FY 2025 Agency Financial Report

December 31, 2025

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HOW THIS REPORT IS ORGANIZED

The Fiscal Year 2025 Agency Financial Report (AFR) describes the financial management of the U.S. Equal Employment Opportunity Commission (the EEOC or agency) and provides high-level performance information, including management challenges. Pursuant to guidance from the Office of Management and Budget (OMB), the AFR is organized into the following major sections:

• Management's Discussion and Analysis (MD&A): The MD&A provides an overview of the EEOC's performance and financial information. The MD&A highlights our strategic objectives and our accomplishments in achieving our mission. This section also highlights the agency's financial results and provides management's assurances on the agency's internal controls.
• Financial Section: This section outlines our efforts to be good stewards over the funds the agency receives to carry out its mission, including an independent auditor's opinion on the agency's financial statements.
• Other Information: This section includes the Inspector General's Statement on Management Challenges, the agency's progress and plans to address them, and summary tables related to our Financial Statement Audit and Management Assurances.
• Appendices: Contain information on the EEOC's organization, jurisdiction, leadership, and revolving fund, as well as a glossary of the acronyms used in the report.
  

TABLE OF CONTENTS

A Message from the Chair

Management's Discussion and Analysis

Mission, Major Programs, and Organizational Structure

Agency Overview

Statutory Structure

Organization

Performance Goals, Objectives, and Results

EEOC's Performance Measurement Process

Overview of the Strategic Plan Objectives, Goals, and Performance Measures

Verification and Validation of Data

Strategic Goals and Performance Results Summary

Performance Results

Looking Forward

Financial Highlights

Analysis of Systems, Controls, and Legal Compliance

Management Assurances

Legal Compliance

Financial Section

Letter from the Inspector General Transmitting Audit

Independent Auditor's Report

Equal Employment Opportunity Commission Balance Sheet

Equal Employment Opportunity Commission Statement of Net Cost

Equal Employment Opportunity Commission Statements of Changes in Net Position

Equal Employment Opportunity Commission Statements of Budgetary Resources

Notes to the Financial Statements

Other Information

Summary of Financial Statement Audit and Management Assurances

Inspector General's Statement

Payment Integrity

Recapture of Improper Payments

Fraud Reduction Report

Civil Monetary Penalty Adjustments for Inflation

Appendices

Appendix A: Organization and Laws Enforced

Appendix B: EEOC Offices

Appendix C: Biographies of the Chair and Commissioners

Appendix D: Glossary of Acronyms

Appendix E: Internet Links

Appendix F: Revolving Fund

Appendix G: Acknowledgments

We Welcome Your Comments

MESSAGE FROM THE CHAIR

I am pleased to present the U.S. Equal Employment Opportunity Commission's (EEOC) Agency Financial Report (AFR) for fiscal year 2025. President Trump, through his series of landmark civil rights executive orders, has given the EEOC the most ambitious civil rights agenda in decades. It is an honor to lead the agency as we work to achieve that agenda and restore evenhanded enforcement of civil rights laws on behalf of all Americans.

The EEOC was created by Congress as part of the 1964 Civil Rights Act and chartered with a straightforward and critical mission: to prevent and remedy discrimination in our nation's workplaces. For 60 years, the Commission has carried out this vital responsibility with the knowledge that it stems from our nation's foundational principles-that all people are inherently created equal and that all citizens are entitled to equal treatment under the law. The vision at the heart of the American founding was the recognition of each individual's inalienable rights and inherent worth, not determined by background or social status.

In recent years, a range of movements and institutions have worked aggressively to erode America's core principles, seeking to replace them with ideologies that prioritize group identity over individual freedom. These efforts promote "equity" in outcomes rather than equality of opportunity, bending civil rights laws to advantage certain groups while sidelining others and discarding the principle of fair and evenhanded enforcement. Some advocates even justify present or future discrimination as not only acceptable but as a so-called remedy for past injustices. Such ideas have spread through our nation's institutions-from universities to corporate boardrooms to the halls of Congress-where they have grown increasingly entrenched and have driven employers to embrace unlawful practices, including quota-based DEI initiatives, sex-based favoritism, and hostility toward religious expression.

Throughout the first year of the second Trump Administration, the EEOC has demonstrated that it is both capable and resolute in repelling these assaults on our nation's core principles. Under my leadership, the Commission has undertaken comprehensive efforts to realign with its founding mission, restore dignity to the American worker, and mobilize every available resource to ensure that America's workforce can once again thrive under the protection of a government steadfast in its duty to eliminate the discriminatory practices we have uncovered across both the private and public sectors.

As this report demonstrates, under my leadership, the EEOC has utilized its resources to root out unlawful race and sex discrimination arising from or related to DEI programs, policies, and practices; protect American workers from unlawful national origin bias that places foreign hires ahead of citizens; safeguard women's sex-based rights at work; and defend religious liberty by addressing unlawful bias against people of faith. I am pleased to present in detail the notable wins the EEOC has achieved for the American people, including landmark settlements to end unlawful DEI programs and antisemitism in our nation's elite institutions. At the same time, the Commission also modernized its operations by adopting new technologies, improving internal processes, and refining its structure to ensure the agency remains effective, efficient, and fully committed to serving all Americans.

The EEOC has once again received an unmodified opinion from an independent audit of our financial statements. As required by the Federal Managers Financial Integrity Act (FMFIA), the AFR provides reasonable assurances about the agency's internal controls. Moreover, the financial data and performance results provided in the AFR are reliable and complete.

Under my leadership, the EEOC remains committed to ensuring equal opportunity, merit, and colorblind equality for all of America's workers, and advancing the Trump Administration's critical civil rights agenda.

Sincerely,

Andrea R. Lucas

Chair

U.S. Equal Employment Opportunity Commission

MANAGEMENT'S DISCUSSION & ANALYSIS

The U.S. Equal Employment Opportunity Commission's (EEOC or agency) Agency Financial Report (AFR) provides financial information and an overview of programs, accomplishments, and challenges that enable the President, Congress, and the American people to assess the EEOC's performance and accountability for the resources entrusted to it for the fiscal year (October 1 through September 30). The report is prepared in accordance with the requirements of OMB Circular No. A-136, Financial Reporting Requirements.

The EEOC publishes its AFR with a primary focus on financial results and a high-level discussion of performance results. The agency's combined Annual Performance Plan (APP) and Annual Performance Report (APR) details strategic goals, performance results, and planned performance. The combined APP and APR will be available in 2026 on the EEOC's website at: https://www.eeoc.gov/budget-and-performance.

MISSION, MAJOR PROGRAMS, AND ORGANIZATIONAL STRUCTURE

• MISSION: Prevent and remedy unlawful employment discrimination and advance equal employment opportunity for all.

AGENCY OVERVIEW

Title VII of the Civil Rights Act of 1964 (Title VII) created the EEOC to enforce protections against employment discrimination on the bases of race, color, religion, sex, and national origin. Congress subsequently vested the EEOC with responsibility to enforce the Equal Pay Act of 1963 (EPA), the Age Discrimination in Employment Act of 1967 (ADEA), Sections 501 and 505 of the Rehabilitation Act of 1973, Titles I and V of the Americans with Disabilities Act of 1990 (ADA), the Government Employee Rights Act of 1991 (GERA), Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA), and the Pregnant Workers Fairness Act of 2022 (PWFA). In addition, in 1972, Congress further expanded the agency's responsibilities by providing federal government employees the protections of Title VII and providing the EEOC with independent litigation authority against private employers.

STATUTORY STRUCTURE

The EEOC is led by six Senate-confirmed presidential appointees - five Commissioners (including the Chair and Vice Chair) who serve staggered five-year terms and the General Counsel. No more than three Commissioners (including the Chair and Vice Chair) may be from the same political party. The Chair is responsible for the administration and implementation of policy, the enforcement program, financial management, and day-to-day operations of the Commission. The five Commissioners participate in the development and approval of Commission policies, issue charges of discrimination where appropriate, and authorize the filing of lawsuits. The General Counsel supports the Commission and provides direction, coordination, and supervision to the EEOC's litigation program.

