Notes to the Financial Statements

Note 21. Prior-Period Adjustments

For fiscal year 2012, DHS applied a change in accounting principles that changed activity previously classified as General PP&E to operating materials and supplies. This change by DHS ultimately resulted in an adjustment to beginning of the year cumulative results of operations totaling $711.0 million on their Statement of Changes in Net Position. Please refer to DHS audited financial statements for detailed information pertaining to their change in accounting principles.

For fiscal years 2012 and 2011, as discussed in Note 1.V—Reclassifications, one fund in each year that was previously reported as an earmarked fund was reclassified to non-earmarked funds and was recorded as a prior period adjustment. As shown in the Statement of Changes in Net Position, this reclassification had no effect on the total net position.