Agency 

Financial 

Report 2021
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USDA | 2021 Agency Financial Report i 

USDA’s 

Non-Discrimination Statement 

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil 

rights regulations and policies, USDA, its Mission Areas, agencies, staff offices, employees, and 

institutions participating in or administering USDA programs are prohibited from discriminating 

based on race, color, national origin, religion, sex, gender identity (including gender expression), 

sexual orientation, disability, age, marital status, family/parental status, income derived from a 

public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, 

in any program or activity conducted or funded by USDA (not all bases apply to all programs). 

Remedies and complaint filing deadlines vary by program or incident. 

Program information may be made available in languages other than English. Persons with 

disabilities who require alternative means of communication to obtain program information 

(e.g., Braille, large print, audiotape, or American Sign Language) should contact the responsible 

Mission Area, agency, or staff office; the USDA TARGET Center at (202) 720-2600 (voice and 

TTY); or the Federal Relay Service at (800) 877-8339. 

To file a program discrimination complaint, a complainant should complete a Form AD 3027, 

USDA Program Discrimination Complaint Form, which can be obtained online, from any USDA 

office, by calling (866) 632-9992, or by writing a letter addressed to USDA. The letter must 

contain the complainant’s name, address, telephone number, and a written description of the 

alleged discriminatory action in sufficient detail to inform the Assistant Secretary for Civil 

Rights about the nature and date of an alleged civil rights violation. The completed AD 3027 

form or letter must be signed and submitted to USDA by: 

(1) Mail: 

U.S. Department of Agriculture 

Executive Director 

Office of the Assistant Secretary for Civil Rights 

Center for Civil Rights Enforcement 

1400 Independence Avenue, SW 

Mail Stop 9430 

Washington, D.C. 20250-9410

(2) Efax: 

(833) 256-1665 

(3) Email: 

ProgramComplaints@usda.gov

Please attach a signed AD-3027 complaint 

form or letter to the email. 
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USDA | 2021 Agency Financial Report iii

Table of Contents 

Message from Secretary Vilsack ................................................................................................. 1

Section I Management’s Discussion and Analysis ...................................................................... 5

USDA Organization Chart ........................................................................................................ 6

USDA Mission Areas and Staff Offices ..................................................................................... 7

USDA Program Performance ................................................................................................. 10

Future Demands, Risks, Uncertainties, Events, Conditions, and Trends ............................... 34

Analysis of Financial Statements and Stewardship Information ............................................ 36

Statement of Assurance ........................................................................................................ 46

Federal Managers’ Financial Integrity Act Report on Management Control......................... 47

Compliance with Laws and Regulations ................................................................................ 53

Federal Financial Management Improvement Act Report on 

Financial Management Systems ......................................................................................... 55

Financial Management Systems Strategy .............................................................................. 57

Section II Financial Information ................................................................................................ 65

Message from the Office of the Chief Financial Officer ........................................................ 65

Independent Auditors Report................................................................................................ 68

Agency Response to Auditors Report .................................................................................... 80

Financial Statements ............................................................................................................. 81

Notes to the Financial Statements ........................................................................................ 86

Required Supplementary Information ................................................................................. 170

Section III Other Information .................................................................................................. 177

USDA Management Challenges ........................................................................................... 177

Summary of Financial Statement Audit and Management Assurances............................... 178

Payment Integrity Information Act of 2019 –

Improper Payments Overview Payment Integrity ............................................................. 180

Civil Monetary Penalties ...................................................................................................... 181

Grants Program ................................................................................................................... 199

Abbreviations–Acronyms........................................................................................................ 201
iv Table of Contents 

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USDA | 2021 Agency Financial Report 1

Message from

Secretary Vilsack

The U.S. Department of Agriculture (USDA or the Department) 

respectfully submits the fiscal year (FY) 2021 Agency Financial Report, 

fulfilling our responsibility to the American people, President Biden, and 

the U.S. Congress.

It is a pleasure to be back at USDA with the opportunity to serve the 

American people as Secretary. This Department touches the lives of all 

Americans each day in so many positive ways. I am grateful for the 

chance to once again work in partnership with the tens of thousands of 

dedicated public servants in USDA to bring meaningful change and improve the lives of all 

Americans through the Department’s programs and services. 

As we confront many historical challenges associated with a continuing global pandemic, we are 

also presented with even greater opportunities to deliver fundamental services to the American 

people in this pivotal time. We will build back better, stronger, and more resilient and equitable 

than ever before, and we will do so by recovering from the pandemic, reducing hunger and food 

insecurity, working to ensure racial justice and equity, building up rural America’s economy, and 

addressing climate change. 

In 2021, USDA began that work to build back better than before. 

The COVID-19 pandemic led to massive disruption for growers and food workers and exposed a 

food system that was rigid, consolidated, and fragile. To aid in the recovery from the COVID-19 

pandemic, USDA launched Pandemic Assistance for Producers. While USDA has long provided 

a safety net to ensure producers can survive an unprofitable year, this time, we set out with the 

mission of reaching a broader set of producers than in previous COVID-19 aid programs. 

USDA dedicated approximately $6 billion toward new programs to put a greater emphasis on 

outreach to small and socially disadvantaged producers, specialty crop and organic producers, 

timber harvesters, and support for the food supply chain and producers of renewable energy, 

among others.

Through the American Rescue Plan, USDA delivered nutrition assistance to millions of adults 

and children. We provided access to the Pandemic Electronic Benefit Transfer program for the 

duration of the health emergency, including through the summer, to allow families with children 

receiving school meals to more easily purchase healthy food during the pandemic. We also 
2 Message from the Secretary 

extended a 15 percent increase in Supplemental Nutrition Assistance Program benefits for all 

participants through September 30, 2021; provided $880 million to expand access to fruits and 

vegetables for mothers and infants, and made investments in innovation to the Special 

Supplemental Nutrition Program for Women, Infants, and Children; invested $37 million for 

senior nutrition through the Commodity Supplemental Food Program; and invested $1 billion in 

nutrition assistance for the territories. 

Through the American Rescue Plan and the Consolidated Appropriations Act, USDA announced 

an investment of up to $1 billion in Emergency Food Assistance to serve as a bridge from 

pandemic assistance to food system transformation. The funding is focused on supporting and 

expanding the emergency food network so states, food banks, and local organizations can 

reliably serve their communities and reach rural, remote, and underserved communities. 

In addition to providing assistance to resolve lingering challenges directly associated with the 

COVID-19 pandemic, USDA is making a major commitment to rebuild our food system as we 

Build Back Better. In FY 2021, through the Build Back Better initiative, USDA began investing 

more than $4 billion to strengthen and transform the food system in four major areas: (1) food 

production, (2) food processing, (3) food distribution and aggregation, and (4) markets and 

consumers. The Build Back Better initiative will make meaningful investments to build a food 

system that is more resilient against shocks, delivers greater value to growers and workers, and 

offers consumers an affordable selection of healthy food that is produced and sourced locally and 

regionally by farmers and processors from diverse backgrounds. 

As part of the Build Back Better initiative, we announced the investment of $500 million in 

expanding meat and poultry processing capacity. We also announced more than $150 million for 

existing small and very small processing facilities to help them weather COVID, compete in the 

marketplace, and have the support needed to reach more customers. These investments will add 

resilience to our food supply chain and level the playing field for farmers and ranchers. 

Rural American communities were hit hard during the pandemic. Through the American Rescue 

Plan, USDA is implementing funding to invest in the people of rural America. We are investing 

$100 million through September 2022 in rental assistance for low-income and elderly borrowers 

and an additional $39 million through September 2023 to help refinance direct loans under the 

Single-Family Housing Loan Program and the Single-Family Housing Repair Loans and Grants. 

We also made available up to $500 million in grants to help rural health care, Tribes, and 

communities expand access to COVID-19 vaccines, health care services, and nutrition assistance. 

At USDA, we are recommitting ourselves to the values of equity and inclusion rooted in justice 

and equal opportunity for our employees and those we serve. This policy includes recognizing 

opportunities within the Department that ensure historically underserved groups more fully 

access and participate in USDA programs and services. 
USDA | 2021 Agency Financial Report 3

To advance this work, in FY 2021, USDA made available $2 million to establish cooperative 

agreements to provide outreach and technical assistance to historically underserved farmers and 

ranchers through the Pandemic Assistance for Producers initiative. 

In accordance with fulfilling provisions included in the bipartisan 2018 Farm Bill, USDA 

established the Heirs’ Property Relending Program, making available $67 million in competitive 

loans. By gaining legal title to the land, heirs will gain access to a wide range of government 

assistance. USDA also awarded $21.8 million to the 1890 Land-Grant Institutions National 

Program to support research at Historically Black Colleges and Universities. The awards will 

support 58 projects at Historically Black Colleges and Universities to strengthen research, 

extension, and teaching in the food and agricultural sciences. 

USDA launched our first-ever USDA Racial Justice and Equity Working Group to identify gaps 

and inadequacies in USDA systems and processes. The Working Group is assessing how USDA 

collects and uses data, as well as a broader holistic assessment of equity across USDA programs 

and services, including procurement, policy, and regulatory actions; how resources are used in 

service of equity and civil rights; and how and where the Department conducts stakeholder 

outreach. USDA is currently creating the Equity Commission in accordance with the Federal 

Advisory Committee Act. Since January, USDA staff have also worked across Mission Areas, 

Agencies, and Offices to advance the goals of various equity-related executive orders, 

reinforcing messages, and sharing learnings and best practices. 

USDA is engaged in a whole-of-government effort to combat the climate crisis and conserve and 

protect our Nation’s lands, biodiversity, and natural resources, including our soil, air, and water. 

We are committed to being a partner to build more resilient communities and putting the United 

States in a leadership position on climate change mitigation. 

As co-lead of the Biden-Harris Administration’s Interagency Drought Relief Working Group, in 

conjunction with the U.S. Department of the Interior, USDA and our partners are dedicated to 

addressing worsening drought conditions in the West and supporting farmers, Tribes, and 

communities impacted by ongoing water shortages. In addition, USDA is the permanent chair of 

the National Drought Resilience Partnership, providing another opportunity to develop long-term 

measures to respond to climate change, build more resilient communities, and protect the 

natural environment. 

As we look to solutions to develop a climate-smart agriculture and forestry strategy, USDA has 

adapted some of our programs to provide immediate relief for climate-impacted producers. 

We invested $25 million for new pilots to assist agricultural producers impacted by worsening 

drought conditions. USDA’s Natural Resource Conservation Services is offering $41.8 million

through the Environmental Quality Incentives Program to help agricultural producers in Arizona, 

California, Colorado, and Oregon recover from the impacts of drought and build resiliency. 
4 Message from the Secretary

In FY 2021, USDA reached out to the public and asked for valuable input on a climate-smart 

agriculture and forestry strategy. Additionally, we invested $330 million in 85 locally driven, 

public-private partnerships to mitigate climate change and address other natural resource 

challenges through the Regional Conservation Partnership Program; allocated up to $25 million

for On-Farm Conservation Innovation Trials in 2021; allocated up to $15 million to support the 

development of new tools, approaches, practices, and technologies to further natural resource 

conservation on private lands through the Conservation Innovation Grants program; and 

allocated $10 million to support climate-smart agriculture and forestry through voluntary 

conservation practices in 10 targeted states. 

Each year brings unique challenges, and I am truly proud of the many ways USDA employees 

across the Nation have stepped up during 2021. They have continued to get the job done on 

behalf of Americans and support and grow our economy while strengthening rural communities. 

I know that together, we can continue to deliver efficient service while finding more ways to 

serve as efficient stewards of taxpayer dollars. 

Thank you for your interest in the Department. 

Thomas J. Vilsack

Secretary of Agriculture

November 12, 2021
USDA | 2021 Agency Financial Report 5 

Section I 

Management’s 

Discussion and Analysis 
USDA Organization Chart

6 Section I | Management’s Discussion and Analysis

SECRETARY

Deputy Secretary

Assistant Secretary for 

Civil Rights

Assistant Secretary for 

Congressional Relations

Assistant Secretary for 

Administration

Inspector 

General

General 

Counsel

Office 

of the Chief 

Financial 

Officer

Chief 

Economist

Office of the 

Executive 

Secretariat

Office of 

Budget and 

Program 

Analysis

Office of 

Communications

Office of 

Tribal 

Relations

Office of 

Partnerships 

& Public 

Engagement

• Higher Education 

• Strategic Initiatives

• 2501 Grants 

Office of 

Hearings 

and Appeals

Office of the 

Chief 

Information 

Officer

Under Secretary for 

Farm Production 

and Conservation

• FPAC Business Center

• Farm Services 

Agency

• Risk Management 

Agency

• Natural Resources 

Conservation Service

Under Secretary for 

Food, Nutrition, 

and Consumer 

Services

• Food & Nutrition 

Service

Under Secretary for 

Food Safety

• Food Safety and 

Inspection Service

Under Secretary for 

Marketing and 

Regulatory 

Programs

• Agricultural 

Marketing Service

• Animal & Plant 

Health Inspection 

Service

Under Secretary for 

Natural Resources 

and Environment

• Forest Service

Under Secretary for 

Rural 

Development

• Rural Housing 

Service

• Rural Utility Service

• Rural Business 

Cooperative Service

Under Secretary 

for Research, 

Education, and 

Economics

• Office of the Chief 

Scientist

• Agricultural 

Research Service

• National Agricultural 

Statistical Service

• National Institute of 

Food & Agriculture

• Economic Research 

Service

Under Secretary for 

Trade and Foreign 

Agricultural Affairs

• Foreign Agricultural 

Service

• US Codex Office
USDA | 2021 Agency Financial Report 7 

USDA Mission Areas and Staff Offices 

Farm Production and Conservation 

Farm Production and Conservation (FPAC) is the Department’s focal point for the Nation’s 

farmers and ranchers and other stewards of private agricultural lands and non-industrial private 

forest lands. FPAC agencies implement programs designed to mitigate the significant risks of 

farming through crop insurance, conservation programs, farm safety net programs, lending, and 

disaster programs.

• Farm Production and Conservation Business Center

• Farm Service Agency (FSA)

• Natural Resources Conservation Service (NRCS)

• Risk Management Agency (RMA)

• Commodity Credit Corporation

Food, Nutrition, and Consumer Services 

Food, Nutrition, and Consumer Services works to harness the Nation’s agricultural abundance to 

reduce food insecurity and improve nutrition security in the United States. Its operating agency, 

the Food and Nutrition Service, administers federal domestic nutrition assistance programs and 

includes the Center for Nutrition Policy and Promotion, which links scientific research to the 

nutrition needs of consumers through science-based dietary guidance, nutrition policy 

coordination, and nutrition education. 

• Food and Nutrition Service (FNS)

Food Safety 

Food Safety and Inspection Service is the USDA public health agency responsible for protecting 

the public’s health by ensuring the safety of meat, poultry, and egg products. FSIS ensures food 

safety through the authorities of the Federal Meat Inspection Act, the Poultry Products Inspection 

Act, and the Egg Products Inspection Act, as well as humane animal handling through the 

Humane Methods of Slaughter Act. 

• Food Safety and Inspection Service (FSIS)
8 Section I | Management’s Discussion and Analysis 

Marketing and Regulatory Programs 

Marketing and Regulatory Programs (MRP) facilitates domestic and international marketing of 

U.S. agricultural products, protects U.S. plant and animal health, regulates genetically engineered 

organisms, administers the Animal Welfare Act, and carries out wildlife damage management 

activities. MRP agencies are active participants in setting national and international standards. 

• Agricultural Marketing Service (AMS)

• Animal and Plant Health Inspection Service (APHIS)

Natural Resources and Environment 

The mission of Natural Resources and Environment is to sustain the health, diversity, and 

productivity of the Nation’s forests and grasslands to meet the needs of present and future 

generations. We carry out our mission in partnership with States, Tribes, and communities across 

the country who steward our Nation’s forest and grasslands. 

• Forest Service (FS)

Research, Education, and Economics 

Research, Education and Economics is dedicated to the creation of a safe, sustainable, 

competitive U.S. food and fiber system, as well as strong communities, families, and youth 

through integrated research, analysis, and education. 

• Agricultural Research Service (ARS)

• Economic Research Service (ERS)

• National Agricultural Statistics Service (NASS)

• National Institute of Food and Agriculture (NIFA)

• Office of the Chief Scientist (OCS)

Rural Development 

Rural Development fosters opportunity and economic security for people and communities in 

rural America through a broad range of investments. These investments open doors to better 

jobs, create access to innovation and technology, while promoting the promise of rural 

prosperity, equity, and climate resilience. The mission area is a catalyst for locally driven 

economic development strategies that build on the diverse assets and needs of rural places, 

including improving high-speed internet access; providing affordable rural housing; connecting 

rural skill sets to jobs of the future; modernizing roads, bridges, and water systems; and ensuring 

communities have access to health care. Rural Development provides tools and resources such as 
USDA | 2021 Agency Financial Report 9 

loans, grants, and strong community partnerships that ensure rural families, businesses, and 

communities can prosper today and in the future. 

• Rural Business Service

• Rural Utilities Service

• Rural Housing Service

Trade and Foreign Agricultural Affairs 

Trade and Foreign Agricultural Affairs’ (TFAA) role is to provide our farmers and ranchers with 

opportunities to compete in the global marketplace. TFAA is the Department’s lead on trade 

policy with primary responsibility to ensure USDA speaks with a unified voice on international 

agriculture issues domestically and abroad. Within TFAA, the Foreign Agricultural Service is the 

lead U.S. agency tasked with promoting exports of U.S. agricultural products through market 

intelligence, trade policy, trade capacity building, and trade promotion programs. This work is 

carried out by staff in Washington as well as a global network of 93 offices covering 

177 countries. Also within TFAA, the U.S. Codex Office coordinates U.S. participation in the 

Codex Alimentarius Commission, a United Nations body that sets international food standards 

while protecting consumer health and ensuring fair trade practices. 

• Foreign Agricultural Service

• US Codex Office

USDA Staff Offices

Our offices provide support to Department officials and employees at all levels and they support 

our programs and services by working with our agencies, Congress, organizations, and tribal 

governments. 

To learn more about USDA Agencies and Mission Areas, please visit www.usda.gov/ouragency/about-usda/mission-areas. The most current data can be found on the USDA Website. 
10 Section I | Management’s Discussion and Analysis 

USDA Program Performance 

USDA Performance and Results for Fiscal Year 2021

The Government Performance and Results (GPRA) Modernization Act of 2010 requires agencies 

to update their strategic plan every 4 years. The U.S. Department of Agriculture’s (USDA or the 

Department) 2018–2022 Strategic Plan identifies the Department’s strategic goals and 

objectives. USDA reports annually on its progress toward its strategic objectives using 

Key Performance Indicators (KPIs) in the Annual Performance Plan and Report published in 

conjunction with the President’s Budget. 

USDA follows GPRA guidelines for reporting data quality. The data collected and used by the 

Department to measure performance utilize a standardized methodology. This methodology has 

been vetted by federally employed scientists and policymakers and, ultimately, the leadership 

and undersecretaries of each mission area. All attest to the completeness, reliability, and quality 

of the data. Mission Areas within USDA are responsible for certifying that the data provided 

undergo a thorough quality assurance process and provide assurance to the Performance 

Improvement Officer. Data quality information for the agency priority goal-related measures 

mentioned in this section can be found online at Performance.gov. 

For purposes of the Agency Financial Report (AFR), a performance summary is provided using 

KPIs and related program activities as a mechanism to gauge progress in achieving its mission. 

In fiscal year (FY) 2021, USDA had 38 key performance measures. 

The following exhibits and discussion provide a high-level description of the Department’s key 

focus areas that are tracked and managed through USDA’s performance management process. 

The exhibits provide historical KPIs and include a preliminary status in meeting performance 

targets for FY 2021 based on data gathered through the third quarter, where available. Final 

performance information and a detailed discussion of the Department’s FY 2021 performance 

results, assessment methodologies, metrics, external reviews, and documentation of performance 

data will be presented in the FY 2023 USDA Annual Performance Plan (APP) and FY 2021 

Annual Performance Report (APR). The report will be released with the President’s 2023 budget 

in February and will be available on the USDA Performance Improvement and Accountability

website. 
USDA | 2021 Agency Financial Report 11

Strategic Goal 1: 

Ensure USDA Programs are Delivered Efficiently, Effectively, 

with Integrity, and with a Focus on Customer Service 

USDA will modernize and consolidate 

Information Technology (IT) infrastructure and 

services and strengthen management and 

oversight of procurement, property, and finance to 

ensure resources are deployed as effectively and 

efficiently as possible. USDA will create a safe 

and modern space within which employees can 

work and feel empowered to find innovative 

solutions to serve customers’ needs and promote 

accountability and professional development. 

USDA will leverage the strength and talent of its 

employees and reduce regulatory and 

administrative burdens to allow agencies to focus 

on their customers. Improved customer service 

and employee engagement will create a more 

effective and accessible USDA for all its 

stakeholders. 

Performance Summary 

• USDA Fleet Management: Departmental 

Administration Office of Property and 

Environmental Management (OPEM) has led 

efforts to reduce the overall fleet inventory 

and continued the capped fleet size for 

FY 2021. OPEM established and worked with 

the agencies to create a 5-year fleet 

management plan that focused on replacing the USDA aging fleet that will support efforts for 

increased sustainability and utilization. In partnership with the General Services 

Administration (GSA), a portion of the aging fleet was converted to GSA leased vehicles. 

The subsequent increase in installations of telematics will result in additional monitoring for 

sustainability and utilization. Real property needs are being evaluated in light of the 

pandemic and workplace flexibilities, such as telework, which will affect the target setting. 

• Data Analytics and IT Modernization to Improve Program Delivery: A contract will be 

awarded to implement the IT roadmap, which is expected to be a 5–7 year effort and is 

dependent on the availability of funding. 

STRATEGIC OBJECTIVES 

Objective 1.1 

Modernize Information Technology 

Infrastructure, Facilities, and Support 

Services to Improve the Customer 

Experience 

Objective 1.2 

Maintain a High-Performing Workforce 

Through Employee Engagement and 

Empowerment 

Objective 1.3 

Reduce the Regulatory Burden and 

Streamline Processes 

Objective 1.4 

Improve Stewardship of Resources and 

Utilize Data-Driven Analyses to 

Maximize 
12 Section I | Management’s Discussion and Analysis 

• Technology Transfer: In FY 2020 and FY 2021, the Research, Education, and Economics 

(REE) mission area, the Office of the Chief Scientist (OCS) analytics, and dashboard team, 

and the Agricultural Research Service (ARS) Tech Transfer KPI team partnered together in 

efforts to streamline data collection and enhance data integrity. The teams are testing if 

automated calculations can be introduced to enhance data management efficiency. A gap was 

identified between the dashboard data sources (automated) and the historically reported data 

(manual). The OCS/REE KPI team is currently working to identify the cause of the data gap 

and consider options (including methodology updates) for rectifying it in FY 2022.

• Citations of REE Reports: As of Quarter (Q) 2, FY 2021, the National Agricultural 

Statistics Service (NASS) and Economic Research Service (ERS) combined KPI tracking fell 

slightly short of its target of 60 citations with an actual reporting of 55 citations. The metric 

has proven challenging for OCS/REE (NASS and ERS) to directly impact the results of the 

metric. Methods to improve the count of citations are naturally delayed considering research 

or data collection that takes place today would not be cited for some time. Alternative data 

sources are being considered for FY 2022. During FY 2020, both OCS/REE agencies worked 

with the REE analytics and dashboard team to build an automated dashboard that would 

begin tracking this metric in late FY 2021. 

• Agriculture Workforce Development: OCS/REE (NIFA) requests applicants to include this 

number in their project’s budget as part of their grant application. Those numbers were 

introduced as this metric’s initial iteration. Depending on legislative priorities, OCS/REE 

(NIFA) funding may also indirectly benefit students of all levels. Investments in curriculum 

development, faculty development, recruitment, and related activities enhance the 

agricultural literacy of the general population and support the development of a skilled 

agricultural workforce and cadre of scientists. In 2021, the REE analytics and dashboard 

team worked closely with the Ag Workforce Development KPI agency leads to test the data 

source automation against the manual calculations and historical data to determine if the 

automated calculation method is ready for introduction.
USDA | 2021 Agency Financial Report 13

Exhibit 1: Strategic Goal 1 Key Performance Indicators (KPI) 

KPI 

Historic Actuals Strategic Targets FY 21 Results as 

FY 18 FY 19 FY 20 FY 21 FY 22 of Q3 

Reduce the number of Tier 1 data 

centers across the Department 21 6 2 N/A1 N/A N/A 

Reduce the Department’s overall 

real property footprint through 

effective disposal and consolidation 

efforts (Million Square Feet). 

31.7 31.3 31.2 27.7 31.0 

Annual Measure 

update provided 

in APPR

Reduce the Department’s total 

number of fleet vehicles (Thousand) 27.7 27.1 37.9 36.5 36.5 

Annual Measure 

update provided 

in APPR

Technology Transfer Percentage 

(Number of USDA Patents Licensed/ 

Number of USDA Patents Issued) 

New in 

FY 2020 

New in 

FY 2020 26 35 35

Annual Measure 

update provided 

in APPR

Agriculture Workforce Development 

(Number of AFRI- supported 

undergraduate/graduate/postdoctoral students) 

New in 

FY 2020 

New in 

FY 2020 1,167 2,495 3,342 

Annual Measure 

update provided 

in APPR

Citations of REE Reports New in 

FY 2020 

New in 

FY 2020 134 122 134 82

AFRI = Agriculture and Food Research Initiative; FY = fiscal year; N/A = not available; Q = quarter; REE = 

Research, Education, and Economics. 

Notes: Preliminary status is based on progress toward KPI as of the third quarter. The USDA Annual 

Performance Plan and Report (APPR), to be published in February 2022, will show the final 

FY 2021 results. 

1 The metric was retired in FY 2020 because performance goal was met. 
14 Section I | Management’s Discussion and Analysis 

Strategic Goal 2: 

Maximize the Ability of American Agricultural Producers to 

Prosper by Feeding and Clothing the World 

A strong and prosperous agricultural sector is 

essential to the well-being of the U.S. economy. 

America’s farmers and ranchers ensure a reliable 

food supply, support job growth, and promote 

economic development. To maintain a competitive 

agricultural sector, USDA will support farmers’ 

and ranchers’ ability to start and maintain 

profitable businesses and offer financial support to 

producers affected by natural disasters. 

Furthermore, USDA’s research agencies will 

continue to introduce high-performance plants, 

animals, and integrated management options that 

increase the efficiency of farming practices. 

Lastly, USDA will also provide tools to producers, 

so they are well-positioned to secure a share of a 

growing market for agricultural products. 

Performance Summary 

• Loan Flexibility for Producers During 

COVID-19: The Farm Service Agency (FSA) 

provided flexibility to direct farm loan 

borrowers to defer a loan payment for at least 

1 year, known as Disaster Set Aside for 

COVID-19. Because it was launched on May 

23, 2020, through July 6, 2021, 4,498 borrowers with payments totaling $45.5 million have 

used this option, including 2,468 beginning farmers. 

• Hurricane Coverage: USDA has implemented new loan coverage whereby people can 

apply for loans to repair hurricane-related losses. This coverage will help stimulate the 

economy as thousands of people are affected by national disasters each year. 

• Hemp Coverage: USDA is expanding insurance coverage to hemp producers from national 

disasters in the United States. The pilot program provides coverage against loss of yield due 

to insurable causes of loss for hemp grown for fiber, grain, or Cannabidiol (CBD) oil. 

Additionally, the Noninsured Crop Disaster Assistance Program (NAP) coverage protects 

against losses associated with lower yields, destroyed crops, or prevented planting where no 

STRATEGIC OBJECTIVES 

Objective 2.1 

Provide an Effective Financial Safety 

Net for Farmers and Ranchers to 

Sustain Economically Viable 

Agricultural Production and Support 

Rural Jobs and Economic Growth 

Objective 2.2 

Increase Agricultural Opportunities 

and Support Economic Growth by 

Creating New Markets and Supporting 

a Competitive Agricultural System 

Objective 2.3 

Protect Agricultural Health by 

Preventing and Mitigating the Spread 

of Agricultural Pests and Disease 
USDA | 2021 Agency Financial Report 15

permanent Federal crop insurance program is available. Hemp offers new economic 

opportunities for farmers.

• Livestock & Poultry (LP) Program Success: The LP program continues to deliver quality 

services efficiently, recovering nearly all costs for the service. LP has faced significant 

staffing challenges in the face of COVID-19 and nationwide hiring shortages but has 

implemented strategies to ensure that meat, poultry, and shell egg customers can continue to 

move USDA-graded products in commerce. 

• National Veterinary Stockpile (NVS): The program deploys countermeasures, within 24 

hours of approval, against the most damaging animal diseases and assists States, Tribes, and 

Territories with planning, training, and exercises for the rapid request and distribution of 

NVS countermeasures during an event. In FY 2021, the program has focused on ensuring the 

readiness of equipment and procedures for response efforts and replenishing stocks of 

personal protective equipment for employees, which was depleted during the COVID-19 

pandemic. The program awarded a contract to upgrade its fleet of depopulation equipment 

for use in animal disease emergencies, conducted virtual training exercises for state 

cooperators, and is conducting a drill to validate the process of shipping vaccines for footand-mouth disease to the United States from an overseas manufacturer. 

• Pest Detection: APHIS and cooperators plan to conduct more than 400 early pest detection 

surveys in 50 States, 5 Territories, and 2 Tribal Territories in FY 2022. Through these 

surveys, the program expects to target 96 percent of the high-risk plant pests and diseases 

identified of significant concern, with the goal of ensuring new incursions of pests and 

diseases are detected before they have a chance to spread or establish. 
16 Section I | Management’s Discussion and Analysis 

Exhibit 2: Strategic Goal 2 Key Performance Indicators (KPI) 

KPI 

Historic Actuals Strategic Targets FY 21 Results as 

of Q3 FY 18 FY 19 FY 20 FY 21 FY 22 

Average number of days to 

process direct loans 30 32 34 32 34 35

Percentage of direct and 

guaranteed loan borrowers who 

are beginning farmers 

55.0 54.5 58.9 59.9 59.9 60.0 

The annual normalized value of 

risk protection provided to 

agricultural producers through 

the Federal Crop Insurance 

Program ($ Billion) 

76.8 78.2 84.1 77.9 78.2 

Annual Measure 

update provided 

in APPR

First installment delinquency 

rate on direct loans 

New in 

FY 2020 

New in 

FY 2020 9.9 8 9 10.5

Direct loan delinquency rate New in 

FY 2020 

New in 

FY 2020 4.3 7 7 4.6

Percentage of high-risk plant 

pests for which early detection 

surveys are conducted 

96 96 96 95 96

Annual Measure 

update provided 

in APPR 

Number of hours it takes to 

mobilize resources once it is 

determined that a Federal 

emergency response is needed 

to manage an agricultural 

outbreak (target of within 24 

hours) 

24 24 24 24 24

Annual Measure 

update provided 

in APPR

Recover 83 percent of graders’

time through customer billings 

(meat livestock) 

New in 

FY 2020 

New in 

FY 2020 93 83 83 93

Recover 83 percent of graders’

time through customer billings 

(poultry livestock) 

New in 

FY 2020 

New in 

FY 2020 95 83 83 94

FY = fiscal year; Q = quarter. 

Notes: Preliminary status is based on progress toward KPI as of the third quarter. The USDA Annual 

Performance Plan and Report (APPR), to be published in February 2022, will show the final 

FY 2021 results. 
USDA | 2021 Agency Financial Report 17

Strategic Goal 3: 

Promote American Agricultural Products and Exports 

Expanding international marketing opportunities 

for U.S. farmers and exporters is critical to 

business and income growth across rural America. 

It is essential for USDA to continue its efforts to 

expand American agricultural products and 

exports through promotion activities, development 

of international standards, removal of trade 

barriers by monitoring and enforcing existing 

trade agreements, and negotiation of new trade 

agreements that benefit the U.S. agricultural 

economy. USDA will also partner with 

developing countries to support them along the 

agricultural market continuum from developing 

economies to developed economies with 

promising demand potential. Ultimately, this work 

builds foundations for future markets and creates 

long-term international relationships that further 

advance U.S. agriculture’s exports.

Performance Summary 

• USDA has engaged with global trading partners to open and retain markets for U.S. 

agriculture. The marquee accomplishment is the successful negotiations of the Phase One 

agreement with China that provides U.S. agriculture market access valued at more than 

$3.5 billion. The agreement also improves to procedures for registering and maintaining a list 

of facilities for numerous products, including dairy, valued at $275 million. 

• USDA’s Foreign Agricultural Service (FAS) defended U.S. interests against Peru’s antidumping and countervailing duty actions against U.S. corn, preserving a market valued at 

$500 million. 

• Renegotiated a dairy certificate with Japan following changes to Japan’s domestic 

regulations, preserving a market valued at nearly $300 million. Persuaded Japan to limit 

restrictions on U.S. corn following a maximum residue level (MRL) detection, retaining 

access for $200 million in non-genetically modified varieties that would not have been 

treated with the identified chemical. 

• Protected a continuation of the current accreditation for pork and beef exports to the 

Philippines following that government’s announcement proposing changes to the terms of the 

STRATEGIC OBJECTIVES 

Objective 3.1 

Expand International Marketing 

Opportunities 

Objective 3.2 

Prevent or Resolve Barriers to Trade 

That Hinder U.S. Food and Agricultural 

Exports 

Objective 3.3 

Build Demand in Developing 

Countries Through Trade Capacity 

Building 
18 Section I | Management’s Discussion and Analysis 

access agreement that would have effectively closed the market to nearly $200 million in 

U.S. beef and pork exports 

• Secured Ecuador’s tariff exemption extension for wheat and soybean meal imports for 

5 years, preserving competitive access for nearly $200 million in wheat and soybean meal. 

• Negotiated an agreement with South Korea guaranteeing market access for more than 

$100 million in annual U.S. rice exports. 

• Collaborated with the Office of the U.S. Trade Representative, U.S. industry, and other 

trading partners to persuade Saudi Arabia to withdraw non-science-based proposed 

regulations setting extremely low limits on the amount of added sugar in all processed food 

and beverages, preserving a market valued at $100 million. 

• Facilitated a Washington State-based solution to a requirement by India for certification that 

apples are free of Genetically Modified materials, preserving a market valued at more than 

$50 million. 

• Preserved access for organics products exported to Mexico valued at $190 million when the 

COVID-19 pandemic delayed equivalence audits and disrupted completion of an equivalence 

agreement. 

• Responding to the COVID-19 global pandemic, USDA’s FAS developed and executed six 

virtual trade events with $19.75 million in projected 12-month sales 

Exhibit 3: Strategic Goal 3 Key Performance Indicators (KPI) 

KPI 

Historic Actuals Strategic Targets FY 21 Results 

as of Q3 FY 18 FY 19 FY 20 FY 21 FY 22 

Value of agricultural exports resulting 

from participation in foreign 

agricultural trade shows and trade 

missions (Billions) 

2.13 2.20 1.16 1.75 2.13 1.15 

Value of trade preserved through the 

resolution of foreign market access 

issues such as U.S. export detainment, 

restrictive SPS & TBT issues, and trade 

regulations (Billions) 

12.8 2.5 7.7 5.5 6 5.89 

FY = fiscal year; Q = quarter; SPS =Sanitation Performance Standard; TBT = Technical Barrier to Trade. 

Notes: Preliminary status is based on progress toward KPI at the time of publication. The USDA Annual 

Performance Plan and Report, to be published in February 2022, will show the final FY 2021 results. 
USDA | 2021 Agency Financial Report 19

Strategic Goal 4: 

Facilitate Rural Prosperity and Economic Development 

USDA promotes rural prosperity and economic 

development by financing investments in rural 

utilities, housing, and businesses. When rural 

Americans share the same level of infrastructure 

services as the country’s urban areas, rural 

communities can make even greater economic 

contributions with healthy businesses and 

families. With this aim in mind, USDA will 

leverage funds, stimulate public-private 

partnerships, and collaborate to build rural 

infrastructure, including broadband, community 

facilities, safe and affordable housing, and health 

services and facilities. It will also provide capacity building to help underserved communities 

become thriving communities.

STRATEGIC OBJECTIVE 

Objective 4.1 

To expand rural business opportunity 

and rural quality of life with access to 

capital; improve infrastructure, 

broadband access and connectivity; 

and support workforce availability. 

Performance Summary 

• Rural Community Facilities and Essential Services: During 2021, USDA’s Rural 

Development (RD) mission area invested more than $674 million through 1200 projects 

benefiting more than 6 million rural residents across the United States and Territories 

through the Community Facilities (CF) Direct Loan and Grant Program. CF programs 

provide loans, grants, and guarantees to help rural communities build or improve essential 

community facilities and community infrastructure. 

The investments include $344 million to support health-care-related improvements and 

emergency response services that will benefit more than 3 million rural residents across the 

United States and Territories. More than five hundred awards totaling $51 million will help 

communities with their long-term recovery efforts following natural disasters such as 

hurricanes, floods, and tornadoes. 

• Rural Water and Wastewater Infrastructure Improvements: RD is investing 

$979 million to modernize rural drinking water and wastewater infrastructures across the 

United States and Territories. The investments will help eliminate outdated pipes and service 

lines to safeguard public health and safety in rural communities. They will improve rural 

infrastructure for residents and businesses. 

• Mission Delivered Under COVID-19: Despite challenges from 100 percent telework during 

the past year, RD staff learned to use existing technology for improved communication, 

pivoted to online outreach, facilitated webinars in place of in-person meetings, and continued 

to obligate funds. RD has processed more than 99,000 loan servicing requests and continues to 
20 Section I | Management’s Discussion and Analysis 

consult the borrowers in good faith to alleviate defaults. The Innovation Center’s Data 

Analytics Division created the COVID-19 Economic Risk Assessment as part of the RD’s 

data-driven approach to identify how RD resources and services can provide immediate relief 

to communities affected by the pandemic and support economic recovery in rural America. 

This dashboard enabled RD leadership to be more proactive and reach out to customers in 

vulnerable communities enabling a timelier response to the needs of rural communities. 

Finally, RD invested close to $8 billion in distressed rural communities during a pandemic. 

• Resource Guide to Help America’s Workforce: In 2021, RD launched a resource guide to 

help rebuild and strengthen America’s rural workforce. The resource guide is designed to 

help rural community leaders start and expand employment opportunities and access 

resources to train, recruit, and create a sustainable rural workforce. It outlines programs and 

services available at USDA and other Federal agencies that support workforce development 

in rural communities. 

• Rural Innovation Stronger Economy (RISE): Rural Business-Cooperative Services 

launched a new grant program to help rural communities create good-paying jobs and 

support new business opportunities in high-growth fields. The new grant promotes a regional 

innovation-driven approach to economic development through maximizing local community 

assets and connecting networks and industry clusters. RISE provides grants of up to 

$2 million to consortiums of local governments, investors, industries, institutions of higher 

education, and other public and private entities in rural areas. The funds may be used to form 

Job Accelerator partnerships, create high-wage jobs, start or expand businesses, and support 

economic growth in the rural areas of their region. 

• Modernizing Rural Electric Infrastructure: Through the Electric Loan Program, Rural 

Development invested more than $1.2 billion to improve and modernize rural electric 

infrastructure after severe weather and age tested the grid. This funding will benefit rural 

residents and businesses in Alaska, Arizona, Arkansas, Georgia, Illinois, Indiana, Kentucky, 

Minnesota, Missouri, New Mexico, New York, North Dakota, Ohio, Oklahoma, South 

Carolina, South Dakota, Washington, and Virginia. Several of the loans will help expand 

smart grid technologies, which can be a catalyst for broadband and other telecommunication 

services in unserved and underserved rural areas. 

• Interagency Agreement to Coordinate Broadband Funding: USDA, the Federal 

Communications Commission (FCC), and the National Telecommunications and Information 

Administration (NTIA) have established an interagency agreement to share information 

about and coordinate the distribution of broadband and deployment of Federal funds. 
USDA | 2021 Agency Financial Report 21

Exhibit 4: Strategic Goal 4 Key Performance Indicators (KPI) 

KPI 

Historic Actuals Strategic Targets FY 21 

Results as 

of Q3 FY 18 FY 19 FY 20 FY 21 FY 22

Health Facilities: Percent of customers 

who are provided access to new and/or 

improved essential community facilities 

9.4 2.5 5.1 3.0 3.0 6.7 

Number of borrowers’ subscribers 

receiving new and/or improved 

telecommunication services (Thousand) 

45 69 131 162 162 42.2 

Percent of RD commercial/ 

infrastructure investments that 

leverage non-Federal funding 

77 83 62 80 80 86

Percent of RD assistance that went to 

distressed communities 11 11 12.5 14 14 12.2 

FY = fiscal year; Q = quarter; RD =Rural Development. 

Notes: Preliminary status is based on progress toward KPI as of the third quarter. The USDA Annual 

Performance Plan and Report, to be published in February 2022, will show the final FY 2021 results. 
22 Section I | Management’s Discussion and Analysis 

Strategic Goal 5: 

Strengthen the Stewardship of Private Lands Through 

Technology and Research 

The world population is expected to reach 9.6 billion 

by 2050. Feeding this population will require the 

adoption of new science and technologies and the 

implementation of science-based conservation plans 

to increase agricultural production sustainability. 

To ensure U.S. private working lands and public 

agricultural landscapes are conserved, the Department 

will provide technical and financial assistance using 

the latest technology and research available. New and 

improved practices result from fundamental and 

applied research to understand the complex 

interactions between human systems and the 

environment and transferring the resulting knowledge 

into the hands of producers and land managers 

through information, tools, and decision support. 

STRATEGIC OBJECTIVES 

Objective 5.1 

Enhance Conservation Planning with 

Science-Based Tools and Information 

Objective 5.2 

Promote Productive Working Lands 

Objective 5.3 

Enhance Productive Agricultural 

Landscapes 

Performance Summary 

• Conservation Technical Assistance (CTA) Program: The CTA program is the backbone 

of the Natural Resources Conservation Service’s (NRCS) conservation delivery system. 

Many customers begin their relationship with NRCS through requests for assistance that later 

evolve into a conservation plan that may include cost-share assistance through mandatory 

programs. At the end of the third quarter (Q3) for FY 2021, approximately 102,000 

Conservation Assessment Ranking Tool (CART) assessments and more than 121,000 ranked 

assessments were completed, evaluating nearly 11 million resource concerns on more than 

744,000 land units (53 million program acres).

• Environmental Quality Incentives Program (EQIP): EQIP conducted outreach activities 

and published program information including: announcement of application cut-off dates, 

evaluation and ranking of applications, and selections for funding. By the end Q3 for 

FY 2021, 86,949 total applications and 21,796 contracts had been submitted in the system for 

$704,821,350 on 6,346,359 acres. 

• Agricultural Conservation Easement Program (ACEP): ACEP consists of two 

components: (1) an agricultural land easement (ALE) component under which NRCS assists 

eligible entities to protect agricultural land by limiting non-agricultural uses of that land 

through the purchase of agricultural land easements; and (2) a wetland reserve easement 

(WRE) component under which NRCS provides financial and technical assistance directly to 
USDA | 2021 Agency Financial Report 23

landowners to restore, protect, and enhance wetlands through the purchase of wetlands 

reserve easements. Through the ALE component, ACEP helps farmers and ranchers keep 

their land in agriculture. In Q3 (April 1 to June 30, 2021) of FY 2021, NRCS reviewed and 

closed 39 new WRE easements. ACEP-WRE provides technical and financial assistance 

directly to private landowners and Indian Tribes to restore, protect, and enhance wetlands 

through the purchase of wetland easements. WRE enrollment options include permanent 

easements, 30-year easements, term easements, and 30-year contracts (for acreage owned by 

an Indian Tribe). As of Q3 of FY 2021, NRCS closed on 140 new WRE easements. 

This number is the cumulative WRE easements that were closed in FY 2021 

• Regional Conservation Partnership Program (RCPP): RCPP promotes the 

implementation of conservation activities through agreements between partners and 

producers. RCPP, through agreements with partners and conservation programs, contracts 

directly with producers, helps implement conservation projects that may focus on water 

quality and quantity, soil erosion, wildlife habitat, drought mitigation, flood control, or other 

regional priorities. Successful RCPP projects provide innovative conservation solutions, 

leverage partner contributions, offer impactful and measurable outcomes, and are 

implemented by capable partners. In Q3, there are currently 68 active Farm Bill 2018 RCPP 

projects with a combined budget of more than $270 million that will be further amplified by 

more than $350 million in partner contributions. Another 106 awards, whose combined 

budgets exceed $400 million, are currently being negotiated by NRCS State Offices. 

o RCPP is an ideal mechanism for helping Native American Nations address challenging 

resource concerns while improving agricultural output on their reservations. Two such 

success stories were recently highlighted on farmers.gov. 

▪ The Hoonah Native Forest Partnership helps protect, conserve, and maintain stream 

and forest habitats integral to the Hoonah way of life. 

▪ The Duck Valley Shoshone-Paiute Tribes were the first Native American Tribes in 

the Nation to receive an RCPP contract. They plan to create a more efficient irrigation 

system while still providing the water needed by cattle every summer by replacing 

ditches, repairing rusted pipes, and adding 25 nose pumps and solar livestock 

watering systems. This plan will increase the number of acres under production from 

12,600 acres to more than 21,000 acres. 

• Conservation Reserve Program (CRP): CRP is a land conservation program administered 

by the Farm Service Agency. In exchange for a yearly rental payment, farmers enrolled in the 

program agree to remove environmentally sensitive land from agricultural production and 

plant species to improve environmental health and quality. Contracts for land enrolled in CRP 

are 10–15 years in length. The program’s long-term goal is to re-establish valuable land cover 

to help improve water quality, prevent soil erosion, and reduce the loss of wildlife habitat. 

o The 2018 Farm Bill extended enrollment authority to September 30, 2023, and 

incrementally increased overall enrollment caps from 24 million acres in FY 2019, 
24 Section I | Management’s Discussion and Analysis 

24.5 million acres in FY 2020, 25 million acres in FY 2021, 25.5 million acres in 

FY 2022, and 27 million acres in FY 2023. Changes to incentives and rental rates have 

been made to encourage increased enrollment. 

o FSA administratively removed state acreage allocation caps for buffers and wetlands 

enrollment, allowing additional acres to be enrolled. 

o FSA increased outreach and partner collaboration to encourage enrollment and highlight 

improvements to the program. 

Exhibit 5: Strategic Goal 5 Key Performance Indicators (KPI) 

KPI 

Historic Actuals Strategic Targets 

FY 21 Results as of Q3 

FY 18 FY 19 FY 20 FY 21 FY 22 

Acreage enrolled in CRP riparian 

and grass buffers (Cumulative, 

Million Acres) 

1.53 1.43 1.36 1.46 1.56 1.42 

Cropland with conservation 

applied to improve soil quality 

(Million Acres)—Environmental 

Quality Incentives Program (EQIP) 

3.1 3.4 3.9 3.4 3.4 Annual Measure update 

provided in APPR

Cropland with conservation 

applied to improve soil quality 

(Million Acres)—Conservation 

Technical Assistance (CTA) 

6.0 5.7 6.4 6.0 6.0 Annual Measure update 

provided in APPR 

Tons of sediment prevented from 

leaving cropland and entering 

water bodies (Million Tons) 

5.3 6.3 8.2 6.0 6.0 Annual Measure update 

provided in APPR

Working land protected by 

conservation easements 

(Thousand Acres) 

163 178 167 163 163 Annual Measure update 

provided in APPR

Contract Implementation Ratio 

(CIR, %) 87 87 87 87 87 Annual Measure update 

provided in APPR 

Annual Practice Implementation 

Rate (PIR, %) 51 55 43 52 52 Annual Measure update provided in APPR

Restored wetland acreage CRP 

(Million Acres) 2.30 2.34 2.35 2.34 2.64 2.36 

CRP = Conservation Reserve Program; FY = fiscal year; Q = quarter. 

Notes: Preliminary status is based on progress toward KPI as of the third quarter. The USDA Annual 

Performance Plan and Report (APPR), to be published in February 2022, will show the final 

FY 2021 results. 
USDA | 2021 Agency Financial Report 25

Strategic Goal 6: 

Ensure Productive and Sustainable Use of the National Forest 

System Lands 

The Nation’s forests and grasslands are a 

fundamental part of the American landscape and 

are a legacy that the USDA Forest Service holds 

in trust for present and future generations. Forests 

provide clean air and water, forest and rangeland 

products, mineral and energy resources, jobs, 

quality habitat for fish and wildlife, recreational 

opportunities, and memorable experiences. 

The National Forest Service (NFS) plays a critical 

role in making America’s forests and grasslands 

resilient to threats and disturbances while 

mitigating wildfire risk. The Department also 

manages the national forests and grasslands to 

ensure that they are healthy and sustainable while 

allowing rural communities to access and benefit 

from the Nation’s forests’ economic 

opportunities. This work is complemented with 

USDA’s research in forestry, ecology, and 

economics to ensure world-class science guides effective policies and management practices. 

STRATEGIC OBJECTIVES 

Objective 6.1 

Contribute to the Economic Health of 

Rural Communities Through Use and 

Access Opportunities 

Objective 6.2 

Ensure Lands and Watersheds Are 

Sustainable, Healthy, and Productive 

Objective 6.3 

Mitigate Wildfire Risk 

Performance Summary 

• Forest Innovation: Forest Products Laboratory, in collaboration with the U.S. Endowment 

for Forests and Communities (U.S. Endowment), is awarding $2.4 million in grants to 

accelerate the use of nanocellulosic materials (CNM) for use in a wide range of applications.

The goal is to develop sustainable and environmentally friendly forest products that can be 

used in a variety of industries and commercial goods, including those where forest products 

have not always been considered a material of choice. 

• Investment in New Technologies and Markets: USDA Forest Service State and Private 

Forestry awarded more than $11 million in funds through the Wood Innovations Program 

and Community Wood grant programs to develop and expand the use of wood products and 

strengthen emerging wood energy markets. 

• Community Forest Grants: Forest Service Community Forest Program awards for FY 2021 

include $4 million to support 10 projects across nine states (Iowa, Maine, Michigan, New 

York, New Hampshire, Vermont, Washington, West Virginia, and Wisconsin). This year’s 

grants include financial assistance to local governments and qualified nonprofit organizations 
26 Section I | Management’s Discussion and Analysis 

to create, expand, and enhance community-owned and community-managed forests. Project 

work will help communities acquire and conserve forests that provide public access and 

recreational opportunities, protect vital water supplies and wildlife habitat, serve as 

demonstration sites for private forest landowners, and provide economic benefits from timber 

and non-timber products. 

• Visitor Satisfaction in National Forests: Visitor satisfaction is expected to be rated at 

95 percent, even with an increase in demand at the forests during the Covid-19 Pandemic. 

Satisfaction of visitors is attributed to the continued efforts to provide access to quality 

landscapes, offer a variety of recreation opportunities and settings, and maintain recreation 

facilities to acceptable standards. (This measure is not reported by quarter; the Forest Service 

will provide a final FY 2021 value at the end of the fiscal year.) 

• Timber Sales: Recovery efforts after large fires, including stabilization work and hazard tree 

removal, necessitates the involvement of staff who would typically work on preparing and 

administering timber sales. As a result, Forest Service worked with industry to re-organize 

salvage and green sales in 2021 in an effort to keep from flooding the timber markets. 

Work continues to be challenged by the COVID-19 pandemic. The field crews must work 

within tight restrictions, hiring is limited, and travel is restricted to only mission-critical work 

to various locations. The Chief of the Forest Service issued a letter requesting resources be 

released to be engaged in the wildfire system, which operates for the Nation’s forests 

and grasslands. 

• Wildfire Activity: Increased wildfire activity in the Western States has shifted regional 

resources to suppression activities, reducing opportunities for prescribed fire. Regions 

continue to take advantage of favorable burning conditions where possible while providing 

for public and firefighter safety. 

• Drought Conditions: In the west, the continued drought coupled with hot, dry weather has 

increased wildfire activity, which increases the need for suppression resources and pausing 

prescribed burning until conditions are favorable. Regions have switched to contracting 

mechanical and hand treatments to reduce hazardous fuels. Drought conditions and hot, dry 

weather slow this progress as operators are restricted to working in the morning and 

conducting fire patrol of the work area in the afternoon as an added safety precaution. 

Monsoonal moisture has been moving into the Southwest, increasing the chance of resuming 

prescribed burning later in the year. 