*From February 3, 2025 through the rest of FY 2025, Andrew Rogers served as EEOC's Acting General Counsel.

Organization

The EEOC accomplishes its mission through component offices that administer various programs. For more information about specific EEOC offices, please see Appendix A.

These programs are carried out through a network of 53 district, field, area, and local offices. For more information about the EEOC offices across the nation, please see Appendix B.

PERFORMANCE GOALS, OBJECTIVES, AND RESULTS

EEOC's PERFORMANCE MEASUREMENT PROCESS

The Government Performance and Results Modernization Act of 2010 (5 U.S.C. 306, as amended) requires executive departments, government corporations, and independent agencies to develop and post a Strategic Plan on their public websites every four fiscal years. The implementing guidance in Circular No. A-11 from OMB instructs agencies on the necessary elements required in an agency's strategic plan and the requirements to publish a new strategic plan with the beginning of each new term of an administration. The U.S. Equal Employment Opportunity Commission Strategic Plan for Fiscal Years 2022-2026 (Strategic Plan or Plan) established three overarching strategic goals and fifteen performance measures to gauge the agency's progress in meeting these goals. The EEOC conducts periodic performance measure reviews to evaluate the agency's progress.

The EEOC reports on performance measures each year. In the agency's combined APP and APR, the EEOC reports on progress achieving the goals and objectives in the agency's Strategic Plan, along with performance and program results achieved for the previous fiscal year. It also identifies the level of planned performance to achieve in the current and following fiscal year, along with performance goals and key milestones that align with the EEOC's Strategic Plan and agency priorities. The combined APP and APR will be published in 2026 in coordination with the agency's Congressional Budget Justification.

OVERVIEW OF THE STRATEGIC PLAN GOALS, OBJECTIVES, AND PERFORMANCE MEASURES

In accordance with the Government Performance and Results Modernization Act of 2010, the Commission approved the EEOC's Strategic Plan on August 16, 2023. To do so, the agency engaged in a comprehensive assessment of its programs and priorities. Under this Strategic Plan, the EEOC focuses on three strategic goals to achieve its critical mission.

Strategic Goal I, to combat and prevent employment discrimination through strategic application of the EEOC's law enforcement authorities, reflects the EEOC's primary mission of preventing and remedying unlawful employment discrimination and advancing equal employment opportunity for all. Congress entrusted the EEOC with two mechanisms to accomplish its mission across private and public employers: 1) the administrative (investigation and conciliation) and litigation enforcement mechanisms applicable to private employers, labor organizations, employment agencies, and state and local government employers; and 2) the adjudicatory and oversight mechanisms for federal employers.

Strategic Goal I includes seven performance measures:

Strategic Goal II, to prevent employment discrimination and advance equal employment opportunities through education and outreach, reflects the EEOC's obligation to deter employment discrimination before it occurs. Educational and outreach programs, projects, and events are also cost-effective law enforcement tools because they promote understanding of the law and voluntary compliance. All parties benefit when the workplace is free of discrimination, and everyone has access to equal employment opportunity.

Strategic Goal II includes four performance measures:

Strategic Goal III, achieving organizational excellence, seeks to improve management functions with a focus on people, service to the public, information technology, infrastructure enhancement, and accountable financial stewardship. These areas are cross-cutting and require integration and coordination to promote organizational excellence from internal and external perspectives.

Strategic Goal III includes four performance measures:

The agency's progress on the strategic goals, objectives, and related performance measures is discussed below.

VERIFICATION AND VALIDATION OF DATA

The agency's private sector, federal sector, and litigation programs require accurate enforcement data, as well as reliable financial and human resources information, to assess the EEOC's operations and performance results and make sound management decisions. The EEOC systematically reviews the information collected in its databases for accuracy by using statistical software (e.g., SAS, Power BI, etc.) and program reviews of a sample of records during field office technical assistance visits. Additionally, headquarters offices regularly conduct analyses to review the information collected to identify erroneous entries requiring correction to collection procedures.

The transition from the agency's legacy Integrated Mission System (IMS) application to the modernized Agency Records Center (ARC) system continues to improve the collection and validation of the EEOC's program data related to charge intake, investigation, mediation, conciliation, and Fair Employment Practices Agencies (FEPA) functions - migrating away from manual activity-based data entry to automated event-driven recordation and permitting automated data sharing with FEPAs. During these modernization efforts, the EEOC has identified many areas where the agency will be able to further automate and improve current processes and related data integrity. Several performance measures require efficiently accessing data to assess agency achievements, and the EEOC will continue to improve its capabilities to obtain reliable data and assess it for management purposes.

The EEOC's Office of Inspector General (OIG) regularly reviews the agency's data validity and verification procedures, information systems, and databases and offers recommendations for corrective action or improvement. The agency uses the OIG's information and recommendations to continually improve the reliability and validity of EEOC's systems and data.

STRATEGIC GOALS AND PERFORMANCE RESULTS SUMMARY

As discussed above, the EEOC's Strategic Plan established a national framework to achieve the agency's mission by pursuing three strategic goals and their underlying objectives. The Strategic Plan also identified strategies for achieving each strategic objective and identified 15 performance measures for gauging the EEOC's progress for fiscal year 2025.

The chart below summarizes the agency's progress in meeting the performance measures for fiscal year 2025.

PERFORMANCE RESULTS

Rooting out unlawful race and sex discrimination arising from or related to DEI programs, policies, and practices.

Under Chair Andrea Lucas' leadership, in fiscal year 2025, the agency worked to restore evenhanded enforcement of employment civil rights laws for all Americans, including by rooting out unlawful race and sex discrimination arising from or related to Diversity, Equity, and Inclusion (DEI) programs, policies, and practices. Title VII prohibits employment discrimination based on race and sex, among other protected characteristics. Under Title VII, DEI initiatives, policies, programs, or practices may be unlawful if they involve an employer or other covered entity taking an employment action motivated-in whole or in part-by an employee's or applicant's race, sex, or another protected characteristic. During this past fiscal year, the agency effectively used its resources to challenge unlawful race and sex discrimination wherever it arose.

For example, in April 2025, the EEOC rooted out DEI-related discrimination practices in our nation's elite law firms, securing major commitments to merit-based employment practices in EEOC settlements with six of the nation's largest law firms, and unveiled comprehensive resource materials to help workers and employers understand, identify, and report DEI-related race and sex discrimination. The agency also investigated DEI-related discriminatory practices, including a school district that subjected a class of white applicants and employees to discrimination, in violation of Title VII, because only "teachers of color" were eligible for a financial incentive intended to recruit and retain teachers of color.

Protecting American workers from unlawful national origin discrimination involving preferences for foreign workers.

During fiscal year 2025, the EEOC vigorously enforced Title VII's prohibition on national origin discrimination, including combating the practice of illegally preferring non-American workers. Chair Lucas led the agency in prioritizing enforcement against unlawful national origin discrimination against American workers in favor of foreign workers, in cooperation with the Department of Homeland Security, the Department of Labor, and the Department of Justice. As part of this work, the EEOC utilized its resources to prevent and remedy unlawful "foreign preference" national origin discrimination cases. For example, following a systemic investigation that resulted in an EEOC lawsuit, the EEOC secured $1.4 million through a consent decree in a foreign-preference national origin discrimination lawsuit under Title VII against LeoPalace, a major hotel and resort in Guam, for affected non-Japanese employees, including multiple former employees of American national origin.

Defending women's sex-based rights at work.

