141 NOTES TO THE FINANCIAL STATEMENTS

Note 23. Funds from Dedicated Collections

Funds from Dedicated Collections as of September 30, 2021

Federal Federal Federal

Old-Age and Disability Medicare All Other Total Funds Total Funds

Survivors Insurance Insurance Funds from from Funds from from

Insurance Trust Trust Funds Dedicated Dedicated Dedicated Dedicated

Trust Fund Fund (Part A, B, D) Collections Collections Collections Collections

(In billions of dollars) (Combined) (Combined) (Combined) (Combined) (Combined)2 Eliminations (Consolidated)3

Assets:

Cash and other monetary 

assets.................................................................................................................................................................................

- - - 182.2 182.2 - 182.2

Accounts receivable, net ................................ 2.1 ................................ 3.1 15.6 ................................ 26.1 46.9 ................................ - ...........................

46.9 

Loans receivable, net ................................ - ................................ - - ................................ 2.3 2.3................................ - ...............................

2.3 

Inventory and related 

property, net .........................................................................................................................................................................

- - - 1.5 1.5 - 1.5

General property, plant 

and equipment, net..................................................................................................................................................................

- - 0.3 36.8 37.1 - 37.1

Investments ................................................................ - - ................................ - 35.3 ................................ 35.3 -................................ 35.3 ..........

Other assets4................................-................................ - 67.0 ................................ 30.5 ................................ 97.5 - ................................ 97.5 ........

Investments in Treasury 

securities, net of 

unamortized 

premiums/discounts.................................................................................................................................................................

2,755.9 98.0 306.8 238.7 3,399.4 - 3,399.4

Other federal assets ................................ 16.6 ................................ 0.7 233.1 ................................ 290.1 540.5................................ (175.7) ................................ 364.8 

Total assets ................................ 2,774.6................................ 101.8 622.8 ................................ 843.5 ................................ 4,342.7 (175.7)................................ 4,167.0 .........

Liabilities and net 

position:

Accounts payable ................................ - ................................ - 0.1................................ 5.0 ................................ 5.1 - ................................ 5.1 ...

Federal employee and 

veteran benefits payable ...........................................................................................................................................................

- - - 7.0 7.0 - 7.0

Environmental and 

disposal liabilities....................................................................................................................................................................

- - - 26.1 26.1 - 26.1

Benefits due and payable ................................ 87.4 20.5................................ 79.8 ................................ 17.6 205.3 ................................ - 205.3 ..........................

Insurance and guarantee 

program liabilities....................................................................................................................................................................

- - - 3.5 3.5 - 3.5

Other liabilities4................................ - ................................ - 0.8................................ 266.1 ................................ 266.9 - ................................ 266.9 ......

Federal liabilities................................ 6.2 ................................ 0.8 132.2................................ 202.8 ................................ 342.0 (175.7) ................................ 166.3 .....

Total liabilities................................ 93.6 ................................ 21.3 212.9................................ 528.1 ................................ 855.9 (175.7) ................................ 680.2 .......
NOTES TO THE FINANCIAL STATEMENTS 142

Funds from Dedicated Collections as of September 30, 2021, continued1

Federal Federal Federal

Old-Age and Disability Medicare All Other Total Funds Total Funds

Survivors Insurance Insurance Funds from from Funds from from

Insurance Trust Trust Funds Dedicated Dedicated Dedicated Dedicated

Trust Fund Fund (Part A, B, D) Collections Collections Collections Collections

(In billions of dollars) (Combined) (Combined) (Combined) (Combined) (Combined)2 Eliminations (Consolidated)3

Net position:

Total net position ................................ 2,681.0 ................................ 80.5 409.9................................ 315.4 3,486.8 ................................ - ................................ 3,486.8 ...

Total liabilities and net 

position .............................................................................................................................................................................

2,774.6 101.8 622.8 843.5 4,342.7 (175.7) 4,167.0

Change in net position:

Net position, beginning of 

period .................................................................................................................................................................................

2,741.0 78.6 364.9 289.9 3,474.4 - 3,474.4

Adjustments to beginning 

net position

Beginning net position, 

adjusted .............................................................................................................................................................................

2,741.0 78.6 364.9 289.9 3,474.4 - 3,474.4

Individual income taxes 

and tax withholdings ................................................................................................................................................................

831.1 141.2 302.0 - 1,274.3 - 1,274.3

Other taxes and 

miscellaneous earned 

revenue...............................................................................................................................................................................

- - (0.8) 124.6 123.8 - 123.8

Other changes in fund 

balance (e.g., 

appropriations, transfers)...........................................................................................................................................................

