Financial Statements of the United States Government for the Fiscal Years Ended September 30, 2017, and 2016
Statements of Net Cost
These statements present the net cost of the Government operations for fiscal years 2017 and 2016, 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 agencies’ 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 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.
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, 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 from the agency’s financial statements primarily because of reallocations completed at the governmentwide level which are listed below.
- Benefit program costs.
- Intragovernmental eliminations, as adjusted for buy/sell costs and related revenues.
- Imputed costs.
Because of its specific function, most of the benefit program costs originally associated with the Office of Personnel Management (OPM) have been reallocated to the 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 costs from health and pension plan amendments, and the actuarial gains and losses, if applicable.
General Services Administration (GSA) is the primary provider of goods and services to federal agencies. 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 agency are added to, and subtracted from, respectively, the individual agency 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 agencies, are added to the individual agency non-federal net cost amounts.
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
Statement of Net Cost
for the Year Ended September 30, 2017
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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 | 1,186.8 | 101.1 | 1,085.7 | 0.4 | 1,086.1 |
Social Security Administration | 999.1 | 0.3 | 998.8 | - | 998.8 |
Department of Defense | 718.7 | 77.4 | 641.3 | 24.1 | 665.4 |
Department of Veterans Affairs | 254.8 | 4.8 | 250.0 | 229.7 | 479.7 |
Interest on Treasury Securities Held by the Public | 296.3 | - | 296.3 | - | 296.3 |
Office of Personnel Management | 90.1 | 22.3 | 67.8 | 102.5 | 170.3 |
Department of the Treasury | 179.5 | 37.9 | 141.6 | - | 141.6 |
Department of Agriculture | 142.9 | 8.1 | 134.8 | - | 134.8 |
Department of Transportation | 79.6 | 0.9 | 78.7 | - | 78.7 |
Department of Housing and Urban Development | 70.9 | 1.7 | 69.2 | - | 69.2 |
Department of Homeland Security | 77.3 | 12.3 | 65.0 | (0.5) | 64.5 |
Department of Education | 84.4 | 30.6 | 53.8 | - | 53.8 |
Department of Labor | 43.5 | - | 43.5 | - | 43.5 |
Department of Energy | 46.9 | 5.6 | 41.3 | - | 41.3 |
Defense Security Cooperation Agency | 36.7 | - | 36.7 | - | 36.7 |
Department of Justice | 34.2 | 1.6 | 32.6 | - | 32.6 |
Department of State | 31.3 | 4.8 | 26.5 | 0.3 | 26.8 |
Federal Communications Commission | 20.7 | 0.4 | 20.3 | - | 20.3 |
National Aeronautics and Space Administration | 19.6 | 0.2 | 19.4 | - | 19.4 |
Department of the Interior | 20.2 | 2.7 | 17.5 | - | 17.5 |
U.S. Agency for International Development | 13.2 | - | 13.2 | - | 13.2 |
Department of Commerce | 12.9 | 3.3 | 9.6 | - | 9.6 |
Railroad Retirement Board | 13.0 | 3.8 | 9.2 | - | 9.2 |
Environmental Protection Agency | 8.8 | 0.4 | 8.4 | - | 8.4 |
National Science Foundation | 7.1 | - | 7.1 | - | 7.1 |
U.S. Postal Service | 71.9 | 68.7 | 3.2 | - | 3.2 |
Smithsonian Institution | 0.9 | - | 0.9 | - | 0.9 |
Millennium Challenge Corporation | 0.7 | - | 0.7 | - | 0.7 |