• Deferred Maintenance: USDA Forest Service National Forest system (NFS), Procurement 

and Property Services (PPS) and the Office of Grants and Agreements (OG&A) efforts lead 

to awarding more than $200 million in funds through the Great American Outdoors Act 

(GAOA) to deliver benefits to the American public by increasing public land access and 

conservation. The funding provided through GAOA will be a catalyst for rural economic 

development and employment opportunities. GAOA will also expand public-private 

partnerships and become part of the Shared Stewardship framework. 
USDA | 2021 Agency Financial Report 27

Exhibit 6: Strategic Goal 6 Key Performance Indicators (KPI) 

KPI 

Historic Actuals Strategic Targets FY 21 Results as 

of Q3 

FY 18 FY 19 FY 20 FY 21 FY 22 

Percent of customers satisfied with 

recreation facilities, services, and 

settings in National Forests 

95 95 95 95 95

Annual Measure 

update provided 

in APPR 

Timber volume sold (Billion Board 

Feet) 3.2 3.3 3.2 4.0 3.4 1.58 

Percent of NFS landscape 

ecosystems improved, maintained, 

or recovering due to management 

actions, Terrestrial Condition 

Assessment (TCA) 

New in 

FY 2021 

New in 

FY 2021 - 42 32

Annual Measure 

update provided 

in APPR 

Number of watersheds moved to 

improved condition class or 

sustained in Condition Class 12

16 8 9 N/A 15 N/A 

Annual acreage of NFS lands where 

final treatment effectively mitigates 

wildfire risk (Million Acres, 

Annually) 

1.0 .9 .8 1.1 1.4 .938 

Annual acreage treated to reduce 

or maintain fuel conditions on NFS 

and non-Federal lands (Million 

Acres, Annually) 

3.4 2.9 2.7 3.5 3.7 2.16 

Number of high priority areas 

where treatments have occurred to 

reduce wildfire risk to communities 

(number of fire sheds)3

N/A N/A N/A N/A 3 N/A 

FY =fiscal year; N/A = not available; NFS = National Forest Service; Q = quarter. 

Notes: Preliminary status is based on progress toward KPI as of the third quarter. The USDA Annual 

Performance Plan and Report (APPR), to be published in February 2022, will show the final 

FY 2021 results. 

2 Watershed KPI was developed in 2010 as the agency’s first nationally consistent outcome performance 

measure to demonstrate accomplishments in watershed restoration. KPI is new for FY 22. For FY 2021, 

watershed restoration was not an agency priority and no target was established. 

3 Fireshed is a term similar to watershed. It refers to a geographic region with a similar risk of wildfire to 

adjacent communities. Reducing hazardous fuels within parts of the fireshed may reduce the overall risk 

to the adjacent community. Number of fire sheds is a new KPI to move to outcome-based measures on 

reducing wildfire risk at a scale that will make a difference on transmission of wildfire to communities. 
28 Section I | Management’s Discussion and Analysis 

Strategic Goal 7: 

Provide All Americans Access to a Safe, Nutritious, and Secure 

Food Supply 

USDA has critical roles in preventing foodborne 

illness and protecting public health while also 

ensuring Americans have access to food, a 

healthful diet, and nutrition education in a manner 

that supports American agriculture and inspires 

public confidence. The Department will take 

several actions to achieve this goal. First, to 

ensure the food supply is safe, the Department 

will continue to prevent contamination and limit 

foodborne illness by expanding its modernization 

of food inspection systems. USDA’s research, 

education, and extension programs will continue 

to provide information, tools, and technologies 

about the causes of foodborne illness and its 

prevention. Second, USDA will continue to 

develop partnerships that support best practices in 

implementing effective programs to ensure that 

eligible populations have access to programs that 

support their food needs. These collaborations 

include research on the nutritional quality of 

American food and diets, as well as continuing to 

discover the drivers of poor diets and nutritional 

choices. Lastly, USDA will collaborate with partners and stakeholders on strategies to reduce 

foodborne illness and childhood obesity and improve diets. USDA ensures agriculture 

production incorporates the best available science into its modernization efforts to produce safer, 

more nutritious, and secure food. 

STRATEGIC OBJECTIVES 

Objective 7.1 

Prevent Foodborne Illness and Protect 

Public Health 

Objective 7.2 

Provide Access to Safe and Nutritious 

Food for Low-Income People While 

Supporting a Pathway to SelfSufficiency 

Objective 7.3 

Support and Encourage Healthy 

Dietary Choices Through Data-Driven, 

Flexible, Customer-Focused 

Approaches 

Performance Summary 

• Meat and Poultry Inspection Operations: In an effort to increase capacity and expand 

access in the Meat and Poultry Inspection Operations, $55.2 million in competitive grant 

funding was available through the new Meat and Poultry Inspection Readiness Grant (MPIRG) 

program. The new program is funded by the Consolidated Appropriations Act of 2021. 

• Pathogen Reduction Standards: The Food Safety and Inspection Service (FSIS) continued 

to send alerts to establishments with increasing Salmonella levels and assessed subsequent 

data to determine compliance with the performance standard. For establishments that do not 
USDA | 2021 Agency Financial Report 29

meet the performance standard, FSIS continues to provide Inspection Program Personnel 

(IPP) with alerts that summarize recent sampling results to provide information on whether 

subsequent establishment pathogen results are improving. 

• Resources for our Customers: The Food and Nutrition Service (FNS) Office of Food 

Safety, in cooperation with the Institute of Child Nutrition (ICN), released several COVID19 resources: The Food Safety COVID Tip Card Series, Food Safety During Alternate Meal 

Services fact sheet, and Keeping School Meals Safe at Home infographic. 

• Nutrition Benefits for Low-Income Families. As directed by the 2018 Farm Bill, for the 

first time in more than 15 years, USDA re-evaluated the Thrifty Food Plan (TFP) based on 

current food prices, consumption data, the nutrients in food, and the latest dietary guidance. 

The updated TFP reflects the price of a practical, cost-effective, nutritious diet in today’s 

current conditions and is used to calculate benefits for SNAP recipients. The updated Plan 

better represents the practical cost of a nutritious diet for low-income households in today’s 

current circumstances. Adjusting benefits to reflect the practical impacts of current economic 

and marketplace considerations will improve SNAP participants’ ability to provide a 

nutritious, cost-effective diet for themselves and their families. Average SNAP benefits –

excluding additional funds provided as part of pandemic relief – will increase by about 

$36 per person, per month for fiscal year 2022. This reflects a 21% increase in the value of 

the Thrifty Food Plan. 

• Support for Children in Schools and Child Care: In support of President Biden’s call to 

action on hunger and with authorities provided by Congress, in January 2021, USDA 

announced an increase in benefits for the Pandemic Electronic Benefits Transfer (P-EBT) of 

approximately 15 percent, providing more money for low-income families and millions of 

children missing meals due to school closures. As of mid-September 2021, FNS approved 

school year 2020-2021 plans for school age children in all eligible states and territories and 

49- State childcare plans to provide more than $30.6 billion in P-EBT benefits to 33.8 million 

children. In addition, FNS approved 47 Summer 2021 plans to provide $12.6 billion in 

P-EBT benefits to 33.2 million children. 

• Supplemental Nutrition Assistance Program (SNAP): 

o Implemented the American Rescue Plan provision to extend the 15 percent increase in 

the maximum benefit through September 2021, and 

o Extended Emergency Allotment benefits to increase benefits to the neediest households 

who had not received Emergency Allotment payments and those whose payments were 

less than $95 per month. 

o Provided hundreds of adjustments and flexibilities requested by States to ensure access 

to nutrition benefits during the pandemic. 

o Expanded online purchasing by approving additional retailers to offer this service in 

47 States and the District of Columbia, covering 97 percent of SNAP households.
30 Section I | Management’s Discussion and Analysis 

o Released an updated and revised SNAP Employment & Training Toolkit. This version, the 

first major revision since 2013, includes, among other things, the changes made by the final 

rule published in January 2021, such as the newly allowable skills-based activities. 

o Issued a request for proposals for up to five nonprofit organizations to build functionality 

and provide assistance to farmers and markets to accept SNAP benefits through online 

transactions. 

o Issued guidance encouraging States to focus FY 2022 State outreach plans on vulnerable 

food insecure populations such as students, veterans, and non-citizen households. 

o Provided SNAP State agencies with additional State administrative expense funds to 

support pandemic response as provided for by the Consolidated Appropriations Act and 

the American Rescue Plan. 

• Support for Food Banks: USDA’s FNS provided approximately $1 billion to States to order 

nutritious, domestically produced food to support food banks through The Emergency Food 

Assistance Program (TEFAP), using regular TEFAP entitlement and COVID supplemental 

funding. 

o In partnership with the Agricultural Marketing Service (AMS), FNS was able to offer for 

the first time a pre-packaged mixed fresh produce box in the TEFAP catalog for TEFAP 

State agencies to order. Deliveries began in June 2021. 

• Support for Mothers and Children: The American Rescue Plan provided an option for the 

Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) State 

agencies to temporarily increase the Cash-Value Voucher/Benefit (CVV/B) for Fruit and 

Vegetable Purchases. Specific WIC food packages were increased to an amount that was less 

than or equal to $35 per month for a period of up to 4 months in FY 2021. 

• Supporting Tribal Food Sovereignty: Under new demonstration projects, Indian Tribal 

Organizations (ITOs) in the Food Distribution Program on Indian Reservations (FDPIR) may 

purchase agricultural commodities for their FDPIR participants. The project allows selected 

ITOs to supplant FDPIR food package items with local, regional, and/or tribal foods of their 

choosing that have similar or higher nutritional value. Funding for the project was made 

available via self-determination contracts, thereby fostering food sovereignty and selfdetermination in the FDPIR sphere. 

• Support for Territories. As part of the pandemic response, FNS provided targeted technical 

assistance to support nutrition assistance in Puerto Rico, American Samoa, and the 

Commonwealth of the Northern Mariana Islands. These Territories utilized more than 

$1 billion in funds provided through the American Rescue Plan and other COVID relief bills 

to enhance benefit allotments to low-income households and modernize benefit delivery 

methods from paper coupon to EBT. In addition, with FNS support, they developed and 

administered their own P-EBT Plans to cover meals missed by school-aged children. 
USDA | 2021 Agency Financial Report 31

• Nutrition Guidance for All Americans: On December 29, 2020, USDA, in partnership with 

the U.S. Department of Health and Human Services (HHS), released the Dietary Guidelines 

for Americans, 2020–2025 after a multi-year process involving an external, independent 

review of current science by the 2020 Dietary Guidelines Advisory Committee and four 

phases of public comment during a 15-month period. This new edition of the DGA marks the 

first time the Dietary Guidelines have provided recommendations by every life stage, from 

birth through older adulthood. 

Concurrently with the release of the Dietary Guidelines, the Center for Nutrition Policy and 

Promotion (CNPP) released a robust, consumer-tested suite of consumer resources that 

translate guidance from the new Dietary Guidelines into messages and actionable tools that 

people can personalize to help them make healthy food and beverage choices. The tools 

include an online consumer quiz that can be synced with the Start Simple with MyPlate 

consumer app and updated consumer MyPlate Plan calculator, as well as a wide variety of 

content, tip sheets, and recipes at the newly designed MyPlate.gov. As of April 2021, the 

consumer quiz had been completed approximately 500,000 times, there were more than 

166,000 net downloads of the consumer app, the MyPlate Plan calculator had been used 

nearly 6 million times, and MyPlate.gov had more than 27 million pageviews. 

• Support for Students and Schools: Facing continued uncertainty, FNS issued numerous 

nationwide waivers, State waivers, and related guidance documents providing child nutrition 

program (CNP) operators the flexibility needed to continue providing nutritious meals to 

children in a safe manner during the COVID-19 public health emergency for the 2020–2021 

school year, summer 2021, and in preparation for the 2021–2022 school year. These waivers 

included: 

o Allowing schools to operate the Summer Food Service Program (SFSP) or National School 

Lunch Program (NSLP) Seamless Summer Option for the 2020–2021 school year (in place 

of the NSLP/School Breakfast Program) and the Seamless Summer Option for the 2021–

2022 school year, providing flexibility in program requirements and increased resources for 

school meals; 

o Extending the deadlines for schools to elect the Community Eligibility Provision (CEP). 

CEP is a highly successful option that allows schools with a significant share of very 

low-income students to serve school meals at no cost to all students; and 

o Approving 63 State CNP oversight waivers, which provide flexibility to States and local 

CNP operators during the pandemic while maintaining program integrity. 

In addition, USDA took steps to help alleviate supply chain concerns for schools offering 

schools flexibilities such as: 

• Allowing operators to enter into emergency noncompetitive one-year procurement contracts 

for school year 2021-2022. 
32 Section I | Management’s Discussion and Analysis 

• Waiver to Allow Specific School Meal Pattern Flexibility for School Year 2021-2022, which 

allows flexibility in the meal standards and makes it easier for school lunch staff to prepare 

meals when there are shortages of certain food items. 

• Ensuring schools are not penalized for any meal pattern shortcomings that occur as a result of 

supply chain issues. 

• Allowing for higher reimbursement rates to make contracting easier when needing to resort 

to emergency procurement options. 

USDA understands it has been a challenging time for food distribution companies that serve 

schools as they face obstacles including labor shortages and transportation difficulties. USDA 

worked across the federal government to help ease pressures on our food supply chain and build 

back better. 

• As of early September, through a cooperative agreement between CNP Team Nutrition and 

the Institute of Child Nutrition (ICN), the ICN conducted 316 training opportunities in 

various formats, reaching over 21,150 CNP operators, administrators, and stakeholders. 

Altogether, in FY 2021, CNP-Team Nutrition and the ICN conducted a combined total of 

333 training events in various formats, reaching nearly 39,200 CNP operators, 

administrators, and stakeholders. FNS also released several key resources and training 

opportunities to support Child and Adult Care Food Program (CACFP) and school meal 

pattern implementation, as well as the provision of safe and flexible meal service during the 

COVID-19 pandemic. 

• To address financial losses experienced during the COVID-19 public health emergency, FNS 

implemented the CNP Emergency Operational Cost Reimbursement Programs as of July 2, 

2021 approving 80 State/tribal/territory plans to provide nearly $1.3 billion in resources to 

school meal and CACFP operators. 

• Connecting the School and Farm: FY 2021 included a historic level of Farm to School 

Grants of $12.1 million to 159 organizations and more than 120 grant modification and 

extension requests processed to support COVID-related adaptations to Farm to School 

projects. This was part of providing more than $100 million in grant funding to States and 

local entities supporting CNP program operations with technology investments, school 

equipment, breakfast expansion, and recipe development. 
USDA | 2021 Agency Financial Report 33

Exhibit 7: Strategic Goal 7 Key Performance Indicators (KPI) 

KPI 

Historic Actuals Strategic Targets FY 21 Results as 

of Q3 FY 18 FY 19 FY 20 FY 21 FY 22 

Percentage of establishments that meet 

pathogen reduction performance 

standards 

71 84 86 88 88 86

Percentage of establishments whose 

Public Health Regulation (PHR) 

noncompliance rate decreases below the 

early warning cut point 120 days after 

receiving an Early Warning Alert (EWA) 

74 74 74 74 74 74

Percentage of American households with 

consistent, dependable access to food 88.9 89.5 N/A 89.2 89

Annual Measure 

update provided 

in APPR 

Percentage of Supplemental Nutrition 

Assistance Program (SNAP) Employment 

& Training participants engaged in 

education and skills-based training 

25.2 34.7 38.4 31.5 31.5 

Annual Measure 

update provided 

in APPR 

Annual percentage of eligible children 

participating in the National School 

Lunch Program (NSLP) 

58 57 43 59 59

Annual Measure 

update provided 

in APPR 

Annual percentage of eligible children 

participating in the School Breakfast 

Program (SBP) 

30 30 24 31 31

Annual Measure 

update provided 

in APPR 

FY = fiscal year; N/A = not available; Q =quarter. 

Notes: Preliminary status is based on progress toward KPI as of the third quarter. The USDA Annual 

Performance Plan and Report (APPR), to be published in February 2022, will show the final 

FY 2021 results. 
34 Section I | Management’s Discussion and Analysis 

Future Demands, Risks, Uncertainties, 

Events, Conditions, and Trends 

Farmers and ranchers operate in highly competitive markets, both domestically and 

internationally. Rapid shifts in consumer demands associated with quality, convenience, taste, 

and nutrition dictate that farming, ranching, and marketing infrastructures become more fluid and 

responsive. National security is a significant, ongoing priority for the U.S. Department of 

Agriculture (USDA or the Department). The Department’s science research, education, and 

extension services will continue to be the foundation for understanding developments and 

making advances in solving agricultural and societal challenges. USDA is working with the U.S. 

Department of Homeland Security to help protect agriculture from intentional and accidental acts 

that may impact America’s food supply or natural resources. 

External Factors that Challenge USDA’s Ability to Achieve its 

Goals Include the Following: 

• The COVID-19 public health emergency presented workplace complications such as 

ensuring employee safety, hiring challenges, and remote work for staff both domestically and 

internationally; 

• Record-breaking wildfires and other weather-related hardships, including disasters related to 

the increasing intensity and duration of extreme weather and climate change, both 

domestically and internationally; 

• The risk of catastrophic fire, depending on weather, drought conditions, and the expanding 

number of communities in the wildland-urban interface; 

• Non-weather-related hardships and other uncontrollable events, both domestically and 

internationally; 

• Domestic and international macroeconomic factors, including consumer purchasing power, 

the strength of the U.S. dollar, and political changes abroad that could impact domestic and 

global markets significantly at any time; 

• Sharp fluctuations in farm prices, interest rates, and unemployment that could impact the 

ability of farmers, other rural residents, communities, and businesses to qualify for credit and 

manage debt; 

• The impact of future economic conditions and actions by a variety of Federal, State, and 

local governments that could influence the sustainability of rural infrastructure; 

• The increased movement of people and goods, which provides the opportunity for crop and 

animal pests and diseases to move quickly across domestic and international boundaries; 
USDA | 2021 Agency Financial Report 35

• Potential exposure to hazardous substances, which may threaten human health as well as the 

environment; and 

• The ability of the public and private sectors to collaborate effectively on food safety, 

security, and related emergency preparedness efforts. 

Mitigation Strategies: 

USDA has made great strides during fiscal year (FY) 2021 toward its mitigation strategies under 

the auspices of its Enterprise Risk Management (ERM) program. Specifically, the Department 

leads a large-scale effort across mission areas to identify the top 10 enterprise risks, risk drivers, 

mitigation strategies, and key risk indicators. In FY 2022, USDA will update the departmentwide risk profile, including risk drivers and risk mitigation strategies. USDA will continue to 

advance the strategies in FY 2022, with periodic updates to the Deputy Secretary during 

Quarterly Strategic Reviews. 
36 Section I | Management’s Discussion and Analysis 

Analysis of Financial Statements and 

Stewardship Information 

Consolidated Balance Sheets 

Total Assets 

Total assets for FY 2021 were $360,530 million, compared to $313,894 million for FY 2020, an 

increase of $46,636 million, or 15 percent. The following exhibit presents FY 2021 total assets. 

Exhibit 8: Total Assets ($ millions) 

66%

31%

2% 1%

Fund Balance with Treasury - $237,610

Loans Receivable, Net - $113,450

Accounts Receivable, Net - $5,673

General Property, Plant and Equipment, Net - $2,588

Advances and Prepayments - $629

Cash and Other Monetary Assets - $298

Investments - $259

Inventory and Related Property, Net - $23

Direct Loan and Loan Guarantees, Net, is one of the largest assets on the USDA Balance Sheet. 

RD offers both direct and guaranteed loan products for rural housing and rural business 

infrastructure. These products represent 85 percent of the total Department loan programs. Loan 

programs administered by FSA represent 13 percent of the total. FSA supports farmers who are 

temporarily unable to obtain private, commercial credit. The remaining 2 percent represents 

commodity loans and credit programs administered by the CCC. These loans are used to improve 

economic stability and provide an adequate supply of agricultural commodities. CCC credit 

programs provide international food assistance, expand international markets, and provide 

domestic low cost financing to protect farm income and prices. 
USDA | 2021 Agency Financial Report 37

The following exhibit presents significant changes in total assets. 

Exhibit 9: Significant Changes in Total Assets ($ millions) 

2021

$237,610 

2021

$5,673 

2020

$195,418 

2020

$3,873 

Fund Balance with Treasury Accounts Receivable, Net

Increase in Fund Balance with Treasury of $42,192 million mainly due to FNS supplemental 

funding for COVID-19 of $40,606 million; Office of the Secretary supplemental funding for 

COVID-19 of $5,634 million; RMA underwriting gain of $1,121 million; APHIS response to the 

African Swine Fever (ASF) outbreak in the Dominican Republic and Haiti of $496 million, and 

supplemental funding for COVID-19 of $402 million; CCC additional commodity purchases and 

international food aid for COVID-19 of $800 million; FSA supplemental funding for COVID-19 

of $1,927 million, pandemic assistance for producers of $1,309 million, farm loans of $780 

million, Coronavirus Food Assistance for agricultural producers who continue to face market 

disruptions and associated costs because of COVID-19 of ($15,328) million, and Wildfire and 

Hurricane Indemnity of ($1,190) million. 

Increase in Accounts Receivable, Net of $1,800 million mainly due to RMA higher reported 

premiums for certain crops of $1,392 million; and Forest Service Great American Outdoors Act 

of $250 million. 
38 Section I | Management’s Discussion and Analysis 

Total Liabilities 

Total liabilities for FY 2021 were $184,077 million, compared to $196,854 million for FY 2020, 

a decrease of $12,777 million, or 6 percent. The following exhibit presents FY 2021 total 

liabilities. 

Exhibit 10: Total Liabilities ($millions) 

72%

13%

8%

5%

1% 1%

Debt - $132,821

Other - $24,848

Insurance and Guarantee Program Liabilities - $14,226

Benefits Due and Payable - $8,580

Accounts Payable - $2,433

Federal Employee Benefits Payable - $1,376

Environmental and Disposal Liabilities - $258

Advances from Others and Deferred Revenue - $136

Loan Guarantee Liability - ($601)

Debt is the single largest liability on USDA’s balance sheet. It represents amounts owed 

primarily to Treasury by CCC, FSA and RD. For RD, the debt primarily represents financing to 

support electric and housing loan programs which represent 76 percent of the total debt. 

For CCC, the debt primarily represents financing for price support, export credit guarantees, 

disaster programs and loans related to farm storage facilities which represent 12 percent of the 

total debt. For FSA, the debt primarily represents financing to support direct and guaranteed loan 

programs, with the majority supporting operating, ownership, and emergency loans which 

represent 12 percent of the total debt. 
USDA | 2021 Agency Financial Report 39

The following exhibit presents significant changes in total liabilities. 

Exhibit 11: Significant Changes in Total Liabilities ($ millions) 

2021

$14,226

2021

$8,580

2021

$2,433

2021

($601)

2020

$7,703

2020

$13,330

2020

$3,842

2020

$1,329

Insurance and Guarantee

Program Liabilities

Benefits Due and Payable Accounts Payable Loan Guarantee Liability

Increase in Insurance and Guarantee Program Liabilities of $6,523 million mainly due to RMA 

higher coverage amount, loss ratio, underwriting gain, and unearned premium. 

Decrease in Benefits Due and Payable of $4,750 million mainly due to FNS State partners in 

Child Nutrition (CN) and Supplemental Nutrition Assistance Program (SNAP) more fully 

utilizing available resources. 

Decrease in Accounts Payable of $1,409 million mainly due to FSA Coronavirus Food 

Assistance with no new funding available. 

Decrease in Loan Guarantee Liability of $1,930 million mainly due to RD reestimates. 
40 Section I | Management’s Discussion and Analysis 

Consolidated Statements of Net Cost 

Net Cost of Operations 

Net cost of operations for FY 2021 was $234,146 million, compared to $191,679 million for 

FY 2020, an increase of $42,467 million, or 22 percent. 

The following exhibit presents FY 2021 net cost of operations by mission area. 

Exhibit 12: Net Cost of Operations by Mission Area ($millions) 

70%

22%

3%

2% 1% 1% 1%

Food, Nutrition and Consumer Services - $163,189

Farm Production and Conservation - $50,353

Natural Resources and Environment - $7,510

Marketing and Regulatory Programs - $5,828

Rural Development - $1,227

Research, Education and Economics - $3,070

Staff Offices - $1,418

Food Safety - $1,108

Trade and Foreign Agricultural Affairs - $443

The following exhibit presents significant changes in net cost of operations. 

Exhibit 13: Significant Changes in Net Cost of Operations ($ millions) 

2021

$163,189 

2021

$7,510 

2021

$5,828 2021

$1,227 

2020

$122,335 

2020

$6,145 

2020

$4,611 

2020

$3,251 

Food, Nutrition and Consumer

Services

Natural Resources and

Enviroment

Marketing and Regulatory

Programs

Rural Development
USDA | 2021 Agency Financial Report 41

Increase in Food, Nutrition and Consumer Services of $40,854 million mainly due to SNAP for 

COVID-19. 

Increase in Natural Resources and Environment of $1,365 million mainly due to the severe fire 

season. 

Increase in Marketing and Regulatory Programs of $1,217 million mainly due to COVID-19. 

Decrease in Rural Development of $2,024 million mainly due to reestimates for Loan Grant 

programs. 

Combined Statements of Budgetary Resources 

Budgetary Resources 

USDA receives most of its funding from appropriations authorized by Congress and 

administered by the U.S. Department of the Treasury. Total budgetary resources consist of the 

balance at the beginning of the year, appropriations received during the year, spending authority 

from offsetting collections, and other budgetary resources. 

Total budgetary resources were $424,382 million for FY 2021 compared to $358,184 million in 

FY 2020, an increase of $66,198 million, or 18 percent. The following exhibit presents FY 2021 

total budgetary resources by mission area. 

Exhibit 14: Total Budgetary Resources by Mission Area ($ millions) 

63%

19%

9%

3%

3%

2% 1%

Food Nutrition and Consumer Services - $267,520

Farm Production and Conservation - $80,746

Rural Development - $35,923

Natural Resources and Environment - $13,703

Marketing and Regulatory Programs - $10,612

Staff Offices - $8,281

Research, Education and Economics - $5,037

Food Safety - $1,586

Trade and Foreign Agricultural Affairs - $974
42 Section I | Management’s Discussion and Analysis 

The following exhibit presents significant changes in total budgetary resources. 

Exhibit 15: Significant Changes in Total Budgetary Resources ($ millions) 

2021

$267,519

2021

$80,745

2021

$35,924

2021

$13,703

2021

$10,613

2021

$8,281

2020

$176,202

2020

$108,877

2020

$42,011

2020

$11,972

2020

$9,145 2020

$2,320

Food, Nutrition and

Consumer Services

Farm Production and

Conservation

Rural Development Natural Resources and

Environment

Marketing and

Regulatory Programs

Staff Offices

Increase in Food, Nutrition and Consumer Services of $91,317 million mainly due to SNAP. 

Decrease in Farm Production and Conservation of $28,132 million mainly due to FSA 

Coronavirus Food Assistance and CCC Agriculture Risk Coverage/Price Loss Coverage and 

Trade Mitigation programs. 

Decrease in Rural Development of $6,087 million mainly due to unobligated balance from prior 

year budget authority. 

Increase in Natural Resources and Environment of $1,731 million mainly due to the severe fire 

season. 

Increase in Marketing and Regulatory Programs of $1,468 million mainly due to APHIS 

response to the ASF outbreak in the Dominican Republic and Haiti, supplemental funding for 

COVID-19, and Agricultural Quarantine Inspection. 

Increase in Staff Offices of $5,961 million mainly due to Office of the Secretary supplemental 

funding for COVID-19. 
USDA | 2021 Agency Financial Report 43

Net Outlays 

Net Outlays were $235,218 million for FY 2021, compared to $184,248 million in FY 2020, an 

increase of $50,970 million or 28 percent. The following exhibit presents FY 2021 net outlays by 

mission area. 

Exhibit 16: Net Outlays by Mission Area ($ millions) 

71%

20%

3%

3%

1% 1% 1%

Food Nutrition and Consumer Services - $166,558

Farm Production and Conservation - $47,509

Natural Resources and Environment - $7,874

Marketing and Regulatory Programs - $6,245

Research, Education and Economics - $3,137

Rural Development - $2,004

Food Safety - $1,070

Staff Offices - $416

Trade and Foreign Agricultural Affairs - $405

The following exhibit presents significant changes in net outlays by mission area. 

Exhibit 17: Significant Changes in Net Outlays ($ millions) 

2021

$166,558

2021

$7,874

2021

$6,245

2021

$2,004

2020

$114,219

2020

$5,850

2020

$5,017

2020

$6,427

Food, Nutrition and Consumer

Services

Natural Resources and

Environment

Marketing and Regulatory

Programs

Rural Development

Increase in Food Nutrition and Consumer Services of $52,339 million mainly due to SNAP and 

CN for COVID-19. 
44 Section I | Management’s Discussion and Analysis 

Increase in Natural Resources and Environment of $2,024 million mainly due to the severe fire 

season. 

Increase in Marketing and Regulatory Programs of $1,228 million mainly due to Food Box 

Distribution program and Section 32. 

Decrease in Rural Development of $4,423 million mainly due to Rural Electric and Telephone 

liquidating account and Rural Water and Waste program account. 

COVID-19

USDA received $86,662 million of FY 2021 supplemental appropriations to prevent, prepare for, 

or respond to COVID-19 (i.e., coronavirus disease 2019) through the Consolidated 

Appropriations Act, 2021 and the American Rescue Plan Act of 2021.

The Consolidated Appropriations Act, 2021 provided funding for, extended, and set out policies 

for various programs and activities, including COVID-19 economic relief measures. It extended 

modifications to federal nutrition assistance programs for children, pregnant women, and older 

adults and provided funding for programs to support agricultural producers, growers, and 

processors. 

The American Rescue Plan Act of 2021 provided additional relief to address the continued 

impact of COVID-19 on the economy, public health, state and local governments, individuals, 

and businesses. 

This funding was in addition to funding received through the Coronavirus Aid, Relief, and 

Economic Security (CARES) Act and Families First Coronavirus Response Act in FY 2020. 

The unobligated balances from prior year and total supplemental current year, including recoveries 

and adjustments was $111,550 million. Total obligations and outlays were $81,049 million and 

$78,476 million, respectively. Total amount remaining to be obligated is $30,501 million. 

See Note 30, COVID-19 Activity for financial impact of supplemental appropriations.

Stewardship Investments 

Stewardship investments are substantial investments made by the Federal Government for the 

benefit of the Nation but are not physical assets owned by the Federal Government. When 

incurred, they are treated as expenses in determining the net cost of operations. However, these 

items merit special treatment so that users of Federal financial reports know the extent of 

investments that are made for long-term benefit. Such investments are measured in terms of 

expenses incurred for non-Federal physical property, human capital, and research and 

development. The following exhibit presents a comparison of stewardship investments. 
USDA | 2021 Agency Financial Report 45

Exhibit 18: Comparison of Stewardship Investments ($ millions) 

 

 

 

 

 

 

 

 

 

 

 

 

 

Limitations of Financial Statements 

The principal financial statements are prepared to report the financial position, financial 

condition, and results of operations, pursuant to the requirements of 31 U.S.C. § 3515(b). 

The statements are prepared from records of Federal entities in accordance with Federal 

generally accepted accounting principles (GAAP) and the formats prescribed by OMB. Reports 

used to monitor and control budgetary resources are prepared from the same records. Users of 

the statements are advised that the statements are for a component of the U.S. Government. 
46 Section I | Management’s Discussion and Analysis 

Statement of Assurance 

The United States Department of Agriculture (USDA) is providing a modified statement of assurance that 

the overall adequacy and effectiveness of internal control within the agency complies with Federal 

requirements. 

USDA’s management recognizes its responsibility for establishing and maintaining effective internal 

controls and financial management systems that comply with the Federal Managers’ Financial Integrity 

Act of 1982 (FMFIA). 

The Department assessed the effectiveness of internal controls over financial reporting in accordance with 

FMFIA, Section 2 and OMB Circular No. A-123, Appendix A, and provides reasonable assurance that 

USDA’s systems of internal control meet the objectives of the Federal Managers’ Financial Integrity Act 

(FMFIA), except for two material weaknesses in internal control related to: (1) information technology 

(IT) and (2) financial management. There was also one instance of financial system non-conformance, 

which is also a non-compliance with FFMIA. USDA continues to make progress in the remediation of 

controls to support improved efficiency and effectiveness related to these areas of weakness.

USDA assessed the effectiveness of internal controls over operations and compliance with applicable 

laws and regulations in accordance with the FMFIA Section 2 and the Office of Management and Budget 

(OMB) Circular No. A-123 and provides reasonable assurance that the internal controls over operations 

are effective. However, USDA continues to report instances of non-compliance with the laws governing 

improper payments and anti-deficiency violations. 

We also assessed the compliance of USDA’s financial management systems with federal financial 

management systems requirements in accordance with FMFIA Section 4; FFMIA Section 803(a); and 

OMB Circular No. A-123, Appendix D. They require federal agencies to implement and maintain 

financial management systems that comply with federal financial management system requirements, 

applicable federal accounting standards, and the U.S. Standard General Ledger at the transaction-level. As 

a result of the assessments conducted, we are reporting a financial system non-conformance, and noncompliance with FFMIA. 

The details of the exceptions are provided in the FMFIA, FFMIA, and Summary of Financial Statement 

Audit and Management Assurances sections of this report. No other material weaknesses were found in 

the design of the internal control over (1) the effectiveness and efficiency of operations and compliance 

with applicable laws and regulations as of September 30, 2021, and (2) internal control over reporting as 

of September 30, 2021. 

USDA remains committed to operating its programs and operations in an effective and efficient manner 

and its financial management systems in compliance with Federal requirements; and therefore, is 

executing plans to improve deficient internal controls and areas of non-compliance. 

Thomas J. Vilsack 

Secretary of Agriculture 

November 12, 2021 
USDA | 2021 Agency Financial Report 47

Federal Managers’ Financial Integrity Act 

Report on Management Control 

Background 

The Federal Managers’ Financial Integrity Act of 1982 (FMFIA) requires ongoing evaluations of 

internal controls and financial management systems. These evaluations lead to an annual 

statement of assurance that: 

• Obligations and costs comply with applicable laws and regulations; 

• Federal assets are safeguarded against fraud, waste, abuse, and mismanagement; 

• Transactions are accounted for and properly recorded; and 

• Financial management systems conform to standards, principles, and other requirements to 

ensure that Federal managers have timely, relevant, and consistent financial information for 

decision-making purposes. 

The U.S. Department of Agriculture evaluated its internal controls in accordance with the Office 

of Management and Budget (OMB) Circular No. A-123, Management’s Responsibility for 

Enterprise Risk Management and Internal Control. 

The Department operates a comprehensive internal control program. This program ensures 

compliance with the requirements of FMFIA, the Federal Financial Management Improvement 

Act of 1996 (FFMIA), other laws, OMB Circular No. A-123 and its Appendices A through D. 

USDA managers must ensure their programs operate efficiently and effectively and comply with 

relevant laws. They must also ensure that financial management systems conform to applicable 

laws, standards, principles, and related requirements. In conjunction with the Office of Inspector 

General and the Government Accountability Office (GAO), USDA’s management works 

decisively to determine the root causes of its material weaknesses so that it can direct resources 

to focus on their remediation. 

USDA remains committed to reducing and eliminating the risks associated with its deficiencies. 

It also strives to operate its programs efficiently and effectively in compliance with FMFIA and 

other applicable laws and regulations. 
48 Section I | Management’s Discussion and Analysis 

Fiscal Year 2021 Results 

The Department has two existing material weaknesses in internal control over reporting: 

(1) Information Technology (IT) and (2) financial management. The material weakness for 

financial management is due to needed improvements in accounting and internal controls related 

to the Natural Resources Conservation Service (NRCS), Farm Service Agency (FSA), and 

Commodity Credit Corporation (CCC). The Risk Management Agency (RMA) prior year 

deficiency related to estimated losses on insurance claims has been corrected and is no longer a 

material weakness. USDA also has one existing system non-conformance related to Funds 

Control Management within the CCC, which will be resolved by the end of fiscal year (FY) 2025. 

The Food and Nutrition Service (FNS) and the Farm Service Agency (FSA) are non-compliant 

with laws and regulations related to the Payment Integrity Information Act of 2019. 

USDA has identified violations or potential violations with the Anti-Deficiency Act (ADA). 

One ADA violation was reported to the President and Congress during the fiscal year. The Office 

of the General Counsel (OGC) determined that three potential instances were not ADA violations; 

however, two of these instances have been referred to GAO for a determination. Two newly 

identified potential violations were referred to OGC. Two instances are pending submission to the 

President and Congress. A detailed description and summary of the Department’s ADAs can be 

found in the Compliance with Laws and Regulations section of this report. 

The Secretary’s Statement of Assurance provides modified assurance that the USDA’s internal 

control system complies with FMFIA objectives. For additional details on the results reported in 

USDA’s Consolidated Financial Statements Audit Report, see the Summary of Financial 

Statement Audit and Management Assurances section of this report. 
USDA | 2021 Agency Financial Report 49

Summary of Outstanding Material Weaknesses 

Exhibit 19 provides FY 2021 accomplishments and FY 2022 planned actions toward resolving 

the outstanding material weaknesses. 

Exhibit 19: Summary of Outstanding Material Weaknesses 

1. USDA Information Technology (IT) 

Material Weaknesses 

Existing 

The Department needs to continue its efforts to improve IT security and 

overall IT maturity to an effective level. Additionally, the Department needs to 

continue remediation of its remaining outstanding audit recommendations. 

Overall Estimated 

Completion Date FY 2023 

FY 2021 Accomplishments: FY 2022 Planned Actions: 

During FY 2021, the Office of the Chief Information 

Officer (OCIO): 

• Assessed the USDA enterprise; 

• Developed a Cybersecurity Risk Management 

Strategy, Cybersecurity Supply Chain Risk 

Management Strategy, Cybersecurity Supply 

Chain Risk Management Contract Language, 

and Vulnerability Disclosure Policy; 

• Improved the Risk Management Assessment 

risk rating for privileged centralized 

management from High Risk in FY 2020 to At 

Risk in FY 2021; 

• Achieved 8 of 10 Cross-Agency Priority Goals in 

the third quarter of FY 2021; 

• Implemented a total of 15 audit 

recommendations from FY 2018, FY 2019, and FY 

2020 that were issued by the Office of the 

Inspector General and the Government 

Accountability Office; and 

• Achieved a B+ on the Federal Information 

Technology Reform Act (FITARA) Dashboard, 

with scores above the average of other 

Agencies in the categories of Data Center 

Optimization Initiative, Modernizing 

Government Technology, and Transition Off 

Network. 

During FY 2022, OCIO plans to: 

• Deploy Cybersecurity Diagnostic & Migration 

(CDM) tools and refine the alignment of 

operational processes; 

• Complete implementation of the End User 

Consolidation program; 

• Continue the implementation of audit 

recommendations; 

• Continue to align Cybersecurity Risk 

Management with Enterprise Risk 

Management; 

• Publish five Departmental Directives that 

address Awareness and Training, Contingency 

Planning, Log Retention, Personnel Security, 

and Updates from Authoritative References; 

• Automate the generation of System Security 

Plans and incorporate Open Security Control 

Assessment Language (OSCAL); and 

• Continue to track, monitor, and enforce 

security configuration baselines for USDA 

servers. 
50 Section I | Management’s Discussion and Analysis 

2. Financial Management—Natural Resources Conservation Service (NRCS) 

Material Weaknesses 

Existing 

NRCS needs improved (1) controls over obligations and unfilled customer 

orders, (2) controls over expenses, and (3) entity-level controls. 

Overall Estimated 

Completion Date FY 2022 

FY 2021 Accomplishments: FY 2022 Planned Actions: 

NRCS 

• Implemented process improvements to 

maintain, monitor, and certify unliquidated 

obligations (ULOs) by the period of 

performance to ensure ULOs are being closed 

out timely to prevent a backlog of aged 

obligations from developing in the future; 

• Provided additional guidance and/or training 

to employees over the recording of 

transactions with future economic benefits; 

• Provided guidance and/or training to 

personnel relating to the accrual policy; 

• Designed, implemented, and documented 

policies and procedures to properly analyze 

and record internal use software expenditures 

and capitalized costs; and 

• Evaluated the FY 2020 financial audit results 

and the lessons learned to ensure the proper 

controls are in place. 

NRCS will: 

• Continue implementing policies and 

procedures to perform a quarterly analysis 

over open obligations marked for review that 

received no responses from responsible 

parties to determine if a material amount is 

being omitted from accrued expenses; 

• Evaluate the results of the FY 2021 financial 

audit and the lessons learned to ensure the 

proper controls are in place; and 

• Continue to provide guidance and/or training 

to employees over the recording of expense 

accruals. 

3. Financial Management—Commodity Credit Corporation (CCC) 

Material Weaknesses 

Existing 

CCC needs to address material weaknesses related to Accounting for 

Budgetary Transactions. 

Overall Estimated 

Completion Date FY 2025 

FY 2021 Accomplishments: FY 2022 Planned Actions: 

CCC 

Implemented effective undelivered orders monitoring 

controls at the program level throughout the 

organization; and 

Implemented effective processes, procedures, and 

controls over the Agriculture Risk Coverage (ARC) and 

Price Loss Coverage (PLC) (ARC/PLC) year-end accrual.

CCC will: 

Continue to implement effective processes, 

procedures, and controls over the ARC/PLC 

year-end accrual. 

Continue to implement effective undelivered 

orders monitoring controls at the program 

level throughout the organization. 
USDA | 2021 Agency Financial Report 51

4. Financial Management - Farm Service Agency (FSA) 

Material Weaknesses 

Existing 

FSA needs to improve Fund Balance with Treasury (FBwT) reconciliation 

process to ensure new program activity is included in the reconciliations and 

reconciling differences are resolved timely. 

Overall Estimated 

Completion Date 9/30/2022 

FY 2021 Accomplishments: FY 2022 Planned Actions: 

• Implemented reconciliations for new 

programs; and 

• Updated standard operating procedures. 

• Implement a roll-up FBwT reconciliation for 

the FBwT amounts reported in its financial 

statements to ensure effective monitoring of 

the completeness of all reconciliations; 

• Implement the updates to the standard 

operating procedures; and 

• Improve process narratives to capture 

organizational roles and responsibilities. 
52 Section I | Management’s Discussion and Analysis 

Summary of Outstanding System Non-Conformance 

Funds Control Management non-conformance is also reported as a system non-compliance and is 

included in the FFMIA Report on Financial Management Systems. The weakness involves 

component agency-specific deficiencies for CCC. 

Exhibit 20 provides FY 2021 accomplishments and FY 2022 planned actions toward resolving 

the Department’s outstanding system non-conformance. 

Exhibit 20: Summary of Outstanding System Non-Conformance 

1. Funds Control Management— Commodity Credit Corporation (CCC) 

System 

Non-conformance Existing 

CCC system improvements that are needed in recording obligations at 

the transactional level. 

Overall Estimated 

Completion Date FY 2025 

FY 2021 Accomplishments: FY 2022 Planned Actions: 

CCC 

• Evaluated all budgetary general and subsidiary 

ledgers to ensure they reflect the appropriate 

accounting and reporting guidance provided 

by the Office of Management and Budget 

(OMB) and the U.S. Treasury; 

• Partnered with Deputy Administrator Farm 

Programs and the Information Technology 

Services Division (ITSD) toward completing 

software modifications to ensure all program 

applications were in full compliance with the 

Funds Control/Obligation Requirements (such 

as business events, establishments, 

liquidations, adjustments downward and 

upward) related to obligations at the 

transaction level in order to prepare for 

Financial Management Modernization 

Initiative (FMMI) conversion; and 

• Implemented the Farm Service Agency 

(FSA)/CCC Financial Improvement Program 

multi-phased, multi-year project; moved some 

financial management processes from Farm 

Production and Conservation (FPAC) and its 

affiliated agencies’ accounting and feeder 

systems to FMMI. 

CCC will: 

• Continue to evaluate all budgetary general and 

subsidiary ledgers to ensure they reflect the 

appropriate accounting and reporting 

guidance provided by OMB and the U.S. 

Treasury; 

• Continue to partner with Deputy Administrator 

Farm Programs and ITSD toward completing 

software modifications to ensure all program 

applications were in full compliance with the 

Funds Control/Obligation Requirements (such 

as business events, establishments, 

liquidations, adjustments downward and 

upward) related to obligations at the 

transaction level in order to prepare for FMMI 

conversion; and 

• Continue to implement the FSA/CCC Financial 

Improvement Program multi-phased, multiyear project; move all financial management 

processes from FPAC and its affiliated 

agencies’ accounting and feeder systems to 

FMMI. 
USDA | 2021 Agency Financial Report 53

Compliance with Laws and Regulations 

The U.S. Department of Agriculture remains non-compliant or potentially non-compliant with 

the Anti-Deficiency Act (ADA) as identified in the following table. For additional information 

on non-compliance with laws, refer to the Payment Integrity Information Act of 2019 and the 

Federal Financial Management Improvement Act sections of this report. 

The Department has developed strategies to reduce and/or mitigate confirmed violations during 

fiscal year (FY) 2021. The following tables provide further details of each violation. 

Anti-Deficiency Act (ADA) 

Exhibit 21: One ADA Violation was Reported to the President and Congress During 2021 

Agency: Commodity Credit Corporation (CCC) Year Identified 

Violation: FY 2020 Export Credit Guarantees (GSM) is a mandatory program 

authorized under 7 U.S. Code (U.S.C) 5622 (program authority 

overall) and 7 U.S.C 5641(b) (funding level). GSM had an approved 

apportionment in FY 2017 with sufficient budgetary resources to 

cover obligations during FY 2017. The budgetary resources included 

both the unobligated balance carried forward and a new 

mandatory appropriation. The unobligated balance carried forward 

consisted of indefinite budget authority, however, which cannot be 

carried forward per the A-11. The current appropriation for that 

year was insufficient to cover the total obligations by 

$1,139,395.58. 

FY 2020 

Exhibit 22: ADA Violation Pending Submission to the President and Congress 

Two additional ADA violations are pending the issuance of letters. 

Agency Description of Violation Status 

OCIO FY 2021 (NEW): Funding for an IT Modernization Center of 

Excellence initiative in FY 2018 was obligated in the amount 

of $7,000,000 without first obtaining E-Board concurrence. 

OGC determined an 

ADA violation 

occurred. 

Office of the 

Secretary 

FY 2017: Two provisions in the Consolidated Appropriations 

Act, 2017, were violated. USDA obligated and expended 

funds appropriated by the act to prepare and deliver the 

Secretary’s statements and develop and publish the 

Associated Press release. USDA’s obligation and expenditure 

of appropriated amounts for this prohibited purpose also 

violated the ADA, 31 U.S.C. § 1341(a)(1)(A). The cost 

associated with the violation is pending. 

The Government 

Accountability Office 

(GAO) determined an 

ADA violation had 

occurred. 
54 Section I | Management’s Discussion and Analysis 

Potential ADA Violations—Three prior year and two new potential violations were identified 

during FY 2021. No violation was determined for one potential occurrence, two were referred to 

OGC and two are pending a determination by the Government Accountability Office (GAO). 

This table provides a description and the status of each violation. 

Exhibit 23: Prior Year and Newly Identified Potential ADA Violations 

Agency Description of Violation Status 

CCC FY 2017: The prior year accounting treatment for 

obligations related to the Conservation Reserve 

Program—Annual Rental contracts were 

determined to be in error with an ADA total of 

$9,921,859,680. Only the annual portion of the 

contract values was recorded as an obligation. 

OGC determined that the error 

was not an ADA violation; 

however, the incident has been 

referred to GAO for additional 

investigation and determination. 

CCC FY 2018: Emergency Forestry Conservation 

Reserve Program—CCC failed to record the 

obligation for the total value of the long-term 

contract when the contract was signed. The ADA 

violation amount was $2,200,000. 

OGC determined that the error 

was not an ADA violation; 

however, the incident has been 

referred to GAO for additional 

investigation and determination. 

FPAC-BC FY 2021 (NEW): FPAC-BC did not receive 

Investment Review Board approval or obtain an 

approved Information Technology Acquisition 

Approval Request before obligating $352,800 for 

contractor support to create an Unliquidated 

Obligations Analysis and Certification tool. 

Referred to OGC. 

NRCS FY 2021 (NEW): USDA's Office of the Chief 

Information Officer, using NRCS funds, renewed a 

contract for $516,824 to obtain needed software 

licenses. It was discovered that NRCS had been 

historically using more licenses than they had 

purchased. Efforts are under-way to determine 

the extent of the over-usage from 2013-2021. 

Referred to OGC. 

The Office of the 

Chief Information 

Officer (OCIO) 

FY 2020: OCIO potentially used more than 

$22.5 million for consulting services that had been 

mandated for the acquisition of capital 

investments. 

OGC determined no violation 

occurred. 
USDA | 2021 Agency Financial Report 55

Federal Financial Management 

Improvement Act Report on Financial 

Management Systems 

Background 

The Federal Financial Management Improvement Act of 1996 (FFMIA) is designed to improve 

financial and program managers’ accountability, provide better information for decision-making, 

and improve the efficiency and effectiveness of Federal programs. FFMIA requires that financial 

management systems provide reliable, consistent disclosure of financial data in accordance with 

generally accepted accounting principles and standards. These systems must also comply with 

(1) Federal Financial Management System (FFMS) requirements, (2) applicable Federal 

accounting standards, and (3) the U.S. Standard General Ledger (USSGL) at the transaction level. 

Failure to resolve prior-year recommendations identified by the U.S. Department of 

Agriculture’s Office of Inspector General has prevented the Department from mitigating 

repeated deficiencies and receiving a quality rating on the five Cybersecurity Framework 

security functions. More detailed information on the status of corrective actions planned and to 

be completed to comply with the Federal Information Security Modernization Act (FISMA) is 

provided in the Federal Managers’ Financial Integrity Act Report on Management Control 

section of this report. 

Exhibit 24 contains the outstanding initiatives to achieve compliance. 

Exhibit 24: Initiatives to be Completed 

Outstanding Initiatives to Achieve Federal Financial Management Improvement Act (FFMIA) 

Compliance 

Initiative Section of Non-Compliance Agency Target Completion Date 

Information 

Technology 

Federal Financial Management 

System requirements and information 

security policies, procedures, and/or 

practices. 

Multiple 9/30/2022 

Financial 

Management 

Federal accounting standards and the 

U.S. Standard General Ledger (USSGL) 

at the transaction level. 

Natural Resources 

Conservation 

Service 

9/30/2022 

Federal accounting standards and 

USSGL at the transaction level. 

Commodity Credit 

Corporation 12/31/2024 
56 Section I | Management’s Discussion and Analysis 

Fiscal Year 2021 Results 

During fiscal year (FY) 2021, the USDA evaluated its financial management systems to assess 

compliance with FFMIA. In assessing FFMIA compliance, USDA considered auditors’ opinions 

on component agencies’ financial statements and progress in addressing the material weaknesses 

identified in the FY 2020 Agency Financial Report. USDA is not compliant with Federal 

accounting standards and the USSGL at the transaction level due to deficiencies identified for the 

Commodity Credit Corporation (CCC) and the National Resources Conservation Service 

(NRCS). Additionally, as reported in the FFMIA section of this report, USDA continues to have 

weaknesses in the information technology controls and FFMS requirements that resulted in noncompliance with the FISMA requirement. USDA agencies will continue working to meet 

FFMIA and FISMA objectives as part of its financial systems strategy. 

Commodity Credit Corporation (CCC) 

CCC’s non-compliance with Federal accounting standards and USSGL at the transaction level 

was noted for the weakness in the accounting for budgetary transactions. The financial 

management systems did not record certain accounting events at the transaction level in 

accordance with the USSGL. CCC continues to make significant progress in performing 

compensating controls over the accounting for obligation activity. CCC will continue 

implementing its program obligation activity into the Financial Management Modernization 

Initiative in a phased approach. 

Natural Resources Conservation Service (NRCS) 

NRCS’s non-compliance with Federal accounting standards and USSGL at the transaction level 

was noted for weaknesses in NRCS’s systems that do not transmit complete and accurate 

information for certain types of budgetary transactions to facilitate the proper recording of those 

transactions. 
USDA | 2021 Agency Financial Report 57

Financial Management Systems Strategy 

The U.S. Department of Agriculture (USDA) Financial Management Services (FMS) component 

of the Office of the Chief Financial Officer (OCFO) provides timely, accurate, and complete 

financial information to USDA agencies to execute their mission. Specifically, FMS provides 

cloud-based, commercial off-the-shelf enterprise resource planning (ERP) software that equips 

USDA staff offices and agencies with the functionality necessary to distribute, obligate, expend, 

and report on the funds entrusted to them by the U.S. Congress. 

FMS operates as an internal Shared Services Provider (SSP) to USDA staff offices and agencies. 

