30 FY 2018 AGENCY FINANCIAL REPORT | U.S. DEPARTMENT OF EDUCATION

FINANCIAL SECTION | FINANCIAL STATEMENTS

United States Department of Education 

Consolidated Balance Sheets

As of September 30, 2018 and September 30, 2017 

(Dollars in Millions)

FY 2018 FY 2017

ASSETS

Intragovernmental:

Fund Balance with Treasury (Note 3) $ 114,605 $ 110,174

Other Intragovernmental Assets (Note 4) 151 65

Total Intragovernmental 114,756 110,239

Public:

Credit Program Receivables, Net (Note 5)

Direct Loan Program 1,115,053 1,041,554

FFEL Program 92,947 102,410

Other Credit Programs for Higher Education 2,849 2,755

Other Assets (Note 4) 2,377 2,285

Total Public 1,213,226 1,149,004

Total Assets (Note 2) $ 1,327,982 $ 1,259,243

LIABILITIES

Intragovernmental:

Debt (Note 7)

Direct Loan Program $ 1,150,610 $ 1,061,559

FFEL Program 107,261 116,290

Other Credit Programs for Higher Education 2,094 2,222

Subsidy Due to Treasury General Fund (Note 8) 7,536 7,013

Other Intragovernmental Liabilities (Note 9) 2,765 2,633

Total Intragovernmental 1,270,266 1,189,717

Public:

Other Liabilities (Note 9) 8,910 12,366

Total Liabilities (Note 6) $ 1,279,176 $ 1,202,083

Commitments and Contingencies (Note 13)

NET POSITION

Unexpended Appropriations $ 72,166 $ 62,399

Cumulative Results of Operations (23,360) (5,239)

Total Net Position $ 48,806 $ 57,160

Total Liabilities and Net Position $ 1,327,982 $ 1,259,243

The accompanying notes are an integral part of these statements.
FY 2018 AGENCY FINANCIAL REPORT | U.S. DEPARTMENT OF EDUCATION 31

FINANCIAL STATEMENTS | FINANCIAL SECTION

United States Department of Education 

Consolidated Statement of Net Cost 

For the Year Ended September 30, 2018

(Dollars in Millions)

FY 2018

PROGRAM COSTS

Improve Learning Outcomes for all P–12 Students 

Gross Costs $ 37,277

Earned Revenue (82)

Net Program Costs $ 37,195

Expand Postsecondary Opportunities, Improve Outcomes to Foster Economic Opportunity, 

and Promote Productive Citizenry

Direct Loan Program

Gross Costs $ 37,965

Earned Revenue (32,329)

Net Cost of Direct Loan Program $ 5,636

FFEL Program

Gross Costs $ 4,599

Earned Revenue (3,336)

Net Cost of FFEL Program $ 1,263

Other Credit Programs for Higher Education

Gross Costs $ 298

Earned Revenue (621)

Net Cost of Other Credit Programs for Higher Education $ (323)

Non-Credit Programs

Gross Costs $ 35,764

Earned Revenue (10)

Net Cost for Non-Credit Programs $ 35,754

Net Program Costs $ 42,330

Total Gross Cost $ 115,903

Total Earned Revenue $ (36,378)

Net Cost of Operations (Notes 10 & 12) $ 79,525

The accompanying notes are an integral part of these statements.
32 FY 2018 AGENCY FINANCIAL REPORT | U.S. DEPARTMENT OF EDUCATION

FINANCIAL SECTION | FINANCIAL STATEMENTS

United States Department of Education 

Consolidated Statement of Net Cost 

For the Year Ended September 30, 2017

(Dollars in Millions)

FY 2017

PROGRAM COSTS

Increase College Access, Quality, and Completion

Gross Costs $ 78,289

Earned Revenue (35,887)

Net Program Costs $ 42,402

Improve Preparation for College and Career from Birth Through 12th Grade, 

Especially for Children with High Needs

Gross Costs $ 22,577

Earned Revenue (10)

Net Program Costs $ 22,567

Ensure Effective Educational Opportunities for All Students

Gross Costs $ 17,258

Earned Revenue (11)

Net Program Costs $ 17,247

Enhance the Education System’s Ability to Continuously Improve

Gross Costs $ 2,122

Earned Revenue (59)

