Financial Statements of the United States Government for the Fiscal Years Ended September 30, 2023, and 2022
Reconciliations of Net Operating Cost and Budget Deficit
These statements reconcile the results of operations (net operating cost) on the Statements of Operations and Changes in Net Position to the budget deficit (result of outlays exceeding receipts during a particular fiscal year). The premise of the reconciliation is that accrual accounting and budgetary accounting often share much of the same transactional data. However, some transactions differ between the two bases of accounting and are presented as reconciling items from the net operating cost to the budget deficit.
Receipts and outlays in the Budget are measured primarily on a cash basis and differ from the accrual basis of accounting used in the Financial Report. Refer to Note 1.B—Basis of Accounting and Revenue Recognition for additional information on the accrual basis of accounting. These statements begin with the net results of operations (net operating cost) and report activities where the basis of accounting for the components of net operating cost and the budget deficit differ.
Some presentations of the budget deficit make the distinction between on-budget and off-budget totals. On-budget totals reflect the transactions of all government entities, except those excluded from the Budget by law. Off-budget totals reflect the transactions of government entities that are excluded from the on-budget totals by law. Under current law, the off-budget totals include the Social Security Trust Funds and USPS. The budget deficit, as presented in the Financial Report, combines the on-budget and off-budget totals to derive consolidated totals for federal activity.
Components of Net Operating Cost Not Part of the Budget Deficit
This information includes the operating components, such as the changes in benefits payable for veterans, military and civilian employees, environmental and disposal liabilities, and depreciation expense, not included in the budget results.
Components of the Budget Deficit Not Part of Net Operating Cost
This information includes the budget components, such as the acquisition of capital assets (that are recorded as outlays in the budget when cash is disbursed and reflected in net operating cost through depreciation expense over the useful life of the asset) and increases in other assets that are not included in the operating results.
United States Government
Reconciliations of Net Operating Cost and Budget Deficit
for the Years Ended September 30, 2023, and 2022
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(In billions of dollars) | 2023 | 2022* |
---|---|---|
Net operating cost | (3,417.2) | (4,171.0) |
Components of net operating cost not part of the budget deficit: | ||
Excess of accrual-basis expenses over budget outlays: | ||
** Federal employee and veteran benefits payable: | ||
Pension and accrued benefits | 303.7 | 774.1 |
Veterans compensation and burial benefits | 1,130.7 | 1,662.8 |
Post-retirement health and accrued benefits | 49.5 | 176.3 |
Other benefits | 31.6 | 15.8 |
Subtotal - federal employee and veteran benefits payable | 1,515.5 | 2,629.0 |
** Insurance and guarantee program liabilities | (5.2) | (25.3) |
** Environmental and disposal liabilities | 19.0 | 13.0 |
** Accounts payable | 9.6 | (8.5) |
** Benefits due and payable | 37.6 | 14.4 |
** Advances from others and deferred revenue | 108.1 | 45.2 |
** Other liabilities | 178.1 | (182.0) |
Subtotal - excess of accrual-basis expenses over budget outlays | 1,862.7 | 2,485.8 |
Amortized expenses not included in budget outlays: | ||
Property, plant, and equipment depreciation expense | 77.9 | 78.3 |
Other expenses that are not reported as budget outlays: | ||
Property, plant, and equipment disposals and revaluations | 9.1 | 15.5 |
Excess of accrual-basis revenue over budget receipts: | ||
Accounts receivable, net | (18.6) | (20.8) |
Taxes receivable, net | 55.0 | 65.5 |
Other losses/(gains) and cost/(revenue) that are not budget receipts: | ||
** Investments in government-sponsored enterprises | (16.7) | (2.8) |
Subtotal - components of net operating cost not part of budget deficit | 1,969.4 | 2,621.5 |
Components of the budget deficit that are not part of net operating cost: | ||
Budget receipts not included in net operating cost: | ||
Credit reform and other loan activities | 24.5 | (58.5) |
Budget outlays not included in net operating cost: | ||
Acquisition of capital assets | (124.5) | (114.4) |
** Investments | (0.5) | 31.3 |
** Inventory and related property, net | (16.1) | (7.7) |
** Advances and prepayments | 45.4 | 71.3 |
** Other assets | (157.7) | 1.0 |
Subtotal - components of the budget deficit that are not part of net operating cost | (228.9) | (77.0) |
Adjustments to beginning net position | (0.8) | (4.3) |
Other: | ||
Allocations of special drawing rights | (4.0) | 14.8 |
Effect of uninvested principal from the TSP's G Fund | - | 156.7 |
All other reconciling items | (13.7) | 83.8 |
Total other | (17.7) | 255.3 |
Budget deficit | (1,695.2) | (1,375.5) |
* Certain amounts differ from prior year reported amounts due to a change in presentation (see Financial Statement Note 1.W). | ||
** The amounts represent the year over year net change in the Balance Sheet line items. | ||
The accompanying notes are an integral part of these financial statements. |
- Current Report: Fiscal Year 2023 - PDF version
- A Message from the Secretary of the Treasury - PDF version
- Table of Contents - 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
- Statement 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 Receivable, Net - PDF version
- Note 4. Loans Receivable, Net and Loan Guarantee Liabilities - PDF version
- Note 5. Inventory and Related Property, Net - PDF version
- Note 6. General Property, Plant, and Equipment, Net - PDF version
- Note 7. Investments - PDF version
- Note 8. Investments in Government-Sponsored Enterprises - PDF version
- Note 9. Advances and Prepayments - PDF version
- Note 10. Other Assets - PDF version
- Note 11. Accounts Payable - PDF version
- Note 12. Federal Debt and Interest Payable - PDF version
- Note 13. Federal Employee and Veteran Benefits Payable - PDF version
- Note 14. Environmental and Disposal Liabilities - PDF version
- Note 15. Benefits Due and Payable - PDF version
- Note 16. Insurance and Guarantee Program Liabilities - PDF version
- Note 17. Advances from Others and Deferred Revenue - PDF version
- Note 18. Other Liabilities - PDF version
- Note 19. Collections and Refunds of Federal Revenue - PDF version
- Note 20. Commitments - PDF version
- Note 21. Contingencies - PDF version
- Note 22. Funds from Dedicated Collections - PDF version
- Note 23. Fiduciary Activities - PDF version
- Note 24. Long-Term Fiscal Projections - PDF version
- Note 25. Social Insurance - PDF version
- Note 26. Stewardship Property, Plant, and Equipment - PDF version
- Note 27. Disclosure Entities and Related Parties - PDF version
- Note 28. Public-Private Partnerships - PDF version
- Note 29. COVID-19 Activity - PDF version
- Note 30. 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
- Land and Permanent Land Rights - PDF version
- Other Information (Unaudited) - PDF version
- Tax Burden - PDF version
- Tax Gap - PDF version
- Tax Expenditures - PDF version
- Unmatched Transactions and Balances - PDF version
- Appendices
- Appendix A: Reporting Entity - PDF version
- Appendix B: Glossary of Acronyms - PDF version
- U.S. Government Accountability Office Independent Auditor's Report - PDF version
- Related Resources
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