FMS offers proactive, cost-effective services providing value-added management services, 

expertise, and consultation to Federal Agencies to generate efficiencies and support through the 

consolidation and standardization of functions, standard processing, and repeatable processes. 

The OCFO leverages financial system successes to deliver future programs and tools to deliver 

efficient, cost-effective, mission-focused, collaboratively developed, and strategically aligned 

programs and tools. OCFO’s systems’ objectives in FY (fiscal year) 2021 are to: 

• Build Financial System agility and visibility through integrated ERP systems capability and 

deploying emerging technology. 

• Expand capabilities of the OCFO systems to share, reuse, and integrate business capabilities, 

technology, and data across the Department and with external partners and stakeholders. 

• Increase application and system efficiencies by collaborating in Department-wide application 

rationalization efforts. 

The OCFO will continue to advance its financial systems by implementing emerging ERP 

technology platforms, improving connectivity, reducing the marginal costs of accessing 

information, and providing new ways to aggregate and analyze information.

Financial Management Lines of Business 

FMS’s mission as an internal SSP is to provide reliable, cost-effective, employee-centric systems 

and services to USDA organizations, thus enabling customers to focus on serving this great 

Nation through their mission delivery. FMS’s goal is to provide the necessary activities for 

executing the Financial Management Lines of Business vision. The three central components of 

this vision are (1) communication, (2) governance, and (3) operations. 
58 Section I | Management’s Discussion and Analysis 

FMS’s key activities include: 

• Budget execution. 

• General ledger accounting. 

• Financial reporting. 

• Audit support. 

• Payroll accounting. 

• Investment accounting. 

• Commercial vendor payments. 

• Temporary duty travel payments. 

• Permanent change of station employee relocation payments. 

• Grant payments. 

• Purchase card payments. 

• Lease accounting. 

• Intragovernmental payments. 

• Intragovernmental collections. 

• Receivable management. 

• Property accounting. 

• Grants management. 

FMS’s primary objectives are to: 

• Enhance the enterprise financial management services to provide faster, less expensive, and 

low-risk solutions to customers. 

• Integrate with the National Finance Center (NFC) payroll processing services. 

• Provide an enterprise grants management service that features a full life cycle management 

tool for grants administration to provide visibility to the government and the grant recipient. 

• Maintain a complete audit-compliant financial solution with full documentation meeting 

financial requirements. 

• Pursue continuous process, operational, and organizational improvements for shared services 

retained in the future state portfolio. 

• Provide powerful and flexible financial management and reporting. 

• Process administrative payments, collections, and certifications timely and accurately. 
USDA | 2021 Agency Financial Report 59

Successes During Fiscal Year 2021 

Robotics Process Automation 

Since the transition of the Robotics Process Automation (RPA) and Services Management Office 

to the Office of Chief Information Officer (OCIO) Digital Infrastructure Services Center (DISC), 

the OCFO RPA team continues to maintain, support, and enhance enterprise financial RPAs and 

collaborate with USDA Mission Areas such as Food Safety and Farm Production and 

Conservation. Working with these Mission Areas, OCFO has enhanced the Enterprise Budget 

Bot (EBB) by adding additional forms the bot can access and edit to minimize the work of the 

analyst. The OCFO completed User Acceptance Testing and migrate new code to production in 

the fourth quarter of FY 2021. The OCFO will migrate new code to other Mission Areas 

following the initial deployment of the EBB. 

The OCFO RPA project team worked with key OCFO stakeholders and partner organizations on 

the following efforts in FY 2021: 

• Completing cohort bots, enhancing RPA training, and migrating into production for 

additional labor savings. 

• Facilitating Operations and Maintenance in support of all bots running on the OCFO RPA 

DISC tenant environment. 

• Teaming with industry leaders to develop an artificial intelligence prototype that represents 

the next progression of automation beyond bot technology. 

Farm Service Agency/Commodity Credit Corporation Financial Improvement 

Program 

The Farm Service Agency’s (FSA) financial accounting, including the Commodity Credit 

Corporation, whose programs are operated primarily by FSA, is not integrated with the rest of 

USDA in the Financial Management Modernization Initiative (FMMI) system, creating 

reconciliation and other issues which include additional costs to maintain a separate set of systems.

This project is a multi-phased, multi-year agile development project that will ultimately move all 

financial management processes from FSA accounting and feeder systems to FMMI. 

Simultaneously, FSA will be required to align its feeder systems to produce auditable financial 

data to integrate with FMMI. In FY 2021, the Financial Improvement Program project: 

• Continued the FMMI interface development that supported four agile development planning 

increments, which included (1) the completion of interface functionality for fund 

management, (2) payments and disbursements, (3) debt management and collection, and (4) 

FMMI crosswalk. 
60 Section I | Management’s Discussion and Analysis 

• Conducted performance stress testing in a stress lab environment in the 4th Quarter of 

FY 2021. 

Grants Management 

The ezFedGrants (eFG) System is an online system used for managing a grant’s entire life cycle. 

Members of grant-seeking organizations use the eFG External Portal to view and apply for grant 

award opportunities, view grant award package documents, and submit claims and reports, 

among other actions. The eFG program is designed for servicing grants to organizations such as 

educational institutions and research organizations.

OCFO’s FMS is the eFG system owner whose mission is to provide guidance and leadership in 

program management, governance, grants and agreements policy, and information technology 

(IT) related to the eFG community. The enterprise grants and agreements management solution 

encompasses six USDA agencies and includes more than 50 Financial Assistance Listings while 

transforming USDA’s grants and agreements capabilities. The eFG system supports various 

Federal initiatives, such as homeownership opportunities to low-and moderate-income rural 

Americans, organic agriculture, and numerous other grant and agreement-related programs to 

serve the American public better. 

In FY 2021, eFG’s initiatives: 

• Migrated the Agricultural Marketing Service grant agreements from eFG to the 

U.S. Department of Health and Human Services (HHS) GrantSolutions grants systems. 

Although not expected to be completed until October 2021, this effort enables other USDA 

agencies to migrate to HHS GrantSolutions. 

• Started the National Institute of Food and Agriculture project to improve the overall user 

experience and system reconciliation process related to the Automated Standard Application 

for Payments. 

• Provided system training to 1,531 internal and external users on eFG. The eFG system has 

6,837 users (5,204 external users and 1,633 internal users) to date in FY 2021. 

• Continued to maintain a robust user education site, WikiGrants, as an internal repository of 

eFG related materials, such as user guides, training modules, and frequently asked questions 

that received 972 unique visitors in FY 2021.

• Deployed 2,081 new FY 2021 agreements. During the life of the eFG system, 18,199 

agreements have been deployed, and 8,393 are active or in draft status. 

• Resolved 3,719 Tier 0 through Tier 1 (2,950 Tier 0 and 769 Tier 1) tickets through the OCFO 

Grants Helpdesk as a first responder to customer inquiries. 
USDA | 2021 Agency Financial Report 61

• Resolved 109 eFG system incidents (39 system defects and 70 enhancements) in FY 2021 via 

the eFG Post-Production Support Team. Additionally, 866 priority one-time system fixes 

were also resolved in FY 2021.

Agriculture Conference Management System

The Agriculture Conference Management System (AgCMS) has replaced the Conference 

Transparency and Accountability Tool (CTAT). Agencies used the custom-built CTAT to 

comply with Conference Reporting requirements outlined in the 2018 Farm Bill, the Office of 

Management and Budget (OMB) Memorandum 17-08, and the Consolidated Appropriations Act, 

2020 (Public Law [PL] 116-93). AgCMS now offers users a powerful tool that is easily 

configurable to comply with new regulatory mandates and user-friendly features, including the 

ability to access the application on a mobile device and more transparency via a robust, drillin dashboard. 

The scope of the project also included migrating all data from CTAT and ensuring the new 

system (built on the USDA Salesforce platform) can provide mobile capability, eAuthentication 

access, and up to 20 additional reports in addition to the same functionality as CTAT. 

In FY 2021, the AgCMS project team: 

• Delivered multiple iterations (sprints) of design, development, and testing. 

• Migrated the existing conference data to the new system and set up user accounts. 

• Deployed the new system and trained its user community. 

• Retired the CTAT. 

USDA Budget Object Class Initiative 

The purpose of this project is to support the USDA Budget Modernization effort. OCFO’s role in 

this effort is to ensure Budget Object Classification (BOC) code compliance with OMB Circular 

A-11, Section 83. USDA is now in the discovery phase of the BOC initiative, which is scheduled 

to be completed by October 31, 2021. 

The BOC initiative ensures that the use of BOC’s in FMMI complies with Section 83 of OMB 

Circular A-11. This effort includes: 

• Continuing analysis of all BOC Series. 

• Updating the BOC Manual. 

• Performing analysis to ensure data quality. 
62 Section I | Management’s Discussion and Analysis 

• Gathering requirements on the impact of the BOC changes on the USDA interface systems, 

adobe forms, and internal processes within FMMI to determine solutions. 

• Adding BOC standards to policy and process flows to maintain compliance with OMB 

Circular A-11. 

The BOC initiative will possibly extend into FY 2024.

Enterprise Architecture Program 

The OCFO Enterprise Architecture (EA) Program delivers cost-effective, mission-focused, 

collaboratively developed, and strategically aligned programs and services to its many 

stakeholders and the Nation. This ground-up effort achieved numerous focused objectives during 

FY 2021, including the following: 

• Implemented maturity upgrades to the OCFO EA Program through significantly increased 

skills and capabilities of the OCFO EA team and maturation of program procedures and 

governance. The program increased one entire maturity level on the U.S. Government 

Accountability Office (GAO) EA Maturity Scale. The increased program maturity has helped 

the program to continue meeting numerous Federal Legal Authorities and Regulatory 

Drivers, including the Clinger-Cohen Act of 1996 (CCA), the E-Government Act of 2002, 

OMB Circular A-11, OMB Circular A-130, OMB policy memorandum M-07-11, the House 

of Representatives (H.R.) 1232—Federal Information Technology Acquisition Reform Act 

(FITARA), Capital Planning and Investment Control (CPIC), and the Federal Enterprise 

Architecture Framework. 

• Implemented new procedures and EA governance standards to facilitate the responsible 

acquisition and management of IT throughout the Federal government. 

• Fully implemented the revised and integrated system development life cycle within the 

OCFO by establishing clear EA oversight and accountability into decisions and governance 

of the OCFO IT infrastructure. 

• Provided senior leadership with increased transparency and visibility regarding IT 

Management and Spend-Management as well as a line of sight from strategic goals to 

business processes and continuing into the technology architecture (for example, data, 

software, hardware, and technology infrastructure). 

Building on its successes in FY 2021, the EA team has identified the following goals in 

FY 2022: 

• Continue integrating EA with Capital Planning, Enterprise IT Governance, Data 

Management, Performance Management, Enterprise Risk Management, FITARA and 

Acquisition Management, Program Management, Strategic Planning, and Strategic Human 
USDA | 2021 Agency Financial Report 63

Capital Management. This integration will ensure the continued achievement of coordinated 

decision making throughout the OCFO and in coordination with the OCIO. 

• Continue to review and advise on all Acquisition Approval Requests (AARs) for the office 

and Department that pertain to financial management systems acquisitions and spending. 

• Further develop and mature the IT Portfolio, programs, and financial resources of the OCFO 

to align with long-term mission requirements and strategic plans required by mandates 

and laws. 

• Take action to advance the OCFO EA Program to the next level of maturity on the GAO EA 

Maturity Model scale. 

Capital Planning and Investment Control Program 

The Capital Planning and Investment Control Program (CPIC) is a systematic approach to 

selecting, managing, and evaluating IT investments. CPIC is mandated by the CCA, which 

requires Federal agencies to focus on the results produced by IT investments. The OCFO CPIC 

Program identifies the processes and activities necessary to ensure that OCFO’s IT investments 

are well-planned, cost-effective, and support the missions and business goals of the agency and 

the Department. 

The CPIC team continually monitors OCFO’s IT portfolio, mitigating risks and ensuring the 

overall health of investments. Accomplished in FY 2021 were the following: 

• Improved the health of 90 percent of OCFO’s Major and Non-Major Investments, achieving 

Chief Information Officer (CIO) rating scores of 4 (Green) or higher. 

• Maintained Investment Support Plans to monitor required artifacts for reporting purposes and 

eliminate identified weaknesses. 

• Alongside EA, provided guidance to the OCFO Project Management Office in the 

development of its Product Development Life Cycle. 

• Delineated Internal and External transfer cost within the IT Portfolio. 

Building on its successes in FY 2021, the CPIC team will achieve the following in FY 2022: 

• Identify systems-specific costs within the OCFO IT Portfolio. 

• Establish the Financial Systems AAR review process to evaluate cost savings opportunities 

across the Department. 

• Achieve CIO rating scores of 4 (Green) or higher for 100 percent of OCFO’s Major and NonMajor Investments. 

• Incorporate the NFC Retirement Processing System into OCFO’s IT Portfolio as a 

Major Investment. 
64 Section I | Management’s Discussion and Analysis 

Other Initiatives 

The Systems, Applications, and Products (SAP) G-Invoicing: OCFO is working to implement 

USDA Agencies into Treasury’s G-Invoicing initiative by June 30, 2022. This system will 

address current Buy/Sell activity by implementing a Federal intra-governmental transaction 

Buy/Sell Data Standard and provide transparent access to a shared data repository for brokered 

transactions in accordance with 31 U.S. Code (U.S.C.) 3512(b) and 3515. 

SAP S/4 High-Performance Analytic Appliance (HANA): OCFO looks to SAP’s S/4 HANA as 

the evolution of the USDA financial management solution beyond the outdated FMMI 

construct. The current FMMI solution utilizes siloed data storage that is near real-time. The 

current FMMI construct is outdated, and SAP has stated that it will no longer support the 

platform as early as 2027. 

SAP S/4HANA is an ERP financial software that operates on SAP HANA’s in-memory platform 

and allows users to run real-time reports on operational and financial data. The data is stored and 

processed so that in-memory users can analyze data quickly with few constraints. As part of the 

ERP package, financial data and operational data are pulled from one centralized location, which 

allows decision makers to examine problems from an organizational view rather than a limited 

department view. FMS is currently in the preparatory phase of the multi-year initiative of 

transforming the FMMI platform into the S4 HANA intelligent enterprise platform. FMS 

conducted market research to complete its information-gathering exercise and deliver its 

enterprise architecture roadmap for S4 HANA. 

System for Award Management (SAM) Unique Entity Identifier (UEI): At the direction of the 

General Services Administration, USDA is migrating to the use of the SAM UEI as a 

replacement for the DUNS® number to verify Federal contractors. This change will impact all 

USDA systems, including FMMI. FMMI completed system updates in FY 2021 in preparation of 

a full UEI implementation by April 2022. 
USDA | 2021 Agency Financial Report 65

Section II

Financial Information 

Message from the Office of the Chief 

Financial Officer 

It is my honor to present the fiscal year (FY) 2021 Financial Statements on 

behalf of the U.S. Department of Agriculture. 

USDA received an unmodified audit opinion on the financial statements 

from the Department’s Office of the Inspector General for the sixth 

consecutive fiscal year. This result reflects an important measure of the 

integrity and reliability of USDA’s overall focus and compliance with 

regards to financial management. The Office of the Chief Financial Officer 

(OCFO) recognizes the importance of accurate and timely financial information in making 

properly informed decisions. It remains committed to sound financial stewardship in maintaining 

or, when necessary, improving upon current systems to ensure that funds are appropriately 

accounted for and used to promote Departmental goals and objectives in the service of you, the 

American public. 

As the country continues to grapple with the “new normal” forced upon each of us from 

COVID-19, the OCFO staff has been steadfastly vigilant in ensuring continuity of operations in a 

primarily remote or telework environment, never wavering from a commitment to their varying 

roles in support of the financial management systems and activities of USDA. The following 

highlights are only a few of their more noteworthy accomplishments from the fiscal year. 

Budget Division 

The Budget Division’s staff successfully managed the apportionment, allocation, tracking, and 

internal controls of $31.4 billion in USDA supplemental funding for the Coronavirus Aid, Relief, 

and Economic Security Act; the Coronavirus Food Assistance Program; and the American 

Rescue Plan. Additionally, USDA agencies were advised on the development and monitoring of 

process controls and accounting on supplemental funding and contributed to the Department’s 

COVID dashboard for financial reporting to the Office of Management and Budget. The division 

also completed Data Quality compliance reviews and reporting related to the supplemental 

funding received. 
66 Section II | Financial Information

Fiscal Policy Division

The Fiscal Policy Division had a very productive fiscal year. During FY 2021, the average 

number of Do Not Pay (DNP) matches per quarter increased by 19 percent from FY 2020 (from 

5.087 million to 6.053 million). Additionally, there was an 85 percent increase in the potential 

monetary savings ($8.9 million to $16.1 million) to USDA and the Federal Government due to 

the increase in matching behavior. The USDA has nearly 1,600 active users spanning five 

agencies and multiple program areas. In addition, the USDA DNP Authorizing Official, in 

tandem with the Primary Local Security Administrator, provided administrative support to 

programs currently using DNP during the pre-award, pre-payment, and post-payment phases of 

the payment life cycle. The users conducted more than 134,000 online pre-award/pre-payment 

searches, which is an 8 percent increase from FY 2020. 

Financial Management Division

The Financial Management Division spearheaded the interagency reimbursement process 

between USDA and the Department of Health and Human Services Unoccupied Children’s 

Program in support of the President’s Executive Order on the Establishment of the Interagency 

Task Force on the Reunification of Families. A workflow was established, and a process was 

created that coordinated the execution of USDA Agencies’ interagency agreements approaching 

$105 million in anticipated authority. This division directed the fund’s execution for the Office 

of Partnerships and Public Engagement (OPPE) grants program of approximately $58 million for 

the Policy Center, Outreach Assistance for Socially Disadvantaged Farmers & Ranchers 

Veterans, and the Farmers Opportunity Training and Outreach Programs in support of the 

Department’s grants administration. 

Internal Control Division

The Internal Controls Division had a banner year. The review and follow-up of the Office of 

Inspector General’s (OIG) audit recommendations were enhanced to exceed the number of audit 

closures despite the current pandemic. The Department’s inventory of open audits decreased in 

FY 2021 by 6 percent from 88 to 82 percent. Based on current effort and closure rates, OCFO 

has surpassed the reported numbers of FY 2020 (19 OIG audits and 149 recommendations 

closed) as compared with FY 2021 (33 OIG audits and 231 recommendations) or an increase of 

74 percent for OIG audits and 55 percent for open audit recommendations. Efforts to closely 

communicate and partner with OIG on the implementation and corrective actions of findings 

within the Department continue to help reduce deficiencies. Several long-standing audit 

recommendations issued by the U.S. Government Accountability Office have been reviewed, and 

continued actions are being taken to mitigate and address all weaknesses identified.
USDA | 2021 Agency Financial Report 67

Working Capital Fund Division 

Our Working Capital Fund (WCF) Division continued to build on its reputation as a leader in 

financial management and administration of revolving funds. Its mission is to provide an 

effective financing mechanism to support services provided on a centralized basis. Centrally 

managed operations provide efficiency, reduce, or eliminate redundancies, and achieve 

economies of scale through extensive management reviews. The WCF provided its customers 

with a wide variety of services, totaling more than $1.2 billion annually to 100 distinct USDA 

and non-USDA entities, supporting 15 Activity Centers across seven Departmental 

organizations. These services include Administration, Communication, Financial Management, 

Information Technology, and Correspondence Management. Executing these day-to-day 

business activities saved resources and met the needs of USDA Agencies at competitive prices, 

which allows our customers to concentrate on mission-critical functions. The WCF’s strength 

lies in its extraordinary team of professionals at the heart of the USDA mission and who continue 

to work tirelessly on every task. 

Although I am proud of the accomplishments achieved during this fiscal year, I also recognize 

there is still work to be done. The OCFO will continue to work across the Department on 

remediating material weaknesses and Digital Accountability and Transparency Act submission 

improvements, making this an area of increased focus in the coming year. We will also continue 

to diligently manage taxpayer dollars wisely and build upon the successes demonstrated by the 

achievements described previously. We are proud to serve our fellow Americans and pledge to 

persist in delivering superior financial stewardship and management.

Lynn M. Moaney 

Deputy Chief Financial Officer 

November 12, 2021 
68	 Section II | Financial Information

Independent	Auditors	Report

OFFICE OF INSPECTOR GENERAL

United States Department of Agriculture

DATE: November 15, 2021

AUDIT

NUMBER: 50401-0020-11

TO: Lynn Moaney

Deputy Chief Financial Officer

Office of the Chief Financial Officer

ATTN: Annie Walker-Bradley 

Director

Internal Control Division

FROM: Gil H. Harden

Assistant Inspector General for Audit

SUBJECT: U.S. Department of Agriculture’s Consolidated Financial Statements for

Fiscal Years 2021 and 2020

This report presents the results of our audits of U.S. Department of Agriculture’s (USDA) 

consolidated financial statements for the fiscal years ending September 30, 2021, and 2020. This 

report contains an unmodified opinion on the financial statements, as well as the results of our 

assessments of USDA’s internal control over financial reporting and compliance with laws and 

regulations. Your response is included in its entirety in Exhibit A.

In accordance with Departmental Regulation 1720-1, please furnish a reply within 60 days 

describing the corrective actions taken or planned, and timeframes for implementing the 

recommendations for which management decisions have not been reached. Please note that the 

regulation requires management decision to be reached on all recommendations within 6 months 

from report issuance, and final action to be taken within 1 year of each management decision to 

prevent being listed in the Department’s annual Agency Financial Report.

We appreciate the courtesies and cooperation extended to us by members of your staff during our 

audit fieldwork and subsequent discussions. This report contains publicly available information 

and will be posted in its entirety to our website (http://www.usda.gov/oig) in the near future.
USDA | 2020 Agency Financial Report 69

AUDIT REPORT 50401-0020-11

Independent Auditor’s Report

Lynn Moaney

Deputy Chief Financial Officer

Office of the Chief Financial Officer

The U.S. Department of Agriculture’s (USDA) Office of Inspector General audited the 

consolidated financial statements of the Department for fiscal years 2021 and 2020. We also 

considered USDA’s internal control over financial reporting and tested USDA’s compliance with 

certain provisions of applicable laws, regulations, contracts, and grant agreements that could 

have a direct effect on the determination of material financial statement amounts and disclosures 

on these consolidated financial statements.

The “Findings and Recommendation” section presents the material weaknesses and significant 

deficiencies in internal control and instances of noncompliance with laws and regulations, as of 

and for the year ended September 30, 2021. Exhibit A presents USDA’s response in its entirety.

Report on the Consolidated Financial Statements 

We have audited the accompanying consolidated financial statements of USDA, which comprise 

the consolidated balance sheets as of September 30, 2021 and 2020, and the related consolidated 

statements of net cost, and changes in net position; and the combined statements of budgetary 

resources for the fiscal years then ended and the related notes to the consolidated financial 

statements (hereinafter referred to as the “consolidated financial statements”).

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated 

financial statements in accordance with accounting principles generally accepted in the United 

States of America (U.S.); and the design, implementation, and maintenance of internal control 

relevant to the preparation and fair presentation of financial statements that are free from 

material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on 

our audits. We conducted our audits in accordance with auditing standards generally accepted in 

the U.S.; the standards applicable to financial audits contained in government auditing standards, 

issued by the Comptroller General of the U.S.; and the Office of Management and Budget 

(OMB) Bulletin 21-04, Audit Requirements for Federal Financial Statements. Those standards 

and OMB Bulletin 21-04 require that we plan and perform audits to obtain reasonable assurance 

about whether the consolidated financial statements are free from material misstatement.
70	 Section II | Financial Information

AUDIT REPORT 50401-0020-11

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the consolidated financial statements. The procedures selected depend on the 

auditor’s judgment, including the assessment of the risks of material misstatement of the 

consolidated financial statements, whether due to fraud or error. In making those risk 

assessments, the auditor considers internal control relevant to the entity’s preparation and fair 

presentation of the consolidated financial statements in order to design audit procedures that are 

appropriate in the circumstances, but not for the purpose of expressing an opinion on the 

effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit 

also includes evaluating the appropriateness of accounting policies used and the reasonableness 

of significant accounting estimates made by management, as well as evaluating the overall 

presentation of the consolidated financial statements. Our audits also included performing such 

other procedures as we considered necessary in the circumstances.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion.

Opinion on the Consolidated Financial Statements

In our opinion, the consolidated financial statements referred to above present fairly, in all 

material respects, the financial position of USDA, as of September 30, 2021 and 2020, and its net 

costs, changes in net position, and budgetary resources for the years then ended, in accordance 

with accounting principles generally accepted in the U.S.

Other Matters

Interactive Data 

Management has elected to reference information on websites or other forms of interactive data 

outside the financial statements to provide additional information for the users of its financial 

statements. Such information is not a required part of the basic financial statements or 

supplementary information required by the Federal Accounting Standards Advisory Board 

(FASAB). The information on these websites has not been subjected to any of our auditing 

procedures, and accordingly we do not express an opinion or provide any assurance on it.

Required Supplementary Information

Accounting principles generally accepted in the U.S. issued by the FASAB require that the 

Management’s Discussion and Analysis (MD&A), and Required Supplementary Information 

(RSI) be presented to supplement the basic consolidated financial statements. Although the RSI 

is not a part of the basic consolidated financial statements, FASAB considers this information to 

be an essential part of financial reporting for placing the basic consolidated financial statements 

in appropriate operational, economic, or historical context. We have applied certain limited 

procedures to the RSI in accordance with auditing standards generally accepted in the U.S., 

which consisted of inquiries of management about the methods of preparing and comparing the 
USDA | 2020 Agency Financial Report 71

AUDIT REPORT 50401-0020-11

information for consistency with management’s responses to our inquiries, the basic consolidated 

financial statements, and other knowledge we obtained during our audits of the basic 

consolidated financial statements. We do not express an opinion or provide any assurance on the 

information because the limited procedures do not provide us with sufficient evidence to express 

an opinion or provide any assurance.

Other Information

Our audits were conducted for the purpose of forming an opinion on the basic consolidated 

financial statements as a whole. USDA’s Non-Discrimination Statement, Table of Contents, 

Message from the Secretary, Required Supplementary Information, Message from the Office of 

the Chief Financial Officer, Other Information, and Abbreviations-Acronyms sections are 

presented for purposes of additional analysis, and are not a required part of the basic 

consolidated financial statements. This information has not been subjected to the auditing 

procedures applied in our audits of the basic consolidated financial statements and, accordingly, 

we express no opinion and provide no assurance on it.

Other Reporting Required by Government Auditing Standards

Report on Internal Control Over Financial Reporting

In planning and performing our audit of the consolidated financial statements as of and for the 

year ended September 30, 2021, we considered USDA’s internal control over financial reporting 

(internal control) to determine the audit procedures that are appropriate in the circumstances for 

the purpose of expressing our opinion on the consolidated financial statements, but not for the 

purpose of expressing an opinion on the effectiveness of USDA’s internal control. Accordingly, 

we do not express an opinion on the effectiveness of USDA’s internal control. We did not test 

all internal controls relevant to operating objectives as broadly defined by the Federal Managers’ 

Financial Integrity Act of 1982 (FMFIA).

Our consideration of internal control was for the limited purpose described in the preceding 

paragraph and was not designed to identify all deficiencies in internal control that might be 

significant deficiencies or material weaknesses, and, therefore, material weaknesses or 

significant deficiencies may exist that were not identified.

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to 

prevent, or detect and correct, misstatements on a timely basis. A material weakness is a 

deficiency or a combination of deficiencies, in internal control, such that there is a reasonable 

possibility that a material misstatement of USDA’s consolidated financial statements will not be 

prevented, or detected and corrected on a timely basis. We consider the deficiencies in overall 

financial management and information technology (IT) security program, described in “Findings 

and Recommendation,” Section 1, to be material weaknesses.
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AUDIT REPORT 50401-0020-11

A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is 

less severe than a material weakness, yet important enough to merit attention by those charged 

with governance. We consider the deficiency in internal control over unliquidated obligations 

(ULOs), described in “Findings and Recommendation,” Section 2, to be a significant deficiency.

Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements

As part of obtaining reasonable assurance about whether USDA’s consolidated financial 

statements as of and for the year ended September 30, 2021, are free of material misstatement, 

we performed tests of its compliance with certain provisions of laws, regulations, contracts, grant 

agreements, and Governmentwide policy requirements, noncompliance with which could have a 

direct effect on the determination of material financial statement amounts and disclosure in the 

consolidated financial statements. However, providing an opinion on compliance with those 

provisions was not an objective of our audit and, accordingly, we do not express such an opinion.

Federal Financial Management Improvement Act of 1996 (FFMIA)

We also performed tests of USDA’s compliance with certain provisions referred to in Section 

803(a) of FFMIA. Providing an opinion on compliance with FFMIA was not an objective of our 

engagement and, accordingly, we do not express such an opinion. The results of our tests of 

FFMIA disclosed instances, described in more detail in the “Findings and Recommendation,” 

Section 3, of this report, where USDA was not substantially compliant with Federal Financial 

Management System Requirements (FFMSR), applicable Federal accounting standards, and the 

U.S. Standard General Ledger (USSGL) at the transaction level.

Antideficiency Act (ADA) 

Title 31 U.S. Code (U.S.C.) Section 1517 states that an officer or an employee of the United 

States Government may not make or authorize an expenditure or obligation exceeding an 

apportionment or an amount permitted by regulations as prescribed by Title 31 U.S.C. 

Section 1514. In fiscal year 2021, the Department reported 3 confirmed and 4 potential ADA 

violations in its agency financial report.

Payment Integrity Information Act of 2019 (PIIA)

During fiscal year 2021, we identified instances of noncompliance with the requirements of 

PIIA,1 regarding the design of program internal controls related to reporting improper payments. 

A separate report was issued with further details on the Department’s compliance with improper 

payment requirements.2

1 Payment Integrity Information Act of 2019 (PIIA), Pub. L. No. 116-117, 134 Stat. 113.

2 Audit Report 50024-0001-24, U.S. Department of Agriculture’s Fiscal Year 2020 Compliance with Improper 

Payment Requirements, issued June2021.
USDA | 2020 Agency Financial Report 73

AUDIT REPORT 50401-0020-11

Management’s Responsibility for Internal Control and Compliance

USDA’s management is responsible for (1) evaluating the effectiveness of internal control over 

financial reporting based on criteria established under FMFIA, (2) providing a statement of 

assurance on the overall effectiveness of internal control over financial reporting, (3) ensuring 

USDA’s financial management systems are in substantial compliance with FFMIA requirements, 

and (4) ensuring compliance with other applicable laws, regulations, contracts, and grant 

agreements.

Auditor’s Responsibilities

We are responsible for (1) obtaining a sufficient understanding of internal control over financial 

reporting and compliance to plan the audit, (2) testing whether USDA’s financial management 

systems substantially comply with FFMIA requirements referred to above, and (3) testing 

compliance with certain provisions of laws, regulations, contracts, and grant agreements that 

have a direct effect on the determination of material amounts and disclosure in the consolidated 

financial statements.

We did not evaluate all internal controls relevant to operating objectives as broadly established 

by FMFIA, such as those controls relevant to preparing statistical reports and ensuring efficient 

operations. We limited our internal control testing to controls over financial reporting and 

compliance. Because of inherent limitations, internal control over financial reporting may not 

prevent, or detect and correct, misstatements due to fraud or error.

We did not test compliance with all laws, regulations, contracts, and grant agreements applicable 

to USDA. We limited our tests of compliance to certain provisions of laws, regulations, 

contracts, and grant agreements that have a direct effect on the determination of material 

amounts and disclosure in the consolidated financial statements that we deemed applicable to 

USDA’s consolidated financial statements for the fiscal year ended September 30, 2021. We 

caution that noncompliance may occur and not be detected by these tests.

Management’s Response

Management’s response to the report is presented in Exhibit A. We did not audit USDA’s 

response and, accordingly, we express no opinion on it.

Purpose of the Report on Internal Control Over Financial Reporting and the Report on 

Compliance with Laws, Regulations, Contracts, and Grant Agreements

The purpose of the “Report on Internal Control Over Financial Reporting” and the “Report on 

Compliance with Laws, Regulations, Contracts, and Grant Agreements” sections of this report is 

solely to describe the scope of our testing of internal control and compliance and the results of 

that testing, and not to provide an opinion on the effectiveness of USDA’s internal control or on 
74	 Section II | Financial Information

AUDIT REPORT 50401-0020-11

compliance. These reports are an integral part of an audit performed in accordance with 

government auditing standards in considering USDA’s internal control and compliance. 

Accordingly, these reports are not suitable for any other purpose.

Gil H. Harden

Assistant Inspector General for Audit

Washington, D.C.

November 12, 2021 
USDA | 2020 Agency Financial Report 75

AUDIT REPORT 50401-0020-11

Findings and Recommendation

Section 1: Material Weaknesses in Internal Control Over Financial 

Reporting

Finding 1: Improvements are Needed in Overall Financial Management

The material weakness for financial management is due to improvements needed in accounting 

and internal controls related to the Commodity Credit Corporation (CCC), Natural Resources 

Conservation Service (NRCS), and Farm Service Agency (FSA). In conducting our review, we 

noted the following areas where improvements are needed in overall financial management. 

Specifically:

• CCC disclosed a material weakness related to accounting for budgetary transactions.

• NRCS disclosed material weaknesses related to controls over obligations and unfilled 

customer orders; controls over expenditures; and entity level controls.

• The FSA portion of Treasury Account Symbol 12X0115, Processing, Research, and 

Marketing, Office of the Secretary, Agriculture, representing over $13 billion in 

disbursement activity was not fully reconciled for the first six months of fiscal year 2021. 

The agency acknowledged this deficiency and self-reported a new material weakness in 

reconciling Fund Balance with Treasury in its annual assurance statement for the FMFIA. 

In its FMFIA Report on Management Control for fiscal year 2021, the Department reported the 

following corrective action plans to address the outstanding weaknesses from fiscal year 2020 

that remain material weaknesses for fiscal year 2021:

• CCC, in fiscal year 2022, plans to continue to implement effective processes, procedures, 

and controls over the Agriculture Risk Coverage and Price Loss Coverage yearend 

accrual as well as effective undelivered orders monitoring controls at the program level 

throughout the organization. 

• NRCS, in fiscal year 2022, plans to continue implementing policies and procedures to 

perform quarterly analysis of open obligations to determine whether material amounts are 

being omitted from accrued expenses. In addition, NRCS will continue to provide 

guidance and/or training to employees over the recording of expense accruals.

• FSA, in fiscal year 2022, plans to implement a roll-up Fund Balance with Treasury 

reconciliation for the Fund Balance with Treasury amounts reported in its financial 

statements to ensure effective monitoring of the completeness of all reconciliations. 

Additionally FSA will implement updates to the standard operating procedures and 

improve process narratives to capture organizational roles and responsibilities.

Since USDA has actions planned and in progress, we are making no further recommendations 

herein.
76	 Section II | Financial Information

AUDIT REPORT 50401-0020-11

Finding 2: Improvements are Needed in Overall Information Technology 

Security Program

As required by the Federal Information Security Modernization Act of 2014 (FISMA), the Office 

of Inspector General (OIG) reviewed USDA’s ongoing efforts to improve its IT security program 

and practices during fiscal year 2021.3 USDA continues to take positive steps to improve its IT 

security posture, but many longstanding weaknesses remain. For FISMA audits conducted from 

2018 through 2020, there were 10 open recommendations at the beginning of fiscal year 2021. 

During fiscal year 2021, four recommendations were closed. OIG also issued 16 new 

recommendations based on security weaknesses identified in fiscal year 2021.

OMB establishes standards for an effective level of security and considers “Managed and 

Measurable” to be a sufficient level. However, OIG found the Department’s maturity level to be 

at the lower “Consistently Implemented” level. Based on OMB’s criteria, the Department’s 

overall score indicates an ineffective level of security. The Department and its agencies must 

develop and implement an effective plan to mitigate security weaknesses identified in the prior 

fiscal year recommendations. The Office of the Chief Information Officer generally concurred 

with the findings and recommendations in the report.

3 Audit Report 50503-0005-12, U.S. Department of Agriculture, Office of the Chief Information Officer, Fiscal Year 

2021 Federal Information Security Modernization Act, issued October 2021.
USDA | 2020 Agency Financial Report 77

AUDIT REPORT 50401-0020-11

Section 2: Significant Deficiency in Internal Control Over Financial 

Reporting

Finding 3: Improvements are Needed in Controls Over Obligations

While USDA’s remediation efforts have brought about improvements in written policies and 

procedures over obligations, inconsistent execution has resulted in ineffective controls. During 

fiscal year 2021, USDA continued to lack effective internal controls over the recording of 

obligations, accruals, and liquidations to ensure the existence and accuracy of obligations 

reported in its general ledger.

In our testing of obligations, agency certifications, and related activities, we noted the following:

• 9 undelivered orders (UDOs) which were invalid and should have been de-obligated in a 

prior fiscal year; 5 of these invalid UDOs were not included in the quarterly 

certifications;

• 4 UDOs which were billed in the wrong fiscal year;

• 8 accruals which remained open and should have been reversed in a prior fiscal year;

• fiscal year 2021 and prior years’ accruals which were recorded to an incorrect Vendor; 

• 56 transactions totaling $109.7 million in fiscal year 2021 which were recorded to an 

incorrect Budget Object Classification (BOC); 

• inconsistent cutoff dates for certifying inactive obligations;

• obligating documents which were either not signed by the cooperator, or signed after the 

performance period ended;

• a potential improper obligation of funds, recorded without sufficient documentation; and

• a lack of a comprehensive inventory of international agreements.

These conditions were due to (1) inconsistent execution of processes and control activities as 

designed and implemented, including lack of adherence to policies and procedures for the 

recording of obligations, accruals and liquidations; (2) ineffective monitoring and reviewing as 

well as inappropriately certifying to the validity of obligation balances; and (3) intradepartmental ULOs inappropriately remained open because USDA agencies did not bill to, or 

submit final payments from, other USDA agencies.

Additionally, the Rural Development financial statement audit report this year discussed 

ineffective controls over the recording of valid obligations and the untimely de-obligation of 

invalid obligations.4

OMB Circular No. A-11, Preparation, Submission, and Execution of the Budget, states that an 

“obligation means a binding agreement that will result in outlays, immediately or in the future. 

Budgetary resources must be available before obligations can be incurred legally.”

 

4 Audit Report 85401-0012-11, Rural Development’s Financial Statements for Fiscal Years 2021 and 2020, issued 

November 2021.
78	 Section II | Financial Information

AUDIT REPORT 50401-0020-11

The U.S. Department of Treasury’s annual closing guidance (Treasury Bulletin 2021-22, 

Yearend Closing) requires an annual review of ULOs. Before the fiscal yearend closing, 

agencies that have not reviewed their unliquidated obligations during the year must do so. This 

ensures that agencies properly record transactions meeting the criteria of valid obligations set 

forth in 31 U.S.C. 1501.

Departmental Regulation 2230-001, Reviews of Unliquidated Obligations, October 28, 2020, 

requires quarterly reviews and certifications as to the validity of ULO balances from agency 

Chief Financial Officers (CFO). Agencies are to perform quarterly reviews of all unliquidated 

obligations inactive for at least 12 months, and the agency CFO or equivalent must certify 

(quarterly) that the unliquidated obligations are valid based on those reviews. If program and 

procurement personnel have determined that an ULO is no longer valid and have provided 

written notification to the appropriate agency or staff office designated personnel to cancel or 

adjust the ULO in the financial management system, the de-obligation must be processed within 

15 business days after receipt of the written notification.

USDA Budget Object Classification Codes (BOC), dated March 2013, describes the types of 

services that are included under each BOC. The manual provides a reference list of BOC codes 

that are to be used by agencies and offices serviced by the Office of the Chief Financial Officer. 

Invalid or inaccurate obligations increase the risk that an agency may be unable to determine the 

amount of funds available for obligation or expenditure, may inappropriately divert funds for 

purposes other than what was intended by Congress, or may misstate obligations in financial 

reporting as of fiscal yearend.

Recommendation 1 

Ensure appropriate agency officials obtain training pertaining to Departmental Regulation 2230-

001 to include review and monitoring of valid obligations and acceptable support for valid 

obligations.
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AUDIT REPORT 50401-0020-11

Section 3: Noncompliance with Laws and Regulations

Finding 4: Lack of Substantial Compliance with FFMIA Requirements

FFMIA requires agencies to annually assess whether their financial management systems comply 

substantially with (1) FFMSR, (2) applicable Federal accounting standards, and (3) the USSGL 

at the transaction level. FFMIA also requires auditors to report in their Chief Financial Officer 

Act financial statement audit reports whether financial management systems substantially 

comply with FFMIA’s system requirements. In addition, FISMA requires each agency to report 

significant information security deficiencies, relating to financial management systems, as a lack 

of substantial compliance under FFMIA.

During fiscal year 2021, USDA evaluated its financial management systems to assess 

compliance with FFMIA. The Department reported that it was not compliant with FFMSR, 

applicable accounting standards, USSGL at the transaction level, and FISMA requirements. As 

noted in its MD&A, USDA continues its work to meet FFMIA and FISMA objectives.

Specifically, in its FFMIA and FMFIA reports, the Department reported an ineffective 

information security program due to many longstanding weaknesses with outstanding 

recommendations. See Finding 2 of this report for more details.

Additionally, in its FFMIA report, the Department noted noncompliance with two of its 

component agencies relating to financial management, described below.

1. CCC’s noncompliance with Federal accounting standards and USSGL at the transaction 

level was noted for the weakness in the accounting for budgetary transactions. The 

financial management systems did not record certain accounting events at the transaction 

level in accordance with the USSGL. CCC continues to make significant progress in 

performing compensating controls over the accounting for obligation activity. CCC will 

continue implementing its program obligation activity into the Financial Management 

Modernization Initiative in a phased approach.

2. NRCS’s noncompliance with Federal accounting standards and USSGL at the transaction 

level was noted for weaknesses in NRCS’s systems that do not transmit complete and 

accurate information for certain types of budgetary transactions to facilitate the proper 

recording of those transactions.

See Finding 1 of this report for more details on the NRCS and CCC issues.

Due to planned actions, we are making no further recommendations in this report. 
80	 Section II | Financial Information

Agency	Response	to	Auditors	Report

November 12, 2021 

TO: Gil H. Harden

Assistant Inspector General 

Office of Inspector General 

FROM: Lynn Moaney /S/ 

Deputy Chief Financial Officer 

SUBJECT: U.S. Department of Agriculture’s Financial Statements for Fiscal Years 

2021 and 2020 

The Department is pleased to respond to your audit report on the financial statements 

for fiscal years 2021 and 2020. 

We concur with the findings in the report. We will continue with actions planned and in 

progress to address the findings. 

I would like to express my appreciation for the cooperation and professionalism 

displayed by your staff and your contract auditors during the audit. 

United States

Department of

Agriculture

Office of the Chief

Financial Officer

1400 Independence

Avenue, SW

Washington, DC

20250

AN EQUAL OPPORTUNITY EMPLOYER 
USDA | 2021 Agency Financial Report 81

Financial Statements 

Consolidated Balance Sheets 

As of September 30, 2021 and 2020 ($ in millions) 

Item 2021 2020

ASSETS (NOTE 2): 

Intragovernmental: 

Fund Balance with Treasury (Note 3) $ 237,610 $ 195,418 

Investments, Net (Note 5) 256 245 

Accounts Receivable, Net (Note 6) 320 61 

Advances and Prepayments 42 27 

Total Intragovernmental 238,228 195,751 

With the Public: 

Cash and Other Monetary Assets (Note 4) 298 381 

Accounts Receivable, Net (Note 6) 5,353 3,812 

Loans Receivable, Net (Note 7) 113,450 110,235 

Inventory and Related Property, Net (Note 8) 23 18 

General Property, Plant, and Equipment, Net (Note 9) 2,588 2,399 

Advances and Prepayments 587 1,295 

Investments, Net (Note 5) 3 3 

Total With the Public 122,302 118,143 

Total Assets 360,530 313,894 

Stewardship PP&E (Note 10) 

LIABILITIES (NOTE 11): 

Intragovernmental: 

Accounts Payable (Note 14) 80 105 

Debt (Note 12) 132,821 143,129 

Advances from Others and Deferred Revenue 14 9 

Other Liabilities (Note 14) 11,871 12,719 

Total Intragovernmental 144,786 155,962 

With the Public: 

Accounts Payable 2,353 3,737 

Federal Employee Benefits Payable 1,376 1,382 

Environmental and Disposal Liabilities (Note 13) 258 239 

Benefits Due and Payable 8,580 13,330 

Loan Guarantee Liabilities (Note 7) (601) 1,329 

Insurance and Guarantee Program Liabilities 14,226 7,703 

Advances from Others and Deferred Revenue 122 (515) 

Other Liabilities (Notes 14, 15 & 16) 12,977 13,687 

Total With the Public 39,291 40,892 

Total Liabilities 184,077 196,854 

Commitments and Contingencies (Note 16) 

Net Position: 

Unexpended Appropriations - Funds from Dedicated Collections (Note 17) 468 191 

Unexpended Appropriations - Funds from Other Than Dedicated Collections 127,658 82,751 

Total Unexpended Appropriations (Combined) 128,126 82,942 

Cumulative Results of Operations - Funds from Dedicated Collections (Note 17) 3,473 3,283 

Cumulative Results of Operations - Funds from Other Than Dedicated Collections 44,854 30,815 

Total Cumulative Results of Operations (Combined) 48,327 34,098 

Total Net Position 176,453 117,040 

Total Liabilities and Net Position $ 360,530 $ 313,894 

 The accompanying notes are an integral part of these statements.
82 Section II | Financial Information 

Consolidated Statements of Net Cost 

For the Year Ended September 30, 2021 and 2020 ($ in millions) 

Item 2021 2020

Farm Production and Conservation: 

Gross Costs $ 54,802 $ 54,824 

Less: Earned Revenue 4,449 5,159 

Net Costs 50,353 49,665 

Food, Nutrition, and Consumer Services: 

Gross Costs 163,254 122,391 

Less: Earned Revenue 65 56

Net Costs 163,189 122,335 

Food Safety: 

Gross Costs 1,370 1,321 

Less: Earned Revenue 262 260

Net Costs 1,108 1,061 

Marketing and Regulatory Programs: 

Gross Costs 6,640 5,627 

Less: Earned Revenue 812 1,016 

Net Costs 5,828 4,611 

Natural Resources and Environment: 

Gross Costs 8,278 7,033 

Less: Earned Revenue 768 888

Net Costs 7,510 6,145 

Rural Development: 

Gross Costs 4,517 6,842 

Less: Earned Revenue 3,290 3,591 

Net Costs 1,227 3,251 

Research, Education, and Economics: 

Gross Costs 3,175 3,059 

Less: Earned Revenue 105 103

Net Costs 3,070 2,956 

Trade and Foreign Agricultural Affairs: 

Gross Costs 475 475

Less: Earned Revenue 32 72

Net Costs 443 403

Staff Offices: 

Gross Costs 1,661 1,493 

Less: Earned Revenue 243 241

Net Costs 1,418 1,252 

Total Gross Costs 244,172 203,065 

Less: Total Earned Revenue 10,026 11,386 

Net Cost of Operations (Note 18) $ 234,146 $ 191,679 

The accompanying notes are an integral part of these statements. 
USDA | 2021 Agency Financial Report 83

Consolidated Statement of Changes in Net Position 

For the Year Ended September 30, 2021 ($ in millions) 

Item Funds from 

Dedicated 

Collections 

(Combined Totals) 

(Note 17) 

Funds from Other 

Than Dedicated 

Collections 

(Combined 

Totals) Eliminations 

Consolidated 

Total 

Unexpended Appropriations: 

Beginning Balances $ 191 $ 82,751 $ - $ 82,942 

Appropriations Received 12 285,680 - 285,692 

Appropriations Transferred In (Out) 285 (537) - (252) 

Other Adjustments - (15,268) - (15,268) 

Appropriations Used (20) (224,968) - (224,988) 

Net Change in Unexpended Appropriations 277 44,907 - 45,184 

Total Unexpended Appropriations: Ending Balance 468 127,658 - 128,126 

Cumulative Results of Operations: 

Beginning Balances 3,283 30,815 - 34,098 

Other Adjustments - (233) - (233) 

Appropriations Used 20 224,968 - 224,988 

Non-exchange Revenue 230 25,688 - 25,918 

Donations and Forfeitures of Cash and Cash Equivalents 1 - - 1 

Transfers In (Out) without Reimbursement 1,345 (1,373) - (28) 

Imputed Financing 63 3,404 (2,501) 966 

Other (99) (3,138) - (3,237) 

Net Cost of Operations (1,370) (235,277) 2,501 (234,146) 

Net Change in Cumulative Results of Operations 190 14,039 - 14,229 

Cumulative Results of Operations: Ending Balance 3,473 44,854 - 48,327 

Net Position $ 3,941 $ 172,512 $ - $ 176,453 

The accompanying notes are an integral part of these statements. 
84 Section II | Financial Information 

Consolidated Statement of Changes in Net Position 

For the Year Ended September 30, 2020 ($ in millions) 

Item 

Funds from 

Dedicated 

Collections 

(Combined 

Totals) (Note 17) 

Funds from Other 

Than Dedicated 

Collections 

(Combined 

Totals) Eliminations 

Consolidated 

Total 

Unexpended Appropriations: 

Beginning Balances $ 180 $ 71,271 $ - $ 71,451 

Appropriations Received 11 212,782 - 212,793 

Appropriations Transferred In (Out) - (50) - (50) 

Other Adjustments - (8,931) - (8,931) 

Appropriations Used - (192,321) - (192,321) 

Net Change in Unexpended Appropriations 11 11,480 - 11,491 

Total Unexpended Appropriations: Ending Balance 191 82,751 - 82,942 

Cumulative Results of Operations: 

Beginning Balances 3,331 11,332 - 14,663 

Other Adjustments - (340) - (340) 

Appropriations Used - 192,321 - 192,321 

Non-exchange Revenue 134 22,279 - 22,413 

Donations and Forfeitures of Cash and Cash Equivalents 1 1 - 2 

Transfers In (Out) without Reimbursement 748 (1,312) - (564) 

Imputed Financing 68 2,916 (2,129) 855 

Other (182) (3,391) - (3,573) 

Net Cost of Operations (817) (192,991) 2,129 (191,679) 

Net Change in Cumulative Results of Operations (48) 19,483 - 19,435 

Cumulative Results of Operations: Ending Balance 3,283 30,815 - 34,098 

Net Position $ 3,474 $ 113,566 $ - $ 117,040 

The accompanying notes are an integral part of these statements. 
USDA | 2021 Agency Financial Report 85

Combined Statements of Budgetary Resources 

For the Years Ended September 30, 2021 and 2020 ($ in millions) 

Item 2021 2020

Budgetary 

Non-Budgetary 

Credit Reform 

Financing 

Accounts Budgetary 

Non-Budgetary 

Credit Reform 

Financing Accounts 

Budgetary Resources: 

Unobligated Balance from Prior Year Budget Authority, Net (Discretionary and Mandatory) $ 97,027 $ 4,725 $ 69,378 $ 5,958 

Appropriations (Discretionary and Mandatory) 273,612 6 211,126 1 

Borrowing Authority (Discretionary and Mandatory) 13,207 14,904 35,525 15,654 

Spending Authority from Offsetting Collections (Discretionary and Mandatory) 8,536 12,365 8,293 12,249 

Total Budgetary Resources 392,382 32,000 324,322 33,862 

Status of Budgetary Resources: 

New Obligations and Upward Adjustments (Total) 277,308 20,631 239,782 21,913 

Unobligated Balance, End of Year: 

Apportioned, Unexpired Accounts 73,017 10,675 47,873 11,257 

Exempt from Apportionment, Unexpired Accounts 85 - 7 - 

Unapportioned, Unexpired Accounts 8,241 694 4,437 692 

Unexpired Unobligated Balance, End of Year 81,343 11,369 52,317 11,949 

Expired Unobligated Balance, End of Year 33,731 - 32,223 - 

Unobligated Balance, End of Year (Total) 115,074 11,369 84,540 11,949 

Total Budgetary Resources 392,382 32,000 324,322 33,862 

Outlays, Net, and Disbursements, Net: 

Outlays, Net (Total) (Discretionary and Mandatory) 239,467 187,111 

Distributed Offsetting Receipts (-) (4,249) (2,863) 

Agency Outlays, Net (Discretionary and Mandatory) $ 235,218 $ 184,248 

Disbursements, Net (Total) (Mandatory) $ 4,025 $ 2,547 

The accompanying notes are an integral part of these statements. 
86 Section II | Financial Information 

Notes to the Financial Statements 

As of September 30, 2021, and 2020 ($ in millions)

NOTE 1: Summary of Significant Accounting Policies 

Reporting Entity 

USDA provides a wide variety of services in the United States and around the world. USDA is 

organized into eight distinct mission areas and their agencies that execute these missions, 

including staff offices for reporting listed below: 

Farm Production and Conservation 

• FPAC Business Center 

• Farm Service Agency 

• Commodity Credit Corporation 

• Risk Management Agency 

• Natural Resources Conservation Service 

Food, Nutrition, and Consumer Services 

• Food and Nutrition Service 

Food Safety 

• Food Safety and Inspection Service 

Marketing and Regulatory Programs 

• Agricultural Marketing Service 

• Animal and Plant Health Inspection Service 

Natural Resources and Environment 

• Forest Service 

Rural Development 

Research, Education, and Economics 

• Agricultural Research Service 

• National Agricultural Statistics Service 

• National Institute of Food and Agriculture 

• Economic Research Service 

Trade and Foreign Agricultural Affairs 

• Foreign Agricultural Service 

Staff Offices 
USDA | 2021 Agency Financial Report 87

The reporting entity is a component of the U.S. Government. For this reason, some of the 

assets and liabilities reported by the entity may be eliminated for Government-wide reporting 

because they are offset by assets and liabilities of another U.S. Government entity. These 

financial statements should be read with the realization that they are for a component of the 

U.S. Government. See Note 28 for Disclosure Entities and Related Parties that are not part 

of consolidation. 

