FINANCIAL STATEMENTS 52

Financial Statements

of the United States Government

for the Fiscal Years Ended September 30,

2021, and 2020

The consolidated financial statements of the U.S. government were prepared using GAAP. These statements include the

accrual-based financial statements and the sustainability financial statements, which are discussed in more detail below, and

the related notes to the consolidated financial statements. Collectively, the accrual-based financial statements, the

sustainability financial statements, and the notes represent basic information that is deemed essential for the consolidated

financial statements to be presented in conformity with GAAP.

ACCRUAL-BASED FINANCIAL STATEMENTS

The accrual-based financial statements present historical information on what the federal government owns (assets) and

owes (liabilities) at the end of the year, what came in (revenues) and what went out (net costs) during the year, and how

accrual-based net operating costs of the federal government reconcile to the budget deficit and changes in its cash balance

during the year. The following sections discuss each of the accrual-based financial statements.

Statements of Net Cost

These statements present the net cost of the government operations for FYs 2021 and 2020. Costs and earned revenues

are categorized on the Statement of Net Cost by significant entity, providing greater accountability by showing the

relationship of the entities’ net cost to the government-wide net cost. Costs and earned revenues are presented in this

Financial Report on an accrual basis, while the budget presents outlays and receipts, generally on a cash basis. The focus of

the Budget of the U.S. is by entity. In reporting the Statement of Net Cost by entity, we are assisting the external users in

assessing the operating performance, budget integrity, stewardship, and systems and controls of the government.

The Statements of Net Cost contain the following four components:

• Gross cost—is the full cost of all the departments and entities excluding (gain)/loss from changes in assumptions.

These costs are assigned on a cause-and-effect basis, or reasonably allocated to the corresponding entities.

• Earned revenue—is exchange revenue resulting from the government providing goods and services to the public at a

price.

• (Gain)/loss from changes in assumptions—is the gain or loss from changes in long-term assumptions used to

measure the liabilities reported for federal civilian and military employee pensions, OPEB, and ORB, including

veterans’ compensation.

• Net cost—is computed by subtracting earned revenue from gross cost, adjusted by the (gain)/loss from changes in

assumptions.

Individual entity net cost amounts will differ from the entity’s financial statements primarily because of reallocations

completed at the government-wide level which are listed below.

• Employee benefit costs.

• Intra-governmental eliminations, as adjusted for buy/sell costs and related revenues.

• Imputed costs.

Because of its specific function, most of the employee benefit costs originally associated with the OPM have been

reallocated to the user entities for government-wide reporting purposes. The remaining costs for OPM on the Statements of

Net Cost are the administrative operating costs, the expenses from prior costs from health and pension plan amendments, and

the actuarial gains and losses, if applicable.

With regard to intra-governmental buy/sell costs and related revenues, the amounts recognized by each entity are added

to, and subtracted from, respectively, the individual entity non-federal net cost amounts in order to allocate the costs to the
 53 FINANCIAL STATEMENTS

entities that incurred the costs. GSA is the primary provider of goods and services to federal entities. GSA’s net cost is

adjusted for its intra-governmental buy/sell costs and related revenues. The remaining costs for GSA on the Statements of

Net Cost are administrative operating costs.

In addition, the intra-governmental imputed costs recognized for the receipt of goods and services, financed in whole or

part by the providing entities, are added to the individual entity non-federal net cost amounts. The most significant types of

imputed costs that are recorded relate to post-retirement and health benefits, FECA, and Treasury’s Judgment Fund. The

consolidated Statements of Net Cost is intended to show the full cost for each entity, therefore, the amount of these imputed

costs are added back to the reporting entities’ gross cost line item and subtracted from the applicable administering entities’

gross cost line item. These imputed costs have a net effect of zero on the Statements of Net Cost in the Financial Report.

The interest on securities issued by Treasury and held by the public is reported on Treasury’s financial statements, but

because of its importance and the dollar amounts involved, it is reported separately in these statements.

