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Financial Report of the United States Government

Financial Statements of the United States Government for the Fiscal Years Ended September 30, 2021, and 2020

Statements of Net Cost

These statements present the net cost of the government operations for FYs 2021 and 2020. Costs and earned revenues are categorized on the Statement of Net Cost by significant entity, providing greater accountability by showing the relationship of the entities’ net cost to the government-wide net cost. Costs and earned revenues are presented in this Financial Report on an accrual basis, while the budget presents outlays and receipts, generally on a cash basis. The focus of the Budget of the U.S. is by entity. In reporting the Statement of Net Cost by entity, we are assisting the external users in assessing the operating performance, budget integrity, stewardship, and systems and controls of the government.

The Statements of Net Cost 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 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 gain or loss from changes in long-term assumptions used to measure the liabilities reported for federal civilian and military employee pensions, OPEB, and ORB, including veterans’ compensation.
  • Net cost—is computed by subtracting earned revenue from gross cost, adjusted by the (gain)/loss from changes in assumptions.

Individual entity net cost amounts will differ from the entity’s financial statements primarily because of reallocations completed at the government-wide level which are listed below.

  • Employee benefit costs.
  • Intra-governmental eliminations, as adjusted for buy/sell costs and related revenues.
  • Imputed costs.

Because of its specific function, most of the employee benefit costs originally associated with the OPM have been reallocated to the user entities for government-wide reporting purposes. The remaining costs for OPM on the Statements of Net Cost are the administrative operating costs, the expenses from prior costs from health and pension plan amendments, and the actuarial gains and losses, if applicable.

With regard to intra-governmental buy/sell costs and related revenues, the amounts recognized by each entity are added to, and subtracted from, respectively, the individual entity non-federal net cost amounts in order to allocate the costs to the entities that incurred the costs. GSA is the primary provider of goods and services to federal entities. GSA’s net cost is adjusted for its intra-governmental buy/sell costs and related revenues. The remaining costs for GSA on the Statements of Net Cost are administrative operating costs.

In addition, the intra-governmental imputed costs recognized for the receipt of goods and services, financed in whole or part by the providing entities, are added to the individual entity non-federal net cost amounts. The most significant types of imputed costs that are recorded relate to post-retirement and health benefits, FECA, and Treasury’s Judgment Fund. The consolidated Statements of Net Cost is intended to show the full cost for each entity, therefore, the amount of these imputed costs are added back to the reporting entities’ gross cost line item and subtracted from the applicable administering entities’ gross cost line item. These imputed costs have a net effect of zero on the Statements of Net Cost in the Financial Report.

The interest on securities issued by 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
Statement of Net Cost
for the Year Ended September 30, 2021

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(In billions of dollars)
Gross
Cost
Earned
Revenue
Subtotal (Gain)/Loss
from
Changes in
Assumptions
Net
Cost
Department of Health and Human Services 1,644.9 137.7 1,507.2 0.7 1,507.9
Social Security Administration 1,194.1 0.3 1,193.8 - 1,193.8
Department of Defense 851.8 44.0 807.8 82.8 890.6
Department of the Treasury 854.6 23.8 830.8 - 830.8
Department of Veterans Affairs 351.0 3.9 347.1 346.3 693.4
Department of Labor 396.8 - 396.8 - 396.8
Interest on Treasury Securities Held by the Public 392.0 - 392.0 - 392.0
Small Business Administration 350.5 3.1 347.4 - 347.4
Department of Agriculture 239.4 8.8 230.6 - 230.6
Department of Education 243.0 34.4 208.6 - 208.6
Office of Personnel Management 134.0 26.3 107.7 84.9 192.6
Department of Transportation 102.9 1.0 101.9 - 101.9
Department of Homeland Security 101.0 12.9 88.1 1.6 89.7
Security Assistance Accounts 92.9 14.4 78.5 - 78.5
Department of Justice 41.4 2.6 38.8 - 38.8
Department of State 40.2 3.5 36.7 1.9 38.6
Department of Energy 43.2 6.2 37.0 - 37.0
Department of Housing and Urban Development 35.3 1.9 33.4 - 33.4
National Aeronautics and Space Administration 22.1 0.3 21.8 - 21.8
Department of the Interior 23.8 2.3 21.5 - 21.5
Railroad Retirement Board 17.3 - 17.3 - 17.3
U.S. Agency for International Development 16.0 - 16.0 - 16.0
Department of Commerce 15.5 3.6 11.9 0.1 12.0
Federal Communications Commission 11.7 0.4 11.3 - 11.3
Environmental Protection Agency 8.9 0.4 8.5 - 8.5
National Science Foundation 7.4 - 7.4 - 7.4
U.S. Postal Service 77.9 75.7 2.2 - 2.2
Smithsonian Institution 1.5 0.8 0.7 - 0.7
Millennium Challenge Corporation 0.7 - 0.7 - 0.7
U.S. Nuclear Regulatory Commission 0.9 0.7 0.2 - 0.2
National Credit Union Administration 0.2 0.1 0.1 - 0.1
Securities and Exchange Commission 2.4 2.5 (0.1) - (0.1)
Export-Import Bank of the U.S. 0.5 0.7 (0.2) - (0.2)
U.S. International Development Finance Corporation - 0.2 (0.2) - (0.2)
Farm Credit System Insurance Corporation - 0.4 (0.4) - (0.4)
General Services Administration (0.1) 0.9 (1.0) - (1.0)
Tennessee Valley Authority 8.8 10.4 (1.6) - (1.6)
Federal Deposit Insurance Corporation 1.7 7.1 (5.4) - (5.4)
National Railroad Retirement Investment Trust 0.1 6.6 (6.5) - (6.5)
Pension Benefit Guaranty Corporation (56.5) 22.6 (79.1) - (79.1)
All other entities 24.9 1.8 23.1 0.1 23.2
Total 7,294.7 462.3 6,832.4 518.4 7,350.8
The accompanying notes are an integral part of these financial statements.