Consolidation 

The financial statements consolidate results of all agencies and staff offices. The effects of 

intradepartmental activity and balances are eliminated, except for the Statement of Budgetary 

Resources (SBR) which is presented on a combined basis. The financial statements are prepared 

in accordance with generally accepted accounting principles for the Federal Government. 

Use of Estimates 

The preparation of financial statements requires management to make estimates and assumptions 

that affect the amounts reported in the financial statements and accompanying notes. Actual 

results could differ from those estimates. 

Fund Balance with Treasury (FBWT) and Funds from Dedicated Collections 

FBWT is an asset of a reporting entity and a liability of the General Fund. Similarly, investments 

in Federal Government securities that are held by Dedicated Collections accounts are assets of 

the reporting entity responsible for the Dedicated Collections and liabilities of the General Fund. 

In both cases, the amounts represent commitments by the Government to provide resources for 

particular programs, but they do not represent net assets to the Government as a whole. 

When the reporting entity seeks to use FBWT or investments in Government securities to 

liquidate budgetary obligations, Treasury will finance the disbursements in the same way it 

finances all other disbursements, using some combination of receipts, other inflows, and 

borrowing from the public (if there is a budget deficit). 

Revenue and Other Financing Sources 

As a component of the Government-wide reporting entity, the entity is subject to the Federal 

budget process, which involves appropriations that are provided annually and appropriations that 

are provided on a permanent basis. The financial transactions that are supported by budgetary 

resources, which include appropriations, are generally the same transactions reflected in entity 

and the Government-wide financial reports. 

The reporting entity’s budgetary resources reflect past congressional action and enable the entity 

to incur budgetary obligations, but they do not reflect assets to the Government as a whole. 
88 Section II | Financial Information 

Budgetary obligations are legal obligations for goods, services, or amounts to be paid based on 

statutory provisions (e.g., Social Security benefits). After budgetary obligations are incurred, 

Treasury will make disbursements to liquidate the budgetary obligations and finance those 

disbursements in the same way it finances all disbursements, using some combination of 

receipts, other inflows, and borrowing from the public (if there is a budget deficit). 

Revenue from exchange transactions is recognized when persuasive evidence of an arrangement 

exists, delivery has occurred or services have been rendered, sales price is fixed or determinable, 

and collection is reasonably assured. In certain cases, the prices charged by the Department are 

set by law or regulation, which for program and other reasons may not represent full cost. Prices 

set for products and services offered through the Department’s working capital funds are 

intended to recover the full costs incurred by these activities. Revenue from non-exchange 

transactions is recognized when a specifically identifiable, legally enforceable claim to resources 

arises, to the extent that collection is probable and the amount is reasonably estimable. 

Appropriations are recognized as a financing source when used. An imputed financing source is 

recognized for costs subsidized by other Government entities.

Investments 

The Department is authorized to invest certain funds in excess of its immediate needs in 

Treasury securities. Investments in non-marketable par value Treasury securities are classified as 

held to maturity and are carried at cost. Investments in market-based Treasury securities are 

classified as held to maturity and are carried at amortized cost. The amortized cost of securities is 

based on the purchase price adjusted for amortization of premiums and accretion of discounts 

using the straight-line method over the term of the securities. 

Accounts Receivable 

Accounts receivable are reduced to net realizable value by an allowance for uncollectible 

accounts. The adequacy of the allowance is determined based on past experience and age of 

outstanding balances. 

Direct Loans and Loan Guarantees 

Direct loans obligated and loan guarantees committed after FY 1991 are reported based on the 

present value of the net cash-flows estimated over the life of the loan or guarantee. The difference 

between the outstanding principal of the loans and the present value of their net cash inflows is 

recognized as a subsidy cost allowance; the present value of estimated net cash outflows of the 

loan guarantees is recognized as a liability for loan guarantees. The subsidy expense for direct or 

guaranteed loans disbursed during the year is the present value of estimated net cash outflows for 

those loans or guarantees. A subsidy expense also is recognized for modifications made during 

the year to loans and guarantees outstanding and for reestimates made as of the end of the year to 

the subsidy allowances or loan guarantee liability for loans and guarantees outstanding. 
USDA | 2021 Agency Financial Report 89

Direct loans obligated and loan guarantees committed before FY 1992 are valued using either the 

present-value or net realizable methods. Under the present-value method, the outstanding 

principal of direct loans is reduced by an allowance equal to the difference between the 

outstanding principal and the present value of the expected net cash flows. The liability for loan 

guarantees is the present value of expected net cash outflows due to the loan guarantees. Under 

the net realizable value method, the average rate of the last five years of write-offs is used. 

Inventories and Related Property 

Inventories to be consumed in the production of goods for sale or in the provision of services for 

a fee are valued on the basis of historical cost using a first-in, first-out method. 

Commodity inventory, referred to as goods held under price support and stabilization programs 

in SFFAS No. 3, Accounting for Inventory and Related Property, issued by the FASAB, 

represent commodities acquired by CCC for donation or price support purposes. Commodities 

are eventually sold or otherwise disposed of to help satisfy economic goals. Acquisition is 

generally made through commodity loan forfeitures, use of Commodity Certificate Exchange 

(CCE), or by purchase of commodities on the open market. 

Inventory purchases are initially recorded at acquisition cost, including transportation, plus 

processing and packaging costs incurred after acquisition. Acquisition cost for loan forfeitures is 

the amount of the loan settlement, excluding interest. The commodity is revalued at the lower of 

cost or the net realizable value in accordance with SFFAS No. 3. 

Commodity inventory is not held in reserve for future sale. All commodity inventory on hand at 

year-end is anticipated to be donated or transferred during the next fiscal year. CCC has no 

excess, obsolete or unserviceable inventory. 

Property, Plant and Equipment 

Property, Plant and Equipment (PP&E) are stated at cost less accumulated depreciation. 

Depreciation is determined using the straight-line method over the estimated useful lives of the 

assets. Useful lives for PP&E are disclosed in Note 9. Capitalization thresholds for personal 

property and real property are $25,000; and $100,000 for internal use software. There are no 

restrictions on the use or convertibility of PP&E. 

Pension and Other Retirement Benefits 

Pension and other retirement benefits (primarily retirement health care benefits) expense is 

recognized at the time the employees’ services are rendered. The expense is equal to the actuarial 

present value of benefits attributed by the pension plan’s benefit formula, less the amount 

contributed by the employees. An imputed cost is recognized for the difference between the 

expense and contributions made by and for employees. 
90 Section II | Financial Information 

Workers’ Compensation Benefits 

The Federal Employees’ Compensation Act (FECA) provides wage replacement and medical 

cost protection to covered Federal civilian employees injured on the job, employees who have 

incurred a work-related occupational disease, and beneficiaries of employees whose death is 

attributable to a job-related injury or occupational disease. The FECA program is administered 

by the U.S. Department of Labor (DOL), which initially pays valid claims and subsequently 

seeks reimbursement from the Federal agencies employing the claimants. DOL provides the 

actuarial liability for claims outstanding at the end of each fiscal year. This liability includes the 

estimated future costs of death benefits, workers’ wage replacement, medical, and miscellaneous 

costs for approved compensation cases. 

Funds from Dedicated Collections 

In accordance with Statement of Federal Financial Accounting Standards (SFFAS) 43, Funds 

from Dedicated Collections, USDA has reported the funds from dedicated collections for which 

it has program management responsibility when the following three criteria are met: 1) a statute 

committing the Federal Government to use specifically identified revenues and/or other 

financing sources that are originally provided to the Federal Government by a non-Federal 

source only for designated activities, benefits or purposes; 2) explicit authority for the fund to 

retain revenues and/or other financing sources not used in the current period for future use to 

finance the designated activities, benefits, or purposes; and 3) a requirement to account for and 

report on the receipt, use, and retention of the revenues and/or other financing sources that 

distinguishes the fund from the Federal Government’s general revenues. 

Contingencies 

Contingent liabilities are recognized when a past event or exchange transaction has occurred, a 

future outflow or other sacrifice of resources is probable, and the future outflow or sacrifice of 

resources is measurable. 

Allocation Transfers 

USDA is a party to allocation transfers with other Federal agencies as both a transferring (parent) 

entity and/or a receiving (child) entity. Allocation transfers are legal delegations by one department 

of its authority to obligate budget authority and outlay funds to another department. A separate 

fund account (allocation account) is created in the U.S. Treasury as a subset of the parent fund 

account for tracking and reporting purposes. All allocation transfers of balances are credited to this 

account, and subsequent obligations and outlays incurred by the child entity are charged to this 

allocation account as they execute the delegated activity on behalf of the parent entity. 

USDA allocates funds, as the parent, to a number of U.S. Government agencies, including: 

Department of the Interior, Department of Defense, Department of Housing and Urban 
USDA | 2021 Agency Financial Report 91

Development, Agency for International Development, and the Small Business Administration. 

USDA receives allocation transfers, as the child, from the Department of Labor, Department of 

Transportation, Department of the Interior, Agency for International Development, Economic 

Development Administration, Appalachian Regional Commission, and the Delta 

Regional Authority. 

Inter-Entity Costs 

Goods and services are received from other federal entities at no cost or at a cost less than the 

full cost to the providing federal entity. Consistent with accounting standards, certain costs of the 

providing entity that are not fully reimbursed by the Department are recognized as imputed cost 

[in the Statement of Net Cost] and are offset by imputed revenue [in the Statement of Changes in 

Net Position]. Such imputed costs and revenues relate to business-type activities (if applicable), 

employee benefits, and claims to be settled by the Treasury Judgment Fund. However, 

unreimbursed costs of goods and services other than those identified above are not included in 

our financial statements. 

Fiduciary Activities 

Fiduciary activities are the collection or receipt, and the management, protection, accounting, 

investment, and disposition by the Federal Government of cash or other assets in which non 

Federal individuals or entities have an ownership interest that the Federal Government must 

uphold. Fiduciary assets are not assets of the Federal Government and are not recognized on the 

balance sheet. 

Asbestos-Related Cleanup Costs 

Effective October 1, 2012, Technical Bulletin (TB) 2006-1, Recognition and Measurement of 

Asbestos-Related Cleanup Costs, as amended, requires an estimate of both friable and nonfriable asbestos-related cleanup costs; recognition of a liability and related expense for those 

costs that are both probable and reasonably estimable; and disclosure of information related to 

friable and non-friable asbestos-related cleanup costs that are probable but not reasonably 

estimable in a note to the financial statements. 

Deferred Maintenance and Repairs 

Deferred maintenance and repairs are such that were not performed when they should have been 

or were scheduled to be and which are put off or delayed for a future period. Maintenance and 

repairs are activities directed toward keeping fixed assets in an acceptable condition. Activities 

include preventive maintenance; replacement of parts, systems, or components; and other 

activities needed to preserve or maintain the asset. Maintenance and repairs, as distinguished 

from capital improvements, exclude activities directed towards expanding the capacity of an 

asset or otherwise upgrading it to serve needs different from, or significantly greater than, its 
92 Section II | Financial Information 

current use. SFFAS 42, Deferred Maintenance and Repairs: Amending Statements of Federal 

Financial Accounting Standards 6, 14, 29 and 32, became effective October 1, 2014. Estimates 

for deferred maintenance and repairs are disclosed in required supplementary information. 

Reconciliation of Net Cost to Net Outlays 

SFFAS 53, Budget and Accrual Reconciliation (BAR) amends requirements for a reconciliation 

between budgetary and financial accounting information established by SFFAS 7, Accounting 

for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and 

Financial Accounting. The BAR explains the relationship between the entity’s net outlays on a 

budgetary basis and the net cost of operations during the reporting period. 

Insurance Programs 

The Federal Crop Insurance Program is considered a short-duration exchange transaction 

insurance program. The crop insurance policies insure against unexpected declines in yield 

and/or price due to natural causes. The insurance policies are structured as a contract between 

Approved Insurance Providers (AIPs) and producers, with the FCIC providing reinsurance to 

AIPs. Crop insurance policies automatically renew each year, unless producers cancel them by a 

published annual deadline. Under the reinsurance agreements, AIPs agree to deliver insurance 

products to eligible entities under certain terms and conditions. The Administrative and 

Operating (A&O) subsidy compensates the AIPs for selling and servicing crop insurance 

policies, including the direct settling of claims. Producers pay a portion of premium and fees to 

participate in the insurance program benefit payments. FCIC and AIPs share in underwriting 

gains or losses. The underwriting risk for the crop insurance program is shared by FCIC and the 

AIPs. The AIPs generally retain approximately 80 to 85 percent of the premium, and the risk 

associated with the premium. FCIC provides AIPs stop-loss reinsurance for the risk associated 

with their retained premium. 

Classified Activities 

Accounting standards require all reporting entities to disclose that accounting standards allow 

certain presentations and disclosures to be modified, if needed, to prevent the disclosure of 

classified information. 

Reclassifications 

The Balance Sheet, Statement of Changes in Net Position and notes on Investments, Schedule for 

Reconciling Loan Guarantee Liability Balances (Post-1991 Loan Guarantees), General Property, 

Plant and Equipment (PP&E), Net, Liabilities Not Covered by Budgetary Resources, Other 

Liabilities and Funds from Dedicated Collections were reclassified to conform to OMB Circular 

A-136, Financial Reporting Requirements. The Federal Debt and Interest Payable note was 

reclassified to present other debt as other liabilities.
USDA | 2021 Agency Financial Report 93

NOTE 2: Non-Entity Assets 

Non-entity assets include proceeds from the sale of timber payable to the U.S. Treasury, timber 

contract performance bonds, employer contributions and payroll taxes withheld for agencies 

serviced by the National Finance Center, rural housing escrow, interest, fines, and penalties. 

Item FY 2021 FY 2020

Intragovernmental: 

 Fund Balance with Treasury $ 379 $ 319 

 Accounts Receivable 529 296 

Total Intragovernmental 908 615 

Cash and Other Monetary Assets 51 46 

Accounts Receivable 267 205 

Total Non-Entity Assets 1,226 866 

Total Entity Assets 359,304 313,028 

Total Assets $ 360,530 $ 313,894 

NOTE 3: Fund Balance with Treasury 

Borrowing Authority not yet Converted to Fund Balance represents unobligated and obligated 

amounts recorded at year-end that will be funded by future borrowings. Non-Budgetary Fund 

Balance with Treasury includes special fund receipt accounts, and clearing and suspense account 

balances awaiting disposition or reclassification.

Item FY 2021 FY 2020

Status of Fund Balance with Treasury 

Unobligated Balance 

 Available $ 83,777 $ 59,138 

 Unavailable 42,751 37,446 

Obligated Balance Not Yet Disbursed 110,799 110,813 

Borrowing Authority Not Yet Converted to Fund Balance (44,412) (53,640) 

Authority Granted Prior to Credit Reform for Rental Assistance Grants (18) (23) 

Non-Budgetary Fund Balance with Treasury 44,713 41,684 

Total $ 237,610 $ 195,418 

NOTE 4: Cash and Other Monetary Assets 

For FY 2021 and FY 2020, cash and other monetary assets consists of Federal crop insurance 

escrow of $217 million and $299 million, deposits in transit of $30 million and $36 million, and 

single-family housing escrow of $51 million and $46 million, respectively. 

Item FY 2021 FY 2020

Cash $ 298 $ 381 
94 Section II | Financial Information 

NOTE 5: Investments 

FY 2021 

Cost/ 

Acquisition 

Value 

Amortization 

Method 

Amortized 

(Premium) 

Discount 

Interest 

Receivable 

Net 

Investments 

Unrealized 

Gain/(Loss) 

Market/Fair 

Value 

Intragovernmental Securities and Investments: 

Non-marketable - Market-based $ 254 Straight Line $ 1 $ 1 $ 256 $ - $ 256 

Total Intragovernmental Securities and Investments 254 1 1 256 - 256 

Other Securities and Investments: 

Available for Sale: 

Equity Securities 3 - - 3 - 3 

Total Other Securities and Investments 3 - - 3 - 3 

Fair Value Measurement of Securities and Investments Other 

Non-Federal Securities Listed by Investment Type 3 

Total Fair Value Measurements 3 

Reconciliation of Investment Activity for Non-Federal Securities: 

Beginning Balance 3 

Ending Balance $ 3 

FY 2020 

Cost/ 

Acquisition 

Value 

Amortization 

Method 

Amortized 

(Premium) 

Discount 

Interest 

Receivable 

Net 

Investments 

Unrealized 

Gain/(Loss) 

Market/Fair 

Value 

Intragovernmental Securities and Investments: 

Non-marketable - Market-based $ 243 Straight Line $ 1 $ 1 $ 245 $ - $ 245 

Total Intragovernmental Securities and Investments 243 1 1 245 - 245 

Other Securities and Investments: 

Available for Sale: 

Equity Securities 3 - - 3 - 3 

Total Other Securities and Investments 3 - - 3 - 3 

Fair Value Measurement of Securities and Investments Other 

Non-Federal Securities Listed by Investment Type 3 

Total Fair Value Measurements $ 3 
USDA | 2021 Agency Financial Report 95

Other securities and investments include equity securities held by the Alternative Agricultural 

Research and Commercialization Corporation (AARCC). These securities represent shares the 

AARCC program purchased as part of the original investment into non-publicly traded 

companies. The program along with the investments is currently going through a review process 

with regards to the viability of the remaining investments and their value. 

The U. S. Treasury does not set aside assets to pay future expenditures associated with funds 

from dedicated collections; instead the cash generated from funds from dedicated Treasury 

securities are issued to the funds from dedicated collections as evidence of the dedicated receipts; 

Treasury securities held by the funds for dedicated collections are an asset of the fund(s) and a 

liability of the U. S. Treasury, and will be eliminated by consolidation in the U. S. Governmentwide financial statements; and when the funds from dedicated collections redeems their Treasury 

securities to make expenditures, the U. S. Treasury will finance those expenditures in the same 

manner that it finances all other expenditures. 

NOTE 6: Accounts Receivable, Net 

FY 2021 

Accounts Receivable, 

Gross 

Allowance for 

Uncollectible Accounts 

Accounts Receivable, 

Net 

Intragovernmental $ 320 $ - $ 320 

With the Public 5,409 (56) 5,353 

Total $ 5,729 $ (56) $ 5,673 

Criminal Restitution $ 5 $ (5) $ - 

FY 2020 

Accounts Receivable, 

Gross 

Allowance for 

Uncollectible Accounts 

Accounts Receivable, 

Net 

Intragovernmental $ 61 $ - $ 61 

With the Public 3,872 (60) 3,812 

Total $ 3,933 $ (60) $ 3,873 

Criminal Restitution $ 7 $ (7) $ - 

NOTE 7: Loans Receivable, Net and Loan Guarantee Liabilities 

Direct loan obligations and loan guarantee commitments made after fiscal year 1991, and the 

resulting direct loans or loan guarantees, are governed by the Federal Credit Reform Act of 1990, 

as amended. 

Direct loan obligations or loan guarantee commitments made pre-1992 are reported at either net 

present-value or net realizable value. 

The net present value of Direct Loan and Loan Guarantees, Net is not necessarily representative 

of the proceeds that might be expected if these loans were sold on the open market. 

The Department offers direct and guaranteed loans through credit programs in the FPAC mission 

area through the FSA and the CCC, and in the RD mission area. 
96 Section II | Financial Information 

Farm Production and Conservation (FPAC) Mission Area 

The FPAC mission area helps keep America’s farmers and ranchers in business as they face the 

uncertainties of weather and markets. FPAC delivers commodity, credit, conservation, disaster, 

and emergency assistance programs that help strengthen and stabilize the agricultural economy. 

FPAC contributes to the vitality of the farm sector with programs that encourage the expansion 

of export markets for U.S. agriculture. 

FSA offers direct and guaranteed loans to farmers who are temporarily unable to obtain private, 

commercial credit, and nonprofit entities that are engaged in the improvement of the nation’s 

agricultural community. Often, FSA borrowers are beginning farmers who cannot qualify for 

conventional loans due to insufficient financial resources. Additionally, the agency helps 

established farmers who have suffered financial setbacks from natural disasters or have limited 

resources to maintain profitable farming operations. FSA officials also provide borrowers with 

supervision and credit counseling. 

FSA’s mission is to provide supervised credit. FSA works with each borrower to identify 

specific strengths and weaknesses in farm production and management, and provides alternatives 

to address weaknesses. FSA is able to provide certain loan servicing options to assist borrowers 

whose accounts are distressed or delinquent. These options include reamortization, restructuring, 

loan deferral, lowering interest rates, acceptance of easements, and debt write-downs. The 

eventual goal of FSA’s farm credit programs is to graduate its borrowers to commercial credit. 

CCC’s foreign programs provide economic stimulus to both the U.S. and foreign markets, while 

giving humanitarian assistance to the most disadvantaged people throughout the world. CCC 

offers both credit guarantee and direct credit programs for buyers of U.S. exports, suppliers, and 

sovereign countries in need of food assistance. 

CCC permits debtor nations to reschedule debt under the aegis of the Paris Club. The Paris Club 

is an informal group of official creditors whose role is to facilitate debt treatments based on an 

internationally recognized set of rules and principles, facilitated by the senior officials of the 

French Treasury. Its sole purpose is to assess, on a case-by-case basis, liquidity problems faced 

by economically disadvantaged countries. The general premise of Paris Club is to provide 

disadvantaged nations short-term liquidity relief to enable them to reestablish their credit 

worthiness. The U.S. Departments of State and Treasury lead the U.S. Delegation and 

negotiations for all U.S. Agencies. 

CCC also provides loans for Farm and Sugar Storage Facilities (FSFL). FSFL provides low 

interest financing for producers to build or upgrade farm storage and handling facilities. FSFL 

program regulations were amended during FY 2017 to add eligibility for portable storage 

structures, portable equipment, and storage and handling trucks, and to reduce the down payment 

and documentation requirements for a “microloan” category of FSFLs up to $50,000. 
USDA | 2021 Agency Financial Report 97

Exhibit 25: Farm Production and Conservation List of Direct Loan and Loan Guarantee Programs 

Farm Service Agency 

Direct Farm Ownership 

Direct Farm Operating 

Direct Emergency Loans 

Direct Indian Land Acquisition 

Direct Boll Weevil Eradication 

Direct Seed Loans to Producers 

Direct Conservation 

Guaranteed Farm Operating Subsidized/Unsubsidized 

Guaranteed Farm Ownership Unsubsidized 

Guaranteed Conservation 

American Recovery and Reinvestment Fund 

Commodity Credit Corporation 

General Sales Manager Export Credit Guarantee 

Program 

Facility Program Guarantee 

P.L. 480 Title 1 Program 

Direct Farm Storage Facility 

Direct Sugar Storage Facilities 

Rural Development (RD) Mission Area 

RD offers both direct and guaranteed loans administered through three agencies with unique 

missions to bring prosperity and opportunity to rural areas. Each year, RD programs create or 

preserve tens of thousands of rural jobs and provide or improve the quality of rural housing, 

business, and utilities. To leverage the impact of its programs, RD is working with state, local, 

and Indian tribal governments, as well as private and nonprofit organizations and user-owned 

cooperatives. RD is able to provide certain loan servicing options to borrowers whose accounts 

are distressed or delinquent. These options include reamortization, restructuring, loan deferral, 

lowering interest rate, acceptance of easements, and debt write-downs. The choice of servicing 

options depends on the loan program and the individual borrower. 

Rural Housing programs provide affordable, safe, and sanitary housing and essential community 

facilities to rural communities. They also help finance new or improved housing for moderate, 

low, and very low-income families each year. Other programs help rural communities to finance, 

construct, enlarge or improve fire stations, libraries, hospitals and medical clinics, industrial 

parks, and other community facilities. 

Rural Business programs promote a dynamic business environment in rural America. These 

programs work in partnership with the private sector and community-based organizations to 

provide financial assistance and business planning. They also provide technical assistance to 

rural businesses and cooperatives, conduct research into rural economic issues, and provide 

cooperative educational materials to the public. 

Rural Utilities programs help to improve the quality of life in rural America through a variety of 

loan programs for electric energy, telecommunications, and water and environmental projects. 

These programs leverage scarce Federal funds with private capital for investing in rural 

infrastructure, technology, and development of water resources.
98 Section II | Financial Information 

Exhibit 26: Rural Development List of Direct Loan and Loan Guarantee Programs 

Rural Housing Program 

Single Family Housing Direct Loans 

(including Self-Help Loans) 

Single Family Housing Loan 

Guarantees 

Single Family Housing Repair Loans 

Rural Rental Housing Direct Loan 

Rural Rental Housing Loan 

Guarantees 

Farm Labor Housing Loans 

Community Facilities Direct Loans 

and Loan Guarantees 

Rural Business Program 

Business and Industry Loan 

Guarantees 

Intermediary Relending Program 

Loans 

Rural Microentrepreneur Assistance 

Program 

Rural Economic Development Loans 

Rural Energy for America Program 

Loan Guarantees 

Biorefinery Renewable Chemical, and 

Bio-based Product Manufacturing 

Assistance Program Loan Guarantees 

Rural Utilities Program 

Water and Environmental 

Direct Loans, Loan 

Guarantees 

Rural Broadband Direct 

Loans 

Electric and 

Telecommunications 

Direct Loans and Loan 

Guarantees 

Loan Modifications 

Multi-Family Housing direct loan modifications related to the revitalization program, which 

began in FY 2006, continued through FY 2021. In this program, Rural Development provides 

restructured loans and grants to development owners to revitalize multi-family housing 

development projects in order to extend the affordable use without displacing tenants due to the 

increased rent. 

The Debt Reduction Fund is used to account for CCC’s “modified debt.” Debt is considered to 

be modified if the original debt has been reduced or the interest rate of the agreement changed. In 

contrast, when debt is “rescheduled,” only the date of payment is changed. Rescheduled debt is 

carried in the original fund until paid. With one exception, all outstanding CCC modified debt is 

carried in the Debt Reduction Fund and is governed by the Federal Credit Reform Act of 1990, 

as amended. CCC modified debt for several P.L. 480 loans to El Salvador during FY 2021 under 

the Tropical Forest and Coral Reef Conservation Act (TFCCA). The modification cost for these 

loans was $15 million. 

FSA executed a modification during FY 2021 under the American Rescue Plan (ARP). Under 

ARP, USDA would pay 120% of the outstanding loans to socially disadvantaged borrowers in 

the following categories: Agricultural Credit Insurance Fund (ACIF) direct loans (ownership, 

operating and emergency), ACIF guaranteed loans (ownership and operating) and Farm Storage 

Facility Loans. While the modification was executed, the loan repayments have not taken place 

due to ongoing litigation. 
USDA | 2021 Agency Financial Report 99

Foreclosed Property 

As of September 30, 2021 and 2020, foreclosed property consisted of 1,095 and 1,267 rural 

single family housing dwellings, with an average holding period of 16 months for both years, 

respectively. As of September 30, 2021 and 2020, FSA-Farm Loan Program properties consist 

primarily of 127 and 125 farms, respectively. The average holding period for these properties in 

inventory for FY 2021 and FY 2020 was 77 months. Certain properties can be leased to eligible 

individuals. 

Other Information 

Non-performing loans are defined as receivables that are in arrears by 90 or more days or are on 

rescheduling agreements until such time two consecutive payments have been made following 

the rescheduling. When RD, FSA and CCC calculate loan interest income, however, the 

recognition of revenue is deferred. Late interest is accrued on arrears. 

Approximately $13,548 million and $14,328 million of Rural Housing borrowers’ unpaid loan 

principal as of September 30, 2021 and 2020 were receiving interest credit. If those loans receiving 

interest credit had accrued interest at the full-unreduced rate, interest income would have been 

approximately $604 million and $666 million higher for FY 2021 and FY 2020, respectively. 

At the end of FY 2021 and FY 2020, the RD portfolio contained approximately 53,656 and 48,280 

restructured loans with an outstanding unpaid principal balance of $3,407 million and 

$2,584 million, respectively. At the end of FY 2021 and FY 2020, the farm loan portfolio 

contained approximately 12,888 and 17,836 restructured loans with an outstanding unpaid 

principal balance of $1,073 million and $1,402 million, respectively. Direct credit and credit 

guarantee principal receivables in the food aid and export programs under rescheduling agreements 

as of September 30, 2021 and 2020, were $829 million and $642 million, respectively. 

Beginning in FY 2012, advance payments surpassed the loans receivable balance in the Rural 

Utilities Liquidating Fund. This was due to an increased volume in advance payments and a 

normal reduction to the Liquidating Portfolio. The Omnibus Budget Act of 1987, section 313, 

authorized the accumulation of Cushion of Credit (CoC) in the Revolving Fund. Borrowers may 

make advance payments up to their liquidating and financing total Rural Utilities Service debt. 

To accurately represent the value of Electric and Telecommunication assets, RD reports the CoC 

amounts as a separate line item in Table 1. 

Subsidy rates are used to compute each year’s subsidy expenses. The subsidy rates pertain only 

to the FY 2021 cohorts. These rates cannot be applied to the direct and guaranteed loans 

disbursed during the current reporting year to yield the subsidy expense. The subsidy expense for 

new loans reported in the current year could result from disbursements of loans from both 

current year cohorts and prior-year cohorts. The subsidy expense reported in the current year also 

includes reestimates. 
100 Section II | Financial Information 

Table 1: Loans Receivable, Net 

FY 2021 Direct Loans 

Loans 

Receivable, 

Gross 

Interest 

Receivable 

Foreclosed 

Property 

Present Value 

Allowance 

Direct Loans, 

Net 

Obligated Pre-1992

Farm $ 134 $ 96 $ 7 $ (98) $ 139 

Food Aid 254 5 - (53) 206 

Housing 5,332 695 8 (627) 5,408 

Community Facility 6 - - - 6 

Electric 1,805 2 - (1,427) 380 

Telecommunications 28 - - - 28 

Water and Environmental 167 2 - - 169 

Intermediary Relending 1 - - - 1 

Pre-1992 Total 7,727 800 15 (2,205) 6,337 

Obligated Post-1991 

Farm 15,155 330 10 (175) 15,320 

Food Aid 420 8 - (74) 354 

Housing 17,509 433 63 (1,755) 16,250 

Community Facility 11,151 106 - (188) 11,069 

Electric 49,235 30 - (1,171) 48,094 

Telecommunications 2,567 2 - 39 2,608 

Water and Environmental 12,897 87 - 429 13,413 

Intermediary Relending 321 2 - (63) 260 

Business and Industry 44 - - (6) 38 

Economic Development 202 - - (17) 185 

Post-1991 Total 109,501 998 73 (2,981) 107,591 

Cushion of Credit (1,268) - - - (1,268) 

Total Direct Loan Program Receivables 115,960 1,798 88 (5,186) 112,660 

Defaulted Guarantee Loans 

Pre-1992 396 18 - (246) 168 

Pre-1992 Total 396 18 - (246) 168 

Post-1991

Farm 253 90 - (323) 20 

Housing 174 - - (137) 37 

Community Facility 8 - - - 8 

Business and Industry 217 - - (53) 164 

Post-1991 Total 652 90 - (513) 229 

Total Defaulted Guarantee Loans 1,048 108 - (759) 397 

Loans Exempt from Credit Reform Act: 

Commodity Loans 391 2 - - 393 

Total Loans Exempt 391 2 - - 393 

Total Loans Receivable, Net $ 113,450 
USDA | 2021 Agency Financial Report 101 

FY 2020 Direct Loans 

Loans Receivable, 

Gross 

Interest 

Receivable 

Foreclosed 

Property 

Present Value 

Allowance Direct Loans, Net 

Obligated Pre-1992

Farm $ 161 $ 97 $ 7 $ (96) $ 169 

Food Aid 451 7 - (72) 386 

Housing 5,610 763 6 (613) 5,766 

Community Facility 8 - - - 8 

Electric 1,854 2 - (1,427) 429 

Telecommunications 40 - - - 40 

Water and Environmental 203 2 - - 205 

Intermediary Relending 2 - - - 2 

Pre-1992 Total 8,329 871 13 (2,208) 7,005 

Obligated Post-1991

Farm 14,026 309 10 (576) 13,769 

Food Aid 479 9 - (80) 408 

Housing 17,803 465 77 (2,301) 16,044 

Community Facility 10,536 72 - (120) 10,488 

Electric 47,011 27 - (1,169) 45,869 

Telecommunications 2,735 1 - 10 2,746 

Water and Environmental 13,204 88 - 590 13,882 

Intermediary Relending 342 2 - (70) 274 

Business and Industry 46 - - (6) 40 

Economic Development 200 - - (16) 184 

Post-1991 Total 106,382 973 87 (3,738) 103,704 

Cushion of Credit (1,798) - - - (1,798) 

Total Direct Loan Program Receivables 112,913 1,844 100 (5,946) 108,911 

Defaulted Guarantee Loans 

Post-1991

Farm 226 76 - (277) 25 

Export 387 17 - (238) 166 

Housing 126 - - (94) 32 

Community Facility 8 - - - 8 

Business and Industry 227 - - (43) 184 

Post-1991 Total 974 93 - (652) 415 

Total Defaulted Guarantee Loans 974 93 - (652) 415 

Loans Exempt from Credit Reform Act: 

Commodity Loans 902 11 - (4) 909 

Total Loans Exempt 902 11 - (4) 909 

Total Loans Receivable, Net $ 110,235 

Table 2: Total Amount of Direct Loans Disbursed (Post-1991) 

Direct Loan Programs FY 2021 FY 2020

Farm $ 3,399 $ 3,349 

Housing 1,086 1,255 

Community Facility 1,259 1,278 

Electric 4,082 5,177 

Telecommunications 206 150 

Water and Environmental 1,022 1,271 

Intermediary Relending 12 16 

Business and Industry 2 5 

Economic Development 40 39 

Total Direct Loans Disbursed $ 11,108 $ 12,540 
102 Section II | Financial Information 

Table 3: Subsidy Expense for Direct Loan Programs by Component 

FY 2021 Direct Loan Programs 

Interest 

Differential Defaults 

Fees and 

Other 

Collections Other 

Subtotal 

Subsidy 

Total 

Modifications 

Interest 

Rate 

Reestimates 

Technical 

Reestimates 

Total 

Reestimates 

Total 

Subsidy 

Expense 

Farm $ (28) $ 48 $ (1) $ 4 $ 23 $ (28) $ (608) $ 327 $ (281) $ (286)

Export - - - - - - - (6) (6) (6) 

Food Aid - - - - - - - 9 9 9 

Housing 32 47 - 3 82 3 (92) (110) (202) (117) 

Community Facility (138) 45 - 14 (79) - 168 (44) 124 45 

Electric (147) 6 (18) (17) (176) - (348) (278) (626) (802) 

Telecommunications 1 9 - (1) 9 - (3) (32) (35) (26) 

Water and Environmental 53 1 - (37) 17 - 27 198 225 242 

Intermediary Relending 3 - - - 3 - (2) - (2) 1 

Business and Industry - - - - - - - - - - 

Economic Development 6 - - - 6 - (1) (1) (2) 4 

Total Direct Loan Subsidy Expense $ (218) $ 156 $ (19) $ (34) $ (115) $ (25) $ (859) $ 63 $ (796) $ (936)

FY 2020 Direct Loan Programs 

Interest 

Differential Defaults 

Fees and 

Other 

Collections Other 

Subtotal 

Subsidy 

Total 

Modifications 

Interest 

Rate 

Reestimates 

Technical 

Reestimates 

Total 

Reestimates 

Total 

Subsidy 

Expense 

Farm $ (39) $ 76 $ (1) $ 7 $ 43 $ - $ (73) $ 187 $ 114 $ 157 

Export - - - - - - - 8 8 8 

Food Aid - - - - - - - 2 2 2 

Housing 67 52 - 5 124 7 (71) (67) (138) (7) 

Community Facility (134) 42 - 6 (86) - 152 (275) (123) (209) 

Electric (172) 14 (49) (25) (232) - (126) 1,307 1,181 949 

Telecommunications - 2 - (2) - - (30) 10 (20) (20) 

Water and Environmental 70 1 - (47) 24 - 50 (917) (867) (843) 

Intermediary Relending 4 - - - 4 - (2) 1 (1) 3 

Business and Industry - - - - - - - 1 1 1 

Economic Development 6 - - - 6 - - - - 6 

Total Direct Loan Subsidy Expense $ (198) $ 187 $ (50) $ (56) $ (117) $ 7 $ (100) $ 257 $ 157 $ 47 
USDA | 2021 Agency Financial Report 103

The FY 2021 reestimate process resulted in a $796 million decrease in the post-1991 estimated 

cost of the direct loan portfolio, primarily comprised of the following programs:

In the farm category, the total reestimate was ($281) million. Of that amount, ($261) million is 

attributable to the ACIF direct farm loans and ($20) million is attributable to Farm Storage 

Facility Loans. The majority of the farm loan reestimate is in farm ownership, which had a net

reestimate of ($276) million (($306) million technical and $30 million interest on the reestimate).

The downward technical reestimate was largely attributable to the 2020 cohort, which had a 

technical reestimate of ($393) million. The single effective rate (SER) decreased by 

2.06 percentage points, thereby increasing the present value of net cash inflows, and leading to 

this large downward reestimate. 

This large downward reestimate was offset by a large technical upward reestimate for the 

FY 2021 cohort of $74 million. The actual 2021 cohort borrower interest rate of 2.42% was 

0.36 percentage points less than the borrower interest rate assumed in the President’s Budget 

2021 formulation estimate of 2.78%. Since the cohort SER of 2.28% remained unchanged from 

the 2021 budget formulation estimate, this creates an implied positive spread of 0.14% in the 

FY 2021 cohort reestimate, in contrast to the 0.50% spread assumed in the 2021 budget 

formulation estimate. As a result, total scheduled interest as a percentage of total disbursements 

decreased from 53.6% to 46.7%, thereby leading to a large upward reestimate. 

The Direct Single-Family Housing program has a downward reestimate of $(203) million. 

The key drivers of the downward impact were the updated recapture recoveries, lag on 

foreclosure, actual full payoff prepayments, and updated disbursements from FY 2020. 

The forecasted recapture recoveries and prepayments increased, which resulted in a downward 

impact on the total reestimate amount. The SER also decreased, causing the reestimate rate to 

decrease. As the SER decreases, the net present value of the cash flows increases as they are 

being discounted at a lower rate, thereby reducing the subsidy rate.

The Direct Community Facility program has an overall upward reestimate of $124 million. 

The upward reestimate was primarily due to updated interest rates. For the majority of the years, 

the interest rate decreased which caused an overall increase in subsidy rates. When subsidy rates 

increase, the net present value of the cash flows decrease resulting in an upward reestimate.

The Direct Electric program had an overall downward reestimate of $(626) million which is 

comprised of a $(255.1) million downward reestimate in the FFB program, a $(423.7) million in 

the FFB Underwriter program, and a $45 million upward reestimate in the FFB Note Extension 

program. One of the main drivers of the downward reestimates in all Direct Electric programs 

was the increase in the undiscounted prepayments curves, which are based on actual 

prepayments and are used to project future cashflows. The downward reestimate was also caused 

by the updated SER, which primarily decreased. As the SER decreases, the cost of borrowing for 
104 Section II | Financial Information 

the agency decreases as well, causing a downward reestimate as the net present value of cash 

flows increases due to the lower discount rate. 

The Direct Water and Waste Disposal program had an overall upward reestimate of $226 million. 

The upward reestimate was primarily attributed to the Miscellaneous Inflows curves decreasing 

which are based on actual data and are used to project future cashflows from Miscellaneous 

Inflows. The Miscellaneous Inflows represent non-routine cash transactions such as 

consolidations. Another contributing factor to the overall upward reestimate was the decrease in 

interest rates that were lower than the rates the government uses when they borrow from Treasury. 

Table 4: Subsidy Rates for Direct Loans by Program and Component (percentage) 

FY 2021 Interest 

Differential Defaults 

Fees and 

Other 

Collections Other Total 

Direct Loan Programs 

Farm Ownership (6.33) 0.23 - 0.29 (5.81) 

Farm Operating (2.89) 4.84 - 0.42 2.37 

Emergency Disaster (11.79) 10.37 - 1.97 0.55 

Indian Tribe Land Acquisition (41.89) - - - (41.89) 

Boll Weevil Eradication (0.07) - - (0.09) (0.16) 

Indian Highly Fractionated Land 16.14 0.08 - (1.38) 14.84 

Heirs Property Relending Program 16.14 0.08 - (1.38) 14.84 

Farm Storage Facility Loan (0.54) - (0.27) (0.04) (0.85) 

Sugar Storage Facility Loan Program (2.06) - - 0.01 (2.05) 

Multifamily Housing Revitalization Seconds 45.67 0.60 - 0.01 46.28 

Multifamily Revitalization Zero 40.96 0.52 - (0.22) 41.26 

Community Facility Loans (13.65) 4.92 - 2.17 (6.56) 

Section 502 Single-Family Housing 0.53 5.16 - (0.15) 5.54 

Section 515 Multi-Family Housing 16.88 1.27 - (1.43) 16.72 

Section 504 Housing Repair 10.39 (0.02) - (2.46) 7.91 

Section 514 Farm Labor Housing 18.33 0.23 - (0.37) 18.19 

Section 524 Site Development 0.43 5.92 - 0.75 7.10 

Section 523 Self-Help Housing 0.46 4.84 - 0.08 5.38 

Single-Family Housing Credit Sales (7.38) 2.18 - 2.74 (2.46) 

Rural Microenterprise Direct Loans 1.07 2.07 - - 3.14 

Intermediary Relending Program 15.17 1.64 - (1.25) 15.56 

Rural Economic Development Loans 9.84 0.01 - (0.30) 9.55 

Water and Environmental 0.66 0.12 - (2.31) (1.53) 

FFB Electric Loans (4.56) 0.01 - (0.42) (4.97) 

Treasury Telecommunication Loans 0.02 0.71 - (0.07) 0.66 

FFB Telecommunications Loans (1.12) 0.17 - (2.24) (3.19) 

FFB Guaranteed Underwriting - 1.38 (1.95) - (0.57) 

Rural Energy Savings Program 9.42 1.23 - (0.40) 10.25 

Broadband Treasury Rate Loans 0.01 17.16 - (0.32) 16.85 

Reconnect Direct Loans 3.11 24.72 - (0.36) 27.47 

Reconnect Grant Assisted Loans - 24.72 - (0.09) 24.63 
USDA | 2021 Agency Financial Report 105 

Table 5: Schedule for Reconciling Subsidy Cost Allowance Balances (Post-1991) Direct Loans 

Item FY 2021 FY 2020

Beginning Balance of the Subsidy Cost Allowance $ 4,391 $ 4,611 

Add: Total Subsidy Expense for Direct Loans Disbursed During the Year As Shown in Table 3 (115) (117) 

Adjustments 

Loan Modifications (25) 7 

Fees Received 76 78 

Loans Written Off (171) (141) 

Subsidy Allowance Amortization (284) 146 

Other 663 (350) 

Total Subsidy Cost Allowance Before Reestimates 4,535 4,234 

Add or Subtract Total Subsidy Reestimates As Shown in Table 3 (796) 157 

Ending Balance of the Subsidy Cost Allowance $ 3,739 $ 4,391 
106 Section II | Financial Information 

Table 6: Guaranteed Loans Outstanding 

FY 2021 Pre-1992 Outstanding 

Principal, Face Value 

Post-1991 

Outstanding Principal, 

Face Value 

Total Outstanding 

Principal, Face Value 

Pre-1992 Outstanding 

Principal, Guaranteed 

Post-1991 

Outstanding Principal, 

Guaranteed 

Total Outstanding 

Principal, Guaranteed 

Loan Guarantee Programs 

Farm $ 1 $ 18,957 $ 18,958 $ 1 $ 17,169 $ 17,170 

Export - 1,981 1,981 - 1,938 1,938 

Housing - 123,431 123,431 - 111,052 111,052 

Community Facility - 1,173 1,173 - 1,039 1,039 

Electric - 139 139 - 139 139 

Water and Environmental - 108 108 - 95 95 

Business and Industry - 9,276 9,276 - 6,876 6,876 

Total Guarantees Outstanding $ 1 $ 155,065 $ 155,066 $ 1 $ 138,308 $ 138,309 

FY 2020 Pre-1992 Outstanding 

Principal, Face Value 

Post-1991 

Outstanding Principal, 

Face Value 

Total Outstanding 

Principal, Face Value 

Pre-1992 Outstanding 

Principal, Guaranteed 

Post-1991 

Outstanding Principal, 

Guaranteed 

Total Outstanding 

Principal, Guaranteed 

Loan Guarantee Programs 

Farm $ 1 $ 18,738 $ 18,739 $ 1 $ 16,933 $ 16,934 

Export - 2,182 2,182 - 2,135 2,135 

Housing - 127,859 127,859 - 115,036 115,036 

Community Facility - 1,165 1,165 - 1,035 1,035 

Electric - 146 146 - 147 147 

Water and Environmental - 94 94 - 83 83 

Business and Industry - 8,114 8,114 - 5,900 5,900 

Total Guarantees Outstanding $ 1 $ 158,298 $ 158,299 $ 1 $ 141,269 $ 141,270 

Table 7: Guaranteed Loans Disbursed 

Item FY 2021 FY 2020

Principal, Face Value 

Disbursed 

Principal, Guaranteed 

Disbursed 

Principal, Face Value 

Disbursed 

Principal, Guaranteed 

Disbursed 

Loan Guarantee Programs 

Farm $ 3,577 $ 3,239 $ 3,915 $ 3,538 

Export 2,004 1,960 2,232 2,184 

Housing 23,875 21,488 22,102 19,892 

Community Facility 105 93 53 47 

Water and Environmental 20 18 20 17 

Business and Industry 2,531 1,931 1,234 942 

Total Guaranteed Loans Disbursed $ 32,112 $ 28,729 $ 29,556 $ 26,620 
USDA | 2021 Agency Financial Report 107 

Table 8: Liability for Loan Guarantees (Present Value Method For Pre-1992 Guarantees) 

FY 2021 Liabilities for Losses on 

Pre- 1992 Guarantees Present Value 

Liabilities for Loan Guarantees on 

Post- 1991 Guarantees Present Value Total Liabilities for Loan Guarantees 

Loan Guarantee Programs 

Farm $ - $ 177 $ 177 

Export - 3 3 

Housing - (1,144) (1,144) 

Community Facility - 30 30 

Water and Environmental - 1 1 

Business and Industry - 332 332 

Total Liability for Loan Guarantees $ - $ (601) $ (601) 

FY 2020 Liabilities for Losses on Pre- 1992 

Guarantees Present Value 

Liabilities for Loan Guarantees on Post1991 Guarantees Present Value Total Liabilities for Loan Guarantees 

Loan Guarantee Programs 

Farm $ - $ 204 $ 204 

Export - 7 7 

Housing - 679 679 

Community Facility - 43 43 

Water and Environmental - 1 1 

Business and Industry - 395 395 

Total Liability for Loan Guarantees $ - $ 1,329 $ 1,329 

Table 9: Subsidy Expense for Loan Guarantees by Program and Component 

FY 2021 Loan Guarantee Programs 

Interest 

Supplement Defaults 

Fees and 

Other 

Collections Other Subtotal 

Total 

Modifications 

Interest 

Rate 

Reestimates 

Technical 

Reestimates 

Total 

Reestimates 

Total 

Subsidy 

Expense 

Farm $ - $ 19 $ (10) $ - $ 9 $ (13) $ 5 $ (27) $ (22) $ (26)

Export - - 9 (5) 4 - - (3) (3) 1 

Housing - 862 (1,033) - (171) - 14 (2,124) (2,110) (2,281) 

Community Facility - 4 (3) - 1 - - (12) (12) (11) 

Business and Industry - 184 (105) - 79 - - (186) (186) (107) 

Total Loan Guarantee Subsidy Expense $ - $ 1,069 $ (1,142) $ (5) $ (78) $ (13) $ 19 $ (2,352) $ (2,333) $ (2,424) 

FY 2020 Loan Guarantee Programs 

Interest 

Supplement Defaults 

Fees and 

Other 

Collections Other Subtotal 

Total 

Modifications 

Interest 

Rate 

Reestimates 

Technical 

Reestimates 

Total 

Reestimates 

Total 

Subsidy 

Expense 

Farm $ - $ 26 $ (14) $ - $ 12 $ - $ 1 $ (36) $ (35) $ (23)

Export - - 10 (6) 4 - (1) 2 1 5 

Housing - 726 (859) - (133) - (18) 827 809 676 

Community Facility - 2 (1) - 1 - - (11) (11) (10) 

Business and Industry - 75 (45) - 30 - 1 (18) (17) 13 

Total Loan Guarantee Subsidy Expense $ - $ 829 $ (909) $ (6) $ (86) $ - $ (17) $ 764 $ 747 $ 661 
108 Section II | Financial Information 

The FY 2021 reestimate process resulted in a $2,333 million decrease in the post-1991 estimated 

cost of the guaranteed loan portfolio, primarily comprised of the following programs: 

The Guaranteed Single-Family Housing Section 502 program had an overall downward 

reestimate of $(2,110) million. The total downward reestimate is the result of a downward 

reestimate of $(1,955) million in the Blended component of the program and a downward 

reestimate of $(140) million in the Purchase component. The majority of the total reestimate is 

explained by the Blended component’s change, which is attributed to the downward reestimates 

for cohorts 2016 through 2021. The large downward reestimate for these years is attributed to a 

decrease in forecasted default claims. These changes were driven by the updated borrower source 

data which created an improved macroeconomic outlook. The improved outlook is a result of a 

decrease in loss settlements paid due to the moratoriums that have been given to borrowers 

during the COVID Pandemic. 

The Guaranteed Business and Industry program had an overall downward reestimate of 

$(185) million. The majority of this downward reestimate is attributed to the assumption changes 

related to the annual and upfront fees. The projected receipt of additional annual and upfront fees 

drives the decrease in reestimated subsidy rate and causes a downward reestimate. In addition, 

the reestimated subsidy rate decreased in FY 2018 due to the forecasted decrease in actual 

default claims. 