Under Chair Andrea Lucas' leadership, in fiscal year 2025, the agency returned to its mission of protecting women from sexual harassment and sex-based discrimination in the workplace, including by ensuring access to single-sex workplace facilities for women. During fiscal year 2025, the agency utilized its resources to defend women's sex-based rights at work, including:

• Securing $6.7 million dollars and significant injunctive relief to resolve a nationwide Title VII (female, including pregnancy), EPA, and ADEA investigation that found the respondent subjected almost 120 female employees to disparate terms and conditions, including lower wages and denied promotions, a hostile work environment, and retaliatory discharge for complaining about discriminatory treatment.
• Securing $1.2 million and significant injunctive relief to successfully conciliate a systemic investigation for the charging party and a class of Hispanic employees after the EEOC's investigation found several male supervisors subjected female employees to harassment and sexual harassment based on gender and national origin over a multi-year period.

When attempts to informally resolve investigations involving women's sex-based rights at work were unsuccessful, the agency filed and resolved lawsuits to protect these workers. During fiscal year 2025, the EEOC resolved numerous lawsuits involving sex-based rights at work under Title VII, the Pregnant Workers Fairness Act (PWFA), and the Equal Pay Act, including:

• Securing $3.1 million via a consent decree in a pattern-or-practice sex discrimination lawsuit under Title VII against Waste Industries U.S.A., LLC, et al., providers of solid waste removal, recycling pickup and landfill operation services, for a class of qualified female applicants that the suit alleged were denied truck driver positions based on their sex in favor of less qualified male applicants.
• Securing more than $2 million in a jury verdict in a Title VII sexual harassment lawsuit against SkyWest, a Utah-based airline, reduced to the maximum $300,000 by statutory cap, for a female parts clerk that the suit alleged was subjected to extremely crude sexual comments by multiple male coworkers and at least one manager, including a suggestion that she should make money via prostitution, requests that she perform demeaning sex acts, and frequent jokes and remarks about rape and rape victims.
• Securing $1.6 million via a consent decree in a Title VII systemic, pattern-or-practice sex discrimination lawsuit against Security Engineers, Inc., a contract security solutions provider throughout Alabama, for a class of women that the suit alleged were denied security officer employment opportunities notwithstanding their security, law enforcement, or military experience, based on discriminatory directives not to select or schedule females for security positions or assignments.
• Securing over $1.4 million via a consent decree in a systemic Title VII lawsuit against Kane's Furniture, LLC, a retail company, for a class of women that the suit alleged were subjected to a pattern or practice of not hiring female applicants for driver and warehouse positions, as well as recruiters expressly screening women out of the hiring process for positions in numerous departments.

Supporting religious liberty by protecting workers from religious bias and harassment and protecting their rights to religious accommodations at work.

The EEOC is committed to vigorously enforcing prohibitions against religious discrimination in the workplace. Robust EEOC enforcement actions during the second Trump Administration have delivered significant victories for Americans of all faiths and reflect the agency's strong, ongoing commitment to upholding religious liberty protections for workers. The agency also continues to provide training and technical assistance to educate stakeholders about protecting workers from religious bias and harassment and protecting workers' rights to religious accommodations at work.

As described in more detail below, during fiscal year 2025, the agency dedicated its resources to defend the religious liberty of American workers, including through addressing rising antisemitism in higher education, unlawful Covid-19 vaccine mandates, and religious accommodations in general.

Rising Antisemitism in Higher Education

During fiscal year 2025, Chair Andrea Lucas held accountable universities and colleges that created unlawful hostile-work environments for their Jewish employees. As part of this effort, the agency published multiple resources for employees and employers about addressing antisemitism at work, including an EEOC Fact Sheet: What To Do If You Face Antisemitism at Work. Chair Lucas also actively participated in the Task Force to Eradicate Anti-Christian Bias in the federal government, established under Executive Order 14202. This executive order, titled "Eradicating Anti-Christian Bias" supports the EEOC's mission to prevent and remedy religion-based discrimination in the workplace.

In a landmark resolution, Columbia University agreed to pay $21 million to settle EEOC charges-including a Commissioner's Charge brought by then-Commissioner Andrea Lucas- alleging that since at least Oct. 7, 2023, the university engaged in harassment based on national origin, religion, and/or race, in violation of Title VII of the Civil Rights Act of 1964, as amended. This is the largest EEOC employment discrimination resolution publicly announced in nearly 20 years; the agency's largest ever for victims of antisemitism; the most significant religious discrimination EEOC settlement for workers of any faith; and is part of a historic multi-agency settlement achieved by the Trump Administration.

Unlawful Covid-19 Vaccine Mandates

During fiscal year 2025, the EEOC used its resources to remedy the widespread civil rights harms that resulted from employers' unlawful COVID-19 vaccine mandates, including:

• Securing $2.8 million to resolve a systemic investigation against UT-Battelle after finding the employer violated Title VII by failing to provide an exemption or accommodation to employees who were required to take the COVID-19 vaccine in conflict with their religious beliefs. The two-year conciliation agreement included back pay and compensatory damages to the aggrieved individuals, and significant equitable relief.
• Securing over $1.74 million and significant injunctive relief to resolve an investigation for 20 individuals after finding the employer violated Title VII by failing to provide a religious accommodation to the COVID-19 vaccine requirement.
• Securing over $1 million to resolve a class-wide investigation via conciliation against Mercyhealth after finding reasonable cause to believe that the healthcare system failed to grant its employees religious accommodations to the employer's vaccine mandate, instead terminating employees or withholding pay. In addition to recovering substantial monetary compensation for a class of employees, the EEOC also secured an important commitment that Mercyhealth would offer to reinstate employees terminated for refusing to comply with the organization's COVID-19 vaccine policy, provide back pay and compensatory damages to the aggrieved individuals, and significant equitable relief.

The EEOC also vindicated Federal employees' right to reasonable accommodation from COVID-19 vaccine mandates. In Andy B. v. Fed. Reserve Board (8/4/25), Appeal No. 2023002014, the EEOC held the Agency violated Title VII by denying complainant a religious accommodation with respect to his request for an exemption from the Agency's COVID-19 vaccine mandate. After denial of his request, complainant was placed on administrative leave and provided a few weeks to comply with the mandate or be terminated. Complainant remained unvaccinated and was terminated. The EEOC found that his termination was a Title VII violation and that Complainant was subjected to harassment based on his religion.

Religious Accommodation

The EEOC vigorously enforced Title VII's requirement to provide employees with religious accommodation for their sincerely held religious beliefs and practices. The agency protected workers of all faiths in their right to be free from discrimination in the workplace, including:

• Securing $850,000 and significant policy changes via a consent decree in a Title VII lawsuit against companies doing business as the Venetian Resort, a hotel and casino resort on the Las Vegas strip, for a class of employees of various faiths that the suit alleged were denied reasonable accommodation of sincerely held religious beliefs absent undue hardship and retaliated against for opposing the religious discrimination.
• Securing $181,000, and significant injunctive relief, to successfully conciliate an investigation after finding the employer violated Title VII when it failed to provide the charging party and six class members a religious accommodation when they sought exemption from respondent's mandatory flu vaccine policy and instead terminated their employment.

Incorporating technological advances and improving operational processes to ensure the EEOC operates with the greatest possible efficiency and effectiveness.

In fiscal year 2025, the agency focused on improving efficiency and effectiveness in every area of its operations. By prioritizing resources to adopt advanced technology to improve operations, the agency was able to ensure it is operating as efficiently as possible and effectively serving America's workers.

Improved Technology for EEOC's Enforcement Processes

1. Intake Appointment Scheduling System

The EEOC receives about 270,000 inquiries annually, which result in approximately 90,000 new charges of employment discrimination. Intake appointment scheduling and interviews with potential charging parties (PCPs) are critical components in the charge filing process. In fiscal year 2025, the EEOC successfully modernized its intake appointment scheduling system, replacing a legacy tool that had become a barrier to accessibility, security, and operational agility. The outdated system lacked Section 508 compliance, required manual workarounds, and could not support the agency's evolving digital needs. As part of this process, the agency evaluated and implemented a commercial off-the-shelf (COTS) solution that met modern standards.

