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

Statements of Operations and Changes in Net Position

These statements report the results of government operations (net operating costs). They include non-exchange revenues, which are generated from transactions that do not require a government entity to give value directly in exchange for the inflow of resources. The government does not “earn” the non-exchange revenue. These are generated principally by the government’s sovereign power to tax, levy duties, and assess fines and penalties. These statements also include the net cost reported in the Statements of Net Cost. They further include certain adjustments and unmatched transactions and balances that affect the net position. These statements present information for funds from dedicated collections and funds other than those from dedicated collections. Each of these types are presented on a consolidated basis whereby transactions within each fund type are eliminated. In order to present the activity on a government-wide basis, transactions between funds from dedicated collections and funds other than those from dedicated collections are eliminated.

Revenue

Inflows of resources to the government that the government demands or that it receives by donations are identified as non-exchange revenue. The inflows that it demands include individual income tax and tax withholdings, corporate income taxes, excise taxes, unemployment taxes, custom duties, and estate and gift taxes. The non-exchange revenue is recognized when collected and adjusted for the change in amounts receivable.

Individual income tax and tax withholdings include FICA/SECA taxes and other taxes.

Individual income tax and tax withholding and Corporate income tax include the TCJA, which imposed a one-time tax on previously unrepatriated foreign earnings at a reduced rate that taxpayers may elect to pay over an eight-year installment schedule.

Excise taxes consist of taxes collected for various items, such as airline tickets, gasoline products, distilled spirits and imported liquor, tobacco, firearms, and other items.

Other taxes and receipts include FRBs earnings, tax related fines, penalties and interest, and railroad retirement taxes.

Miscellaneous earned revenues consist of earned revenues received from the public with virtually no associated cost. These revenues include rents and royalties on the Outer Continental Shelf Lands resulting from the leasing and development of mineral resources on public lands.

Intra-governmental revenue represents interest earned from the investment of surplus dedicated collections, which finance the deficit spending of all other fund’s non-dedicated operations. These investments are recorded as intra-governmental debt holdings and are included in Note 13—Federal Debt and Interest Payable, in the table titled Intra-governmental Debt Holdings: Federal Debt Securities Held as Investments by Government Accounts. These interest earnings and the associated investments are eliminated in the consolidation process.

Net Cost of Government Operations

The net cost of government operations—gross cost (including gains/losses from changes in assumptions) less earned revenue—flows through from the Statements of Net Cost.

Intra-governmental Transfers

Intra-governmental transfers are transfers between funds other than those from dedicated collections and funds from dedicated collections, such as intra-governmental interest and amounts required by statute to be transferred from the General Fund to funds from dedicated collections. These intra-governmental transfers include appropriations, transfers, and other financing sources. These amounts are labeled as "other changes in fund balance" in Note 23—Funds from Dedicated Collections.

Net Operating Cost

The net operating cost equals revenue less net cost of government operations (that flows from the Statement of Net Cost).

Net Position, Beginning of Period

The net position, beginning of period, reflects the amount reported on the prior year’s Balance Sheet as of the end of that fiscal year. The net position, beginning of period, is shown at the combined level by fund type for FY 2020 and adjusted through changes in accounting principle to report at a consolidated level by fund type. See Note 23—Funds from Dedicated Collections for additional information.

Adjustments to beginning net position may include corrections of material errors or changes in accounting principles. See Note 1.V—Changes in Accounting Principle and Note 1.W—Correction of Errors for additional information.

Unmatched transactions and balances are adjustments needed to bring the change in net position into balance due primarily to unresolved intra-governmental differences. See Note 1.U—Unmatched Transactions and Balances for additional information.

The unmatched transactions are to make the sum of net operating costs and adjustments to beginning net position for the year equal to the change in net position balance. The unmatched balances are included in the net position, funds other than those from dedicated collections on the Balance Sheet.

Net Position, End of Period

The net position, end of period, reflects the amount as of the end of the fiscal year. The net position for funds from dedicated collections is separately shown.

United States Government
Statement of Operations and Changes in Net Position
for the Year Ended September 30, 2021 (Consolidated)

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	Funds other than those from Dedicated Collections	Funds from Dedicated Collections (Note 23)	Eliminations	Total
(In billions of dollars)	2021
Revenue (Note 20):
Individual income tax and tax withholdings	2,002.0	1,274.3	-	3,276.3
Corporate income taxes	456.2	-	-	456.2
Excise taxes	28.6	52.0	-	80.6
Unemployment taxes	6.1	44.2	-	50.3
Customs duties	80.0	0.1	-	80.1
Estate and gift taxes	27.1	-	-	27.1
Other taxes and receipts	163.4	27.3	-	190.7
Miscellaneous earned revenues	94.4	0.2	-	94.6
Intra-governmental revenue	-	106.1	(106.1)	-
Total Revenue	2,857.8	1,504.2	(106.1)	4,255.9

Net Cost of Government Operations:
Net cost	5,165.3	2,185.5	-	7,350.8
Intra-governmental cost	106.1	-	(106.1)	-
Total net cost	5,271.4	2,185.5	(106.1)	7,350.8

Intra-governmental transfers	(693.7)	693.7	-	-

Net operating (cost)/revenue	(3,107.3)	12.4	-	(3,094.9)

Net position, beginning of period	(30,265.8)	3,474.4	-	(26,791.4)
Adjustments to beginning net position net position
Changes in accounting principle (Note 1.V)	0.7	-	-	0.7
Net operating (cost)/revenue	(3,107.3)	12.4	-	(3,094.9)
Unmatched transactions and balances
(Note 1.U)	(0.2)	-	-	(0.2)
Net position, end of period	(33,372.6)	3,486.8	-	(29,885.8)
The accompanying notes are an integral part of these financial statements.

United States Government
Statement of Operations and Changes in Net Position
for the Year Ended September 30, 2020 (Consolidated) (Restated)