Statements of Operations and Changes in Net Position

These statements report the results of government operations (net operating costs). They include non-exchange

revenues, which are generated from transactions that do not require a government entity to give value directly in exchange for

the inflow of resources. The government does not “earn” the non-exchange revenue. These are generated principally by the

government’s sovereign power to tax, levy duties, and assess fines and penalties. These statements also include the net cost

reported in the Statements of Net Cost. They further include certain adjustments and unmatched transactions and balances

that affect the net position. These statements present information for funds from dedicated collections and funds other than

those from dedicated collections. Each of these types are presented on a consolidated basis whereby transactions within each

fund type are eliminated. In order to present the activity on a government-wide basis, transactions between funds from

dedicated collections and funds other than those from dedicated collections are eliminated.

Revenue

Inflows of resources to the government that the government demands or that it receives by donations are identified as

non-exchange revenue. The inflows that it demands include individual income tax and tax withholdings, corporate income

taxes, excise taxes, unemployment taxes, custom duties, and estate and gift taxes. The non-exchange revenue is recognized

when collected and adjusted for the change in amounts receivable.

Individual income tax and tax withholdings include FICA/SECA taxes and other taxes.

Individual income tax and tax withholding and Corporate income tax include the TCJA, which imposed a one-time tax

on previously unrepatriated foreign earnings at a reduced rate that taxpayers may elect to pay over an eight-year installment

schedule.

Excise taxes consist of taxes collected for various items, such as airline tickets, gasoline products, distilled spirits and

imported liquor, tobacco, firearms, and other items.

Other taxes and receipts include FRBs earnings, tax related fines, penalties and interest, and railroad retirement taxes.

Miscellaneous earned revenues consist of earned revenues received from the public with virtually no associated cost.

These revenues include rents and royalties on the Outer Continental Shelf Lands resulting from the leasing and development

of mineral resources on public lands.

Intra-governmental revenue represents interest earned from the investment of surplus dedicated collections, which

finance the deficit spending of all other fund’s non-dedicated operations. These investments are recorded as intragovernmental debt holdings and are included in Note 13—Federal Debt and Interest Payable, in the table titled Intragovernmental Debt Holdings: Federal Debt Securities Held as Investments by Government Accounts. These interest earnings

and the associated investments are eliminated in the consolidation process.

Net Cost of Government Operations

The net cost of government operations—gross cost (including gains/losses from changes in assumptions) less earned

revenue—flows through from the Statements of Net Cost.
FINANCIAL STATEMENTS 54

Intra-governmental Transfers

Intra-governmental transfers are transfers between funds other than those from dedicated collections and funds from

dedicated collections, such as intra-governmental interest and amounts required by statute to be transferred from the General

Fund to funds from dedicated collections. These intra-governmental transfers include appropriations, transfers, and other

financing sources. These amounts are labeled as “other changes in fund balance” in Note 23—Funds from Dedicated

Collections.

Net Operating Cost

The net operating cost equals revenue less net cost of government operations (that flows from the Statement of Net

Cost).

Net Position, Beginning of Period

The net position, beginning of period, reflects the amount reported on the prior year’s Balance Sheet as of the end of

that fiscal year. The net position, beginning of period, is shown at the combined level by fund type for FY 2020 and adjusted

through changes in accounting principle to report at a consolidated level by fund type. See Note 23—Funds from Dedicated

Collections for additional information.

Adjustments to beginning net position may include corrections of material errors or changes in accounting principles.

See Note 1.V—Changes in Accounting Principle and Note 1.W—Correction of Errors for additional information.

Unmatched transactions and balances are adjustments needed to bring the change in net position into balance due

primarily to unresolved intra-governmental differences. See Note 1.U—Unmatched Transactions and Balances for additional

information.

The unmatched transactions are to make the sum of net operating costs and adjustments to beginning net position for the

year equal to the change in net position balance. The unmatched balances are included in the net position, funds other than

those from dedicated collections on the Balance Sheet.

Net Position, End of Period

The net position, end of period, reflects the amount as of the end of the fiscal year. The net position for funds from

dedicated collections is separately shown.

