of institutional and program capabilities that ency, and oversight. NASA continues to add enable those missions. NASA’s strategic sophistication and discipline to this system, goals are as follows: leading to more consistent performance results across NASA’s missions and to make • Strategic Goal 1: Extend and sustain hu- the best use of the resources entrusted to man activities across the solar system. the Agency by the American people. • Strategic Goal 2: Expand scientific un- In FY 2013, NASA continued along the derstanding of the Earth and the uni- course it set with the 2011 Strategic Plan. At verse in which we live. the heart of NASA’s strategic goals remain the core missions of human space explora- • Strategic Goal 3: Create the innovative tion, Earth and space science, aeronautics, new space technologies for our explora- and technology development. The 2011 tion, science, and economic future. Strategic Plan also marked another step in the evolution of NASA’s performance man- • Strategic Goal 4: Advance aeronautics agement. The Agency set a new strategic research for societal benefit. goal to emphasize the importance of supporting the capabilities that enable NASA’s • Strategic Goal 5: Enable program and in- missions. The plan also calls out educa- stitutional capabilities to conduct NASA’s tion and outreach as an important means aeronautic and space activities. for making data from science missions, research, and other discoveries available for • Strategic Goal 6: Share NASA with the

NASA FY 2013 Agency Financial Report Page 15 Mission Performance

public, educators, and students to pro- based on a series of internal assessments vide opportunities to participate in our that are part of ongoing monitoring of NA- Mission, foster innovation, and contrib- SA’s program and project performance. Ex- ute to a strong national economy. ternal entities, such as scientific peer review committees, aeronautics technical evalua- Using Agency rating criteria, NASA mea- tion bodies, and the OMB, validate the rat- sures and communicates its progress to- ings prior to publication in the Annual Perfor- ward achieving its performance goals (PGs), mance Report (APR). This year, NASA will targets for the next three to five years, and present its APR and final ratings with the FY annual performance indicators (APIs) for 2015 Congressional Budget Justification. FY 2013. NASA determines these ratings

Rating Rating Criteria for Performance Goals Green NASA achieved or expects to achieve the intent of the performance goal within the estimated timeframe. (On Track) NASA achieved the majority of key activities supporting this performance goal. Yellow NASA expects to achieve the intent of the performance goal within the timeframe; however, there is at least (At Risk) one likely programmatic, cost, or schedule risk to achieving the performance goal. Red NASA does not expect to achieve this performance goal within the estimated timeframe. (Not on Track)

White NASA senior management canceled this performance goal and the Agency is no longer pursuing activities (Canceled or Postponed) relevant to this performance goal or the program did not have activities relevant to the performance goal during the fiscal year.

Page 16 NASA FY 2013 Agency Financial Report Mission Performance

Rating Criteria for Annual Performance Indicator (API) Types Timeframe: Multiple When NASA On-going Activities, Deliverables, Rating will achieve the Single Milestone or Services, or Targeted API Deliverable Management Performance, and Processes Efficiencies Current FY as NASA achieved the The program/project The intended result of planned. event or the deliver- reached the stated the program/project was able met the intent numeric target. achieved as defined by Green of the API within the internally held success timeframe. criteria. Achieve next FY NASA did not achieve this API in the current fiscal year, but anticipates (will not achieve achieving it during the next fiscal year. this FY as planned). Will not be N/A NASA failed to The intended results of the achieved, but achieve this API, but program/project were not Yellow progress was made significant prog- achieved in this fiscal year, made. ress as defined by but significant progress was reaching 80 percent accomplished, as defined of the target or other by internally held success internally held suc- criteria. cess criteria. Will not be NASA did not achieve NASA achieved less Neither intended results nor achieved. the API and does not than 80 percent of the significant progress were anticipate completing target or other inter- achieved. The progress to- it within the next fiscal nally held success ward the API does not meet Red year. criteria. standards for significant progress for the internally held success criteria. Will not be NASA senior management canceled this API and the Agency is no longer achieved due to pursuing activities relevant to this API or the program did not have activities White cancellation or relevant to the API during the fiscal year. postponement.

NASA FY 2013 Agency Financial Report Page 17 Mission Performance

Performance Summary

In FY 2013, NASA reviewed progress to- the Congress (available at http://www.nasa. ward 76 two to five year performance goals gov/news/budget). and 91 APIs. Prior to accessing these measures, the FY 2013 Performance Plan was The summary of NASA’s preliminary as- updated to reflect changes due to both Con- sessment of progress by strategic goal is gressional budget action and to correct inac- provided below. The Agency will release fi- curacies found in several measures, which nal ratings with APR with the President’s FY were not found prior to the measures’ provi- 2015 Budget. sion in the FY 2014 budget submission to Performance Goals* FY 2013 Performance Goal Ratings by Strategic Goal

*These ratings are a high level summary of performance and reflect preliminary year-end assessment of progress. For final ratings, specific descriptions of measures, rating explanations, and performance improvement plans, refer to the Annual Performance Report within the Management and Performance Section of NASA’s FY 2015 Congressional Justification.

Page 18 NASA FY 2013 Agency Financial Report Mission Performance

Annual Performance Indicators* FY 2013 APIs by Strategic Goal

122 124

FY 2011 Total 149 FY 2012 Total 136 FY 2013 Total 94

NASA FY 2013 Agency Financial Report Page 19 Mission Performance

This page has been left blank intentionally.

Page 20 NASA FY 2013 Agency Financial Report Mission Performance

Strategic Goals and Highlights

panding human presence beyond low Earth Strategic Goal 1: orbit. NASA will pursue this goal through Extend and sustain human activities strategic investments and partnerships to across the Solar System. drive advances in science and technology that continue to contribute to new products For over 50 years, NASA has been develop- and services. To be successful, NASA will ing the capabilities that will support the coun- need full participation from international try’s long-term human spaceflight and explo- partners and the commercial sector. ration efforts. With the help of domestic and international partners, NASA has embarked Exploration Systems Development on a steady progression of activities and milestones that has prepared the Agency for NASA’s exploration efforts include the Orion the more difficult challenges ahead — ex- spacecraft, Space Launch System (SLS)

Image Caption: On August 15, 2013, at the Naval Station Norfolk near NASA’s Langley Research Center in Virginia, NASA and the U.S. Navy conducted a stationary recovery test on the Orion boilerplate test article in the water near a U.S. Navy ship. NASA and the U.S. Navy are conducting tests to prepare for recovery of the Orion crew module and forward bay cover on its return from a deep space mission. The stationary recovery tests allow the teams to demonstrate and evaluate the recovery processes, the hardware and the test personnel in a controlled environment. (Credit: NASA)

NASA FY 2013 Agency Financial Report Page 21 Mission Performance heavy-lift launch vehicle, and Exploration and recover the Exploration architecture ele- Ground Systems (EGS) infrastructure re- ments. EGS will focus on the launch com- quired to conduct crewed missions of explo- plex as an integrated, multi-use capability ration into deep space, including a proposed to enable more efficient and cost-effective mission to send astronauts to a redirected ground processing, launch and recovery op- asteroid inserted into a stable orbit around erations. the Moon. ISS Research Capabilities Enhanced Orion will carry up to four astronauts to, and Through Technological Advances support operations at, destinations in our solar system for periods of approximately 21 This year, the International Space Station days. Exploration Flight Test-1 (EFT-1), an (ISS) underwent an extensive communica- un-crewed, atmospheric re-entry test mis- tions system modernization that significantly sion of the Orion to test spacecraft systems, increased the capacity for transmitting re- is on track for launch in 2014. The EFT-1 search and development data and video test flight will encompass the Orion space- to Earth. These technological advances craft completing two orbits of the Earth and improve the operability of the ISS, and en- re-entering the atmosphere at a high-speed, hance the capacity for research and tech- characteristic of a returning deep space ex- nology development on ISS to benefit life ploration mission. The test will provide valu- on Earth and enable long duration human able data about the spacecraft’s systems, spaceflight beyond low Earth orbit. including its heat shield. The flight test article for this mission is already in place at the Every piece of data from the ISS flows Kennedy Space Center and being readied through the fleet of orbiting Tracking and for this test. Data Relay Satellites (TDRS) to ground stations on Earth. The new communication The heavy-lift SLS will initially be capable of system upgrades dramatically improve ISS lifting 70-100 metric tons before evolving to data, audio, and video capabilities, doubling a lift capacity of 130 metric tons. The SLS the ability for the ISS to support scientific will use a liquid hydrogen/liquid oxygen pro- research. The number of video and audio pulsion system, with a Core Stage utilizing channels doubled as well, and the number existing Space Shuttle Main Engines for the of experiment data channels that can be initial capability. The first two SLS launches downlinked simultaneously increased from will feature five-segment solid rocket boost- 8 to 64, significantly increasing the ability to ers (SRBs) based on the Space Shuttle schedule and conduct research operations SRBs. For the upper stage, SLS will use an on the ISS. The upgraded ISS communica- Interim Cryogenic Propulsion Stage for the tions systems provide video and data from first two exploration missions. NASA is eval- experiments on the ISS to researchers on uating the appropriate phasing of advanced the ground. In addition, the extra audio chan- boosters and upper stages to achieve the nels provide more capability for researchers 130-metric-ton capability. to talk to the onboard crew while they are conducting the experiments in space. EGS will develop the necessary infrastructure and procedures at the Kennedy Space Center to prepare, assemble, test, launch,

Page 22 NASA FY 2013 Agency Financial Report Mission Performance

Image Caption: The SpaceX Dragon commercial cargo craft is berthed to the Earth-facing side of the Inter- national Space Station’s Harmony node. Dragon became the first commercially developed space vehicle to be launched to the station to join Russian, European and Japanese resupply craft that service the complex while restoring a U.S. capability to deliver cargo to the orbital laboratory. (Credit: NASA)

Other Key Achievements in FY 2013 transportation capabilities that will ensure NASA can fly crew members to the • NASA continues to extend human pres- ISS from US soil. In December, NASA ence in space by enabling an expanding awarded three certification products US commercial space transportation in- contracts to conduct activities that will dustry. NASA’s commercial cargo part- enable commercial crew transportation ners successfully delivered cargo to the certification. ISS. In October and March, the first two contracted SpaceX resupply missions • The utilization of the ISS as an observ- successfully berthed to the ISS, delivering platform enables the US Depart- ing supplies and returning scientific re- ment of Energy-sponsored Alpha Mag- search to Earth. In September, Orbital netic Spectrometer (AMS) to conduct its successfully flew their first COTS dem- world-class science research. The AMS onstration mission to the ISS also deliv- launched to the ISS in May 2011, and ering crew supplies and research. continues to provide new insights into our Milky Way Galaxy. The initial AMS • NASA’s three commercial crew partners cosmic-ray particle results, announced continue to make substantive progress in April 2013, indicated the existence of developing and demonstrating the crew either a previously unknown dark matter

NASA FY 2013 Agency Financial Report Page 23 Mission Performance

particle or a spinning neutron star (i.e., Astrophysics pulsar) somewhere relatively close to our Solar System. More recent AMS cosmic NASA leads the Nation and the world on a ray particle results announced in Rio de continuing journey to answer some of the Janeiro in July provide new insights into most profound questions that touch the the origin and propagation of cosmic hearts of all humanity: How does the Uni- ray particles in our Galaxy, and contra- verse work? How did we get here? Are we dict earlier, less precise measurements alone? The scope of astrophysics is truly made by other observatories and satel- breathtaking, ranging from the birth of the lites. universe and the development of stars and galaxies over cosmic time, to the search for • NASA and the European Space Agency life on planets around other stars. Often in (ESA) signed a Memorandum of Under- cooperation with ground-based observato- standing in January, where ESA will pro- ries, NASA astrophysics missions exploit the vide a service module for NASA’s Explo- full range of the electromagnetic spectrum ration Mission-1, currently scheduled for and the physics of high-energy subatomic launch in 2017. particles to understand the broad diversity of objects in the universe. Strategic Goal 2: Expand scientific understanding Kepler Dramatically Broadens the of the Earth and the universe Exoplanet Census in which we live. NASA’s Kepler Space Telescope is the first telescope capable of detecting Earth-sized NASA is expanding the scientific under- planets in the habitable zone of Sun-like standing of Earth and the universe by pursu- stars. A star’s habitable zone is the region of ing the answers to profound science ques- the star’s planetary system where liquid wa- tions: How and why are Earth’s climate and ter might exist on the surface of a celestial environment changing? How do planets body. The Earth is in the habitable zone of and life originate? How does the universe the Sun. Kepler announced the discovery of work, and what are its origin and destiny? over 1,200 new planet candidates, bringing Are we alone? Informed by the priorities set the total to more than 3,500 planet candi- by the Nation’s best scientific minds through dates orbiting over 2,600 unique stars. The the National Academies’ decadal surveys most difficult exoplanets to find are those in Earth science, heliophysics, planetary that are small and those that are farther from science, and astronomy and astrophysics, the star, and hence in the habitable zone. NASA develops missions of scientific exploration. NASA uses space observatories and In 2013, Kepler began to discover exoplan- space probes to view the Earth from space, ets that are almost as small as the Earth and observe and visit other bodies in the solar in orbits large enough to put the exoplanets system, and gaze out into the galaxy and near the habitable zone. Several of the exo- beyond. NASA analyzes the data gathered planets discovered in 2013 are smaller than by these science missions to enhance hu- Mercury and at least three of the newly dis- manity’s understanding of its place in the covered exoplanets are less than twice the universe. size of Earth and orbit in their star’s habitable

Page 24 NASA FY 2013 Agency Financial Report Mission Performance

Image Caption: Kepler: NASA’s first mission capable of finding Earth-size and smaller planets around other stars. The centuries-old quest for other worlds like our Earth has been rejuvenated by the intense excitement and popular interest surrounding the discovery of giant planets like Jupiter orbiting stars beyond our solar system. With the exception of the pulsar planets, all of the extrasolar planets detected so far are gas giants, approximately 150 as of 2005. The challenge now is to find terrestrial planets (habitable planets like Earth), which are 30 to 600 times less massive than Jupiter. (Credit: NASA)

zone. Finding such small planets, particu- exoplanet Kepler-69c is 70 percent larger larly in the habitable zone that is relatively than the size of Earth and orbits in the habit- far from their star, is a significant achieve- able zone of a star that is similar to our Sun. ment. Astronomers are uncertain about the composition of Kepler-69c, but its orbit of 242 The exoplanet Kepler-62f is only 40 percent days around a Sun-like star resembles that larger than Earth, making it the exoplanet of our neighboring planet Venus. closest to the size of the Earth known to be in the habitable zone of its star, which is Scientists do not know whether life could smaller and cooler than the Sun. Astrono- exist on the newfound planets, but their mers think that exoplanet Kepler-62f’s small discovery signals that we are another step size makes it likely to have a rocky composi- closer to finding a world similar to Earth tion. The exoplanet Kepler-62e orbits on the around a Sun-like star. Measuring the fre- inner edge of its star’s habitable zone and is quency of such systems is a primary goal of roughly 60 percent larger than Earth. The Kepler. As a first step toward this goal, us-

NASA FY 2013 Agency Financial Report Page 25 Mission Performance ing publicly available Kepler data, astrono- Earth Science mers announced in 2013 that six percent of red dwarf stars have habitable, Earth-sized Studying the Earth as an integrated system planets. Since red dwarfs are the most com- is essential to understanding the causes and mon stars in our galaxy, this implies that the consequences of climate change and other closest Earth-like planet could be just 13 environmental issues. Our planet is chang- light-years away and that there could be ing on all spatial and temporal scales. The more than a billion such planets in our Milky purpose of NASA’s Earth Science program Way galaxy. The question of whether or not is to advance our scientific understanding of this high frequency holds for Sun-like stars Earth as a system and its response to natu- will be answered by the analysis of the full ral and human-induced changes and to im- Kepler dataset. prove the ability to predict climate, weather, and natural hazards. Other Key Astrophysics Achievements in FY 2013 Study Investigates Carbon-Climate Feedback Hypothesis • Tremendous progress was made on the James Webb Space Telescope (JWST) A team of researchers used a state-of-the- during FY 2013. Two of the four science art, high-performance computing and data instruments were integrated into the In- access facility called NASA Earth Exchange tegrated Science Instrument Module at Ames Research Center to investigate the (ISIM), along with supporting electron- mechanisms underlying the relationship be- ics, and the ISIM was installed into the tween carbon dioxide levels and increased cryogenic vacuum chamber at Goddard temperatures. They analyzed widely avail- Space Flight Center for testing. able data of atmospheric carbon dioxide concentrations and global air temperatures • The Stratospheric Observatory for Infra- between 1959 and 2011, while studying out- red Astronomy (SOFIA) completed ex- puts from several dynamic global vegetation tensive system upgrades and began its models. They showed a strong and persis- first full-scale year of community science, tent coupling between interannual variations highlighted by the observatory’s first-ever of the carbon dioxide growth rate and tropi- deployment to the Southern Hemisphere cal land-surface air temperature during 1959 in July 2013. SOFIA achieved 100 per- to 2011. cent of its science objectives during this deployment. The study provides support for the “carbon- climate feedback” hypothesis, asserting that • NASA’s newest astrophysics mission, a warming climate will lead to accelerated the Nuclear Spectroscopic Telescope carbon dioxide growth in the atmosphere Array, or NuSTAR, and the European from vegetation and soils. Multiple Earth Space Agency’s XMM-Newton mission system processes, such as droughts and teamed up to measure definitively, for floods, also contribute to changes in the at- the first time, the spin rate of a black hole mospheric carbon dioxide growth rate. The with a mass 2 million times that of our new finding demonstrates that observed Sun. temperature changes are a more important factor than rainfall changes in the tropics. It

Page 26 NASA FY 2013 Agency Financial Report Mission Performance

also implies that the release of carbon dioxide from the tropical ecosystems will very likely be accelerated with future warming. Therefore, the study provides an important diagnostic tool for improved understanding of the contemporary and future global carbon cycle.

Landsat Data Continuity Mission Successfully Launched

On February 11, 2013, NASA successfully launched the Landsat Data Continuity Mis- sion (LDCM) from Vandenberg Air Force Base in California. The two instruments aboard LDCM image the Earth’s land surface and extend the Landsat 42-year land imaging data record for the United States and the world. The Landsat data record is the longest continuous Earth observing data record and provides invaluable reference material for our understanding of the changes that are ongoing in land use and land cover around the globe. The LDCM mission is a joint NASA/ United States Geological Survey (USGS) mission activity. Following a 90-day checkout, the USGS assumed responsibility for operational use.

Other Key Earth Science Achievements in FY 2013

• NASA scientists and university col- laborators analyzed observations from the Gravity Recovery and Climate Ex- periment (GRACE) satellite mission to evaluate freshwater storage trends in the north-central Middle East, including portions of the Tigris and Euphrates river basins and western Iran, from January Image Caption: The United Launch Alliance At- 2003 to December 2009. las V rocket carries the Landsat Data Continuity Mission spacecraft, launched from Vandenberg Air Force Base on February 11, 2013. (Credit: • NASA-funded scientists analyzed more NASA/Bill Ingalls) than a decade of satellite microwave radar data collected between 2000 and

NASA FY 2013 Agency Financial Report Page 27 Mission Performance

2009 over Amazonia. The observations of Antarctic ice shelves. They discov- included measurements of rainfall from ered that ice shelves lose the most mass NASA’s Tropical Rainfall Measuring Mis- to melting as opposed to calving, which sion and measurements of the moisture had traditionally been thought to be the content and structure of the forest cano- far-dominant mechanism for ice removal. py (top layer) from the SeaWinds scat- terometer on NASA’s QuikScat space- • NASA scientists analyzed twenty volca- craft. Their analysis showed that during nic plumes produced during the 2000, the summer of 2005, 70 million hectares 2001, 2002–03, 2006 and 2008 Etna of pristine Amazonian forest experienced eruptions, finding that volcanic aerosol an extensive, severe drought. This dispersal and column height obtained by megadrought caused drastic changes to this analysis is in good agreement with the forest canopy that were detectable ground-based observations. This work by satellite. highlights the potential of the Multi-angle Imaging SpectroRadiometer to detect • NASA’s analysis of Earth’s surface tem- important volcanic plume characteristics perature found that 2012 ranked as the that can be used to improve volcanic ash ninth-warmest year since 1880. NASA dispersion models. scientists at the Goddard Institute for Space Studies compare the average Heliophysics global temperature each year to the average from 1951 to 1980. This 30-year The domain of Heliophysics extends from period provides a baseline from which to the Sun all the way to the edge of the solar measure the warming that Earth has ex- system, billions of kilometers beyond Pluto, perienced due to increasing atmospheric where the Sun’s magnetic field meets inter- levels of heat-trapping greenhouse gas- stellar space. Heliophysics improves our es. understanding of basic physical processes throughout the solar system, and how the • NASA’s Operation IceBridge provided Sun, the major source of the energy through- laser altimetry and radar-derived ice out the solar system, impacts our techno- thickness data to the Bedmap2 effort, logical society. Studying the interconnected significantly increasing the density of system — the Sun, the heliosphere, Earth measurements in key areas. The Bed- and other planets’ space environments — is map2 products provide new opportuni- critical for predicting and mitigating the haz- ties for detailed modeling of the past ards associated with space exploration, both and future evolution of the Antarctic ice within Earth’s magnetosphere and beyond. sheets. Human astronauts and robotic probes in- creasingly rely on forecasts of space weath- • NASA-funded scientists used ice thick- er as a matter of existential necessity. He- ness and altimetry data — from Opera- liophysics provides science understanding tion IceBridge, ground-based radar echo that leads to prediction of how space weath- sounding, and interferometric synthetic er impacts the habitability of Earth and other aperture radar satellite data, along with worlds. reconstructions of surface accumulation — to complete a comprehensive survey

Page 28 NASA FY 2013 Agency Financial Report Mission Performance

Van Allen Probes Begin Operations tists hypothesize that the eruption of a solar filament a few days before caused the shock Launched on August 30, 2012, the Van Allen wave that led to the formation of the third Probes provide insight into the dynamics of ring. In addition, the new belt was virtually the Earth’s radiation belts and give scientists annihilated four weeks after it appeared by the data they need to make predictions for another powerful interplanetary shock wave this critical region of space. Shortly into the from the Sun. mission lifetime, the Van Allen Probes discovered a third radiation belt. Since their The interplanetary shocks that both cause discovery over 50 years ago, Earth’s radia- and disrupt the Earth’s radiation belts start tion belts have been considered to consist of with activity on the Sun. While not direct- two distinct regions (inner and outer belts) of ly related to this particular Van Allen Probe high energy electrons and protons trapped discovery, NASA’s Solar Terrestrial Rela- by Earth’s magnetic field. These donut tions Observatory (STEREO-A) spacecraft shaped regions extend from above our at- observed one of the fastest coronal mass mosphere to about six Earth radii in the ejections (CMEs) ever recorded in July equatorial region. Shortly before the instru- 2012. This was the most significant event ments on the Van Allen Probes began op- in the current solar cycle, an especially big erations, the Sun had sent streams of high surprise as this cycle is the weakest since speed particles toward Earth that caused the the dawn of the space age. If a CME of this radiation belts to swell. Then the Sun sent magnitude had impacted the Earth’s space an interplanetary shock wave toward Earth environment, it may have caused a space and something happened no one had ever weather event that could have greatly dis- seen before: most of the particles in the out- rupted our technologically-based society. er belt were stripped out, leaving behind a Certainly, CMEs of this magnitude greatly remnant that persisted for a month. Within affect the Earth’s radiation belts. The twin mere days of launch, the Van Allen Probes Van Allen Probes are well placed for us to had shown scientists something that would further our understanding of the Sun-Earth require rewriting textbooks. Incorporating connection. this new three-belt configuration into their models of the radiation belts offers scientists Other Key Heliophysics new clues about what causes the swelling Achievements in FY 2013 and shrinking of the belts. The swelling of the radiation belts is of particular interest be- • NASA launched the Interface Region cause the high energy particles can impact Imaging Spectrograph (IRIS) spacecraft satellites and pose a threat to human space on June 27, 2013. The IRIS images and flight. spectra of fine structure in the interface region between the Sun’s photosphere Spotting something new in space such as and corona will help scientists track how the third radiation belt has more implications magnetic energy contributes to heating than the simple knowledge that a third belt is in the Sun’s atmosphere. IRIS’s first impossible. In a region of space that remains ages show a multitude of thin, fibril-like so mysterious, any observations that link structures that have never been seen certain causes to certain effects adds anoth- before, revealing enormous contrasts er piece of information to the puzzle. Scien- in density and temperature occurring