The new scheduler platform, EEOC Scheduler, deployed nationwide in June 2025, supports mobile and multilingual access, integrates with Microsoft 365 Outlook and Teams, and enables video conferencing and centralized calendar management. This modernization simplified the management of appointments. PCPs can now manage, cancel, or reschedule their appointments easily, while intake supervisors can better oversee appointments and staffing, reducing the need for extensive email traffic.

Moreover, the EEOC Scheduler uses EEOC single sign-on with Microsoft Entra Identity and Multi-Factor Authentication, ensuring a more secure and streamlined user experience and integrates with the agency's charge management system for streamlined charge assignment and appointment scheduling, reducing the need for cancellations or rescheduling. This new system handles time zones effectively, supports district-wide and agency-wide reporting and resourcing, and is built on user-centered design principles to enhance ease of use for both staff and PCPs.

This modernization effort demonstrates how the agency is targeting technology investments to reduce administrative burden, enhance service delivery, and align with the EEOC's broader digital transformation goals. The EEOC scheduler is a model for how the agency is modernizing legacy systems to improve both internal workflows and public-facing services.

2. Improved Communication with Charging Parties and Class Members

During fiscal year 2025, the agency adopted a texting platform that transformed how EEOC communicates with potential class members and witnesses during investigations and litigation. By automating outreach and reminders, the agency significantly reduced manual follow-up, improved response rates, and cut administrative time. The shift from mailed letters to digital messaging also lowered postage and copying costs, particularly in systemic cases. Most importantly, texting proved to be a more reliable way to reach claimants-especially those with limited access to traditional mail or email.

The agency also expanded its use of technology to streamline information gathering from class members and witnesses during litigation as well as during investigations, in coordination with the agency's national systemic program. These expanded survey tools reduced the need for time-consuming interviews and manual data entry, accelerating case timelines and freeing up staff resources. The result was faster fact development and class member identification, stronger response rates, and measurable cost savings in enforcement and outreach, particularly in systemic cases.

3. Infrastructure Upgrades

In a major infrastructure upgrade, EEOC successfully migrated over 30 active litigation databases from on-premises Relativity to the cloud-based RelOne platform. The in-house Litigation Support team led the entire transition-avoiding vendor costs while improving system performance, data security, and cross-district collaboration. The agency will complete the migration of all cases over the next few months. The move will eliminate local server maintenance, delivering long-term savings in both litigation support and IT operations.

Enhancing Workplace Readiness and Connectivity

In fiscal year 2025, the EEOC successfully executed a coordinated Return to Office (RTO) strategy that prioritized both employee readiness and infrastructure modernization. As part of this initiative, the agency implemented a scalable Guest Wi-Fi solution across all field and headquarters locations. This upgrade addressed longstanding connectivity gaps for visitors and contractors, enabling seamless access to internet services without compromising internal network security. As a byproduct, it also provided needed augmentation to existing office internet services.

Enhancing internet performance through design changes utilizing the existing Guest Wi-Fi was synchronized with broader RTO planning, which included workspace reconfiguration, updated occupancy protocols, and enhanced support for collaboration tools. The solution leveraged existing network infrastructure and cloud-based authentication to minimize cost and deployment time, while ensuring compliance with federal cybersecurity standards.

Together, these efforts not only improved the in-office experience for employees and customers but also demonstrated the agency's commitment to modern, flexible, and secure workplace operations. The initiative stands as a model for how the agency is targeting IT investments to support mission continuity.

Streamlining Organizations to Enhance Service Delivery

During fiscal year 2025, the agency established the eDiscovery & Information Governance Division within the Office of General Counsel to centralize and elevate the agency's litigation technology strategy. This reorganization reflects a deliberate shift toward a more agile, expert-driven model for managing complex data, digital evidence, and legal technology. By consolidating leadership, technical expertise, and strategic planning under one division, the agency is better positioned to respond to evolving litigation demands, accelerate innovation, and reduce reliance on external vendors. The new structure will ensure coordination across districts, improve consistency in eDiscovery practices, and ensure that the agency remains at the forefront of legal technology and information governance.

LOOKING FORWARD

In fiscal year 2026 and beyond, the EEOC will continue to adopt leading technologies to improve services, enhance data access and transparency, modernize digital systems, and implement resilient network infrastructure and data analytics for better decision-making. Additionally, the agency will accelerate the use of Artificial Intelligence (AI) in strategic areas to drive operational efficiencies and improve service delivery to the public.

This work includes a multi-year initiative to modernize the EEOC's decade-old public-facing portals. In fiscal year 2026, the EEOC will enhance its intake process for stakeholders to boost efficiency in private sector intake and charge receipt. The new solution will deliver a guided, rule-based intake experience that improves pre-qualification accuracy, captures structured case-ready data, and reduces misrouted inquiries. This process will streamline EEOC operations, improve the public experience, and establish a foundation for continued modernization of the public facing portals. The agency will introduce a dynamic pre-charge inquiry form integrated with the agency's charge database, replacing outdated intake forms and manual interviews. This update will address high staff workload, inconsistent triage, and limited accessibility and language support.

In fiscal year 2026, the EEOC plans to procure and implement a legal research AI tool to enhance the speed, accuracy, and consistency of legal analysis across the agency. This tool will support attorneys by rapidly surfacing relevant case law, statutes, and agency guidance, significantly reducing the time spent on manual legal research. Once deployed, the platform will bring EEOC's research capabilities in line with those used by top law firms, while also supporting more timely and informed decision-making in complex litigation and policy matters. Building on fiscal year 2025 momentum, we also plan to deepen our use of digital tools-including texting platforms, survey technologies, and AI-powered legal applications-to streamline communication with class members and witnesses, accelerate fact development, and reduce reliance on external vendors.

The EEOC is also exploring the procurement of a modern legal document management system with embedded AI capabilities to enhance how legal teams organize, retrieve, and collaborate on case materials. This system will not only bring EEOC's document workflows in line with those used by top law firms but will also strengthen compliance with the Federal Records Act by improving records lifecycle management, auditability, and retention practices. EEOC will also procure and deploy an AI tool that enables comprehensive search and summarization of transcripts-particularly valuable in systemic cases where large volumes of testimony must be reviewed quickly and accurately to support timely enforcement decisions.

In addition, the EEOC's Wide Area Network (WAN) Modernization Project in fiscal year 2026 promises transformative improvements in network performance, cost efficiency, and security compliance. By transitioning from the GSA Enterprise Infrastructure Solutions contract to a commercial telecom wholesale vendor model, the agency expects to reduce annual costs by up to 20% and simplify administrative processes. Key features include dual top-tier Internet Service Providers per site, Software Defined-WAN technology for optimized traffic routing, and Dedicated Internet Access circuits for improved internet access.

In fiscal year 2026, the EEOC will also prioritize digital modernization by expanding the Intelligent Reporting Database (IRD), automating data classification, and implementing Zero Trust security. Efforts include improving data cataloging, taxonomy for better discoverability, governance, and getting data AI ready.

FINANCIAL HIGHLIGHTS

The EEOC used OMB Circular Number A-136 Revised, dated July 14, 2025, as guidance to prepare the accompanying financial statements. The EEOC prepares four financial statements: Balance Sheet, Statement of Net Cost, Statement of Changes in Net Position, and the Statement of Budgetary Resources.

Balance Sheet

The Balance Sheet presents amounts of assets owned or managed by the EEOC, liabilities owed, and the net position of the agency, divided between the cumulative results of operations and unexpended appropriations.

The EEOC held total assets of $98 million at the end of fiscal year 2025 and owed liabilities of $72 million.

The EEOC's Net Position at the end of fiscal year 2025, i.e., the difference between assets owned and liabilities owed, was $26 million. This amount also equals the sum of Unexpended Appropriations and the Cumulative Results of Operations, reflected in the agency's Statement of Changes in Net Position.

Statement of Net Cost

The Statement of Net Cost presents the gross cost incurred by all programs less any revenue earned. Overall, in fiscal year 2025, the EEOC's Net Cost of Operations was $486 million.