Net Program Costs $ 2,063

Total Program Cost $ 120,246

Total Program Revenue $ (35,967)

Net Cost of Operations (Notes 10 & 12) $ 84,279

The accompanying notes are an integral part of these statements.
FY 2018 AGENCY FINANCIAL REPORT | U.S. DEPARTMENT OF EDUCATION 33

FINANCIAL STATEMENTS | FINANCIAL SECTION

United States Department of Education 

Consolidated Statements of Changes in Net Position 

For the Years Ended September 30, 2018 and September 30, 2017

(Dollars in Millions)

FY 2018 FY 2017

 Unexpended 

Appropriations 

 Cumulative 

Results of 

Operations 

 Unexpended 

Appropriations 

 Cumulative 

Results of 

Operations 

Beginning Balances $ 62,399 $ (5,239) $ 61,052 $ (28,215)

Budgetary Financing Sources

Appropriations Received $ 100,743 $ - $ 135,945 $ -

Appropriations Transferred In/Out - - 1 -

Other Adjustments (Rescissions, etc.) (1,824) - (1,910) -

Appropriations Used (89,152) 89,152 (132,689) 132,689

Nonexchange Revenue - (3) - -

Other Financing Sources

Imputed Financing from Costs Absorbed by Others - 39 - 27

Negative Subsidy Transfers, Downward Subsidy

Re-estimates, and Other - (27,784) - (25,461)

Total Financing Sources $ 9,767 $ 61,404 $ 1,347 $ 107,255

NET COST OF OPERATIONS $ - $ (79,525) $ - $ (84,279)

NET CHANGE $ 9,767 $ (18,121) $ 1,347 $ 22,976

NET POSITION $ 72,166 $ (23,360) $ 62,399 $ (5,239)

The accompanying notes are an integral part of these statements.
34 FY 2018 AGENCY FINANCIAL REPORT | U.S. DEPARTMENT OF EDUCATION

FINANCIAL SECTION | FINANCIAL STATEMENTS

The accompanying notes are an integral part of these statements.

United States Department of Education 

Combined Statements of Budgetary Resources 

For the Years Ended September 30, 2018 and September 30, 2017

(Dollars in Millions)

FY 2018 FY 2017

Budgetary 

 Non-Budgetary 

Credit Reform 

Financing Accounts 

Budgetary 

 Non-Budgetary 

Credit Reform 

Financing Accounts 

BUDGETARY RESOURCES

Unobligated Balance from Prior Year Budget Authority (Net) $ 13,286 $ 15,863 $ 16,717 $ 10,558

Appropriations (Discretionary and Mandatory) 99,341 - 134,388 -

Borrowing Authority (Discretionary and Mandatory) (Note 11) - 167,897 - 166,601

Spending Authority from Offsetting Collections (Discretionary and Mandatory) 451 61,666 1,096 69,169

Total Budgetary Resources $ 113,078 $ 245,426 $ 152,201 $ 246,328

Memorandum (non-add) entries:

Net adjustments to unobligated balance brought forward, Oct. 1 $ 1,008 $ (7,350) $ 4,325 $ (4,921)

STATUS OF BUDGETARY RESOURCES

New Obligations Incurred and Upward Adjustments (Total) (Note 11) $ 95,228 $ 221,698 $ 139,923 $ 223,115

Unobligated Balance, End of Year:

Apportioned, Unexpired Accounts 14,495 - 9,012 -

Unapportioned, Unexpired Accounts 2,174 23,728 2,100 23,213

Unexpired Unobligated Balance, End of Year $ 16,669 $ 23,728 $ 11,112 $ 23,213

Expired Unobligated Balance, End of Year 1,181 - 1,166 -

Unobligated Balance, End of Year (Total) $ 17,850 $ 23,728 $ 12,278 $ 23,213

Total Status of Budgetary Resources $ 113,078 $ 245,426 $ 152,201 $ 246,328

OUTLAYS, NET

Outlays, Net (Discretionary and Mandatory) $ 91,080 $ 83,100 $ 131,274 $ 40,460

Distributed Offsetting Receipts (-) (Note 11) (27,370) - (19,562) -

Agency Outlays, Net (Discretionary and Mandatory) (Note 11) $ 63,710 $ 83,100 $ 111,712 $ 40,460