NASA FY 2013 Agency Financial Report Page 29 Mission Performance

throughout this region even between • In Antarctica in January 2013, the sum- neighboring loops that are only a few mer at the South Pole, scientists re- hundred miles apart. leased 20 balloons, each eight stories tall, into the air to help answer an endur- • The Magnetospheric Multiscale (MMS) ing space weather question: When the mission is a Solar Terrestrial Probes mis- giant radiation belts surrounding Earth sion comprised of four identically instru- lose material, where do the extra par- mented spacecraft that will use Earth’s ticles actually go? The NASA-funded magnetosphere as a laboratory to study Balloon Array for Radiation-belt Relativ- how the Sun’s and Earth’s magnetic istic Electron Losses (BARREL) mission fields connect and disconnect, explo- seeks an answer to this question. Dur- sively transferring energy from one to the ing this month of bright, sunny days, the other — a process that occurs through- BARREL team launched a balloon every out the universe, known as magnetic re- day or two into the circumpolar winds connection. This year MMS entered into that circulate around the pole. Each bal- the final development phase, assembly, loon floated for anywhere from three to integration, and test. 40 days, measuring X-rays produced by fast-moving falling electrons high up in

Image Caption: This fisheye image shows NASA’s four Magnetospheric Multiscale, or MMS, observatories inside the cleanroom at NASA’s Goddard Space Flight Center in Greenbelt, Md. (Credit: NASA)

Page 30 NASA FY 2013 Agency Financial Report Mission Performance

the atmosphere. BARREL works hand of all NEOs detected. in hand with NASA’s Van Allen Probes, which travel directly through the Van Al- Earlier this year, on February 15, 2013, an- len radiation belts. other near-Earth asteroid, 2012 DA14 (about 50 meters across) passed within 27,700 ki- Planetary Science lometers of the Earth’s surface. This is below the Earth’s ring of geosynchronous sat- Planetary science is a grand human enter- ellites, which orbit at 35,800 kilometers. prise that seeks to understand the history of our solar system and the distribution of life Curiosity Completes First Year within it. NASA is at the frontier of a jour- of Operations ney of scientific discoveries that are yielding a profound new understanding of our NASA’s Mars Science Laboratory Curios- solar system. Robotic exploration is the cur- ity Rover celebrated its first anniversary on rent approach to planetary science and is Mars. Curiosity’s goal is to assess the po- the necessary precursor to the expansion tential for Mars to have supported life. One of humanity beyond Earth. Ground-based year later, we are able to conclude that mi- research and observations supplement our crobial life could indeed have lived on Mars. space-based assets. NASA’s strategic ob- Four publications in Science document the jective in planetary science is to ascertain findings. the content, origin, and evolution of the solar system and the potential for life elsewhere. About six months into the mission, Curios- Underlying this goal are the themes of com- ity’s MastCam imaged surface conglomer- parative planetology and habitability, the ca- ates: rounded pebbles of varying size “ce- pacity of an environment, as it pertains to an mented” together that indicate an ancient entire planet or a specific region, to harbor streambed on the surface. A few months life in the past, present, or future. later, the Chemistry & Mineralogy and the Sample Analysis at Mars (SAM) instruments Near Earth Object Observation Efforts analyzed the area downstream, showing the water to be of low salinity and neutral pH, In June 2013, the near-Earth object (NEO) and the environment to contain all the ele- observation program uncovered the mental ingredients for life, such as carbon 10,000th NEO. This object, an asteroid, has and nitrogen. the provisional designation 2013 MZ4. The Panoramic Survey Telescope and Rapid Re- Mars largely established its atmosphere sponse System (Pan-STARRS) telescope, four billion years ago, according to repeated which sits atop the 3,000 meter [10,000- measurements of the Martian atmosphere foot] Haleakala caldera on the island of Maui by SAM, and the subsequent and substan- in Hawaii, discovered this new object. By tial loss of the atmosphere occurred primar- definition, NEOs include both asteroids and ily through the atmosphere’s top versus comets that come within 45 million kilome- interactions with the surface. Additionally, ters of Earth’s orbit. Since NASA accepted measurements from the Radiation Assess- the Congressional mandate for the NEO ment Detector characterized the radiation observation program 15 years ago, NASA- environment that future astronauts could funded surveys first discovered 98 percent potentially experience en route to Mars. Cu-

NASA FY 2013 Agency Financial Report Page 31 Mission Performance riosity is now headed towards its ultimate seas of ethane and methane have a lower destination, Mt. Sharp. surface tension than the equivalent bodies of liquid on Earth. These and other factors Cassini Continues Extended Mission mean that even a light wind of one mile an hour could potentially whip up waves on Ti- NASA’s Cassini spacecraft, now in its sec- tan’s lakes and seas. Winds are predicted ond extended mission, continues to amaze to exceed the threshold for wild weather as with new discoveries. Stunning new views Titan approaches summer solstice in 2017. from Cassini reveal the eye of the enormous Even tropical cyclones could conceivably hurricane locked in place at Saturn’s north occur over Titan’s polar hydrocarbon seas pole. The new views of Saturn’s polar ar- as summer warms the northern hemisphere. eas, the first in visible light, are possible due to recent changes made in Cassini’s orbit- Other Key Planetary Science al path. Spring in the northern hemisphere Achievements in FY 2013 means Saturn’s north pole is illuminated by sunlight. The eye of the storm, about 1,250 • Lunar Atmosphere and Dust Environ- miles wide, would stretch the distance be- ment Explorer (LADEE) is a robotic mis- tween Washington, DC and Tulsa, OK. The sion successfully launched September wind in the storm’s eye-wall blows more than 6 from NASA’s Wallops Flight Facility to four times the 73 mph of a hurricane force orbit the Moon, gathering detailed infor- wind on Earth. Earth hurricanes feed off of mation about the thin lunar atmosphere, warm ocean water, but there is no body of conditions near the surface, and environ- water close to these clouds high in the at- mental influences on lunar dust. mosphere of Saturn. Learning how these Saturnian storms use the water vapor that is available to them could tell scientists more about how all hurricanes are generated and sustained.

Wind-whipped waves and cyclones could occur on Saturn’s moon Titan as summer ar- rives in the north toward the end of Cassini’s mission. Recent new research reveals the possibility for wild weather on the only other body in the solar system besides Earth with stable liquid on its surface. Cassini observations of waves, or no waves, during this time will provide valuable clues about the composition of Titan’s lakes and seas, and help determine the accuracy of the Global Circulation Model for Titan. Some of Titan’s Image Caption: Saturn’s third-largest moon, Di- hydrocarbon lakes and seas are as large one, can be seen through the haze of its largest as the Great Lakes or Caspian Sea. Titan moon, Titan, in this view of the two posing be- has a denser and much colder atmosphere fore the planet and its rings from NASA’s Cassini spacecraft. (Credit: NASA/JPL-Caltech/Space than Earth’s and less gravity. Its lakes and Science Institute)

Page 32 NASA FY 2013 Agency Financial Report Mission Performance

• The Gravity Recovery and Interior Lab- et. The PhoneSats successfully operated oratory (GRAIL) mission, which ended for six days before deorbiting as planned. in December 2012, revealed the origin of dense subsurface regions that make A small team of engineers working on NA- the Moon’s gravity uneven, a phenom- SA’s PhoneSat at the Ames Research Cen- enon that affects the operations of lunar- ter aims to rapidly evolve satellite archi- orbiting spacecraft. They pinpointed the tecture and incorporate the Silicon Valley locations of large, dense regions called approach of “release early, release often” to mass concentrations, or mascons, which small spacecraft. To achieve this, NASA’s are characterized by strong gravitational PhoneSat design makes extensive use of pull. Mascons lurk beneath the lunar sur- commercial off-the-shelf components, in- face and cannot be seen by normal opti- cluding an unmodified, consumer-grade cal cameras. smartphone. Specifically, PhoneSats are built around a Nexus One, made by HTC Strategic Goal 3: Corp. and running Google’s Android oper- Create innovative new space ating system. Out-of-the-box smartphones technologies for our exploration, already offer a wealth of capabilities needed science, and economic future. for satellite systems, including fast proces- sors, versatile operating systems, multiple miniature sensors, high-resolution cameras, For decades, NASA investment in space GPS receivers, and several radios. technology has helped make the United States the global leader in space explora- The successful on-orbit operation of Phone- tion and has significantly contributed to the Sat demonstrated that a smartphone operat- technology-based US economy. NASA con- ing system can be used in lieu of a tradition- tinues that legacy today through a balanced al, custom-built spacecraft Command and portfolio of technology development across Data Handling system. This approach has a broad range of technical areas and at vari- the potential to significantly reduce space- ous stages of technical maturity. We invest craft software costs for some applications. in pioneering concepts that help develop the innovation community, transformative and crosscutting technology breakthroughs that enable more challenging missions, and new ideas and markets that strengthen the economy and contribute to US technological global leadership.

NASA Successfully Launches and Operates Smartphone Nanosatellites

During FY 2013, NASA demonstrated the lowest-cost satellites ever flown in space. On April 21, 2013, two copies of PhoneSat Image Caption: Roughly the size of a coffee 1.0 and an early prototype of PhoneSat 2.0 cup, PhoneSat 1.0 is a capable satellite that le- verages off-the-shelf smartphone technology. rode into orbit aboard the maiden flight of (Credit: NASA) Orbital Science Corporation’s Antares rock-

NASA FY 2013 Agency Financial Report Page 33 Mission Performance

In addition, the mission demonstrated the Built by Boeing at their Tukwila, Washington use of the smartphone’s sensors to deter- facility, the 2.4-meter (almost 8-foot) tank mine spacecraft orientation and its camera arrived at Marshall Space Flight Center in for Earth observations. Commercial off-the- the first quarter of FY 2013 to begin testing. shelf parts also included a watchdog circuit Engineers insulated and inspected the tank that monitors the systems and reboots the and then put it through a series of pressur- phone if it stops sending radio signals. ized tests to measure its ability to contain liquid hydrogen at extremely cold tempera- Smartphones offer the potential for flying tures. Engineers cooled the tank down to small, low-cost, powerful satellites for at- –423 degrees Fahrenheit and underwent 20 mospheric or Earth science, communica- pressure cycles, changing the pressure up tions, or other space-borne applications. to 135 psi. They also may open space to a whole new generation of commercial, academic, and The testing experience with the 2.4-meter citizen-space users. In the coming years, tank validates the team’s novel tooling ap- NASA will continue to demonstrate new in- proach, manufacturing techniques, and novative small spacecraft systems, includ- testing procedures, paving the way for the ing distributed networks of small satellites. testing next spring of the largest out-of-au- Such distributed networks offer the potential toclave composite cryogenic tank ever built. to replace traditional large spacecraft sys- It is this 5.5-meter (over 18-foot) tank that tems at significantly reduced costs. could lead to a significant increase in SLS payload capability. NASA Successfully Tests New Cryogenic Propellant Tank Technology NASA Develops SSTIP

During FY 2013, NASA completed a major In February 2013, NASA completed the de- space technology development milestone velopment of the Strategic Space Technol- by successfully testing a pressurized, large ogy Investment Plan (SSTIP), an actionable cryogenic propellant tank made of out-of- plan that lays out the strategy for develop- autoclave composite materials. In the past, ing technologies essential to the pursuit of propellant tanks have been fabricated from NASA’s Mission and national goals. NASA metals. Switching to composite construc- made improvements to TechPort (a technol- tion could lead to rocket propellant tanks ogy portfolio data collection and analysis that are 30 percent lighter and cost 25 per- tool), and used the system to collect detailed cent less than state-of-the-art metal tanks. information about more than 1,000 projects Such a reduction in weight would dramati- in NASA’s technology portfolio. NASA ana- cally increase the performance capabilities lyzed the Agency portfolio to minimize du- of future space systems. A potential initial plication, identify gaps, identify potential target application for this cryogenic technol- partnerships, and in July 2013 made strate- ogy is an upgrade to the upper stage of the gic decisions that ensure technology invest- SLS heavy-lift rocket. Other potential ap- ment dollars are optimized to provide criti- plications include commercial launchers, in- cal capabilities that support missions and space propellant storage, and future vehicle longer-term national needs. and lander systems. In June 2013, NASA announced the Asteroid

Page 34 NASA FY 2013 Agency Financial Report Mission Performance

Grand Challenge to “find all asteroid threats tion project. to human populations and know what to do about them” with the sole purpose of engag- • Completed major milestones for the So- ing in partnerships to generate public ben- lar Sail Demonstration project. efit. In addition, NASA announced several new prizes and crowdsourcing opportunities • Delivered a three kilowatt non-flow- relating to Unmanned Aerial Systems air- through fuel cell stack for testing at Glenn space operations, International Space Sta- Research Center. tion longeron shadowing, Robonaut vision, and Earth science big data to enable new • Completed NASA’s first fully manifested partners to help NASA solve tough prob- flight on UP Aerospace’s SpaceLoft Sys- lems. tem.

NASA continued to promote the availabil- • Selected 65 graduate students as the ity of NASA technologies for use by the US 2013 class of Space Technology Re- public and private sectors, and accelerate search Fellows. the technology to market cycle, enabling significant capabilities to produce benefits • Supported the development of the Glob- more quickly. As part of this effort, NASA al Exploration Roadmap Technology completed 5,111 technology-related prod- Development Map, a comprehensive in- ucts, including patents, licenses, and mis- ternational data repository of technology sion use agreements. development activities.

Through the course of the year, NASA es- • Supported the Space Frontier Founda- tablished 50 partnerships with US industry, tion in their annual “New Space Business or other US agencies, and other entities. Plan Competition”, the most prominent These strategic partnerships were designed business plan competition of its kind, to expand and strengthen NASA’s ability to with the goal of encouraging American execute its Mission and enable NASA to le- space entrepreneurship and generating verage funding, capabilities, and expertise US commercial activity and other public within and outside the Agency to address benefits in the process. technology barriers and advance technology. Strategic Goal 4: Advance aeronautics research Other Key Achievements in FY 2013 for societal benefit. • Successfully tested the first 3D printed rocket engine injector. Aviation is a transportation mode that con- nects nations, cities, businesses, and peo- • Awarded a Level 1 prize at the Sample ple to support a growing and vital global Return Robot 2013 Centennial Chal- economy. Within the United States, aviation lenge. is essential to economic well being. Since our establishment, NASA has continually • Completed major milestones for the La- advanced America’s aviation system to im- ser Communication Relay Demonstra- prove our quality of life and productivity on

NASA FY 2013 Agency Financial Report Page 35 Mission Performance

Image Caption: The Environmentally Responsible Aviation Project successfully completed testing in the Langley Research Center’s 14x22-Foot Subsonic Wind Tunnel to demonstrate the noise reduction potential of the Hybrid Wing Body aircraft configuration. (Credit: NASA/Sean Smith)

Earth. NASA contributes unique innovations system. to aviation through our research activities. These innovations serve as key enablers for NASA Works to Reduce Barriers for the vital role of US commercial aviation in Unmanned Aircraft Integration in to the sustaining American commerce and safe, National Airspace System environmentally-sustainable mobility, and hence the Nation’s economic well being. The vast emerging potential of unmanned Our role is to explore early-stage concepts aircraft to perform commercial, defense, and ideas, develop new technologies and scientific, and emergency management ser- operational procedures through foundation- vices is driving the critical need for less real research, and demonstrate the potential strictive access by Unmanned Aircraft Sys- of promising new vehicles, operations, and tems (UAS) to the National Airspace System safety technology in relevant environments. (NAS). Existing Federal Aviation Regula- We are focused on the most appropriate tions (FAR) procedures and technologies do cutting edge research and technologies to not allow routine UAS access to the NAS. overcome a wide range of aeronautics tech- To reduce these barriers, NASA is invest- nical challenges for the Nation’s and the ing in research that will transition concepts, globe’s current and future air transportation technologies, algorithms, and knowledge to

Page 36 NASA FY 2013 Agency Financial Report Mission Performance

the Federal Aviation Administration (FAA) a given timeframe. Tests of the software and other stakeholders to help them in de- conducted during the past few years show fining the requirements, regulations, and is- that PDRC could help improve compliance sues for routine access. with the departure time by up to 80 percent, thereby improving the use of slots in the A primary component of the UAS research is overhead stream of air traffic that can go the development and utilization of a unique empty due to timing issues on the ground. test environment that integrates real unmanned vehicles flying in restricted airspace Two series of exercises conducted at NA- virtually embedded in actual and simulated SA’s North Texas Research Station, near air traffic data with air traffic control facilities the Dallas/Fort Worth International Airport, and ground control stations. This test en- tested and evaluated the PDRC software, vironment will allow for the safe but realis- beginning in May 2012 and concluding ear- tic testing of UAS integration concepts and lier this year. During the evaluation, the flight characteristics. This testing is planned prototype PDRC system was used by FAA for 2015 and 2016. controllers to schedule departure times for real, operational airline flights. The PDRC In 2013, NASA successfully conducted a software tool is the latest example in a long series of characterization tests of this com- history of NASA’s technical contributions to plex test environment in order to establish a the aviation community. baseline of the system’s capabilities. Ames Research Center was responsible for con- Other Key Achievements in FY 2013 ducting the tests, with participation from Dryden Flight Research Center and Glenn • NASA successfully completed testing in Research Center (GRC) running compo- the Langley Research Center’s 14x22- nents at their facilities. The GRC S-3B “Vi- Foot Subsonic Wind Tunnel to demon- king” aircraft was utilized as a live flight par- strate the noise reduction potential of ticipant. The major objectives of the tests the Hybrid Wing Body (HWB) aircraft were to measure and characterize times configuration. This testing investigated from data generation to reception (i.e., sys- the combined airframe and jet engine tem latencies) and overall data volume ca- noise using a HWB model and a com- pabilities (i.e., throughput) at well defined pact jet engine noise simulator. The test- points in the system. Every objective of the ing also characterized the ability of the test series was met. HWB airframe to “shield” emitted noise. Results indicated that the HWB configu- NASA Transfers Delay-Reducing ration will meet the project goals of 36 Software to FAA decibels perceived noise reduction below the FAA noise standard. Numerous NASA presented the prototype software for upgrades were made to the wind tunnel the Precision Departure Release Capabil- to enable this testing, further augment- ity (PDRC) to the FAA in August 2013. With ing this critical national asset for future PDRC, controllers will be able to improve the research needs. overall efficiency of air traffic management by reducing missed or delayed departures • NASA made significant progress toward and allowing more aircraft to depart within characterizing the emissions from alter-

NASA FY 2013 Agency Financial Report Page 37 Mission Performance

native fuels by successfully completing these ice crystals may cause ice to form in-flight and ground-based tests in April inside a jet engine in a way that can de- 2013 to measure the gaseous and par- grade its performance, potentially lead- ticulate emissions from aircraft engines ing to engine power loss. NASA used burning an alternative biofuel. Pre- the data gathered during this testing to liminary results indicate that the biofuel calibrate and validate a computational blends tested may substantially reduce tool used to assess the risk of engine ice the emission of black carbon, sulfates, crystal icing. and organics. Future efforts will assess contrail formation using these fuel blends • A field trial was conducted with American to further ensure that there are no ad- Airlines for NASA’s Dynamic Weather verse effects on the environment. Routing (DWR), a tool that continually analyzes flight trajectories and weather • NASA successfully replicated multiple conditions, and then suggests course engine power loss events that have oc- corrections to avoid the trouble. Field tri- curred when aircraft encountered high als like these are the final step required ice water content icing conditions. Air- before NASA delivers the DWR tool to craft flying through high altitude thunder- carriers and system operators for im- storms encounter high concentrations of proved flight efficiencies and cost sav- ice crystals. Under certain conditions, ings.

Image Caption: Judy Van Zante, NASA Glenn icing cloud specialist, was the first person to calibrate the high altitude ice crystal cloud environment necessary to cause a loss of engine power during an engine test in the PSL. (Credit: NASA)

Page 38 NASA FY 2013 Agency Financial Report Mission Performance

• Maintaining a Total Case Rate and Lost Strategic Goal 5: Time Case Rate that exceeded the goals Enable program and institutional of the President’s Protecting Our Work- capabilities to conduct NASA’s ers and Ensuring Reemployment initia- aeronautic and space activities. tive.

NASA accomplishes its mission by effective- • Reducing the non-mission failure dam- ly managing our people, technical capabili- age to NASA assets. ties, and infrastructure. We provide secure and effective information technologies and Diversity: Work Culture services that enable NASA’s mission. NASA continues to renew and sustain its capabili- NASA’s Office of Diversity and Equal Oppor- ties into fewer, more efficient facilities and tunity (ODEO) and Office of Human Capital ensure that NASA’s key technical capabili- Management (OHCM) co-led Agency-wide ties will be available in the future to support efforts to implement the Agency’s Diversity the missions that require them. We attract and Inclusion (D&I) Strategic Implementa- and advance a highly skilled, competent, tion Plan. All NASA Centers developed their and diverse workforce. Diversity, sustain- own Center D&I Plans, designed to align ability, and innovation are keys to NASA’s with the Agency’s Plan as well as to address adaptability, and an integral part of NASA’s their local cultural issues. mission success. NASA strives for an organizational culture and work environment NASA’s talented, unique, and innovative that includes varying perspectives, educa- workforce is the main reason for the Agen- tion levels, skills, life experiences, and back- cy’s celebrated history and its reputation for grounds to enable excellence and allow in- achieving the seemingly impossible. NASA’s dividual and the organization to maximize Mission requires every employee to seek potential. The support and participation ways to promote advances in his or her dis- of everyone at NASA, including executive cipline area. Sustained efforts to advance, leadership, managers, supervisors, and em- both at the individual and organizational lev- ployees, are critical components of success- els require an innovative approach to the ful implementation. work of NASA’s Mission as well as an inclusive culture that values and supports the Safety and Mission Success people who make it possible.