Statement of Changes in Net Position

The Consolidated Statement of Changes in Net Position represents the change in the net position for fiscal year 2025 resulting from appropriations received receipt of some costs financed by other government agencies, less the cost of agency operations. The Statement of Changes in Net Position is $26 million for fiscal year 2025.

Statement of Budgetary Resources

The Statement of Budgetary Resources presents information about the budgetary resources available to the agency, the year-end status of the resources, and the outlays of resources for the year ending September 30, 2025. In fiscal year 2025, the EEOC received $455 million in budget authority. The EEOC ended fiscal year 2025 with $488 million in total budgetary resources. Resources not available for new obligations at the end of fiscal year 2025 totaled $25 million. This unobligated balance represents expired budget authority from prior years that is no longer available for new obligations.

Use of Resources

The pie chart below displays the EEOC's fiscal year 2025 use of resources by major object class. The chart below shows actual costs incurred by the EEOC. It does not include costs incurred by others on behalf of the EEOC. Pay and Benefits, State & Local (i.e., payments to state and local Fair Employment Practices Agencies), Rental Payments to GSA, and Other Contractual Services consumed 97% of the EEOC's resources. Other expenses, including communication, utilities & miscellaneous charges, travel & transportation, supplies & materials, and equipment, consumed 3% of the EEOC's resources for fiscal year 2025.

The dual axis chart below depicts the EEOC's compensation and benefits versus full-time equivalents (FTE) over the past six years. The EEOC ended fiscal year 2025 with 2,027 FTEs, a net decrease of 220, or 10%, below the end of fiscal year 2024.

*FY 2025 drop in FTE is the result of the DRP program staff who were paid through 30 September.

Limitations of the Financial Statements

The principal financial statements are prepared to report the financial position, financial condition, and results of operations of the agency, pursuant to the requirements of 31 U.S.C. § 3515(b). The statements are prepared from records of the agency in accordance with federal generally accepted accounting principles (GAAP) and in the formats prescribed by OMB. Reports used to monitor and control budgetary resources are prepared from the same records. Users of the statements are advised that the statements are for a component of the U.S. government.

ANALYSIS OF SYSTEMS, CONTROLS, AND LEGAL COMPLIANCE

MANAGEMENT ASSURANCES

December 31, 2025

FEDERAL MANAGERS' FINANCIAL INTEGRITY ACT (FMFIA)

The U.S. Equal Employment Opportunity Commission's (EEOC) internal controls and financial management systems were sound during fiscal year 2025. Based on the actions taken, and considering the agency's controls environment as a whole, the agency concludes that during fiscal year 2025, its financial and internal controls systems were in compliance with the Federal Managers' Financial Integrity Act (FMFIA). The controls systems were effective; agency resources were used consistent with the EEOC's mission and in compliance with applicable laws and regulations; and there was minimal potential for waste, fraud, and mismanagement of the resources.

Out of 14 total financial non-conformances reported, 5 were not fully corrected during fiscal year 2025. These financial non-conformances were identified in several audit reports prepared by the OIG: 1) Harper, Rains, Knight & Company (HRK) for OIG: Management Letter Report for the Audit of the EEOC's FY 2024 Financial Statements (OIG Report No. 2024-003-AOIG), November 21, 2024; 2) EEOC Office of Inspector General: FY2023 Annual Report on EEOC's Compliance with the Payment Integrity Information Act of 2019 (PIIA) (OIG Report No. 2024-001-EOIG), May 29, 2024; 3) Harper, Rains, Knight & Company (HRK) for OIG: Audit of the EEOC FY 2023, and 2022 Financial Statement (OIG Report No. 2023-001-AOIG) November 15, 2023; 4) EEOC Office of Inspector General: FY 2021 Annual Report on EEOC's Compliance with the Payment Integrity Information Act of 2019 (PIIA) (OIG Report No. 2022-001-IOIG) July 11, 2022; 5) Harper, Rains, Knight & Company (HRK) for OIG: Performance Audit Report on the EEOC Charge Card Program FYRs 2019 and 2020 (OIG Report No. 2020-004-AOIG), March 24, 2021; 6) Harper, Rains, Knight & Company (HRK) for OIG: Transmittal of Management Letter Report for FY 2020 Financial Statement Audit (OIG Report No. 2020-002-AOIG), December 16, 2020; 7) Harper, Rains, Knight & Company (HRK) for OIG: Performance Audit Report on the EEOC Charge Card Program FYRs 2018 and 2017 (OIG Report No. 2018-007-AOIG), May 31, 2019. The agency will continue its work to resolve these matters during FY 2026.

The EEOC's management is also responsible for establishing and maintaining effective internal control over financial reporting, which includes the safeguarding of assets and compliance with applicable laws and regulations. The EEOC conducted its assessment of the effectiveness of the agency's internal control over financial reporting in accordance with OMB Circular No. A-123, Management's Responsibility for Enterprise Risk Management and Internal Control. Based on the results of this evaluation, the EEOC can provide reasonable assurance that internal control over financial reporting, as of September 30, 2025, was operating effectively and no material weaknesses were found in the design or operation of the agency's internal control over financial reporting.

Andrea R. Lucas

LEGAL COMPLIANCE

The EEOC maintained controls for and compliance with the Anti-Deficiency Act, the Debt Collection Act of 1996, as amended, the Prompt Payment Act, Federal Information Security Modernization Act of 2014, Pay and Allowance System for Civilian Employees, the Government Charge Card Abuse Prevention Act of 2012, Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, the Digital Accountability and Transparency Act of 2014 (DATA Act), and the Fraud Reduction and Data Analytics Act of 2015.

FINANCIAL SECTION

LETTER FROM THE INSPECTOR GENERAL TRANSMITTING AUDIT

December 31, 2025

MEMORANDUM

The Office of Inspector General (OIG) contracted with the independent certified public accounting firm of Harper, Rains, Knight & Company, P.A. (HRK) to audit the financial statements of the U.S. Equal Employment Opportunity Commission (EEOC) for fiscal year ended September 30, 2025, and to report on EEOC's internal controls over financial reporting, and compliance with laws, regulations, contracts, and other matters. The contract required that HRK conduct the audit in accordance with U.S. generally accepted government auditing standards (GAGAS) contained in Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) audit guidance, and U.S. Government Accountability Office/Council of the Inspectors General on Integrity and Efficiency Financial Audit Manual.

In its audit of EEOC, HRK reported:

• EEOC's financial statements present fairly, in all material respects, EEOC's financial position as of September 30, 2025, and its net cost of operations, changes in net position, and budgetary resources for the fiscal years then ended, in accordance with accounting principles generally accepted in the United States of America;
• they did not identify any deficiencies in internal control over financial reporting that they consider to be material weaknesses. However, material weaknesses may exist that have not been identified; and
• their tests for compliance with selected provisions of applicable laws, regulations, and contracts disclosed no instances of noncompliance for fiscal year 2025 that would be reportable under GAGAS or OMB Bulletin 24-02, Audit Requirements for Federal Financial Statements.

HRK is responsible for the opinion on the attached auditor's report dated December 30, 2025, and the conclusions expressed in the report. We do not express an opinion on EEOC's financial statements or conclusions on internal control over financial reporting or on compliance and other matters. EEOC management was given the opportunity to review the draft report and to provide comments.

OMB issued Circular Number A-50, Audit Follow-up, to ensure that corrective action on audit findings and recommendations proceed as rapidly as possible. EEOC Order 192.002, Audit Follow-Up Program, implements Circular Number A-50 and requires that for resolved recommendations, a corrective action work plan should be submitted within 30 days of the final audit report date describing specific tasks and completion dates necessary to implement audit recommendations. Circular Number A-50 requires prompt resolution and corrective action on audit recommendations. Resolutions should be made within six months of final report issuance.

