129 NOTES TO THE FINANCIAL STATEMENTS

Note 20. Funds from Dedicated Collections 

Funds from Dedicated Collections as of September 30, 2019, and 2018 

Restated 

2019 2018 

SSA's SSA's 

Funds All Other Total Funds Funds All Other Total Funds 

from Funds from from from Funds from from 

Dedicated Dedicated Dedicated Dedicated Dedicated Dedicated 

Collections Collections Collections Collections Collections Collections 

(In billions of dollars) (Combined) (Combined) (Combined) (Combined) (Combined) (Combined) 

Assets: 

Cash and other monetary 

assets ............................ - 66.1 66.1 - 66.7 66.7 

Accounts and taxes 

receivables, net ................. 7.6 38.7 46.3 7.7 38.4 46.1 

Loans receivable, net .......... - 3.1 3.1 - 3.5 3.5 

Inventories and related 

property, net .................... - 1.2 1.2 - 2.6 2.6 

Property, plant and 

equipment, net .................. - 35.4 35.4 - 33.7 33.7 

Debt and equity securities ..... - 33.6 33.6 - 35.0 35.0 

Other assets .................... - 20.1 20.1 - 19.7 19.7 

Federal assets .................. 3,023.3 978.0 4,001.3 3,015.6 922.0 3,937.6 

Total assets .................. 3,030.9 1,176.2 4,207.1 3,023.3 1,121.6 4,144.9 

Liabilities and net position: 

Accounts payable .............. - 7.2 7.2 - 7.9 7.9 

Federal employee and 

veteran benefits payable ...... - 7.0 7.0 - 7.7 7.7 

Environmental and disposal 

liabilities ......................... - 26.1 26.1 - 26.7 26.7 

Benefits due and payable ..... 102.5 73.6 176.1 100.4 64.2 164.6 

Insurance and guarantee 

program liabilities ............... - 4.4 4.4 - 1.7 1.7 

Other liabilities .................. - 147.6 147.6 - 148.8 148.8 

Federal liabilities ................ 109.6 212.0 321.6 107.3 199.5 306.8 

Total liabilities ................ 212.1 477.9 690.0 207.7 456.5 664.2 
NOTES TO THE FINANCIAL STATEMENTS 130

Funds from Dedicated Collections as of September 30,2019, and 2018, continued1

Restated 

2019 2018 

SSA's SSA's 

Funds All Other Total Funds Funds All Other Total Funds 

from Funds from from from Funds from from 

Dedicated Dedicated Dedicated Dedicated Dedicated Dedicated 

Collections Collections Collections Collections Collections Collections 

(In billions of dollars) (Combined) (Combined) (Combined) (Combined) (Combined) (Combined) 

Net position: 

Total net position ............. 2,818.8 698.3 3,517.1 2,815.6 665.1 3,480.7 

Total liabilities and net 

position ..................... 3,030.9 1,176.2 4,207.1 3,023.3 1,121.6 4,144.9 

Change in net position: 

Net position, beginning of 

period ............................ 2,815.6 665.1 3,480.7 2,812.8 606.7 3,419.5 

Adjustments to beginning net 

position .......................... - - - - 22.6 22.6 

Beginning net position, 

adjusted ....................... 2,815.6 665.1 3,480.7 2,812.8 629.3 3,442.1 

Individual income taxes ........ 932.4 286.2 1,218.6 873.2 264.8 1,138.0 

Other taxes and 

miscellaneous earned 

revenue .......................... 0.1 146.4 146.5 0.1 150.9 151.0 

Other changes in fund 

balance (e.g., appropriations, 

transfers) ....................... 24.7 381.3 406.0 24.5 345.3 369.8 

Federal non-exchange 

revenue .......................... 81.7 13.8 95.5 83.5 15.0 98.5 

Total financing sources...... 1,038.9 827.7 1,866.6 981.3 776.0 1,757.3 

Program gross costs and nonprogram expenses ............. 1,035.9 959.2 1,995.1 978.6 893.7 1,872.3 

Less: program revenue ........ 0.2 164.7 164.9 0.1 153.5 153.6 

Net cost ....................... 1,035.7 794.5 1,830.2 978.5 740.2 1,718.7 

Ending net position .......... 2,818.8 698.3 3,517.1 2,815.6 665.1 3,480.7 

1By law, certain expenses (costs), revenues, and other financing sources related to the administration of the above funds are not charged 

to the funds and are therefore financed and/or credited to other sources. 
 131 NOTES TO THE FINANCIAL STATEMENTS

Generally, funds from dedicated collections are financed by specifically identified revenues, often supplemented by 

other financing sources, provided to the government by non-federal sources, which remain available over time. These 

specifically identified revenues and other financing sources are required by statute to be used for designated activities, 

benefits, or purposes and must be accounted for separately from the government’s general revenues. Funds from dedicated 

collections generally include trust funds, public enterprise revolving funds (not including credit reform financing funds), and

special funds. Funds from dedicated collections specifically exclude any fund established to account for pensions, ORB, 

OPEB, or other benefits provided for federal employees (civilian and military). In the federal budget, the term “trust fund” 

means only that the law requires a particular fund to be accounted for separately, used only for a specified purpose, and 

designated as a trust fund. A change in law may change the future receipts and the terms under which the fund’s resources are 

spent. In the private sector, trust fund refers to funds of one party held and managed by a second party (the trustee) in a 

fiduciary capacity. The activity of funds from dedicated collections differs from fiduciary activities primarily in that assets

within funds from dedicated collections are government-owned. For further information related to fiduciary activities, see 

Note 21—Fiduciary Activities. 