NASA’s Safety and Mission Success (SMS) NASA conducted the Virtual Executive Sum- program successfully implemented its stra- mit (VES), which demonstrated that relevant tegic objective of enhancing mission suc- Agency communications, collaboration, and cess of NASA’s programs, projects, and learning can be effectively delivered in a operations, while ensuring the safety and distributed environment that engages em- health of the public and the NASA workforce ployees both virtually and onsite. This se- in FY 2013. SMS demonstrated this by: ries of sessions, activities, and interactions conducted in an online environment over a • Zero fatalities or permanent disabling in- 30-day period allowed flexibility in how and juries to the public resulting from NASA when Agency executives from across the activities. country participated. In addition to achieving

NASA FY 2013 Agency Financial Report Page 39 Mission Performance cost savings, VES supported the Agency’s user services, service desk capabilities, and efforts to create an innovative workplace web services and technologies. NASA’s fi- where important Agency work can be con- nal enterprise-wide contract in this series of ducted anywhere and anytime. IT Infrastructure Integration Program (I3P) contracts was awarded in 2013 for Web En- Information Technology terprise Service Technologies. The completion of these I3P enterprise IT contracts has NASA’s Office of the Chief Information- Of enabled the OCIO to set forth on the trans- ficer (OCIO) has made significant advances formation of IT infrastructure services to in the transition of NASA’s information tech- more efficiently deliver the mission support- nology (IT) infrastructure services from a ing IT capabilities required for NASA’s next Center-based model to an enterprise-based generation of missions. IT management and provisioning model. In FY 2013, the Agency realized $32.7 million Sustainability in cost savings through continuous focus on consolidating legacy IT contracts with the ob- NASA continues essential infrastructure re- jective to reduce Agency costs while improv- pair and revitalization activities as well as re- ing customer experience, security, and gov- pair by replacement of facilities. Repair by ernance. The IT infrastructure services in replacement projects are those that provide this broad effort include enterprise business sustainable and energy efficient infrastruc- and management applications, integrated ture by replacing old, inefficient, deteriorat- network and communications services, end ed buildings with new, efficient, high-perfor-

Image Caption: Building N232 (Sustainability Base) is a 48,000 sf building at Ames Research Center with a LEED Platinum rating. This sustainable building produces more electricity than it uses. (Credit: NASA)

Page 40 NASA FY 2013 Agency Financial Report Mission Performance

mance buildings. are going through the disposition process. SCAP also provided design and final sys- NASA continues to reduce infrastructure by tems check-out and verification support for disposing of unneeded facilities, and demol- upgrades at Johnson Space Center’s Ther- ish unneeded Shuttle infrastructure such as mal Vacuum Chamber A. the mate/demate device at DFRC and facilities no longer used at Plum Brook Station, Environmental Sandusky, OH. NASA released a Draft Environmental Impact NASA continues to evaluate, in coordination Statement (DEIS) that evaluates potential with the Department of Defense (DoD), the environmental impacts of proposed demoli- status of its aeronautics test capabilities to tion and environmental cleanup activities of ensure that tactical maintenance and repair, property administered by NASA at the Santa along with strategic capability investment Susana Field Laboratory in California. The decisions, have been considered from a National Environmental Policy Act requires national point-of-view relative to long-term analysis of potential impacts of certain ac- requirements and risks. In doing so, NASA tions undertaken by a Federal agency. The ensures the availability of a critical suite of DEIS is intended to inform NASA decision- aeronautical test facilities that are capable of makers, regulating agencies, and the public supporting research, development, test, and of the potential environmental consequenc- evaluation goals and objectives for NASA es of the proposed demolition of buildings and the Nation. and structures and the proposed environmental cleanup actions for groundwater and Strategic Capabilities Assets Program soil at the NASA-administered portion of the (SCAP) continued to sustain and ensure Santa Susana Field Laboratory. The DEIS that the test facilities identified as essential considers a range of remedial technologies to the Agency were maintained in a state that might be implemented to achieve the of readiness. SCAP maintained the skilled proposed groundwater and soil remediation workforce and performed preventative main- goals. NASA will use the DEIS to consider tenance necessary to keep these facilities the potential environmental, economic, and available to meet current and future program social impacts of the proposed remediation requirements. action.

Among its accomplishments, SCAP’s spe- Other Key Achievements in FY 2013 cialized workforce supported the design and relocation of major test equipment from the • Recognizing that cybersecurity is critical Johnson Space Center arc jet testing ca- to protect NASA’s sensitive information, pability to the Ames Research Center. The including personally identifiable informa- relocation was completed in FY 2013. In tion (PII), we completed the data-at-rest addition, NASA assessed its thermal vacu- (DAR) full-disk encryption for all NASA- um chamber testing capabilities across its issued laptops (with the exception of lap- field Centers. Four under-utilized chambers tops that have received a waiver), as well at the Jet Propulsion Laboratory, Kennedy as desktops with sensitive data. This ef- Space Center, and Marshall Space Flight fort significantly mitigates the risk of criti- Center were identified for divestment and cal data loss in the event that a computer

NASA FY 2013 Agency Financial Report Page 41 Mission Performance

is lost or stolen. many different launch vehicles.

• The Agency continued to improve gov- • Significant environmental projects were ernance for business systems and IT in- done at the Launch Complex-39 launch frastructure. Our increased visibility into pads, and the crawler way has a new Center IT budgets led to the identifica- foundation that will enable the transport tion of potential Agency-wide projects to of multi-ton hardware to the launch pads. improve service, security, and efficiency. The Launch Control Center has been We also improved visibility into institu- configured to support multiple commer- tional IT within the Agency’s budget sub- cial users, and construction has begun mission, enabling further opportunities to on an upgraded spacecraft processing drive efficiencies. facility to provide world-class processing capabilities. • The 21st Century Space Launch Com- plex initiative has made great strides • The TDRS Constellation provides critical toward the modernization and transfor- communications services to a diverse mation of Kennedy Space Center into a fleet of spacecraft. To sustain this critical multi-user spaceport benefiting both gov- capability, the eleventh TDRS spacecraft ernment and commercial launch service launched in January, and the next TDRS providers. In the Vehicle Assembly Build- spacecraft is being prepared for launch ing, existing platforms were removed early next year. to prepare the facility to accommodate

Image Caption: The first of NASA’s three next-generation Tracking and Data Relay Satellites (TDRS), known as TDRS-K, launched at 8:48 p.m. EST Wednesday, January 30, 2013 from Cape Canaveral Air Force Station in Florida. TDRS-K was lifted into orbit aboard a United Launch Alliance Atlas V rocket from Space Launch Complex-41. (Credit: NASA)

Page 42 NASA FY 2013 Agency Financial Report Mission Performance

• The Aeronautics Test Program complet- matics (STEM) education, particularly those ed a condition assessment of the ground who are traditionally underrepresented in support facilities, systems, and equip- STEM fields, aids greatly in meeting both ment within the ARMD Flight Test Proj- national and Agency goals. ect portfolio. This assessment provides valuable knowledge of the ground-based Education Highlights assets that support critical flight testing and will inform strategic investment deci- The Office of Education manages the port- sions to ensure that relevant flight testing folio that continues the Agency’s tradition of capabilities continue to be available to investing in the Nation’s education programs support the research, development, test, and supporting the country’s educators who and engineering milestones of NASA play a key role in preparing, inspiring, excit- and DoD programs. ing, encouraging, and nurturing the young minds of today who will be the workforce of • The Aeronautics Test Program provided tomorrow. In FY 2013, NASA continued to a new, operational engine icing research pursue three major education goals: capability at the Propulsion Simulation Laboratory in FY 2013. The first test • Strengthening NASA and the Nation’s fu- completed successfully in February and ture workforce. validated the design performance of the new engine icing capability. This new • Attracting and retaining students in sci- capability will enable research into the ence, technology, engineering and math- high-altitude engine icing problems en- ematics, or STEM, disciplines. countered by commercial aircraft and will help ensure that relevant testing capabili- • Engaging Americans in NASA’s Mission. ties are available to support the research, development, test, and engineering mile- NASA education continues to establish part- stones of NASA and national programs. nerships that enable NASA to promote effective utilization of current resources as we reach wider and more targeted audiences Strategic Goal 6: of participants. NASA education enters into Share NASA with the public, educa- partnerships with innovative organizations tors, and students to provide oppor- that have wide ranging areas of expertise tunities to participate in our Mission, and access to and knowledge of communi- foster innovation, and contribute to ties identified to yield national impact. a strong national economy. NICE Project Public outreach, partnerships, and external assistance are important methods for The NASA Innovations in Climate Educa- communicating NASA’s Mission and invit- tion (NICE) project has created an extensive ing broad participation, allowing NASA to national network of climate change projects truly make space for all people. The Agency and enthusiasts as a result of its collabora- strives to include as many voices as possi- tion with Federal agencies, minority serving ble. Fostering the interest of students in sci- institutions, organizations, community col- ence, technology, engineering, and mathe- leges, and school districts with significant

NASA FY 2013 Agency Financial Report Page 43 Mission Performance

Image Caption: Shaun Smith, a flight projects education specialist at the NASA Dryden-affiliated AERO Institute in Palmdale, Calif., demonstrates imagery from an infrared camera to two student attendees at the 2013 Salute to Youth. (Credit: NASA/Ken Ulbrich) underrepresented and underserved enroll- tion was female, 43 percent were American ment and reach. This network has helped to Indian, Alaskan Native, or Native Hawai- maintain a portfolio of 71 project activities fo- ian/Pacific Islander, and 23.4 percent were cused on strengthening the climate change Black or African American. education skills of current and future educators and learners alike. The Competitive Program for Science Mu- seums and Planetariums Plus Opportunities The NICE project engaged learners across for NASA Visitor Centers and Other Informal the education spectrum, with 3,116 under- Education Institutions responds to Congres- graduate students and 287 graduate and sional direction to establish “a competitive postdoctoral researchers participating in program as authorized by section 616 of NICE activities. Over 4,686 elementary PL 109-155 for science museums and plan- and secondary students and 2,661 educa- etariums to enhance programs related to tors were engaged in NICE project activities. space exploration, aeronautics, space sci- With a goal of increasing the number of un- ence, Earth science or microgravity.” The derrepresented and underserved students new “Nature Research Center” wing of the in STEM and specifically within the climate North Carolina Museum of Natural Sciences change community, the reported NICE proj- in Raleigh, NC opened its doors for 24 solid ect student demographic information indi- hours to celebrate its grand opening. NASA cates that 55 percent of the student popula- demonstrated virtual tours of the Solar Sys-

Page 44 NASA FY 2013 Agency Financial Report Mission Performance

tem, cloud-based citizen science opportuni- Continuing to broaden NASA’s reach, NASA ties, games, and NASA Discovery Kiosks in initiated Google+ Hangouts on Air as a way the event. For more information, see: http:// to communicate information and engage dif- naturalsciences.org/programs-events/gran- ferent audiences. It did not take long before dopening. The new wing features NASA- the tool, allowing easy participation from funded exhibits on Earth and space science, anywhere on and off the globe, became a including Beyond Our Planet. To view an im- staple of NASA communications. age of the exhibit, see: http://www.flickr.com/ photos/naturalsciences/7008557421/in/set- On July 10, 2013, NASA successfully hosted 72157630050237368. its first press conference by Hangout, prov- ing that news could be presented through The Louisiana Art and Science Museum in virtual tools, saving the government and Baton Rouge, LA completed and released reporters travel costs while still allowing for its first planetarium show, We Choose full participation by participants and media. Space, initiating its Future Space: Engaging NASA also hosted the first Hangout from the Public After Shuttle project. Produced by space, connecting thousands of members a project partner at the Houston Museum of the public with astronauts onboard the In- of Natural Science (HMNS), the 24-minute ternational Space Station. There have been long show has been seen by 9,388 students, other high-profile Hangouts, including one teachers, and the public in portable planetar- with astronauts in space talking to the cast iums in the Houston area and by 6,192 peo- of Star Trek: Into Darkness. ple in the HMNS Burke Baker Planetarium. It is offered for licensing through http://www. With new missions taking center stage, spaceupdate.com, and available for preview NASA communications focused on building online at http://tinyurl.com/wechoosespace. an integrated communications plan to show- Focusing on human spaceflight after the case operations by our commercial cargo Space Shuttle, We Choose Space is the first partners, with guest operations at SpaceX planetarium show told completely by astro- and Orbital Sciences launches, compre- nauts (Tom Jones, Scott Parazynski, and hensive coverage of the first-ever contract Gene Cernan) and a famous reporter (Wal- cargo flight to the ISS, and the inauguration ter Cronkite), and to use fisheye photogra- of America’s newest spaceport at Wallops phy from inside the ISS. An educator guide, Island, Virginia. created by a master’s student in Science Teaching, accompanies the show. An integrated communications process was developed and put into practice based on Office of Communication the efforts of the Communications Coordi- nating Council. NASA accelerated plans to NASA’s Office of Communications informs build a comprehensive portfolio of all com- the public and engages them in NASA’s mis- munications activities across the Agency. sions. We have a responsibility to provide accurate, timely information on the Agency’s MissionSTEM Highlights Mission and activities. We also have a responsibility to make the American space In November 2012, NASA’s Office of Diver- program open and transparent, and connect sity and Equal Opportunity launched its Mis- the public with our programs and projects. sionSTEM Web site to provide our grantee

NASA FY 2013 Agency Financial Report Page 45 Mission Performance institutions, including university and college institution to advance diversity in STEM. STEM programs, as well as science cen- The series includes an introductory mes- ters and museums across the country, with sage from the NASA Administrator, and a important information on helping to ensure series of videos by academic leaders dis- equal educational opportunities, fostering cussing specific themes in this arena, for ex- STEM talent, and sharing promising prac- ample, increasing the numbers of minorities tices for diversity and inclusion. The Web in STEM. The D&I Leadership Series is a site offers a wealth of content in these ar- first in creating a nationwide forum for NASA eas, designed both to broaden the scope of grantees to share promising practices on in- NASA’s contact with its grant recipients and creasing diversity and enhancing inclusion to encourage grantees to communicate with efforts in STEM. each other in advancing equal opportunity, diversity, and inclusion. NASA also developed the Tech Series, which consists of videos of NASA scientists, As a key purpose of MissionSTEM is to engineers, and technologists, led off by the reach a broader swath of our grant recipient NASA Chief Technologist and the Associate institutions, we measure the success of our Administrator for Space Technology, that of- efforts in part through the number of visits fer insights into the real-world application to the site. On average, MissionSTEM has and societal impact of NASA science and had 12,000 hits per month, with an average engineering work. The Tech Series is spe- of 2,500 unique visitors viewing at least one cifically designed to appeal to a broadly di- page. verse audience of young people. By offering a first-hand look into the enormous contribu- NASA posted on MissionSTEM the D&I tions of NASA work, the Tech Series serves Leadership Series, a series of videos of to educate, engage, and inspire the Nation’s academic leaders from across the country youth. speaking on what they have done at their

Page 46 NASA FY 2013 Agency Financial Report Financial Performance

Financial Performance

CFO Letter

December 6, 2013

The National Aeronautics and Space Administration (NASA) is committed to the highest standards of financial accountability, transparency and reporting in support of the Nation’s aeronautics and space missions. I take great pride in reporting that for the third year in a row NASA received an unmodified “clean” opinion on our financial statements, with no material weaknesses or significant deficiencies.

This FY 2013 Agency Financial Report (AFR) discloses and reports on the Agency’s key performance and financial outcomes for the fiscal year. In his Message on page i, Administrator Bolden outlined the expansive breadth of the Agency’s challenging portfolio and the progress we have made in FY 2013. As the complexity and diversity the mission portfolio have grown, the Agency’s financial systems and processes have evolved to meet expanding information needs. Similar to the progress in our mission portfolios, NASA has made significant progress in our financial management. NASA has significantly improved our reporting of the annual costs to achieve each of the Agency’s strategic goals, enhanced our procedures for estimating environmental cleanup costs and mitigated impacts of budget uncertainty in our programmatic guidance.

This AFR provides detailed highlights of our FY 2013 performance and more information on the intersec- tion between NASA’s program and financial management. This year NASA resolved its only remaining significant deficiency in internal controls over NASA’s environmental liability estimation process. In addition, NASA was a recipient of the Association of Government Accountants’ Certificate of Excellence in Accountability Reporting (CEAR) for our FY 2012 AFR. I am proud to report that NASA is in substantial compliance with the Federal Financial Management Improvement Act for FY 2013.

We are pleased with our achievements, and remain committed to ensuring sound financial management. I appreciate the continued support of the entire Agency, with special thanks to the Office of Inspector General. More detailed performance reporting will be available in our Annual Performance Report, to be released with the President’s FY 2015 Budget.

Dr. Elizabeth Robinson Chief Financial Officer

NASA FY 2013 Agency Financial Report Page 47 Financial Performance

This page has been left blank intentionally.

Page 48 NASA FY 2013 Agency Financial Report Financial Performance

Financial Overview

NASA has made significant improvements is committed to effectively and efficiently to the integrity of its financial management managing funds appropriated by Congress systems, processes and reports. The Agen- to incur obligations for goods and services cy overcame significant financial report- necessary to execute NASA mission goals ing challenges to achieve unmodified audit within the apportionment limits from Office opinions in FY 2011 and FY 2012. In FY of Management and Budget (OMB) and in 2013, NASA focused on maintaining its un- compliance with federal financial accounting modified opinion while improving efficiencies standards. and reducing costs. For example, during FY 2013 NASA continues to achieve its admin- NASA’s financial values are a critical compo- istrative savings goals through spending re- nent of the Agency’s effective financial man- ductions in travel, printing, supplies, and ad- agement. The information provided in the visory services. These savings, which are next section reflects how NASA meets its associated with the Administration’s man- financial values of ensuring financial stew- agement agenda to promote efficient spend- ardship, and thereby promoting effective re- ing, enabled the Agency to increase funding source management, ensuring the integrity for research and development contracts, of financial data, enhancing capabilities and facilities enhancements and grants. NASA delivering a positive customer experience.

NASA Financial Goals and Accomplishments

NASA established a set of financial goals the financial management workforce; ensur- that build upon existing capabilities, pro- ing knowledge sharing and transfer; improv- cesses, products and tools to deliver timely, ing processes, procedures and policy; and, accurate and effective information to pro- aligning systems with mission and customer grammatic and institutional decision mak- needs. To accomplish this goal, NASA has: ers. The overarching theme for all of the goals is to build the capabilities needed to • Provided training and development op- deliver value-added products and services portunities that strengthen critical knowl- such as budgets, reports, analyses, policies edge, skills and abilities in accounting, and processes. The sections below explain auditing, budgeting and resources man- each of the goals and describe key actions agement. taken to accomplish each goal. • Enhanced analytical capabilities to en- Financial Goal 1: sure the availability of timely and accu- Enhance Capabilities rate flows of financial information used for operating and policy decision making.

The objectives of this goal include: strength- • Enhanced data analysis and reconcilia- ening the knowledge, skills and abilities of

NASA FY 2013 Agency Financial Report Page 49 Financial Performance

tion skills through recruitment and staff standards of integrity. To accomplish this training. goal, NASA has:

• Provided opportunities for participation • Enhanced the analysis and monitoring in external committees, such as those of financial performance and developed offered by the U.S. Department of the options for the most efficient use of finan- Treasury, OMB, and the Federal Ac- cial resources. counting Standards Advisory Board. • Improved analysis and deobligation of • Ensured financial system compliance unliquidated obligation balances to im- with federal financial management prove the quality and timeliness of deci- systems requirements, including new sions related to the use of those funds. requirements for financial reporting through the Government-wide Treasury • Increased the use of less resource-in- Account Symbol Adjusting Trial Balance tensive Cross-Agency meetings, such System (GTAS), which will be effective in as teleconferencing, electronic meeting FY 2014. tools, and video-conferencing.

• Implemented an electronic invoicing so- • Reduced print requirements and in- lution that will improve payment cycle creased on-line repositories such as time, reduce interest penalties, and re- OMB’s MAX website and other internal duce long-term operating cost. NASA on-line tools to share information and encourage transparency. • Expanded eBudget dataset to include periodic budgetary and key decision • Revised and updated internal control ac- points for projects’ cost and schedule in- tivities in the Agency’s Continuous Moni- formation. toring Program to strengthen data analysis and reporting. • Developed a summary level dashboard that provides comparative financial per- • Strengthened account balance fluc- formance reports aligned with the Agen- tuation analyses to explain inter-period cy’s strategic goals. changes.

• Strengthened internal controls to address OMB guidance on data quality for Financial Goal 2: USASpending.gov. Ensure Financial Stewardship • Performed a review of its programs for The objectives of this goal include: maintain- the past seven years to determine risk of ing a nimble and flexible posture; delivering significant improper payments and has analytics that add value; providing metrics determined in each year that none of its that measure and drive appropriate perfor- programs are susceptible to a high risk of mance; ensuring accuracy and accountabil- significant improper payments. ity through internal controls; and, ensuring operations are completed with the highest • Enhanced the integration of financial and

Page 50 NASA FY 2013 Agency Financial Report Financial Performance

performance management through the reporting of net cost and results of operations by strategic goal.

Financial Goal 3: Deliver a Positive Customer Experience

The objectives of this goal include: strengthening relationships with customers; demonstrating value added products, services and advice with an Agency perspective; and, delivering quality products, services and advice in a timely manner. To accomplish this goal, NASA has:

• Established Communities of Practice to promote information sharing and bench- marking opportunities across various internal stakeholder communities.

• Prepared financial statements and reports that meet the needs of internal and external customers for reliable and timely financial information.

• Enhanced capabilities for accurate cost- tracking and accounting for customer agreements with federal and non-federal entities and to respond timely and accu- rately to customer inquiries.

• Improved transparency of budget decisions with internal stakeholders.

• Built strong positive relationships with internal and external stakeholders to support the Agency’s budget formulation and execution process.

Image Caption: A supermoon rises behind the Washington Monument, Sunday, June 23, 2013, in Wash- ington. This year the Supermoon is up to 13.5% larger and 30% brighter than a typical Full Moon is. This is a result of the Moon reaching its perigee — the closest that it gets to the Earth during the course of its orbit. During perigee on 23 June the Moon was about 221,824 miles away, as compared to the 252,581 miles away that it is at its furthest distance from the Earth (apogee). (Credit: NASA/Bill Ingalls).

NASA FY 2013 Agency Financial Report Page 51 Financial Performance

This page has been left blank intentionally.

Page 52 NASA FY 2013 Agency Financial Report Financial Performance

Financial Highlights

This section provides highlights of NASA’s financial performance for FY 2013. The highlights explain the impacts of program and operational decisions on financial results. Key components of this section include: Results of Operations: An overview of how NASA used its financial resources to achieve its goals in FY 2013. Sources of Funding: An explanation of the type and amount of funds NASA received in FY 2013. Balance Sheet: A comparative report of assets, liabilities and net position for FY 2013 and FY 2012.

described in the Mission Performance sec- Results of Operations tion of this Agency Financial Report. The net cost of operations represents gross costs incurred less revenue earned for work The Statement of Net Cost, summarized performed for other government organiza- in the chart and table below, presents net tions and private entities. costs of operation by strategic goal and for NASA overall. NASA’s strategic goals are

Net Cost of Operation by Strategic Goal (In Millions of Dollars)

Strategic Goal 6: Education and Communication $135

Strategic Goal 4: Strategic Goal 5: Aeronautics Mission Support Strategic Goal 1: Research for $5,075 Human Nation Exploration $429 $7,388 Strategic Goal 2: Scientific Understanding of Universe Strategic Goal 3: $4,229 Space Technology Development $678

NASA FY 2013 Agency Financial Report Page 53 Financial Performance

The accompanying table provides comparative net cost for FY 2013 and FY 2012 by strategic goal.