Reconciliations of Net Operating Cost and Budget Deficit

These statements reconcile the results of operations (net operating cost) on the Statements of Operations and Changes in

Net Position to the budget deficit (result of outlays exceeding receipts during a particular fiscal year). The premise of the

reconciliation is that accrual accounting and budgetary accounting often share much of the same transactional data. However,

some transactions differ between the two bases of accounting and are presented as reconciling items from the net operating

cost to the budget deficit.

Receipts and outlays in the budget are measured primarily on a cash basis and differ from the accrual basis of

accounting used in the Financial Report. Refer to Note 1.B—Basis of Accounting and Revenue Recognition for additional

information on the accrual basis of accounting. These statements begin with the net results of operations (net operating cost)

and report activities where the basis of accounting for the components of net operating cost and the budget deficit differ.

Some presentations of the budget deficit make the distinction between on-budget and off-budget totals. On-budget totals

reflect the transactions of all government entities, except those excluded from the budget by law. Off-budget totals reflect the

transactions of government entities that are excluded from the on-budget totals by law. Under current law, the off-budget

totals include the Social Security trust funds and USPS. The budget deficit, as presented in the Financial Report, combines

the on-budget and off-budget totals to derive consolidated totals for federal activity.
 55 FINANCIAL STATEMENTS

Components of Net Operating Cost Not Part of the Budget Deficit

This information includes the operating components, such as the changes in benefits payable for veterans, military and

civilian employees, environmental and disposal liabilities, and depreciation expense, not included in the budget results.

Components of the Budget Deficit Not Part of Net Operating Cost

This information includes the budget components, such as the acquisition of capital assets (that are recorded as outlays

in the budget when cash is disbursed and reflected in net operating cost through depreciation expense over the useful life of

the asset) and increases in other assets that are not included in the operating results.

Statements of Changes in Cash Balance from Budget and Other

Activities

The primary purpose of these financial statements is to report how the annual budget deficit relates to the change in the

government’s cash and other monetary assets, as well as federal debt. It explains why the budget deficit normally would not

result in an equivalent change in the government’s cash and other monetary assets.

These statements reconcile the budget deficit to the change in cash and other monetary assets during the fiscal year.

They also serve to explain how the budget deficits were financed. These statements show the adjustments for non-cash

outlays included in the budget, and items affecting the cash balance not included in the budget, to explain the change in cash

and other monetary assets.

The budget deficit is primarily financed through borrowings from the public. When receipts exceed outlays, the

difference is a surplus. The budget treats borrowing and debt repayment as a means of financing, not as receipts and

outlays. The budget records outlays for the interest on the public issues of Treasury debt securities as the interest accrues,

not when the cash is paid.

Non-cash flow amounts in the budget related to loan financing account activity also reflect intra-governmental

transactions such as interest expense paid or interest revenue received from Treasury, entity year-end credit reform

subsidy reestimates, and the receipt of subsidy expense from program accounts. Cash flow from non-budget activities

related to loan financing account activity includes all cash flows to and from the public, including direct loan

disbursements/default payments to lenders, fees collected, principal and interest repayments, collections on defaulted

guarantee loans, and sale proceeds of foreclosed property. The budget totals exclude the transactions of the financing

accounts because they are not a cost to the government. However, since loan financing accounts record all credit cash

flows to and from the public, they affect the means of financing a budget deficit.

Balance Sheets

The Balance Sheets show the government’s assets, liabilities, and net position. When combined with stewardship

information, this information presents a more comprehensive understanding of the government’s financial position. The net

position for funds from dedicated collections is shown separately.

Assets

Assets included on the Balance Sheets are resources of the government that remain available to meet future needs. The

most significant assets that are reported on the Balance Sheets are loans receivable, net, general PP&E, net; accounts

receivable, net; and cash and other monetary assets. There are, however, other significant resources available to the

government that extend beyond the assets presented in these Balance Sheets. Those resources include stewardship PP&E in

addition to the government’s sovereign powers to tax and set monetary policy.
FINANCIAL STATEMENTS 56

Liabilities and Net Position

Liabilities are obligations of the government resulting from prior actions that will require financial resources. The most

significant liabilities reported on the Balance Sheets are federal debt and interest payable and federal employee and veteran

benefits payable. Liabilities also include environmental and disposal liabilities, benefits due and payable, loan guarantee

liabilities, as well as insurance and guarantee program liabilities.

