2010   Financial Report of the United States Government

Management's Discussion & Analysis

Introduction

The fiscal year (FY) 2010 Financial Report of the United States Government (Report) provides the President, Congress, and the American people with a comprehensive view of the Federal Government´s finances, i.e., its financial position and condition, its revenues and costs, assets and liabilities, and other obligations and commitments. The Report also discusses important financial issues and significant conditions that may affect future operations. This year's Report gives particular emphasis to two key issues: the Government´s ongoing efforts to strengthen the economy and create jobs, and the need to achieve fiscal sustainability over the medium and long term.

Pursuant to 31 U.S.C. § 331(e)(1), the Department of the Treasury must submit the Report, which is subject to audit by the Government Accountability Office (GAO), to the President and Congress no later than six months after the September 30 fiscal year end. To encourage timely and relevant reporting, the Office of Management and Budget (OMB) accelerated both individual agency and governmentwide reporting deadlines.

The Report is prepared from the audited financial statements of specifically designated Federal agencies, including the Cabinet departments and many smaller, independent agencies (see organizational chart on the next page). GAO issued, as it has for the past thirteen years, a "disclaimer" of opinion on the accrual-based consolidated financial statements for the fiscal years ended September 30, 2010 and 2009. Additionally, GAO issued a disclaimer of opinion on the 2010 and 2006 Statement of Social Insurance (SOSI). A disclaimer of opinion indicates that sufficient information was not available for the auditors to determine whether the reported financial statements were fairly presented. GAO issued unqualified opinions on the 2009, 2008, and 2007 Statements of Social Insurance. In FY 2010, 28 of the 35 most significant agencies earned unqualified opinions on their financial statement audits. 1

The FY 2010 Financial Report consists of:

In addition, the Government has produced a Citizen´s Guide to provide the American taxpayer with a quick reference to the key issues in the Report and an overview of the Government's financial position and condition.

Mission & Organization

The Government´s fundamental mission is derived from the Constitution: "…to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare and secure the blessings of liberty to ourselves and our posterity." The Congress authorizes and agencies implement programs as missions and initiatives evolve over time in pursuit of key public services and objectives, such as providing for national defense, promoting affordable health care, fostering income security, boosting agricultural productivity, providing veteran benefits and services, facilitating commerce, supporting housing and the transportation systems, protecting the environment, contributing to the security of energy resources, and helping States provide education.

Exhibit 1 provides an overview of how the U.S. Government is organized.

Exhibit 1 - Overview of how the United States Government is organized

Significant Reporting Entities

Other Significant Reporting Entities

Other entities are listed in Appendix A of this report.

Footnotes

1The Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Farm Credit System Insurance Corporation (FCSIC) are among the 35 significant entities. However, because these entities operate on a calendar year basis (December 31 year end), their 2010 audits are not yet complete. (Back to Content)


Last Updated:  December 07, 2011