Cost by Strategic Goal 2013 2012 Change % Change (In Millions of Dollars) Strategic Goal 1 – Human Exploration Gross Costs $ 7,662 $ 8,129 $ (467) -6% Less: Earned Revenue 274 331 (57) -17% Net Costs 7,388 7,798 (410) -5%

Strategic Goal 2 – Scientific Understanding of Universe Gross Costs $ 5,790 $ 5,543 $ 247 4% Less: Earned Revenue 1,561 1,349 212 16% Net Costs 4,229 4,194 35 1%

Strategic Goal 3 – Space Technology Development Gross Costs $ 678 $ 291 $ 387 133% Less: Earned Revenue — — — 0% Net Costs 678 291 387 133%

Strategic Goal 4 – Aeronautics Research for Nation Gross Costs $ 524 $ 550 $ (26) -5% Less: Earned Revenue 95 104 (9) -9% Net Costs 429 446 (17) -4%

Strategic Goal 5 – Mission Support Gross Costs $ 5,430 $ 5,356 $ 74 1% Less: Earned Revenue 355 290 65 22% Net Costs 5,075 5,066 9 0%

Strategic Goal 6 – Education and Communication Gross Costs $ 135 $ 160 $ (25) -16% Less: Earned Revenue — — — 0% Net Costs 135 160 (25) -16%

Net Cost of Operations Total Gross Costs $20,219 $20,029 $ 190 1% Less: Total Earned Revenue 2,285 2,074 211 10%

Net Costs $17,934 $17,955 $ (21) 0%

Page 54 NASA FY 2013 Agency Financial Report Financial Performance

Net cost of operations for FY 2013 was $17.9 lion, or 17%, primarily due to a reduction of billion, a decrease of $21 million, compared earned revenue relating to various Space to FY 2012. Gross costs at $20.2 billion, Operations projects with the Department of were higher by $190 million, or 1%, com- Defense. pared to FY 2012 at the entity level. Earned revenue for goods and services provided to Strategic Goal 2 – Scientific other federal agencies and the public was Understanding of Universe $2.3 billion, an increase of $211 million, or 10%, compared to FY 2012. The primary Gross Costs increased by $247 million, or drivers of year-to-year changes for NASA’s 4%, for this strategic goal. Cost changes six strategic goals are explained below: were primarily due to the following programs:

Strategic Goal 1 – Human Exploration The Joint Polar Satellite System (JPSS) program had higher costs due to the accelera- Gross Costs decreased by $467 million, or tion of hardware fabrication. In FY 2013, the 6%, for this strategic goal. Cost changes JPSS program reached key decision points were primarily due to the following programs: in the review of the overall soundness of the JPSS. The JPSS mission is targeting The Space Launch System (SLS) program the Critical Design Review in early 2014, had lower costs in FY 2013 for the Aerial with launch scheduled for late 2016. NASA Regional-scale Environmental Surveyor works on the JPSS mission in partnership (ARES-1) and Multi-Purpose Crew Vehicle with the National Oceanic and Atmospheric (MPCV) projects due to the program being Administration (NOAA). cancelled in FY 2011. This was offset by an increase in Space Launch System (SLS) James Webb Space Telescope (JWST) pro- program costs to ramp-up for the Launch gram costs were higher due to the accelera- Vehicles project to complete the full element tion of hardware fabrication to meet target implementation, which included the suc- milestones. NASA accomplished a FY 2013 cessful completion of the preliminary design program goal to begin assembly of the Op- review for the SLS heavy-lift rocket. This en- tical Telescope Element (OTE) backplane abled the project to focus on the next mile- support fixture. The addition of the back- stone in the continuing verification process, plane support frame was a major milestone in which NASA will move from formulation toward the completion of the assembly of to implementation. The first SLS mission the backbone of the JWST. The JWST mis- will launch an uncrewed Orion spacecraft, sion is targeting the Critical Design Review scheduled for 2017. The Commercial Crew in early 2014. The launch is scheduled in program had higher costs in FY 2013 due 2018. to numerous Commercial Crew Integrated Capability (CCiCap) awards to various aero- Costs were lower in FY 2013, as expect- space companies to provide services for ed, for the Mars Exploration Program as NASA’s Commercial Crew Program (CCP) hardware deliveries for the mission were to develop an integrated crew transportation completed. The mission achieved a ma- system. jor milestone in FY 2013 with the successful completion of its Critical Design Review. Earned revenue decreased by $57 mil- The Mars Atmospheric and Volatile Evolu-

NASA FY 2013 Agency Financial Report Page 55 Financial Performance tionN (MAVEN) spacecraft is scheduled for ness Technology Transfer (STTR) programs launch in late 2013. to encourage small business owners to provide technical innovations. In FY 2013, the Earned revenue increased by $212 million, SBIR program awarded several new Phase or 16%, primarily for the JPSS program. 2 contracts to small high-technology com- The increase in earned revenue was for panies to participate in government spon- NASA services provided in FY 2013 to sup- sored research and development efforts in port testing of the JPSS, which cleared its key technology areas. Phase 2 contracts final major design review. are intended to expand on the results of the Phase 1 activity, with the objective of infus- Strategic Goal 3 – Space Technology ing SBIR/STTR Program technologies into Development NASA programs and projects.

Gross Costs for this strategic goal increased The Exploration Technology Development by $387 million, or 133%, in FY 2013 com- program had higher costs in FY 2013 in sev- pared to FY 2012. NASA heightened its pur- eral projects: the Cryogenic Propellant Stor- suit of initiatives to build a strong, advanced age and Transfer project completed a major technology development foundation that will space technology development milestone enable technology readiness of new NASA by successfully testing a pressurized, large missions, and improve overall mission cost cryogenic propellant tank made of composite management. In this effort, NASA focused materials. The Human Exploration Telero- on identifying specific technologies based botics project tested the Surface Telerobot- on their criticality in extending human pres- ics exploration concept, in which an orbiting ence beyond low Earth orbit and their ability spacecraft remotely operates a robot on a to dramatically further scientific exploration planetary surface. In FY 2013, International of the solar system. The cost changes were Space Station (ISS) astronauts were able primarily due to the following programs: to remotely control the Planetary Rover at Ames Research Center from space. Crosscutting Space Tech Development program costs were higher in FY 2013 for the Advanced Exploration Systems (AES) pro- Low-Density Supersonic Decelerator project gram costs increased for various projects. (LDSD), which completed key milestones in The Morpheus/ALHAT (Autonomous Land- the development of new atmospheric decel- ing and Hazard Avoidance Technology) eration technologies to support future ex- project progressed toward a previously un- ploration missions to Mars and across the planned flight demonstration in FY 2013 and solar system. The LDSD completed three building new Morpheus vehicles. In another successful rocket sled tests of the “SIAD-R,” area, The Bigelow Expandable Activity Mod- a Supersonic Inflatable Aerodynamic Decel- ule (BEAM) was a new project in FY 2013, erator, the first of three innovative decelera- focused on the development of a new ad- tion systems now in development. dition to the International Space Station that will use the orbiting laboratory to test The NASA FY 2013 budget included an in- expandable space habitat technology, cur- crease in activity in the Small Business In- rently planned for 2015. novation Research (SBIR) and Small Busi-

Page 56 NASA FY 2013 Agency Financial Report Financial Performance

Strategic Goal 4 – Aeronautics Strategic Goal 6 – Education Research for Nation and Communication

Gross Costs decreased by $26 million, or Gross Costs decreased by $25 million, or 5%, primarily due to the reduction of costs 16%, primarily as a result of NASA’s efforts in the Fundamental Aeronautics programs to realign resources to improve the effective- resulting from combining hypersonic and ness of the Agency’s’ Science, Technology, supersonic research projects into a single Engineering and Mathematics (STEM) proj- project in order to focus on fundamental re- ects. In FY 2013, the STEM Education and search for high-speed flight. In FY 2013, Accountability program consolidated the the Subsonic-Fixed Wing, Subsonic-Rotary K-12 STEM Education, Informal STEM Edu- Wing and Supersonics projects ended, and cation, and Higher Education STEM Educa- the Fixed Wing and High Speed projects tion projects and activities. NASA aligned were started. In FY 2013, NASA, along the activities for each of the projects, which with other federal agencies and industry enabled the Agency to improve operational partners, collaborated on the design of an efficiency and costs to administer these proj- airplane wing that can provide high lift dur- ects. ing takeoff and landing, and also smooth cruising at the altitude level. Activity also included a series of flights using the Agency’s DC-8 flying laboratory to study the effects of alternate biofuel.

Earned Revenue decreased $9 million, or 9%, primarily related to less program activity, and related shared costs for various aeronautics projects with other federal agencies, including the Federal Aviation Administra- tion.

Strategic Goal 5 – Mission Support

Gross Costs increased by $74 million, or 1%, primarily for activity in the Exploration Ground Systems (EGS) program. The EGS program is modernizing and transforming the Florida launch infrastructure and range complex at Kennedy Space Center in sup- Image Caption: In this two-minute exposure, port of the Orion MPCV and SLS programs. the Soyuz TMA-11M rocket heads from Baikonur Cosmodrome in Kazakhstan towards orbit Thurs- day, Nov. 7, 2013 (Nov. 6 in the U.S.), bound for a Earned Revenue increased by $65 mil- docking at the International Space Station about lion, or 22%, this year primarily due to an six hours later. (Credit: NASA/Bill Ingalls) increase in institutional reimbursable activity with various Federal Agencies including the Department of Homeland Security.

NASA FY 2013 Agency Financial Report Page 57 Financial Performance

appropriations. NASA also receives budget Sources of Funding authority in the form of earned revenue to offset Agency costs incurred to fulfill reimbursable agreements for goods and services The Combined Statement of Budgetary Re- with Federal and non-Federal entities. The sources details resources available to NASA sources and uses of budgetary resources for the fiscal year and the status of those re- are summarized in the chart and table be- sources at year-end. The majority of NASA low. funds were provided through Congressional

Budgetary Resources (In Millions of Dollars)

Spending Authority Total Unobligated, from Offsetting $1,044 Collections, $2,617

Recoveries of Prior FY 2013 Budget Year Unpaid Authority, $16,880 Obligations, $351

Prior Year Unobligated Total Obligations Balance Brought Incurred , $19,711 Forward, $933

Other, ($26)

Line Item 2013 2012 Change % Change (In Millions of Dollars) FY 2013 Budget Authority $ 16,880 $ 17,771 $ (891) -5% Spending Authority from Offsetting Collections 2,617 2,842 (225) -8% Recoveries of Prior Year Unpaid Obligations 351 365 (14) -4% Prior Year Unobligated Balance Brought Forward 933 677 256 38% Less: Other 26 37 (11) -30%

Total Budgetary Resources $ 20,755 $ 21,618 $ (863) -4% Total Obligations Incurred 19,711 20,685 (974) -5%

Total Unobligated $ 1,044 $ 933 $ 111 12%

Page 58 NASA FY 2013 Agency Financial Report Financial Performance

New Budget Authority which accounted Prior Year Unobligated Balance Brought for 81% of total budgetary resources for FY Forward represents prior year funds that 2013, is provided by Congress primarily in were not obligated and remain available for two-year appropriations. New Budget Au- obligation in the current year. These funds thority decreased by $891 million, or 5%, increased by $256 million, or 38%, com- compared to FY 2012 primarily due to an pared to FY 2012, primarily due to balances increase in the rescission and sequester for outstanding reimbursable activity as of of appropriations, which was $968 million the end of FY 2012 that were brought for- higher compared to FY 2012. ward into FY 2013, compared to zero balances brought forward into FY 2012. Spending Authority from Offsetting Col- lections decreased by $225 million, or 8%, Obligations Incurred of $19.7 billion rep- in FY 2013 primarily due to a reduction in un- resents the amount of available budget- filled customer orders primarily for the Joint ary resources obligated to accomplish the Polar Satellite System Program on behalf of Agency’s goals. Obligations incurred de- the National Oceanic and Atmospheric Ad- creased by $974 million, or 5%, compared ministration (NOAA). to FY 2012. The decrease was due to lower Total Unobligated, $1,044 obligations to support the Space Shuttle, In- Recoveries of Prior Year Unpaid Obli- ternational Space Station, and Mars Explo- gations which represent funds that were ration programs. This was slightly offset by obligated in prior years that were subse- an increase in contract obligations to sup- quently deobligated, decreased $14 million, port the Earth Systematic Missions program or 4%, compared to FY 2012. The change for the Geostationary Operational Environ- is attributed to higher recoveries in FY 2012 mental Satellite-R Series. Total Obligations compared to FY 2013 primarily relating to Incurred , $19,711 contracts that supported the Space Shuttle Other of ($26) million represents the amount Transition and Retirement activities and the of expired obligated and unobligated appro- Earth System Science Pathfinder program priation balances that are canceled as of for the Orbiting Carbon Observatory -2 proj- September 30, 2013. There was no appre- ect. ciable change in the amount of Other from FY 2012 to FY 2013.

NASA FY 2013 Agency Financial Report Page 59 Financial Performance

Balance Sheet

Assets

Total assets for FY 2013 were $18.2 billion, a decrease of $828 million, or 4%, from FY 2012. The major categories of assets are summarized in the chart and table below.

NASA Assets (In Millions of Dollars)

Property, Plant & Equipment, $8,261

Other, $175

Fund Balance with Treasury, $9,771

Line Item 2013 2012 Change % Change (In Millions of Dollars) Fund Balance with Treasury $ 9,771 $ 9,901 $ (130) -1% Property, Plant & Equipment 8,261 8,906 (645) -7% Other 175 228 (53) -23%

Total Assets $ 18,207 $ 19,035 $ (828) -4%

The largest category of assets was Fund 2012 to FY 2013. The primary contributing Balance with Treasury (FBWT) and rep- factor in the decrease in PP&E was an in- resents NASA’s cash balance with the U.S. crease in accumulated depreciation associ- Department of the Treasury. There was no ated with the International Space Station. appreciable change in FBWT from FY 2012 to FY 2013. The Other category represents the amount of investments, accounts receivable, and Property, Plant and Equipment (PP&E), other assets as of September 30, 2013. the next largest category of assets, de- There was no appreciable change in the creased by $645 million, or 7%, from FY amount of Other from FY 2012 to FY 2013.

Page 60 NASA FY 2013 Agency Financial Report Financial Performance

Liabilities

Total liabilities for FY 2013 was $4.3 billion, a decrease of $10 million, from FY 2012. The major categories of liabilities are summarized in the chart and table below. NASA Liabilities (In Millions of Dollars)

Accounts Payable, $1,403 Environmental and Disposal Liabilities, Other Liabilities, $1,243 $1,578

Federal Employee and Veteran's Benefits, $51 Line Item 2013 2012 Change % Change (In Millions of Dollars) Other Liabilities $ 1,578 $ 1,607 $ (29) -2% Accounts Payable 1,403 1,459 (56) -4% Environmental and Disposal Liabilities 1,243 1,169 74 6% Federal Employee and Veteran's Benefits 51 50 1 2%

Total Liabilities $ 4,275 $ 4,285 $ (10) 0%

Other Liabilities primarily represents an project costs and asbestos clean-up costs, estimate of accrued contractor costs in- which is a new reporting requirement for FY curred but not yet paid, as well as accrued 2013. payroll and related costs. Other Liabilities decreased by $29 million, or 2%, from FY Federal Employee and Veteran Benefits 2012. are amounts that the Department of La- bor estimates on behalf of NASA for future Accounts Payable is the amount owed to worker’s compensation liabilities for current other entities for goods and services re- employees. The estimate for future work- ceived. Accounts Payable decreased by er’s compensation benefits includes the $56 million, or 4%, from FY 2012. expected liability for death, disability, medical and miscellaneous costs for approved Environmental and Disposal Liabilities compensation cases, plus a component of increased by $74 million, or 6%, from FY claims incurred but not reported. There was 2012 to FY 2013. The change was primarily no appreciable change in the amount from due to an increase in estimated restoration FY 2012 to FY 2013.

NASA FY 2013 Agency Financial Report Page 61 Financial Performance

Net Position

Net Position, comprised of unexpended appropriations and cumulative results of operations, decreased by $818 million, or 6%, from FY 2012. The major categories of net position are summarized in the chart and table below.

NASA Net Position (In Millions of Dollars)

Unexpended Appropriations, $7,113 Cumulative Results of Operations, $6,819

Line Item 2013 2012 Change % Change (In Millions of Dollars) Unexpended Appropriations $ 7,113 $ 7,234 $ (121) -2% Cumulative Results of Operations 6,819 7,516 (697) -9%

Total Net Position $ 13,932 $ 14,750 $ (818) -6%

Unexpended Appropriations were lower Cumulative Results of Operations were by $121 million, or 2%, for FY 2013 com- lower by $697 million, or 9%, for FY 2013 pared to FY 2012. The decrease is primarily compared to FY 2012. There was no appre- due to the FY 2013 rescission and seques- ciable change in Appropriations Received ter of appropriations. and Appropriations Used.

Page 62 NASA FY 2013 Agency Financial Report Financial Performance

Limitation of the Financial Statements

The principal statements have been pre- prescribed by the Office of Management and pared to report the financial position and re- Budget (OMB), the statements are in addi- sults of operations of NASA, pursuant to the tion to the financial reports used to monitor requirements of 31 U.S.C. 3515(b). While and control budgetary resources, which are the statements have been prepared from the prepared from the same books and records. books and records of NASA in accordance The statements should be read with the re- with generally accepted accounting prin- alization that they are for a component of the ciples for Federal entities and the formats U.S. Government, a sovereign entity.

Image Caption: This is a photo of the complete Interface Region Imaging Spectrograph (IRIS) observatory with the solar arrays deployed. This is taken in a large clean tent at Lockheed Martin prior to vibration testing and prior to installation of the flight multi-layer insulation blankets. The solar arrays have just been deployed using flight commands. (Credit: Lockheed Martin)

NASA FY 2013 Agency Financial Report Page 63 Financial Performance

This page has been left blank intentionally.

Page 64 NASA FY 2013 Agency Financial Report Systems, Controls, and Legal Compliance

Management Assurances...... 67 Financial Systems Strategies...... 69

Image Caption: The base of the Soyuz solid rocket boosters are seen at Building 112 on the Baikonur Cosmodrome, in Baikonur, Kazakhstan. The Soyuz rocket carried Expedition 37 Soyuz Commander Oleg Kotov, NASA Flight Engineer Michael Hopkins, and Russian Flight Engineer Sergei Ryazansky to the In- ternational Space Station on September 25, 2013 for a five and a half-month mission aboard ISS. (Credit: NASA/Victor Zelentsov)

NASA FY 2013 Agency Financial Report Page 65 This page has been left blank intentionally.

Page 66 NASA FY 2013 Agency Financial Report Systems, Controls and Legal Compliance

Systems, Controls and Legal Compliance

Management Assurances

Administrator’s Statement of Assurance

December 6, 2013

The National Aeronautics and Space Administration (NASA) management is responsible for establishing and maintaining effective internal control and financial management systems that meet the objectives of the Federal Managers’ Financial Integrity Act (FMFIA), the Fed- eral Financial Management Improvement Act (FFMIA), as well as all other related laws and guidance. NASA is committed to a robust and comprehensive internal control program. We recognize that ensuring the effective, efficient, economical, and responsible use of the resources that have been provided to the Agency is not only good stewardship, but also the right approach to maximize our progress toward the realization of our mission goals. Integrity and ethical values are emphasized throughout the Agency and communicated both formally and informally through training, codification in policy, and through organizational norms and culture. As a result, managers and employees throughout the Agency are active on a daily basis in identifying or updating key control objectives, assessing risks, implementing controls or other mitigating strategies, conducting reviews, and taking corrective actions, as necessary.

NASA conducted its Fiscal Year 2013 annual assessment of the effectiveness of internal controls over operations and compliance with applicable laws and regulations in accordance with FMFIA and the Office of Management and Budget (OMB) Circular A-123,Management’s Responsibility for Internal Control. In addition, in support of Public Law (P.L.) 113-2, the Di- saster Relief Appropriations Act, 2013 which provided funds to the Agency for construction and environmental compliance and restoration, our assessment included a review of applicable policies and key controls designed to mitigate Disaster Relief Act funding risks. Further, to ensure compliance with the Government Charge Card Abuse Prevention Act of 2012 and OMB Memorandum 13-21, Implementation of the Government Charge Card Abuse Preven- tion Act of 2012, our assessment included a review of applicable policies and key controls designed to ensure such compliance. Based on the results of this evaluation, NASA can provide reasonable assurance that its internal controls over the effectiveness and efficiency of operations and compliance with applicable laws and regulations as of September 30, 2013, were operating effectively and no material weaknesses were found in the design or operation of the internal controls.

NASA FY 2013 Agency Financial Report Page 67 Systems, Controls and Legal Compliance

In addition, NASA’s Office of the Chief Financial Officer performed an assessment ofthe effectiveness of internal controls over financial reporting in compliance with OMB Circular A-123, Appendix A-Internal Control over Financial Reporting. Based on the results of the evaluation, there were no material weaknesses identified in the design or operation of these controls. NASA provides reasonable assurance that internal controls over financial reporting are operating effectively as of June 30, 2013. Finally, in accordance with the requirements of the FFMIA, we assessed the implementation and maintenance of NASA financial management systems. We found that these substantially comply with Federal financial management systems requirements, applicable Federal accounting standards, and the U.S. Government Standard General Ledger at the transaction level.

In conclusion, NASA makes an “unqualified statement of assurance” that its internal controls for FY 2013 were operating effectively.

NASA will continue its commitment to ensuring a sound system of internal control exists over operations, financial reporting and financial systems and will continue to monitor and enhance its quality assurance activities.

Page 68 NASA FY 2013 Agency Financial Report Systems, Controls and Legal Compliance

Financial Systems Strategies

NASA’s Core Financial (CF) management for the e-Gov Travel System 2 with Concur system is the Systems Applications & Prod- Government Edition (CGE) which is slated to ucts (SAP) Enterprise Resources Planning replace the FedTraveler system in FY 2014. (ERP) Suite. The CF system is an Agen- cy-wide solution for all Centers and instal- The Performance Measures Module (PMM) lations and has served as NASA’s financial is a part of the Budget Formulation and Ex- accounting system of record since 2003. It ecution (BFEM) system and it is targeted to is the foundation of NASA’s ability to achieve replace the manual performance measures its financial management objectives and process that represents how the Agency col- management of the budget. Since its ini- lects and reports quarterly and annual per- tial implementation, CF has been enhanced formance measures. In 2011, NASA entered and expanded to demonstrate measurable into an agreement with the U.S. Department progress toward achieving compliance with of the Treasury to implement PMM to facili- Federal Managers’ Financial Integrity Act tate the input of the Agency’s performance (FMFIA) and Federal Financial Manage- data, and provide consolidated, archiving ment Improvement Act (FFMIA), and an un- capability while creating new efficiencies modified financial audit opinion. in workload and outputs to all stakeholders. Current and future PMM and extension To date, NASA has implemented the follow- capabilities are part of NASA’s strategy to ing modules: funds management, financial meet current GPRA Modernization Act 2010 accounting, sales and distribution, invest- (GPRAMA) mandates and OMB requirement management, materials management, ments for federal strategic planning, perfor- controlling (cost), project systems, and real mance management and reporting. estate, as well as a Contractor Cost Report- ing (CCR) extension. Collectively, these NASA’s Contract Management Module integrated components make up NASA’s fi- (CMM) / PRISM is used as a hub to mod- nancial system of record for financial state- ernize/standardize NASA’s contract writing. ments, external reports, project analysis, It provides an integrated Agency-wide pro- and management control. Transactions curement solution that interfaces real time within the integrated modules and interfac- with CF and promotes NASA’s internal initia- es are recorded on a real time basis. The tives to optimize business operations. SAP ERP is supported by other commercial off-the-shelf (COTS) software, NASA devel- NASA is in the process of implementing oped applications, and interfaces with sys- Wide Area Workflow, the Department of De- tems managed by other federal agencies. fense e-invoicing solution, that will improve payment cycle time, reduce interest penal- NASA’s CF integrates with the Agency’s ties, and reduce long-term operating cost. FedTraveler system, an eGov initiative providing Agency-wide travel processing. The These systems, along with others, such as only major Development/ Maintenance/ En- Business Warehouse/Cognos, eBudget, hancement (DME) investment this year was Metadata Manager and Bankcard are all

NASA FY 2013 Agency Financial Report Page 69 Systems, Controls and Legal Compliance integrated within the NASA Financial Man- In sum, NASA CF, its interfacing systems agement System environment. The NASA and Agency and Center personnel support Enterprise Applications Competency Center the execution of NASA’s Strategic and Proj- (NEACC) operates and maintains the broad ect Performance Goals, and allow NASA to spectrum of NASA’s Enterprise Applications effectively manage enterprise data and infor nine lines of business (for example: Fi- formation per the Agency’s vision for Enter- nancial Management, Procurement, and prise Architecture. The integrated nature of Human Capital), with an emphasis on fully the business systems and processes have integrating business process expertise with strengthened NASA’s internal controls and application and technical know-how. Admin- transparency. The CF System enables istrative and transactional business activities NASA in achieving its Enterprise Architec- are supported by the NASA Shared Servic- ture target state goal of systems rationaliza- es Center (NSSC) and support the follow- tion and providing cost-effective and reliable ing functional areas: financial management, applications to support NASA’s mission. human resources, procurement, information technology and Agency business support.

Page 70 NASA FY 2013 Agency Financial Report Looking Forward

Image Caption: This picture of the asteroid Vesta is made from images taken with Dawn’s framing camera. Many of the images were taken at different viewing angles to provide stereo for use in determining the topography. Other images were taken through special infrared and visible light filters in the camera. These infrared and visible light images have been combined and represented in colors that highlight the nature of the minerals on Vesta’s surface. The distance to the surface of Vesta is around 420 miles (680 kilometers) on average and the images have an average resolution of about 210 feet (65 meters) per pixel. (Credit: the German Aerospace Center and the Planetary Science Institute, Tucson, Ariz.)