As with reported assets, the government’s responsibilities, policy commitments, and contingencies are much broader

than these reported Balance Sheet liabilities. They include the social insurance programs reported in the SOSI and disclosed

in the unaudited RSI—Social Insurance section, fiscal long-term projections of non-interest spending reported in the SLTFP,

and a wide range of other programs under which the government provides benefits and services to the people of this nation,

as well as certain future loss contingencies.

The government has entered into contractual commitments requiring the future use of financial resources and has

unresolved contingencies where existing conditions, situations, or circumstances create uncertainty about future losses.

Commitments and contingencies that do not meet the criteria for recognition as liabilities on the Balance Sheets, but for

which there is at least a reasonable possibility that losses have been incurred, are disclosed in Note 21—Commitments and

Note 22—Contingencies.

Unmatched transactions and balances are adjustments needed to reconcile differences between assets and liabilities, that

are primarily due to unresolved intra-governmental differences. See Note 1.U—Unmatched Transactions and Balances for

additional information.

The collection of certain taxes and other revenue is credited to the corresponding funds from dedicated collections that

will use these funds to meet a particular government purpose. If the collections from taxes and other sources exceed the

payments to the beneficiaries, the excess revenue is invested in Treasury securities or deposited in the General Fund;

therefore, the trust fund balances do not represent cash. An explanation of the trust funds for social insurance is included in

Note 23—Funds from Dedicated Collections. That note also contains information about trust fund receipts, disbursements,

and assets.

Due to its sovereign power to tax and borrow, and the country’s wide economic base, the government has unique access

to financial resources through generating tax revenues and issuing federal debt securities. This provides the government with

the ability to meet present obligations and those that are anticipated from future operations and are not reflected in net

position.

The net position is the residual difference between assets and liabilities, adjusted for unmatched transactions and

balances reported in the Balance Sheet, and is the cumulative results of operations since inception. For detailed components

that comprise the net position, refer to the section “Statement of Operations and Changes in Net Position.”

SUSTAINABILITY FINANCIAL STATEMENTS

The sustainability financial statements are comprised of the SLTFP, covering all federal government programs, and the

SOSI and the SCSIA, covering social insurance programs (Social Security, Medicare, Railroad Retirement, and Black Lung

programs). The sustainability financial statements are designed to illustrate the relationship between projected receipts and

expenditures if current policy is continued over a 75-year time horizon.1In preparing the sustainability financial statements,

management selects assumptions and data that it believes provide a reasonable basis to illustrate whether current policy is

sustainable. Current policy is based on current law but includes several adjustments. In the SLTFP, notable adjustments to

current law are: 1) projected spending, receipts, and borrowing levels assume raising or suspending the current statutory limit

on federal debt; 2) continued discretionary appropriations are assumed throughout the projections period; 3) scheduled Social

Security and Medicare Part A benefit payments are assumed to occur beyond the projected point of trust fund depletion; and

4) many mandatory programs with expiration dates prior to the end of the 75-year projection period are assumed to be

reauthorized. In the Statement of Social Insurance, the one adjustment to current law is that scheduled Social Security and

Medicare Part A benefit payments are assumed to occur beyond the projected point of trust fund depletions. Assumptions

underlying such sustainability information do not consider changes in policy or all potential future events that could affect

future income, future expenditures, and, hence, sustainability. The projections do not reflect any adverse economic

consequences resulting from continuously rising debt levels. A large number of factors affect the sustainability financial

statements and future events and circumstances cannot be estimated with certainty. Therefore, even if current policy is

1 With the exception of the Black Lung program, which has a rolling 25-year projection period that begins on the September 30 valuation date each year.
 57 FINANCIAL STATEMENTS

continued, there will be differences between the estimates in the sustainability financial statements and actual results, and

those differences may be material. The unaudited RSI section of this report includes PV projections using different

assumptions to illustrate the sensitivity of the sustainability financial statements to changes in certain assumptions. The

sustainability financial statements are intended to help citizens understand current policy and the importance and magnitude

of policy reforms necessary to make it sustainable.