Table 10: Subsidy Rates for Loan Guarantees by Program and Component (percentage) 

FY 2021 Interest 

Differential Defaults 

Fees and 

Other 

Collections Other Total 

Guaranteed Loan Programs 

Farm Ownership—Unsubsidized - 0.93 (1.17) - (0.24)

Farm Operating—Unsubsidized - 2.36 (1.24) - 1.12 

Conservation—Guaranteed - 0.72 (1.13) - (0.41)

GSM 102 - 0.24 (0.48) - (0.24) 

Export Guarantee Program—Facilities - 1.45 (3.43) - (1.98) 

Community Facility Loan Guarantees - 3.79 (4.15) - (0.36) 

Guaranteed 538 Multi-Family Housing - 3.34 (8.29) - (4.95) 

Guaranteed 502 Single-Family Housing - 3.65 (4.35) - (0.70) 

Business and Industry Loan Guarantees - 5.96 (4.82) - 1.14 

Business and Industry CARES Act - 6.29 (3.79) - 2.50 

Renewable Energy Loan Guarantees - 4.35 (2.39) - 1.96 

Section 9003 Loan Guarantees - 21.93 (5.83) 0.06 16.16 

Water and Environmental - 1.00 (0.88) - 0.12 
USDA | 2021 Agency Financial Report 109 

Table 11: Schedule for Reconciling Loan Guarantee Liability Balances 

(Post -1991 Loan Guarantees) 

Item FY2021 FY2020 

Beginning Balance of the Loan Guarantee Liabilities $ 1,329 $ 434 

Less Claim Payments to Lenders 160 414 

Add Fees Received 776 741 

Less Interest Supplements Paid 8 8 

Add Foreclosed Property and Loans Acquired 30 44 

Add Subsidy Expense Reestimates 99 45 

Less Negative Subsidy Payments 184 148 

Add Upward Reestimate 15 830 

Less Downward Reestimates 2,348 83 

Loan Guarantee Modifications (13) - 

Other (137) (112) 

Ending Balance of the Loan Guarantee Liabilities $ (601) $ 1,329 

Table 12: Administrative Expenses 

Item FY 2021 FY 2020

Direct Loan Programs $ 495 $ 489 

Guaranteed Loan Programs 465 450 

Total Administrative Expense $ 960 $ 939 
110 Section II | Financial Information 

NOTE 8: Inventory and Related Property, Net 

Commodity inventory is restricted for the purpose of alleviating distress caused by natural disasters, providing emergency food assistance in 

developing countries, and providing price support and stabilization 

Commodities: Unit of Measure FY 2021 Beginning Inventory Acquisitions Collateral Acquired Donations Others FY 2021 Ending Inventory 

Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value 

Corn Meal Pounds - $ - 39 $ 9 - $ - (39) $ (9) - $ - - $ - 

Blended Foods Pounds - - 108 66 - - (104) (62) - - 4 4 

Dry Edible Beans Cwt. - - - 1 - - - (1) - - - - 

Dry Whole Peas Cwt. - 1 3 85 - - (3) (81) - - - 5 

Grain Sorghum Bushels - 1 10 77 - - (10) (78) - - - - 

Lentils Dry Cwt. - - - 9 - - - (6) - - - 3 

Nonfat Dry Milk Pounds - - 24 27 - - (24) (27) - - - - 

Rice Products Cwt., Pounds - 1 4 91 - - (4) (90) - - - 2 

Meat Pounds - - 75 117 - - (75) (117) - - - - 

Vegetable Oil Pounds 24 13 234 154 - - (250) (159) - - 8 8 

Wheat Products Bushels, Pounds - - 34 428 - - (34) (428) - - - - 

Soybeans Bushels, Pounds - - 214 65 - - (214) (65) - - - - 

Fruit and Nut 

Products 

Pounds - - 130 108 - - (130) (108) - - - - 

Cotton Bales - - - - 1 133 - - (1) (133) - - 

Other Various - 2 - 26 - - - (35) - 8 - 1 

Total Commodities $ 18 $ 1,263 $ 133 $ (1,266) $ (125) $ 23 

Commodities: Unit of Measure FY 2020 Beginning Inventory Acquisitions Collateral Acquired Donations Others FY 2020 Ending Inventory 

Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value 

Corn Meal Pounds 1 $ - 102 $ 22 - $ - (103) $ (22) - $ - - $ - 

Blended Foods Pounds 14 4 104 63 - - (118) (66) - (1) - - 

Dry Edible Beans Cwt. - 1 - 22 - - - (23) - - - - 

Dry Whole Peas Cwt. - 2 3 65 - - (3) (65) - (1) - 1 

Grain Sorghum Bushels - - 22 118 - - (22) (117) - - - 1 

Lentils Dry Cwt. - - 1 25 - - (1) (25) - - - - 

Nonfat Dry Milk Pounds - - 5 100 - - (5) (100) - - - - 

Rice Products Cwt., Pounds - 3 1 48 - - (1) (50) - - - 1 

Meat Pounds - - 11 731 - - (11) (731) - - - - 

Vegetable Oil Pounds 4 2 396 186 - - (376) (176) - 1 24 13 

Wheat Products Bushels, Pounds - - 25 214 - - (25) (214) - - - - 

Peanuts Pounds 26 5 - - 98 17 - - (124) (22) - - 

Soybeans Bushels, Pounds - - 137 22 - - (137) (22) - - - - 

Fruit and Nut 

Products 

Pounds - - 13 378 - - (13) (378) - - - - 

Cotton Bales - 5 - - 6 1,550 - - (6) (1,555) - - 

Other Various - 1 - 87 - - - (113) - 27 - 2 

Total Commodities $ 23 $ 2,081 $ 1,567 $ (2,102) $ (1,551) $ 18 
USDA | 2021 Agency Financial Report 111 

NOTE 9: General Property, Plant, and Equipment (PP&E), Net 

FY 2021

Category

Useful Life 

(Years) Cost 

Accumulated 

Depreciation Net Book Value 

Land and Land Rights $ 70 $ - $ 70 

Improvements to Land 10 – 50 759 (754) 5 

Construction-in-Progress 324 - 324 

Buildings, Improvements and Renovations 15 – 30 3,190 (2,226) 964 

Other Structures and Facilities 15 – 50 1,877 (1,683) 194 

Equipment 5 – 20 2,048 (1,375) 673 

Assets Under Capital Lease 3 – 20 18 (16) 2 

Leasehold Improvements Varies 96 (69) 27 

Internal-Use Software 5 – 8 1,500 (1,227) 273 

Internal-Use Software in Development 56 - 56 

Total $ 9,938 $ (7,350) $ 2,588 

Total PP&E and Accumulated Depreciation Net PP&E 

Balance Beginning of Year $ 2,399 

Capitalized Acquisitions 555 

Dispositions 3 

Revaluations (1) 

Depreciation Expense (368) 

Balance at End of Year $ 2,588 

FY 2020 

Category 

Useful Life 

(Years) Cost 

Accumulated 

Depreciation Net Book Value 

Land and Land Rights $ 70 $ - $ 70 

Improvements to Land 10 – 50 759 (751) 8 

Construction-in-Progress 235 - 235 

Buildings, Improvements and Renovations 15 – 30 3,144 (2,148) 995 

Other Structures and Facilities 15 – 50 1,868 (1,670) 197 

Equipment 5 – 20 1,933 (1,340) 593 

Assets Under Capital Lease 3 – 20 22 (19) 3 

Leasehold Improvements Varies 91 (81) 9 

Internal-Use Software 5 – 8 1,305 (1,098) 207 

Internal-Use Software in Development 82 - 82 

Total $ 9,509 $ (7,107) $ 2,399 

Total PP&E and Accumulated Depreciation Net PP&E 

Balance Beginning of Year $ 2,249 

Capitalized Acquisitions 424 

Dispositions (1) 

Transfers in/out w/o Reimbursement 3 

Revaluations 1 

Depreciation Expense (277) 

Balance at End of Year $ 2,399 
112 Section II | Financial Information 

NOTE 10: Stewardship PP&E 

Stewardship PP&E consist of assets whose physical properties resemble those of general PP&E 

that are traditionally capitalized in the financial statements. Due to the nature of these assets, 

valuation would be difficult and matching costs with specific periods would not be meaningful. 

Stewardship PP&E include heritage assets and stewardship land. 

Heritage Assets 

Heritage assets are unique and are generally expected to be preserved indefinitely. Heritage 

assets may be unique because they have historical or natural significance, are of cultural, 

educational, or artistic importance, or have significant architectural characteristics. The assets are 

reported in terms of physical units rather than cost, fair value, or other monetary values. No 

amounts are shown on the Balance Sheet for heritage assets, except for multi-use heritage assets 

in which the predominant use of the asset is in general government operations. The costs of 

acquisition, betterment, or reconstruction of multi-use heritage assets is capitalized as general 

PP&E and depreciated. The costs of acquiring, constructing, improving, reconstructing, or 

renovating heritage assets, other than multi-use, is considered an expense in the period incurred 

when determining the net cost of operations. Heritage assets consist of collection type, such as 

objects gathered and maintained for exhibition, such as library collections, and non-collection 

type, such as memorials, monuments, and buildings. 

National Forests, National Grasslands and Other Sites 

FS manages its heritage assets by site. Sites include national forests, national grasslands, other 

FS-managed sites, and non-FS-managed sites such as museums and university laboratories. 

The mission of the FS is to sustain the health, diversity, and productivity of the Nation’s forests 

and grasslands to meet the needs of present and future generations. The FS strives to achieve 

quality land management under the sustainable multiple-use management concept, to deliver the 

necessary products and services that are essential for enhancing natural resource stewardship, 

and to meet the diverse needs of people. 

Heritage Asset categories can include the following: 

Priority Heritage Assets (PHA): Heritage assets of distinct public value that are, or should be, 

actively maintained, and meet one or more of the following criteria: 

• The property is recognized through an official designation, such as a listing on the National 

Register of Historic Places, State register, etc. 

• The property is recognized through prior investment in preservation, interpretation, and use. 

Any improvement to a PHA that meets real property designation criteria is considered real 

property. 

• The property is recognized in an Agency-approved management plan. 
USDA | 2021 Agency Financial Report 113 

• The property exhibits critical deferred maintenance needs, and those needs have been 

documented. 

Other Heritage Assets: Assets that may have potential important historical or cultural 

significance but lack formal listing and the demonstrated need for active maintenance. 

Assemblage Assets: Any grouping of artifacts or archival materials aggregated through donation, 

agency events, site-specific or other field collection, other acquisition method, or combination 

therein. 

Research Centers 

The Agricultural Research Service (ARS) was established on November 2, 1953. Congress first 

authorized federally supported agricultural research in the Organic Act of 1862. The statute 

directed the Commissioner of Agriculture “to acquire and preserve in his department all 

information he can obtain by means of books and correspondence, and by practical and scientific 

experiments.” The scope of USDA’s agricultural research has been expanded and extended more 

than 60 times since the Department was created. 

NRCS owns one heritage asset, the Tucson Plant Materials Center (TPMC), which is included in 

general PP&E as a multi-use asset. It was listed in the National Register of Historic Places 

(NRHP) on July 2, 1997. The TPMC develops and evaluates native plants and addresses an array 

of resource issues in the areas of rangeland, mined land, urban lands, cropland riparian areas, and 

desert lands. The TPMC provides technical assistance to NRCS field offices; Resource 

Conservation and Development (RC&D) groups; conservation districts; Federal, State, and 

Tribal agencies; and private landowners through the Southwest. Research centers are considered 

heritage assets because one or more buildings or structures at these centers is on (or eligible for 

inclusion on) the NRHP. 

Library Collections 

The National Agricultural Library (NAL) supports agricultural research through the acquisition, 

curation, and dissemination of information needed to solve today’s agricultural challenges. 

NAL’s content ranges from special collections materials dating from the early 16th century to 

near-real time observational research data. The Library holds more than 3.5 million items. NAL 

was created as the departmental library for USDA in 1862 and became a national library in 1990. 

One of five national libraries of the U.S., it is also a key member of the Agriculture Network 

Information Collaborative (AgNIC) partnership. In its international role, NAL participates, as 

appropriate, in international agricultural information initiatives. 

Acquisition and Withdrawal of Heritage Assets 

The FS generally does not construct heritage assets, although in some circumstances important 

site-structural components may be rehabilitated or reconstructed into viable historic properties to 

provide forest visitors with use and interpretation. Heritage assets may be acquired through the 
114 Section II | Financial Information 

procurement process, but this rarely occurs. Normally, heritage assets are part of the land 

acquisition and inventory process. Withdrawal occurs through land exchange or natural disasters. 

Most additions occur through inventory activities where previously undocumented sites are 

discovered and added to the total. 

Stewardship Land 

Stewardship land is land and land rights not acquired for or in connection with items of general 

PP&E. Land is defined as the solid surface of the earth, excluding natural resources. Stewardship 

land is valued for its environmental resources, recreational and scenic value, cultural and 

paleontological resources, vast open spaces, and resource commodities and revenue provided to 

the Federal Government, States, and counties. These assets are reported in terms of physical 

units rather than cost, fair value, or other monetary values. No asset amount is shown on the 

balance sheet for stewardship land. The acquisition cost of stewardship land is considered an 

expense in the period acquired when determining the net cost of operations. Stewardship land 

consists primarily of the national forests and grasslands owned by the FS and conservation 

easements purchased by NRCS. 

National Forests 

National forests are formally established and permanently set aside and reserved for national 

forest purposes, including National Wilderness, National Primitive, National Wild and Scenic 

River, National Recreation, National Scenic Research, National Game Refuges and Wildlife 

Preserve, and National Monument areas. 

National Grasslands 

National grasslands are designated by the Secretary of Agriculture and permanently held by the 

USDA under Title III of the Bankhead-Jones Farm Tenant Act. 

Research and Experimental Areas 

Research and experimental areas are reserved and dedicated by the Secretary of Agriculture for 

forest and range research experimentation. Areas reported are located outside the exterior 

boundaries of a national forest or national grassland. 

National Preserves and Other Areas 

National preserves are established to protect and preserve scientific, scenic, geologic, watershed, 

fish, wildlife, historic, cultural, and recreational values; and provide for multiple use and 

sustained yield of renewable resources. Other areas include areas administered by the FS that are 

not included in one of the above groups. 

Conservation Easements 

NRCS’ mission objectives in administering the conservation easement programs are to provide 

landowners with financial and technical assistance in return for maintaining and improving high 
USDA | 2021 Agency Financial Report 115 

quality productive soils, clean and abundant water, healthy plant and animal communities, clean 

air, an adequate energy supply, and working farm and ranch land. 

NRCS’ objectives in managing, monitoring, and enforcing the terms and conditions of easement 

deeds are to ensure that: 1) taxpayer investments are properly used in accordance with the intent 

of the program; 2) the agency is a good steward of the land; and 3) the land is properly 

maintained and managed compliant with agreed upon terms and conditions of the easement deed. 

Stewardship resources involve substantial investment in order to gain long-term benefits for the 

American public and help the agency satisfy its mission. The purpose of purchasing easements is 

to restore or enhance wetlands, farmland, grasslands, forest ecosystems, and restore, protect, 

maintain, and enhance the functions of floodplains. 

NRCS, on behalf of USDA, administers and owns conservation easements on private lands 

through a variety of programs. The specific uses for the land are identified under each program. 

Landowners are not allowed to withdraw from the program. However, termination or expiration 

may occur. For the purpose of reporting, all easements where NRCS (or a variant of the United 

States administered through NRCS authorities) is listed as a grantee of the easement are included 

in the agency’s stewardship land count. The NRCS stewardship land easements include 

conservation easements enrolled through program authorities and other easements administered 

by NRCS. 

Acquisition and Withdrawal of Stewardship Lands 

The Land and Water Conservation Fund (L&WCF) Land Acquisition Program acquires land for 

the FS National Forest System (NFS). The program coordinates with a variety of partners, 

including State, local, and Tribal governments, and private landowners through statewide 

planning for development of a land-adjustment strategy. 

The Land Acquisition Program preserves, develops, and maintains access to NFS lands and 

waters for the public and provides permanent access to public lands for recreation, commodity 

production, resource management, public safety, and community economic viability. 

The L&WCF statutory authority specifically defines the purpose to also include protecting the 

quality of scientific, scenic, historical, ecological, environmental, air and atmospheric, water 

resource, archeological values, as well as food and habitat for fish and wildlife, and managing 

the public lands for minerals, food, timber, and fiber. 

From these several allowable uses of program funding, the program concentrates on protecting 

habitat for priority species identified in the national forest and grassland’s Land Management 

Plans and enhancing recreational opportunities for areas with high demand for recreation. 

The program focuses acquisitions on inholdings and areas adjacent to existing NFS lands.
116 Section II | Financial Information 

FY 2021 (In Units) Beginning Balance Additions Withdrawals Ending Balance 

Heritage Assets 

National Forests 154 - - 154 

National Grasslands 20 - - 20 

Other Sites 170 2 (1) 171 

Research Centers 34 - - 34 

Library Collections 1 - - 1 

Total 379 2 (1) 380 

Stewardship Land 

National Forests 154 - - 154 

National Grasslands 20 - - 20 

Research and Experimental Areas 3 - - 3 

National Preserves and Other Areas 2 - - 2 

Conservation Easements 18,949 259 (1) 19,207 

Total 19,128 259 (1) 19,386 

FY 2020 (In Units) Beginning Balance Additions Withdrawals Ending Balance 

Heritage Assets 

National Forests 154 - - 154 

National Grasslands 20 - - 20 

Other Sites 170 2 (2) 170 

Research Centers 34 - - 34 

Library Collections 1 - - 1 

Total 379 2 (2) 379 

Stewardship Land 

National Forests 154 - - 154 

National Grasslands 20 - - 20 

Research and Experimental Areas 3 - - 3 

National Preserves and Other Areas 2 - - 2 

Conservation Easements 18,641 308 - 18,949 

Total 18,820 308 - 19,128 

NOTE 11: Liabilities Not Covered by Budgetary Resources 

In FY 2021 and FY 2020, other intragovernmental liabilities not covered by budgetary resources 

included accruals for Federal Employees’ Compensation Act (FECA) of $74 million and 

$131 million, contract disputes claims payable to Treasury’s Judgment Fund of $27 million and 

$27 million, unemployment compensation of $16 million and $10 million, and Technology 

Modernization Fund of $9 million and $10 million, respectively. 

In FY 2021 and FY 2020, other liabilities with the public not covered by budgetary resources 

included contingent liabilities of $68 million and $521 million, Payments to States of 

$104 million and $250 million, single family housing escrow of $51 million and $46 million, 

loans paid in advance for multi-family housing of $25 million and $25 million, and stewardship 

contracting product sales of $5 million and $5 million, respectively. 
USDA | 2021 Agency Financial Report 117 

Item FY 2021 FY 2020

Intragovernmental 

Accounts payable $ 51 

Other 126 $ 178 

Total Intragovernmental 177 178 

With the Public 

Federal Employee Benefits Payable 1,376 1,382 

Environmental and Disposal Liabilities 255 237 

Insurance and Guarantee Program Liabilities 11,321 6,068 

Other 253 847 

Total With the Public 13,205 8,534 

Total Liabilities Not Covered by Budgetary Resources 13,382 8,712 

Total Liabilities Covered by Budgetary Resources 168,620 187,280 

Total Liabilities Not Requiring Budgetary Resources 2,075 862 

Total Liabilities $ 184,077 $ 196,854 

NOTE 12: Federal Debt and Interest Payable 

FY 2021 Beginning Balance Net Borrowing Ending Balance 

Other Debt 

Debt to the Treasury $ 96,450 $ (12,401) $ 84,049 

Debt to the Federal Financing Bank 46,679 2,093 48,772 

Total Other Debt $ 143,129 $ (10,308) $ 132,821 

Classification of Debt: 

Intragovernmental Debt $ 132,821 

FY 2020 Beginning Balance Net Borrowing Ending Balance 

Other Debt 

Debt to the Treasury $ 90,754 $ 5,696 $ 96,450 

Debt to the Federal Financing Bank 46,314 365 46,679 

Total Other Debt $ 137,068 $ 6,061 $ 143,129 

Classification of Debt: 

Intragovernmental Debt $ 143,129 

NOTE 13: Environmental and Disposal Liabilities 

USDA is subject to the Comprehensive Environmental Response, Compensation, and Liability 

Act, the Clean Water Act, and the Resource Conservation and Recovery Act for cleanup of 

hazardous waste. In FY 2021 and FY 2020, FS estimates the liability for total cleanup costs for 

sites known to contain hazardous waste to be $2 million and $2 million, respectively, based on 

actual cleanup costs at similar sites. In FY 2021 and FY 2020, CCC estimates the liability for 

total cleanup costs for sites known to contain hazardous waste to be $48 million and $47 million, 

respectively, based on actual cleanup costs at similar sites. CCC estimates the range of potential 

future losses due to remedial actions to be between $48 million and $458 million. These 

estimates will change as new sites are discovered, remedy standards change, and new technology 

is introduced. 
118 Section II | Financial Information 

In FY 2021 and FY 2020, ARS estimated the liability for cleanup of the Beltsville Agricultural 

Research Center (BARC) to be $39 million and $32 million, respectively. ARS is evaluating and 

remediating areas of concern on BARC that are contaminated or threaten to contaminate ground 

and surface water with pesticides, solvents, metals, and other hazardous substances. 

USDA is also subject to Asbestos National Emissions Standards for Hazardous Air Pollutants. 

In FY 2021 and FY 2020, the Department estimated its liability for asbestos-related cleanup of 

real property to be $169 million and $158 million, respectively. The liability is calculated using 

total square footage of real property expected to contain asbestos times a cost factor based on 

historical actual cleanup costs, adjusted for inflation, including any other identifiable costs, e.g., 

survey cost. As additional information becomes available, key assumptions will be reevaluated, 

cost estimates will be revised, and necessary adjustments will be made to the liability recognition. 

NOTE 14: Other Liabilities 

In FY 2021, other liabilities with related budgetary obligations with the public included 

Agricultural Risk Coverage of $90 million; Price Loss Coverage of $2,025 million; Grants, 

Subsidies, and Contributions of $7,025 million; Conservation Reserve Program of $1,713 million; 

and other accrued liabilities of $765 million. 

In FY 2020, other liabilities with related budgetary obligations with the public included 

Agricultural Risk Coverage of $1,118 million; Price Loss Coverage of $4,884 million; Grants, 

Subsidies, and Contributions of $3,434 million; Conservation Reserve Program of $1,796 million; 

Trade Mitigation Program of $34 million; and other accrued liabilities of $614 million. 

In FY 2021, other liabilities without related budgetary obligations with the public included 

Payments to States of $104 million, single family housing escrow of $51 million, loans paid in 

advance for multi-family housing of $25 million, and other accrued liabilities of $5 million.

In FY 2020, other liabilities without related budgetary obligations with the public included 

Payments to States of $250 million, single family housing escrow of $46 million, loans paid in 

advance for multi-family housing of $25 million, and other accrued liabilities of $5 million. 
USDA | 2021 Agency Financial Report 119 

FY 2021 Non-Current Current Total 

Intragovernmental: 

Other Liabilities With Related Budgetary Obligations $ - $ 43 $ 43 

Employer Contributions and Payroll Taxes - 142 142 

Unfunded FECA Liability 29 95 124 

Other Unfunded Employment Related Liability - 18 18 

Liability for Clearing Accounts - 18 18 

Other Debt - 2,595 2,595 

Custodial Liability - 120 120 

Liability for Non-Entity Assets not reported on the Statement of Custodial Activities - 8,855 8,855 

Other Liabilities Without Related Budgetary Obligations 27 9 36 

Total Intragovernmental $ 56 $ 11,895 $ 11,951 

With the Public: 

Other Liabilities With Related Budgetary Obligations - 11,618 11,618 

Accrued Funded Payroll and Leave - 534 534 

Liability for Nonfiduciary Deposit Funds and Undeposited Collections - 589 589 

Liability for Clearing Accounts - (22) (22) 

Contingent Liabilities - 69 69 

Capital Lease Liability 2 1 3 

Custodial Liability - 1 1 

Other Liabilities Without Related Budgetary Obligations 25 160 185 

Total With the Public $ 27 $ 12,950 $ 12,977 

Total Other Liabilities $ 83 $ 24,845 $ 24,928 

FY 2020 Non-Current Current Total 

Intragovernmental: 

Other Liabilities With Related Budgetary Obligations $ - $ 41 $ 41 

Employer Contributions and Payroll Taxes - 123 123 

Unfunded FECA Liability 70 61 131 

Other Unfunded Employment Related Liability - 10 10 

Liability for Clearing Accounts - 36 36 

Other Debt - 2,610 2,610 

Custodial Liability - 72 72 

Liability for Non-Entity Assets not reported on the Statement of Custodial Activities - 9,737 9,737 

Other Liabilities Without Related Budgetary Obligations 27 10 37 

Total Intragovernmental $ 97 $ 12,700 $ 12,797 

With the Public: 

Other Liabilities With Related Budgetary Obligations - 11,880 11,880 

Accrued Funded Payroll and Leave - 472 472 

Liability for Nonfiduciary Deposit Funds and Undeposited Collections - 512 512 

Liability for Clearing Accounts - (29) (29) 

Contingent Liabilities - 521 521 

Capital Lease Liability 3 1 4 

Custodial Liability - 1 1 

Other Liabilities Without Related Budgetary Obligations 25 301 326 

Total With the Public $ 28 $ 13,659 $ 13,687 

Total Other Liabilities $ 125 $ 26,359 $ 26,484 
120 Section II | Financial Information 

NOTE 15: Leases 

Capital Leases 

USDA enters into leasing agreements through leasing authority delegated by the General Services 

Administration (GSA). USDA acquires use of various general facilities (buildings and plant 

material centers), equipment, and land with renewal options that range from 0 to 10 years and 

which are located mainly in urban areas. The portfolio includes leases with escalation clauses 

based on the Consumer Price Index (CPI), and amortization periods with a range of 8 to 25 years. 

Operating Leases 

USDA enters into leasing agreements through leasing authority delegated by GSA. USDA leases 

various land, buildings, and equipment. 

Major non-cancelable operating leases consists primarily of office space, most with renewal 

options that range from 1 to 25 years with escalation clauses based on the CPI, and lease periods 

with a range of 1 to 30 years. 

The USDA Headquarters complex (Whitten Building and South Building) is a government owned 

facility, which is part of the GSA Federal Buildings Inventory. As the result of a 1998 agreement 

between GSA and USDA, a moratorium was placed on the rental billings for the Headquarters 

complex beginning in FY 1999. At current market rate, the estimated yearly rental payment for the 

above mentioned space would be $69 million. This agreement is still in effect and as a result, 

USDA activities located in the Headquarters complex are not billed for rental costs.
USDA | 2021 Agency Financial Report 121 

FY 2021 

Capital Leases 

Summary of Assets Under Capital Leases Federal Non-Federal Total 

Land and Building $ - $ 18 $ 18 

Accumulated Amortization - (16) (16) 

Total $ - $ 2 $ 2 

Future Payments Due Land & Buildings Machinery & Equipment Totals 

Federal 

NonFederal Federal NonFederal Federal NonFederal 

Fiscal Year 2022 $ - $ 3 $ - $ - $ - $ 3 

Fiscal Year 2023 - 2 - - - 2 

Fiscal Year 2024 - 1 - - - 1 

Fiscal Year 2025 - - - - - - 

Fiscal Year 2026 - - - - - - 

After 5 Years - 1 - - - 1 

Total Future Lease Payments - 7 - - - 7 

Less: Imputed Interest - 3 - - - 3 

Less: Executory Costs - 1 - - - 1 

Net Capital Lease Liability - 3 - - - 3 

Capital lease liabilities covered by budgetary resources $ - $ 3 $ - $ - $ - $ 3 

Operating Leases 

Future Payments Due for NonCancellable Operating Leases Land & Buildings Machinery & Equipment Totals 

Federal Non-Federal Federal Non-Federal Federal Non-Federal 

Fiscal Year 2022 $ 12 $ 61 $ - $ 1 $ 12 $ 62 

Fiscal Year 2023 1 40 - 1 1 41 

Fiscal Year 2024 1 33 - - 1 33 

Fiscal Year 2025 1 26 - - 1 26 

Fiscal Year 2026 1 22 - - 1 22 

After 5 Years 1 107 - - 1 107 

Total Future Lease Payments $ 17 $ 289 $ - $ 2 $ 17 $ 291 
122 Section II | Financial Information 

FY 2020 

Capital Leases 

Summary of Assets Under Capital Leases Federal Non-Federal Total 

Land and Building $ - $ 22 $ 22 

Accumulated Amortization - (19) (19) 

Total $ - $ 3 $ 3 

Future Payments Due Land & Buildings Machinery & Equipment Totals 

Federal 

NonFederal Federal NonFederal Federal NonFederal 

Fiscal Year 2021 $ - $ 3 $ - $ - $ - $ 3 

Fiscal Year 2022 - 2 - - - 2 

Fiscal Year 2023 - 2 - - - 2 

Fiscal Year 2024 - 1 - - - 1 

Fiscal Year 2025 - - - - - - 

After 5 Years - 1 - - - 1 

Total Future Lease Payments - 9 - - - 9 

Less: Imputed Interest - 4 - - - 4 

Less: Executory Costs - 1 - - - 1 

Net Capital Lease Liability - 4 - - - 4 

Capital lease liabilities covered by budgetary resources $ - $ 4 $ - $ - $ - $ 4 

Operating Leases 

Future Payments Due for NonCancellable Operating Leases Land & Buildings Machinery & Equipment Totals 

Federal Non-Federal Federal Non-Federal Federal Non-Federal 

Fiscal Year 2021 $ 14 $ 68 $ - $ - $ 14 $ 68 

Fiscal Year 2022 1 47 - 1 1 48 

Fiscal Year 2023 1 38 - - 1 38 

Fiscal Year 2024 1 32 - - 1 32 

Fiscal Year 2025 - 25 - - - 25 

After 5 Years 2 110 - - 2 110 

Total Future Lease Payments $ 19 $ 320 $ - $ 1 $ 19 $ 321 
USDA | 2021 Agency Financial Report 123 

NOTE 16: Commitments and Contingencies 

The Department is subject to various contingencies related to legal and environmental claims as 

well as commitments under contractual and other commercial obligations. 

No amounts have been accrued in the financial statements for claims where the amount is 

uncertain or where the probability of judgment is remote. See Note 13 for discussion of 

environmental contingencies. 

Item Accrued Liabilities Estimated Range of Loss 

Lower End Upper End 

FY 2021 

Legal Contingencies: 

Probable $ 69 $ 69 $ 799 

Reasonably Possible 544 654 

Environmental Contingencies 

Probable 258 258 258 

Reasonably Possible 48 458 

Item Accrued Liabilities Estimated Range of Loss 

Lower End Upper End 

FY 2020 

Legal Contingencies: 

Probable $ 521 $ 521 $ 525 

Reasonably Possible 130 161 

Environmental Contingencies 

Probable 239 239 239 

Reasonably Possible 47 380 

Commitments to extend loan guarantees are estimated to be $5,600 million and $6,189 million in 

FY 2021 and FY 2020, respectively. 

NOTE 17: Funds from Dedicated Collections 

Funds from dedicated collections are financed by specifically identified revenues, often 

supplemented by other financing sources, which remain available over time. These specifically 

identified revenues and other financing sources are required by statute to be used for designated 

activities or purposes and must be accounted for separately from the Government’s general 

revenues. 

Financial information for all significant funds from dedicated collections follows the descriptions 

of each fund’s purpose shown below. 
124 Section II | Financial Information 

Agricultural Marketing Service (AMS) 

Expenses and Refunds, Inspection and Grading of Farm Products 

The commodity grading programs provide grading, examination, and certification services for a 

wide variety of fresh and processed food commodities using federally approved grade standards 

and purchase specifications. This fund is financed by the collection of fees charged to producers 

of various food commodities who request, on a voluntary basis, inspection and grading of 

agricultural food commodities. This program is authorized by the Agricultural Marketing Act of 

1946 (7 U.S.C. 1621–1627). 

Funds for Strengthening Markets, Income, and Supply 

The funds for strengthening markets, income, and supply are used to purchase commodities for 

schools and elderly feeding programs, to provide goods and other necessities in emergencies and 

disasters, and to purchase agricultural commodities to stabilize markets. The fund is permanently 

financed by statutory transfer of an amount equal to 30 percent of customs receipts collected 

during each calendar year and is automatically appropriated for expanding outlets for perishable, 

non-price supported commodities. An amount equal to 30 percent of receipts collected on fishery 

products is transferred to the Department of Commerce’s National Oceanic and Atmospheric 

Administration (NOAA). All remaining funding in excess of the amount made available under 

the 2008 Farm Bill to carry out Section 32 activities is transferred to the Food and Nutrition 

Service and is used to purchase commodities under section 6 of the National School Lunch Act 

and other authorities specified in the child nutrition appropriation. Funds are available under 

section 32 of the Act of August 24, 1935, as amended (7 U.S.C. 612c). 

Animal and Plant Health Inspection Service (APHIS) 

Agricultural Quarantine Inspection User Fee Account 

This fund is used to record and report expenditures and revenue associated with operating 

Agricultural Quarantine Inspection (AQI) activities at ports of entry. The Farm Bill of 1990, as 

amended by the Federal Agriculture Improvement and Reform Act of 1996, gave the Animal and 

Plant Health Inspection Service (APHIS) the authority to charge user fees for AQI services and 

to use the revenue to fund AQI activities. In March of 2003, a portion of the AQI program was 

transferred to the Department of Homeland Security (DHS); however, APHIS retained the 

authority to collect AQI revenue. APHIS transfers a portion of the revenue to DHS periodically 

throughout the year to fund its expenditures. The revenue in the fund is collected from airlines, 

air passengers, vessels, trucks, and railroad cars that are subject to AQI inspection at ports of 

entry. These user fees are an inflow of revenue from the public that is used to fund AQI 

inspections that are required by APHIS and DHS. The authority is codified in 21 U.S.C. 136(a). 
USDA | 2021 Agency Financial Report 125 

Forest Service (FS) 

Acquisition of Lands to Complete Land Exchanges 

Land Exchange Acquisitions is authorized by the Act of December 4, 1967, as amended (16 

U.S.C. 484a), commonly known as The Sisk Act. All deposits received during the previous fiscal 

year are made available by the annual appropriation act. The authorizing legislation provides for 

cash deposits of a portion or all of the value of the selected lands in exchange cases with States, 

local governments, and public school districts or other public school authority, to be used to 

purchase similar lands, or in cases of special legislation, for authorized expenditures from funds 

deposited by non-federal parties. 

Cooperative Work 

Cooperative contributions are deposited for disbursement in compliance with the terms and 

provisions of the agreement between the cooperator and the FS. Cooperators include timber 

purchasers, not-for-profit organizations, and local hunting and fishing clubs. The governing 

authorities are the Cooperative Funds Act of July 31, 1914 (16 U.S.C. 498) and the Knutson 

Vandenberg Act. 

Land Acquisition 

Funds are appropriated annually from Interior’s Land and Water Conservation Fund, but are noyear appropriations to the Forest Service for acquisition of land pursuant to the Land and Water 

Conservation Act, as amended and other land acquisition authorities of the Forest Service 

(section 40.12). 

National Forest Fund Receipts 

The Act of May 23, 1908, as amended (16 U.S.C. 500), requires (with a few exceptions) that all 

receipts from national forest activities be aggregated each fiscal year in order to calculate the 

portion which is paid to the States in which the national forests are located. The payments must 

be used for public schools and roads in the county or counties in which the national forests are 

situated. Originally, the States’ portion of receipts was 25 percent, but past statutory amendments 

have changed the calculation factors from time to time. Receipts include revenues from the sale 

of timber and other forest products; fees for grazing, special-use permits, power and mineral 

leases; and recreation user fees. 

National Grasslands Receipts 

Title III, Bankhead-Jones Farm Tenant Act (Act) of July 22, 1937, as amended (7 U.S.C. 1012) 

authorizes annual payments on a calendar year basis to counties, equal to 25 percent of revenues 

received during the year from sales activities and fees on lands designated as national grasslands 

or land utilization projects. Counties use these payments for public schools and roads. 

The administrative process of aggregating the receipts on a calendar year basis (involving two 

fiscal years) and disbursing the payments requires an unavailable receipt account (National 
126 Section II | Financial Information 

Grasslands Receipts, Forest Service) and an available receipt account (Payments to Counties, 

National Grasslands, Forest Service). 

National Parks and Public Land Legacy Restoration Fund 

The Great American Outdoors Act (GAOA) (P.L. 116-152) provides authority to establish the 

National Parks and Public Land Legacy Restoration Fund to address the maintenance backlog on 

public lands. The funds are allocated across GAOA specified Bureaus/Agencies including the 

USDA Forest Service for fiscal years 2021 through 2025. 

Payments to States, National Forest Fund 

The Act of May 23, 1908, as amended (16 U.S.C. 500), commonly known as Payments to States, 

requires with a few exceptions, that 25 percent of all monies received from the national forests 

and deposited into the National Forest Fund during a fiscal year from timber, grazing, special-use 

permits, power and mineral leases, and admission and user fees be paid to the States in which the 

national forests are located, for public schools and public roads in the county or counties in 

which the national forests are situated. 

Recreation Fee Demonstration Program 

The Recreation Fee Demonstration Program fund receives deposits of recreation fees collected 

from projects that are part of the Recreation Fee Demonstration Program. These monies are 

retained and used for backlog repair and maintenance of recreation areas, sites, or projects. 

These funds are also used for interpretation, signage, habitat or facility enhancement, resource 

preservation, annual operation, maintenance, and law enforcement related to public use of 

recreation areas and sites. The Recreation Fee Demonstration Program is authorized by 

16 U.S.C. 4601-6(a). 

Restoration of Forest Lands and Improvements 

The Restoration of Forest Lands and Improvements Acts (16 U.S.C. 579(c)) states any monies 

received by the United States with respect to lands under the administration of the Forest Service 

(a) as a result of the forfeiture of a bond or deposit by a permittee or timber purchaser for failure 

to complete performance of improvement, protection, or rehabilitation work required under the 

permit or timber sale contract or (b) as a result of a judgment, compromise, or settlement of any 

claim, involving present or potential damage to lands or improvements, shall be deposited into 

the Restoration of Forest Lands and Improvements Account. The monies are then made available 

until expended to cover the cost to the United States of any improvement, protection, or 

rehabilitation work on lands under the administration of the Forest Service rendered necessary by 

the action which led to the forfeiture, judgment, compromise, or settlement, provided that any 

portion of the monies received in excess of the amount expended in performing the work 

necessitated by the action which led to their receipt shall be transferred to miscellaneous receipts. 
USDA | 2021 Agency Financial Report 127 

State and Private Forestry 

The FY 2004 Department of the Interior and Related Agencies Appropriation Act (Public Law 

108-108) authorizes the Forest Service to receive a transfer of receipts from the Department of 

the Interior’s Land and Water Conservation Fund to finance the existing Forest Legacy Program. 

Treasury established a new special fund, “State and Private Forestry” to accommodate for this 

program, and the funding is available until expended. The program expenditures include grants 

and an occasional land purchase, but no real property will be procured or constructed. 

Stewardship Contracting Product Sales 

Stewardship End Result Contracting Projects (16 U.S.C. 6591c), amends the Healthy Forests 

Restoration Act of 2003, and states the Forest Service, via agreement or contract as appropriate, 

may enter into stewardship contracting projects with private persons or other public or private 

entities to perform services to achieve land management goals for the national forests and the 

public lands that meet local and rural community needs. The value of timber or other forest 

products removed may be applied as an offset against the cost of services received under the 

agreements or contracts. Monies earned from such agreements or contracts may be retained by 

the Forest Service and shall be available for expenditure without further appropriation at the 

project site from which the monies are collected or at another project site. In addition, if the 

offset value of the forest products exceeds the value of the resource improvement treatments, the 

Forest Service may collect any residual receipts under the Act of June 9, 1930 (commonly 

known as the Knutson-Vandenberg Act, 16 U.S.C. 576); and apply the excess to other authorized 

stewardship projects. Finally, the Forest Service is required to annually report to the Committee 

of Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the 

House of Representatives on the status and accomplishments of these agreements and contracts. 

Timber Salvage Sales 

The Salvage Sale Fund was established to facilitate the timely removal of timber damaged by 

fire, wind, insects, diseases, or other events. Amounts collected from the sale of salvaged timber 

are used on other qualifying salvage sales to cover the cost of preparing and administering the 

sales. The Timber Salvage Sales program is authorized by 16 U.S.C. 472(a). 

National Institute of Food and Agriculture (NIFA) 

Native American Institutions Endowment Fund 

The Native American Institutions Endowment Fund was authorized by Public Law 103-382 and 

provided an initial installment to establish an endowment to benefit the 1994 land-grant 

institutions. The public law states that “This program will enhance educational opportunities for 

Native Americans by building educational capacity at these institutions in the areas of student 

recruitment and retention, curricula development, faculty preparation, instruction delivery 

systems, and scientific instrumentation for teaching.” While the principal (corpus) of the fund 

cannot be used, the interest that is earned on the endowment fund investments in Treasury 
128 Section II | Financial Information 

instruments can be used for the purposes described above. After the close of a fiscal year, the 

income is distributed after making adjustments for the cost of administering the fund. 

Other 

Financial information is summarized for all other funds from dedicated collections with total 

assets less than $50 million listed below. 

Natural Resources Conservation Service 

• Damage Assessment and Restoration Revolving Fund 

• Miscellaneous Contributed Funds 

Food Safety and Inspection Service 

• Expenses and Refunds, Inspection of Farm Products 

Agricultural Marketing Service 

• Inspection and Weighing Services 

• Perishable Agricultural Commodities Act 

• Wool Research, Development and Promotion Trust Fund 

Animal Plant Health Inspection Service 

• Gifts and Bequests 

• Miscellaneous Contributed Funds 

Forest Service 

• Acquisition of Lands for National Forests, Special Acts 

• Administration of Rights-of-Way and Other Land Uses Fund 

• Communications Site Administration 

• Expenses, Brush Disposal 

• Gifts and Bequests 

• Gifts, Donations and Bequests for Forest and Rangeland Research 

• Hardwood Technology Transfer and Applied Research Fund 

• Land Between the Lakes Management Fund 

• Land Between the Lakes Trust Fund 

• Licensee Program 

• MNP Rental Fee Account 

• Operation and Maintenance of Forest Service Quarters 

• Payment to Minnesota (Cook, Lake and Saint Louis Counties) 

• Quinault Special Management Area 

• Range Betterment Fund 

• Receipts for Construction of Administrative Improvements- Arizona and Taos, New Mexico 

Land Conveyance 
USDA | 2021 Agency Financial Report 129 

• Reforestation Trust Fund 

• Roads and Trails for States, National Forest Fund 

• Timber Roads, Purchaser Elections 

• Timber Sales Pipeline Restoration Fund 

Rural Development 

• Alternative Agricultural Research and Commercialization Revolving Fund 

Agricultural Research Service 

• Concessions Fees and Volunteer Services 

• Gifts and Bequests 

• Miscellaneous Contributed Funds 

National Agricultural Statistics Service 

• Miscellaneous Contributed Funds 

Economic Research Service 

• Miscellaneous Contributed Funds 

Foreign Agricultural Service 

• Foreign Service National Separation Liability Trust Fund 

• Gifts and Bequests 

• Miscellaneous Contributed Funds 

Office of the Secretary 

• Gifts and Bequests 

Office of Partnerships and Public Engagement 

• Gifts and Bequests 

Office of Communications 

• Gifts and Bequests 

Office of General Counsel 

• Gifts and Bequests 

Office of the Inspector General 

• Inspector General Assets Forfeiture, Department of Justice 

• Inspector General Assets Forfeiture, Department of Treasury 
130 Section II | Financial Information 

FY 2021 AMS AMS APHIS FS

Funds from Dedicated Collections 

Expenses and 

Refunds, 

Inspection and 

Grading of Farm 

Products 

Funds for 

Strengthening 

Markets, 

Income, and 

Supply 

Agricultural 

Quarantine 

Inspection User 

Fee Account 

Acquisition of 

Lands to 

Complete Land 

Exchanges 

Cooperative 

Work Land Acquisition 

National 

Grasslands 

Receipts 

National Forest 

Fund Receipts 

National Parks 

and Public Land 

Legacy 

Restoration 

Fund 

BALANCE SHEET 

Intragovernmental 

Fund Balance with Treasury $ 127 $ 943 $ 247 $ 45 $ 380 $ 185 $ 169 $ 174 $ 17 

Investments, Net - - - - - - - - - 

Accounts Receivable, Net - 1 - - - - - - 250 

Total Intragovernmental Assets 127 944 247 45 380 185 169 174 267 

With the Public 

Accounts Receivable, Net 21 - 20 1 - - - 8 - 

General Property, Plant, and Equipment, Net - - 3 48 9 42 - - - 

Advances and Prepayments - - - - - - - - - 

Investments, Net - - - - - - - - - 

Total With the Public 21 - 23 49 9 42 - 8 - 

 Total Assets 148 944 270 94 389 227 169 182 267 

Intragovernmental 

Accounts Payable 5 - 1 - - - - - - 

Other Liabilities 8 - 2 - - - - - - 

Total Intragovernmental Liabilities 13 - 3 - - - - - - 

With the Public 

Accounts Payable 1 9 - - 1 - - - 2 

Federal Employee Benefits Payable 52 - - - - - - - - 

Advances From Others and Deferred Revenue - - - - 62 - - - - 

Other Liabilities 6 65 6 - 2 - 34 - - 

Total With the Public 59 74 6 - 65 - 34 - 2 

 Total Liabilities 72 74 9 - 65 - 34 - 2 

Unexpended Appropriations - - - - - - - - 265 

Cumulative Results of Operations 76 870 261 94 324 227 135 182 - 

 Total Liabilities and Net Position 148 944 270 94 389 227 169 182 267 

STATEMENT OF NET COST 

Gross Program Costs 243 1,481 242 4 95 67 38 - 20 

Less Earned Revenues 194 8 312 10 110 - 19 32 - 

Net Cost of Operations 49 1,473 (70) (6) (15) 67 19 (32) 20 

STATEMENT OF CHANGES IN NET POSITION 

Unexpended Appropriations: 

 Beginning Balance - - - - - - - - - 

 Appropriations Received - - - - - - - - - 

 Appropriations Transferred In/Out - - - - - - - - 285 

 Appropriations Used - - - - - - - - (20) 

Total Unexpended Appropriations - - - - - - - - 265 

Cumulative Results from Operations: 

 Beginning Balances 61 1,203 191 90 308 175 56 147 - 

 Appropriations Used - - - - - - - - 20 

 Other Than Intragovernmental Non-exchange Revenue: 

 Miscellaneous Taxes and Receipts - - - - - - - - - 

 Total Other Than Intragovernmental Non-exchange Revenue - - - - - - - - - 

 Intragovernmental Non-exchange Revenue - - - - - - 183 15 - 

 Donations and Forfeitures of Cash & Property - - - - - - - - - 

 Transfers-In/out Without Reimbursement - 1,140 - (1) - 118 - 1 - 

 Imputed Financing 63 - - - - - - - - 

 Other - - - - - - (86) (13) - 

Net Cost of Operations (49) (1,473) 70 6 15 (67) (19) 32 (20) 

Net Change and Cumulative Results of Operations 14 (333) 70 5 15 51 78 35 - 

Cumulative Results of Operations 75 870 261 95 323 226 134 182 - 

Net Position, End of Period $ 75 $ 870 $ 261 $ 95 $ 323 $ 226 $ 134 $ 182 $ 265 
USDA | 2021 Agency Financial Report 131 

FS NIFA 

Other Funds 

from 

Dedicated 

Collections 

Total Funds 

from 

Dedicated 

Collections 

Funds from Dedicated Collections 

Payments to 

States, 

National 

Forests Fund 

Recreation Fee 

Demonstration 

Program 

Restoration of 

Forest Lands 

and 

Improvements 

State and 

Private 

Forestry 

Stewardship 

Contracting 

Product Sales 

Timber Salvage 

Sales 

Native 

American 

Institutions 

Endowment 

Fund 

BALANCE SHEET 

Intragovernmental 

Fund Balance with Treasury $ 111 $ 153 $ 265 $ 246 $ 83 $ 87 $ 14 $ 344 $ 3,590 

Investments, Net - - - - - - 251 6 257 

Accounts Receivable, Net - - - - - - - - 251 

Advances and Prepayments - - - - - - - - - 

Other Assets - - - - - - - - - 

Total Intragovernmental Assets 111 153 265 246 83 87 265 350 4,098 

With the Public 

Accounts Receivable, Net - 2 - - 29 - - 6 87 

General Property, Plant, and Equipment, Net 2 1 1 - - 1 - 4 111 

Advances and Prepayments - - 1 10 - - - - 11 

Investments, Net - - - - - - - 3 3 

Total With the Public 2 3 2 10 29 1 - 13 212 

 Total Assets 113 156 267 256 112 88 265 363 4,310 

Intragovernmental 

Accounts Payable - - - - - - - - 6 

Other Liabilities - - - - - - - 1 11 

Total Intragovernmental Liabilities - - - - - - - 1 17 

With the Public 

Accounts Payable - 1 - - - - - 1 15 

Federal Employee Benefits Payable - - - - - - - - 52 

Advances From Others and Deferred Revenue - - - - - - - 18 80 

Other Liabilities 65 2 - 8 5 1 - 11 205 

Total With the Public 65 3 - 8 5 1 - 30 352 

 Total Liabilities 65 3 - 8 5 1 - 31 369 

Unexpended Appropriations - - - - - - 202 1 468 

Cumulative Results of Operations 48 153 267 248 107 87 63 331 3,473 

 Total Liabilities and Net Position 113 156 267 256 112 88 265 363 4,310 

STATEMENT OF NET COST 

Gross Program Costs (88) 97 23 63 32 27 6 170 2,520 

Less Earned Revenues 99 118 - - 46 35 5 162 1,150 

Net Cost of Operations (187) (21) 23 63 (14) (8) 1 8 1,370 

STATEMENT OF CHANGES IN NET POSITION 

Unexpended Appropriations: 

 Beginning Balance - - - - - - 190 1 191 

 Appropriations Received - - - - - - 12 - 12 

 Appropriations Transferred In/Out - - - - - - - - 285 

 Appropriations Used - - - - - - - - (20) 

Total Unexpended Appropriations - - - - - - 202 1 468 

Cumulative Results from Operations: 

 Beginning Balances (139) 133 289 223 93 79 63 311 3,283 

 Appropriations Used - - - - - - - - 20 

 Other Than Intragovernmental Non-exchange Revenue: 

 Miscellaneous Taxes and Receipts - - 1 - - - - - 1 

 Total Other Than Intragovernmental Non-exchange Revenue - - 1 - - - - - 1 

 Intragovernmental Non-exchange Revenue - - 1 - - - - 30 229 

 Donations and Forfeitures of Cash & Property - - - - - - - 1 1 

 Transfers-In/out Without Reimbursement - - - 89 - - - (2) 1,345 

 Imputed Financing - - - - - - - - 63 

 Other - - - - - - - - (99) 

Net Cost of Operations 187 21 (23) (63) 14 8 (1) (8) (1,370) 

Net Change and Cumulative Results of Operations 187 21 (21) 26 14 8 (1) 21 190 

Cumulative Results of Operations 48 154 268 249 107 87 62 332 3,473 

Net Position, End of Period $ 48 $ 154 $ 268 $ 249 $ 107 $ 87 $ 264 $ 333 $ 3,941 
132 Section II | Financial Information 

FY 2020 AMS AMS APHIS FS

Funds from Dedicated Collections 

Expenses and 

Refunds, 

Inspection and 

Grading of 

Farm Products 

Funds for 

Strengthening 

Markets, 

Income, and 

Supply 

Agricultural 

Quarantine 

Inspection 

User Fee 

Account 

Acquisition of 

Lands to 

Complete 

Land 

Exchanges 

Cooperative 

Work 

Land 

Acquisition 

National 

Forest Fund 

Receipts 

National 

Grasslands 

Receipts 

Payments to 

States, 

National 

Forests Fund 

BALANCE SHEET 

Intragovernmental 

Fund Balance with Treasury $ 104 $ 1,285 $ 166 $ 40 $ 366 $ 134 $ 118 $ 73 $ 87 

Investments, Net - - - - - - - - - 

Total Intragovernmental Assets 104 1,285 166 40 366 134 118 73 87 

With the Public 

Accounts Receivable, Net 24 - 30 - 1 - 29 - - 

General Property, Plant, and Equipment, Net - 1 4 51 9 41 - - 2 

Investments, Net - - - - - - - - - 

Advances and Prepayments - - - - - - - - - 

Total With the Public 24 1 34 51 10 41 29 - 2 

 Total Assets 128 1,286 200 91 376 175 147 73 89 

Intragovernmental 

Other Liabilities 9 1 2 - 1 - - - - 

Total Intragovernmental Liabilities 9 1 2 - 1 - - - - 

With the Public 

Accounts Payable 1 12 1 - 2 - - - - 

Federal Employee Benefits Payable 52 - - - - - - - - 

Advances From Others and Deferred Revenue - - - - 62 - - - - 

Other Liabilities 5 70 6 - 3 - - 17 228 

Total With the Public 58 82 7 - 67 - - 17 228 

 Total Liabilities 67 83 9 - 68 - - 17 228 

Unexpended Appropriations - - - - - - - - - 

Cumulative Results of Operations 61 1,203 191 91 308 175 147 56 (139) 

 Total Liabilities and Net Position 128 1,286 200 91 376 175 147 73 89 

STATEMENT OF NET COST 

Gross Program Costs 237 837 186 4 107 65 - 18 272

Less Earned Revenues 193 5 521 9 96 - (3) 42 126 

Net Cost of Operations 44 832 (335) (5) 11 65 3 (24) 146 

STATEMENT OF CHANGES IN NET POSITION 

Unexpended Appropriations: 

 Beginning Balance - - - - - - - - - 

 Appropriations Received - - - - - - - - - 

Total Unexpended Appropriations - - - - - - - - - 

Cumulative Results from Operations: 