NASA FY 2013 Agency Financial Report Page 71 This page has been left blank intentionally.

Page 72 NASA FY 2013 Agency Financial Report Looking Forward

Looking Forward

In fiscal year (FY) 2014, NASA will build on Telescope remains steadily on its develop- the successes achieved across FY 2013, as ment path, and is rapidly moving toward its we continue evolving the U.S. space pro- completion and launch, planned in 2018. gram. NASA and the Nation are embarking The Solar Dynamics Observatory, which upon an ambitious exploration program that launched on February 11, 2010, is expected will incorporate new technologies and lever- to complete collection of its prime science age proven capabilities, as we expand our measurements, and bring back key findings reach out into the solar system. The mul- about the Sun’s dynamic processes. In As- tiple successes achieved by our commercial trophysics, the Fermi Gamma-ray Space providers in FY 2013 are an example of the Telescope, launched in 2008, will also fin- strong foundation being developed toward ish its primary mission objectives; since the future endeavors. As the coming year un- telescope’s inception it has monitored more folds, NASA will forge ahead with the im- than a thousand galaxies. portant research being conducted every day aboard the International Space Station, NASA expects its innovative technology which continues to yield scientific benefits development to serve the Nation by under- and to provide key information about how pinning future spacecraft advancements, humans may live and thrive in the harsh en- supporting life in space, and enabling the vironment of space. Foundational to this re- next generation air transportation system. search is the capability to bring supplies and In FY 2014, NASA will make progress on crew to orbit, which we will enhance in FY concept developments, small satellite mis- 2014 through additional flights that deliver sions, and technology demonstrators. As cargo from our growing list of capable com- current and future work results in new ca- mercial providers. pabilities, knowledge, and technologies, it is a core part of NASA’s Mission to share NASA will emphasize the work and contribu- these advances with the Nation. Through tions to the Nation that are realized from its this access, entrepreneurs, industry, aca- scientific endeavors. After several years of demia, and other government agencies are preparation, the Magnetospheric MultiScale encouraged to innovate in ways that can Mission (MMS) is expected to launch in FY help address national and global needs and 2014. This unmanned mission will utilize challenges. NASA will remain committed to four spacecraft flying in a tetrahedral forma- increasing interest in science, technology, tion to conduct research on the Earth’s mag- engineering, and mathematics (STEM) ed- netosphere. NASA will continue to make ucation, the Nation’s economic vitality, and strides in the development of other key sci- stewardship of Earth. ence missions. The Mars Atmosphere and Volatile EvolutioN Mission (MAVEN), which This is an exciting time for NASA, a time of will launch in November 2013, will reach the opportunities to shape a promising future for orbit of our closest neighbor in October 2014. the Nation’s space program. As a founda- Development of the James Webb Space tional component of this journey, NASA will

NASA FY 2013 Agency Financial Report Page 73 Looking Forward continue to focus on fiscal responsibility, that lie ahead given the economic and fis- performance management, and long term cal environment in the United States. NASA affordability, all the while addressing any will do its part to step up to these challenges management challenges or risk that may through the effective, efficient, and transpar- pose a roadblock to future success. NASA ent use of the resources entrusted to the remains aware of the incredible challenges Agency.

Page 74 NASA FY 2013 Agency Financial Report Financials

Introduction to the Principal Financial Statements...... 77 Financial Statements, Notes, and Supplemental Information...... 78 Letter from the Inspector General on the Audit...... 109 Report of the Independent Auditors...... 111 Report of the Independent Auditors on Internal Control...... 114 Report of the Independent Auditors on Compliance and Other Matters...... 116

Image Caption: NASA’s Lunar Atmosphere and Dust Environment Explorer (LADEE, pronounced like “lad- die”) is a robotic mission that is orbiting the moon to gather detailed information about the lunar atmosphere, conditions near the surface and environmental influences on lunar dust. A thorough understanding of these characteristics will address long-standing unknowns, and help scientists understand other planetary bodies as well. (Credit: NASA)

NASA FY 2013 Agency Financial Report Page 75 This page has been left blank intentionally.

Page 76 NASA FY 2013 Agency Financial Report Financials

Introduction to the Principal Financial Statements

The principal financial statements are - pre • Consolidated Statement of Net Cost pared to report the financial position and reports net cost of operation during the results of operations of the National Aero- reporting periods by strategic goal and at nautics and Space Administration (NASA), the entity level. It is a measure of gross pursuant to the requirements of 31 U.S.C. cost of operations less earned revenue, 3515 (b). The statements are prepared from and represents cost to taxpayers for the records of NASA in accordance with achieving each strategic goal and Agen- generally accepted accounting principles cy mission at the entity level. (GAAP) and the formats prescribed by the Office of Management and Budget (OMB) in • Consolidated Statement of Changes Circular No. A-136, Financial Reporting Re- in Net Position reports the beginning quirements. The statements are in addition balance of net position, current financ- to financial reports prepared by NASA in ac- ing sources and use of resources, unex- cordance with OMB and U.S. Department of pended resources (transactions that af- the Treasury (Treasury) directives to moni- fect net position) for the reporting period, tor and control the status and use of bud- and ending net position for the current getary resources, which are prepared from period. the same records. The statements should be read with the understanding that they are • Combined Statement of Budgetary for a component of the U.S. Government, a Resources reports information on sourc- sovereign entity. One important implication es and status of budgetary resources for of this is that NASA has no authority to pay the reporting period. Information in this liabilities not covered by budgetary resourc- statement is reported on the budgetary es. Liquidation of such liabilities requires basis of accounting which supports com- enactment of an appropriation. Compara- pliance with budgetary controls and con- tive data for FY 2012 is included where ap- trolling legislation. plicable. The principal financial statements, which include the following, are the respon- • Required Supplementary Steward- sibility of management: ship Information provides information on NASA’s Research and Development • Consolidated Balance Sheet provides costs by strategic goal. information on assets, liabilities, and net position as of the end of the reporting • Required Supplementary Information period. Net position is the difference be- contains a Combining Statement of Bud- tween assets and liabilities. It is a sum- getary Resources and information on mary measure of the Agency’s financial Deferred Maintenance. condition at the end of the reporting period.

NASA FY 2013 Agency Financial Report Page 77 Financials

Financial Statements, Notes, and Supplemental Information

National Aeronautics and Space Administration Consolidated Balance Sheet As of September 30, 2013 and 2012 (In Millions of Dollars)

Audited Audited 2013 2012 Assets (Note 2): Intragovernmental: Fund Balance with Treasury (Note 3) $ 9,771 $ 9,901 Investments (Note 4) 17 17 Accounts Receivable (Note 5) 156 208 Total Intragovernmental 9,944 10,126

Accounts Receivable, Net (Note 5) 2 1 Property, Plant and Equipment, Net (Note 6) 8,261 8,906 Other Assets (Note 8) — 2

Total Assets $ 18,207 $ 19,035

Stewardship PP&E (Note 7)

Liabilities (Note 9): Intragovernmental: Accounts Payable $ 89 $ 75 Other Liabilities (Note 11) 92 85 Total Intragovernmental 181 160

Accounts Payable 1,314 1,384 Federal Employee and Veteran Benefits 51 50 Environmental and Disposal Liabilities (Note 10) 1,243 1,169 Other Liabilities (Note 11) 1,486 1,522 Total Liabilities 4,275 4,285

Commitments and Contingencies (Note 12)

Net Position: Unexpended Appropriations 7,113 7,234 Cumulative Results of Operations 6,819 7,516 Total Net Position 13,932 14,750

Total Liabilities and Net Position $ 18,207 $ 19,035

The accompanying notes are an integral part of this statement.

Page 78 NASA FY 2013 Agency Financial Report Financials

National Aeronautics and Space Administration Consolidated Statement of Net Cost For the Fiscal Years Ended September 30, 2013 and 2012 (In Millions of Dollars)

Audited Audited 2013 2012

Cost by Strategic Goal (Note 13) Strategic Goal 1 – Human Exploration Gross Costs $ 7,662 $ 8,129 Less: Earned Revenue 274 331 Net Costs 7,388 7,798

Strategic Goal 2 – Scientific Understanding of Universe Gross Costs $ 5,790 $ 5,543 Less: Earned Revenue 1,561 1,349 Net Costs 4,229 4,194

Strategic Goal 3 – Space Technology Development Gross Costs $ 678 $ 291 Less: Earned Revenue — — Net Costs 678 291

Strategic Goal 4 – Aeronautics Research for Nation Gross Costs $ 524 $ 550 Less: Earned Revenue 95 104 Net Costs 429 446

Strategic Goal 5 – Mission Support Gross Costs $ 5,430 $ 5,356 Less: Earned Revenue 355 290 Net Costs 5,075 5,066

Strategic Goal 6 – Education and Communication Gross Costs $ 135 $ 160 Less: Earned Revenue — — Net Costs 135 160

Net Cost of Operations Total Gross Costs $ 20,219 $ 20,029 Less: Total Earned Revenue 2,285 2,074

Net Cost $ 17,934 $ 17,955

The accompanying notes are an integral part of this statement.

NASA FY 2013 Agency Financial Report Page 79 Financials

National Aeronautics and Space Administration Consolidated Statement of Changes in Net Position For the Fiscal Years Ended September 30, 2013 and 2012 (In Millions of Dollars)

Audited Audited 2013 2012 Cumulative Results Of Operations: Beginning Balances $ 7,516 $ 8,165

Budgetary Financing Sources: Appropriations Used 16,974 17,027 Nonexchange Revenue 14 2

Other Financing Sources: Donations and Forfeitures of Property 3 4 Transfers In/Out Without Reimbursement 109 100 Imputed Financing 150 176 Other (13) (3) Total Financing Sources 17,237 17,306 Net Cost of Operations (17,934) (17,955) Net Change (697) (649)

Cumulative Results of Operations 6,819 7,516

Unexpended Appropriations: Beginning Balance 7,234 6,528

Budgetary Financing Sources: Appropriations Received 17,877 17,800 Other Adjustments (1,024) (67) Appropriations Used (16,974) (17,027) Total Budgetary Financing Sources (121) 706

Unexpended Appropriations 7,113 7,234

Net Position $ 13,932 $ 14,750

The accompanying notes are an integral part of this statement.

Page 80 NASA FY 2013 Agency Financial Report Financials

National Aeronautics and Space Administration Combined Statement of Budgetary Resources For the Fiscal Years Ended September 30, 2013 and 2012 (In Millions of Dollars)

Audited Audited 2013 2012 Budgetary Resources: Unobligated Balance, Brought Forward, October 1 $ 933 $ 677 Recoveries of Prior Year Unpaid Obligations 351 365 Other Changes in Unobligated Balance (26) (37) Unobligated Balance from Prior Year Budget Authority, Net 1,258 1,005 Appropriations 16,880 17,771 Spending Authority from Offsetting Collections 2,617 2,842

Total Budgetary Resources $20,755 $21,618

Status of Budgetary Resources: Obligations Incurred (Note 14) $ 19,711 $ 20,685 Unobligated Balance, End of Year: Apportioned 903 821 Unapportioned 141 112 Total Unobligated Balance, End of Year 1,044 933

Total Status of Budgetary Resources $ 20,755 $ 21,618

Change in Obligated Balance: Unpaid Obligations: Unpaid Obligations Brought Forward, October 1 $ 10,284 $ 9,526 Obligations Incurred (Note 14) 19,711 20,685 Outlays (Gross) (-) (19,873) (19,562) Recoveries of Prior Year Unpaid Obligations (-) (351) (365) Unpaid Obligations, End of Year 9,771 10,284 Uncollected Payments: Uncollected Payments, Federal Sources, Brought Forward, October 1 (-) (1,318) (851) Change in Uncollected Payments, Federal Sources 267 (467) Uncollected Customer Payments from Federal Sources, End of Year (-) (1,051) (1,318) Memorandum (Non-Add) Entries Obligated Balance, Start of Year 8,966 8,675

Obligated Balance, End of Year $ 8,720 $ 8,966

Budget Authority and Outlays, Net: Budget Authority, Gross $19,497 $20,613 Actual Offsetting Collections (-) (2,884) (2,375) Change in Uncollected Customer Payments from Federal Sources 267 (467)

Budget Authority, Net $ 16,880 $ 17,771

Outlays, Gross $19,873 $19,562 Actual Offsetting Collections (-) (2,884) (2,375) Outlays, Net 16,989 17,187 Distributed Offsetting Receipts (-) (13) 3

Agency Outlays, Net $ 16,976 $ 17,190

The accompanying notes are an integral part of this statement.

NASA FY 2013 Agency Financial Report Page 81 Financials

and the aerospace industry. Note 1: Summary of Significant Accounting Policies The Agency’s administrative structure includes the Strategic Management Council, Mission Support Council, Program Manage- Reporting Entity ment Council, and other Committees to in- tegrate strategic, tactical, and operational The National Aeronautics and Space Admin- decisions in support of strategic focus and istration (NASA) is an independent agency direction. established by Congress on October 1, 1958 by the National Aeronautics and Space Act Operationally, NASA is organized into nine of 1958. NASA was incorporated from its Centers across the country, a Headquarters predecessor agency, the National Advisory Office, a NASA Shared Services Center, and Committee for Aeronautics, which provided the Jet Propulsion Laboratory (JPL). JPL is technical advice to the United States (U.S.) a federally funded research and develop- aviation industry and performed aeronautics ment center (FFRDC), operated for NASA research. Today, NASA serves as the princi- by a contractor, Caltech, staffed by Caltech pal Agency of the United States government employees in NASA-owned facilities, similar for initiatives in civil space and aviation. to other contractors that use NASA-owned contractor-held assets. NASA is organized into four Mission Direc- torates supported by one Missions Support The accompanying financial statements in- Directorate (see Organization at page 7): clude the accounts of all funds which have been established and maintained to account • Aeronautics Research: conducts re- for the resources under the control of NASA search which enhances aircraft perfor- management. mance, environmental compatibility, capacity, flexibility, and safety of the future Basis of Accounting and Presentation air transportation system; These consolidated financial statements are • Human Exploration and Operations: de- prepared in accordance with the U.S. gener- velops new capabilities, supporting tech- ally accepted accounting principles (GAAP) nologies and foundational research for and Federal Accounting Standards Adviso- affordable, sustainable human and ro- ry Board (FASAB) standards in the format botic exploration; prescribed by the Office of Management and Budget (OMB) Circular No. A-136, Financial • Science: explores the Earth, Moon, Reporting Requirements, Revised (October Mars, and beyond; charts the best route 2013). FASAB authority to set Federal gov- of discovery, and obtains the benefits of ernment accounting standards is recognized Earth and space exploration for society; by the American Institute of Certified Public and Accountants (AICPA). The financial statements present the financial position, net cost • Space Technology: develops new tech- of operations, changes in net position, and nologies needed to support current and budgetary resources of NASA, as required future NASA missions, other agencies by the Chief Financial Officers Act of 1990,

Page 82 NASA FY 2013 Agency Financial Report Financials

Public Law (P.L.) 101-576, and the Govern- tions on the Combined Statement of Bud- ment Management Reform Act (P.L. 101- getary Resources. 356). Research and Development (R&D), The financial statements should be read Other Initiatives and Similar Costs with the realization that they are for a component of the U.S. government, a sovereign NASA makes substantial R&D investments entity. One important implication of this is for the benefit of the United States. The that liabilities cannot be liquidated without R&D programs include activities to extend legislation providing resources and legal au- our knowledge of Earth, its space environ- thority to do so. The accounting structure ment, and the universe; and to invest in new of federal agencies is designed to reflect aeronautics and advanced space transpor- proprietary and budgetary accounting. Pro- tation technologies supporting the devel- prietary accounting uses the accrual method opment and application of technologies. of accounting. Under the accrual method of Following guidance outlined in the FASAB accounting, revenues are recognized when Technical Release No. 7, Clarification of earned and expenses are recognized when Standards Relating to the National Aero- incurred, without regard to the timing of re- nautics and Space Administration’s Space ceipt or payment of cash. Budgetary ac- Exploration Equipment, NASA applies the counting does not use the accrual method of Financial Accounting Standards Board’s accounting; it accounts for the sources and (FASB) Accounting Standards Codification status of funds to facilitate compliance with (ASC) 730-10-25, Research and Develop- legal controls over the use of federal funds. ment - Recognition, and FASB ASC 730-10- Beginning in FY 2013, the Statement of Net 50 Research and Development - Disclosure, Cost is presented by strategic goal, which is to its R&D projects. a change from past practice of presentation by Research and Development initiatives. Use of Estimates

Budgets and Budgetary Accounting The preparation of financial statements requires management to make assumptions NASA complies with federal budgetary ac- and reasonable estimates affecting the re- counting guidelines of OMB Circular No. ported amounts of assets and liabilities and A-11, Preparation, Submission and Execu- disclosures of contingent liabilities as of the tion of the Budget. Congress funds NASA’s date of the financial statements and the re- operations through nine main appropriations: ported amounts of revenues and expenses Science, Aeronautics, Exploration, Space for the reporting period. Accordingly, actual Operations, Education, Cross-Agency Sup- results may differ from those estimates. port, Space Technology, Inspector General, and Construction and Environmental Com- Fund Balance with Treasury pliance and Restoration. Reimbursements received under reimbursable service agree- The U.S. Department of the Treasury (Trea- ments cover the cost of goods and servic- sury) collects and disburses cash on behalf es NASA provides to other federal entities of federal agencies during the fiscal year. or non-federal entities and are recorded as The collections include funds appropriated Spending Authority from Offsetting Collec- by Congress to fund the Agency’s operations

NASA FY 2013 Agency Financial Report Page 83 Financials and revenues earned for services provided Accounts Receivable to other federal agencies or the public. The disbursements are for goods and services Most of NASA’s accounts receivable is for received in support of its operations and intragovernmental reimbursements for cost other liabilities. Fund Balance with Treasury of goods and services provided to other fed- (FBWT) is the balance of cash NASA has in eral agencies; the rest is for debts to NASA its cash account with the Treasury. NASA’s by non-federal government entities. Allow- FBWT is comprised of balances in general ances for doubtful non-federal accounts re- funds, trust funds, working capital funds, ceivable are based on factors such as: ag- and other types of funds. ing of accounts receivable, debtors’ ability to pay, payment history, and other relevant fac- Investments in U.S. Government tors. Doubtful non-federal accounts receiv- Securities able over 180 days are referred to Treasury for collection, wage garnishment or cross- NASA investments include the following In- servicing in accordance with the federal tragovernmental non-marketable securities: Debt Collection Improvement Act.

(1) The Endeavor Teacher Fellowship Trust Operating Materials and Supplies Fund (Endeavor Trust Fund) was established from public donations in tribute to NASA does not maintain inventory stock for the crew of the Space Shuttle Challenger. resale. It follows the Purchases method of The Endeavor Trust Fund bi-annual interest accounting for operating materials and sup- earned is re-invested in short-term bills. P.L. plies under which it expenses operating ma- 102-195 requires the interest earned from terials and supplies when purchased, not the Endeavor Trust Fund investments be when used. used to create the Endeavor Teacher Fel- lowship Program. Property, Plant and Equipment

(2) The Science, Space and Technology NASA reports depreciation expense using Education Trust Fund (Challenger Trust the straight-line method over an asset’s es- Fund) was established to advance science timated useful life, beginning with the month and technology education. The Challenger the asset is placed in service. Property, Trust Fund balance is invested in short-term plant and equipment (PP&E) with acquisi- bills and long-term bonds. P.L. 100-404 re- tion costs of $100,000 or more, a useful life quires that a quarterly payment of $250,000 of 2 years or more, and R&D assets that are be sent to the Challenger Center from inter- determined at the time of acquisition to have est earned on the Challenger Trust Fund in- alternative future use, are capitalized. PP&E vestments. In order to meet the requirement and R&D assets that do not meet these cap- of providing funds to the Challenger Center, italization criteria are expensed. Capital- NASA invests the bi-annual interest earned ized costs include costs incurred by NASA in short-term bills with maturity that coin- to bring the property to a form and location cides with quarterly payments of $250,000 suitable for its intended use. Certain NASA to beneficiaries. Interest received in excess assets are held by government contractors. of amount needed for quarterly payment to Under provisions of the Federal Acquisition beneficiaries is invested in long-term bonds. Regulation (FAR), the contractors are re-

Page 84 NASA FY 2013 Agency Financial Report Financials sponsible for the control and accountability ing, maintenance, data conversion, reengi- of the assets in their possession. These neering, site licenses, and rights to future government-owned, contractor-held assets upgrades and enhancements), capitalized are included within the balances reported in and non-capitalized costs of the package NASA’s financial statements. are allocated among individual elements on the basis of a reasonable estimate of their NASA has barter agreements with interna- relative fair market values. Costs not sus- tional entities; the assets and services re- ceptible to allocation between maintenance ceived under these barter agreements are and relatively minor enhancements are ex- unique, with limited easement to only a pensed. Software in progress of being de- few countries, as these assets are on the veloped is not amortized until placed in ser- International Space Station (ISS). The in- vice. NASA capitalizes costs for internal use tergovernmental agreements state that the software when the total projected cost is $1 parties will seek to minimize the exchange million or more and the expected useful life of funds in the cooperative program, includ- of the software is 5 years or more. ing the use of barters to provide goods and services. As of September 30, 2013, NASA Liabilities Covered by Budgetary has received some assets from these par- Resources ties in exchange for future services. The fair value is indeterminable; therefore, no As a component of a sovereign entity, NASA value was ascribed to these transactions cannot pay for liabilities unless authorized in accordance with FASB ASC 845-10-25 by law and covered by budgetary resources. Non-Monetary Transactions – Recognition Liabilities covered by budgetary resources and ASC 845-10-50 Non-Monetary Transac- are those for which appropriated funds are tions – Disclosure. The amounts reflected in available as of the balance sheet date. Ex- NASA’s financial reports for the ISS exclude amples of covered liabilities include accounts components of the ISS owned or provided payable and employees’ salaries. Budget- by other participants in the ISS. ary resources include unobligated balances of budgetary resources at the beginning of Statement of Federal Financial Accounting the year, new budget authority, and spend- Standards (SFFAS) No. 10, Accounting for ing authority from offsetting collections. Internal Use Software requires the capitalization of internally developed, contractor Liabilities and Contingencies Not developed, and commercial off-the-shelf- Covered by Budgetary Resources software. Capitalized costs for internally developed software include the full costs (direct Liabilities not covered by budgetary resourc- and indirect) incurred during the software es are those for which congressional appro- development stage only. For purchased priation is required. Liabilities not covered software, capitalized costs include amounts by budgetary resources include future envi- paid to vendors for the software and other ronmental cleanup liability, legal claims, pen- material costs, incurred by NASA to imple- sions and other retirement benefits, workers’ ment and make the software ready for use compensation, annual leave, and cancelled through acceptance testing. When NASA appropriations. purchases software as part of a package of products and services (for example: train-

NASA FY 2013 Agency Financial Report Page 85 Financials

Federal Employee and Veterans’ cent of gross pay. For FERS employees, Benefits NASA makes contributions of gross pay of 11.9 percent to the defined benefit plan, 1.0 A liability is recorded for workers’ compensa- percent to a retirement savings plan (con- tion claims related to the Federal Employees’ tribution plan), and matches employee con- Compensation Act (FECA), administered by tributions up to an additional 4.0 percent of the U.S. Department of Labor. The FECA gross pay. For those employees participat- provides income and medical cost protection ing in FERS, a thrift savings plan is auto- to covered federal civilian employees injured matically established and NASA makes a on the job, employees who have incurred mandatory contribution of 1.0 percent to this a work-related occupational disease, and plan. beneficiaries of employees whose death is attributable to a job-related injury or occupa- Insurance Benefits tional disease. The FECA program initially pays valid claims and subsequently seeks SFFAS No. 5, Accounting for Liabilities of reimbursement from the federal agencies the Federal Government requires Govern- employing the claimants. The FECA liability ment agencies to report the full cost of Fed- includes the actuarial liability for estimated eral Employee Health Benefits (FEHB), and future costs of death benefits, workers’ com- the Federal Employees Group Life Insur- pensation, and medical and miscellaneous ance (FEGLI) Programs. NASA uses the costs for approved compensation cases. applicable cost factors and data provided by the Office of Personnel and Management to Personnel Compensation and Benefits value these liabilities.