Public enterprise revolving funds include expenditure accounts authorized by law to be credited with offsetting 

collections, mostly from the public, that are generated by and dedicated to finance a continuing cycle of business-type 

operations. Some of the financing for these funds may be from appropriations. 

Special funds are federal funds dedicated by law for a specific purpose. Special funds include the special fund receipt 

account and the special fund expenditure account. 

Total assets represent the unexpended balance from all sources of receipts and amounts due to the funds from dedicated 

collections, regardless of source, including related governmental transactions. These are transactions between two different 

entities within the government or intradepartmental (for example, monies received by one entity of the government from 

another entity of the government). 

The federal assets are comprised of fund balances with Treasury, investments in Treasury securities—including 

unamortized amounts, and other assets that include the related accrued interest receivable on federal investments. These 

amounts were excluded in preparing the principal financial statements. The non-federal assets include activity with 

individuals and organizations outside of the government. 

Most of the assets within funds from dedicated collections are invested in intragovernmental debt holdings. The 

government does not set aside assets to pay future benefits or other expenditures associated with funds from dedicated 

collections. The cash receipts collected from the public for funds from dedicated collections are deposited in the General 

Fund, which uses the cash for general government purposes. Treasury securities are issued to federal entities as evidence of 

its receipts. Treasury securities are an asset to the federal entities and a liability to Treasury and, therefore, they do not 

represent an asset or a liability in the Financial Report. These securities require redemption if a fund’s disbursements exceeds 

its receipts. Redeeming these securities will increase the government’s financing needs and require more borrowing from the 

public (or less repayment of debt) or will result in higher taxes than otherwise would have been needed, or less spending on 

other programs than otherwise would have occurred, or some combination thereof. See Note 11—Federal Debt Securities 

Held by the Public and Accrued Interest for further information related to the investments in federal debt securities. 

 
NOTES TO THE FINANCIAL STATEMENTS 132

Funds from Dedicated Collections as of September 30, 20191

Federal Federal 

Hospital Supplementary 

Federal Insurance Federal Medical 

Old-Age and Trust Disability Insurance 

Survivors Fund Insurance Trust Fund 

Insurance (Medicare Trust (Medicare 

Trust Fund Part A) Fund (Parts B and D) 

(In billions of dollars) (Combined) (Combined) (Combined) (Combined) 

Total assets ............................................ 2,905.8 236.9 125.1 141.3 

Total liabilities ......................................... 165.6 78.3 46.5 72.3 

Total net position ...................................... 2,740.2 158.6 78.6 69.0 

Gross cost ............................................. 893.2 321.0 142.7 346.8 

Program revenues .................................... - 4.1 - 102.6 

 Net cost ............................................ 893.2 316.8 142.7 244.2 

Total financing sources ............................... 3,633.4 475.4 221.3 313.2 

 Changes in net position .......................... 2,740.2 158.6 78.6 69.0 

1By law, certain expenses (costs), revenues, and other financing sources related to the administration of the above funds are not charged 

to the funds and are therefore financed and/or credited to other sources. 

Funds from Dedicated Collections as of September 30, 2018 (Restated)1

Federal Federal 

Hospital Supplementary 

Federal Insurance Federal Medical 

Old-Age and Trust Disability Insurance 

Survivors Fund Insurance Trust Fund 

Insurance (Medicare Trust (Medicare 

Trust Fund Part A) Fund (Parts B and D) 

(In billions of dollars) (Combined) (Combined) (Combined) (Combined) 

Total assets ............................................ 2,899.1 238.2 124.2 132.2 

Total liabilities ......................................... 156.4 71.7 51.3 66.4 

Total net position ...................................... 2,742.7 166.5 72.9 65.8 

Gross cost ............................................. 837.4 303.4 141.2 318.0 

Program revenues .................................... - 4.0 - 96.2 

 Net cost ............................................ 837.4 299.4 141.2 221.8 

Total financing sources ............................... 3,580.1 465.9 214.1 287.6 

Changes in net position ......................... 2,742.7 166.5 72.9 65.8 

1By law, certain expenses (costs), revenues, and other financing sources related to the administration of the above funds are not charged 

to the funds and are therefore financed and/or credited to other sources. 

 Depicted in the tables above is a breakout of OASI, HI, DI and Federal SMI Trust Funds. There funds are major funds 

from dedicated collections chosen based on their significant financial activity and importance to taxpayers. 
 133 NOTES TO THE FINANCIAL STATEMENTS

 Depicted below is a description of the major funds from dedicated collections shown in the above tables, which also 

identifies the government entities that administer each particular fund. For detailed information regarding funds from 

dedicated collections, please refer to the financial statements of the corresponding administering entities. For information on

the benefits due and payable liability associated with certain funds from dedicated collections, see Note 14—Benefits Due 

and Payable. 