United States Government
Statement of Net Cost
for the Year Ended September 30, 2020 (Restated)

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(In billions of dollars)
Gross
Cost
Earned
Revenue
Subtotal (Gain)/Loss
from
Changes in
Assumptions
Net
Cost
Department of Health and Human Services 1,537.0 130.0 1,407.0 0.1 1,407.1
Social Security Administration 1,157.6 0.3 1,157.3 - 1,157.3
Department of Defense 803.0 39.8 763.2 (17.4) 745.8
Department of the Treasury 581.3 20.6 560.7 - 560.7
Department of Veterans Affairs 386.5 4.0 382.5 602.7 985.2
Department of Labor 493.2 - 493.2 - 493.2
Interest on Treasury Securities Held by the Public 371.1 - 371.1 - 371.1
Small Business Administration 562.1 3.1 559.0 - 559.0
Department of Agriculture 198.0 10.1 187.9 - 187.9
Department of Education 190.2 33.3 156.9 - 156.9
Office of Personnel Management 97.3 25.2 72.1 89.9 162.0
Department of Transportation 108.8 1.1 107.7 - 107.7
Department of Homeland Security 122.3 11.8 110.5 3.1 113.6
Security Assistance Accounts 154.8 42.8 112.0 - 112.0
Department of Justice 39.1 1.8 37.3 - 37.3
Department of State 34.6 2.8 31.8 1.1 32.9
Department of Energy 60.9 5.4 55.5 - 55.5
Department of Housing and Urban Development 36.3 2.2 34.1 - 34.1
National Aeronautics and Space Administration 22.3 0.2 22.1 - 22.1
Department of the Interior 23.0 2.4 20.6 - 20.6
Railroad Retirement Board 13.1 - 13.1 - 13.1
U.S. Agency for International Development 13.8 - 13.8 - 13.8
Department of Commerce 19.4 3.9 15.5 - 15.5
Federal Communications Commission 13.9 0.4 13.5 - 13.5
Environmental Protection Agency 9.1 0.4 8.7 - 8.7
National Science Foundation 7.3 - 7.3 - 7.3
U.S. Postal Service 79.2 71.7 7.5 - 7.5
Smithsonian Institution 1.5 0.5 1.0 - 1.0
Millennium Challenge Corporation 0.6 - 0.6 - 0.6
U.S. Nuclear Regulatory Commission 0.9 0.7 0.2 - 0.2
National Credit Union Administration 0.3 0.2 0.1 - 0.1
Securities and Exchange Commission 2.2 3.3 (1.1) - (1.1)
Export-Import Bank of the U.S 0.8 0.4 0.4 - 0.4
U.S. International Development Finance Corporation - 0.1 (0.1) - (0.1)
Farm Credit System Insurance Corporation 0.1 0.2 (0.1) - (0.1)
General Services Administration 0.3 0.8 (0.5) - (0.5)
Tennessee Valley Authority 8.8 10.1 (1.3) - (1.3)
Federal Deposit Insurance Corporation 1.7 6.5 (4.8) - (4.8)
National Railroad Retirement Investment Trust 0.1 1.8 (1.7) - (1.7)
Pension Benefit Guaranty Corporation 19.2 22.0 (2.8) - (2.8)
All other entities 23.4 1.7 21.7 - 21.7
Total 7,195.1 461.6 6,733.5 679.5 7,413.0
The accompanying notes are an integral part of these financial statements.
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Last modified 03/20/23