U.S. Nuclear Regulatory Commission | 0.9 | 0.8 | 0.1 | - | 0.1 |
Overseas Private Investment Corporation | - | 0.1 | (0.1) | - | (0.1) |
Securities and Exchange Commission | 1.9 | 2.1 | (0.2) | - | (0.2) |
Small Business Administration | 0.1 | 0.3 | (0.2) | - | (0.2) |
Farm Credit System Insurance Corporation | - | 0.4 | (0.4) | - | (0.4) |
General Services Administration | 0.2 | 0.6 | (0.4) | - | (0.4) |
National Credit Union Administration | (0.1) | 0.7 | (0.8) | - | (0.8) |
Tennessee Valley Authority | 9.9 | 10.7 | (0.8) | - | (0.8) |
Export-Import Bank of the United States | 0.4 | 1.2 | (0.8) | - | (0.8) |
Pension Benefit Guaranty Corporation | 9.8 | 14.1 | (4.3) | - | (4.3) |
Federal Deposit Insurance Corporation | 1.5 | 10.6 | (9.1) | - | (9.1) |
All other entities | 22.7 | 1.4 | 21.3 | - | 21.3 |
Total | 4,609.3 | 431.9 | 4,177.4 | 356.5 | 4,533.9 |
The accompanying notes are an integral part of these financial statements. |
United States Government
Statement of Net Cost
for the Year Ended September 30, 2016 (Restated)
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 | 1,170.0 | 96.1 | 1,073.9 | 0.4 | 1,074.3 |
Social Security Administration | 982.1 | 0.3 | 981.8 | - | 981.8 |
Department of Defense | 721.9 | 55.1 | 666.8 | (57.6) | 609.2 |
Department of Veterans Affairs | 276.5 | 4.9 | 271.6 | 377.5 | 649.1 |
Interest on Treasury Securities Held by the Public | 273.0 | - | 273.0 | - | 273.0 |
Office of Personnel Management | 60.2 | 21.3 | 38.9 | (47.1) | (8.2) |
Department of the Treasury | 148.7 | 19.4 | 129.3 | - | 129.3 |
Department of Agriculture | 142.1 | 8.5 | 133.6 | - | 133.6 |
Department of Transportation | 80.7 | 0.9 | 79.8 | - | 79.8 |
Department of Housing and Urban Development | 31.2 | 1.7 | 29.5 | - | 29.5 |
Department of Homeland Security | 66.5 | 13.1 | 53.4 | 0.2 | 53.6 |
Department of Education | 103.1 | 29.9 | 73.2 | - | 73.2 |
Department of Labor | 46.4 | - | 46.4 | - | 46.4 |
Department of Energy | 68.6 | 4.3 | 64.3 | - | 64.3 |
Defense Security Cooperation Agency | 36.0 | - | 36.0 | - | 36.0 |
Department of Justice | 38.7 | 1.6 | 37.1 | - | 37.1 |
Department of State | 32.6 | 4.7 | 27.9 | (0.1) | 27.8 |
Federal Communications Commission | 10.4 | 0.5 | 9.9 | - | 9.9 |
National Aeronautics and Space Administration | 20.0 | 0.2 | 19.8 | - | 19.8 |
Department of the Interior | 19.2 | 2.5 | 16.7 | - | 16.7 |
U.S. Agency for International Development | 12.6 | - | 12.6 | - | 12.6 |
Department of Commerce | 12.5 | 3.3 | 9.2 | - | 9.2 |
Railroad Retirement Board | 15.3 | 3.9 | 11.4 | - | 11.4 |
Environmental Protection Agency | 9.0 | 0.4 | 8.6 | - | 8.6 |
National Science Foundation | 7.0 | - | 7.0 | - | 7.0 |
U.S. Postal Service | 77.2 | 70.4 | 6.8 | - | 6.8 |
Smithsonian Institution | 0.8 | - | 0.8 | - | 0.8 |
Millennium Challenge Corporation | 0.6 | - | 0.6 | - | 0.6 |
U.S. Nuclear Regulatory Commission | 0.9 | 0.8 | 0.1 | - | 0.1 |
Overseas Private Investment Corporation | - | 0.1 | (0.1) | - | (0.1) |
Securities and Exchange Commission | 1.7 | 2.0 | (0.3) | - | (0.3) |
Small Business Administration | 0.5 | 0.3 | 0.2 | - | 0.2 |
Farm Credit System Insurance Corporation | - | 0.3 | (0.3) | - | (0.3) |
General Services Administration | 0.6 | 0.7 | (0.1) | - | (0.1) |
National Credit Union Administration | (0.7) | 0.1 | (0.8) | - | (0.8) |
Tennessee Valley Authority | 9.3 | 10.6 | (1.3) | - | (1.3) |
Export-Import Bank of the United States | (0.2) | 1.2 | (1.4) | - | (1.4) |