By accounting convention, General Fund transfers to Medicare Parts B and D reported in the SOSI are eliminated when

preparing the government-wide consolidated financial statements. The SOSI shows the projected General Fund transfers as

eliminations that, under current law, would be used to finance the remainder of the expenditures in excess of revenues for

Medicare Parts B and D reported in the SOSI. The SLTFP include all revenues (including general revenues) of the federal

government.

Statements of Long-Term Fiscal Projections

The SLTFP, including the corresponding Note and RSI, are intended to help readers of the government’s financial

statements assess the federal government’s financial condition and how it has changed during the year and may change in the

future. The statements and corresponding analysis are specifically designed to help readers assess whether future budgetary

resources will be sufficient to sustain public services and to meet obligations as they come due, assuming that current policy

for federal government services and taxation continues without change.

The SLTFP display the PV of 75-year projections by major category of receipts and non-interest spending. The

projections show the extent to which future receipts of the government exceed or fall short of the government’s non-interest

spending and are presented both in terms of PV dollars and in terms of PV dollars as a percent of PV GDP. The projections

reflect policies currently in place and are neither forecasts nor predictions. The projections are consistent with the projections

for Social Security and Medicare presented in the SOSI and are based on the same economic and demographic assumptions

that underlie the SOSI. The SLTFP display the fiscal gap, which is a summary measure of the change in receipts or noninterest spending that is necessary to reach a target ratio of debt held by the public to GDP at the end of the projection period.

Note 26—Long-Term Fiscal Projections, explains the methods used to prepare the projections. Unaudited RSI further

assesses the sustainability of current fiscal policy and provides results that are based on alternative assumptions to those used

in the SLTFP.

As discussed further in Note 26, a sustainable policy is one where the debt-to-GDP ratio is stable or declining over the

long term. Because GDP measures the size of the nation’s economy in terms of the total value of all final goods and services

that are produced in a year, the debt-to-GDP ratio is a useful indicator of the economy’s capacity to support federal

government’s services.

Statements of Social Insurance and Changes in Social Insurance

Amounts

SOSI provides estimates of the status of the most significant social insurance programs: Social Security, Medicare,

Railroad Retirement, and Black Lung.2 They are administered by SSA, HHS, RRB, and DOL, respectively. The SSA and

HHS projections are based on the intermediate economic and demographic assumptions representing the Trustees’ reasonable

estimates of likely future economic and demographic conditions, as set forth in the applicable Social Security and Medicare

Trustees’ Reports as well as in the financial statements of HHS and SSA. RRB’s projections are based on assumptions from

the 28

th Actuarial Valuation on the Assets and Liabilities Under the Railroad Retirement Acts of December 31, 2019, as well

as in RRB’s financial statements and DOL’s projections are based on assumptions disclosed in its financial statements.

The SCSIA show two reconciliations: 1) change from the period beginning on January 1, 2020 to the period beginning

on January 1, 2021; and 2) change from the period beginning on January 1, 2019 to the period beginning on January 1, 2020.

It reconciles the changes (between the current valuation and the prior valuation) in the PV of estimated future revenue less

estimated future expenditures for current and future participants (the open group measure) over the next 75 years (except

Black Lung which has a rolling 25-year projection period through September 30, 2046). The reconciliation identifies several

components of the changes that are significant and provides reasons for the changes in Note 25—Social Insurance.