 Beginning Balances 37 884 389 86 319 163 151 109 7 

 Intragovernmental Non-exchange Revenue - - - - - - 13 91 - 

 Donations and Forfeitures of Cash & Property - - - - - - - - - 

 Transfers-In/out Without Reimbursement - 1,151 (533) - - 77 - - - 

 Imputed Financing 68 - - - - - - - - 

 Other - - - - - - (14) (168) - 

Net Cost of Operations (44) (832) 335 5 (11) (65) (3) 24 (146) 

Net Change and Cumulative Results of Operations 24 319 (198) 5 (11) 12 (4) (53) (146) 

Cumulative Results of Operations 61 1,203 191 91 308 175 147 56 (139) 

Net Position, End of Period $ 61 $ 1,203 $ 191 $ 91 $ 308 $ 175 $ 147 $ 56 $ (139) 
USDA | 2021 Agency Financial Report 133 

FS NIFA 

Other Funds 

from Dedicated 

Collections 

Total Funds from 

Dedicated 

Collections 

Funds from Dedicated Collections 

Recreation Fee 

Demonstration 

Program 

Restoration of 

Forest Lands and 

Improvements 

State and 

Private Forestry 

Stewardship 

Contracting 

Product Sales 

Timber Salvage 

Sales 

Native American 

Institutions 

Endowment Fund 

BALANCE SHEET 

Intragovernmental 

Fund Balance with Treasury $ 133 $ 288 $ 218 $ 72 $ 80 $ 15 $ 324 $ 3,503 

Investments, Net - - - - - 239 6 245 

Total Intragovernmental Assets 133 288 218 72 80 254 330 3,748 

With the Public 

Accounts Receivable, Net 2 - - 27 - - 6 119 

General Property, Plant, and Equipment, Net 2 2 - - 1 - 5 118 

Investments, Net - - - - - - 3 3 

Advances and Prepayments - - 14 - - - - 14 

Total With the Public 4 2 14 27 1 - 14 254 

 Total Assets 137 290 232 99 81 254 344 4,002 

Intragovernmental 

Other Liabilities 1 - - - 1 - 1 16 

Total Intragovernmental Liabilities 1 - - - 1 - 1 16 

With the Public 

Accounts Payable 1 1 9 1 - - 3 31 

Federal Employee Benefits Payable - - - - - - - 52 

Advances From Others and Deferred Revenue - - - - - - 19 81 

Other Liabilities 2 - - 5 1 - 11 348 

Total With the Public 3 1 9 6 1 - 33 512 

 Total Liabilities 4 1 9 6 2 - 34 528 

Unexpended Appropriations - - - - - 190 1 191 

Cumulative Results of Operations 133 289 223 93 79 64 309 3,283 

 Total Liabilities and Net Position 137 290 232 99 81 254 344 4,002 

STATEMENT OF NET COST 

Gross Program Costs 96 22 52 43 45 5 181 2,170 

Less Earned Revenues 93 1 - 63 34 5 168 1,353 

Net Cost of Operations 3 21 52 (20) 11 - 13 817 

STATEMENT OF CHANGES IN NET POSITION 

Unexpended Appropriations: 

 Beginning Balance - - - - - 179 1 180 

 Appropriations Received - - - - - 11 - 11 

Total Unexpended Appropriations - - - - - 190 1 191 

Cumulative Results from Operations: 

 Beginning Balances 136 309 211 73 90 63 304 3,331 

 Intragovernmental Non-exchange Revenue - - - - - - 30 134 

 Donations and Forfeitures of Cash & Property - - - - - - 1 1 

 Transfers-In/out Without Reimbursement - 1 64 - - - (12) 748 

 Imputed Financing - - - - - - - 68 

 Other - - - - - - - (182) 

Net Cost of Operations (3) (21) (52) 20 (11) - (13) (817) 

Net Change and Cumulative Results of Operations (3) (20) 12 20 (11) - 6 (48) 

Cumulative Results of Operations 133 289 223 93 79 63 310 3,283 

Net Position, End of Period $ 133 $ 289 $ 223 $ 93 $ 79 $ 253 $ 311 $ 3,474 
134 Section II | Financial Information 

NOTE 18: Suborganization Program Costs 

FY 2021 

FPAC Business 

Center FSA CCC RMA NRCS FNS FSIS AMS APHIS FS

Farm Production and Conservation: 

Gross Costs $ 331 $ 25,231 $ 10,711 $ 15,775 $ 4,248 $ - $ - $ - $ - $ - 

Less: Earned Revenue 4 439 327 3,656 49 - - - - - 

Net Costs 327 24,792 10,384 12,119 4,199 - - - - - 

Food, Nutrition, and Consumer Services: 

Gross Costs - - - - - 164,785 - - - - 

Less: Earned Revenue - - - - - 68 - - - - 

Net Costs - - - - - 164,717 - - - - 

Food Safety: 

Gross Costs - - - - - - 1,425 - - - 

Less: Earned Revenue - - - - - - 269 - - - 

Net Costs - - - - - - 1,156 - - - 

Marketing and Regulatory Programs: 

Gross Costs - - - - - - - 5,046 1,767 - 

Less: Earned Revenue - - - - - - - 307 592 - 

Net Costs - - - - - - - 4,739 1,175 - 

Natural Resources and Environment: 

Gross Costs - - - - - - - - - 8,492 

Less: Earned Revenue - - - - - - - - - 778 

Net Costs - - - - - - - - - 7,714 

Rural Development: 

Gross Costs - - - - - - - - - - 

Less: Earned Revenue - - - - - - - - - - 

Net Costs - - - - - - - - - - 

Research, Education, and Economics: 

Gross Costs - - - - - - - - - - 

Less: Earned Revenue - - - - - - - - - - 

Net Costs - - - - - - - - - - 

Trade and Foreign Agricultural Affairs: 

Gross Costs - - - - - - - - - - 

Less: Earned Revenue - - - - - - - - - - 

Net Costs - - - - - - - - - - 

Staff Offices: 

Gross Costs - - - - - - - - - - 

Less: Earned Revenue - - - - - - - - - - 

Net Costs - - - - - - - - - - 

Total Gross Costs 331 25,231 10,711 15,775 4,248 164,785 1,425 5,046 1,767 8,492 

Less: Total Earned Revenue 4 439 327 3,656 49 68 269 307 592 778 

Net Cost of Operations $ 327 $ 24,792 $ 10,384 $ 12,119 $ 4,199 $ 164,717 $ 1,156 $ 4,739 $ 1,175 $ 7,714 
USDA | 2021 Agency Financial Report 135 

FY 2021 

RD ARS NASS NIFA ERS FAS Staff Offices 

Combined 

Total 

Intra-entity 

Eliminations 

Consolidated 

Total 

Farm Production and Conservation: 

Gross Costs $ - $ - $ - $ - $ - $ - $ - $ 56,296 $ (1,494) $ 54,802 

Less: Earned Revenue - - - - - - - 4,475 (26) 4,449 

Net Costs - - - - - - - 51,821 (1,468) 50,353 

Food, Nutrition, and Consumer Services: 

Gross Costs - - - - - - - 164,785 (1,531) 163,254 

Less: Earned Revenue - - - - - - - 68 (3) 65 

Net Costs - - - - - - - 164,717 (1,528) 163,189 

Food Safety: 

Gross Costs - - - - - - - 1,425 (55) 1,370 

Less: Earned Revenue - - - - - - - 269 (7) 262 

Net Costs - - - - - - - 1,156 (48) 1,108 

Marketing and Regulatory Programs: 

Gross Costs - - - - - - - 6,813 (173) 6,640 

Less: Earned Revenue - - - - - - - 899 (87) 812 

Net Costs - - - - - - - 5,914 (86) 5,828 

Natural Resources and Environment: 

Gross Costs - - - - - - - 8,492 (214) 8,278 

Less: Earned Revenue - - - - - - - 778 (10) 768 

Net Costs - - - - - - - 7,714 (204) 7,510 

Rural Development: 

Gross Costs 4,602 - - - - - - 4,602 (85) 4,517 

Less: Earned Revenue 3,300 - - - - - - 3,300 (10) 3,290 

Net Costs 1,302 - - - - - - 1,302 (75) 1,227 

Research, Education, and Economics: 

Gross Costs - 1,625 214 1,445 88 - - 3,372 (197) 3,175 

Less: Earned Revenue - 150 26 38 6 - - 220 (115) 105 

Net Costs - 1,475 188 1,407 82 - - 3,152 (82) 3,070 

Trade and Foreign Agricultural Affairs: 

Gross Costs - - - - - 496 - 496 (21) 475 

Less: Earned Revenue - - - - - 82 - 82 (50) 32 

Net Costs - - - - - 414 - 414 29 443 

Staff Offices: 

Gross Costs - - - - - - 1,810 1,810 (149) 1,661 

Less: Earned Revenue - - - - - - 1,353 1,353 (1,110) 243 

Net Costs - - - - - - 457 457 961 1,418 

Total Gross Costs 4,602 1,625 214 1,445 88 496 1,810 248,091 (3,919) 244,172 

Less: Total Earned Revenue 3,300 150 26 38 6 82 1,353 11,444 (1,418) 10,026 

Net Cost of Operations $ 1,302 $ 1,475 $ 188 $ 1,407 $ 82 $ 414 $ 457 $ 236,647 $ (2,501) $ 234,146 
136 Section II | Financial Information 

FY 2020 

FPAC Business 

Center FSA CCC RMA NRCS FNS FSIS AMS APHIS FS

Farm Production and Conservation: 

Gross Costs $ 286 $ 15,770 $ 24,169 $ 11,842 $ 4,476 $ - $ - $ - $ - $ - 

Less: Earned Revenue 21 469 1,596 3,057 60 - - - - - 

Net Costs 265 15,301 22,573 8,785 4,416 - - - - - 

Food, Nutrition, and Consumer Services: 

Gross Costs - - - - - 123,345 - - - - 

Less: Earned Revenue - - - - - 61 - - - - 

Net Costs - - - - - 123,284 - - - - 

Food Safety: 

Gross Costs - - - - - - 1,370 - - - 

Less: Earned Revenue - - - - - - 264 - - - 

Net Costs - - - - - - 1,106 - - - 

Marketing and Regulatory Programs: 

Gross Costs - - - - - - - 4,044 1,726 - 

Less: Earned Revenue - - - - - - - 307 788 - 

Net Costs - - - - - - - 3,737 938 - 

Natural Resources and Environment: 

Gross Costs - - - - - - - - - 7,216 

Less: Earned Revenue - - - - - - - - - 905 

Net Costs - - - - - - - - - 6,311 

Rural Development: 

Gross Costs - - - - - - - - - - 

Less: Earned Revenue - - - - - - - - - - 

Net Costs - - - - - - - - - - 

Research, Education, and Economics: 

Gross Costs - - - - - - - - - - 

Less: Earned Revenue - - - - - - - - - - 

Net Costs - - - - - - - - - - 

Trade and Foreign Agricultural Affairs: 

Gross Costs - - - - - - - - - - 

Less: Earned Revenue - - - - - - - - - - 

Net Costs - - - - - - - - - - 

Staff Offices: 

Gross Costs - - - - - - - - - - 

Less: Earned Revenue - - - - - - - - - - 

Net Costs - - - - - - - - - - 

Total Gross Costs 286 15,770 24,169 11,842 4,476 123,345 1,370 4,044 1,726 7,216 

Less: Total Earned Revenue 21 469 1,596 3,057 60 61 264 307 788 905 

Net Cost of Operations $ 265 $ 15,301 $ 22,573 $ 8,785 $ 4,416 $ 123,284 $ 1,106 $ 3,737 $ 938 $ 6,311 
USDA | 2021 Agency Financial Report 137 

FY 2020 

RD ARS NASS NIFA ERS FAS Staff Offices 

Combined 

Total 

Intra-entity 

Eliminations 

Consolidated 

Total 

Farm Production and Conservation: 

Gross Costs $ - $ - $ - $ - $ - $ - $ - $ 56,543 $ (1,719) $ 54,824 

Less: Earned Revenue - - - - - - - 5,203 (44) 5,159 

Net Costs - - - - - - - 51,340 (1,675) 49,665 

Food, Nutrition, and Consumer Services: 

Gross Costs - - - - - - - 123,345 (954) 122,391 

Less: Earned Revenue - - - - - - - 61 (5) 56 

Net Costs - - - - - - - 123,284 (949) 122,335 

Food Safety: 

Gross Costs - - - - - - - 1,370 (49) 1,321 

Less: Earned Revenue - - - - - - - 264 (4) 260 

Net Costs - - - - - - - 1,106 (45) 1,061 

Marketing and Regulatory Programs: 

Gross Costs - - - - - - - 5,770 (143) 5,627 

Less: Earned Revenue - - - - - - - 1,095 (79) 1,016 

Net Costs - - - - - - - 4,675 (64) 4,611 

Natural Resources and Environment: 

Gross Costs - - - - - - - 7,216 (183) 7,033 

Less: Earned Revenue - - - - - - - 905 (17) 888 

Net Costs - - - - - - - 6,311 (166) 6,145 

Rural Development: 

Gross Costs 6,930 - - - - - - 6,930 (88) 6,842 

Less: Earned Revenue 3,601 - - - - - - 3,601 (10) 3,591 

Net Costs 3,329 - - - - - - 3,329 (78) 3,251 

Research, Education, and Economics: 

Gross Costs - 1,508 200 1,428 74 - - 3,210 (151) 3,059 

Less: Earned Revenue - 156 22 30 4 - - 212 (109) 103 

Net Costs - 1,352 178 1,398 70 - - 2,998 (42) 2,956 

Trade and Foreign Agricultural Affairs: 

Gross Costs - - - - - 506 - 506 (31) 475 

Less: Earned Revenue - - - - - 119 - 119 (47) 72 

Net Costs - - - - - 387 - 387 16 403 

Staff Offices: 

Gross Costs - - - - - - 1,616 1,616 (123) 1,493 

Less: Earned Revenue - - - - - - 1,239 1,239 (998) 241 

Net Costs - - - - - - 377 377 875 1,252 

Total Gross Costs 6,930 1,508 200 1,428 74 506 1,616 206,506 (3,441) 203,065 

Less: Total Earned Revenue 3,601 156 22 30 4 119 1,239 12,699 (1,313) 11,386 

Net Cost of Operations $ 3,329 $ 1,352 $ 178 $ 1,398 $ 70 $ 387 $ 377 $ 193,807 $ (2,128) $ 191,679 
138 Section II | Financial Information

NOTE 19: Terms of Borrowing Authority Used

The Secretary of Agriculture has the authority to make and issue notes to the Secretary of the 

Treasury for the purpose of discharging obligations for RD’s insurance funds and CCC’s

non-reimbursed realized losses and debt related to foreign assistance programs. The permanent 

indefinite borrowing authority includes both interest bearing and non-interest bearing notes. 

These notes are drawn upon daily when disbursements exceed deposits. Notes payable under the 

permanent indefinite borrowing authority have a term of one year. On January 1 of each year, 

USDA refinances its outstanding borrowings, including accrued interest, at the January 

borrowing rate.

In addition, USDA has permanent indefinite borrowing authority for the foreign assistance and 

export credit programs to finance disbursements on post-credit reform, direct credit obligations, 

and credit guarantees. In accordance with the Federal Credit Reform Act of 1990, as amended, 

USDA borrows from Treasury on October 1, for the entire fiscal year, based on annual estimates 

of the difference between the amount appropriated (subsidy) and the amount to be disbursed to 

the borrower. Repayment under this agreement may be, in whole or in part, prior to maturity by 

paying the principal amount of the borrowings plus accrued interest to the date of repayment.

Interest is paid on these borrowings based on weighted average interest rates for the cohort, to 

which the borrowings are associated. Interest is earned on the daily balance of uninvested funds 

in the credit reform financing funds maintained at Treasury. The interest income is used to 

reduce interest expense on the underlying borrowings.

USDA has authority to borrow from the Federal Financing Bank (FFB) in the form of 

Certificates of Beneficial Ownership (CBOs) or loans executed directly between the borrower 

and FFB with an unconditional USDA repayment guarantee. CBOs outstanding with FFB are 

generally secured by unpaid loan principal balances. CBOs outstanding are related to pre-credit 

reform loans and no longer used for program financing.

FFB CBOs are repaid as they mature and are not related to any particular group of loans. 

Borrowings made to finance loans directly between the borrower and FFB mature and are repaid 

as the related group of loans become due. Interest rates on the related group of loans are equal to 

interest rates on FFB borrowings, except in those situations where an FFB funded loan is 

restructured and the terms of the loan are modified. Prepayments can be made on Treasury 

borrowings without a penalty; however, they cannot be made on FFB CBOs, without a penalty.

Funds may also be borrowed from private lending agencies and others. USDA reserves a sufficient 

amount of its borrowing authority to purchase, at any time, all notes and other obligations 

evidencing loans made by agencies and others. All bonds, notes, debentures, and similar 

obligations issued by the Department are subject to approval by the Secretary of the Treasury. 

Reservation of borrowing authority for these purposes has not been required for many years.
USDA | 2021 Agency Financial Report 139 

NOTE 20: Available Borrowing Authority, End of Period 

Available borrowing authority at September 30, 2021 and 2020 was $44,412 million and 

$53,640 million, respectively. 

NOTE 21: Undelivered Orders at the End of the Period 

FY 2021 Federal Non-Federal FY 2020 Federal Non-Federal 

Paid $ 85 $ 594 Paid $ 52 $ 1,313 

Unpaid 3,978 84,495 Unpaid 4,541 78,440 

Total $ 4,063 $ 85,089 Total $ 4,593 $ 79,753 

NOTE 22: Permanent Indefinite Appropriations 

USDA has permanent indefinite appropriations available to fund (1) subsidy costs incurred under 

credit reform programs, (2) certain costs of the crop insurance program, (3) certain commodity 

program costs, (4) certain costs associated with FS programs, (5) dairy indemnity payment 

program, and (6) farm storage facility loan program (FSFL). 

The permanent indefinite appropriations for credit reform are mainly available to finance any 

disbursements incurred under the liquidating accounts. These appropriations become available 

pursuant to standing provisions of law without further action by Congress after transmittal of the 

budget for the year involved. They are treated as permanent the first year they become available, 

as well as in succeeding years. However, they are not stated as specific amounts but are 

determined by specified variable factors, such as cash needs for liquidating accounts, and 

information about the actual performance of a cohort or estimated changes in future cash flows 

of the cohort in the program accounts. 

The permanent indefinite appropriation for the crop insurance program is used to cover premium 

subsidy, delivery expenses, losses in excess of premiums, and research and delivery costs. 

The permanent indefinite appropriation for commodity program costs is used to encourage the 

exportation of agricultural commodities and products, to encourage domestic consumption of 

agricultural products by diverting them, and to reestablish farmers’ purchasing power by 

making payments in connection with the normal production of any agricultural commodity for 

domestic consumption. 

The permanent indefinite appropriation for FS programs is used to fund Recreation Fee 

Collection Costs, Brush Disposal, License programs, Smokey Bear and Woodsy Owl, 

Restoration of Forest Lands and Improvements, Roads and Trails for States, National Forest 

Fund, Timber Roads, Purchaser Elections, Timber Salvage Sales and Operations, and 

Maintenance of Quarters. Each of these permanent indefinite appropriations is funded by receipts 

made available by law and is available until expended.
140 Section II | Financial Information 

The FSA has a permanent indefinite appropriation for the Dairy Indemnity Payment Program to 

provide payments to dairy producers when a public regulatory agency directs them to remove 

their raw milk from the commercial market because it has been contaminated by pesticides and 

other residues. 

The CCC also has permanent indefinite appropriations, as part of the American Rescue Plan, for 

USDA to pay up to 120% of loan balances, as of January 1, 2021, for FSFL to any Socially 

Disadvantaged producer who has a qualifying loan. 

NOTE 23: Legal Arrangements Affecting Use of Unobligated 

Balances 

Any information about legal arrangements affecting the use of the unobligated balance of budget 

authority is specifically stated by program and fiscal year in the appropriation language or in the 

alternative provisions section at the end of the appropriations act. 

NOTE 24: Explanation of Differences Between the SBR and the 

Budget of the U.S. Government 

The differences between the FY 2020 Statement of Budgetary Resources and the FY 2020 actual 

numbers presented in the FY 2022 Budget of the United States Government (Budget) are 

summarized below. 

FY 2020 

Item Budgetary 

Resources 

New Obligations & 

Upward 

Adjustments (Total) 

Distributed 

Offsetting 

Receipts Net Outlays 

Combined Statement of Budgetary Resources $ 358,184 $ 261,695 $ (2,863) $ 189,658 

Reconciling Items: 

Expired accounts (32,502) (281) - - 

CCC and USAID Timing Difference - 9 - - 

Milk Market Orders Fund 65 65 - - 

Rounding (3) (8) - (2) 

Budget of the United States Government $ 325,744 $ 261,480 $ (2,863) $189,656 

A comparison between the FY 2021 SBR and the FY 2021 actual numbers presented in the 

FY 2023 Budget cannot be performed as the FY 2023 Budget is not yet available. The Budget 

with the actual amounts for the current year (i.e., FY 2021) will be available at a later date at 

https://www.whitehouse.gov/omb/budget/. 
USDA | 2021 Agency Financial Report 141 

NOTE 25: Incidental Custodial Collections 

Custodial collections represent collections on land leases for resource extraction, National Forest 

Fund receipts from the sale of timber and other forest products, miscellaneous general fund 

receipts such as collections on accounts receivable related to canceled year appropriations, civil 

monetary penalties and interest, and commercial fines and penalties. Custodial collection 

activities are considered immaterial and incidental to the mission of the Department.

Item FY 2021 FY 2020

TOTAL CUSTODIAL REVENUE: 

Sources of Cash Collections: 

Miscellaneous $ 133 $ 167 

Total Cash Collections 133 167 

Accrual Adjustments 50 10 

Total Custodial Revenue 183 177 

Disposition of Collections: 

Transferred to Others: 

Treasury (84) (150) 

(Increase )/Decrease in Amounts Yet to be Transferred (99) (27) 

Total Disposition of Collections (183) (177) 

Net Custodial Activity $ - $ - 

NOTE 26: Fiduciary Activities 

The department is responsible for one fiduciary fund. The Rural Housing Insurance Fund (RHIF) 

was established by Public Law 89-117 pursuant to section 517 of title V of the Housing Act of 

1949, which authorized RD to collect escrow payments on behalf of new and existing Single 

Family Housing borrowers. Other fiduciary activities by RD include but are not limited to 

collections from borrowers, interest paid on escrow accounts, and payments to insurance 

agencies and taxing authorities. 

Schedule of Fiduciary Activity 

For the years ended September 30, 2021 and 2020 

Item 

Rural Housing 

Insurance Fund FY 2021

Rural Housing 

Insurance Fund FY 2020

Fiduciary Net Assets, Beginning of Year $ 115 $ 123 

Contributions 476 461 

Disbursements To and On Behalf of Beneficiaries (474) (469) 

Increases/(Decrease) in Fiduciary Net Assets 2 (8) 

Fiduciary Net Assets, End of Year $ 117 $ 115 

Fiduciary Net Assets 

As of September 30, 2021 and 2020 

Item Rural Housing 

Insurance Fund FY 2021

Rural Housing 

Insurance Fund FY 2020

Fiduciary Assets: 

Cash and Cash Equivalents $ 117 $ 115 

Total Fiduciary Net Assets $ 117 $ 115 
142 Section II | Financial Information 

NOTE 27: Reconciliation of Net Cost to Net Outlays 

Budgetary and financial accounting information differ. Budgetary accounting is used for 

planning and control purposes and relates to both the receipt and use of cash, as well as reporting 

the federal deficit. Financial accounting is intended to provide a picture of the government’s 

financial operations and financial position so it presents information on an accrual basis. 

The accrual basis includes information about costs arising from the consumption of assets and 

the incurrence of liabilities. The reconciliation of net outlays, presented on a budgetary basis, and 

the net cost, presented on an accrual basis, provides an explanation of the relationship between 

budgetary and financial accounting information. The reconciliation serves not only to identify 

costs paid for in the past and those that will be paid in the future, but also to assure integrity 

between budgetary and financial accounting. 

The reconciliation explains the relationship between the net cost of operations and net outlays by 

presenting (1) components of net cost that are not part of net outlays (e.g. depreciation and 

amortization expenses of assets previously capitalized, change in asset/liabilities); 

(2) components of net outlays that are not part of net cost (e.g. acquisition of capital assets); and 

(3) other temporary timing difference (e.g. prior period adjustments due to correction of errors). 

The analysis below illustrates this reconciliation by listing the key differences between net cost 

and net outlays. 

In FY 2021, significant line items include Year-End Credit Reform Subsidy Accrual Reestimates 

mainly due to RD, Increase in Accounts Receivable, Net mainly due to RMA higher reported 

premiums for certain crops and Forest Service Great American Outdoors Act, Decrease in 

Accounts Payable mainly due to RD subsidy payable to the financing account and FSA 

Coronavirus Food Assistance with no new funding available, Increase in Insurance and 

Guarantee Program Liabilities mainly due to RMA higher coverage amount, loss ratio, 

underwriting gain, and unearned premium, Decrease in Benefits Due and Payable mainly due to 

FNS State partners in Child Nutrition (CN) and Supplemental Nutrition Assistance Program 

(SNAP) more fully utilizing available resources, and Non-Entity Activity mainly due to RD 

Offset to Non-Entity Collections. 
USDA | 2021 Agency Financial Report 143 

FY 2021 Intragovernmental With The Public Total 

Net Cost $ 4,536 $ 229,610 $ 234,146 

Components of Net Cost Not Part of the Budgetary Outlays: 

 Property, Plant and Equipment Depreciation Expense - (368) (368) 

 Property, Plant and Equipment Disposals and Revaluations - 2 2 

 Cost of Goods Sold - (133) (133) 

 Year-End Credit Reform Subsidy Accrual Reestimates 3,683 - 3,683 

 Loan Modification Adjustment Transfers (76) - (76) 

 Exchange Revenue not Part of the SBR Outlays 93 240 333 

Increase/(Decrease) in Assets: 

 Accounts Receivable, Net 287 1,484 1,771 

 Loans Receivable, Net (Non-FCRA) - (654) (654) 

 Other Assets 33 (711) (678) 

(Increase)/Decrease in Liabilities 

 Accounts Payable 1,243 1,407 2,650 

 Insurance and Guarantee Program Liabilities - (6,523) (6,523) 

 Environmental and Disposal Liabilities - (19) (19) 

 Benefits Due and Payable - 4,749 4,749 

 Federal Employee and Veteran Benefits Payable - 6 6 

 Other Liabilities (60) 390 330 

Financing Sources: 

 Imputed Cost (966) - (966) 

Total Components of Net Operating Cost Not Part of the Budgetary Outlays: 4,237 (130) 4,107 

Components of the Budget Outlays That Are Not Part of the Net Operating Cost: 

 Acquisition of Capital Assets 12 543 555 

 Acquisitions of Inventory - 138 138 

Financing Sources: 

 Donated Revenue - (1) (1) 

 Transfers Out (In) Without Reimbursements (224) - (224) 

Total Components of the Budget Outlays that are not part of Net Operating Cost (212) 680 468 

Miscellaneous Items: 

 Distributed Offsetting Receipts (76) (5) (81) 

 Custodial/Non-exchange revenue (198) 85 (113) 

 Non-Entity Activity (3,320) - (3,320) 

 Other Temporary Timing Differences - 11 11 

Total Other Reconciling Items (3,594) 91 (3,503) 

Total Net Outlays 4,967 230,251 235,218 

Budgetary Agency Outlays, Net $ 235,218 
144 Section II | Financial Information 

FY 2020 Intragovernmental With The Public Total 

Net Cost $ 4,019 $ 187,660 $ 191,679 

Components of Net Operating Cost Not Part of the Budgetary Outlays: 

Property, Plant, and Equipment Depreciation - (277) (277) 

Property, Plant, and Equipment Disposal & Reevaluation - 17 17 

Year-End Credit Reform Subsidy Reestimates 2,737 - 2,737 

Other - 301 301 

Increase/(Decrease) in Assets: 

Accounts Receivable 731 465 1,196 

Loans Receivable - 3,489 3,489 

Other Assets 40 867 907 

(Increase)/Decrease in Liabilities not Affecting Budget Outlays: 

Accounts Payable (1,413) (9,198) (10,611) 

Salaries and Benefits (31) (110) (141) 

Insurance and Guarantee Program Liabilities - 1,163 1,163 

Environmental and Disposal Liabilities - (21) (21) 

Other Liabilities (Unfunded Leave, Unfunded Federal Employees Compensation Act 

(FECA), Actuarial FECA) (62) (2,566) (2,628) 

Other Financing Sources: 

Federal employee retirement benefit costs paid by OPM and imputed to the agency (855) - (855) 

Total Components of Net Operating Cost Not Part of the Budget Outlays 1,147 (5,870) (4,723) 

Components of the Budget Outlays That Are Not Part of Net Operating Cost 

Acquisition of Capital Assets - 116 116 

Acquisition of Inventory - (5) (5) 

Transfers Out (In) Without Reimbursement (2,748) - (2,748)

Other (238) 167 (71) 

Total Components of Budgetary Outlays That Are Not Part of Net Operating Cost (2,986) 278 (2,708) 

Net Outlays 2,180 182,068 184,248 

Related Amounts on the Statement of Budgetary Resources 

Outlays, Net 187,111 

Distributed Offsetting Receipts (2,863) 

Agency Outlays, Net $ 184,248 

Other components of net operating cost not part of the budgetary outlays include primarily 

interest revenue – investments, cost capitalization offset and bad debt expense. 

Other components of the budget outlays that are not part of net operating cost includes primarily 

accounts receivable, interest revenue, penalties and fines revenue, donated revenue, other 

revenue, collections for others, and financing sources transferred in from custodial statement 

collections 
USDA | 2021 Agency Financial Report 145 

NOTE 28: Disclosure Entities and Related Parties 

Disclosure Entities 

Research and Promotion Boards 

Research and Promotion (“checkoff”) programs are authorized by the Commodity Promotion, 

Research, and Information Act of 1996 and various Acts for specific commodities. Research and 

Promotion Board members are appointed by the Secretary. AMS is responsible for 

administrative oversight of Research and Promotion Programs to ensure fiscal accountability and 

program integrity. 

AMS also conducts rulemaking and oversees the activities of Fruit, Vegetable, and Specialty 

Crop Marketing Order Commodity Boards, Councils, or Committees to ensure compliance with 

all legal and regulatory requirements. Marketing orders and agreements are authorized by the 

Agricultural Marketing Agreement Act of 1937. 

These programs are not Federally funded. In FY 2021, the non-Federal costs of oversight for the 

Research and Promotion activities, including salaries and expenses, travel, and rent for office 

space were estimated to be $5.9 million. Industry boards collect and manage assessments from 

industry members to conduct program activities. 

Foundation for Food and Agricultural Research (FFAR) 

The Secretary of Agriculture (Secretary) was authorized by the Agricultural Act of 2014 (Act), 

to establish a nonprofit corporation known as the Foundation for Food and Agriculture Research. 

FFAR was established by the Secretary on July 23, 2014. On the date of the enactment of this 

Act, the Secretary transferred $200 million of the Commodity Credit Corporation funds, to the 

FFAR, to remain available until expended under the conditions stipulated. On the date on which 

the strategic plan was submitted, the Secretary transferred $185 million of the Commodity Credit 

Corporation Funds, to the FFAR, to remain available until expended. The FFAR may use the 

funds made available to carry out the purposes of the FFAR only to the extent that the FFAR 

secures an equal amount of non-federal matching funds for each expenditure. None of the funds 

made available may be used for construction. 

FFAR is governed by a Board of Directors (Board) which consists of appointed and ex-officio, 

nonvoting members. The ex-officio members of the Board consist of the following: 

(1) The Secretary 

(2) The Under Secretary of Agriculture for Research, Education, and Economics 

(3) The Administrator of the Agricultural Research Service 

(4) The Director of the National Institute of Food and Agriculture 

(5) The Director of the National Science Foundation 
146 Section II | Financial Information 

The ex-officio members by majority-vote appoint 15 individuals to the Board. The Board elects 

from among the members of the Board, an individual to serve as Chair of the Board. The Board 

hires an Executive Director who shall carry out such duties and responsibilities as the Board may 

prescribe. The Executive Director shall ensure that any funds received are held in separate 

accounts from funds received from nongovernmental entities. 

The purposes of FFAR shall be (1) to advance the research mission of the USDA by supporting 

agricultural research activities focused on addressing key problems of national and 

international significance; and (2) to foster collaboration with agricultural researchers from the 

Federal Government, State (as defined in section 1404 of the National Agricultural Research, 

Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)) governments, institutions of 

higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 

1001)), industry, and nonprofit organizations. The activities of the FFAR shall be supplemental 

to any other activities at USDA and shall not preempt any authority or responsibility of USDA 

under another provision of law. 

To ensure integrity in the operations of the FFAR, the Board developed and enforced procedures 

relating to standards of conduct, financial disclosure statements, conflicts of interest (including 

recusal and waiver rules), audits, and any other matters determined appropriate by the Board. 

Any individual who is an officer, employee, or member of the Board is prohibited from any 

participation in deliberations by the FFAR of a matter that would directly or predictably affect 

any financial interest of—

(1) the individual; 

(2) a relative (as defined in section 109 of the Ethics in Government Act of 1978 (5 U.S.C. 

App.)) of that individual; or 

(3) a business organization or other entity in which the individual has an interest, including 

an organization or other entity with which the individual is negotiating employment. 

Members of the Board may not receive compensation for service on the Board but may be 

reimbursed for travel, subsistence, and other necessary expenses incurred in carrying out the 

duties of the Board. 

The FFAR provides annual audits of its financial condition to the Secretary of Agriculture and 

the Comptroller General of the United States for examination or audit. 

In 2016, USDA and FFAR agreed to a Memorandum of Understanding defining in general terms 

the basis on which the parties will cooperate and to articulate the nature of the relationship 

between USDA and FFAR. The MOU will be effective for a term of five years, which term shall 

be renewable by mutual agreement of the Parties. 
USDA | 2021 Agency Financial Report 147 

Related Party 

Milk Market Orders Assessment Fund 

The Secretary of Agriculture is authorized by the Agricultural Marketing Agreement Act of 

1937, as amended under certain conditions to issue Federal milk marketing orders establishing 

minimum prices which handlers are required to pay for milk purchased from producers. There 

are currently 11 Federally-sanctioned milk market orders in operation. Market administrators are 

appointed by the Secretary and are responsible for carrying out the terms of specific marketing 

orders. Their operating expenses are financed by assessments on regulated handlers and partly by 

deductions from producers, which are reported to the Agricultural Marketing Service (AMS). 

Most of these funds are collected and deposited in checking and savings accounts in local banks 

and disbursed directly for direct disbursement by the market administrator. A portion of the 

funds collected may be invested in securities such as certificates of deposit. Expenses of local 

offices are met from an administrative fund and a marketing service fund, which are prescribed 

in each order. The administrative fund is derived from prorated handler assessments. 

The marketing service fund of the individual order disseminates market information to producers 

who are not members of a qualified cooperative. It also provides for the verification of the 

weights, sampling, and testing of milk from these producers. The cost of these services is borne 

by such producers. The maximum rates for administrative assessment and for marketing services 

are set forth in each order and adjustments below these rates are made from time to time upon 

recommendations by the market administrator and upon approval of the AMS to provide reserves 

at about a six-month operating level. Upon termination of any order, the statute provides for 

distributing the proceeds from net assets pro rata to contributing handlers or producers. 

The AMS reports this account in the President’s Budget because milk marketing administration 

staff are excepted service. Salaries, health insurance, TSP contributions and all other federal 

benefits are paid by the marketing order funds and as a result there are no costs to the Federal 

government. As a result, corresponding dollars are reported for presentation purposes only. 

In FY 2021, the non-Federal costs of administrating Federal milk marketing orders, including 

salaries and expenses, travel, and rent for office space were estimated to be $74 million. 

The Secretary’s oversight responsibilities of marketing orders by AMS is funded by the Funds 

for Strengthening Markets, Income and Supply (Section 32) account. 

NOTE 29: Insurance Programs 

In crop year 2021, there were approximately 1.17 million standard reinsurance and livestock 

policies totaling approximately $150,000 million insurance protection in force. 

The AIPs for Fiscal Year 2021 are as follows: 

• Ace American Insurance Company 

• American Agri-Business Insurance Company 

• American Agricultural Insurance Company 
148 Section II | Financial Information 

• CGB Insurance Company 

• Church Mutual Insurance Company 

• Country Mutual Insurance Company

• Farmers Mutual Hail Insurance Company of Iowa 

• Great American Insurance Company 

• Hudson Insurance Company 

• NAU Country Insurance Company 

• Producers Agriculture Insurance Company 

• Rural Community Insurance Company 

• Stratford Insurance Company 

• XL Reinsurance America Inc. 

The funds within the Federal Crop Insurance Program can be used to pay any authorized expense 

of the program. The following table lists the type of funds received and the resources used of the 

program for 2021 and 2020.

Federal Crop Insurance Program Resource and Resources Used 

Resource Fiscal Year 2021 Uses Fiscal Year 2021 

Producer Premiums Collected $ 4,146 Obligations for Delivery Costs $ 1,915 

Producer Fees Collected 50 Obligations for Indemnities 8,503 

Underwriting Loss Collected from AIPs 90 Obligations for Underwriting Gain 1,517 

Appropriations 7,718 Obligations for Initiatives & Other Costs 62

Appropriations Transfers (13) 

Unobligated Balance Beginning of Year 596 Unobligated Balance End of Year 590

Total $ 12,587 Total $ 12,587 

Resource Fiscal Year 2020 Uses Fiscal Year 2020 

Producer Premiums Collected $ 3,891 Obligations for Delivery Costs $ 1,686 

Producer Fees Collected 23 Obligations for Indemnities 9,886 

Underwriting Loss Collected from AIPs 35 Obligations for Underwriting Gain 533

Appropriations 8,217 Obligations for Initiatives & Other Costs 38

Appropriations Transfers (13) 

Unobligated Balance Beginning of Year 584 Unobligated Balance End of Year 594

Total $ 12,737 Total $ 12,737 

In addition to the mandatory FCIC fund, RMA obligated $65.8 million in S&E funds to administer 

the Federal Crop Insurance Program in 2021. The Federal Crop Insurance Act requires the total 

premium, including producer paid premium and premium subsidy, to be established to achieve an 

overall projected loss ratio of not greater than 1.0 over an extended period of time. The FCIC Act 

dictates the percentage of subsidized premium. The estimation of expected indemnities is generally 

based on the observed historical rate of loss often referred to as the ‘loss cost’ method. 

In fiscal year 2021 there was widespread drought conditions in many parts of the nation, causing 

catastrophic damage to crops. To provide relief, RMA deferred collection of any unpaid 
USDA | 2021 Agency Financial Report 149 

producer premium without interest by two months. The total amount of deferred collections was 

approximately $3,700 million. 

To provide COVID-19 relief in FY 2020, RMA allowed additional time for policyholders to 

make payment of premium and administrative fees for the August 15 premium billing date, 

representing most of the year’s premium due. The estimated deferred collections in fiscal year 

2020 is $2,500 million. 

FCIC collects administrative fees from producers in return for catastrophic risk protection 

coverage and additional levels coverage. The rates are set by statute. For reinsurance year 2021, 

the catastrophic risk protection fees were $655 per crop per county and $30 for additional levels 

coverage per crop per county. 

FCIC may request the Secretary of Agriculture to provide borrowing authority funds of the CCC 

if at any time the amounts in the insurance fund are insufficient to allow FCIC to carry out its 

duties. Even though the authority exists, FCIC did not request CCC funds in the reporting period. 

Instead, FCIC uses such sums as are necessary from the U.S. Treasury to cover program costs 

that are more than collections. 

Loss Recognition 

The end of the government’s fiscal year, on September 30, occurs while many crops are still in 

the field and subject to ongoing natural risks. This misalignment between the government’s fiscal 

year and the inherent business cycle of the crop insurance program results in significant 

uncertainty for the end-of-fiscal-year estimates of claims. Estimates can often vary by 20% or 

more from final results. 

Estimates of claims are based on current crop conditions and historical trends for a given crop 

condition. Therefore, it is assumed the expected claims will be similar to levels observed 

historically. 

The estimate model assumes that there is a relationship between crop yields, harvest prices, and 

the resulting loss ratios. The indemnity for an individual producer is based on the difference 

between the producer’s actual yield and his/her average yield. Similarly, for revenue plans, the 

indemnity is based on the difference between the actual harvest price and the “base” price which 

is the estimated harvest price at the time the crop is planted. 

Regression analyses are calculated based on the historic relationships between the crop yields 

and harvest prices (when necessary) for each crop in each state and the resulting loss ratios in 

each of those years. The resulting regression coefficients are used in conjunction with the most 

recent NASS forecasts and commodity futures prices to calculate a projected loss ratio for each 

crop/state combination. 
150 Section II | Financial Information 

There are uncertainties associated with these assumptions including: 

• Actual yields which may be different than those provided by the NASS estimates; 

• Changes in weather patterns close to harvesting dates, which could affect yields but not be 

reflected in the NASS estimates; 

• Commodity prices which may change from those in the market because of many factors 

(such as weather, yields, and economic conditions); and 

• Significant catastrophic weather events (i.e. hurricanes and freezes) occurring near the 

balance sheet date which could affect estimated crop yields and crop prices. 

There are uncertainties associated with assumptions used to estimate losses on insurance claims. 

As a result, the ultimate liability may differ significantly from the recorded estimate. Indemnity 

costs are paid from premium proceeds, including producer paid premium and premium subsidies. 

If indemnity costs exceed funds available, additional funds will be requested and apportioned 

to FCIC. 

Insurance Liabilities 

The following table shows the insurance liabilities as of September 30, 2021 and September 30, 

2020.

Insurance Liabilities 2021 2020

Estimated Losses on Insurance Claims 

 Liability for Unpaid Insurance Claims $ 3,413 $ 737

 Liability for Losses on Remaining Coverage 6,572 4,149 

Total Estimated Losses on Insurance Claims $ 9,985 $ 4,886 

 Unearned Revenue 1,189 750

 Underwriting Gain 3,044 2,058 

 Other Insurance Liabilities 8 9 

Total Insurance Liabilities (1) $ 14,226 $ 7,703 

(1) In Fiscal Year 2020, there was reported $5 million for contingent liabilities. 

Reported insurance liabilities increased significantly from fiscal year 2020 to fiscal year 2021. 

This increase is attributed to: 

• Higher coverage amount as the result of higher crop prices 

• Increase participation in certain insurance products (Rainfall Index Plans and Livestock 

Plans) 

• Higher level of losses caused by widespread drought 
USDA | 2021 Agency Financial Report 151 

Estimated Losses on Insurance Claims. 

The following tables show information for changes in the estimated losses on insurance claims 

for fiscal year 2021 and fiscal year 2020. 

Changes in Estimated Losses on Insurance Claims 2021 2020

Beginning Balance $ 4,886 $ 4,915 

Claims Expenses 8,477 9,886 

Payments to Settle Claims (8,570) (9,974) 

Adjustment of Accruals for Estimated Losses 5,192 59

Ending Balance $ 9,985 $ 4,886 

The chart above provides a look forward of the Liability for Estimated Losses on Insurance 

Claims from the prior year to the current year. The Claims Expenses represents actual claims 

reported. In fiscal year 2021 the actual claims reported were $1,400 million less than fiscal year 

2020. This was a result of higher losses related to reinsurance year 2019 reported in fiscal year 

2020. Payments to Settle Claims are the actual payments to producers. The amounts for fiscal 

year 2020 do not include the $5 million for contingent liabilities. 

The Adjustment of Accrual for Estimated Losses is the reversal of the prior year accrual 

combined with the current year accrual for estimated losses. The indemnity projection is based on 

two major factors: losses due to a shortfall in yield and changes in commodity prices impacting 

revenue plans. The principal data source for yield projections is the NASS Crop Production 

report. The NASS Crop Production report is considered to represent USDA’s official perspective 

on the current state of agricultural production. It is based on a survey of growers along with 

inspections of randomly selected sections of farms. Although the NASS Crop Production report is 

scrutinized by multiple sources, it is still an estimate and is subject to some uncertainty. 

The revenue plans of insurance base their indemnities on the futures prices for specific contracts 

and exchanges. The best prediction of the final price for the futures contract is the most current 

price of the relevant commodities exchange. At the time the indemnity projection is made, up-todate futures prices are taken from multiple exchanges. Again, this is subject to uncertainty due to 

fluctuations in markets. 

Liability for Unpaid Insurance Claims 

Liability for unpaid insurance claims are claims for adverse events that occurred before the end 

of the reporting period. Under SFFAS 51, for the claim to be considered incurred, a single event 

or a series of events must be completed by the end of the reporting period to be considered an 

adverse event of the period. 
152 Section II | Financial Information 

The liability for unpaid insurance claims is comprised of the following: 

• Funds in the Escrow accounts to cover payments to producers who have not cashed their 

indemnity payments 

• Claims reported but not paid as of the end of the reporting period 

• Incurred but Not Reported (IBNR) is estimated claims from events that have occurred as of 

the end of the reporting period but have not yet been reported for settlement. 

FCIC uses a historical trend analysis based upon the data from the prior years to determine the 

value of claims incurred for the current reinsurance year as of the financial statement reporting 

date. When the Summary of Business (SOB) is higher than the estimate at year end, the SOB 

amount is used. 

Liability for Losses on Remaining Coverage 

The liability for losses on remaining coverage as of the end of the reporting period represents the 

estimated amounts to be paid to settle claims for the remaining open arrangement period exceeding 

losses associated with the related unearned premiums as of the end of the reporting period. 

The liability for losses on remaining coverage is the total projected losses minus actual losses 

reported, IBNR, and losses associated with unearned premium. 

Liability for Unearned Insurance Premiums 

Premium revenue is comprised of producer paid premium. Producer paid premium is recognized 

as earned proportionately over each crop’s growing season. The portion of producer paid 

premium not recognized at the conclusion of the fiscal year is classified as insurance and 

guarantee program liabilities in the balance sheet. Much of the increase in fiscal year 2021 was 

due to: 

• Higher level of premium caused by higher crop prices 

• Higher participation in livestock products and rainfall index plans 

2021 2020

Liability for Unearned Insurance Premiums $ 1,189 $ 750
USDA | 2021 Agency Financial Report 153 

Underwriting Gain/Loss 

Underwriting gain/loss is the AIPs portion of earnings or losses on the insurance book of business 

due from or to FCIC. A periodic settlement, as stipulated in the SRA, is calculated where results 

of business written by AIPs are determined and an experience-rated gain or loss on business 

ceded from AIPs is computed. Payments due to AIPs for a net gain are paid in the second fiscal 

year following the reinsurance year. Underwriting losses are paid to FCIC periodically. 

Underwriting Gain 2021 2020

Current Year Estimated Gains $ 1,587 $ 1,525 

Actual Underwriting Gains 1,457 533

Total Underwriting Gain Liability $ 3,044 $ 2,058 

At the end of fiscal year 2021, the underwriting gain liability includes amounts for reinsurance 

years 2020 and 2021. The reinsurance year 2021 estimated underwriting gain of $1,587 million 

was based on a loss ratio of 0.95. The actual reinsurance year 2020 Underwriting Gain is 

$1,457 million and will be paid in fiscal year 2022. The actual loss ratio for reinsurance year 

2020 is 0.85. 

The underwriting gain liability for fiscal year 2020 includes amounts for reinsurance year 2019 

and 2020. The reinsurance year 2020 estimated underwriting gain was $1,525 million and the 

actual loss ratio was 0.81. The actual reinsurance year 2019 underwriting gain was $533 million, 

paid in fiscal year 2021, and based on a loss ratio of 1.02 
154 Section II | Financial Information 

NOTE 30: COVID-19 Activity 

The tables below summarize supplemental funding for COVID-19 and its financial statement impact. 

