215 OTHER INFORMATION (UNAUDITED)

• Repeal effects may depend on concurrent tax rate changes. Lowering or raising tax rates can decrease or increase the

estimated revenues from a particular provision. A $10,000 charitable contributions deduction is worth $3,500 in

corporate tax revenues at a 35.0 percent tax rate, but only $2,100 at a 21.0 percent tax rate.

A more comprehensive ranking, including rankings over a 10-year period, and descriptions of tax expenditures can be

found at the following location from Treasury’s Office of Tax Policy https://home.treasury.gov/policy-issues/tax-policy/taxexpenditures.

Unmatched Transactions and Balances

Unmatched Transactions and Balances as of September 30, 2021, and 2020

Restated

(In millions of dollars) 2021 2020

Statement of Operations and Changes in Net Position:

Custodial transfers non-exchange ................................................................ (532.4) ................................ (622.8) ..................................

Benefit program revenue/cost ................................................................................................ 651.5 ................................ 601.9 ........

Non-reciprocating................................................................................................ (3,761.3) ................................ 4,147.0 ..........................

Appropriations received/warrants issued................................................................ - ................................ 68.0 .........................

Custodial and non-entity collections transferred out/in ................................629.5 ................................ 1,003.9 .....................................

Accrual amounts collected/transferred in................................................................ (209.4) ................................ 326.8 .........................

Other................................................................................................................................ 3,057.0 ................................ 5,933.2 ............

(165.1) 11,458.0

Balance Sheet:

Custodial and non-entity liability/asset ................................................................ - ................................ (1,155.9) ............................

Accounts payable/receivable................................................................................................ 556.3 ................................ (65.0) ..........

Advances from/to others & deferred credits/prepayments ................................ (898.3)................................ (385.3)................................

Non-reciprocating................................................................................................ (320.2) ................................ (355.3) ..........................

Fund balance with Treasury................................................................................................ (899.2) ................................ (1,100.9) ...........

Other................................................................................................................................ (116.1) ................................ - ............

(1,677.5) (3,062.4)

Unmatched transactions and balances, net ................................................................ (1,842.6) ................................ 8,395.6 .......................

( ) Parentheses indicate a decrease to Net Position.

The unmatched transactions and balances are needed to balance the accrual-based financial statements. Both the

Statement of Operations and Changes in Net Position and the Balance Sheet include a line for the unmatched transactions and

balances, while the unmatched transactions and balances are recorded in existing lines in the Statement of Net Cost.

Transactions and balances between federal entities must be eliminated in consolidation to calculate the financial position of

the government. The amounts included in the table represent intra-governmental activity and balances that differed between

federal entity trading partners and often totaled significantly more in the absolute than the net amounts shown. The table also

reflects other consolidating adjustments and other adjustments that contributed to the unmatched transactions and balances

amount. A number of lines in the “Unmatched Transactions and Balances” table were adjusted to zero after intragovernmental difference analysis determined they were immaterial at or below $0.1 billion, and thus, are not reported in the

table above. The adjustments were added to, or subtracted from, gross cost in the Statement of Net Cost in the year they were

recorded. Unresolved intra-governmental differences (i.e., unmatched transactions and balances) result in errors in the

consolidated financial statements. The ultimate effect on the accrual-based financial statements of resolving and correcting

these differences has not been fully determined and could be material.

Unmatched transactions and balances between federal entities impact not only in the period in which differences

originate but also in the periods where differences are resolved. As a result, it would not be proper to conclude that increases
OTHER INFORMATION (UNAUDITED) 216

or decreases in the unmatched amounts shown in the “Unmatched Transactions and Balances” table reflect improvements or

deteriorations in the government’s ability to resolve intra-governmental transactions. The federal community considers the

identification and accurate reporting of intra-governmental activity a priority.

The FY 2020 Statement of Operations and Changes in Net Position section of the Unmatched Transactions and

Balances table is restated. A reevaluation of construction-in-progress was made based on DOD’s department-wide effort to

improve financial reporting. The prior year adjustment affected the Other line on the Unmatched Transactions and Balances

table as the adjustments were non-federal.

In FY 2021, a change in presentation has been made to the Unmatched Transactions and Balances table to be consistent

with how balances impact net position on the Balance Sheet and the Statement of Operations and Changes in Net Position.

The unmatched transactions and balances, net reflects the combined impact that each statement line has on the overall

net position of the Financial Report.