Annual, Sick and Other Leave Reclassifications of 2012 Information

Annual leave is accrued as it is earned; the Certain reclassifications have been made accrual is reduced as leave is taken. Each to FY 2012 financial statements, footnotes year, the balance in the accrued annual and supplemental information to better align leave account is adjusted to reflect current with the Agency’s strategic and performance pay rates. To the extent current or prior year plans effective in FY 2013. appropriations are not available to fund annual leave earned but not taken, funding will be obtained from future financing sources. Note 2: Non-Entity Assets Sick leave and other types of non-vested leave are expensed as taken. Non-entity assets are assets held by NASA but not available for obligation. The total Retirement Benefits non-entity assets during FY 2013 and FY 2012 is less than one-half million dollars. NASA employees participate in the Civil Ser- vice Retirement System (CSRS), a defined (In Millions of Dollars) 2013 2012 benefit plan, or the Federal Employees Re- Total Non-Entity Assets $ — $ — 18,207 19,035 tirement System (FERS), a defined benefit Total Entity Assets and contribution plan. For CSRS employ- Total Assets $ 18,207 $ 19,035 ees, NASA makes contributions of 7.0 per-

Page 86 NASA FY 2013 Agency Financial Report Financials

(In Millions of Dollars) 2013 2012 Note 3: Fund Balance With Status of Fund Balances with Treasury: Treasury Unobligated Balances Available $ 903 $ 821 Unavailable 141 112 Obligated Balance Not Yet Treasury processes cash receipts and dis- Disbursed 8,720 8,966 Non-Budgetary FBWT 7 2 bursements for NASA. Those transactions are reconciled against NASA records. Fund Total $ 9,771 $ 9,901 Balance with Treasury (FBWT) is NASA’s cash balance with the Treasury. The FBWT is comprised of balances in general funds, trust funds, working capital fund, and other types of funds. General Funds primar- Note 4: Investments ily consist of appropriated funds for NASA. Trust Funds include balances in the Endeav- Investments consist of non-marketable par or Trust Fund; Challenger Trust Fund; and value intragovernmental securities issued Gifts and Donations. Other types of funds by Treasury’s Bureau of the Fiscal Service. include General Receipt funds; and Budget Trust Fund balances are invested in Trea- Clearing and Suspense funds. sury securities, which are purchased at either a premium or discount, and redeemed (In Millions of Dollars) 2013 2012 at par value exclusively through Treasury’s Fund Balances: Federal Investment Branch. The effective- General Funds $ 9,615 $ 9,779 Trust Funds 2 2 interest method is used to amortize premi- Working Capital Fund 147 118 ums on bonds, and the straight-line method Other Fund Types 7 2 is used to amortize discounts on bills.

Total $ 9,771 $ 9,901 Interest receivable on investments was less than one-half million dollars. In addition, The Status of Fund Balance with Treasury NASA did not have any adjustments result- represents the total fund balance recorded ing from the sale of securities prior to matu- in the general ledger for unobligated and rity or any change in value that is more than obligated balances. Unobligated Balances temporary. — Available is the amount remaining in appropriation funds available for obligation. Unobligated Balances — Unavailable is the amount remaining in appropriation funds used only for adjustments to previously recorded obligations. Obligated Balances - Not Yet Disbursed is the cumulative amount of obligations incurred for which outlays have not been made. Non-budgetary FBWT is comprised of amounts in other types of funds.

NASA FY 2013 Agency Financial Report Page 87 Financials

2013 Amortized Market Amortization Interest Investments, Other Cost (Premium) Value Method Receivable Net Adjustments (In Millions of Dollars) Discount Disclosure Intragovernmental Securities: Straight-Line Non-Marketable: Effective-interest Par value $ 19 0.025 - 6.602% $ (2) $ — $ 17 $ — $ 17

Total $ 19 $ (2) $ — $ 17 $ — $ 17

2012 Amortized Market Amortization Interest Investments, Other Cost (Premium) Value Method Receivable Net Adjustments (In Millions of Dollars) Discount Disclosure Intragovernmental Securities: Straight-Line Non-Marketable: Effective-interest Par value $ 19 0.115 – 6.602% $ (2) $ — $ 17 $ — $ 17

Total $ 19 $ (2) $ — $ 17 $ — $ 17

evaluation of public accounts receivable Note 5: Accounts is performed to estimate any uncollectible Receivable, Net amounts based on current status, financial and other relevant characteristics of debt- The Accounts Receivable balance repre- ors, and the overall relationship with the sents net valid claims by NASA to cash or debtor. An allowance for doubtful accounts other assets of other entities. Intragovern- is recorded for Accounts Receivable Due mental Accounts Receivable represents re- from the Public in order to reduce Accounts imbursements due from other federal enti- Receivable to its Net Realizable Value in ac- ties for goods and services provided by cordance with SFFAS No. 1, Accounting for NASA on a reimbursable basis. Accounts Selected Assets and Liabilities. The total Receivable Due from the Public is the total allowance for doubtful accounts during FY of miscellaneous debts owed to NASA from 2013 and FY 2012 is less than one–half mil- employees and/or smaller reimbursements lion dollars. from other non-federal entities. A periodic

2013 Accounts Allowance for Net Amount (In Millions of Dollars) Receivable Uncollectible Accounts Due Intragovernmental $ 156 $ — $ 156 Public 2 — 2

Total $ 158 $ — $ 158

2012 Accounts Allowance for Net Amount (In Millions of Dollars) Receivable Uncollectible Accounts Due Intragovernmental $ 208 $ — $ 208 Public 1 — 1

Total $ 209 $ — $ 209

Page 88 NASA FY 2013 Agency Financial Report Financials

these capitalization criteria are expensed. Note 6: Property, Plant Capitalized costs include costs incurred by and Equipment, Net NASA to bring the property to a form and location suitable for its intended use. Cer- tain NASA assets are held by government NASA reports depreciation expense using contractors. Under provisions of the Fed- the straight-line method over an asset’s es- eral Acquisition Regulation (FAR), the con- timated useful life, beginning with the month tractors are responsible for the control and the asset is placed in service. Property, accountability of the assets in their posses- plant and equipment (PP&E) with acquisi- sion. These government-owned, contractor- tion costs of $100,000 or more, a useful life held assets are included within the balances of 2 years or more, and R&D assets that reported in NASA’s financial statements. are determined at the time of acquisition to There is no known restriction to the use or have alternative future use, are capitalized. convertibility of NASA PP&E. PP&E and R&D assets that do not meet

2013 Depreciation Accumulated Useful Life Cost Book Value (In Millions of Dollars) Method Depreciation Space Exploration PP&E International Space Station Straight-line 5–20 years $ 12,635 $ (9,701) $ 2,934 Space Shuttle Straight-line 5–20 years 743 (743) — Assets Under Construction N/A 1,191 — 1,191 Total 14,569 (10,444) 4,125

General PP&E Land 122 — 122 Structures, Facilities and Leasehold Improvements Straight-line 15–40 years 9,097 (6,770) 2,327 Institutional Equipment Straight-line 5–20 years 2,305 (1,373) 932 Construction in Process N/A 735 — 735 Internal Use Software and Development Straight-line 5 years 266 (246) 20 Total 12,525 (8,389) 4,136

Total Property, Plant and Equipment $ 27,094 $ (18,833) $ 8,261

2012 Depreciation Accumulated Useful Life Cost Book Value (In Millions of Dollars) Method Depreciation Space Exploration PP&E International Space Station Straight-line 5–20 years $ 12,369 $ (8,430) $ 3,939 Space Shuttle Straight-line 5–20 years 1,456 (1,456) — Assets Under Construction N/A 1,590 — 1,590 Total 15,415 (9,886) 5,529

General PP&E Land 122 — 122 Structures, Facilities and Leasehold Improvements Straight-line 15–40 years 8,878 (6,616) 2,262 Institutional Equipment Straight-line 5–20 years 1,484 (1,239) 245 Construction in Process N/A 710 — 710 Internal Use Software and Development Straight-line 5 years 292 (254) 38 Total 11,486 (8,109) 3,377

Total Property, Plant and Equipment $ 26,901 $ (17,995) $ 8,906

NASA FY 2013 Agency Financial Report Page 89 Financials

NASA had 74 buildings and structures that Note 7: Stewardship PP&E are considered to be multi-use heritage assets. The value associated with these multi- use heritage assets is reflected in the G- Federal agencies are required to classify PP&E values reported in Note 6. and report heritage assets in accordance with SFFAS No. 29, Heritage Assets and When a G-PP&E is designated as heritage Stewardship Land. asset, its cost and accumulated depreciation are removed from the books. They remain Stewardship PP&E have physical charac- on the record as heritage assets, except teristics similar to those of General PP&E where there is legal authority for transfer or (G-PP&E) but differ from G-PP&E because sale at which time they are removed from their value is more intrinsic and not easily being a heritage asset. Heritage assets are determinable in dollars. The only type of withdrawn when they are disposed or reclas- stewardship PP&E owned by NASA are her- sified as multi-use heritage assets. Heritage itage assets. assets are generally in fair condition suitable for display. Heritage assets are G-PP&E which possess one or more of the following characteristics: NASA currently has three major classes of heritage assets: Buildings and Structures; • Historical or natural significance Air and Space Displays and Artifacts; and Art • Cultural, educational, or aesthetic value and Miscellaneous Items. The first two cat- • Significant architectural characteristics egories of heritage assets support NASA’s mission by providing the public with tangible Dollar value and useful life of heritage as- examples of assets which were built and de- sets are not easily determinable. There is no ployed to support NASA’s mission. These minimum dollar threshold for designating a real life assets enhance the public’s under- G-PP&E as heritage asset, and depreciation standing of NASA’s numerous programs. expense is not taken on these assets. For Typically the Buildings and Structures have these reasons, heritage assets are reported been designated as National Historic Land- in physical units, rather than with assigned marks. dollar values. In accordance with SFFAS No. 29, the cost of acquisition, improvement, The third category of heritage assets, Art reconstruction, or renovation of heritage as- and Miscellaneous Items, is mainly com- sets is expensed in the period incurred. prised of items created by artists who have contributed their time and talent to record Heritage assets that are used in day-to-day their impressions of the U.S. Aerospace government operations and have a heritage Program in paintings, drawings, and other function are considered “multi-use” heritage media. These works of art not only provide assets. Such assets are accounted for as a historic record of NASA projects, but they general property, plant and equipment and support NASA’s mission by giving the public are capitalized and depreciated in the same a new and fuller understanding of advance- manner as other general property, plant ments in aerospace. and equipment. As of September 30, 2013,

Page 90 NASA FY 2013 Agency Financial Report Financials

(In Physical Units) 2012 Additions Withdrawals 2013 Buildings and Structures 8 5 1 12 Air and Space Displays and Artifacts 635 37 32 640 Art and Miscellaneous Items 1,010 1 — 1,011

Total Heritage Assets 1,653 43 33 1,663

(In Physical Units) 2011 Additions Withdrawals 2012 Buildings and Structures 13 — 5 8 Air and Space Displays and Artifacts 481 172 18 635 Art and Miscellaneous Items 1,005 6 1 1,010

Total Heritage Assets 1,499 178 24 1,653

Note 8: Other Assets

The Other Assets balance represents gen- (In Millions of Dollars) 2013 2012 eral PP&E assets that NASA determines are Removed from Service and Pending Disposal $ — $ 2 no longer needed and are awaiting disposal, retirement, or removal from services. These Total $ — $ 2 amounts are recorded at estimated net realizable value.

The present value of the FECA actuarial li- Note 9: Liabilities Not Covered ability estimate at year-end was calculated by Budgetary Resources by the Department of Labor using a discount rate of 2.73 percent in FY 2013 and 3.14 percent in FY 2012. This liability includes the Liabilities not covered by budgetary resourc- estimated future costs for claims incurred es are liabilities for which congressional ac- but not reported or approved as of the end tion is needed before budgetary resources of each year. NASA has recorded Accounts can be provided. They include certain en- Payable related to cancelled appropriations vironmental matters (see Note 10, Envi- for which there are contractual commitments ronmental and Disposal Liabilities for more to pay. These payables will be funded from information), annual leave, workers’ com- appropriations available for obligation at the pensation under the Federal Employees’ time a bill is processed, in accordance with Compensation Act (FECA) administered by P.L. 101-510, National Defense Authoriza- the Department of Labor, cancelled appro- tion Act. priations, legal claims, and pensions and other retirement benefits.

NASA FY 2013 Agency Financial Report Page 91 Financials

(In Millions of Dollars) 2013 2012 Intragovernmental Liabilities: Other Liabilities Workers' Compensation $ 12 $ 13 Total Intragovernmental 12 13

Public Liabilities: Accounts Payable Accounts Payable for Cancelled Appropriations 37 34 Federal Employee and Veterans Benefits Actuarial FECA Liability 51 50 Environmental and Disposal Liabilities 1,243 1,169 Less: Environmental and Disposal Liabilities- Funded 49 37 Other Liabilities Unfunded Annual Leave 205 207 Total Liabilities Not Covered by Budgetary Resources 1,499 1,436 Total Liabilities Covered by Budgetary Resources 2,776 2,849

Total Liabilities $ 4,275 $ 4,285

Environmental and Disposal Liabilities rep- Note 10: Environmental and resent cleanup costs resulting from: Disposal Liabilities • Operations including facilities obtained In accordance with guidance issued by the from other governmental entities, that Federal Accounting Standards Advisory have resulted in contamination from Board, if an agency is required by regulation waste disposal methods, leaks and spills; to clean up hazardous waste resulting from Federal operations, if estimable, the amount • Other past activity that created a public of cleanup cost must be reported and/or dis- health or environmental risk, including closed in the financial statements. identifiable costs associated with asbestos abatement; and NASA records an estimated liability for restoration projects, which are known contami- • Total cleanup costs associated with the nations of property, plant and equipment removal, containment, and/or disposal (PP&E). NASA also records an estimated of hazardous wastes or material and/or liability for the future disposal of PP&E which property at permanent or temporary clo- currently, or prior to their disposal, will be- sure or shutdown of associated property, come contaminated. plant and equipment (PP&E).

NASA assesses the likelihood of required Federal, state, and local statutes and regu- cleanup as probable, reasonably possible or lations require environmental cleanup. The remote. If the likelihood of required cleanup statutes and regulations most applicable to is probable and the cost can be reasonably NASA covering environmental response, estimated, a liability is recorded in the finan- cleanup, and monitoring include: the Com- cial statements. If the likelihood of required prehensive Environmental Response, Com- cleanup is reasonably possible, the estimat- pensation and Liability Act; the Resource ed cost of cleanup is disclosed in the notes Conservation and Recovery Act; the Nucle- to the financial statements. If the likelihood ar Waste Policy Act of 1982; as well as state of required cleanup is remote, no liability is and local laws. recorded or estimate disclosed.

Page 92 NASA FY 2013 Agency Financial Report Financials

Consistent with SFFAS No. 5, Accounting for Liabilities of the Federal Government and with SFFAS 6, Accounting for Property, Plant, and Equipment, NASA estimates the anticipated environmental disposal cleanup costs for capital PP&E. NASA recognizes and records in its financial statements an environmental cleanup liability for PP&E with a probable and measurable environmental cleanup liability.

(In Millions of Dollars) 2013 2012 Environmental Liabilities Restoration Properties $ 1,158 $ 1,086 Property, Plant & Equipment 63 83 Asbestos 22 — Total Environmental and Disposal Liabilities $ 1,243 $ 1,169

Restoration Projects PP&E

NASA recorded a total estimated liability for NASA recorded a total estimated liability for known restoration projects of $1,158 million the future closure of PP&E of $63 million in in FY 2013. This was an increase of $72 mil- FY 2013. This was a decrease of $20 million lion over the $1,086 million recorded in FY over the $83 million recorded in FY 2012. 2012. The increase in this liability is primar- The decrease in this liability is primarily due ily due to the availability of new or updated to refinements in the estimation methodol- information on the extent of contamination ogy. and refinements to the estimation methodology. The current proposed decommissioning approach for the International Space Station In addition to the probable cleanup costs (ISS) is to execute a controlled targeted for known hazardous conditions recognized deorbit to a remote ocean location. This is in the financial statements, there are other consistent with the approach used to deorbit remediation sites where the likelihood of re- other space vehicles such as Russia’s Prog- quired cleanup for known hazardous condi- ress, Europe’s Automated Transfer Vehicle tions is reasonably possible. Remediation (ATV) and Japan’s H-II Transfer Vehicle costs at certain sites classified as reason- (HTV). The documented target reliability for ably possible were estimated to be $1 mil- this decommissioning approach is 99 per- lion for FY 2013 and FY 2012. cent. Prior to decommissioning the ISS, any hazardous materials on board the ISS would With respect to environmental remediation be removed or jettisoned. As a result, only that NASA considers reasonably possible residual quantities of hazardous, toxic, and but not estimable, NASA concluded that ei- radioactive materials would remain prior to ther the likelihood of a NASA liability is less the decommissioning. than probable but more than remote or the regulatory drivers and/or technical data that Based on past experience with the re-entry of exist are not reliable enough to calculate an satellites, larger portions or fragments of the estimate. ISS would be expected to survive the thermal and aerodynamic stresses of re-entry. However, the historical disposal of satellites and vehicles into broad ocean areas with a

NASA FY 2013 Agency Financial Report Page 93 Financials controlled deorbit has left little evidence of their re-entry. Any remaining contamination Note 11: Other Liabilities in the ISS debris field would not be expected to have a substantive impact on marine life. Therefore, the probability of NASA incurring Other Liabilities are comprised of intragov- environmental cleanup costs related to the ernmental liabilities and liabilities with public ISS is remote and no estimate for such costs entities. Other Accrued Liabilities primarily has been developed or reported in these fi- consist of the accrual of contractor costs nancial statements. for goods and services. The period of performance for contractor contracts typically Asbestos spans the duration of NASA programs, which could be for a number of years prior to final Effective in FY 2013, NASA and other Fed- delivery of the product. In such cases, NASA eral Government agencies are required to records a cost accrual throughout the fiscal accrue and/or disclose the costs and the year as the work is performed. Advances associated liabilities for abatement of both from Others primarily consists of payments friable and non-friable asbestos. NASA received from other federal agencies in ad- maintains numerous structures and facili- vance of the performance of services under ties across each of the Centers which are reimbursable agreements. Other Liabilities known to contain asbestos. Based on work also includes federal employee payroll and completed to date, NASA has determined benefit liabilities, including unfunded annual that information regarding both the quantity leave and funded sick leave that has been of asbestos and the costs associated with earned but not taken, and salaries and wag- the removal and disposal of asbestos is in- es that have been earned but are unpaid. sufficient to reasonably estimate the liability associated with the removal and disposal of asbestos.

As prescribed in FASAB Technical Release 10, Implementation Guidance on Asbestos Cleanup Costs Associated with Facilities and Installed Equipment, NASA determined that completing site specific inventories of asbestos, and gathering reliable cost estimates regarding the removal and disposal of asbestos, would cost an estimated $22 million.

Page 94 NASA FY 2013 Agency Financial Report Financials

2013 (In Millions of Dollars) Current Non-Current Total Intragovernmental Liabilities: Advances From Others $ 67 $ — $ 67 Workers’ Compensation 5 7 12 Employer Contributions and Payroll Taxes 9 — 9 Liability for Non-Entity Assets 1 — 1 Other Accrued Liability 3 — 3 Total Intragovernmental 85 7 92 Unfunded Annual Leave — 205 205 Accrued Funded Payroll 51 — 51 Advances from Others 100 — 100 Employer Contributions and Payroll Taxes 5 — 5 Liability for Deposit and Clearing Funds 6 6 Other Accrued Liabilities 1,119 — 1,119 Total Public 1,281 205 1,486 Total Other Liabilities $ 1,366 $ 212 $ 1,578

2012 (In Millions of Dollars) Current Non-Current Total Intragovernmental Liabilities: Advances From Others $ 61 $ — $ 61 Workers’ Compensation 5 8 13 Employer Contributions and Payroll Taxes 7 — 7 Liability for Non-Entity Assets 1 — 1 Other Accrued Liability 3 — 3 Total Intragovernmental 77 8 85 Unfunded Annual Leave - 207 207 Accrued Funded Payroll 43 — 43 Advances from Others 90 — 90 Employer Contributions and Payroll Taxes 4 — 4 Liability for Deposit and Clearing Funds 2 — 2 Other Accrued Liabilities 1,176 — 1,176 Total Public 1,315 207 1,522

Total Other Liabilities $ 1,392 $ 215 $ 1,607

tute of Technology (Caltech) to manage the Note 12: Commitments and Agency’s Jet Propulsion Laboratory (JPL). Contingencies Currently, Caltech seeks reimbursement from NASA for postretirement benefits other than pension costs on a pay-as-you-go ba- NASA is a party in various administrative pro- sis. NASA and the contractor are negotiat- ceedings, court actions (including tort suits), ing a modification to the contract to address and claims. For cases which management these costs going forward. The parties are and legal counsel believe it is probable that currently working to definitize the terms of the outcomes will result in a loss to NASA, the agreement. contingent liabilities are recorded. There were certain cases reviewed by legal coun- There are certain other contracts which may sel where the probable future loss is remote contain provisions regarding contingent ob- and as such no contingent liability has been ligations to fund accumulated unfunded em- recorded in connection with these cases. ployee benefit plans upon contract termina- tion. Currently, these potential liabilities are NASA has a contract with the California Insti- not measurable.

NASA FY 2013 Agency Financial Report Page 95 Financials

exchange transactions made between Note 13: Intragovernmental NASA and other federal government enti- Cost and Exchange Revenue ties. Costs and revenue with the Public result from transactions between NASA and non-federal entities. Intragovernmental costs and revenue are

(In Millions of Dollars) 2013 2012 Strategic Goal 1 – Human Exploration Intragovernmental Costs $ 150 $ 181 Public Costs 7,512 7,948 Total Gross Costs 7,662 8,129

Less: Intragovernmental Earned Revenue 206 256 Public Earned Revenue 68 75 Total Earned Revenue 274 331 Net Cost $ 7,388 $ 7,798 Strategic Goal 2 – Scientific Understanding of Universe Intragovernmental Costs $ 304 $ 287 Public Costs 5,486 5,256 Total Gross Costs 5,790 5,543 Less: Intragovernmental Earned Revenue 1,549 1,336 Public Earned Revenue 12 13 Total Earned Revenue 1,561 1,349 Net Cost $ 4,229 $ 4,194 Strategic Goal 3 – Space Technology Development Intragovernmental Costs $ 38 $ 17 Public Costs 640 274 Total Gross Costs 678 291 Less: Total Earned Revenue — — Net Cost $ 678 $ 291 Strategic Goal 4 – Aeronautics Research for Nation Intragovernmental Costs $ 36 $ 44 Public Costs 488 506 Total Gross Costs 524 550 Less: Intragovernmental Earned Revenue 73 84 Public Earned Revenue 22 20 Total Earned Revenue 95 104 Net Cost $ 429 $ 446 Strategic Goal 5 – Mission Support Intragovernmental Costs $ 593 $ 598 Public Costs 4,837 4,758 Total Gross Costs 5,430 5,356 Less: Intragovernmental Earned Revenue 289 235 Public Earned Revenue 66 55 Total Earned Revenue 355 290 Net Cost $ 5,075 $ 5,066 Strategic Goal 6 – Education and Communication Intragovernmental Costs $ 2 $ 1 Public Costs 133 159 Total Gross Costs 135 160 Less: Total Earned Revenue — — Net Cost 135 160 Net Cost of Operations $ 17,934 $ 17,955

Page 96 NASA FY 2013 Agency Financial Report Financials

(In Millions of Dollars) 2013 2012 Note 14: Apportionment Direct Obligations: Category A $ 1 $ 1 Categories of Obligations Category B 16,997 18,155 Reimbursable Obligations: Incurred: Direct vs. Category B 2,713 2,529

Reimbursable Obligations Total Obligations Incurred $ 19,711 $ 20,685

Category A consists of amounts requested to be apportioned on a basis other than cal- to be apportioned annually and distributed endar quarters, such as time periods other for each calendar quarter in the fiscal year. than quarters, activities, projects, objects, or Category B consists of amounts requested a combination thereof.