Attachment

cc:

Sharon Rose

Chief Operating Officer, Office of the Chair

Edmond Sims

Associate Deputy Chief Operating Officer, Office of the Chair

Shannon Royce

Chief of Staff, Office of the Chair

Elisa Avalos

Chief Financial Officer, Office of the Chief Financial Officer

Selma Cowan

Deputy Chief Financial Officer, Office of the Chief Financial Officer

Catherine Eschbach

Acting General Counsel, Office of General Counsel

Kevin Richardson

Chief Human Capital Officer, Office of the Chief Human Capital Officer

Gul Chaudhry

Acting Director, Office of Federal Sector

Sivaram Ghorakavi

Chief Information Officer, Office of the Chief Information Officer

Thomas Colclough

National Director, Office of Field Programs

Amanda Smith

Director, Office of Communications and Legislative Affairs

Delphine Best

Audit Follow-Up Coordinator, Office of the Chief Financial Officer

INDEPENDENT AUDITOR'S REPORT

Financial Statements

Equal Employment Opportunity Commission Balance Sheet

The accompanying notes are an integral part of this statement.

The accompanying notes are an integral part of this statement.

The accompanying notes are an integral part of this statement.

The accompanying notes are an integral part of this statement.

NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended September 30, 2025

(in Dollars)

1. Summary of Significant Accounting Policies
   1. Reporting Entity
      The Equal Employment Opportunity Commission (EEOC or Commission or agency) was created by Title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e, et seq.) as amended by the Equal Employment Opportunity Act of 1972 (Public Law 92261) and became operational on July 2, 1965. Title VII requires that the Commission be composed of five members, not more than three of whom shall be of the same political party. The members are appointed by the President, by and with the advice and consent of the Senate, for a term of 5 years. The President designates one member to serve as Chair and one member to serve as Vice Chair. The General Counsel is also appointed by the President, by and with the advice and consent of the Senate, for a term of 4 years.

      In addition, based on the EEOC Education Technical Assistance and Training Revolving Fund Act of 1992 (P.L. 102-411), the EEOC is authorized to charge and receive fees to offset the costs of education, technical assistance, and training provided to private and public employers.

      The EEOC enforces federal laws that prohibit employment discrimination based on race, color, religion, sex, national origin, disability, age (40 or older), and genetic information. These laws cover federal agencies, most private employers, state and local governments (excluding elected or appointed officials), employment agencies, and most labor organizations. The EEOC carries out its mission through enforcement, outreach, education, and the provision of technical assistance.
      

   2. Basis of Presentation
      These financial statements have been prepared to report the financial position, net cost of operations, changes in net position, and budgetary resources of the EEOC, consistent with the Chief Financial Officers' Act of 1990 (CFO Act) and the Government Management Reform Act of 1994. These financial statements have been prepared from the books and records of the EEOC in accordance with generally accepted accounting principles (GAAP), the form and content requirements of the Office of Management and Budget (OMB) Circular No. A-136, and the EEOC's accounting policies, which are summarized in this note. All intra-agency transactions and balances have been eliminated, except in the Statement of Budgetary Resources, which is presented on a combined basis as required by OMB Circular No. A-136. These financial statements present proprietary information. The Federal Managers' Financial Integrity Act Assurance Statement and the Payment Information Integrity Act financial reports also prepared by the EEOC pursuant to OMB directives are used to monitor and control the EEOC's use of federal budgetary resources.
      
   3. Basis of Accounting
      The agency's integrated Oracle Federal Financials (OFF) uses an Oracle system, which provides funds control, management accounting, and a financial reporting system designed specifically for federal agencies.

      Financial transactions are recorded in the financial system using both an accrual and a budgetary basis of accounting. Under the accrual method, revenues are recognized when earned and expenses are recognized when a liability occurs without regard to the receipt or payment of cash. Budgetary accounting facilitates compliance with legal requirements and mandated controls over the use of federal funds. It generally differs from the accrual basis of accounting in that obligations are recognized when new orders are placed, contracts are awarded, or services are received that will require payments during the same or future periods.
      

   4. Revenues, User Fees, and Financing Sources
      The EEOC receives the majority of the funding needed to support its programs through congressional appropriations. Financing sources are received in annual and no-year appropriations that may be used, within statutory limits, for operating and capital expenditures. Appropriations used are recognized as an accrual-based financing source when expenses are incurred or assets are purchased.

      In addition, the EEOC has a permanent, indefinite appropriation through its revolving fund. These funds are obtained through fees charged to private and public sector parties to offset the agency's costs (including administrative and personnel expenses) of providing education, training and technical assistance. Revenue is recognized as earned after services have been rendered.

      The agency also recognizes imputed financing sources that are funded by another federal source in the period in which the cost was incurred to offset costs incurred by the EEOC. The types of costs offset by imputed financing are: (1) employees' pension benefits; (2) health insurance, life insurance and other post-retirement benefits for employees; and (3) losses in litigation proceedings.
      

   5. Assets and Liabilities
      Assets and liabilities presented on the EEOC's balance sheet include both entity and non-entity balances. Entity assets are assets the EEOC has authority to use in its operations. Non-entity assets are held and managed by the EEOC but are not available for use in its operations. The EEOC's non-entity assets represent receivables that, when collected, will be transferred to the U.S. Treasury.

      Intragovernmental assets and liabilities arise from transactions between the agency and other federal entities. All other assets and liabilities result from activity with non-federal entities.

      Liabilities covered by budgetary or other resources are those for which Congress has appropriated funds or funding is otherwise available to pay amounts due. Liabilities not covered by budgetary or other resources represent amounts owed in excess of available congressionally appropriated funds or other amounts. The liquidation of liabilities not covered by budgetary or other resources is dependent on future congressional appropriations or other funding.
      

   6. Fund Balance with the U.S. Treasury
      Fund Balance with the U.S. Treasury represents total appropriated funds remaining as of the fiscal year-end from which the EEOC is authorized to make expenditures and pay liabilities resulting from operational activity pertaining to this fiscal year, except as restricted by law. The balance consists primarily of appropriated undelivered orders, accounts payable, unavailable balances, and deposit funds that will be disbursed to third parties. The Fund Balance with the U.S. Treasury also includes fees collected for services that are recorded and accounted for in the EEOC's revolving fund.
      
   7. Advances and Prepaid Expenses
      Amounts advanced to EEOC employees for travel are recorded as an advance until the travel is completed and the employee accounts for travel expenses.

      Expenses paid in advance of receiving services are recorded as a prepaid expense until the services are received.
      

   8. Accounts Receivable
      Intragovernmental accounts receivable represents amounts due from other federal agencies for services rendered during the fiscal year. Amounts due from federal agencies are considered fully collectible. The EEOC does not have current accounts receivable from federal agencies for fiscal year ending September 30, 2025.

      Accounts receivable consists of amounts owed to the EEOC by other federal agencies and by the public from the sale of services.

      Accounts receivable from non-federal agencies are stated net of an allowance for estimated uncollectible amounts. All public receivables collectible in their entirety become due upon the receipt of a due process notice. Although the allowance is determined by the age of the receivable for financial statement reporting, the actual allowance is determined by considering the debtor's current ability to pay, their payment record and willingness to pay, and an analysis of aged receivable activity. The estimated allowance for accounts receivable is computed at 50% of the outstanding balance for receivables between 365 days and 720 days old, and receivables older than 720 days are calculated at 100%. The agency has a debt management process to assess losses on aged accounts receivable.
      

   9. Property, Plant, and Equipment
      Property, plant, and equipment consists of equipment, leasehold improvements and capitalized software. There are no restrictions on the use or convertibility of property, plant and equipment. The current value of property, plant, and equipment is reported net of accumulated depreciation and amortization (see Note 4).

      The EEOC capitalizes equipment (including capital leases) with a useful life of more than 2 years and an acquisition cost of $100,000 or more. Leasehold improvements and capitalized software are capitalized when the useful life is 2 years or more and the acquisition cost is at least $200,000.