FY 2021

Account Name 

Treasury 

Account 

Symbol Purpose 

Unobligated 

Balances from 

Prior Year

Total 

Supplemental 

Current Year 

Total 

Obligations

Amounts 

Remaining to 

be Obligated

Total 

Outlays 

Farm Service Agency / Commodity Credit Corporation (CCC) - Assistance for Socially 

Disadvantaged Farmers and Ranchers 12X0172 American Rescue Plan Act $ - $ 1,960 $ 1,960 $ - $ 1 

CCC- Food for Peace Title II Grants (Foreign Agricultural Service) 121/22278 American Rescue Plan Act - 800 648 152 209 

FNS-Supplemental Nutrition Assistance Program (SNAP) 120/13505 Families First Coronavirus Response Act - - - - 2 

FNS-SNAP 120/13505 CARES Act 60 - 55 5 51 

FNS-SNAP 1203505 Families First Coronavirus Response Act 1,082 3,700 2,928 1,854 2,519 

FNS-SNAP 1213505 Consolidated Appropriations Act, 2021 - 60,866 47,560 13,306 46,965 

FNS-SNAP 12X3505 Consolidated Appropriations Act, 2021 - 5 - 5 - 

FNS-SNAP 121/33505 American Rescue Plan Act - 1,150 241 909 43 

FNS-SNAP 121/63505 American Rescue Plan Act - 25 - 25 - 

FNS-SNAP 121/73505 American Rescue Plan Act - 1,000 966 34 176 

FNS-Commodity Assistance Program (CAP) 120/13507 Families First Coronavirus Response Act 186 12 196 2 273 

FNS-CAP 120/13507 CARES Act 59 25 81 3 261 

FNS-CAP 121/23507 American Rescue Plan Act - 37 37 - 14 

FNS-CAP 1213507 Consolidated Appropriations Act, 2021 - 413 412 1 138 

FNS-Special Supplemental Nutrition Program for Women, Infants and Children (WIC) 120/13510 Families First Coronavirus Response Act 500 - 500 - 500 

FNS-WIC 121/23510 American Rescue Plan Act - 490 490 - 115 

FNS-WIC 121/43510 American Rescue Plan Act - 390 - 390 - 

FNS-Child Nutrition Programs (CN) 120/13539 CARES Act 1,762 554 2,316 - 3,235 

FNS-CN 1213539 Consolidated Appropriations Act, 2021 - 1,800 1,477 323 729 

FSIS-Food Safety and Inspection Service 120/13700 CARES Act 16 2 17 1 20 

AMS- Marketing Services 120/12500 CARES Act 32 - 32 - 33 

AMS - Marketing Services 12X2500 Consolidated Appropriations Act, 2021 - 522 7 515 2 

AMS - Payments to States and Possessions 12X2501 Consolidated Appropriations Act, 2021 - 100 3 97 1 

APHIS- Salaries and Expenses 121/21600 Consolidated Appropriations Act, 2021 - 102 - 102 - 

APHIS- Salaries and Expenses 12X1600 American Rescue Plan Act - 300 - 300 - 

Forest Service-Capital Improvement and Maintenance 120/11103 CARES Act 18 - 18 - 9 

Forest Service-Forest and Rangeland Research 120/11104 CARES Act 3 - 3 - 1 

Forest Service-National Forest System 120/11106 CARES Act 18 - 17 1 17 

Forest Service-Wildland Fire Management 120/11115 CARES Act 2 - 2 - 2 

Rural Development- Distance Learning, Telemedicine, and Broadband Program 12X1232 CARES Act 24 - 24 - - 

Rural Development-Distance Learning, Telemedicine, and Broadband Program 120/11232 CARES Act 12 - 7 5 - 

Rural Development-Rural Business Program Account 120/11902 CARES Act 13 - 13 - 16 

Rural Development- Rental Assistance Program 121/20137 American Rescue Plan Act - 100 100 - 17 

Rural Development- Rural Community Facilities Program Account 121/31951 American Rescue Plan Act - 500 25 475 25 

Rural Development Rural Housing Insurance Fund Program Account 121/32081 American Rescue Plan Act - 39 1 38 1 

Rural Development Rural Cooperative Development Grants 12X1900 Consolidated Appropriations Act, 2021 - 38 35 3 3 

NIFA - Farming Opportunities Training and Outreach Program; Farm Stress Program; 

Gus Schumacher Nutrition Incentive Program 12X0502 Consolidated Appropriations Act, 2021 - 140 123 17 1 

FAS- Salaries and Expenses 120/12900 CARES Act 2 - 1 1 1 

Office of the Secretary 1200115 Families First Coronavirus Response Act 93 32 29 96 1,127 

Office of the Secretary 12X0115 CARES Act 16,479 201 12,794 3,886 14,380 

Office of the Secretary 12X0115 CARES Act and Consolidated Appropriations Act, 2021 - 11,225 7,927 3,298 7,587 

Office of the Secretary 12X0115 American Rescue Plan Act - 4,658 2 4,656 - 

Office of Inspector General 121/20900 American Rescue Plan Act - 3 2 1 2 

Total $ 20,361 $ 91,189 $ 81,049 $ 30,501 $ 78,476 
USDA | 2021 Agency Financial Report 155 

FY 2021 

Account Name 

Farm Service Agency / 

Commodity Credit Corporation 

(CCC) - Assistance for Socially 

Disadvantaged Farmers and 

Ranchers 

CCC- Food for 

Peace Title II 

Grants (Foreign 

Agricultural 

Service) 

FNSSupplemental 

Nutrition 

Assistance 

Program (SNAP) FNS-SNAP FNS-SNAP FNS-SNAP FNS-SNAP FNS-SNAP 

Treasury Account Symbol 12X0172 121/22278 120/13505 120/13505 1203505 1213505 12X3505 121/33505 

Purpose 

American Rescue Plan Act 

American Rescue 

Plan Act 

Families First 

Coronavirus 

Response Act CARES Act 

Families First 

Coronavirus 

Response Act 

Consolidated 

Appropriations 

Act, 2021 

Consolidated 

Appropriations 

Act, 2021 

American Rescue 

Plan Act 

BALANCE SHEET 

Intragovernmental: 

Fund Balance with Treasury (Note 3) $ 1,959 $ 591 $ 1 $ 71 $ 1,855 $ 13,902 $ 5 $ 1,107 

Total Intragovernmental Assets 1,959 591 1 71 1,855 13,902 5 1,107 

Accounts Receivable, Net (Note 6) - - - - - - - - 

Inventory and Related Property, Net (Note 8) - 14 - - - - - - 

Advances and Prepayments - - - - - - - - 

Total Assets 1,959 605 1 71 1,855 13,902 5 1,107 

Intragovernmental: 

Accounts Payable (Note 14) - - - - - - - - 

Debt (Note 12) - - - - - - - - 

Advances from Others and Deferred Revenue - - - - - - - - 

Other Liabilities (Note 14) - - - - - - - - 

Total Intragovernmental Liabilities - - - - - - - - 

Accounts Payable - 50 - - - - - - 

Benefits Due and Payable - - 1 50 - 474 - 198 

Other Liabilities (Note 14, 15 & 16) 1,959 58 - 3 - 122 - - 

Total Liabilities 1,959 108 1 53 - 596 - 198 

Unexpended Appropriations - 483 - 18 1,855 13,306 5 909 

Cumulative Results of Operations - 14 - - - - - - 

Total Liabilities and Net Position 1,959 605 1 71 1,855 13,902 5 1,107 

STATEMENT OF NET COST 

Gross Program Costs 1,960 303 - 42 (773) 47,560 - 241 

Net Cost of Operations (Note 18) 1,960 303 - 42 (773) 47,560 - 241 

STATEMENT OF CHANGES IN NET POSITION 

Unexpended Appropriations: 

Beginning Balance - - - 60 1,082 - - - 

Appropriations Received 5,050 800 - - - 60,866 5 1,150 

Appropriations Transferred in/out - - - - - - - - 

Other Adjustments (3,090) - - - - - - - 

Appropriations Used (1,960) (317) - (42) 773 (47,560) - (241)

Net Change in Unexpended Appropriations - 483 - (42) 773 13,306 5 909 

Total Unexpended Appropriations Ending Balance - 483 - 18 1,855 13,306 5 909 

Cumulative Results of Operations: 

Beginning Balance - - - - - - - - 

Appropriations Used 1,960 317 - 42 (773) 47,560 - 241 

Net Cost of Operations (1,960) (303) - (42) 773 (47,560) - (241)

Net Change and Cumulative Results of Operations - 14 - - - - - - 

Cumulative Results of Operations - Ending Balance - 14 - - - - - - 

Net Position End of Period $ - $ 497 $ - $ 18 $ 1,855 $ 13,306 $ 5 $ 909 
156 Section II | Financial Information 

FY 2021 Continued 

Account Name 

FNS-SNAP FNS-SNAP 

FNS-Commodity 

Assistance 

Program (CAP) FNS-CAP FNS-CAP FNS-CAP 

FNS-Special Supplemental 

Nutrition Program for 

Women, Infants and 

Children (WIC) FNS-WIC 

Treasury Account Symbol 121/63505 121/73505 120/13507 120/13507 121/23507 1213507 120/13510 121/23510 

Purpose American Rescue 

Plan Act 

American Rescue 

Plan Act 

Families First 

Coronavirus 

Response Act CARES Act 

American Rescue 

Plan Act 

Consolidated 

Appropriations 

Act, 2021 

Families First Coronavirus 

Response Act

American Rescue 

Plan Act 

BALANCE SHEET 

Intragovernmental: 

Fund Balance with Treasury (Note 3) $ 25 $ 824 $ 31 $ 27 $ 23 $ 275 $ - $ 375 

Total Intragovernmental Assets 25 824 31 27 23 275 - 375 

Accounts Receivable, Net (Note 6) - - - - - - - - 

Inventory and Related Property, Net (Note 8) - - - - - - - - 

Advances and Prepayments - - - - - - - - 

Total Assets 25 824 31 27 23 275 - 375 

Intragovernmental: 

Accounts Payable (Note 14) - - - - - - - - 

Debt (Note 12) - - - - - - - - 

Advances from Others and Deferred Revenue - - - - - - - - 

Other Liabilities (Note 14) - - - - - - - - 

Total Intragovernmental Liabilities - - - - - - - - 

Accounts Payable - - 1 - 1 4 - - 

Benefits Due and Payable - 790 - - 1 - - - 

Other Liabilities (Note 14, 15 & 16) - - 7 9 - 36 - 375 

Total Liabilities - 790 8 9 2 40 - 375 

Unexpended Appropriations 25 34 23 18 21 235 - - 

Cumulative Results of Operations - - - - - - - - 

Total Liabilities and Net Position 25 824 31 27 23 275 - 375 

STATEMENT OF NET COST 

Gross Program Costs - 966 225 202 16 178 500 490 

Net Cost of Operations (Note 18) - 966 225 202 16 178 500 490 

STATEMENT OF CHANGES IN NET POSITION 

Unexpended Appropriations: 

Beginning Balance - - 248 220 - - 500 - 

Appropriations Received 25 1,000 - - 37 413 - 490 

Appropriations Transferred in/out - - - - - - - - 

Other Adjustments - - - - - - - - 

Appropriations Used - (966) (225) (202) (16) (178) (500) (490)

Net Change in Unexpended Appropriations 25 34 (225) (202) 21 235 (500) - 

Total Unexpended Appropriations Ending Balance 25 34 23 18 21 235 - - 

Cumulative Results of Operations: 

Beginning Balance - - - - - - - - 

Appropriations Used - 966 225 202 16 178 500 490 

Net Cost of Operations - (966) (225) (202) (16) (178) (500) (490)

Net Change and Cumulative Results of Operations - - - - - - - - 

Cumulative Results of Operations - Ending Balance - - - - - - - - 

Net Position End of Period $ 25 $ 34 $ 23 $ 18 $ 21 $ 235 $ - $ - 
USDA | 2021 Agency Financial Report 157 

FY 2021 Continued 

Account Name 

FNS-WIC 

FNS-Child 

Nutrition 

Programs (CN) FNS-CN

FSIS-Food Safety 

and Inspection 

Service 

AMS-Marketing 

Services 

AMS-Marketing 

Services 

AMS-Payments to 

States and 

Possessions 

APHIS- Salaries 

and Expenses 

Treasury Account Symbol 121/43510 120/13539 1213539 120/13700 120/12500 12X2500 12X2501 121/21600 

Purpose American Rescue 

Plan Act CARES Act 

Consolidated 

Appropriations 

Act, 2021 CARES Act CARES Act 

Consolidated 

Appropriations 

Act, 2021 

Consolidated 

Appropriations 

Act, 2021 

Consolidated 

Appropriations 

Act, 2021 

BALANCE SHEET 

Intragovernmental: 

Fund Balance with Treasury (Note 3) $ 390 $ 55 $ 1,071 $ 1 $ - $ 520 $ 99 $ 102 

Total Intragovernmental Assets 390 55 1,071 1 - 520 99 102 

Accounts Receivable, Net (Note 6) - - - - - - - - 

Inventory and Related Property, Net (Note 8) - - - - - - - - 

Advances and Prepayments - - - - - - - - 

Total Assets 390 55 1,071 1 - 520 99 102 

Intragovernmental: 

Accounts Payable (Note 14) - - - - - - - - 

Debt (Note 12) - - - - - - - - 

Advances from Others and Deferred Revenue - - - - - - - - 

Other Liabilities (Note 14) - - - - - - - - 

Total Intragovernmental Liabilities - - - - - - - - 

Accounts Payable - - - - - - - - 

Benefits Due and Payable - 55 - - - - - - 

Other Liabilities (Note 14, 15 & 16) - - 748 - - - - - 

Total Liabilities - 55 748 - - - - - 

Unexpended Appropriations 390 - 323 1 - 520 99 102 

Cumulative Results of Operations - - - - - - - - 

Total Liabilities and Net Position 390 55 1,071 1 - 520 99 102 

STATEMENT OF NET COST 

Gross Program Costs - 1,761 1,477 19 32 2 1 - 

Net Cost of Operations (Note 18) - 1,761 1,477 19 32 2 1 - 

STATEMENT OF CHANGES IN NET POSITION 

Unexpended Appropriations: 

Beginning Balance - 1,761 - 20 32 - - - 

Appropriations Received 390 - 1,800 - - 522 100 635 

Appropriations Transferred in/out - - - - - - - (533)

Other Adjustments - - - - - - - - 

Appropriations Used - (1,761) (1,477) (19) (32) (2) (1) - 

Net Change in Unexpended Appropriations 390 (1,761) 323 (19) (32) 520 99 102 

Total Unexpended Appropriations Ending Balance 390 - 323 1 - 520 99 102 

Cumulative Results of Operations: 

Beginning Balance - - - - - - - - 

Appropriations Used - 1,761 1,477 19 32 2 1 - 

Net Cost of Operations - (1,761) (1,477) (19) (32) (2) (1) - 

Net Change and Cumulative Results of Operations - - - - - - - - 

Cumulative Results of Operations - Ending Balance - - - - - - - - 

Net Position End of Period $ 390 $ - $ 323 $ 1 $ - $ 520 $ 99 $ 102 
158 Section II | Financial Information 

FY 2021 Continued 

Account Name APHIS- Salaries 

and Expenses 

Forest ServiceCapital 

Improvement and 

Maintenance 

Forest ServiceForest and 

Rangeland 

Research 

Forest ServiceNational Forest 

System 

Forest ServiceWildland Fire 

Management 

Rural DevelopmentDistance Learning, 

Telemedicine, and 

Broadband Program 

Rural DevelopmentDistance Learning, 

Telemedicine, and 

Broadband Program 

Rural 

DevelopmentRural Business 

Program Account 

Treasury Account Symbol 12X1600 120/11103 120/11104 120/11106 120/11115 12X1232 120/11232 120/11902 

Purpose 

American Rescue 

Plan Act CARES Act CARES Act CARES Act CARES Act CARES Act CARES Act CARES Act 

BALANCE SHEET 

Intragovernmental: 

Fund Balance with Treasury (Note 3) $ 300 $ 16 $ 2 $ 10 $ 2 $ 24 $ 97 $ 3 

Total Intragovernmental Assets 300 16 2 10 2 24 97 3 

Accounts Receivable, Net (Note 6) - - - - - - - - 

Inventory and Related Property, Net (Note 8) - - - - - - - - 

Advances and Prepayments - - - - - - - - 

Total Assets 300 16 2 10 2 24 97 3 

Intragovernmental: 

Accounts Payable (Note 14) - - - - - - - - 

Debt (Note 12) - - - - - - - - 

Advances from Others and Deferred Revenue - - - - - - - - 

Other Liabilities (Note 14) - - - - - - - - 

Total Intragovernmental Liabilities - - - - - - - - 

Accounts Payable - - - - - - - - 

Benefits Due and Payable - - - - - - - - 

Other Liabilities (Note 14, 15 & 16) - - - - - - - - 

Total Liabilities - - - - - - - - 

Unexpended Appropriations 300 16 2 10 2 24 97 3 

Cumulative Results of Operations - - - - - - - - 

Total Liabilities and Net Position 300 16 2 10 2 24 97 3 

STATEMENT OF NET COST 

Gross Program Costs - 7 1 17 2 - - 16 

Net Cost of Operations (Note 18) - 7 1 17 2 - - 16 

STATEMENT OF CHANGES IN NET POSITION 

Unexpended Appropriations: 

Beginning Balance - 23 3 27 4 24 97 19 

Appropriations Received 300 - - - - - - - 

Appropriations Transferred in/out - - - - - - - - 

Other Adjustments - - - - - - - - 

Appropriations Used - (7) (1) (17) (2) - - (16)

Net Change in Unexpended Appropriations 300 (7) (1) (17) (2) - - (16) 

Total Unexpended Appropriations Ending Balance 300 16 2 10 2 24 97 3 

Cumulative Results of Operations: 

Beginning Balance - - - - - - - - 

Appropriations Used - 7 1 17 2 - - 16 

Net Cost of Operations - (7) (1) (17) (2) - - (16)

Net Change and Cumulative Results of Operations - - - - - - - - 

Cumulative Results of Operations - Ending Balance - - - - - - - - 

Net Position End of Period $ 300 $ 16 $ 2 $ 10 $ 2 $ 24 $ 97 $ 3 
USDA | 2021 Agency Financial Report 159 

FY 2021 Continued 

Account Name Rural 

DevelopmentRental Assistance 

Program 

Rural 

DevelopmentRural Community 

Faculties Program 

Account 

Rural Development 

Rural Housing 

Insurance Fund 

Program Account 

Rural Development 

Rural Cooperative 

Development 

Grants

NIFA-Farming 

Opportunities Training 

and Outreach Program; 

Farm Stress Program; Gus 

Schumacher Nutrition 

Incentive Program

FAS-Salaries 

and Expenses 

Office of the 

Secretary 

Office of the 

Secretary 

Treasury Account Symbol 121/20137 121/31951 121/32081 12X1900 12X0502 120/12900 1200115 12X0115 

Purpose American Rescue 

Plan Act 

American Rescue 

Plan Act 

American Rescue 

Plan Act 

Consolidated 

Appropriations 

Act, 2021 

Consolidated 

Appropriations Act, 2021 CARES Act 

Families First 

Coronavirus 

Response Act CARES Act 

BALANCE SHEET 

Intragovernmental: 

Fund Balance with Treasury (Note 3) $ 83 $ 475 $ 38 $ 35 $ 140 $ 2 $ 409 $ 3,931 

Total Intragovernmental Assets 83 475 38 35 140 2 409 3,931 

Accounts Receivable, Net (Note 6) - - - - - - - 29 

Inventory and Related Property, Net (Note 8) - - - - - - - - 

Advances and Prepayments - - - - - - - 15 

Total Assets 83 475 38 35 140 2 409 3,975 

Intragovernmental: 

Accounts Payable (Note 14) - - - - - - - - 

Debt (Note 12) - - - - - - - - 

Advances from Others and Deferred Revenue - - - - - - - - 

Other Liabilities (Note 14) - - - - - - - - 

Total Intragovernmental Liabilities - - - - - - - - 

Accounts Payable - - - - - - (1) 28 

Benefits Due and Payable - - - - - - - - 

Other Liabilities (Note 14, 15 & 16) - - - - - - - - 

Total Liabilities - - - - - - (1) 28 

Unexpended Appropriations 83 475 38 35 140 2 410 2,383 

Cumulative Results of Operations - - - - - - - 1,564 

Total Liabilities and Net Position 83 475 38 35 140 2 409 3,975 

STATEMENT OF NET COST 

Gross Program Costs 17 25 1 3 - 1 1,009 12,809 

Net Cost of Operations (Note 18) 17 25 1 3 - 1 1,009 12,809 

STATEMENT OF CHANGES IN NET POSITION 

Unexpended Appropriations: 

Beginning Balance - - - - - 3 1,419 4,217 

Appropriations Received 100 500 39 38 141 - - - 

Appropriations Transferred in/out - - - - - - - (999) 

Other Adjustments - - - - - - - - 

Appropriations Used (17) (25) (1) (3) (1) (1) (1,009) (835)

Net Change in Unexpended Appropriations 83 475 38 35 140 (1) (1,009) (1,834) 

Total Unexpended Appropriations Ending Balance 83 475 38 35 140 2 410 2,383 

Cumulative Results of Operations: 

Beginning Balance - - - - - - - 13,538 

Appropriations Used 17 25 1 3 - 1 1,009 835 

Net Cost of Operations (17) (25) (1) (3) - (1) (1,009) (12,809)

Net Change and Cumulative Results of Operations - - - - - - - (11,974) 

Cumulative Results of Operations - Ending Balance - - - - - - - 1,564 

Net Position End of Period $ 83 $ 475 $ 38 $ 35 $ 140 $ 2 $ 410 $ 3,947 
160 Section II | Financial Information 

FY 2021 Continued 

Account Name Office of the 

Secretary 

Office of the 

Secretary 

Office of Inspector 

General 

Treasury Account Symbol 

12X0115 12X0115 121/20900 

Purpose CARES Act and 

Consolidated 

Appropriations 

Act, 2021 

American Rescue 

Plan Act 

American Rescue 

Plan Act Total 

BALANCE SHEET 

Intragovernmental: 

Fund Balance with Treasury (Note 3) $ 3,638 $ 4,657 $ - $ 37,171 

Total Intragovernmental Assets 3,638 4,657 - 37,171 

Accounts Receivable, Net (Note 6) - - - 29 

Inventory and Related Property, Net (Note 8) - - - 14 

Advances and Prepayments - - - 15 

Total Assets 3,638 4,657 - 37,229 

Intragovernmental: 

Accounts Payable (Note 14) - - - - 

Debt (Note 12) - - - - 

Advances from Others and Deferred Revenue - - - - 

Other Liabilities (Note 14) - - - - 

Total Intragovernmental Liabilities - - - - 

Accounts Payable 5 - - 88 

Benefits Due and Payable - - - 1,569 

Other Liabilities (Note 14, 15 & 16) 281 - - 3,598 

Total Liabilities 286 - - 5,255 

Unexpended Appropriations 3,352 4,657 - 30,396 

Cumulative Results of Operations - - - 1,578 

Total Liabilities and Net Position 3,638 4,657 - 37,229 

STATEMENT OF NET COST 

Gross Program Costs 7,873 - 2 76,985 

Net Cost of Operations (Note 18) 7,873 - 2 76,985 

STATEMENT OF CHANGES IN NET POSITION 

Unexpended Appropriations: 

Beginning Balance - - - 9,759 

Appropriations Received 11,225 4,657 2 90,285 

Appropriations Transferred in/out - - - (1,532)

Other Adjustments - - - (3,090)

Appropriations Used (7,873) - (2) (65,026)

Net Change in Unexpended Appropriations 3,352 4,657 - 20,637 

Total Unexpended Appropriations Ending Balance 3,352 4,657 - 30,396 

Cumulative Results of Operations: 

Beginning Balance - - - 13,538 

Appropriations Used 7,873 - 2 65,025 

Net Cost of Operations (7,873) - (2) (76,985)

Net Change and Cumulative Results of Operations - - - (11,960)

Cumulative Results of Operations - Ending Balance - - - 1,578 

Net Position End of Period $ 3,352 $ 4,657 $ - $ 31,974 
USDA | 2021 Agency Financial Report 161 

FY 2020

Account Name 

Treasury 

Account Symbol Purpose 

Total 

Supplemental 

Total 

Obligations 

Amounts 

Remaining to 

be Obligated Total Outlays 

FSA- Processing, Research and Marketing, Office of the Secretary 12X0115 CARES Act $ 30,000 $ 13,521 $ 16,479 $ 10,689 

FSA-Salaries and Expenses 120/10600 CARES Act 3 3 - 3 

FNS-Supplemental Nutrition Assistance Program (SNAP) 120/13505 Families First Coronavirus Response Act 100 100 - 96 

FNS-SNAP 120/13505 CARES Act 15,810 15,750 60 15,688 

FNS-SNAP 1203505 Families First Coronavirus Response Act 12,800 11,718 1,082 8,425 

FNS-Commodity Assistance Program (CAP) 120/13507 Families First Coronavirus Response Act 400 214 186 96 

FNS-CAP 120/13507 CARES Act 450 391 59 161 

FNS-Special Supplemental Nutrition Program for Women, Infants and Children (WIC) 120/13510 Families First Coronavirus Response Act 500 - 500 - 

FNS-Child Nutrition Programs (CN) 120/13539 CARES Act 8,800 7,039 1,761 5,511 

FSIS-Food Safety and Inspection Service 120/13700 CARES Act 33 17 16 12 

AMS- Processing, Research and Marketing, Office of the Secretary 1200115 Families First Coronavirus Response Act 4,000 3,907 93 2,464 

AMS- Marketing Services 120/12500 CARES Act 45 13 32 12 

APHIS- Salaries and Expenses 120/11600 CARES Act 55 55 - 55 

Forest Service-Capital Improvement and Maintenance 120/11103 CARES Act 27 8 19 2 

Forest Service-Forest and Rangeland Research 120/11104 CARES Act 3 - 3 - 

Forest Service-National Forest System 120/11106 CARES Act 34 16 18 7 

Forest Service-Wildland Fire Management 120/11115 CARES Act 7 5 2 4 

Rural Development- Distance Learning, Telemedicine, and Broadband Program 12X1232 CARES Act 25 1 24 1 

Rural Development-Distance Learning, Telemedicine, and Broadband Program 120/11232 CARES Act 100 88 12 3 

Rural Development-Rural Business Program Account 120/11902 CARES Act 21 7 14 2 

FAS- Salaries and Expenses 120/12900 CARES Act 4 2 2 2 

OIG-Office of Inspector General 120/10900 CARES Act 1 1 - 1 

Total $ 73,218 $ 52,856 $ 20,362 $ 43,234 
162 Section II | Financial Information 

FY 2020 

ACCOUNT NAME 

FSA- Processing, 

Research and 

Marketing, Office 

of the Secretary 

FSA- Salaries and 

Expenses 

FNS-Supplemental 

Nutrition 

Assistance 

Program (SNAP) FNS-SNAP FNS-SNAP 

FNS-Commodity 

Assistance 

Program (CAP) FNS-CAP 

FNS-Special 

Supplemental 

Nutrition Program 

for Women, Infants 

and Children (WIC) 

TREASURY ACCOUNT SYMBOL 12X0115 120/10600 120/13505 120/13505 1203505 120/13507 120/13507 120/13510 

PURPOSE 

CARES Act CARES Act 

Families First 

Coronavirus 

Response Act CARES Act 

Families First 

Coronavirus 

Response Act 

Families First 

Coronavirus 

Response Act CARES Act 

Families First 

Coronavirus 

Response Act 

BALANCE SHEET 

Intragovernmental: 

Fund Balance with Treasury $ 19,312 $ - $ 4 $ 122 $ 4,375 $ 304 $ 289 $ 500 

Total Intragovernmental Assets 19,312 - 4 122 4,375 304 289 500 

Accounts Receivable, Net 3 - - - - - - - 

Total Assets 19,315 - 4 122 4,375 304 289 500 

Accounts Payable 1,560 - - - - 2 4 - 

Benefits Due and Payable - - 4 62 3,293 - - - 

Other Liabilities - - - - - 54 65 - 

Total liabilities 1,560 - 4 62 3,293 56 69 - 

Unexpended Appropriations 4,217 - - 60 1,082 248 220 500 

Cumulative Results of Operations 13,538 - - - - - - - 

Total Liabilities and Net Position 19,315 - 4 122 4,375 304 289 500 

STATEMENT OF NET COST 

Gross Program Costs 12,245 3 100 15,750 11,718 152 230 - 

Net Cost of Operations 12,245 3 100 15,750 11,718 152 230 - 

STATEMENT OF CHANGES IN NET POSITION 

Net Position Beginning of Period - - - - - - - - 

Other Financing Sources 30,000 3 100 15,810 12,800 400 450 500 

Net Cost of Operations (12,245) (3) (100) (15,750) (11,718) (152) (230) - 

Change in Net Position 17,755 - - 60 1,082 248 220 500 

Net Position End of Period $ 17,755 $ - $ - $ 60 $ 1,082 $ 248 $ 220 $ 500 
USDA | 2021 Agency Financial Report 163 

FY 2020 continued 

ACCOUNT NAME FNS-Child Nutrition 

Programs (CN) 

FSIS-Food Safety 

and Inspection 

Service 

AMS-Processing, 

Research and 

Marketing, Office 

of the Secretary 

AMS-Marketing 

Services 

APHIS- Salaries and 

Expenses 

Forest ServiceCapital 

Improvement and 

Maintenance 

Forest ServiceForest and 

Rangeland 

Research 

Forest ServiceNational Forest 

System 

TREASURY ACCOUNT SYMBOL 120/13539 120/13700 1200115 120/12500 120/11600 120/11103 120/11104 120/11106 

PURPOSE 

CARES Act CARES Act 

Families First 

Coronavirus 

Response Act CARES Act CARES Act CARES Act CARES Act CARES Act 

BALANCE SHEET 

Intragovernmental: 

Fund Balance with Treasury $ 3,289 $ 21 $ 1,536 $ 33 $ - $ 24 $ 3 $ 27 

Total Intragovernmental Assets 3,289 21 1,536 33 - 24 3 27 

Accounts Receivable, Net - - - - - - - - 

Total Assets 3,289 21 1,536 33 - 24 3 27 

Accounts Payable - - 117 - - 2 - - 

Benefits Due and Payable 1,528 - - - - - - - 

Other Liabilities - 1 - - - - - - 

Total liabilities 1,528 1 117 - - 2 - - 

Unexpended Appropriations 1,761 20 1,419 33 - 22 3 27 

Cumulative Results of Operations - - - - - - - - 

Total Liabilities and Net Position 3,289 21 1,536 33 - 24 3 27 

STATEMENT OF NET COST 

Gross Program Costs 7,039 13 2,581 12 55 5 - 7 

Net Cost of Operations 7,039 13 2,581 12 55 5 - 7 

STATEMENT OF CHANGES IN NET POSITION 

Net Position Beginning of Period - - - - - - - - 

Other Financing Sources 8,800 33 4,000 45 55 27 3 34 

Net Cost of Operations (7,039) (13) (2,581) (12) (55) (5) - (7) 

Change in Net Position 1,761 20 1,419 33 - 22 3 27 

Net Position End of Period $ 1,761 $ 20 $ 1,419 $ 33 $ - $ 22 $ 3 $ 27 
164 Section II | Financial Information 

FY 2020 continued 

ACCOUNT NAME Forest ServiceWildland Fire 

Management 

Rural DevelopmentDistance Learning, 

Telemedicine, and 

Broadband Program 

Rural DevelopmentDistance Learning, 

Telemedicine, and 

Broadband Program 

Rural DevelopmentRural Business 

Program Account 

FAS-Salaries and 

Expenses 

OIG-Office of 

Inspector General Total 

TREASURY ACCOUNT SYMBOL 120/11115 12X1232 120/11232 120/11902 120/12900 120/10900 

PURPOSE CARES Act CARES Act CARES Act CARES Act CARES Act CARES Act 

BALANCE SHEET 

Intragovernmental: 

Fund Balance with Treasury $ 3 $ 24 $ 97 $ 19 $ 2 $ - $ 29,984 

Total Intragovernmental Assets 3 24 97 19 2 - 29,984 

Accounts Receivable, Net - - - - - - 3 

Total Assets 3 24 97 19 2 - 29,987 

Accounts Payable - - - - - - 1,685 

Benefits Due and Payable - - - - - - 4,887 

Other Liabilities - - - - - - 120 

Total liabilities - - - - - - 6,692 

Unexpended Appropriations 3 24 97 19 2 - 9,757 

Cumulative Results of Operations - - - - - - 13,538 

Total Liabilities and Net Position 3 24 97 19 2 - 29,987 

STATEMENT OF NET COST 

Gross Program Costs 4 1 3 2 2 1 49,923 

Net Cost of Operations 4 1 3 2 2 1 49,923 

STATEMENT OF CHANGES IN NET POSITION 

Net Position Beginning of Period - - - - - - - 

Other Financing Sources 7 25 100 21 4 1 73,218 

Net Cost of Operations (4) (1) (3) (2) (2) (1) (49,923) 

Change in Net Position 3 24 97 19 2 - 23,295 

Net Position End of Period $ 3 $ 24 $ 97 $ 19 $ 2 $ - $ 23,295 
USDA | 2021 Agency Financial Report 165 

RMA took numerous actions to provide relief in the face of the pandemic to ensure crop 

insurance continued to provide a farm safety net under such unprecedented times. RMA did not 

receive direct budgetary resources to respond to COVID 19 and most of the actions provided 

reporting flexibilities to AIP’s and producers. 

In FY 2021, RMA was assigned to administer the Pandemic Cover Crop Program (PCCP) as 

part of USDA’s Pandemic Assistance for Producers initiative, a bundle of programs to bring 

financial assistance to farmers, ranchers and producers who felt the impact of COVID-19 

market disruptions. 

In FY 2020, the most significant action involving financial resources was to allow additional 

time for policyholders to make payment of premium and administrative fee. The amount of this 

deferral was $2,500 million. 

NOTE 31: Subsequent Events 

Management is not aware of any events or transactions that have occurred subsequent to the 

balance sheet date, but prior to the issuance of the financial statements, that have a material effect 

on the financial statements and therefore require adjustment or disclosure in the statements.

NOTE 32: Reclassification of Balance Sheet, Statement of Net 

Cost, and Statement of Changes in Net Position For FR 

Compilation Process 

To prepare the Financial Report of the U.S. Government (FR), the Department of the Treasury 

requires agencies to submit an adjusted trial balance, which is a listing of amounts by U.S. 

Standard General Ledger account that appear in the financial statements. Treasury uses the trial 

balance information reported in the Governmentwide Treasury Account Symbol Adjusted Trial 

Balance System (GTAS) to develop a Reclassified Balance Sheet, Reclassified Statement of Net 

Cost, and a Reclassified Statement of Changes in Net Position for each agency, which are 

accessed using GTAS. 

Treasury eliminates all intragovernmental balances from the reclassified statements and 

aggregates lines with the same title to develop the FR statements. This note shows the USDA’s 

financial statements and the USDA’s reclassified statements prior to elimination of 

intragovernmental balances and prior to aggregation of repeated FR line items. 

A copy of the 2020 FR can be found here: https://www.fiscal.treasury.gov/reports-statements/

and a copy of the 2021 FR will be posted to this site as soon as it is released. 

The term “intragovernmental” is used in this note to refer to amounts that results from other 

components of the Federal Government. 
166 Section II | Financial Information

The term “non-Federal” is used in this note to refer to Federal Government amounts that result 

from transactions with non-Federal entities. These include transactions with individuals, 

businesses, non-profit entities, and State, local, and foreign governments.
USDA | 2021 Agency Financial Report 167 

Reclassification of Balance Sheet to Line Items Used for the Government-wide Balance Sheet as of September 30, 2021

FY2021 USDA Balance Sheet Line Items Used to Prepare FY 2021 Government-wide Balance Sheet 

Financial Statement Line Amounts 

Dedicated 

Collections 

All Other 

Amounts Eliminations Total Reclassified Financial Statement Line 

ASSETS (NOTE 2) 

Intragovernmental: 

Fund Balance with Treasury (Note 3) 237,610 3,591 234,019 - 237,610 Fund Balance with Treasury (Note 3) (RC 40) 

Investments (Note 5) 256 256 - - 256 Investments[, net] (Note 5) 

Accounts Receivable, Net (Note 6) 320 250 10,836 10,766 320 Accounts receivable[, net] (Note 6) 

Advances and Prepayments 42 - 85 43 42 Advances and prepayments (RC 23) 

Total Intragovernmental 238,228 4,097 244,940 10,809 238,228 Total Intra-governmental 

With the public: 

Cash and Other Monetary Assets (Note 4) 298 - 298 - 298 Cash and other monetary assets (Note 4) 

Accounts Receivable, Net (Note 6) 5,353 87 5,266 - 5,353 Accounts receivable[, net] (Notes 6 and 7) 

Loans Receivable, Net (Note 7) 113,450 - 113,450 - 113,450 Loans receivable, net (Note 8) 

Inventory and Related Property, Net (Note 8) 23 - 23 - 23 Inventory and related property, net (Note 9) 

General Property, Plan, and Equipment, Net (Note 9) 2,588 113 2,475 - 2,588 General property[, plant,] and equipment, net (Note 10) 

Advances and Prepayments 587 11 576 - 587 Advances and prepayments 

Investments (Note 5) 3 3 - - 3 Investments [,net] (Note 5) 

Total With the Public 122,302 214 122,088 - 122,302 Total other than intra-governmental/with the public 

Total Assets 360,530 4,311 367,028 10,809 360,530 Total assets 

Stewardship PP&E (Note 10) Stewardship PP&E (Note 11) 

LIABILITIES (NOTE 12) 

Intragovernmental: 

17 11,077 10,766 328 Accounts payable (Note 17) 

Accounts Payable (Note 14) 80 -11 -237 - (248) Reconciling Item- Accounts payable - Benefit program contributions payable (Note 15) (RC 21) 

Debt (Note 12) 132,821 - 132,821 - 132,821 Debt (Note 14) 

Advances from Others and Deferred Revenue 14 - 57 43 14 Advances from others and deferred revenue (RC 23) 

1 11,622 - 11,623 Other Liabilities (Notes 15 and 17) 

Other Liabilities (Note 14) 11,871 11 237 - 248 Reconciling Item - Accounts payable - Benefit program contributions payable (Note 15) 

(RC 21) 

Total Intragovernmental 144,786 18 155,577 10,809 144,786 Total Intra-governmental 

With the public: 

Accounts Payable 2,353 15 2,338 - 2,353 Accounts payable 

Federal Employee Benefits Payable 1,376 52 1,324 - 1,376 Federal employee [and veteran] benefits payable (Note 15) 

Environmental and Disposal Liabilities (Note 13) 258 - 258 - 258 Environmental and disposal liabilities (Note 16) 

Benefits Due and Payable 8,580 - 8,580 - 8,580 Benefits due and payable 

Loan Guarantee Liabilities (Note 7) (601) - -601 - (601) Loan guarantee liabilities (Note 8) 

Insurance and Guarantee Program Liabilities 14,226 - 14,226 - 14,226 Insurance and guarantee program liabilities 

Advances from Others and Deferred Revenue 122 80 42 - 122 Advances from others and deferred revenue 

Other Liabilities (Note 14, 15 & 16) 12,977 204 12,773 - 12,977 Other liabilities (Notes 17, 18, and 19) 

Total With the Public 39,291 351 38,940 - 39,291 Total other than intra-governmental/with the public 

Total Liabilities 184,077 369 194,517 10,809 184,077 Total liabilities 

Commitments and Contingencies (Note 16) Commitments and Contingencies (Note 19) 

Net Position: 

Unexpended Appropriations - Funds from Dedicated Collections (Note 17) 468 468 - - 468 Unexpended appropriations - Funds from Dedicated Collections (Note 20) 

Unexpended Appropriations - Funds from Other Than Dedicated Collections 127,658 - 127,658 - 127,658 Unexpended appropriations - Funds from other than Dedicated Collections 

Total Unexpended Appropriations (Combined) 128,126 468 127,658 - 128,126 Total Unexpended Appropriation (Combined or Consolidated) 

3,473 - 1,297 2,176 Cumulative results of operations - Funds from Dedicated Collections 

Cumulative Results of Operations - Funds from Dedicated Collections (Note 17) 3,473 - - -1,297 1,297 Reconciling Item - GTAS presents this line as a consolidated total 

 - 44,854 -1,297 46,151 Cumulative results of operations - Funds other than those from Dedicated Collections 

Cumulative Results of Operations - Funds from Other Than Dedicated Collections 44,854 - - 1,297 (1,297) Reconciling Item - GTAS presents this line as a consolidated total 

Total Cumulative Results of Operations (Combined) 48,327 3,473 44,854 - 48,327 Total Cumulative Results of Operations (Combined or Consolidated) 

Total Net Position 176,453 3,941 172,512 - 176,453 Total net position 

Total Liabilities and Net Position 360,530 4,310 367,029 10,809 360,530 Total liabilities and net position 
168 Section II | Financial Information 

Reclassification of Statement of Net Cost to Line Items Used for the Government-wide Statement of Net Cost for the Year Ending September 30, 2021

FY 2021 USDA SNC Line Items Used to Prepare FY 2021 Government-wide SNC 

Financial Statement Line Amounts 

Dedicated 

Collections 

All Other 

Amounts Eliminations Total Reclassified Financial Statement Line 

Gross Costs Gross Cost 

2,167 233,176 - 235,343 Non-federal gross cost 

Federal gross cost 

86 1,983 - 2,069 Benefit program costs (RC 26)/2 

63 3,405 2,501 967 Imputed costs (RC25)/2 

180 3,990 2,607 1,563 Buy/Sell Cost (RC24)/2 

 - 12 - 12 Purchase of assets (RC 24)/2 

 - 3,685 - 3,685 Borrowing and other interest expense (RC05)/2 

24 521 - 545 Other expenses (without reciprocals) (RC 29) 

 - -12 - (12) Reconciling Item - Purchase of assets 

353 13,584 5,108 8,829 Total federal gross cost 

Total Gross Costs 244,172 2,520 246,760 5,108 244,172 Department total gross cost 

Earned Revenue Earned revenue 

1,027 7,771 - 8,798 Non-federal earned revenue 

 - -4 - (4) Reconciling Item - Custodial revenue - Non-federal earned revenue 

1,027 7,767 - 8,794 Adjusted Non-federal earned revenue 

Federal earned revenue 

17 3,156 2,607 566 Buy/sell revenue (exchange) (RC24)/2 

 - 12 - 12 Purchase of assets offset (RC 24) / 2 

5 - - 5 Federal securities interest revenue including associated gains and losses (exchange) (RC 03)/2 

 - 561 - 561 Borrowing and other interest revenue (exchange) (RC 05)/2 

101 - - 101 Collections Transferred in to a TAS Other Than the General Fund of the U.S. Government - Exchange 

(RC 13) 

 - -12 - (12) Reconciling Item - Purchase of assets 

 - (1) - (1) Reconciling Item - Custodial revenue - Buy/sell revenue (exchange( (RC24)/2 

123 3,716 2,607 1,232 Total federal earned revenue 

Less: Total Earned Revenue 10,026 1,150 11,483 2,607 10,026 Department total earned revenue 

Net Cost of Operations (Note 18) 234,146 1,370 235,277 2,501 234,146 Net cost of operations 
USDA | 2021 Agency Financial Report 169 

Reclassification of Statement of Changes in Net Position to Line Items Used for Government-wide Statement of Operations and Changes in Net Position for the Year Ending September 30, 2021

FY 2021 USDA SCNP Line Items Used to Prepare FY 2021 Government-wide SCNP 

Financial Statement Line Amounts 

Dedicated 

Collections 

All Other 

Amounts Eliminations Total Reclassified Financial Statement Lines 

Unexpended Appropriations: 

Beginning Balances 82,942 191 82,751 - 82,942 Net position, beginning of period 

Appropriations Received 285,692 12 285,680 - 285,692 Appropriations Received as Adjusted (Rescissions and Other Adjustments) (RC 41)/1 

285 8,098 8,098 285 Non-expenditure transfers-in of unexpended appropriations and financing sources (RC 08) /1 

Appropriations transferred in/out (252) - 8,635 8,098 537 Non-expenditure transfers-out of unexpended appropriations and financing sources (RC 08) /1 

Other Adjustments (15,268) - (15,268) - (15,268) Appropriations Received as Adjusted (Rescissions and Other Adjustments) (RC 41)/1 

Appropriations Used (224,988) 20 224,968 - 224,988 Appropriations Used (RC 39) 

Net Change in Unexpended Appropriations 45,184 277 44,907 - 45,184 Net Change in Unexpended Appropriations 

Total Unexpended Appropriations: Ending Balance 128,126 468 127,658 - 128,126 Total Unexpended Appropriations 

Cumulative Results of Operations: 

Beginning Balances 34,098 3,284 30,815 - 34,099 Net position, beginning of period 

 - 212 - 212 Revenue and Other Financing Sources - Cancellations (RC 36) 

 - 26 - 26 Collections for Others Transferred to the General Fund of the U.S. Government (RC 44 ) 

Other Adjustments (233) - -5 - (5) Reconciling - Custodial Activity - Collections for others transferred to the General Fund of the 

U.S. Government (RC 44) 

Appropriations Used 224,988 20 224,968 - 224,988 Appropriations expended (RC 38)/1 

1 16 - 17 Other Taxes and Receipts 

Non-exchange Revenue 25,918 228 25,672 - 25,900 Collections transferred into a TAS Other Than the General Fund of the U.S. Government - 

Nonexchange (RC 15) 

Donations and Forfeitures of Cash and Cash Equivalents 1 1 - - 1 Other Taxes and Receipts 

22,915 76 22,773 218 Appropriation of unavailable special or trust fund receipts transfers-in (RC 07)/1 

76 22,697 22,773 0 Appropriation of unavailable special or trust fund receipts transfers-out (RC 07) /1 

13 60,366 60,365 14 Non-expenditure Transfers-In of Unexpended Appropriations and Financing Sources (RC 08)/1 

21,496 39,130 60,365 261 Non-expenditure Transfers-Out of Unexpended Appropriations and Financing Sources (RC 08)/1 

2 74 75 1 Expenditure transfers-in of financing sources (RC 09) /1 

 - 75 75 - Expenditure transfers-out of financing sources (RC 09) /1 

 - 885 885 - Non-expenditure transfer-in of financing sources - capital transfers (RC 11) 

13 872 885 - Non-expenditure transfers-out of financing sources - capital transfers (RC 11) 

 - 3,687 3,688 (1) Transfers-In Without Reimbursement (RC 18)/1 

Transfers in/out without Reimbursement (28) - 3,687 3,688 (1) Transfers-Out Without Reimbursement (RC 18)/1 

Imputed financing 966 63 3,404 2,501 966 Imputed Financing Sources (RC 25)/1 

(99) 193 - 94 Other Taxes and Receipts 

 - (121) - (121) Reconciling Item - Custodial Activity - Other taxes and receipts 

 - 4,215 - 4,215 Non-entity collections transferred to the General Fund of the U.S. Government (RC 44) 

 - (123) - (123) Reconciling Item - Custodial Revenue - Non-entity collections transferred to the General Fund of 

the U.S. Government (RC 44) 

 - -2 - (2) Accrual of Collections Yet to be Transferred to a TAS Other Than the General Fund of the U.S. 

Government - Nonexchange (RC 16) 

 - 2 - 2 Reconciling Item - Custodial Activity - Accrual of Collections Yet to be Transferred to a TAS Other 

Than the General Fund of the U.S. Government - Nonexchange (RC 16) 

Other (3,237) - -882 - (882) Accrual for non-entity amounts to be collected and transferred to the General Fund of the U.S. 

Government (RC 48) 

Net Cost of Operations (234,146) 1,370 235,277 2,501 234,146 Net Cost of Operations 

Net Change and Cumulative Results of Operations 14,229 189 14,039 - 14,228 Net Change 

Cumulative Results of Operations: Ending 48,327 3,473 44,854 - 48,327 Cumulative Results of Operations 

Net Position 176,453 3,941 172,512 - 176,453 Net Position 
170 Section II | Financial Information 

Required Supplementary Information 

Deferred Maintenance And Repairs (Unaudited) 

The Forest Service is steward to nearly 193 million acres of national forests and grasslands 

within the NFS. On these NFS lands, the agency manages major assets that are categorized as 

general PP&E, including nearly 40,000 administrative, recreation, and research buildings and 

approximately 30,000 recreational sites, such as campgrounds, picnic areas, trailheads, and 

interpretive sites. 

Across the NFS, the agency also manages over 370,000 miles of roads, of which 65,000 miles 

are for passenger vehicles; over 159,000 miles of trails for motorized and non-motorized use; 

nearly 13,400 road and trail bridges; and over 1,700 Forest Service owned and Special Use 

Permitted dam structures. 

ARS owns/manages approximately 15 million gross square feet of facility space in 

3,031 buildings on 403,798 acres of land. APHIS operates approximately 28 facilities, which 

includes 378 buildings, in the United States and 14 facilities/buildings internationally. 

The NRCS portfolio of owned assets encompasses 28 sites, including 12 parcels of owned land, 

223 buildings, and about 222 other structures. 

Deferred Maintenance & Repairs (DM&R) estimates include capitalized PP&E, non-capitalized 

heritage assets, and non-capitalized or fully depreciated PP&E. 

No DM&R is reported for stewardship land because land is considered to be in acceptable 

condition unless an environmental contamination or liability is identified and the land cannot be 

used for its intended purpose. Stewardship land easements are excluded from DM&R since 

ownership is retained by the landowner. 

Defining and Implementing Maintenance and Repairs Policies in Practice 

Policies for ranking and prioritizing DM&R activities for most assets, except roads, trails, and 

bridges, are based on condition surveys performed on a 5-year revolving schedule. The agency’s 

DM&R for NFS passenger car roads is determined every year from random sample surveys 

providing a moderate level of confidence in the accuracy of the data reported. DM&R is not 

reported for roads that are not part of the passenger-car system. Bridge class assessments occur 

on a 2-year or 4-year revolving schedule. To-date, surveys of all administrative buildings, dams, 

bridges, roads open to passenger cars, and recreation sites have been accomplished.

ARS, APHIS, and NRCS use similar condition surveys to estimate DM&R on all major classes 

of its PP&E and heritage assets. 
USDA | 2021 Agency Financial Report 171 

Ranking and Prioritizing Maintenance and Repairs Activities 

Maintenance and repair activities are prioritized based on condition surveys and ranked based on 

PP&E and heritage assets that pose serious threats to public health or safety, a natural resource, 

or the ability of the agency to implement its mission. 

Factors Considered in Setting Acceptable Condition 

The standards for acceptable operating condition for various classes of PP&E and heritage assets 

are as follows: 

Conditions of roads and bridges within the NFS road system are measured by various standards: 

• Federal Highway Administration regulations for the Federal Highway Safety Act. 

• Best management practices for the nonpoint source provisions of the Clean Water Act from 

U.S. Environmental Protection Agency and States. 

• Road management objectives developed through the National Forest Management Act forest 

planning process. 

• Forest Service directives—Forest Service Manual (FSM) 7730, Operation and Maintenance; 

Forest Service Handbook (FSH) 7709.56a, Road Preconstruction, and FSH 7709.56b, 

Transportation Structures Handbook. 

Dams in the NFS are managed according to FSM 7500, Water Storage and Transmission, and 

FSH 7509.11, Dams Management Handbook. The condition of a dam is acceptable when the 

dam meets current design standards and does not have any deficiencies that threaten the safety of 

the structure or public. For dams to be rated in acceptable condition, the agency needs to restore 

the dams to the original functional purpose, correct unsightly conditions, or prevent more costly 

repairs. 

Buildings in the NFS shall comply with the International Family of Building and Related Codes, 

the National Fire Protection Association Life Safety Code, the Forest Service Health and Safety 

Handbook, and the Occupational Safety Health Administration as determined by condition 

surveys and safety inspections. These requirements are found in FSM 7310, Buildings and 

Related Facilities. 

Recreation facilities in the NFS are located within recreation sites that range from highly 

developed sites to general forest areas such as campgrounds, trailheads, trails, water and 

wastewater systems, interpretive facilities, and visitor centers. Recreation sites are managed in 

accordance with Federal laws and regulations (Code of Federal Regulations [CFR] 36). 

Detailed management guidelines are contained in FSM 2330, Publicly Managed Recreation 

Opportunities, and forest- and regional-level user guides. Quality standards for developed 
172 Section II | Financial Information 

recreation sites in the NFS were established as Meaningful Measures for health and cleanliness, 

settings, safety and security, responsiveness, and the condition of the facility. 

Trails and trail bridges in the NFS are managed according to Federal law and regulations 

(CFR 36). More specific direction is contained in FSM 2350, Trail, River, and Similar 

Recreation Opportunities, and the FSH 2309.18, Trails Management Handbook. 

ARS, APHIS, and NRCS define acceptable condition in accordance with standards comparable 

to those used in private industry for buildings and other structures. 

Deferred Maintenance and Repair Costs 

Asset Category 

FY 2021 Ending 

Balance 

FY 2021 Beginning 

Balance 

FY 2020 Ending 

Balance 

FY 2020 Beginning 

Balance 

General PP&E $ 6,782 $ 6,343 $ 6,343 $ 5,663 

Heritage Assets 252 223 223 210 

Total $ 7,034 $ 6,566 $ 6,566 $ 5,873 

DM&R costs increased in FY 2021 across all categories within General PP&E except for roads. 

Roads DM&R is based on a small random sample that provides an estimate that can range within 

a statistical band. The difference reduction is within those bands. 

