2011   Financial Report of the United States Government

Financial Statements

Statements of Changes in Cash Balance from Unified Budget and Other Activities

The primary purpose of these statements is to report how the annual unified budget deficit relates to the change in the Government’s cash and other monetary assets and debt held by the public. It explains why the unified budget deficit normally would not result in an equivalent change in the Government’s cash and other monetary assets.

These statements reconcile the unified budget deficit to the change in cash and other monetary assets during the fiscal year and explain how the budget deficits (fiscal years 2011 and 2010) were financed. A budget deficit is the result of outlays (expenditures) exceeding receipts (revenue) during a particular fiscal year.

The budget deficit is financed through borrowings from the public. Other transactions also require cash disbursements and are not part of the deficit. These other transactions, such as the payment of interest on debt held by the public, contributed to the use of cash. The budget deficit also includes certain amounts that are recognized in the budget and will be disbursed in a future period or are adjustments that did not affect the cash balance. These amounts include interest accrued on debt issued by Treasury and held by the public and subsidy expense related to direct and guaranteed loans as well as equity investment activity and did not contribute to the change in the cash balance.

These statements show the adjustments for noncash outlays included in the budget and items affecting the cash balance not included in the budget to explain the change in cash and other monetary assets.

United States Government
Statements of Changes in Cash Balance from Unified Budget and Other Activities
for the Years Ended September 30, 2011 and 2010
(In billions of dollars)
2011
2010
 
Unified budget deficit (1,298.6) (1,294.1)
 
Adjustments for noncash outlays included in the budget:
  Interest accrued by Treasury on debt held by the public 244.2 206.8
  TARP yearend re-estimate (46.9) (86.4)
  TARP Subsidy expense/(income) (Note 5) 7.2 (24.2)
  Other Federal entity subsidy expense/(income) (Note 4) (43.9) (9.4)
    Subtotal 160.6 86.8
 
Items affecting the cash balance not included in the Budget:
Net Transactions from financing activity:
  Borrowings from the public 7,962.8 8,525.5
  Repayment of debt held by the public (6,854.2) (7,054.5)
  Agency securities 1.0 0.7
    Subtotal 1,109.6 1,471.7
Transactions from monetary and other activity:
  Interest paid by Treasury on debt held by the public (239.7) (201.2)
  Net TARP direct loans and equity investments activity 59.0 111.8
  Net GSE—mortgage backed securities activity 93.7 9.1
  Net loan receivable activity (157.6) (160.3)
  Allocations of special drawing rights 0.2 (1.0)
  Other 21.2 12.6
    Subtotal (223.2) (229.0)
 
Cash and other monetary assets (Note 2):
    (Decrease)/increase in cash and other monetary assets    (251.6)    35.4
    Balance, beginning of period    428.6   393.2
    Balance, end of period    177.0   428.6

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

For budgetary purposes, the effect of the yearend downward re-estimates (reduction of net outlays) and upward re-estimates (increase of net outlays) is not recognized until the subsequent fiscal year. As such, for fiscal year 2011, the budget deficit reflected a reduction of noncash outlays for $23.6 billion relating to the fiscal year 2010 yearend downward re-estimates. Also, for fiscal year 2011, TARP subsidy expense includes $23.3 billion in yearend upward re-estimates, which will be reflected in the fiscal year 2012 budget. For fiscal year 2010, the budget deficit reflected a reduction of noncash outlays for $110 billion relating to the fiscal year 2009 yearend downward re-estimates. Also, for fiscal year 2010, TARP subsidy income includes $23.6 billion in yearend downward re-estimates, which was reflected in the fiscal year 2011 budget.

Last Updated:  February 16, 2012