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

Statements of Net Cost

These statements present the net cost of fiscal years 2012 and 2011 United States Government (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, adjusted by the (gain)/loss from changes in assumptions.

Individual agency net cost amounts will differ with the agency’s financial statements because of allocations of certain Office of Personnel Management (OPM) costs and intragovernmental eliminations. Because of their specific function, most of the costs originally associated with OPM have been allocated to their user agencies for Governmentwide reporting purposes. The remaining costs for 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, 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, 2012

(In billions of dollars)	Gross Cost	Earned Revenue	Subtotal	(Gain)/Loss from Changes in Assumptions	Net Cost
Department of Health and Human Services	924.0	67.8	856.2	0.3	856.5
Social Security Administration	825.4	0.3	825.1	-	825.1
Department of Defense	784.7	56.0	728.7	70.4	799.1
Department of Veterans Affairs	213.6	4.1	209.5	149.3	358.8
Interest on Treasury Securities Held by the Public	245.4	-	245.4	-	245.4
Department of Agriculture	161.0	12.0	149.0	-	149.0
Office of Personnel Management	48.2	19.1	29.1	98.9	128.0
Department of Labor	107.3	-	107.3	-	107.3
Department of Transportation	79.0	0.8	78.2	-	78.2
Department of Housing and Urban Development	74.5	1.5	73.0	-	73.0
Department of Energy	60.8	4.3	56.5	-	56.5
Department of Homeland Security	58.2	9.9	48.3	0.4	48.7
Department of Education	62.7	20.0	42.7	-	42.7
Department of Justice	38.9	1.3	37.6	-	37.6
Department of State	29.8	3.5	26.3	0.8	27.1
Department of the Interior	23.3	2.7	20.6	-	20.6
National Aeronautics and Space Administration	19.0	0.2	18.8	-	18.8
Agency for International Development	11.4	0.2	11.2	-	11.2
Environmental Protection Agency	11.4	0.3	11.1	-	11.1
Railroad Retirement Board	15.3	5.1	10.2	-	10.2
Department of Commerce	12.8	2.6	10.2	-	10.2
Pension Benefit Guaranty Corporation	20.2	10.4	9.8	-	9.8
Federal Communications Commission	10.1	0.4	9.7	-	9.7
U.S. Postal Service	72.8	64.2	8.6	-	8.6
National Science Foundation	7.4	-	7.4	-	7.4
Small Business Administration	1.6	0.4	1.2	-	1.2
Smithsonian Institution	0.8	-	0.8	-	0.8
Export-Import Bank of the United States	1.2	0.8	0.4	-	0.4
U.S. Nuclear Regulatory Commission	1.1	0.8	0.3	-	0.3
National Credit Union Administration	1.3	1.0	0.3	-	0.3
General Services Administration	0.5	0.5	-	-	-
Farm Credit System Insurance Corporation	-	0.1	(0.1)	-	(0.1)
Tennessee Valley Authority	11.0	11.3	(0.3)	0.1	(0.2)
Securities and Exchange Commission	1.2	1.6	(0.4)	-	(0.4)
Federal Deposit Insurance Corporation	2.6	19.3	(16.7)	-	(16.7)
Department of the Treasury	(150.0)	27.5	(177.5)	-	(177.5)
All other entities	56.4	0.8	55.6	-	55.6
Total	3,844.9	350.8	3,494.1	320.2	3,814.3
The accompanying notes are an integral part of these financial 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	943.3	66.4	876.9	0.1	877.0
Social Security Administration	782.9	0.4	782.5	-	782.5
Department of Defense	827.0	78.0	749.0	(32.0)	717.0
Department of Veterans Affairs	123.7	4.7	119.0	58.9	177.9
Interest on Treasury Securities Held by the Public	250.9	-	250.9	-	250.9
Department of Agriculture	153.8	9.4	144.4	-	144.4
Office of Personnel Management	43.6	19.1	24.5	0.3	24.8
Department of Labor	132.7	-	132.7	-	132.7
Department of Transportation	77.7	0.7	77.0	-	77.0
Department of Housing and Urban Development	60.7	1.2	59.5	-	59.5
Department of Energy	52.5	7.9	44.6	-	44.6
Department of Homeland Security	58.6	9.4	49.2	0.4	49.6
Department of Education	69.7	15.0	54.7	-	54.7
Department of Justice	31.1	1.3	29.8	-	29.8
Department of State	26.9	3.4	23.5	0.4	23.9
Department of the Interior	23.6	2.7	20.9	-	20.9
National Aeronautics and Space Administration	18.7	0.1	18.6	-	18.6
Agency for International Development	12.1	0.7	11.4	-	11.4
Environmental Protection Agency	11.2	0.5	10.7	-	10.7
Railroad Retirement Board	16.9	5.9	11.0	-	11.0
Department of Commerce	11.2	2.5	8.7	-	8.7
Pension Benefit Guaranty Corporation	12.8	7.4	5.4	-	5.4
Federal Communications Commission	9.3	0.4	8.9	-	8.9
U.S. Postal Service	61.7	64.6	(2.9)	-	(2.9)
National Science Foundation	7.1	-	7.1	-	7.1
Small Business Administration	3.6	0.4	3.2	-	3.2
Smithsonian Institution	0.7	-	0.7	-	0.7
Export-Import Bank of the United States	0.6	0.7	(0.1)	-	(0.1)
U.S. Nuclear Regulatory Commission	1.0	0.8	0.2	-	0.2
National Credit Union Administration	0.2	3.1	(2.9)	-	(2.9)
General Services Administration	0.3	0.6	(0.3)	-	(0.3)
Farm Credit System Insurance Corporation	-	0.1	(0.1)	-	(0.1)
Tennessee Valley Authority	11.5	11.8	(0.3)	-	(0.3)
Securities and Exchange Commission	1.0	1.6	(0.6)	-	(0.6)
Federal Deposit Insurance Corporation	(2.2)	13.7	(15.9)	-	(15.9)
Department of the Treasury	114.8	30.6	84.2	-	84.2
All other entities	47.1	0.5	46.6	-	46.6
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.

Footnotes

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