26.8 (1.9) 468.5 200.3 693.7 - 693.7

Federal non-exchange 

revenue...............................................................................................................................................................................

69.0 2.7 6.1 28.3 106.1 - 106.1

Total financing sources ................................ 926.9 142.0 ................................ 775.8 ................................ 353.2 2,197.9................................ - 2,197.9 ............................

Program gross costs and 

non-program expenses ................................ 986.9 140.1 ................................ 853.4 ................................ 402.9 2,383.3................................ (1.5) 2,381.8 .............................

Less: program revenue ................................ - ................................ - (122.6) ................................ (75.2) (197.8)................................ 1.5 (196.3) .............................

Net cost................................986.9 ................................ 140.1 ................................ 730.8 327.7 ................................ 2,185.5 ................................ - 2,185.5 ..............

Ending net position................................ 2,681.0 ................................ 80.5 409.9 ................................ 315.4 3,486.8................................ - ................................ 3,486.8 

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.

2The combined presentation does not eliminate intra-entity balances or transactions between funds from dedicated collections held by the

entity.

3The consolidated dedicated collections presentation eliminates balances and transactions between funds from dedicated collections

held by the entity, but does not eliminate balances or transactions between funds from dedicated collections and funds from other than

dedicated collections.

4Other assets and other liabilities include multiple line items on the Balance Sheet. 
143 NOTES TO THE FINANCIAL STATEMENTS

Funds from Dedicated Collections as of September 30, 2020

Federal Federal Federal

Old-Age and Disability Medicare All Other Total Funds Total Funds

Survivors Insurance Insurance Funds from from Funds from from

Insurance Trust Trust Funds Dedicated Dedicated Dedicated Dedicated

Trust Fund Fund (Part A, B, D) Collections Collections Collections Collections

(In billions of dollars) (Combined) (Combined) (Combined) (Combined) (Combined)2 Eliminations (Consolidated)3

Assets:

Cash and other monetary 

assets.................................................................................................................................................................................

- - - 69.9 69.9 - 69.9

Accounts receivable, net ................................ 2.1 ................................ 3.3 12.3 ................................ 22.4 40.1 ................................ - ...........................

40.1 

Loans receivable, net ................................ - ................................ - - ................................ 2.7 2.7................................ - ...............................

2.7 

Inventory and related 

property, net .........................................................................................................................................................................

- - - 1.6 1.6 - 1.6

General property, plant 

and equipment, net..................................................................................................................................................................

- - 0.2 35.5 35.7 - 35.7

Investments ................................................................ - - ................................ - 41.9 ................................ 41.9 -................................ 41.9 ..........

Other assets4................................-................................ - 103.6 ................................ 28.0 ................................ 131.6 - ................................ 131.6 ........

Investments in Treasury 

securities, net of 

unamortized 

premiums/discounts.................................................................................................................................................................

2,811.2 97.2 221.2 197.9 3,327.5 - 3,327.5

Other federal assets ................................ 17.7 ................................ 0.5 183.5 ................................ 272.0 473.7................................ (159.9) ................................ 313.8 

Total assets ................................ 2,831.0................................ 101.0 520.8 ................................ 671.9 ................................ 4,124.7 (159.9)................................ 3,964.8 .........

Liabilities and net 

position:

Accounts payable ................................ - ................................ - 0.1................................ 6.8 ................................ 6.9 - ................................ 6.9 ...

Federal employee and 

veteran benefits payable ...........................................................................................................................................................

- - - 2.8 2.8 - 2.8

Environmental and 

disposal liabilities....................................................................................................................................................................

- - - 25.9 25.9 - 25.9

Benefits due and payable ................................ 83.7 21.4 ................................ 70.1 ................................ 13.5 188.7 ................................ - 188.7 ..........................

Insurance and guarantee 

program liabilities....................................................................................................................................................................

- - - 9.0 9.0 - 9.0

Other liabilities4................................ - ................................ - 0.5................................ 152.2 ................................ 152.7 - ................................ 152.7 ......

Federal liabilities................................ 6.3 ................................ 1.0 85.2................................ 171.8 ................................ 264.3 (159.9) ................................ 104.4 .....