DM&R costs increased in FY 2020 mainly due to the estimate for passenger car roads within the 

NFS. The remaining increase is spread across all categories within General PP&E including 

bridges, buildings, dams, minor constructed features, trails, trail bridges, wastewater systems, 

and water systems.
USDA | 2021 Agency Financial Report 173 

Combining Statement of Budgetary Resources (Unaudited) 

FPAC 

Business 

Center FSA CCC RMA NRCS FNS FSIS AMS APHIS 

FY 2021 

Budgetary Budgetary 

NonBudgetary 

Credit 

Reform 

Financing 

Accounts Budgetary 

NonBudgetary 

Credit 

Reform 

Financing 

Accounts Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary 

Budgetary Resources: 

Unobligated Balance from Prior Year Budget Authority, 

Net (Discretionary and Mandatory) $ 24 $ 21,176 $ 330 $ 792 $ 117 $ 605 $ 6,621 $ 55,563 $ 132 $ 915 $ 649 

Appropriations (Discretionary and Mandatory) 292 10,848 6 2,686 - 7,838 4,358 211,887 1,208 6,183 2,417 

Borrowing Authority (Discretionary and Mandatory) - - 3,515 13,207 537 - - - - - - 

Spending Authority from Offsetting Collections 

(Discretionary and Mandatory) 10 305 2,931 77 117 4,286 68 70 246 191 257 

Total Budgetary Resources 326 32,329 6,782 16,762 771 12,729 11,047 267,520 1,586 7,289 3,323 

Status of Budgetary Resources: 

New Obligations and Upward Adjustments (Total) 309 25,398 4,110 15,913 581 12,120 4,850 188,200 1,365 3,965 1,721 

Unobligated Balance, End of Year: 

Apportioned, Unexpired Accounts 9 5,616 2,396 447 19 599 3,534 44,938 206 2,829 1,476 

Exempt from Apportionment, Unexpired Accounts - - - - - - - - - 85 - 

Unapportioned, Unexpired Accounts - 1,251 276 401 171 5 8 3,816 - 293 105 

Unexpired Unobligated Balance, End of Year 9 6,867 2,672 848 190 604 3,542 48,754 206 3,207 1,581 

Expired Unobligated Balance, End of Year 8 64 - 1 - 5 2,655 30,566 15 117 21 

Unobligated Balance, End of Year (Total) 17 6,931 2,672 849 190 609 6,197 79,320 221 3,324 1,602 

Total Budgetary Resources 326 32,329 6,782 16,762 771 12,729 11,047 267,520 1,586 7,289 3,323 

Outlays, Net, and Disbursements, Net: 

Outlays, Net (Total) (Discretionary and Mandatory) 307 24,095 12,464 6,800 4,325 166,562 1,088 5,024 1,429 

Distributed Offsetting Receipts (-) - (418) (63) - (1) (4) (18) (199) (9) 

Agency Outlays, Net (Discretionary and Mandatory) $ 307 $ 23,677 $ 12,401 $ 6,800 $ 4,324 $ 166,558 $ 1,070 $ 4,825 $ 1,420 

Disbursements, Net (Total) (Mandatory) $ 1,079 $ 93 
174 Section II | Financial Information 

FS RD ARS NASS NIFA ERS FAS Staff Offices Total 

FY 2021 

Budgetary Budgetary 

NonBudgetary 

Credit 

Reform 

Financing 

Accounts Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary 

NonBudgetary 

Credit 

Reform 

Financing 

Accounts 

Budgetary Resources: 

Unobligated Balance from Prior Year Budget Authority, 

Net (Discretionary and Mandatory) $ 4,592 $ 3,863 $ 4,278 $ 256 $ 25 $ 737 $ 11 $ 453 $ 613 $ 97,027 $ 4,725 

Appropriations (Discretionary and Mandatory) 8,517 6,922 - 1,566 184 1,944 87 451 6,224 273,612 6 

Borrowing Authority (Discretionary and Mandatory) - - 10,852 - - - - - - 13,207 14,904 

Spending Authority from Offsetting Collections 

(Discretionary and Mandatory) 594 691 9,317 160 26 39 2 70 1,444 8,536 12,365 

Total Budgetary Resources 13,703 11,476 24,447 1,982 235 2,720 100 974 8,281 392,382 32,000 

Status of Budgetary Resources: 

New Obligations and Upward Adjustments (Total) 9,742 6,920 15,940 1,737 235 2,091 93 773 1,876 277,308 20,631 

Unobligated Balance, End of Year: 

Apportioned, Unexpired Accounts 2,648 4,411 8,260 222 - 691 2 91 5,298 73,017 10,675 

Exempt from Apportionment, Unexpired Accounts - - - - - - - - - 85 - 

Unapportioned, Unexpired Accounts 1,293 72 247 1 - (80) - 10 1,066 8,241 694 

Unexpired Unobligated Balance, End of Year 3,941 4,483 8,507 223 - 611 2 101 6,364 81,343 11,369 

Expired Unobligated Balance, End of Year 20 73 - 22 - 18 5 100 41 33,731 - 

Unobligated Balance, End of Year (Total) 3,961 4,556 8,507 245 - 629 7 201 6,405 115,074 11,369 

Total Budgetary Resources 13,703 11,476 24,447 1,982 235 2,720 100 974 8,281 392,382 32,000 

Outlays, Net, and Disbursements, Net: 

Outlays, Net (Total) (Discretionary and Mandatory) 8,553 4,848 1,495 179 1,416 80 405 397 239,467 

Distributed Offsetting Receipts (-) (679) (2,844) (18) - (14) (1) - 19 (4,249) 

Agency Outlays, Net (Discretionary and Mandatory) $ 7,874 $ 2,004 $ 1,477 $ 179 $ 1,402 $ 79 $ 405 $ 416 $ 235,218 

Disbursements, Net (Total) (Mandatory) $ 2,853 $ 4,025 
USDA | 2021 Agency Financial Report 175 

FPAC Business 

Center FSA CCC RMA NRCS FNS FSIS AMS APHIS 

FY 2020 

Budgetary Budgetary 

NonBudgetary 

Credit 

Reform 

Financing 

Accounts Budgetary 

NonBudgetary 

Credit 

Reform 

Financing 

Accounts Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary 

Budgetary Resources: 

Unobligated Balance from Prior Year Budget Authority, 

Net (Discretionary and Mandatory) $ 8 $ 5,146 $ 226 $ 1,175 $ 111 $ 626 $ 6,340 $ 40,053 $ 91 $ 856 $ 719 

Appropriations (Discretionary and Mandatory) 257 32,383 - 1,769 - 8,331 5,871 136,090 1,105 5,732 1,425 

Borrowing Authority (Discretionary and Mandatory) - - 4,012 35,525 432 - - - - - - 

Spending Authority from Offsetting Collections 

(Discretionary and Mandatory) 22 314 2,106 18 117 3,948 140 59 267 196 217 

Total Budgetary Resources 287 37,843 6,344 38,487 660 12,905 12,351 176,202 1,463 6,784 2,361 

Status of Budgetary Resources: 

New Obligations and Upward Adjustments (Total) 266 18,142 4,081 37,985 436 12,303 6,219 130,168 1,348 5,984 1,761 

Unobligated Balance, End of Year: 

Apportioned, Unexpired Accounts 14 19,573 1,958 49 41 599 3,483 16,501 105 354 545 

Exempt from Apportionment, Unexpired Accounts - - - - - - - - - 7 - 

Unapportioned, Unexpired Accounts - 73 305 452 183 - 7 334 - 421 2 

Unexpired Unobligated Balance, End of Year 14 19,646 2,263 501 224 599 3,490 16,835 105 782 547 

Expired Unobligated Balance, End of Year 7 55 - 1 - 3 2,642 29,199 10 18 53 

Unobligated Balance, End of Year (Total) 21 19,701 2,263 502 224 602 6,132 46,034 115 800 600 

Total Budgetary Resources 287 37,843 6,344 38,487 660 12,905 12,351 176,202 1,463 6,784 2,361 

Outlays, Net, and Disbursements, Net: 

Outlays, Net (Total) (Discretionary and Mandatory) 251 14,540 18,636 10,490 4,278 114,224 1,061 3,830 1,390 

Distributed Offsetting Receipts (-) - (217) (23) - (1) (5) (18) (195) (8) 

Agency Outlays, Net (Discretionary and Mandatory) $ 251 $ 14,323 $ 18,613 $ 10,490 $ 4,277 $ 114,219 $ 1,043 $ 3,635 $ 1,382 

Disbursements, Net (Total) (Mandatory) $ 1,452 $ (58) 
176 Section II | Financial Information 

FS RD ARS NASS NIFA ERS FAS Staff Offices Total 

FY 2020 

Budgetary Budgetary 

NonBudgetary 

Credit Reform 

Financing 

Accounts Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary Budgetary 

NonBudgetary 

Credit Reform 

Financing 

Accounts 

Budgetary Resources: 

Unobligated Balance from Prior Year Budget 

Authority, Net (Discretionary and Mandatory) $ 3,146 $ 8,103 $ 5,621 $ 826 $ 17 $ 727 $ 6 $ 301 $ 1,238 $ 69,378 $ 5,958 

Appropriations (Discretionary and Mandatory) 8,052 6,232 1 1,628 180 1,745 85 437 (196) 211,126 1 

Borrowing Authority (Discretionary and Mandatory) - - 11,210 - - - - - - 35,525 15,654 

Spending Authority from Offsetting Collections 

(Discretionary and Mandatory) 774 818 10,026 174 21 24 6 17 1,278 8,293 12,249 

Total Budgetary Resources 11,972 15,153 26,858 2,628 218 2,496 97 755 2,320 324,322 33,862 

Status of Budgetary Resources: 

New Obligations and Upward Adjustments (Total) 7,692 11,316 17,396 2,390 218 1,807 91 324 1,768 239,782 21,913 

Unobligated Balance, End of Year: 

Apportioned, Unexpired Accounts 2,279 2,580 9,258 217 - 751 4 340 479 47,873 11,257 

Exempt from Apportionment, Unexpired Accounts - - - - - - - - - 7 - 

Unapportioned, Unexpired Accounts 2,000 1,187 204 - - (85) 1 10 35 4,437 692 

Unexpired Unobligated Balance, End of Year 4,279 3,767 9,462 217 - 666 5 350 514 52,317 11,949 

Expired Unobligated Balance, End of Year 1 70 - 20 - 23 1 81 39 32,223 - 

Unobligated Balance, End of Year (Total) 4,280 3,837 9,462 237 - 689 6 431 553 84,540 11,949 

Total Budgetary Resources 11,972 15,153 26,858 2,627 218 2,496 97 755 2,321 324,322 33,862 

Outlays, Net, and Disbursements, Net: 

Outlays, Net (Total) (Discretionary and Mandatory) 6,346 8,351 1,348 165 1,395 69 366 371 187,111 

Distributed Offsetting Receipts (-) (496) (1,924) (20) - (5) - - 49 (2,863) 

Agency Outlays, Net (Discretionary and Mandatory) $ 5,850 $ 6,427 $ 1,328 $ 165 $ 1,390 $ 69 $ 366 $ 420 $ 184,248 

Disbursements, Net (Total) (Mandatory) $ 1,153 $ 2,547 
USDA | 2020 Agency Financial Report 177 

Section III

Other Information 

USDA Management Challenges 

The Reports Consolidation Act of 2000 requires the U.S. Department of Agriculture’s (USDA) 

Office of Inspector General (OIG) to report annually on the most serious management challenges 

USDA and its agencies face. This year, OIG continued to refine the way they present the 

management challenges. While the current challenges are like the ones from the previous year, 

OIG sought to provide the Secretary and other policymakers with a more streamlined report that 

improves clarity and gives significant information greater prominence. To accomplish this goal, 

OIG consolidated and reduced the previous seven major challenge areas to four: 

• Program Oversight and Accountability; 

• Safety and Security; 

• Program Performance, Results, and Outreach; and 

• Financial Management. 

USDA management takes these challenges very seriously and is aggressively pursuing corrective 

actions to address all challenges. 

The USDA Management Challenges report for FY 2021 is available on the USDA OIG website 

at www.usda.gov/oig/reports/management-challenges.
178 Section III | Other Information 

Summary of Financial Statement Audit 

and Management Assurances 

Summary of Existing Material Weaknesses 

The U.S. Department of Agriculture’s (USDA or the Department) material weaknesses and 

financial system non-conformance, as related to management’s assurance for the Federal 

Managers’ Financial Integrity Act of 1982 (FMFIA) and the certification for the Federal 

Financial Management Improvement Act of 1996 (FFMIA), are listed in Exhibit 27 and 

Exhibit 28. 

Exhibit 27: Summary of Financial Statement Audit 

Audit Opinion: Unmodified 2021 Consolidated Financial Statement Audit 

Restatement: No 

Material Weakness 

Beginning 

Balance New Resolved Consolidated 

Ending 

Balance 

Improvement Needed in 

Financial Management 1 1 

Improvement Needed in 

Information Technology 

Security and Controls 

1 1 

TOTAL 

MATERIAL WEAKNESSES 2 2 

Exhibit 28: Summary of Management Assurances 

Effectiveness of Internal Control Over Reporting (Federal Managers’ Financial Integrity Act of 

1982 [FMFIA] § 2) 

Statement of Assurance: Modified 

Material Weakness 

Beginning 

Balance New Resolved Consolidated Reassessed 

Ending 

Balance 

Information Technology 1 1 

Financial Management 1 1 

TOTAL 

MATERIAL WEAKNESSES 2 2 
USDA | 2020 Agency Financial Report 179 

Effectiveness of Internal Control Over Operations (FMFIA § 2) 

Statement of Assurance: Unmodified 

Material Weakness 

Beginning 

Balance New Resolved Consolidated Reassessed 

Ending 

Balance 

TOTAL 

MATERIAL WEAKNESSES 0 0 

Conformance with Federal Financial Management System Requirements (FMFIA § 4) 

Statement of Assurance: Systems do not conform to Financial Management System requirements 

Non-Conformances 

Beginning 

Balance New Resolved Consolidated Reassessed 

Ending 

Balance 

Funds Control 

Management 1 1 

TOTAL 

NON-CONFORMANCES 1 1 

Compliance with Section 803 (A) of the Federal Financial Management Improvement Act of 

1996 (FFMIA) 

Item Agency Auditor 

1. Federal Financial Management System 

Requirements Lack of compliance noted Lack of compliance noted 

2. Applicable Federal Accounting Standards Lack of compliance noted Lack of compliance noted 

3. U.S. Standard General Ledger at 

Transaction Level Lack of compliance noted Lack of compliance noted 
180 Section III | Other Information 

Payment Integrity Information Act of 2019 –

Improper Payments Overview 

Payment Integrity 

Over the past two decades, laws and regulations governing the identification and recovery of 

improper payments have evolved to improve payment accuracy to boost public confidence in 

Federal programs’ stewardship of taxpayer dollars. The Improper Payments Information Act of 

2002 (IPIA), as amended and expanded by other laws, collectively required agencies to 

periodically review all programs and activities susceptible to significant improper payments, to 

conduct payment recapture audits, and utilize Government wide Do Not Pay (DNP) initiatives. 

Additionally, IPIA had extensive reporting requirements. IPIA was repealed and replaced by the 

Improper Payment Elimination and Recovery Act of 2010 (IPERA) followed by the Improper 

Payment Elimination and Recovery Improvement Act of 2012 (IPERIA). IPERIA was repealed 

and replaced by the Payment Integrity Information Act of 2019 (PIIA). 

PIIA modified and restructured existing improper payments laws to help agencies better identify

and reduce any money wasted because of improper government payments. It should be noted 

that not all improper payments are fraud, and not all improper payments represent a monetary 

loss to the government. An improper payment (IP) is defined as any payment that should not 

have been made or that was made in an incorrect amount (including overpayments and 

underpayments) under statutory, contractual, administrative, or other legally applicable 

requirements. Additionally, an unknown payment (UP) is defined as a payment that could be 

either proper or improper, but the agency cannot discern whether the payment was proper or 

improper due to insufficient or lack of documentation. 

Annually, the Department submits data to Office of Management and Budget (OMB) that is 

collected and presented on www.paymentaccuracy.gov/ by an individual agency or on a 

Government-wide consolidated basis. This website contains current and historical information 

about improper payments made under Federal programs, as well as extensive information about 

how improper payments are defined and tracked. 

Please refer to the www.paymentaccuracy.gov/ website for detailed results from the 

Department’s efforts in fiscal year 2021 to comply with PIIA. 
USDA | 2021 Agency Financial Report 181 

Civil Monetary Penalties 

The U.S. Department of Agriculture (USDA or the Department) maintains regulations regarding civil monetary policies at Title 7 of the Code 

of Federal Regulations § 3.91. The Department reviews and updates the penalties in accordance with the Civil Monetary Penalties Inflation Act 

of 2015. 

Each year, the Department must update its civil monetary penalties to account for annual inflation. On May 10, 2021, the Department published 

the revised penalties for 2021 in the Federal Register (www.federalregister.gov/documents/2021/05/10/2021-09542/civil-monetary-penaltyinflation-adjustments-for-2021).

The following table briefly describes the penalty, under which authority it pertains, and the current penalty amounts. 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Agricultural 

Marketing Service 

Improper recordkeeping 7 U.S.C. 136i-1(d) Insecticides and 

Environmental Pesticide 

Control 

05/10/2021 A maximum of $975 for the first 

offense and a minimum of $1,894 

in the case of subsequent 

offenses, except that the penalty 

will be less than $1,894 if the 

Secretary determines that the 

person made a good faith effort 

to comply. 

Agricultural 

Marketing Service 

Violation of the unfair 

conduct rule 

7 U.S.C. 499b(5) Perishable Agricultural 

Commodities Act 

05/10/2021 Maximum of $5,308. 

Agricultural 

Marketing Service 

Violation of the licensing 

requirements 

7 U.S.C. 499c(a) Perishable Agricultural 

Commodities Act 

05/10/2021 Maximum of $1,695 for each such 

offense and not more than $423 

for each day it continues, or a 

maximum of $423 for each 

offense if the Secretary 

determines the violation was not 

willful. 
182 Section III | Other Information 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Agricultural 

Marketing Service 

Civil penalty in lieu of 

license suspension 

7 U.S.C. 499h(e) Perishable Agricultural 

Commodities Act 

05/10/2021 Maximum penalty of $3,388 for 

each violative transaction or each 

day the violation continues. 

Agricultural 

Marketing Service 

Violation 7 U.S.C. 586 Export Apple Act 05/10/2021 Minimum of $153 and a 

maximum of $15,481. 

Agricultural 

Marketing Service 

Violation 7 U.S.C. 596 Export Grape and Plum Act 05/10/2021 Minimum of $296 and a 

maximum of $29,622. 

Agricultural 

Marketing Service 

Violation of an order 

issued by the Secretary 

7 U.S.C. 608c(14)(B) Agricultural Adjustment Act 05/10/2021 Maximum of $2,963. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Failure to file certain 

reports 

7 U.S.C. 610 (C) Agricultural Adjustment Act 05/10/2021 Maximum of $296. 

Agricultural 

Marketing Service 

Violation of a seed 

program 

7 U.S.C. 1596(b) Federal Seed Act 05/10/2021 Minimum of $101 and a 

maximum of $2,020. 

Agricultural 

Marketing Service 

Failure to collect any 

assessment or fee 

7 U.S.C. 2112(b) Cotton Research and 

Promotion Act 

05/10/2021 Maximum of $2,963. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Failure to pay, collect, or 

remit any assessment or 

fee for a violation 

7 U.S.C. 2621(b)(1) Potato Research and 

Promotion Act 

05/10/2021 Minimum of $1,328 and a 

maximum of $12,247. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 2621(b)(3) Potato Research and 

Promotion Act 

05/10/2021 Maximum of $1,328. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation of a 

program 

7 U.S.C. 2714(b)(1) Egg Research and 

Consumer Information Act 

05/10/2021 Minimum of $1,535 and a 

maximum of $15,353. 
USDA | 2021 Agency Financial Report 183 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 2714(b)(3) Egg Research and 

Consumer Information Act 

05/10/2021 Maximum of $1,535. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Failure to remit any 

assessment or fee or for a 

violation of a program 

7 U.S.C. 2908(a)(2) Beef Research and 

Information Act 

05/10/2021 Maximum of $11,977. 

Agricultural 

Marketing Service 

Failure to remit any 

assessment or for a 

violation of a program 

7 U.S.C. 3410(b) Wheat and Wheat Foods 

Research 

05/10/2021 Maximum of $2,963. 

Agricultural 

Marketing Service 

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation 

7 U.S.C. 4314(b)(1) Floral Research and 

Consumer Information Act 

05/10/2021 Minimum of $1,394 and a 

maximum of $13,940. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 4314(b)(3) Floral Research and 

Consumer Information Act 

05/10/2021 Maximum of $1,394. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Violation of an order 7 U.S.C. 4510(b) Dairy Promotion Program 05/10/2021 Maximum of $2,577. 

Agricultural 

Marketing Service 

Pay, collect, or remit any 

assessment or fee or for a 

violation 

7 U.S.C. 4610(b)(1) Honey Research, 

Promotion, and Consumer 

Information Act 

05/10/2021 Minimum of $774 and a 

maximum of $7,939. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 4610(b)(3) Honey Research, 

Promotion, and Consumer 

Information Act 

05/10/2021 Maximum of $794. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Violation of a program 7 U.S.C. 

4815(b)(1)(A)(i) 

Pork Promotion, Research, 

and Consumer Information 

Act of 1985 

05/10/2021 Maximum of $2,396. 
184 Section III | Other Information 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 

4815(b)(3)(A) 

Pork Promotion, Research, 

and Consumer Information 

Act of 1985 

05/10/2021 Maximum of $1,198. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation of a 

program 

7 U.S.C. 4910(b)(1) Watermelon Research and 

Promotion Act 

05/10/2021 Minimum of $1,198 and a 

maximum of $11,977. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 4910(b)(3) Watermelon Research and 

Promotion Act 

05/10/2021 Maximum of $1,198. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation of a 

program 

7 U.S.C. 6009(c)(1) Pecan Promotion and 

Research Act of 1990 

05/10/2021 Minimum of $1,951 and a 

maximum of $19,496. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 6009(e) Pecan Promotion and 

Research Act of 1990 

05/10/2021 Maximum of $1,949. 

Agricultural 

Marketing Service 

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation 

7 U.S.C. 6107(c)(1) Mushroom Promotion, 

Research, and Consumer 

Information Act of 1990 

05/10/2021 Minimum of $948 and a 

maximum of $9,476. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 6107(e) Mushroom Promotion, 

Research, and Consumer 

Information Act of 1990 

05/10/2021 Maximum of $948. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation 

7 U.S.C. 6207(c)(1) Lime Research, Promotion, 

and Consumer Information 

Act of 1990 

05/10/2021 Minimum of $948 and a 

maximum of $9,476. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 6207(e) Lime Research, Promotion, 

and Consumer Information 

Act of 1990 

05/10/2021 Maximum of $948. Each day the 

violation continues is a separate 

violation. 
USDA | 2021 Agency Financial Report 185 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Agricultural 

Marketing Service 

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation of a 

program 

7 U.S.C. 

6307(c)(1)(A) 

Soybean Promotion, 

Research, and Consumer 

Information Act 

05/10/2021 Maximum of $1,951. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 6307(e) Soybean Promotion, 

Research, and Consumer 

Information Act 

05/10/2021 Maximum of $9,706. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation 

7 U.S.C. 

6411(c)(1)(A), 

7 U.S.C. 

6411(c)(1)(B) 

Fluid Milk Promotion Act of 

1990 

05/10/2021 Minimum of $18,623 and a 

maximum of $189,510. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 6411(e) Fluid Milk Promotion Act of 

1990 

05/10/2021 Maximum of $9,753. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Knowingly labeling or 

selling a product as 

organic 

7 U.S.C. 6519(c) Organic Foods Production 

Act of 1990 

05/10/2021 Maximum of $18,951. 

Agricultural 

Marketing Service 

Failure to pay, collect, or 

remit any assessment or 

fee or for a violation of a 

program 

7 U.S.C. 

6808(c)(1)(A)(i) 

Fresh Cut Flowers and 

Fresh Cut Greens 

Promotion and Information 

Act of 1993 

05/10/2021 Minimum of $893 and a 

maximum of $8,935. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 6808(e)(1) Fresh Cut Flowers and 

Fresh Cut Greens 

Promotion and Information 

Act of 1993 

05/10/2021 Maximum of $8,935. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Violation of a program 7 U.S.C. 

7107(c)(1)(A) 

Sheep Promotion, 

Research, and Information 

Act of 1994 

05/10/2021 Maximum of $1,742. 
186 Section III | Other Information 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 7107(e) Sheep Promotion, 

Research, and Information 

Act of 1994 

05/10/2021 Maximum of $870. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Violation of an order or 

regulation issued 

7 U.S.C. 7419(c)(1) Commodity Promotion, 

Research, and Information 

Act of 1996 

05/10/2021 Minimum of $1,644 and a 

maximum of $16,449 for each 

violation. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 7419(e) Commodity Promotion, 

Research, and Information 

Act of 1996 

05/10/2021 Minimum of $1,644 and a 

maximum of $16,449. Each day 

the violation continues is a 

separate violation. 

Agricultural 

Marketing Service 

Violation of an order or 

regulation issued 

7 U.S.C. 

7448(c)(1)(A)(i) 

Canola and Rapeseed 

Research, Promotion, and 

Consumer Information Act, 

05/10/2021 Maximum of $1,644 for each 

violation. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 7448(e) Canola and Rapeseed 

Research, Promotion, and 

Consumer Information Act 

05/10/2021 Maximum of $8,224. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Violation of an order or 

regulation issued 

7 U.S.C. 7468(c)(1) National Kiwifruit Research, 

Promotion, and Consumer 

Information Act 

05/10/2021 Minimum of $823 and a 

maximum of $8,224 for each 

violation. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 7468(e) National Kiwifruit Research, 

Promotion, and Consumer 

Information Act 

05/10/2021 Maximum of $823. Each day the 

violation continues is a separate 

violation. 

Agricultural 

Marketing Service 

Violation of an order or 

regulation 

7 U.S.C. 7487(a) Popcorn Promotion, 

Research, and Consumer 

Information Act 

05/10/2021 Maximum of $1,644 for each 

violation. 

Agricultural 

Marketing Service 

Violation 21 U.S.C. 

1041(c)(1)(A) 

Egg Products Inspection Act 05/10/2021 Maximum of $9,476 for each 

violation. 
USDA | 2021 Agency Financial Report 187 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Agricultural 

Marketing Service 

Violation of an order or 

regulation issued 

7 U.S.C. 

7807(c)(1)(A)(i) 

Hass Avocado Promotion, 

Research, and Information 

Act of 2000 

05/10/2021 Minimum of $1,495 and a 

maximum of $14,965 for each 

violation. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 7807(e)(1 Hass Avocado Promotion, 

Research, and Information 

Act of 2000 

05/10/2021 Maximum of $14,965 for each 

offense. Each day the violation 

continues is a separate violation. 

Agricultural 

Marketing Service 

Violation of certain 

provisions 

7 U.S.C. 1636b(a)(1) Livestock Mandatory 

Reporting Act of 1999 

05/10/2021 Maximum of $15,481 for each 

violation. 

Agricultural 

Marketing Service 

Failure to obey a ceaseand-desist order 7 U.S.C. 1636b(g)(3) Livestock Mandatory 

Reporting Act of 1999 

05/10/2021 Maximum of $15,481 for each 

violation. Each day the violation 

continues is a separate violation. 

Agricultural 

Marketing Service 

Failure to obey an order 7 U.S.C. 

1637b(c)(4)(D)(iii) 

Dairy Product Mandatory 

Reporting Program 

05/10/2021 Maximum of $14,965 for each 

offense. 

Agricultural 

Marketing Service 

Willful violation 7 U.S.C. 1638b(b)(2) Country of Origin Labeling 

Program 

05/10/2021 Maximum of $1,202 for each 

violation. 

Agricultural 

Marketing Service 

Violation 7 U.S.C. 4535 and 

4510(b) 

Dairy Research Program 05/10/2021 Maximum of $2,577 for each 

violation. 

Agricultural 

Marketing Service 

Violation by a packer or 

swine contractor 

7 U.S.C. 193(b) Packers and Stockyards 05/10/2021 Maximum of $29,616. 

Agricultural 

Marketing Service 

Failure for a livestock 

market agency or dealer 

to register 

7 U.S.C. 203 Packers and Stockyards 05/10/2021 Maximum of $2,019 and not 

more than $101 for each day the 

violation continues. 

Agricultural 

Marketing Service 

Operating without filing, 

or in violation of, a 

stockyard rate schedule 

or of a regulation 

7 U.S.C. 207(g) Packers and Stockyards 05/10/2021 Maximum of $2,020 and not 

more than $101 for each day the 

violation continues. 
188 Section III | Other Information 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Agricultural 

Marketing Service 

Stockyard owner, 

livestock market agency, 

or dealer who engages in 

or uses any unfair, 

unjustly discriminatory, 

or deceptive practice 

7 U.S.C. 213(b) Packers and Stockyards 05/10/2021 Maximum of $29,616. 

Agricultural 

Marketing Service 

Stockyard owner, 

livestock market agency, 

or dealer who knowingly 

fails to obey any order 

7 U.S.C. 211, 212, or 

213, codified at 

7 U.S.C. 215(a) 

Packers and Stockyards 05/10/2021 Maximum of $2,020. 

Agricultural 

Marketing Service 

Live poultry dealer 

violations 

7 U.S.C. 228b-2(b) Packers and Stockyards 05/10/2021 Maximum of $86,156. 

Agricultural 

Marketing Service 

Violation 7 U.S.C. 86(c) Grain Standards 05/10/2021 Maximum of $289,430. 

Agricultural 

Marketing Service 

Failure to comply with 

certain provisions 

7 U.S.C. 254 U.S. Warehouse Act 05/10/2021 Maximum of $37,412 per 

violation if an agricultural product 

is not involved in the violation. 

Animal and Plant 

Health Inspection 

Service 

Violation 7 U.S.C. 1596(b) Federal Seed Act 05/10/2021 Minimum of $101 and a 

maximum of $2,020. 

Animal and Plant 

Health Inspection 

Service 

Violation 7 U.S.C. 2149(b) Animal Welfare Act 05/10/2021 Maximum of $12,203, and 

knowingly fail to obey a ceaseand-desist order has a civil 

penalty of $1,803. 
USDA | 2021 Agency Financial Report 189 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Animal and Plant 

Health Inspection 

Service 

Penalty for any person 

that causes harm to, or 

interferes with, an animal 

used for the purposes of 

official inspection by 

USDA 

7 U.S.C. 2279e(a) Farming Opportunities 

Training and Outreach 

05/10/2021 Maximum of $14,965. 

Animal and Plant 

Health Inspection 

Service 

Violation 7 U.S.C. 3805(a) Swine Health Protection Act 05/10/2021 Maximum of $30,077. 
190 Section III | Other Information 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Animal and Plant 

Health Inspection 

Service 

Penalty for any person 

that violates or that 

forges, counterfeits, or, 

without authority from 

the Secretary, uses, 

alters, defaces, or 

destroys any certificate, 

permit, or other 

document 

7 U.S.C. 7734(b)(1) Plant Protection Act (PPA) 05/10/2021 Maximum of the greater of: 

$74,824 in the case of any 

individual (except that the civil 

penalty may not exceed $1,496 in 

the case of an initial violation of 

the PPA by an individual moving 

regulated articles not for 

monetary gain), $374,119 in the 

case of any other person for each 

violation, $601,152 for all 

violations adjudicated in a single 

proceeding if the violations do 

not include a willful violation, and 

$1,202,304 for all violations 

adjudicated in a single proceeding 

if the violations include a willful 

violation; or twice the gross gain 

or gross loss for any violation, 

forgery, counterfeiting, 

unauthorized use, defacing, or 

destruction of a certificate, 

permit, or other document 

provided for in the PPA that 

results in the person deriving 

pecuniary gain or causing 

pecuniary loss to another person. 
USDA | 2021 Agency Financial Report 191 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Animal and Plant 

Health Inspection 

Service 

Penalty for any person 

that violates or that 

forges, counterfeits, or, 

without authority from 

the Secretary, uses, 

alters, defaces, or 

destroys any certificate, 

permit, or other 

document 

7 U.S.C. 8313(b)(1) Animal Health Protection 

Act (AHPA) 

05/10/2021 Maximum of the greater of 

$71,811 in the case of any 

individual, except that the civil 

penalty may not exceed $1,437 in 

the case of an initial violation of 

the AHPA by an individual moving 

regulated articles not for 

monetary gain, $359,054 in the 

case of any other person for each 

violation, $601,152 for all 

violations adjudicated in a single 

proceeding if the violations do not 

include a willful violation, and 

$1,202,304 for all violations 

adjudicated in a single proceeding 

if the violations include a willful 

violation; or twice the gross gain 

or gross loss for any violation, 

forgery, counterfeiting, 

unauthorized use, defacing, or 

destruction of a certificate, permit, 

or other document provided 

under the AHPA that results in the 

person deriving pecuniary gain or 

causing pecuniary loss to another 

person. 

Animal and Plant 

Health Inspection 

Service 

Penalty for any person 

that violates certain 

regulations regarding 

transfers of listed agents 

and toxins or possession 

and use of listed agents 

and toxins 

7 U.S.C. 8401(i)(1) Agricultural Bioterrorism 

Protection Act of 2002 

05/10/2021 Maximum of $359,054 in the case 

of an individual and $718,110 in 

the case of any other person. 
192 Section III | Other Information 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Animal and Plant 

Health Inspection 

Service 

Violation 15 U.S.C. 1825(b)(1) Horse Protection Act 05/10/2021 Maximum of $5,925. 

Animal and Plant 

Health Inspection 

Service 

Failure to obey Horse 

Protection Act 

disqualification 

15 U.S.C. 1825(c) Horse Protection Act 05/10/2021 Maximum of $11,579. 

Animal and Plant 

Health Inspection 

Service 

Knowingly violating, or, if 

in the business as an 

importer or exporter, 

violating, with respect to 

terrestrial plants, any 

provision 

16 U.S.C. 1540(a)(1), 

section 9(a)(1)(A) 

through (F), (a)(2)(A) 

through (D), (c), (d) 

(other than 

regulations relating 

to record-keeping or 

filing reports), (f), or 

(g) 

Endangered Species Act of 

1973 

05/10/2021 Maximum of $54,158 for each 

violation. 

Animal and Plant 

Health Inspection 

Service 

Knowingly violating, or, if 

in the business as an 

importer or exporter, 

violating, with respect to 

terrestrial plants, any 

other regulation 

 16 U.S.C. 1540(a)(1) Endangered Species Act of 

1973 

05/10/2021 Maximum of $25,935 for each 

violation. 

Animal and Plant 

Health Inspection 

Service 

Violating, with respect to 

terrestrial plants or any 

regulation, permit, or 

certificate 

 16 U.S.C. 1540(a)(1) Endangered Species Act of 

1973 

05/10/2021 Maximum of $1,367 for each 

violation. 
USDA | 2021 Agency Financial Report 193 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Animal and Plant 

Health Inspection 

Service 

Knowingly and willfully 

violating with respect to 

the transportation of 

animals by any rail 

carrier, express carrier, or 

common carrier (except 

by air or water), a 

receiver, trustee, or 

lessee of one of those 

carriers, or an owner or 

master of a vessel 

 49 U.S.C. 80502(d) Transportation of Animals 05/10/2021 Minimum of $170 and a 

maximum of $870. 

Animal and Plant 

Health Inspection 

Service 

Violation and its 

implementing regulation 

7 U.S.C. 1901 note, 

as specified in 

9 CFR 88.6 

Commercial Transportation 

of Equine for Slaughter Act 

05/10/2021 Maximum of $822. 

Animal and Plant 

Health Inspection 

Service 

Knowingly violating or for 

violating any other 

provision provided that, 

in the exercise of due 

care, the violator should 

have known that the 

plant was taken, 

possessed, transported, 

or sold in violation of any 

underlying law, treaty, or 

regulation 

16 U.S.C. 3373(a)(1) Lacey Act Amendments of 

1981 

05/10/2021 Maximum of $26,930 for each 

violation, as specified in 16 U.S.C. 

3373(a)(1) (but if the plant has a 

market value of less than $360

and involves only the 

transportation, acquisition, or 

receipt of a plant taken or 

possessed in violation of any law, 

treaty, or regulation of the United 

States, any Indian tribal law, any 

foreign law, or any law or 

regulation of any State, the 

penalty will not exceed the 

maximum provided for violation 

of said law, treaty, or regulation, 

or $26,930, whichever is less). 
194 Section III | Other Information 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Animal and Plant 

Health Inspection 

Service 

Violation 16 U.S.C. 3373(a)(2) Lacey Act Amendments of 

1981 

05/10/2021 Maximum of $673. 

Food and Nutrition 

Service 

Violating a provision or a 

regulation under the Act 

by a retail food store or 

wholesale food concern 

7 U.S.C. 2021(a) and 

(c) 

Food and Nutrition Act of 

2008 (Act) 

05/10/2021 Maximum of $120,231 for each 

violation. 

Food and Nutrition 

Service 

Trafficking in food 

coupons 

7 U.S.C. 

2021(b)(3)(B) 

Food and Nutrition Act of 

2008 (Act) 

05/10/2021 Maximum of $43,325 for each 

violation, except that the 

maximum penalty for violations 

occurring during a single 

investigation is $78,017. 

Food and Nutrition 

Service 

Sale of firearms, 

ammunition, explosives, 

or controlled substances 

for coupons 

7 U.S.C. 

2021(b)(3)(C) 

Food and Nutrition Act of 

2008 (Act) 

05/10/2021 Maximum penalty for violations 

occurring during a single 

investigation is $78,017. 

Food and Nutrition 

Service 

Any entity that submits a 

bid to supply infant 

formula and discloses the 

amount of the bid, 

rebate, or discount 

practices in advance of 

the bid opening or for any 

entity that makes a 

statement prior to the 

opening of bids for the 

purpose of influencing a 

bid 

42 U.S.C. 

1786(h)(8)(H)(i) 

Special Supplemental 

Nutrition Program for 

Women, Infants, and 

Children 

05/10/2021 Maximum of $ 183,629,453. 
USDA | 2021 Agency Financial Report 195 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Food and Nutrition 

Service 

Vendor convicted of 

trafficking in food 

instruments 

42 U.S.C. 

1786(o)(1)(A) and 42 

U.S.C. 1786(o)(4)(B) 

Special Supplemental 

Nutrition Program for 

Women, Infants, and 

Children 

05/10/2021 Maximum of $15,877 for each 

violation, except that the 

maximum penalty for violations 

occurring during a single 

investigation is $63,509. 

Food and Nutrition 

Service 

Vendor convicted of 

selling firearms, 

ammunition, explosives, 

or controlled substances 

in exchange for food 

instruments 

42 U.S.C. 

1786(o)(1)(B) and 42 

U.S.C. 1786(o)(4)(B) 

Special Supplemental 

Nutrition Program for 

Women, Infants, and 

Children 

05/10/2021 Maximum of $15,487 for each 

violation, except that the 

maximum penalty for violations 

occurring during a single 

investigation is $63,509. 

Food Safety and 

Inspection Service 

Violation 21 U.S.C. 

1041(c)(1)(A) 

Egg Products Inspection Act 05/10/2021 Maximum of $9,476 for each 

violation. 

Forest Service Willful disregard of the 

prohibition against the 

export of unprocessed 

timber originating from 

Federal lands 

16 U.S.C. 

620d(c)(1)(A) 

Federal Lands 05/10/2021 Maximum of $975,230 per 

violation or three times the gross 

value of the unprocessed timber, 

whichever is greater. 

Forest Service Violation 16 U.S.C. 

620d(c)(2)(A)(i) 

Forest Resources 

Conservation and Shortage 

Relief Act 

05/10/2021 Maximum of $146,285 per 

violation. 

Forest Service Penalty for a person that 

should have known that 

an action was a violation 

regardless of whether 

such violation caused the 

export of unprocessed 

timber originating from 

Federal lands 

16 U.S.C. 

620d(c)(2)(A)(ii), 

Forest Resources 

Conservation and Shortage 

Relief Act 

05/10/2021 Maximum of $97,523 per 

violation. 
196 Section III | Other Information 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Forest Service Willful violation 16 U.S.C. 

620d(c)(2)(A)(iii) 

Forest Resources 

Conservation and Shortage 

Relief Act 

05/10/2021 Maximum of $975,230. 

Forest Service Violation involving 

protections of caves 

16 U.S. C. 4307(a)(2) Federal Cave Resources 

Protection 

05/10/2021 Maximum of $21,314. 

Federal Crop 

Insurance 

Corporation 

Willfully or intentionally 

providing any false or 

inaccurate information 

7 U.S.C. 

1515(h)(3)(A) 

Federal Crop Insurance Act 05/10/2021 Maximum of the greater of the 

amount of the pecuniary gain 

obtained as a result of the false or 

inaccurate information or the 

noncompliance; or $12,650. 

Rural Housing 

Service 

Violation of section 536 

of Title V of the Housing 

Act of 1949 

42 U.S.C. 

1490p(e)(2) 

Housing Act of 1949 05/10/2021 Maximum of $207,313 in the case 

of an individual, and a maximum 

of $2,073,133 in the case of an 

applicant other than an 

individual. 

Rural Housing 

Service 

Penalty for equity 

skimming 

42 U.S.C. 1490s(a)(2) Housing Act of 1949 05/10/2021 Maximum of $37,412. 

Rural Housing 

Service 

Submitting false 

information, submitting 

false certifications, failing 

to timely submit 

information, failing to 

maintain real property in 

good repair and condition, 

failing to provide 

acceptable management 

for a project, or failing to 

comply with applicable 

civil rights laws and 

regulations 

42 U.S.C. 

1490s(b)(3)(A) 

Housing Act of 1949 05/10/2021 Maximum of the greater of twice 

the damages USDA, guaranteed 

lender, or project secured for a 

loan under Title V suffered or 

would have suffered as a result of 

the violation; or $74,824 per 

violation. 
USDA | 2021 Agency Financial Report 197 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Commodity Credit 

Corporation 

Penalty for willful failure 

or refusal to furnish 

information or willful 

furnishing of false 

information under 

Section 156 

7 U.S.C. 7272(g)(5) Federal Agricultural 

Improvement and Reform 

Act of 1996 

05/10/2021 Maximum of $16,449 for each 

violation. 

Commodity Credit 

Corporation 

Willful failure or refusal 

to furnish information or 

willful furnishing of false 

data by a processor, 

refiner, or importer of 

sugar, syrup, and 

molasses 

7 U.S.C. 7272(g)(5) Federal Agriculture 

Improvement and Reform 

Act of 1996 

05/10/2021 Maximum of $16,449 for each 

violation. 

Commodity Credit 

Corporation 

Filing a false acreage 

report that exceeds 

tolerance 

7 U.S.C. 7272(g)(5) Federal Agriculture 

Improvement and Reform 

Act of 1996 

05/10/2021 Maximum of $16,449 for each 

violation. 

Commodity Credit 

Corporation 

Knowingly violating any 

regulation of the 

Secretary of the 

Commodity Credit 

Corporation pertaining to 

flexible marketing 

allotments for sugar 

7 U.S.C. 1359hh(b) Agricultural Adjustment Act 

of 1938 

05/10/2021 Maximum of $12,023 for each 

violation. 

Commodity Credit 

Corporation 

Knowingly violating 

regulations promulgated 

by the Secretary 

pertaining to cotton 

insect eradication 

7 U.S.C. 1444a(d) Agricultural Act of 1949 05/10/2021 Maximum of $14,811 for each 

offense. 
198 Section III | Other Information 

Program Office 

Penalty 

(Name of Penalty) 

United States Code 

(U.S.C.) Citation 

Statutory Authority; 

Positive Law and Section 

Authority (Statute) 

Date of 

Current 

Adjustment 

Current Penalty Level 

($ Amount) 

Office of the 

Secretary 

Making, presenting, 

submitting, or causing to 

be made, presented, or 

submitted a false, 

fictitious, or fraudulent 

claim 

31 U.S.C. 3802(a)(1) Program Fraud Civil 

Remedies Act of 1986 

05/10/2021 Maximum of $11,804. 

Office of the 

Secretary 

Making, presenting, 

submitting, or causing to 

be made, presented, or 

submitted a false, 

fictitious, or fraudulent 

written statement 

31 U.S.C. 3802(a)(2) Program Fraud Civil 

Remedies Act of 1986 

05/10/2021 Maximum of $11,804. 
USDA | 2021 Agency Financial Report 199 

Grants Program 

Exhibit 29 shows that the U.S. Department of Agriculture (USDA) has 785 grants/cooperative 

agreements with an undisbursed balance of $27,559,349.73 for which closeout has not yet 

occurred, but for which the period of performance has elapsed by 2 years or more prior to 

September 30, 2020. 

Exhibit 29: Grants Program Summary 

Category 2–3 Years >3–5 Years >5 Years 

Number of Grants/Cooperative 

Agreements with Zero Dollar Balances 55 18 23

Number of Grants/Cooperative 

Agreements with Undisbursed Balances 512 129 48

Total Amount of Undisbursed Balances $13,483,174.88 $8,885,586.22 $5,190,588.63 

USDA made progress compared with the baseline of Fiscal Year (FY) 2020. There were net 

reductions of 86 percent on the number of grants/cooperative agreements with zero-dollar 

balances and 70 percent on the number of grants/cooperative agreements with undisbursed 

balances. Overall, USDA, in FY 2021, attained a total net reduction of 74 percent from the 

number of grants/cooperative agreements reported in FY 2020. 

USDA faces several challenges leading to delayed grant agreement award closeout, including: 

• Timely receipt of the financial and accomplishment reports for the completion of closeout 

reports from grantees; 

• Delays by grantees in adjusting valid funds after the period of performance; 

• Project Director/Authorized Representative relocation and delayed response; 

• Institutions and Investigators affected by the COVID-19 pandemic; 

• Delays on receipts of final vouchers; 

• Administrative challenges related to finalizing rates and budget line-item agreements; and 

• Delays in the resolution of audits by grant recipients. 

Each USDA grant-making agency continues to review outstanding grants/cooperative 

agreements and monitoring open balances through the Agency quarterly Unliquidated 

Obligations review for appropriate closeout actions. The grant-making agencies’ accountable 

officers continue their closeout of grants/cooperative agreements efforts and continuous 

communication with the recipients of USDA funds to ensure compliance with requirements of 

Title 2 CFR Part 200 and better management of Federal Funds. 
Page Intentionally Blank 
USDA | 2021 Agency Financial Report 201 

Abbreviations–Acronyms 

— A — 

A&O ......................Administrative and Operating 

AARCC ..................Agricultural Research and Commercialization Corporation

AARs .....................Acquisition Approval Requests 

ACEP .....................Agricultural Conservation Easement Program 

ACIF ......................Agriculture Credit Insurance Fund 

ADA ......................Anti-Deficiency Act 

AFR .......................Agency Financial Report 

AFRI ......................Agriculture and Food Research Initiative 

AgCMS ..................Agriculture Conference Management System 

AgNIC ....................Agriculture Network Information Collaborative 

AHPA ....................Animal Health Protection Act 

AIPs .......................Approved Insurance Providers 

ALE ........................Agricultural Land Easement 

AMS......................Agricultural Marketing Service 

APHIS ....................Animal and Plant Health Inspection Service 

APP .......................Annual Performance Plan 

APPR.....................Annual Performance Plan and Report 

APR .......................Annual Performance Report 

AQI........................Agricultural Quarantine Inspection 

ARC .......................Agriculture Risk Coverage 

ARP .......................American Rescue Plan 

ARS .......................Agricultural Research Service 

ASF........................African Swine Fever 

— B — 

BAR .......................Budget and Accrual Reconciliation 

BARC.....................Beltsville Agricultural Research Center 

BOC .......................Budget Object Classification 
202 Abbreviations—Acronyms 

— C — 

CACFP ...................Child and Adult Care Food Program 

CAP.......................Commodity Assistance Program 

CARES Act .............Coronavirus Aid, Relief, and Economic Security Act 

CART .....................Conservation Assessment Ranking Tool 

CBD .......................Cannabidiol 

CBOs .....................Certificates of Beneficial Ownership 

CCC .......................Commodity Credit Corporation 

CCE .......................Commodity Certificate Exchange 

CDM......................Cybersecurity Diagnostic and Migration 

CEP .......................Community Eligibility Provision 

CF..........................Community Facilities 

CFAP .....................Coronavirus Food Assistance Program 

CFR .......................Code of Federal Regulations 

CIO........................Chief Information Officer 

CIR ........................Contract Implementation Ratio 

CN.........................Child Nutrition 

CNM .....................Nanocellulosic Materials 

CNP .......................Child Nutrition Program

CNPP .....................Center for Nutrition Policy and Promotion 

CoC .......................Cushion of Credit 

COVID-19..............Coronavirus Disease 2019 

CPI ........................Consumer Price Index 

CPIC ......................Capital Planning and Investment Control 

CRP .......................Conservation Reserve Program 

CTA .......................Conservation Technical Assistance 

CTAT .....................Conference Transparency and Accountability Tool 

CVV/B ...................Cash-Value Voucher/Benefit 

— D — 

DGA ......................Dietary Guidelines Advisory Committee 

DHS .......................Department of Homeland Security 

DISC ......................Digital Infrastructure Services Center 

DM&R ...................Deferred Maintenance 

DNP ......................Do Not Pay 

DOL.......................Department of Labor 
USDA | 2021 Agency Financial Report 203 

— E — 

EA .........................Enterprise Architecture 

EBB .......................Enterprise Budget Bot 

E-Board .................Executive Information Technology Investment Review Board 

EBT .......................Electronic Benefits Transfers 

eFG .......................ezFedGrants 

EQIP ......................Enviornmental Quality Incentives Program 

ERM ......................Enterprise Risk Management 

ERP .......................Enterprise Resource Planning 

ERS........................Economic Research Service 

EWA ......................Early Warning Alert 

— F — 

FAS........................Foreign Agricultural Service 

FASAB...................Federal Accounting Standards Advisory Board 

FBwT .....................Fund Balance with Treasury 

FCC .......................Federal Communications Commission 

FCIC ......................Federal Crop Insurance Corporation 

FDPIR ....................Food Distribution Program on Indian Reservations 

FECA .....................Federal Employees' Compensation Act 

FFAR .....................Foundation for Food and Agricultural Research 

FFB........................Federal Financing Bank 

FFMIA ...................Federal Financial Management Improvement Act 

FFMS .....................Federal Financial Management System 

FISMA ...................Federal Information Security Modernization Act 

FITARA ..................Federal Information Technology Reform Act 

FLP ........................Farm Loan Program 

FMFIA ...................Federal Managers' Financial Integrity Act 

FMMI ....................Financial Management Modernization Initiative 

FNS .......................Food and Nutrition Service 

FPAC .....................Farm Production and Conservation 

FR..........................Financial Report 

FS..........................Forest Service 

FSA........................Farm Service Agency 

FSFL ......................Farm Storage Facility Loan Program 

FSH .......................Forest Service Handbook 

FSIS .......................Food Safety and Inspection Service 

FSM ......................Forest Service Manual 

FY..........................Fiscal Year 
204 Abbreviations—Acronyms 

— G — 

GAAP ....................Generally Accepted Accounting Principles 

GAO ......................Government Accountability Office 

GAOA ....................Great American Outdoors Act 

GL .........................General Ledger 

GPRA ....................Government Performance and Results 

GSA .......................General Services Administration 

GTAS .....................Governmentwide Treasury Account Symbol Adjusted Trial Balance System 

— H — 

H.R. .......................House of Representatives 

HANA ....................High-Performance Analytic Appliance 

HHS.......................Health and Human Services 

— I — 

IBNR ......................Incurred but Not Reported 

ICN ........................Institute of Child Nutrition 

IP ..........................Improper Payment 

IPERA ....................Improper Payment Elimination and Recovery Act of 2010 

IPERIA ...................Improper Payment Elimination and Recovery Improvement Act of 2012 

IPIA .......................Improper Payments Information Act of 2002 

IPP ........................Inspection Program Personnel 

IT...........................Information Technology 

ITSD ......................Information Technology Services Division 

— K — 

KPIs .......................Key Performance Indicators 

— L — 

L&WCF ..................Land and Water Conservation Fund 

LP ..........................Livestock and Poultry 

— M — 

MOU .....................Memorandum of Understanding 

MPIRG ..................Meat and Poultry Inspection Readiness Grant 

MRL ......................Maximum Residue Level 

MRP ......................Marketing and Regulatory Programs 
USDA | 2021 Agency Financial Report 205 

— N — 

N/A.......................Not Available 

NAL .......................National Agricultural Library 

NAP .......................Noninsured Crop Disaster Assistance Program 

NASS .....................National Agricultural Statistics Services 

NFC .......................National Finance Center 

NFS .......................National Forest Service 

NIFA ......................National Institute of Food and Agriculture 

NOAA ....................National Oceanic and Atmospheric Administration 

NRCS .....................Natural Resources Conservation Service 

NRHP ....................National Register of Historic Places 

NSLP .....................National School Lunch Program 

NTIA ......................National Telecommunications and Information Administration 

NVS .......................National Veterinary Stockpile 

— O — 

OCFO ....................Office of the Chief Financial Officer 

OCIO .....................Office of the Chief Information Officer 

OCS .......................Office of the Chief Scientist 

OG&A ...................Office of Grants and Agreements 

OGC ......................Office of the General Counsel 

OIG .......................Office of Inspector General 

OMB .....................Office of Management and Budget 

OPEM ...................Office of Property and Enviornmental Management 

OPM .....................Office of Personnel Management 

OPPE .....................Office of Partnership and Public Engagement 

OSCAL ...................Open Security Control Assessment Language 

OSEC .....................Office of the Secretary 

— P — 

P-EBT ....................Pandemic Electronics Benefits Transfer 

PCCP .....................Pandemic Cover Crop Program 

PHA .......................Priority Heritage Assets 

PHR .......................Public Health Regulation 

PIIA .......................Payment Integrity Information Act of 2019 

PIR ........................Practice Implementation Rate 

PL..........................Public Law 

PLC........................Price Loss Coverage 

PP&E .....................Property, Plant and Equipment 

PPA.......................Plant Protection Act 

PPS........................Procurement and Property Services 
206 Abbreviations—Acronyms 

— Q — 

Q ...........................Quarter 

Q3.........................Third quarter 

— R — 

RC&D ....................Resource Conservation and Development 

RCPP .....................Regional Conservation Partnership Program 

RD.........................Rural Development 

REE .......................Research, Education, and Economics 

RHIF ......................Rural Housing Insurance Fund 

RISE .......................Rural Innovation Stronger Economy 

RMA ......................Risk Management Agency 

RPA .......................Robotics Process Automation 

— S — 

SAM......................System for Award Management 

SAP .......................Systems, Applications, and Products 

SBP .......................School Breakfast Program 

SBR .......................Statement of Budgetary Resources 

SER ........................Single Effective Rate 

SFFAS....................Statement of Federal Financial Accounting Standards 

SFSP......................Summer Food Service Program 

SNAP .....................Supplemental Nutrition Assistance Program 

SOB .......................Summary of Business 

SPS ........................Sanitation Performance Standard 

SRA .......................Standard Reinsurance Agreement 

SSP........................Shared Services Provider 

— T — 

TB .........................Technical Bulletin 

TBT .......................Technical Barrier to Trade 

TCA .......................Terrestrial Condition Assessment 

TEFAP ...................The Emergency Food Assistance Program 

TFAA .....................Trade and Foreign Agricultural Affairs 

TFCCA ...................Tropical Forest and Coral Reef Conservation Act 

TFP ........................Thrifty Food Plan 

TPMC ....................Tuscon Plant Materials Center 

TSP ........................Thrift Savings Plan 
USDA | 2021 Agency Financial Report 207 

— U — 

U.S.C .....................U.S. Code 

UDO......................Undelivered Orders 

UEI ........................Unique Entity Identifier 

ULOs.....................Unliquidated Obligations 

UP.........................Unknown Payment 

USAID ...................U.S. Agency for International Development 

USDA ....................U.S. Department of Agriculture 

USSGL ...................U.S. Standard General Ledger 

— W — 

WCF ......................Working Capital Fund 

WHIP ....................Wildfire and Hurricane Indemnity 

WIC .......................Women, Infants, and Children 

WRE......................Wetland Reserve Easement 
United States Department of Agriculture