2012   Financial Report of the United States Government

Financial Statements of the United States Government for the Years Ended September 30, 2012, and 2011

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 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 such as the payment of interest on debt held by the public also require cash disbursements and are not part of the deficit. 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, 2012 and 2011
(In billions of dollars)
2012
2011
 
Unified budget deficit (1,089.4) (1,298.6)
 
Adjustments for noncash outlays included in the budget:
  Interest accrued by Treasury on debt held by the public 240.1 244.2
  TARP yearend re-estimate 32.3 (46.9)
 TARP Subsidy (income)/expense (Note 5) (10.8) 7.2
  Other Federal entity subsidy expense/(income) (Note 4) (29.4) (43.9)
    Subtotal 232.2 160.6
 
Items affecting the cash balance not included in the Budget:
Net Transactions from financing activity:
  Borrowings from the public 7,766.9 7,962.8
  Repayment of debt held by the public (6,614.0) (6,854.2)
  Agency securities (0.4) 1.0
    Subtotal 1,152.5 1,109.6
Transactions from monetary and other activity:
  Interest paid by Treasury on debt held by the public (234.3) (239.7)
  Net TARP direct loans and equity investments activity 52.3 59.0
  Net Government-sponsored enterprises —mortgage-backed securities activity 70.6 93.7
  Net loan receivable activity (153.7) (157.6)
  Allocations of special drawing rights (0.7) 0.2
  Other (0.3) 21.2
    Subtotal (266.1) (223.2)
 
Cash and other monetary assets (Note 2):
   Increase/(decrease) in cash and other monetary assets   29.2   (251.6)
    Balance, beginning of period   177.0   428.6
    Balance, end of period   206.2   177.0

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.

Last Updated:  February 27, 2013