      Expenditures for normal repairs and maintenance for capitalized equipment and capitalized leases are charged to expense as incurred unless the expenditure is equal to or greater than $100,000 and the improvement increases the asset's useful life by more than 2 years. For leasehold improvements and capitalized software, the repair or maintenance amount must be greater than $200,000 and the improvements increase the asset life by more than 2 years.

      Depreciation or amortization of equipment is computed using the straight-line method over the assets' useful life ranging from 5 to 15 years. Copiers are depreciated using a 5-year life. Computer hardware is depreciated over 3 to 7 years. Capitalized software is amortized over a useful life of 2 years. Amortization of capitalized software begins on the date it is put in service, is purchased, or when the module or component has been successfully tested if developed internally.

      Leasehold improvements are amortized over the remaining life of the lease. The EEOC leases the majority of its office space from the General Services Administration. The lease costs approximate commercial lease rates for similar properties.
      

   10. Accrued Annual, Sick and Other Leave, and Compensatory Time
       Annual leave, compensatory time, and other leave time, along with related payroll costs, are accrued when earned, reduced when taken, and adjusted for changes in compensation rates. Sick leave is not accrued when earned, but rather expensed when taken.
       
   11. Retirement Benefits
       EEOC employees participate in the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS). On January 1, 1987, FERS went into effect pursuant to Public Law 99-335. Most employees hired after September 30, 1983, are automatically covered by FERS and Social Security. Employees hired prior to January 1, 1984, could elect to either join FERS and Social Security or remain in CSRS.

       For employees under FERS, the EEOC contributes an amount equal to 1% of the employee's basic pay to the tax deferred thrift savings plan and matches employee contributions up to an additional 5% of pay. FERS and CSRS employees can contribute $23,500 of their gross earnings to the plan for the calendar year 2025. However, CSRS employees receive no matching agency contribution. Employees who are 50 years of age or older may contribute an additional $7,500 as a "catch-up" contribution. Employees aged 60-63 may contribute a higher catch-up limit of $11,250, making the total potential contribution $34,750 for calendar year 2025.

       The EEOC recognizes the full cost of providing future pension and Other Retirement Benefits (ORB) for current employees as required by SFFAS No. 5, Accounting for Liabilities of the Federal Government. Full costs include pension and ORB contributions paid out of EEOC appropriations and costs financed by the U.S. Office of Personnel Management (OPM). The amount financed by OPM is computed based on OPM guidance and recognized as an imputed financing source and benefit program expense. Reporting amounts such as plan assets, accumulated plan benefits, or unfunded liabilities, if any, is the responsibility of OPM, rather than the EEOC.

       Liabilities for future pension payments and other future payments for retired employees who participate in the Federal Employees Health Benefits Program (FEHB) and the Federal Employees Group Life Insurance Program (FEGLI) are reported by OPM rather than the EEOC.
       

   12. Workers' Compensation
       The EEOC records a liability for estimated future payments to be made for workers' compensation pursuant to the Federal Employees' Compensation Act (FECA). The FECA program is administered by the U.S. Department of Labor (DOL), which initially pays valid claims and subsequently seeks reimbursement from federal agencies employing the claimants. Reimbursements to the DOL on payments made occur approximately 2 years subsequent to the actual disbursement. Budgetary resources for this intra-governmental liability are made available to the EEOC as part of its annual appropriation from Congress in the year that reimbursement to the DOL takes place. A liability is recorded for actual un-reimbursed costs paid by DOL to recipients under FECA.

       Additionally, the EEOC records an estimate of the expected future liability for death, disability, medical and miscellaneous costs for approved compensation cases, as well as a component for claims that have been incurred but have not yet been reported. The EEOC computes this estimate using a DOL-provided model for non-CFO Act agencies that uses actual benefit payments for the EEOC from the past 9 to 12 quarters to project these future payments. The estimated liability is not covered by budgetary resources and will require future funding. This estimate is recorded as a noncurrent liability.
       

   13. Contingent Liabilities
       Contingencies are recorded when losses are probable and the cost is measurable. When an estimate of contingent losses includes a range of possible costs, the most likely cost is reported, but where no cost is more likely than any other, the lowest possible cost in the range is reported. Liabilities included are related to Treasury-managed and Department of Labor-managed benefit programs such as Accounts Payable, Federal Employees' Compensation Program, Worker's Compensation, and Accrued (Unfunded) Annual Leave.
       
   14. Amounts Collected for Restitution
       In one litigation matter, the court directed an individual to pay amounts to the EEOC as restitution to several named claimants. These monies will be paid to claimants as directed by the court.
       
   15. Cost Allocations to Programs
       Costs associated with the EEOC's various programs consist of direct costs consumed by the program, including personnel costs, and a reasonable allocation of indirect costs. The indirect cost allocations are based on actual payroll amounts devoted to each program from information provided by EEOC employees.
       
   16. Unexpended Appropriations
       Unexpended appropriations include the unobligated balances and undelivered orders of the EEOC's appropriated spending authority as of the fiscal year-end that has not lapsed or been rescinded or withdrawn.
       
   17. Income Taxes
       As an agency of the federal government, the EEOC is exempt from all income taxes imposed by any governing body, whether it is a federal, state, commonwealth, local, or foreign government.
       
   18. Use of Estimates
       Management has made certain estimates and assumptions in reporting assets and liabilities and in the footnote disclosures. Actual results could differ from these estimates. Significant estimates underlying the accompanying financial statements include the allowance for doubtful accounts receivable, contingent liabilities, and future workers' compensation costs.
       
   19. New Accounting Standard
       In April 2018, the Federal Accounting Standards Advisory Board (FASAB) issued Statement of Federal Financial Accounting Standards 54: Leases (SFFAS 54), which among other things, requires lessees to (1) recognize operating leases as lease assets and lease liabilities on the balance sheet and (2) disclose key information about significant leasing arrangements. Management has determined that the EEOC's current leases are intragovernmental and, therefore, not subject to this new accounting standard.
       
   20. Changes in Presentation
       As per OMB Memorandum 25-30 and OMB Circular A-136, as signed on July 14, 2025, significant changes have been mandated to the audited financial statements and the associated footnotes. While the agency will continue to undergo an annual audit, only current year financial information will be presented in the financial statements and associated footnotes for fiscal year 2025.

2. Fund Balance with Treasury
   The Department of the Treasury (Treasury) performs cash management activities for all federal agencies. The net activity represents Fund Balance with Treasury. The Fund Balance with Treasury represents the right of the EEOC to draw down funds from Treasury for expenses and liabilities.

   The status of the Fund Balance is classified as unobligated available, unobligated unavailable, or obligated. Unobligated funds, depending on budget authority, are generally available for new obligations in the current year of operations. Unavailable unobligated balances are not available to fund new obligations because they are expired, they must be re-apportioned, or their use has been permanently or temporarily restricted. The obligated but not yet disbursed balance represents amounts designated for payment of goods and services ordered but not yet received, or goods and services received but for which payment has not yet been made.

   Annual appropriation balances returned to Treasury along with balances classified as miscellaneous receipts are not included in EEOC's Fund Balance presented on its balance sheet. For the period ended September 30, 2025, the EEOC returned $5,223,708 in cancelled appropriations to Treasury. As of September 30, 2025, miscellaneous receipts of $38,300 have been returned to Treasury.

   The Status of Fund Balance with Treasury as of September 30, 2025, consists of the following:

   FY 2025
   Status of Funds
   Unobligated balance:
   Available	$ 3,614,456
   Unavailable	*25,214,498
   Obligated balance not yet disbursed	64,643,748
   Non-budgetary Fund Balance with Treasury	51,138
   Totals	$ 93,523,840

   *Note: Total Fund with Treasury will not equal Total Status of Fund Balance with Treasury. This is due to sequestration of $955,205 for fiscal year 2025.