Pension Benefit Guaranty Corporation | 19.4 | 14.0 | 5.4 | - | 5.4 |
Federal Deposit Insurance Corporation | 0.2 | 9.5 | (9.3) | - | (9.3) |
All other entities | 21.1 | 1.3 | 19.8 | - | 19.8 |
Total | 4,515.7 | 383.9 | 4,131.8 | 273.3 | 4,405.1 |
The accompanying notes are an integral part of these financial statements. |
- A Message from the Secretary of the Treasury - PDF version
- Table of Contents - PDF version
- Results in Brief - PDF version
- The Nation By The Numbers
- Executive Summary - PDF version
- Management's Discussion & Analysis - PDF version
- Statement of the Comptroller General of the United States - PDF version
- Financial Statements - PDF version
- Statements of Net Cost
- Statements of Operations and Changes in Net Position
- Reconciliations of Net Operating Cost and Budget Deficit
- Statements of Changes in Cash Balance from Budget and Other Activities
- Balance Sheets
- Statements of Long-Term Fiscal Projections
- Statements of Social Insurance and Changes in Social Insurance Amounts
- Statements of Changes in Social Insurance Amounts
- Notes to the Financial Statements - PDF version
- Note 1. Summary of Significant Accounting Policies - PDF version
- Note 2. Cash and Other Monetary Assets - PDF version
- Note 3. Accounts and Taxes Receivable, Net - PDF version
- Note 4. Loan Receivable and Loan Guarantee Liabilities, Net - PDF version
- Note 5. Inventories and Related Property, Net - PDF version
- Note 6. Property, Plant, and Equipment, Net - PDF version
- Note 7. Debt and Equity Securities - PDF version
- Note 8. Investments in Government-Sponsored Enterprises - PDF version
- Note 9. Other Assets - PDF version
- Note 10. Accounts Payable - PDF version
- Note 11. Federal Debt Securities Held by the Public and Accrued Interest - PDF version
- Note 12. Federal Employee and Veteran Benefits Payable - PDF version
- Note 13. Environmental and Disposal Liabilities - PDF version
- Note 14. Benefits Due and Payable - PDF version
- Note 15. Insurance and Guarantee Program Liabilities - PDF version
- Note 16. Other Liabilities - PDF version
- Note 17. Collections and Refunds of Federal Revenue - PDF version
- Note 18. Contingencies - PDF version
- Note 19. Commitments - PDF version
- Note 20. Funds from Dedicated Collections - PDF version
- Note 21. Fiduciary Activities - PDF version
- Note 22. Social Insurance - PDF version
- Note 23. Long-Term Fiscal Projections - PDF version
- Note 24. Stewardship Land and Heritage Assets - PDF version
- Note 25. Subsequent Events - PDF version
- Required Supplementary Information (Unaudited) - PDF version
- The Sustainability of Fiscal Policy - PDF version
- Social Insurance - PDF version
- Deferred Maintenance and Repairs - PDF version
- Other Claims for Refunds - PDF version
- Tax Assessments - PDF version
- Federal Oil and Gas Resources - PDF version
- Federal Natural Resources Other than Oil and Gas - PDF version
- Other Information (Unaudited) - PDF version
- Tax Burden - PDF version
- Tax Gap - PDF version
- Unmatched Transactions and Balances - PDF version
- Required Supplementary Stewardship Information (Unaudited) - PDF version
- Appendices
- Appendix A: Reporting Entity - PDF version
- Appendix B: Acronyms - PDF version
- U.S. Government Accountability Office Independent Auditor's Report - PDF version
- List of Social Insurance Charts - PDF version
- Related Resources
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