2010   Financial Report of the United States Government

Financial Statements

Statements of Net Cost

These statements present the net cost of fiscal years 2010 and 2009 Government 1 operations, including the operations related to earmarked funds (funds financed by specifically identified revenues, often supplemented by other financing sources, which remain available over time). The Government's fiscal year begins October 1 and ends September 30. Costs and earned revenues are categorized on the Statement of Net Cost by significant entity, providing greater accountability by showing the relationship of the agencies' net cost to the Governmentwide net cost. Costs and earned revenues are presented in this report by department on an accrual basis, while the budget presents costs and revenues by obligations and receipts, generally on a cash basis. The focus of the budget of the United States is by agency. Budgets are prepared, defended, and monitored by agency. In reporting by agency, we are assisting the external users in assessing the budget integrity, operating performance, stewardship, and systems and controls of the Government.

These statements contain the following four components:

Net cost for Governmentwide reporting purposes includes the General Services Administration (GSA) and the Office of Personnel Management (OPM) agency allocations, and is net of intragovernmental eliminations. For this reason, individual agency net cost amounts will not agree with the agency's financial statements. Because of their specific functions, most of the costs originally associated with GSA and OPM have been allocated to their user agencies for Governmentwide reporting purposes. The remaining costs for GSA and OPM on the Statements of Net Cost are the administrative operating costs, the expenses from prior and past costs from health and pension plan amendments, and the actuarial gains and losses for these agencies. The interest on securities issued by the Department of the Treasury (Treasury) and held by the public is reported on Treasury's financial statements, but because of its importance, and the dollar amounts involved, it is reported separately in these statements.

The Federal Accounting Standards Advisory Board (FASAB) released the Statement of Federal Financial Accounting Standards (SFFAS) No. 33, Pensions, Other Retirement Benefits, and Other Postemployment Benefits: Reporting the Gains and Losses from Changes in Assumptions and Selecting Discount Rates and Valuation Dates effective in fiscal year 2010. The standard requires the Governmentwide statements of net cost to present the amounts reported under the gain/loss on pension, other retirement benefits, or other postemployment benefits assumption changes as a separate component that will provide more transparent information regarding the underlying costs associated with these liabilities.

United States Government
Statements of Net Cost
for the Years Ended September 30
 
Gross
Cost
Earned
Revenue
Net
Cost
Gross
Cost
Earned
Revenue
Net
Cost
(In billions of dollars)
2010
2009
Department of Defense 929.0 39.8 889.2 718.4 35.6 682.8
Department of Health and Human Services 920.4 62.7 857.7 866.4 59.5 806.9
Social Security Administration 754.2 0.3 753.9 736.6 0.4 736.2
Department of the Treasury 402.3 29.4 372.9 254.6 19.4 235.2
Department of Veterans Affairs 240.2 4.7 235.5 (38.8) 4.0 (42.8)
Interest on Treasury Securities held by the public 214.8 - 214.8 189.1 - 189.1
Department of Labor 179.0 - 179 140.2 - 140.2
Department of Agriculture 136.6 6.0 130.6 132 10.5 121.5
Department of Education 100.8 11.3 89.5 44.9 6.5 38.4
Department of Transportation 80.4 0.6 79.8 80.1 0.5 79.6
Department of Homeland Security 58.9 8.9 50 62.1 8.4 53.7
U.S. Postal Service 57.3 65.7 (8.4) 58.2 67.1 (8.9)
Department of Housing and Urban Development 56.7 1.3 55.4 62.6 1.0 61.6
Office of Personnel Management 43.5 18.0 25.5 41.2 16.9 24.3
Department of Justice 32.7 1.2 31.5 31.2 1.1 30.1
Department of Energy 28.9 3.8 25.1 46.8 3.9 42.9
Department of State 24.5 2.8 21.7 25.6 2.5 23.1
National Aeronautics and Space Administration 22.1 0.1 22 24.2 0.1 24.1
Department of the Interior 20.7 2.4 18.3 20.8 2.2 18.6
Federal Deposit Insurance Corporation 16.8 16.1 0.7 63.4 18.8 44.6
Department of Commerce 16.5 2.3 14.2 13.9 2.1 11.8
Railroad Retirement Board 14.6 5.8 8.8 22.7 11.2 11.5
Environmental Protection Agency 12.7 0.5 12.2 10.1 0.6 9.5
Pension Benefit Guaranty Corporation 11.9 8.1 3.8 22.9 10.5 12.4
Agency for International Development 10.7 0.2 10.5 11.8 0.7 11.1
Tennessee Valley Authority 9.7 10.8 (1.1) 10.2 11.0 (0.8)
Federal Communications Commission 9.5 0.5 9.0 8.8 0.5 8.3
National Science Foundation 6.9 - 6.9 6.1 - 6.1
Small Business Administration 5.4 0.4 5.0 6.3 0.4 5.9
National Credit Union Administration 3.2 1.1 2.1 6.1 1.3 4.8
U.S. Nuclear Regulatory Commission 1.2 0.9 0.3 1.3 0.8 0.5
Securities and Exchange Commission 1.1 1.4 (0.3) 1.1 1.1 -
Smithsonian Institution 0.8 - 0.8 0.9 - 0.9
General Services Administration 0.6 0.6 - 1.0 0.5 0.5
Export-Import Bank of the United States 0.4 0.7 (0.3) 1.5 0.8 0.7
Farm Credit System Insurance Corporation - 0.1 (0.1) - 0.3 (0.3)
All other entities 47.3 0.7 46.6 51.3 0.7 50.6
Subtotal before loss/(gain) from changes in assumptions in 2010 4,472.3 309.2  4,163.1 3,735.6 300.9  3,434.7
Loss/(gain) from changes in assumptions in 2010 (Note 1):
Department of Veterans Affairs 101.4 - 101.4 - - -
Office of Personnel Management 84.1 - 84.1 - - -
Department of Homeland Security 5.7 - 5.7 - - -
Department of State 0.6 - 0.6 - - -
Department of Health and Human Services (0.1) - (0.1) - - -
Department of Defense (58.8) - (58.8) - - -
Subtotal of loss/(gain) from changes in assumptions 132.9 - 132.9 - - -
Total 4,605.2 309.2  4,296.0 3,735.6 300.9  3,434.7

The accompanying notes are an integral part of these financial statements.

Footnotes

1For purposes of this document, “Government” refers to the United States Government.(Back to Content)


Last Updated:  December 07, 2011