2

In relation to the amounts presented in the SOSI and SCSIA, because the combined Railroad Retirement and Black Lung programs account for less than

one-quarter of 1.0 percent of the statement totals, they are not material from the government-wide perspective.
FINANCIAL STATEMENTS 58

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 59 FINANCIAL STATEMENTS

United States Government

Statement of Net Cost

for the Year Ended September 30, 2021 (Gain)/Loss

from

Gross Earned Changes in Net

(In billions of dollars) Cost Revenue Subtotal Assumption

s

Cost

Department of Health and Human Services ................................ 1,644.9 ................................ 137.7 1,507.2................................ 0.7 ..............................1,507.9 

Social Security Administration................................................................ 1,194.1 0.3................................ 1,193.8 ................................ - 1,193.8 ................

Department of Defense................................................................ 851.8 ................................ 44.0 807.8 ................................ 82.8 890.6 .........................

Department of the Treasury ................................................................ 854.6 23.8 ................................ 830.8 ................................ - 830.8...................

Department of Veterans Affairs ................................................................ 351.0 3.9................................ 347.1 346.3 ................................ 693.4 ..............

Department of Labor ................................................................ 396.8 ................................ - 396.8................................ - ............................396.8 

Interest on Treasury Securities Held by the Public................................ 392.0 ................................ - 392.0 ................................ - 392.0......................

Small Business Administration ................................................................ 350.5 3.1................................ 347.4 ................................ - 347.4 ...............

Department of Agriculture ................................................................ 239.4 ................................ 8.8 230.6 ................................ - 230.6.....................

Department of Education ................................................................ 243.0 ................................ 34.4 208.6 ................................ - 208.6......................

Office of Personnel Management................................................................ 134.0 26.3 ................................ 107.7 84.9................................ 192.6 ............

Department of Transportation ................................................................ 102.9 1.0................................ 101.9 ................................ - 101.9 ................

Department of Homeland Security ................................................................ 101.0 12.9 ................................ 88.1 1.6................................ 89.7 ..........

Security Assistance Accounts ................................................................ 92.9 14.4................................ 78.5 ................................ - 78.5 ................

Department of Justice ................................................................ 41.4 ................................ 2.6 38.8 ................................ - ..........................38.8 

Department of State................................................................ 40.2 ................................ 3.5 36.7................................ 1.9 .............................38.6 

Department of Energy ................................................................ 43.2 ................................ 6.2 37.0 ................................ - ..........................37.0 

Department of Housing and Urban Development ................................ 35.3 ................................ 1.9 33.4 ................................ - 33.4.......................

National Aeronautics and Space Administration ................................ 22.1 ................................ 0.3 21.8 ................................ - 21.8 .........................

Department of the Interior ................................................................ 23.8 ................................ 2.3 21.5 ................................ - 21.5.....................

Railroad Retirement Board ................................................................ 17.3 ................................ - 17.3 ................................ - 17.3....................

U.S. Agency for International Development................................ 16.0................................ - 16.0................................ - ...............................16.0 

Department of Commerce ................................................................ 15.5 ................................ 3.6 11.9 ................................ 0.1 12.0.....................

Federal Communications Commission................................11.7 ................................ 0.4 ................................ 11.3 - ................................ 11.3 .....

Environmental Protection Agency ................................................................ 8.9 0.4 ................................ 8.5 ................................ - 8.5 ...........

National Science Foundation ................................................................ 7.4 ................................ - 7.4 ................................ - 7.4 .................

U.S. Postal Service................................................................ 77.9 ................................ 75.7 2.2................................ - ..............................2.2 

Smithsonian Institution ................................................................ 1.5 ................................ 0.8 0.7 ................................ - .........................0.7 

Millennium Challenge Corporation ................................................................ 0.7 - ................................ 0.7 ................................ - 0.7 ..........

U.S. Nuclear Regulatory Commission ................................................................ 0.9 0.7 ................................ 0.2 - ................................ 0.2 ......

National Credit Union Administration ................................................................ 0.2 0.1 ................................ 0.1 - ................................ 0.1 .......

Securities and Exchange Commission ................................................................ 2.4 2.5 ................................ (0.1) - ................................ (0.1) .....

Export-Import Bank of the U.S................................................................. 0.5 0.7................................ (0.2) ................................ - (0.2) ...............