Federal Old-Age and Survivors Insurance Trust Fund 

The OASI Trust Fund, administered by SSA, provides retirement and survivors benefits to qualified workers and their 

families. 

Payroll and self-employment taxes primarily fund the OASI Trust Fund. Interest earnings on Treasury securities, federal 

entities’ payments for the Social Security benefits earned by military and federal civilian employees, and Treasury payments for 

a portion of income taxes collected on Social Security benefits provide the fund with additional income. The law establishing the 

OASI Trust Fund and authorizing the depositing of amounts to the credit of the fund is set forth in 42 U.S.C. § 401. 

Federal Hospital Insurance Trust Fund 

(Medicare Part A) 

The HI Trust Fund, administered by HHS, finances the HI (Medicare Part A). This program funds the cost of inpatient 

hospital and related care for individuals age 65 or older who meet certain insured status requirements and individuals younger 

than age 65 with certain disabilities. 

The HI Trust Fund is financed primarily by payroll taxes, including those paid by federal entities. It also receives 

income from interest earnings on Treasury securities, a portion of income taxes collected on Social Security benefits, 

premiums paid by, or on behalf of, aged uninsured beneficiaries, and receipts from fraud and abuse control activities. Section 

1817 of the Social Security Act established the Medicare Hospital Trust Fund. 

Federal Disability Insurance Trust Fund 

The DI Trust Fund, administered by SSA, provides assistance and protection against the loss of earnings due to a wage 

earner’s disability in form of monetary payments. 

Like the OASI Trust Fund, payroll taxes primarily fund the DI Trust Fund. The fund also receives income from interest 

earnings on Treasury securities, federal entities’ payments for the Social Security benefits earned by military and federal 

civilian employees, and Treasury payments for a portion of income taxes collected on Social Security benefits. The law 

establishing the DI Trust Fund and authorizing the depositing of amounts to the credit of the fund is set forth in 42 U.S.C. § 

401. 

Federal Supplementary Medical Insurance Trust Fund 

(Medicare Parts B and D) 

The Federal SMI Trust Fund, administered by HHS, finances the SMI Program (Medicare Part B) and the Medicare 

Prescription Drug Benefit Program (Medicare Part D). These programs provide SMI for enrolled eligible participants to 

cover physician and outpatient services not covered by Medicare Part A and to obtain qualified prescription drug coverage, 

respectively. Medicare Part B financing is not based on payroll taxes; it is primarily based on monthly premiums, income 

from the General Fund, and interest earnings on Treasury securities. The Medicare SMI Trust Fund was established by 

Section 1841 of the Social Security Act. 

Medicare Part D was created by the Medicare Modernization Act of 2003 (P.L.108-173). Medicare Part D financing is 

similar to Part B; it is primarily based on monthly premiums and income from the General Fund, not on payroll taxes. The 

fund also receives transfers from states. 
NOTES TO THE FINANCIAL STATEMENTS 134

All Other Funds from Dedicated Collections 

The government is responsible for the management of numerous funds from dedicated collections that serve a wide 

variety of purposes. The funds from dedicated collections presented on an individual basis in the above tables represent the 

majority of the government’s net position attributable to funds from dedicated collections. All other activity attributable to 

funds from dedicated collections is aggregated in accordance with SFFAS No. 27, Identifying and Reporting Funds from 

Dedicated Collections, as amended by SFFAS No. 43, Funds from Dedicated Collections: Amending Statement of Federal 

Financial Accounting Standards 27, Identifying and Reporting Earmarked Funds. The majority entities with funds from 

dedicated collections within the “all other” aggregate, include the following: 

 HHS  RRB 

 DOT  DOE 

 DOL  HUD 

 DOI  DOJ

 Treasury  DOD 

 DHS 

In accordance with SFFAS No. 43, any funds established to account for pension, other retirement, or other postemployment benefits to civilian or military personnel are excluded from the reporting requirements related to funds from 

dedicated collections. 

The 2018 adjustments to beginning net position is $22.6 billion of which $20.0 billion was restated in fiscal year 2019. 

Certain amounts were restated to improve the consistency of entities combined presentation and to adequately represent 

intradepartmental eliminations of $9.0 billion. Certain amounts related to DOD have been restated which resulted in an 

adjustment to beginning net position for fiscal year 2018 of $11.0 billion. In fiscal year 2019, DOD brought offline 

adjustments from published component AFRs into its reporting system. This correction resulted in an adjustment between 

funds from dedicated collections and funds other than those from dedicated collections, with no effect on the consolidated 

total. 

In fiscal year 2019, the presentation methodology for Note 20—Funds from Dedicated Collections was changed to 

provide consistency among all entities. For comparative purposes, fiscal year 2018 was also restated. This restatement was 

primarily related to an increase in the total amount of federal assets and federal liabilities reported for Funds from Dedicated 

Collections. The majority of these increases came from SSA, DOT, EPA, and DOE due to intragovernmental transfers 

receivable and loans receivable.