Note 15: Explanation of Differences Between the Statement of Budgetary Resources (SBR) and the Budget of the U.S. Government

The FY 2015 Budget of the United States NASA reconciled the amounts of the FY 2012 Government (President’s Budget) present- column on the SBR to the actual amounts ing the actual amounts for the year ended for FY 2012 in the FY 2014 President’s Bud- September 30, 2013 has not been published get for budgetary resources, obligations in- as of the issue date of these financial state- curred, distributed offsetting receipts, and ments. net outlays as presented below.

Distributed Budgetary Offsetting (In Millions of Dollars) Resources Obligations Receipts Net Outlays Combined Statement of Budgetary Resources $ 21,618 $ 20,685 $ (3) $ 17,190 Included on SBR, not in President's Budget Expired Accounts (188) (75) — — Distributed Offsetting Receipts — — 3 (3)

Budget of the United States Government $ 21,430 $ 20,610 $ — $ 17,187

The difference between the SBR and the President’s Budget represents expired accounts and distributed offsetting receipts reported on the SBR but not in the President’s Budget.

of goods and/or services ordered to per- Note 16: Undelivered Orders form NASA mission objectives, which have at the End of the Period not been received. The total Undelivered Orders at the end of the period totaled $7.3 billion and $7.7 billion as of September 30, Undelivered Orders represent the amount 2013 and September 30, 2012, respectively.

NASA FY 2013 Agency Financial Report Page 97 Financials

based measures used in the Statement of Note 17: Reconciliation of Net Cost differ from the obligation-based Net Cost to Budget measures used in the Statement of Budget- ary Resources. This reconciliation shows the relationship between the net obliga- SFFAS No.7, Accounting for Revenues tions derived from the Statement of Budget- and Other Financing Concepts for Recon- ary Resources and net costs of operations ciling Budgetary and Financial Accounting, derived from the Statement of Net Cost by requires a reconciliation of proprietary and identifying and explaining key items that af- budgetary accounting information. Accrual- fect one statement but not the other.

(In Millions of Dollars) 2013 2012 Resources Used to Finance Activities Budgetary Resources Obligated Obligations Incurred $ 19,711 $ 20,685 Less: Spending Authority from Offsetting Collections and Recoveries 2,968 3,207 Obligations Net of Offsetting Collections and Recoveries 16,743 17,478 Less: Offsetting Receipts — (6) Net Obligations 16,743 17,484 Other Resources Donations & Forfeitures of Property 3 4 Transfers In/Out Without Reimbursements 109 100 Imputed Financing from Costs Absorbed by Others 150 176 Net Other Resources Used to Finance Activities 262 280

Total Resources Used to Finance Activities 17,005 17,764

Resources Used to Finance Items Not Part of the Net Cost of Operations Change in Budgetary Resources Obligated for Goods, Services, and 207 (440) Benefits Ordered But Not Yet Provided Resources that Fund Expenses Recognized in Prior Periods (3) (294) Budgetary Offsetting Collections and Receipts that Do Not Affect the Net Costs of Operations—Other — (6) Resources that Finance the Acquisition of Assets (1,155) (1,113) Other Resources or Adjustments to Net Obligated Resources that Do Not Affect Net Cost of Operations (3) (4)

Total Resources Used to Finance Items Not Part of the Net Cost of Operations (954) (1,857)

Total Resources Used to Finance the Net Cost of Operations $ 16,051 $ 15,907

Components of Net Cost that Will Not Require or Generate Resources in the Current Period Components Requiring or Generating Resources in Future Periods Increases in Environmental and Disposal Liability $ 74 $ — Other 3 —

Total Components of Net Cost that Will Require or Generate Resources in Future Periods 77 —

Components Not Requiring or Generating Resources Depreciation 1,569 1,443 Revaluation of Assets or Liabilities 1 (8) Other 236 613

Total Components of Net Cost of Operations that Will Not Require or Generate Resources 1,806 2,048

Total Components of Net Cost of Operations that Will Not Require or Generate Resources in the Current Period 1,883 2,048

Net Cost of Operations $ 17,934 $ 17,955

Page 98 NASA FY 2013 Agency Financial Report Financials

the basis of the Agency’s performance Required Supplementary framework and are executed to support its Stewardship Information strategic plan. To provide a complete analysis of NASA costs, both Research and De- velopment and non-R&D costs are present- Stewardship Investments: ed. Descriptions for the strategic goals and Research and Development outcomes associated with these costs are also presented. NASA’s strategic goals and outcomes are

Research and Development Costs by Strategic Goal

(In Millions of Dollars) 2013 2012 2011 2010 2009

Research and Development Costs

Basic

Strategic Goal 1 - Human Exploration $ 335 $ 303 $ 258 $ 363 $ 18 Strategic Goal 2 - Scientific Understanding of Universe 2,540 866 851 842 817 Strategic Goal 3 - Space Technology Development - 11 - - - Strategic Goal 4 - Aeronautics Research for Nation - - - - - Strategic Goal 5 - Mission Support - - 22 22 6 Strategic Goal 6 - Education and Communication - - - - - Total Basic Expenses $ 2,875 $ 1,180 $ 1,131 $ 1,227 $ 841

Applied

Strategic Goal 1 - Human Exploration $ 1,506 $ 1,550 $ 1,383 $ 1,924 $ 169 Strategic Goal 2 - Scientific Understanding of Universe 218 38 38 41 40 Strategic Goal 3 - Space Technology Development 355 11 - - - Strategic Goal 4 - Aeronautics Research for Nation 445 442 429 464 465 Strategic Goal 5 - Mission Support 66 - 114 103 84 Strategic Goal 6 - Education and Communication - - - - - Total Applied Expenses $ 2,590 $ 2,041 $ 1,964 $ 2,532 $ 758

Development

Strategic Goal 1 - Human Exploration $ 3,409 $ 1,789 $ 2,616 $ 3,425 $ 1,853 Strategic Goal 2 - Scientific Understanding of Universe 1,409 1,834 2,097 2,004 1,917 Strategic Goal 3 - Space Technology Development 279 8 - - - Strategic Goal 4 - Aeronautics Research for Nation - - - - - Strategic Goal 5 - Mission Support 118 - 46 43 21 Strategic Goal 6 - Education and Communication - - - - - Total Development Expenses $ 5,215 $ 3,631 $ 4,759 $ 5,472 $ 3,791

Total Research and Development $ 10,680 $ 6,852 $ 7,854 $ 9,231 $ 5,390

Non-Research and Development Cost

Strategic Goal 1 - Human Exploration $ 2,412 $ 4,487 $ 4,669 $ 4,608 $ 7,548 Strategic Goal 2 - Scientific Understanding of Universe 1,623 2,805 2,508 2,162 2,188 Strategic Goal 3 - Space Technology Development 44 261 - - - Strategic Goal 4 - Aeronautics Research for Nation 79 108 138 101 109 Strategic Goal 5 - Mission Support 5,246 5,356 4,532 6,316 8,317 Strategic Goal 6 - Education and Communication 135 160 181 149 105 Total Non-Research and Development Expenses $ 9,539 $ 13,177 $ 12,028 $ 13,336 $ 18,267

Total Expenses $ 20,219 $ 20,029 $ 19,882 $ 22,567 $ 23,657

NASA FY 2013 Agency Financial Report Page 99 Financials

NASA makes substantial research and de- and for supporting future objectives in velopment investments for the benefit of human space exploration. the nation. These amounts are expensed • Develop competitive opportunities for the as incurred in determining the gross cost of commercial community to provide best operations. value products and services to low Earth orbit and beyond. NASA’s R&D programs include activities to extend our knowledge of Earth, its space en- • Develop an integrated architecture and vironment, and the universe, and to invest in capabilities for safe crewed and cargo new aeronautics and advanced space trans- missions beyond low Earth orbit. portation technologies that support the development and application of technologies Strategic Goal 2: Scientific critical to the economic, scientific, and tech- Understanding of Universe nical competitiveness of the United States. Expand scientific understanding of the Earth Investment in R&D refers to those expenses and the universe in which we live. incurred to support the search for new or re- fined knowledge and ideas and for the appli- Major Projects Include: cation or use of such knowledge and ideas • Airborne Science for the development of new or improved • Chandra X-Ray Observatory products and processes with the expecta- • High-End Computing Capability tion of maintaining or increasing national • Hubble Space Telescope Operations economic productive capacity or yielding • ICESAT-2 other future benefits. • Landsat Data Continuity Mission • Mars Science Labs Research and Development: • Multi-Mission Operations Strategic Goals and Outcomes • Nuclear Power Radioisotope System • Soil Moisture Active and Passive Strategic Goal 1: Human Exploration • Sounding Rockets • Stratospheric Observatory for Infrared Extend and sustain human activities across the solar system. Outcomes: • Advance Earth system science to meet Major Projects Include: the challenges of climate and environ- • Commercial Crew and Launch Vehicles mental change. • Space Radiation • Understand the Sun and its interactions • ISS Spacecraft Operations with Earth and the solar system.

Outcomes: • Ascertain the content, origin, and evolu- • Sustain the operation and full use of the tion of the solar system and the potential International Space Station (ISS) and ex- for life elsewhere. pand efforts to utilize the ISS as a Nation- • Discover how the universe works, ex- al Laboratory for scientific, technological, plore how it began and evolved, and diplomatic, and educational purposes search for Earth-like planets.

Page 100 NASA FY 2013 Agency Financial Report Financials

Strategic Goal 3: Space Major Projects Include: Technology Development • Environmentally Responsible Aviation • Fixed Wing Project Create the innovative new space technolo- • NextGen Concepts and Technology gies for our exploration, science, and eco- • Vehicle Systems Safety Technologies nomic future. Outcomes: Major Projects Include: • Develop innovative solutions and ad- • Game-Changing Development — Hu- vanced technologies through a balanced man Robotic Systems research portfolio to improve current and • Game-Changing Development — Com- future air transportation. posite Cryotanks • Conduct systems-level research on in- • Technology Demonstration Missions - In- novative and promising aeronautics con- flatable Aero Decelerators (LDSD) cepts and technologies to demonstrate • Technology Demonstration Missions — integrated capabilities and benefits in Cryo Propellant Transfer & Storage a relevant flight and/or ground environ- • ST Small Business Technology Transfer ment. • Spacecraft Servicing Strategic Goal 5: Mission Support Outcomes: • Sponsor early-stage innovation in space Enable program and institutional capabilities technologies in order to improve the fu- to conduct NASA’s aeronautics and space ture capabilities of NASA, other govern- activities. ment agencies, and the aerospace industry. Outcomes: • Infuse game-changing and crosscutting • Identify, cultivate, and sustain a diverse technologies throughout the Nation’s workforce and inclusive work environ- space enterprise to transform the Na- ment that is needed to conduct NASA tion’s space mission capabilities. missions. • Develop and demonstrate the critical • Ensure vital assets are ready, available, technologies that will make NASA’s ex- and appropriately sized to conduct NA- ploration, science, and discovery mis- SA’s missions. sions more affordable and more capable. • Ensure the availability to the Nation of • Facilitate the transfer of NASA technolo- NASA-owned, strategically important gy and engage in partnerships with other test capabilities. government agencies, industry, and in- • Implement and provide space communi- ternational entities to generate U.S. com- cations and launch capabilities respon- mercial activity and other public benefits. sive to existing and future science and space exploration missions. Strategic Goal 4: Aeronautics Research for Nation • Establish partnerships, including innovative arrangements, with commercial, Advance aeronautics research for societal international, and other government enti- benefit. ties to maximize mission success.

NASA FY 2013 Agency Financial Report Page 101 Financials

Strategic Goal 6: Education education pipeline. and Communication • Promote STEM literacy through strategic partnerships with formal and informal or- Share NASA with the public, educators, and ganizations. students to provide opportunities to participate in our Mission, foster innovation, and • Engage the public in NASA’s missions by contribute to a strong national economy. providing new pathways for participation. • Inform, engage, and inspire the public Outcomes: by sharing NASA’s missions, challenges, • Improve retention of students in STEM and results. disciplines by providing opportunities and activities along the full length of the

Note: For more information on strategic goals descriptions and achievements/outcomes, please refer to pages 21-46.

Page 102 NASA FY 2013 Agency Financial Report Financials

Required Supplementary Information

Combining Schedule of Budgetary Resources For the Fiscal Year Ended September 30, 2013

Space Cross- Operations Science Exploration Aeronautics Agency Education (In Millions of Dollars) Mission Mission Mission Mission Mission Mission Budgetary Resources: Unobligated Balance, Brought Forward, October 1 $ 108 $ 73 $ 96 $ 18 $ 383 $ 21 Recoveries of Prior Year Unpaid Obligations 110 92 52 9 46 3 Other Changes in Unobligated Balance — — — — — — Unobligated Balance from Prior Year Budget Authority, Net 218 165 148 27 429 24 Appropriations 3,725 4,781 3,705 530 2,711 116 Spending Authority from Offsetting Collections 4 1 2 — 2,211 —

Total Budgetary Resources $ 3,947 $ 4,947 $ 3,855 $ 557 $ 5,351 $ 140

Status of Budgetary Resources: Obligations Incurred $ 3,777 $ 4,755 $ 3,802 $ 542 $ 5,051 $ 122 Unobligated Balance, End of Year: Apportioned 99 178 47 13 283 15 Unapportioned 71 14 6 2 17 3 Total Unobligated Balance, End of Period 170 192 53 15 300 18

Total Status of Budgetary Resources $ 3,947 $ 4,947 $ 3,855 $ 557 $ 5,351 $ 140

Change in Obligated Balance: Unpaid Obligations: Unpaid Obligations, Brought Forward, October 1 $ 1,756 $ 3,070 $ 1,946 $ 256 $ 2,086 $ 178 Obligations Incurred 3,777 4,755 3,802 542 5,051 122 Outlays (Gross) (-) (3,819) (4,703) (4,030) (558) (5,274) (133) Recoveries of Prior Year Unpaid Obligations (-) (110) (92) (52) (9) (46) (3) Unpaid Obligations, End of Year 1,604 3,030 1,666 231 1,817 164

Uncollected payments: Uncollected Payments, Federal Sources, Brought Forward, October 1 (-) — — — — (1,314) — Change in Uncollected Payments, Federal sources — — — — 265 — Uncollected Payments, Fed Sources, End of Year (-) — — — — (1,049) — Memorandum (Non-Add) Entries: Obligated Balance, Start of Year 1,756 3,070 1,946 256 772 178

Obligated Balance, End of Year $ 1,604 $ 3,030 $ 1,666 $ 231 $ 768 $ 164

Budget Authority and Outlays, Net: Budget Authority, Gross $ 3,729 $ 4,782 $ 3,707 $ 530 $ 4,922 $ 116 Actual Offsetting Collections (-) (4) (1) (2) — (2,475) — Change in Uncollected Customer Payments from Federal Sources — — — — 265 — Anticipated Offsetting Collections — — — — — —

Budget Authority, Net 3,725 4,781 3,705 530 2,712 116

Outlays, Gross 3,819 4,703 4,030 558 5,274 133 Actual Offsetting Collections (-) (4) (1) (2) — (2,475) — Outlays, Net 3,815 4,702 4,028 558 2,799 133 Distributed Offsetting Receipts (-) — — — — — —

Agency Outlays, Net $ 3,815 $ 4,702 $ 4,028 $ 558 $ 2,799 $ 133

NASA FY 2013 Agency Financial Report Page 103 Financials

Combining Schedule of Budgetary Resources For the Fiscal Year Ended September 30, 2013 (continued)

American Construction Recovery and Office of and Rein- Space Environmental Inspector vestment Technology Compliance (In Millions of Dollars) General Act Mission and Restoration Other Total Budgetary Resources: Unobligated Balance, Brought Forward, October 1 $ 3 $ 2 $ 14 $ 172 $ 43 $ 933 Recoveries of Prior Year Unpaid Obligations — — 7 12 20 351 Other Changes in Unobligated Balance — — — — (26) (26) Unobligated Balance from Prior Year Budget Authority, Net 3 2 21 184 37 1,258 Appropriations 36 — 614 661 1 16,880 Spending Authority from Offsetting Collections 1 — — 3 395 2,617

Total Budgetary Resources $ 40 $ 2 $ 635 $ 848 $ 433 $ 20,755

Status of Budgetary Resources: Obligations Incurred $ 36 $ — $ 623 $ 601 $ 402 $ 19,711 Unobligated Balance, End of Year: Apportioned 1 — 11 246 10 903 Unapportioned 3 2 1 1 21 141 Total Unobligated Balance, End of Period 4 2 12 247 31 1,044

Total Status of Budgetary Resources $ 40 $ 2 $ 635 $ 848 $ 433 $ 20,755

Change in Obligated Balance: Unpaid Obligations: Unpaid Obligations, Brought Forward, October 1 $ 5 $ 11 $ 292 $ 511 $ 173 $ 10,284 Obligations Incurred 36 — 623 601 402 19,711 Outlays (Gross) (-) (37) (1) (552) (377) (389) (19,873) Recoveries of Prior Year Unpaid Obligations (-) — — (7) (12) (20) (351) Unpaid Obligations, End of Year 4 10 356 723 166 9,771

Uncollected payments: Uncollected Payments, Federal Sources, Brought Forward, October 1 (-) — — — — (4) (1,318) Change in Uncollected Payments, Federal sources — — — — 2 267 Uncollected Payments, Fed Sources, End of Year (-) — — — — (2) (1,051) Memorandum (Non-Add) Entries: Obligated Balance, Start of Year 5 11 292 511 169 8,966

Obligated Balance, End of Year $ 4 $ 10 $ 356 $ 723 $ 164 $ 8,720

Budget Authority and Outlays, Net: Budget Authority, Gross $ 37 $ — $ 614 $ 664 $ 396 $ 19,497 Actual Offsetting Collections (-) (1) — — (3) (398) (2,884) Change in Uncollected Customer Payments from Federal Sources — — — — 2 267 Anticipated Offsetting Collections — — — — — —

Budget Authority, Net 36 — 614 661 — 16,880

Outlays, Gross 37 1 552 377 389 19,873 Actual Offsetting Collections (-) (1) — — (3) (398) (2,884) Outlays, Net 36 1 552 374 (9) 16,989 Distributed Offsetting Receipts (-) — — — — (13) (13)

Agency Outlays, Net $ 36 $ 1 $ 552 $ 374 $ (22) $ 16,976

Page 104 NASA FY 2013 Agency Financial Report Financials

Combining Schedule of Budgetary Resources For the Fiscal Year Ended September 30, 2012

Space Cross- Operations Science Exploration Aeronautics Agency Education (In Millions of Dollars) Mission Mission Mission Mission Mission Mission Budgetary Resources: Unobligated Balance, Brought Forward, October 1 $ 130 $ 83 $ 189 $ 12 $ 42 $ 28 Recoveries of Prior Year Unpaid Obligations 180 58 59 6 29 3 Other Changes in Unobligated Balance — — — — — — Unobligated Balance from Prior Year Budget Authority, Net 310 141 248 18 71 31 Appropriations 4,192 5,074 3,716 569 3,003 136 Spending Authority from Offsetting Collections 10 — — — 2,557 —

Total Budgetary Resources $ 4,512 $ 5,215 $ 3,964 $ 587 $ 5,631 $ 167

Status of Budgetary Resources: Obligations Incurred $ 4,404 $ 5,142 $ 3,868 $ 569 $ 5,248 $ 146 Unobligated Balance, End of Year: Apportioned 64 63 92 17 370 18 Unapportioned 44 10 4 1 13 3 Total Unobligated Balance, End of Period 108 73 96 18 383 21

Total Status of Budgetary Resources $ 4,512 $ 5,215 $ 3,964 $ 587 $ 5,631 $ 167

Change in Obligated Balance: Unpaid Obligations: Unpaid Obligations, Brought Forward, October 1 $ 2,018 $ 2,764 $ 1,712 $ 259 $ 1,918 $ 187 Obligations Incurred 4,404 5,142 3,868 569 5,248 146 Outlays (Gross) (-) (4,486) (4,778) (3,575) (566) (5,051) (152) Recoveries of Prior Year Unpaid Obligations (-) (180) (58) (59) (6) (29) (3) Unpaid Obligations, End of Year 1,756 3,070 1,946 256 2,086 178

Uncollected payments: Uncollected Payments, Federal Sources, Brought Forward, October 1 (-) (5) — — — (832) — Change in Uncollected Payments, Federal sources 5 — — — (482) — Uncollected Payments, Fed Sources, End of Year (-) 0 — — — (1,314) — Memorandum (Non-Add) Entries: Obligated Balance, Start of Year 2,013 2,764 1,712 259 1,086 187

Obligated Balance, End of Year $ 1,756 $ 3,070 $ 1,946 $ 256 $ 772 $ 178

Budget Authority and Outlays, Net: Budget Authority, Gross $ 4,202 $ 5,074 $ 3,716 $ 569 $ 5,560 $ 136 Actual Offsetting Collections (-) (15) — — — (2,075) — Change in Uncollected Customer Payments from Federal Sources 5 — — — (482) — Anticipated Offsetting Collections — — — — — —

Budget Authority, Net $ 4,192 $ 5,074 $ 3,716 $ 569 $ 3,003 $ 136

Outlays, Gross 4,486 4,778 3,575 566 5,051 152 Actual Offsetting Collections (-) (15) — — — (2,075) — Outlays, Net 4,471 4,778 3,575 566 2,976 152 Distributed Offsetting Receipts (-) — — — — — —

Agency Outlays, Net $ 4,471 $ 4,778 $ 3,575 $ 566 $ 2,976 $ 152

NASA FY 2013 Agency Financial Report Page 105 Financials

Combining Schedule of Budgetary Resources For the Fiscal Year Ended September 30, 2012 (continued)

American Construction Recovery and Office of and Rein- Space Environmental Inspector vestment Technology Compliance (In Millions of Dollars) General Act Mission and Restoration Other Total Budgetary Resources: Unobligated Balance, Brought Forward, October 1 $ 3 $ 2 $ — $ 109 $ 79 $ 677 Recoveries of Prior Year Unpaid Obligations — 1 — 5 24 365 Other Changes in Unobligated Balance — — — — (37) (37) Unobligated Balance from Prior Year Budget Authority, Net 3 3 — 114 66 1,005 Appropriations 38 — 548 495 — 17,771 Spending Authority from Offsetting Collections 1 — — 2 272 2,842

Total Budgetary Resources $ 42 $ 3 $ 548 $ 611 $ 338 $ 21,618

Status of Budgetary Resources: Obligations Incurred $ 39 $ 1 $ 534 $ 439 $ 295 $ 20,685 Unobligated Balance, End of Year: Apportioned 1 — 14 172 10 821 Unapportioned 2 2 — — 33 112 Total Unobligated Balance, End of Period 3 2 14 172 43 933

Total Status of Budgetary Resources $ 42 $ 3 $ 548 $ 611 $ 338 $ 21,618

Change in Obligated Balance: Unpaid Obligations: Unpaid Obligations, Brought Forward, October 1 $ 4 $ 56 $ — $ 460 $ 148 $ 9,526 Obligations Incurred 39 1 534 439 295 20,685 Outlays (Gross) (-) (38) (45) (242) (383) (246) (19,562) Recoveries of Prior Year Unpaid Obligations (-) — (1) — (5) (24) (365) Unpaid Obligations, End of Year 5 11 292 511 173 10,284

Uncollected payments: Uncollected Payments, Federal Sources, Brought Forward, October 1 (-) — (1) — — (13) (851) Change in Uncollected Payments, Federal sources — 1 — — 9 (467) Uncollected Payments, Fed Sources, End of Year (-) — — — — (4) (1,318) Memorandum (Non-Add) Entries: Obligated Balance, Start of Year 4 55 — 460 135 8,675

Obligated Balance, End of Year $ 5 $ 11 $ 292 $ 511 $ 169 $ 8,966

Budget Authority and Outlays, Net: Budget Authority, Gross $ 39 $ — $ 548 $ 497 $ 272 $ 20,613 Actual Offsetting Collections (-) (1) (1) — (2) (281) (2,375) Change in Uncollected Customer Payments from Federal Sources — 1 — — 9 (467) Anticipated Offsetting Collections — — — — — —

Budget Authority, Net 38 — 548 495 — 17,771

Outlays, Gross 38 45 242 383 246 19,562 Actual Offsetting Collections (-) (1) (1) — (2) (281) (2,375) Outlays, Net 37 44 242 381 (35) 17,187 Distributed Offsetting Receipts (-) — — — — 3 3

Agency Outlays, Net $ 37 $ 44 $ 242 $ 381 $ (32) $ 17,190

Page 106 NASA FY 2013 Agency Financial Report Financials

Deferred Maintenance and Repairs For the Fiscal Years 2013 and 2012

Deferred maintenance and repairs are main- of facilities; results are not necessarily appli- tenance and repair activities not performed cable for individual facilities or small popula- when they should have been or were sched- tions of facilities. Under this methodology, uled to be and which, therefore, are put off NASA defines acceptable operating condi- or delayed for a future period. NASA’s build- tions in accordance with standards compa- ings, facilities and other structures which in- rable to those used in private industry and clude heritage assets remain in fair to good the aerospace industry. condition. Heritage assets support NASA’s mission and enhance the public’s under- There has been no significant change in standing of NASA’s numerous programs. our deferred maintenance and repair estimate this year. The FCI is rated on a scale NASA uses a Deferred Maintenance para- from 5 (excellent) to 1 (non-functional). The metric estimating method (DM method) in Agency-wide FCI, based on the ratings ob- order to conduct a consistent condition as- tained during the condition assessment site sessment of its facilities, buildings and other visits, remains unchanged from the previous structures (including heritage assets). This fiscal year. The FCI values for the majority method measures NASA’s current real prop- of individual Centers and sites varied less erty asset condition and documents real than 0.5, validating the relative stability of property deterioration. The DM method pro- the Centers and sites despite the continued duces both a cost estimate of deferred main- aging and deterioration of older facilities. tenance and repairs, and a Facility Condition Evaluation of the facility conditions by build- Index (FCI). Both measures are indicators ing type (Real Property Classification Code/ of the overall condition of NASA’s facilities. DM Category) indicates that the Agency The facilities condition assessment meth- continues to focus maintenance and repair odology involves an independent, rapid vi- on direct mission-related facilities. Higher sual assessment of nine different systems condition ratings are reported for Launch within each facility to include: structure, Facilities, potable water facilities, launch, roof, exterior, interior finishes, HVAC, elec- communication, tracking, and fuel facilities trical, plumbing, conveyance, and program Agency-wide. Lower condition ratings occur support equipment. The DM method is de- for infrastructure, site related systems, and signed for application to a large population static test stands.