3. Accounts Receivable, Net
   Intra-governmental accounts receivable due from federal agencies arise from the sale of services to other federal agencies. This sale of services generally reduces the duplication of effort within the federal government resulting in a lower cost of federal programs and services. The EEOC does not have current accounts receivable from federal agencies.

   Accounts receivable due to the EEOC from the public arise from payroll debts and revolving fund education, training and technical assistance provided to public and private entities or to state and local agencies. An analysis of accounts receivable is performed to determine collectability and an appropriate allowance for uncollectible receivables is recorded. Accounts receivable as of September 30, 2025, are as follows:

   FY 2025
   Intragovernmental:
   Accounts receivable (see detail below)	$ -
   Totals	$ -
   With the public:
   Accounts receivable	$ 120,912
   Allowance for uncollectible receivables	(34,776)
   Totals	$86,136

4. Property, Plant and Equipment, Net
   Property, plant, and equipment consists of that property which is used in operations and consumed over time. The following tables summarize cost and accumulated depreciation of property, plant, and equipment. Depreciation expense for the period ending September 30, 2025, was $3,387,266.

   As of September 30, 2025	Cost	Accumulated Depreciation	Net Book Value
   Equipment	$120,284	$(120,284)	$ -
   Capital leases	72,340	(72,340)	-
   Internal use software	8,811,041	(6,919,666)	1,891,375
   Leasehold improvements	11,240,209	(11,240,209)	-
   Internal use software in dev	1,184,678	-	1,184,678
   Totals	$21,428,552	$(18,352,499)	$3,076,053

5. Non-Entity Assets
   The EEOC has $0 of net receivables to collect on behalf of the U.S. Treasury as of September 30, 2025.

6. Total Liabilities Not Covered by Budgetary Resources
   Liabilities not covered by budgetary resources represent amounts owed in excess of available congressionally appropriated funds or other amounts.

   Liabilities not covered by budgetary resources as of September 30, 2025, are shown in the following table:

   FY 2025
   Intragovernmental:
   Workers' Compensation Liability	$1,782,495
   Total Intragovernmental	1,782,495
   Other than Intragovernmental:
   Unfunded Leave	22,696,922
   Future Workers' Compensation Liability	8,109,686
   Total Other than Intragovernmental	30,806,608
   Total liabilities not covered by budgetary resources	32,589,103
   Total liabilities covered by budgetary resources	39,801,829
   Total liabilities not requiring budgetary resources	51,138
   Total liabilities	$72,442,070

   Liabilities Analysis

   Current and non-current liabilities as of September 30, 2025, are shown in the following table:

   Current	Non-Current	Totals
   Intragovernmental
   Accounts payable	$244,214	$ -	$244,214
   Employer contributions and payroll taxes payable	2,051,659	-	2,051,659
   Other Liabilities w/o Related Budgetary Obligations	-	800,000	800,000
   Total Intragovernmental	2,295,873	800,000	3,095,873
   Other than intragovernmental liabilities
   Accounts payable	26,158,876	-	26,158,876
   Accrued funded payroll and leave	10,266,041	-	10,266,041
   Employer contributions and payroll taxes payable	281,039	-	281,039
   Total Other than intragovernmental liabilities	36,705,956	-	36,705,956
   Liabilities covered by budgetary resources	39,001,829	800,000	39,801,829
   Intragovernmental
   Workers' Compensation Liability	1,782,495	-	1,782,495
   Total Intragovernmental	1,782,495	-	1,782,495
   Other than intragovernmental liabilities
   Unfunded leave	22,696,922	-	22,696,922
   Future Workers' Compensation Liability	-	8,109,686	8,109,686
   Total Other than intragovernmental liabilities	22,696,922	8,109,686	30,806,608
   Liabilities not covered by budgetary resources	24,479,417	8,109,686	32,589,103
   Amounts collected for restitution	51,138	-	51,138
   Liabilities not requiring budgetary resources	51,138	-	51,138
   Total liabilities	$63,532,384	$8,909,686	$72,442,070

Equal Employment Opportunity Commission Budget and Accrual Reconciliation For the Year Ended September 30, 2025 (in Dollars)
FY 2025
Intra- governmental	With the public	Total FY 2025
NET COST			$162,293,037	$324,286,501	$486,579,538
Components of Net Cost That Are Not Part of Net Outlays
PP&E depreciation		-	(3,387,266)	(3,387,266)
Other		-	1,128,443	1,128,443
Increase/(decrease) in assets:
	Accounts receivable	-	8,252	8,252
	Other assets	-	735,414	735,414
Increase/(decrease) in liabilities:
	Accounts payable	(102,387)	1,710,188	1,607,801
	Salaries and benefits	(180,423)	(3,564,800)	(3,745,223)
	Other liabilities (Unfunded leave, Workers' Compensation, Future Workers' Compensation)	-	1,111,996	1,111,996
Other financing sources:
	Federal employee retirement benefit costs paid by OPM and imputed to the agency	(36,078,035)	-	(36,078,035)
Total Components of Net Cost That Are Not Part of Net Outlays		$(36,360,845)	$(2,257,773)	$(38,618,618)
NET OUTLAYS		$125,932,192	$322,028,728	$447,960,920

Audit Opinion	Unmodified
Restatement	No
Material Weakness	Beginning Balance	New	Resolved	Consolidated	Ending Balance
Lack of Sufficient Control over Financial Management	0	0	0	0	0

Effectiveness of Internal Control over Financial Reporting (FMFIA § 2)
Statement of Assurance	Unmodified
Material Weakness	Beginning Balance	New	Resolved	Consolidated	Reassessed	Ending Balance
Lack of Sufficient Control over Financial Reporting	0	0	0	0	0	0

Effectiveness of Internal Control over Operations (FMFIA § 2)
Statement of Assurance	Unmodified
Material Weakness	Beginning Balance	New	Resolved	Consolidated	Reassessed	Ending Balance
Lack of Sufficient Control over Operations	0	0	0	0	0	0

Conformance with Federal Financial Management System Requirements (FMFIA § 4)
Statement of Assurance	Federal Systems conform, except for instances of non-conformance
Non-Conformances	Beginning Balance	New	Resolved	Consolidated	Reassessed	Ending Balance
Lack of Sufficient Control over Conformances	0	0	0	0	0	0

Compliance with Section 803(a) of the Federal Financial Management Improvement Act (FFMIA)
Agency	Auditor
1. Federal Financial Management System Requirements	N/A	N/A
2. Applicable Federal Accounting Standards	N/A	N/A
3. USSGL at Transaction Level	N/A	N/A

Overpayments Recaptured (in dollars) as of September 30, 2025
Source	Amount Identified FY 2025	Amount Recovered FY 2025	Amount Identified FY 2024	Amount Recovered FY 2024
Vendor Payments	$0	$0	$0	$0
Travel Payments	$0	$0	$0	$0

Functional Area	Supervisory Review	Risk Assessment
Travel	Day to day controls established and maintained by management to ensure travel system integrity and compliance with federal travel regulations.	Non-compliance with federal regulations.
Contracts and Simplified Acquisition (Purchase Card Program)	Purchase orders and competitive contracts authorized by headquarters Contracting Officer. Contracting Officer approves procurement authorization for purchase card holders.	Employees assigned as approving officials are not authorized.
Disbursements, Receivables, General Ledger, Payables and Debt Collections, Payroll Processing	Financial reports are consistently reviewed and analyzed.	Amounts recorded in the general ledger are not accurate and valid.
Records, Space, Property, Vehicle, Printing, and Mail Management	Requests are required to be reviewed and authorized.	Requests are not properly authorized.

Statutory Authority	Penalty	Year Enacted	Latest Year of Adjustment	Current Penalty Level	Sub-Agency/ Bureau/ Unit	Locations for Penalty Update Details
Sections 711(a)-(b) of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e-10(a)-(b); 29 C.F.R. § 1601.30(a)-(b)	Willful Violation	1964	2025	$698	N/A	90 Federal Register 46766 (Sept. 30, 2025)