Total liabilities................................ 90.0 ................................ 22.4 155.9................................ 382.0 ................................ 650.3 (159.9) ................................ 490.4 .......
NOTES TO THE FINANCIAL STATEMENTS 144

Funds from Dedicated Collections as of September 30, 2020, continued1

Federal Federal Federal

Old-Age and Disability Medicare All Other Total Funds Total Funds

Survivors Insurance Insurance Funds from from Funds from from

Insurance Trust Trust Funds Dedicated Dedicated Dedicated Dedicated

Trust Fund Fund (Part A, B, D) Collections Collections Collections Collections

(In billions of dollars) (Combined) (Combined) (Combined) (Combined) (Combined)2 Eliminations (Consolidated)3

Net position:

Total net position ................................ 2,741.0 ................................ 78.6 364.9................................ 289.9 3,474.4 ................................ - ................................ 3,474.4 ...

Total liabilities and net 

position .............................................................................................................................................................................

2,831.0 101.0 520.8 671.9 4,124.7 (159.9) 3,964.8

Change in net position:

Net position, beginning of 

period .................................................................................................................................................................................

2,740.2 78.6 297.9 387.9 3,504.6 12.5 3,517.1

Adjustments to beginning 

net position

Changes in accounting 

principle...............................................................................................................................................................................

- - - - - (12.5) (12.5)

Beginning net position, 

adjusted .............................................................................................................................................................................

2,740.2 78.6 297.9 387.9 3,504.6 - 3,504.6

Individual income taxes 

and tax withholdings ................................................................................................................................................................

841.7 142.9 299.1 0.1 1,283.8 - 1,283.8

Other taxes and 

miscellaneous earned 

revenue...............................................................................................................................................................................

- 0.1 (1.3) 107.0 105.8 - 105.8

Other changes in fund 

balance (e.g., 

appropriations, transfers)...........................................................................................................................................................

29.5 (1.0) 429.6 98.0 556.1 (0.5) 555.6

Federal non-exchange 

revenue...............................................................................................................................................................................

74.6 2.8 2.1 28.2 107.7 - 107.7

Total financing sources ................................ 945.8 144.8 ................................ 729.5 ................................ 233.3 2,053.4................................ (0.5) 2,052.9 ............................

Program gross costs and 

non-program expenses ................................ 945.0 144.8 ................................ 779.8 ................................ 392.5 2,262.1................................ 0.4 2,262.5 .............................

Less: program revenue ................................ - ................................ - 117.3 ................................ 61.2 178.5................................ 0.9 .............................

179.4 

Net cost................................945.0 ................................ 144.8 ................................ 662.5 331.3 ................................ 2,083.6 (0.5) ................................ 2,083.1 ..............

Ending net position................................ 2,741.0 ................................ 78.6 364.9 ................................ 289.9 3,474.4................................ - ................................ 3,474.4 

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.

2The combined presentation does not eliminate intra-entity balances or transactions between funds from dedicated collections held by the

entity.

3The consolidated dedicated collections presentation eliminates balances and transactions between funds from dedicated collections

held by the entity, but does not eliminate balances or transactions between funds from dedicated collections and funds from other than

dedicated collections.

4Other assets and other liabilities include multiple line items on the Balance Sheet. 
145 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 additional information related to fiduciary activities, see

Note 24—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 intra-governmental 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 13—Federal Debt and Interest

Payable for additional information related to the investments in federal debt securities.

Below is a description of the major funds from dedicated collections, which also identifies the government entities that

administer each particular fund. For additional information regarding funds from dedicated collections, please refer to the

financial statements of the corresponding administering entities. For additional information on the benefits due and payable

liability associated with certain funds from dedicated collections, see Note 16—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.
NOTES TO THE FINANCIAL STATEMENTS 146

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 Medicare Insurance Trust Funds

(Medicare Parts A, B and D)

The HI Trust Fund, administered by HHS, finances 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.

The SMI Trust Fund, administered by HHS, finances the Medicare Part B and the Medicare Prescription Drug Benefit

Program (Medicare Part D). These programs provide SMI benefits 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.

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:

• DOT • RRB

• DOC • DOE

• DOI • HUD

• Treasury • DOJ

• DOD

In accordance with SFFAS No. 43, any funds established to account for pension, other retirement, or OPEB to civilian

or military personnel are excluded from the reporting requirements related to funds from dedicated collections.

The U.S. government elected to implement a change in accounting principle in FY 2020. SFFAS No. 27 allows

disclosure of funds from dedicated collections amounts to be shown combined or consolidated. In FY 2019 the funds from

dedicated collections disclosure used the combined method. In FY 2020 funds from dedicated collections amounts are
147 NOTES TO THE FINANCIAL STATEMENTS

reported as consolidated as shown in the table above and on Statements of Operations and Changes in Net Position. This

change in accounting principle increased funds from dedicated collections eliminations by $12.5 billion and decreased funds

from dedicated collections beginning net position by $12.5 billion.