Deferred Maintenance Method 2013 2012 Facility Condition Index (FCI) 3.7 3.7 Target Facility Index 3.8 3.8 Deferred Maintenance Estimate (Active and Inactive Assets) $ 2,295 $ 2,330 (In Millions of Dollars)

NASA FY 2013 Agency Financial Report Page 107 Financials

This page has been left blank intentionally.

Page 108 NASA FY 2013 Agency Financial Report Financials

NASA FY 2013 Agency Financial Report Page 109 Financials

Page 110 NASA FY 2013 Agency Financial Report Financials

NASA FY 2013 Agency Financial Report Page 111 Financials

Page 112 NASA FY 2013 Agency Financial Report Financials

NASA FY 2013 Agency Financial Report Page 113 Financials

Page 114 NASA FY 2013 Agency Financial Report Financials

NASA FY 2013 Agency Financial Report Page 115 Financials

Page 116 NASA FY 2013 Agency Financial Report Financials

NASA FY 2013 Agency Financial Report Page 117 Financials

This page has been left blank intentionally.

Page 118 NASA FY 2013 Agency Financial Report Other Information

Office of Inspector General Letter on NASA’s Top Management and Performance Challenges...... 121 FY 2013 Inspector General Act Amendments Report...... 157 Background...... 157 NASA’s Audit Follow-Up Program...... 158 FY 2013 Audit Follow-Up Results...... 160 Improper Payments Information Act (IPIA) Assessment...... 165 Recapture Audit...... 167 Schedule of Spending...... 171 Summary of Financial Statement Audit and Management Assurances...... 173

Image Caption: The Pegasus rocket carrying the Interface Region Imaging Spectrograph (IRIS) satellite ignites its engine. (Credit: NASA)

NASA FY 2013 Agency Financial Report Page 119 This page has been left blank intentionally.

Page 120 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 121 Other Information

Page 122 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 123 Other Information

Page 124 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 125 Other Information

Page 126 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 127 Other Information

Page 128 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 129 Other Information

Page 130 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 131 Other Information

Page 132 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 133 Other Information

Page 134 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 135 Other Information

Page 136 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 137 Other Information

Page 138 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 139 Other Information

Page 140 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 141 Other Information

Page 142 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 143 Other Information

Page 144 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 145 Other Information

Page 146 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 147 Other Information

Page 148 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 149 Other Information

Page 150 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 151 Other Information

Page 152 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 153 Other Information

Page 154 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 155 Other Information

Page 156 NASA FY 2013 Agency Financial Report Other Information

FY 2013 Inspector General Act Amendments Report

NASA FY 2013 Agency Financial Report Page 157 Other Information

Page 158 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 159 Other Information

Page 160 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 161 Other Information

Page 162 NASA FY 2013 Agency Financial Report Other Information

NASA FY 2013 Agency Financial Report Page 163 Other Information

This page has been left blank intentionally.

Page 164 NASA FY 2013 Agency Financial Report Other Information

Improper Payments Information Act (IPIA) Assessment

The National Aeronautics and Space Ad- OMB defines significant improper payments ministration (NASA) is dedicated to reduc- as gross annual improper payments (i.e., ing fraud, waste, and abuse by adequately the total amount of overpayments plus un- reviewing and reporting programs suscep- derpayments) in the program exceeding (1) tible to improper payments in accordance both 2.5 percent of program outlays and with the Office of Management and Budget $10,000,000 of all program or activity pay- (OMB) Circular A-123 Management’s Re- ments made during the fiscal year reported sponsibility for Internal Control, Appendix or (2) $100,000,000 (regardless of the im- C, Requirements for Effective Measurement proper payment percentage of total program and Remediation of Improper Payments. To outlays). improve the integrity of the Federal government’s payments and the efficiency of its NASA’s programs are authorized by law. programs and activities, Congress enact- The annual NASA Planning, Programming, ed the Improper Payments Information Act Budgeting, and Execution process (PPBE) (IPIA) of 2002 (Public Law No. 107-300). results in the development of NASA’s bud- The IPIA contains requirements in the ar- get request to Congress which is considered eas of improper payment identification and part of the President’s budget request. NASA reporting. It requires Agency heads to an- and OMB assure that the budget request is nually review all programs and activities, consistent with NASA’s authorization. The identify those that may be susceptible to sig- NASA budget submission includes a detailed nificant improper payments, estimate annual presentation of the amounts requested by improper payments in susceptible programs account; mission, theme, program, and proj- and activities, and report the results of their ect reporting attribute (PRA). Once NASA’s improper payment activities. annual appropriation is enacted, program codes are established in NASA’s financial On July 22, 2010, the President signed management system of record, and funds into law the Improper Payments Elimina- are distributed to the programs consistent tion and Recovery Act (IPERA; Pub. L. No. with the appropriations. The NASA IPIA 111-204). As amended by IPERA (Section program focuses on programs as defined in II.5.8 Reporting Details), IPIA generally re- NASA’s financial management system. pealed the Recovery Auditing Act (Section 831, Defense Authorization Act, for fiscal NASA has diligently met IPIA program year (FY) 2002; Pub. Law No. 107-107). compliance by executing OMB-compliant Subsequently, OMB issued Memorandum risk assessments, reviewing and updating M-11-16 modifying Circular A-123 Appendix NASA payment process documentation, se- C, Part I and Part II (which was issued in Au- lecting OMB-compliant statistical samples gust 2006 as OMB Memorandum M-06-23). for testing, performing comprehensive test OMB Memorandum M-11-16 requires each procedures, reporting results in the annual Executive branch agency to review all of its Agency Financial Report (AFR) formerly the programs and activities to identify those sus- Performance and Accountability Report, and ceptible to significant improper payments. documenting the IPIA review process and

NASA FY 2013 Agency Financial Report Page 165 Other Information results. This is evidenced by NASA’s ex- programs were susceptible to significant tensive improper payment test results. In FY improper payments during the past three 2012, NASA found no improper payments years. The risk analysis included an evalu- and the NASA Office of Inspector General ation of the following risk factors: disburse- (OIG) concluded that NASA complied with ment materiality (set at $80M), a review and IPERA.1 NASA has reviewed its programs evaluation of recent findings from Govern- annually for seven years and has not identi- ment Accountability Office (GAO) and OIG fied significant improper payments for any of NASA audit reports, and programs with its programs. payments made to private individuals and/ or beneficiaries. NASA’s risk assessment The results of our improper payment reviews strategy is illustrated in the table below titled of disbursements made during FY 2010 – “NASA’s Risk Assessment Strategy.” FY 2012 have demonstrated that no NASA

NASA’s Risk Assessment Strategy

Identify Programs Analyze Risk Prepare Risk Determine Scope Eligible for Conditions Assessment Assessment • Identified 152 dis- • Identified 46 • Evaluated prior • Updated risk as- tinct programs en- programs within year audit reports, sessment report compassing $19.5 assessment scope findings and rec- based on informa- billion in FY 2012 encompassing ommendations tion gathered from disbursements $17.8 billion in FY NASA financial 2012 disburse- • Evaluated pay- management re- • Set materiality ments ments to benefi- ports and inde- level of programs ciaries and private pendent reviews in-scope at >$80 sector individuals million risk conditions • Identified no NASA programs susceptible to a high risk of improper payments

The results of the FY 2013 risk assessment process, along with NASA’s history of positive improper payment testing results, concluded that once again, none of NASA’s programs are susceptible to a risk of significant improper payments.

1 NASA’S Compliance with the Improper Payment Information Act for Fiscal Year 2012 (IG-13-011) http://oig. nasa.gov/audits/reports/FY13/IG-13-011.pdf

Page 166 NASA FY 2013 Agency Financial Report Other Information

Recapture Audit

On July 22, 2010, the President signed into account statement reviews to determine po- law the Improper Payments Elimination and tential recapture amounts such as overpay- Recovery Act (IPERA; Pub. L. No.111-204). ments and credits not taken. All recapture IPERA requires all federal agencies to con- amounts were sent for collection by NASA’s duct payment recapture audits. NASA con- centralized disbursing function following the tinues to perform recapture audits as part US treasury guidelines. All amounts not col- of its overall program to ensure effective in- lected within 90 days were sent to the US ternal control over payments. In FY 2013 treasury and determined uncollectible. This NASA completed recapture audits of FY year, recapture audits for FY 2011 and FY 2011 and FY 2012 disbursements. 2012 disbursements were completed and the results are listed in the table titled “Pay- In accordance with the amended Office of ment Recapture Audit Reporting.” In FY Management and Budget (OMB) Circular 2011 a total of eight (8) recapture amounts A-123, Appendix C guidance, agencies may were identified, of which, five (5) were due determine to exclude classes of contracts to duplicate invoices and three (3) were and contract payments from recapture au- due to credit memorandums not received or dit activities if the Agency determines that not posted. In FY 2012, a total of six (6) the recapture audits are inappropriate or recapture amounts were identified; all of not a cost-effective method for identifying which were due to credit memorandums not and recovering improper payments. NASA posted. There are no systemic problems employs the Defense Contract Audit Agency which caused these overpayments. How- (DCAA) to perform auditing procedures on ever, NASA will remain vigilant in its review cost-type contracts. Performing a separate of internal controls, post-payment audits and recapture audit on these cost-type contracts internal audits. would be duplicative and not cost-effective. In addition, the contractual terms of NASA’s In addition to the Recapture Audit activities cost-type contracts provides for audit access listed above, NASA Centers and the Office only by the DCAA. Increasing audit access of the Inspector General (OIG) may engage would require contract modifications for ex- in other recapture activities which can result isting contracts, which would likely result in in the identification of additional overpay- increased costs. Consequently, NASA does ments. Examples of such activities include not consider it cost-effective to conduct pay- Agency post-payment reviews/audits, single ment recapture audits for cost-type contracts audit and self-reported overpayments. The and does not include cost-type contracts in OIG provided information pertaining to OIG its recapture audits. Audit Number A-12-009-00, “Audit of NASA Grant Awarded to Hudson Alpha Institute for NASA engaged an industry leading consult- Biotechnology,” Report Number IG-12-019, ing firm to perform recapture auditing under a issued on August 3, 2012 which identified an contingency based contract. The recapture FY 2012 overpayment of $44,567 which has audit contractor performed exhaustive data- been recovered. base analyses and comparisons along with

NASA FY 2013 Agency Financial Report Page 167 Other Information PYs) (2012 + $23,147* Amounts Not to be Collectable Cumulative Determined Amounts $24,065** Cumulative Outstanding (2012 + PYs) PYs) (2012 + Amounts $261,432** Recovered Cumulative for PYs) (2012 + Amounts Identified Recovery $285,497** Cumulative PYs) (2010 + $222,081 Amounts Recovered $245,228 Amounts Recovery (2010 + PYs) Identified for 0% % of out of Amount Amount Not to be Identified FY 2011-12 FY Collectable Determined $0 Amount Not to be FY 2011-12 2011-12 FY Collectable Determined 2% out of 2011-12 Amount Outstanding Identified FY Identified FY % of Amount $918 Amount FY 2011-12 FY Outstanding 98% % of out of Amount Amount Identified Recovered FY 2011-12 FY Payment Recapture Audit Reporting Payment Recapture $39,351 Amount Recovered FY 2011-12 FY for $40,269 Amount Identified Recovery FY 2011-12 FY 2011-12 Reported FY Reported FY Reviewed and $7,480,718,409 Actual Amount 2011-12 Reporting FY Reporting FY to Review for $7,480,718,409 Amount Subject Type of Type Contract Payment Fixed Price **Total cumulative amounts began with FY 2004. cumulative amounts began with FY **Total Treasury. considers these four (4) claims totaling $23,147 as uncollectible they have been forwarded to the *NASA

Page 168 NASA FY 2013 Agency Financial Report Other Information

Payment Recapture Audit Targets

CY Recovery Rate (Amount CY + 1 CY + 2 CY + 3 Type of CY Amount CY Amount Recovered/ Recovery Rate Recovery Rate Recovery Rate Payment Identified Recovered Amount Target Target Target Identified) Fixed Price $40,269* $39,351* 98% 98%** 98%** 98%** Contracts

*CY Amount reflects two (2) years; FY 2011 & FY 2012. **Recovery Rate Target is based on the cumulative amounts recovered/cumulative amounts identified, but the target will not be less than 90%. Aging of Outstanding Overpayments

CY Amount Outstanding CY Amount Outstanding CY Amount Outstanding Type of Payment (0-6 months) (6 months to 1 year) (over 1 year)

Fixed Price Contracts $1,009* $0 $0

* Includes penalties and interest.

Disposition of Recaptured Funds

Agency Financial Payment Original Office of Type of Expenses to Management Returned to Recapture Purpose Inspector Payment Administer the Improvement Treasury Auditor Fees General Program Activities Fixed Price $0* $8,775** $0 $39,066 $0 $285 Contracts

*NASA believes these administrative costs to be marginal and currently has not accumulated a cost figure. **Recapture Auditor Fees for FY 2011 & FY 2012 only.

Overpayments Recaptured Outside of Payment Recapture Audits

Cumulative Cumulative Source of Amount Amount Amount Amount Amount Amount Recovery Identified (CY) Recovered (CY) Identified (PY) Recovered (PY) Identified Recovered (CY+PYs) (CY+PYs)

OIG $0 $44,567* $44,567 $0 $44,567 $44,567

*Total amount recovered is $44,567. The amount collected was $34,169 and the remaining amount of $10,398 was offset as an underpayment.

NASA has taken steps through improper centralized which ensures consistent appli- payment reviews and recapture audits to cation of the control environment and reduc- continue holding Agency managers account- tion of improper payment risk. NASA has able for reducing and recovering improper the infrastructure and information technol- payments. The recapture audit process is ogy in place to reduce improper payments. monitored by the Office of the Chief Finan- There are no statutory or regulatory barriers cial Officer to ensure compliance with NA- limiting NASA’s ability to reduce improper SA’s Recapture Audit Guidance. In addition, payments. all collection and disbursement functions are

NASA FY 2013 Agency Financial Report Page 169 Other Information

This page has been left blank intentionally.

Page 170 NASA FY 2013 Agency Financial Report Other Information

Schedule of Spending

The Schedule of Spending (SOS) presents an overview of how and where agencies are spending (obligating) money for the reporting period. The data used to populate the Schedule of Spending is the same underlying data that is used to populate the Statement of Budgetary Resources (SBR). The SOS table presents budgetary data in general terms, but corresponds to amounts shown on the SBR. See table below:

Schedule of Spending Line Item Title Statement of Budgetary Resources Line Item Title Total Resources Total Budgetary Resources Total Amounts Agreed to be Spent Obligations Incurred Total Spending Gross Outlays

USASpending.gov is a federal website de- and direct subsidies. Information from these signed in accordance with the Federal Fund- two systems is also captured by the Agency’s ing Accountability and Transparency Act of Financial System through PRISM, which is 2006. The information for this website is an acquisition management system used by gathered from the Federal Procurement Data agencies government wide. The Agency’s fi- System (FPDS) which contains information nancial system is used to generate the SBR. about Federal Contracts, and the Federal As- NASA conducts a quarterly validation of pro- sistance Awards Data System (FAADS) which curement information reported on USAS- contains information about federal financial pending.gov. assistance such as grants, loans, insurance

(In Millions of Dollars) 2013 2012 Section I: What Money is Available to Spend? Total Resources $ 20,755 $ 21,618 Less Amount Available but Not Agreed to be Spent 903 821 Less Amount Not Available to be Spent 141 112 Total Amounts Agreed to be Spent $ 19,711 $ 20,685

Section II: How was the Money Spent? Space Operations Mission Personnel compensation and benefits $ 342 $ 368 Contractual services and supplies 3,408 4,033 Acquisition of assets 18 31 Grants and fixed charges 19 17 Other 1 5 Total Spending 3,788 4,454 Science Mission Personnel compensation and benefits $ 306 $ 315 Contractual services and supplies 3,489 3,532 Acquisition of assets 54 55 Grants and fixed charges 564 559 Other — 1 Total Spending 4,413 4,462

NASA FY 2013 Agency Financial Report Page 171 Other Information

(In Millions of Dollars) 2013 2012

Section II: How was the Money Spent? (ctd.) Exploration Mission Personnel compensation and benefits $ 435 $ 433 Contractual services and supplies 3,499 3,058 Acquisition of assets 25 23 Grants and fixed charges 69 80 Other — 1 Total Spending 4,028 3,595 Aeronautics Mission Personnel compensation and benefits $ 191 $ 195 Contractual services and supplies 276 303 Acquisition of assets 24 23 Grants and fixed charges 31 27 Other 1 1 Total Spending 523 549 Cross-Agency Mission Personnel compensation and benefits $ 1,192 $ 1,211 Contractual services and supplies 3,719 3,478 Acquisition of assets 87 111 Grants and fixed charges 37 68 Other 36 10 Total Spending 5,071 4,878 Education Mission Personnel compensation and benefits $ 7 $ 7 Contractual services and supplies 20 28 Grants and fixed charges 109 129 Other — — Total Spending 136 164 Office of Inspector General Personnel compensation and benefits $ 30 $ 32 Contractual services and supplies 6 6 Acquisition of assets 1 — Total Spending 37 38 Space Technology Mission Personnel compensation and benefits $ 124 $ 103 Contractual services and supplies 385 124 Acquisition of assets 5 3 Grants and fixed charges 20 2 Total Spending 534 232 Construction and Environmental Compliance and Restoration Personnel compensation and benefits $ 166 $ 160 Contractual services and supplies 207 218 Acquisition of assets — — Total Spending 373 378 Other Personnel compensation and benefits $ 18 $ 19 Contractual services and supplies 939 760 Acquisition of assets 14 29 Grants and fixed charges 2 3 Other (3) 1 Total Spending 970 812 Total Spending $ 19,873 $ 19,562

Section III: Who did the Money go to? Federal $ 1,359 $ 1,319 Non-Federal 18,352 19,366 Total Amounts Agreed to be Spent $ 19,711 $ 20,685

Page 172 NASA FY 2013 Agency Financial Report Other Information

Summary of Financial Statement Audit and Management Assurances

The following tables summarize the Agency’s FY 2013 Financial Statement Audit and Man- agement Assurances. Table 1 summarizes the status of prior year — FY 2012 material weaknesses identified, if any by the Financial Statement Auditor. Table 2 summarizes the status of prior year material weaknesses, if any identified by NASA Management. Table 1: Summary of Financial Statement Audit Audit Opinion Unmodified Restatement No

Beginning Ending Material Weaknesses New Resolved Consolidated Balance Balance None 0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0

Table 2: Summary of Management Assurances Effectiveness of Internal Control over Financial Reporting (FMFIA 2) Statement of Assurance Unqualified

Beginning Ending Material Weaknesses New Resolved Consolidated Reassessed Balance Balance None 0 0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0 0

Effectiveness of Internal Control over Operations (FMFIA 2) Statement of Assurance Unqualified

Beginning Ending Material Weaknesses New Resolved Consolidated Reassessed Balance Balance None 0 0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0 0

Conformance with Financial Management System Requirements (FMFIA 4) Statement of Assurance Systems conform

Beginning Ending Non-Conformances New Resolved Consolidated Reassessed Balance Balance None 0 0 0 0 0 0

Total Non-Conformances 0 0 0 0 0 0

Compliance with Federal Financial Management Improvement Act (FFMIA) Agency Auditor 1. System Requirements No noncompliance noted No noncompliance noted 2. Accounting Standards No noncompliance noted No noncompliance noted 3. USSGL at Transaction Level No noncompliance noted No noncompliance noted

NASA FY 2013 Agency Financial Report Page 173 Other Information

This page has been left blank intentionally.

Page 174 NASA FY 2013 Agency Financial Report NASA’s Voyager 1 Officially the First Human-Made Object to Venture Into Interstellar Space

The 36-year-old probe is about 12 billion miles (19 billion kilometers) from our sun. New and unexpected data indicate Voyager 1 has been traveling for about one year through plasma, or ionized gas, present in the space between stars. A report on the analysis of this new data is published in the journal Science (online September 12, 2013). (Credit: NASA/Carla Cioffi)

Ed Stone, Voyager project scientist, California Suzanne Dodd, Voyager project manager, NASA’s Institute of Technology, holds a model of NASA’s Jet Propulsion Lab holds a replica of the Golden Re- Voyager spacecraft at a news conference at cord carried on Voyager. It was intended to communi- NASA Headquarters in Washington. cate a story of our world to extraterrestrials. NASA Headquarters Washington DC, 20546