Financial Statements

Statements of Net Cost

These statements present the net cost of fiscal years 2011 and 2010 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:

• Gross cost—is the full cost of all the departments and entities excluding (gain)/loss from changes in assumptions. These costs are assigned on a cause-and-effect basis, or reasonably allocated to the corresponding departments and entities.
• Earned revenue—is exchange revenue resulting from the Government providing goods and services to the public at a price.
• (Gain)/loss from changes in assumptions—is the loss or gain from changes in long-term assumptions used to measure the liabilities reported for Federal civilian and military employee pensions, other post-employment benefits and other retirement benefits, including veterans’ compensation.
• Net cost—is computed by subtracting earned revenue from gross cost, plus/minus the (gain)/loss from changes in assumptions.

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, if applicable. 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.

United States Government
Statements of Net Cost
for the Years Ended September 30, 2011

(In billions of dollars)	Gross Cost	Earned Revenue	Subtotal	(Gain)/Loss from Changes in Assumptions	Net Cost
Department of Health and Human Services	943.4	66.4	877.0	0.1	877.1
Social Security Administration	782.9	0.4	782.5	-	782.5
Department of Defense	828.7	78.0	750.7	(32.0)	718.7
Interest on Treasury Securities Held by the Public	250.9	-	250.9	-	250.9
Department of Veterans Affairs	124.3	4.7	119.6	58.9	178.5
Department of Agriculture	154.2	9.4	144.8	-	144.8
Department of Labor	132.8	-	132.8	-	132.8
Department of the Treasury	115.2	30.6	84.6	-	84.6
Department of Transportation	77.9	0.7	77.2	-	77.2
Department of Housing and Urban Development	60.8	1.2	59.6	-	59.6
Department of Education	69.7	15.0	54.7	-	54.7
Department of Homeland Security	58.9	9.4	49.5	0.4	49.9
Department of Energy	52.5	7.9	44.6	-	44.6
Department of Justice	31.3	1.3	30.0	-	30.0
Office of Personnel Management	43.7	19.1	24.6	0.3	24.9
Department of State	27.0	3.4	23.6	0.4	24.0
Department of the Interior	23.8	2.7	21.1	-	21.1
National Aeronautics and Space Administration	18.8	0.1	18.7	-	18.7
Agency for International Development	12.1	0.7	11.4	-	11.4
Railroad Retirement Board	17.0	5.9	11.1	-	11.1
Environmental Protection Agency	11.3	0.5	10.8	-	10.8
Federal Communications Commission	9.3	0.4	8.9	-	8.9
Department of Commerce	11.3	2.5	8.8	-	8.8
National Science Foundation	7.1	-	7.1	-	7.1
Pension Benefit Guaranty Corporation	12.8	7.4	5.4	-	5.4
Small Business Administration	3.6	0.4	3.2	-	3.2
Smithsonian Institution	0.7	-	0.7	-	0.7
U.S. Nuclear Regulatory Commission	1.0	0.8	0.2	-	0.2
Farm Credit System Insurance Corporation	-	0.1	(0.1)	-	(0.1)
Export-Import Bank of the United States	0.6	0.7	(0.1)	-	(0.1)
General Services Administration	0.4	0.6	(0.2)	-	(0.2)
Tennessee Valley Authority	11.5	11.8	(0.3)	-	(0.3)
Securities and Exchange Commission	1.1	1.6	(0.5)	-	(0.5)
National Credit Union Administration	0.2	3.1	(2.9)	-	(2.9)
U.S. Postal Service	56.2	64.6	(8.4)	-	(8.4)
Federal Deposit Insurance Corporation	(2.1)	13.7	(15.8)	-	(15.8)
All other entities	47.4	0.5	46.9	-	46.9
Total	3,998.3	365.6	3,632.7	28.1	3,660.8
The accompanying notes are an integral part of these financial statements.

United States Government
Statements of Net Cost
for the Years Ended September 30, 2010

(In billions of dollars)	Gross Cost	Earned Revenue	Subtotal	(Gain)/Loss from Changes in Assumptions	Net Cost
Department of Health and Human Services	920.4	62.7	857.7	(0.1)	857.6
Social Security Administration	754.2	0.3	753.9	-	753.9
Department of Defense	929.0	39.8	889.2	(58.8)	830.4
Interest on Treasury Securities Held by the Public	214.8	-	214.8	-	214.8
Department of Veterans Affairs	240.2	4.7	235.5	101.4	336.9
Department of Agriculture	136.6	6.0	130.6	-	130.6
Department of Labor	179.0	-	179.0	-	179.0
Department of the Treasury	402.3	29.4	372.9	-	372.9
Department of Transportation	80.4	0.6	79.8	-	79.8
Department of Housing and Urban Development	56.7	1.3	55.4	-	55.4
Department of Education	100.8	11.3	89.5	-	89.5
Department of Homeland Security	58.9	8.9	50.0	5.7	55.7
Department of Energy	28.9	3.8	25.1	-	25.1
Department of Justice	32.7	1.2	31.5	-	31.5
Office of Personnel Management	43.5	18.0	25.5	84.1	109.6
Department of State	24.5	2.8	21.7	0.6	22.3
Department of the Interior	20.7	2.4	18.3	-	18.3
National Aeronautics and Space Administration	22.1	0.1	22.0	-	22.0
Agency for International Development	10.7	0.2	10.5	-	10.5
Railroad Retirement Board	14.6	5.8	8.8	-	8.8
Environmental Protection Agency	12.7	0.5	12.2	-	12.2
Federal Communications Commission	9.5	0.5	9.0	-	9.0
Department of Commerce	16.5	2.3	14.2	-	14.2
National Science Foundation	6.9	-	6.9	-	6.9
Pension Benefit Guaranty Corporation	11.9	8.1	3.8	-	3.8
Small Business Administration	5.4	0.4	5.0	-	5.0
Smithsonian Institution	0.8	-	0.8	-	0.8
U.S. Nuclear Regulatory Commission	1.2	0.9	0.3	-	0.3
Farm Credit System Insurance Corporation	-	0.1	(0.1)	-	(0.1)
Export-Import Bank of the United States	0.4	0.7	(0.3)	-	(0.3)
General Services Administration	0.6	0.6	-	-	-
Tennessee Valley Authority	9.7	10.8	(1.1)	-	(1.1)
Securities and Exchange Commission	1.1	1.4	(0.3)	-	(0.3)
National Credit Union Administration	3.2	1.1	2.1	-	2.1
U.S. Postal Service	57.3	65.7	(8.4)	-	(8.4)
Federal Deposit Insurance Corporation	16.8	16.1	0.7	-	0.7
All other entities	47.3	0.7	46.6	-	46.6
Total	4,472.3	309.2	4,163.1	132.9	4,296.0
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)