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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, 2019, and 2018

Statements of Net Cost

These statements present the net cost of the government operations for fiscal years 2019 and 2018, including the operations related to funds from dedicated collections. 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 governmentwide 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. Budgets are prepared, defended, and monitored by entity. In reporting by entity, we are assisting the external users in assessing the budget integrity, operating performance, 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 governmentwide level which are listed below.

  • Employee benefit costs.
  • Intragovernmental 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 governmentwide 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.

GSA is the primary provider of goods and services to federal entities. GSA’s net cost is adjusted for its intragovernmental buy/sell costs and related revenues. The remaining costs for GSA on the Statements of Net Cost are administrative operating costs. With regard to intragovernmental 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 addition, the intragovernmental 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 the Treasury 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 is 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 the 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, 2019

Table may scroll on smaller screens




(In billions of dollars)
Gross
Cost
Earned
Revenue
Subtotal (Gain)/Loss
from
Changes in
Assumptions
Net
Cost
Department of Health and Human Services 1,341.4 119.1 1,222.3 - 1,222.3
Social Security Administration 1,101.2 0.3 1,100.9 - 1,100.9
Department of Defense 813.6 44.2 769.4 139.0 908.4
Department of Veterans Affairs 364.7 5.1 359.6 58.0 417.6
Interest on Treasury Securities Held by the Public 403.6 - 403.6 - 403.6
Department of the Treasury 181.0 25.3 155.7 - 155.7
Department of Agriculture 149.1 8.3 140.8 - 140.8
Department of Education 153.9 31.9 122.0 - 122.0
Office of Personnel Management 118.5 24.1 94.4 0.3 94.7
Department of Transportation 82.2 1.1 81.1 - 81.1
Department of Homeland Security 77.0 14.0 63.0 0.9 63.9
Department of Energy 59.3 5.7 53.6 - 53.6
Department of Labor 40.5 - 40.5 - 40.5
Security Assistance Accounts 38.6 - 38.6 - 38.6
Department of Justice 40.8 3.5 37.3 - 37.3
Department of State 33.9 4.6 29.3 0.7 30.0
Department of Housing and Urban Development 29.6 1.8 27.8 - 27.8
National Aeronautics and Space Administration 21.0 0.2 20.8 - 20.8
Department of the Interior 21.1 2.6 18.5 - 18.5
U.S. Agency for International Development 12.2 0.1 12.1 - 12.1
Railroad Retirement Board 12.1 - 12.1 - 12.1
Federal Communication Commission 11.2 0.4 10.8 - 10.8
Department of Commerce 13.8 3.6 10.2 - 10.2
Environmental Protection Agency 8.8 0.3 8.5 - 8.5
Pension Benefit Guaranty Corporation 35.7 27.8 7.9 - 7.9
National Science Foundation 7.3 - 7.3 - 7.3
U.S. Postal Service 77.5 70.2 7.3 - 7.3
Smithsonian Institution 1.5 0.4 1.1 - 1.1
Millennium Challenge Corporation 0.5 - 0.5 - 0.5
National Credit Union Administration 0.4 0.2 0.2 - 0.2
U.S. Nuclear Regulatory Commission 0.8 0.7 0.1 - 0.1
Farm Credit System Insurance Corporation 0.1 0.2 (0.1) - (0.1)
Small Business Administration 0.3 0.4 (0.1) - (0.1)
Overseas Private Investment Corporation (0.2) 0.1 (0.3) - (0.3)
Securities and Exchange Commission 1.8 2.1 (0.3) - (0.3)
National Railroad Retirement Investment Trust 0.1 0.7 (0.6) - (0.6)
Export-Import Bank of the U.S (0.1) 0.5 (0.6) - (0.6)
General Services Administration 0.1 0.8 (0.7) - (0.7)
Tennessee Valley Authority 9.9 11.3 (1.4) - (1.4)
Federal Deposit Insurance Corporation 0.4 5.0 (4.6) - (4.6)
All other entities 22.0 1.8 20.2 - 20.2
Total 5,287.2 418.4 4,868.8 198.9 5,067.7
The accompanying notes are an integral part of these financial statements.

United States Government
Statement of Net Cost
for the Year Ended September 30, 2018

Table may scroll on smaller screens




(In billions of dollars)
Gross
Cost
Earned
Revenue
Subtotal (Gain)/Loss
from
Changes in
Assumptions
Net
Cost
Department of Health and Human Services 1,252.6 110.5 1,142.1 0.4 1,142.5
Social Security Administration 1,038.5 0.2 1,038.3 - 1,038.3
Department of Defense 719.8 38.2 681.6 16.8 698.4
Department of Veterans Affairs 272.5 4.8 267.7 79.2 346.9
Interest on Treasury Securities Held by the Public 357.3 - 357.3 - 357.3
Department of the Treasury 150.5 21.9 128.6 - 128.6
Department of Agriculture 137.0 6.6 130.4 - 130.4
Department of Education 79.2 31.4 47.8 - 47.8
Office of Personnel Management 101.3 23.4 77.9 26.2 104.1
Department of Transportation 79.0 1.1 77.9 - 77.9
Department of Homeland Security 78.3 14.8 63.5 1.1 64.6
Department of Energy 147.0 6.1 140.9 - 140.9
Department of Labor 41.1 - 41.1 - 41.1
Security Assistance Accounts 37.9 - 37.9 - 37.9
Department of Justice 35.4 1.9 33.5 - 33.5
Department of State 32.3 4.8 27.5 1.5 29.0
Department of Housing and Urban Development 43.3 1.8 41.5 - 41.5
National Aeronautics and Space Administration 20.3 0.2 20.1 - 20.1
Department of the Interior 20.4 2.9 17.5 - 17.5
US Agency for International Development 13.1 - 13.1 - 13.1
Railroad Retirement Board 13.1 - 13.1 - 13.1
Federal Communication Commission 10.8 0.4 10.4 - 10.4
Department of Commerce 11.8 3.6 8.2 - 8.2
Environmental Protection Agency 8.3 0.4 7.9 - 7.9
Pension Benefit Guaranty Corporation (7.8) 16.7 (24.5) - (24.5)
National Science Foundation 7.3 - 7.3 - 7.3
US Postal Service 71.4 69.7 1.7 - 1.7
Smithsonian Institution 1.5 0.5 1.0 - 1.0
Millennium Challenge Corporation 0.8 - 0.8 - 0.8
National Credit Union Administration 0.9 0.6 0.3 - 0.3
US Nuclear Regulatory Commission 0.9 0.7 0.2 - 0.2
Farm Credit System Insurance Corporation 0.2 0.2 - - -
Small Business Administration 0.7 0.3 0.4 - 0.4
Overseas Private Investment Corporation - 0.1 (0.1) - (0.1)
Securities and Exchange Commission 1.8 2.3 (0.5) - (0.5)
National Railroad Retirement Investment Trust 0.1 1.9 (1.8) - (1.8)
Export-Import Bank of the US - 0.5 (0.5) - (0.5)
General Services Administration - 0.8 (0.8) - (0.8)
Tennessee Valley Authority 9.9 11.2 (1.3) - (1.3)
Federal Deposit Insurance Corporation 1.3 10.8 (9.5) - (9.5)
All other entities 18.7 1.5 17.2 - 17.2
Total 4,808.5 392.8 4,415.7 125.2 4,540.9
The accompanying notes are an integral part of these financial statements.
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Last modified 03/27/20