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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, 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)

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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 1,170.0 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.

Last modified 02/09/23