U.S. International Development Finance Corporation ................................ - 0.2 ................................ (0.2) ................................ - (0.2)..................

Farm Credit System Insurance Corporation ................................- ................................ 0.4 (0.4) ................................ - ..............................(0.4) 

General Services Administration................................................................ (0.1) 0.9 ................................ (1.0) ................................ - (1.0) .............

Tennessee Valley Authority ................................................................ 8.8 10.4 ................................ (1.6) ................................ - (1.6)...................

Federal Deposit Insurance Corporation ................................................................ 1.7 7.1 ................................ (5.4) - ................................ (5.4) ....

National Railroad Retirement Investment Trust................................ 0.1 ................................ 6.6 (6.5) ................................ - ..........................(6.5) 

Pension Benefit Guaranty Corporation ................................(56.5) ................................ 22.6 ................................ (79.1) - ................................ (79.1) .....

All other entities ................................................................ 24.9................................ 1.8 23.1 ................................ 0.1 ................................ 23.2 ..

Total................................................................................................ 7,294.7 462.3................................ 6,832.4 ................................ 518.4 7,350.8 .................

The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS 60

United States Government

Statement of Net Cost

for the Year Ended September 30, 2020 (Restated) (Gain)/Loss

from

Gross Earned Changes in Net

(In billions of dollars) Cost Revenue Subtotal Assumptions Cost

Department of Health and Human Services ................................ 1,537.0................................ 130.0 1,407.0................................ 0.1 ...............................1,407.1 

Social Security Administration................................................................ 1,157.6 0.3................................ 1,157.3 ................................ - 1,157.3 .................

Department of Defense ................................................................ 803.0 ................................ 39.8 763.2 ................................ (17.4) 745.8 .........................

Department of the Treasury................................................................ 581.3 ................................ 20.6 560.7 ................................ - 560.7....................

Department of Veterans Affairs ................................................................ 386.5 4.0................................ 382.5 602.7 ................................ 985.2 ...............

Department of Labor................................................................ 493.2 ................................ - 493.2................................ - .............................493.2 

Interest on Treasury Securities Held by the Public ................................ 371.1 ................................ - 371.1 ................................ - 371.1......................

Small Business Administration................................................................ 562.1 3.1................................ 559.0 ................................ - 559.0 ................

Department of Agriculture ................................................................ 198.0 ................................ 10.1 187.9 ................................ - 187.9......................

Department of Education ................................................................ 190.2 ................................ 33.3 156.9 ................................ - 156.9.......................

Office of Personnel Management ................................................................ 97.3 25.2 ................................ 72.1 89.9................................ 162.0 ............

Department of Transportation ................................................................ 108.8 1.1................................ 107.7 ................................ - 107.7 .................

Department of Homeland Security ................................................................ 122.3 11.8 ................................ 110.5 3.1................................ 113.6 ...........

Security Assistance Accounts ................................................................ 154.8 42.8................................ 112.0 ................................ - 112.0 .................

Department of Justice ................................................................ 39.1 ................................ 1.8 37.3 ................................ - ...........................37.3 

Department of State ................................................................ 34.6 ................................ 2.8 31.8................................ 1.1 .............................32.9 

Department of Energy ................................................................ 60.9 ................................ 5.4 55.5 ................................ - ...........................55.5 

Department of Housing and Urban Development ................................ 36.3 ................................ 2.2 34.1 ................................ - 34.1 ........................

National Aeronautics and Space Administration................................ 22.3 ................................ 0.2 22.1 ................................ - ..........................22.1 

Department of the Interior ................................................................ 23.0 ................................ 2.4 20.6 ................................ - 20.6......................

Railroad Retirement Board................................................................ 13.1 ................................ - 13.1 ................................ - 13.1.....................

U.S. Agency for International Development ................................ 13.8................................ - 13.8................................ - ...............................13.8 

Department of Commerce................................................................ 19.4 ................................ 3.9 15.5 ................................ - 15.5......................

Federal Communications Commission................................................................ 13.9 0.4 ................................ 13.5 - ................................ 13.5 ......

Environmental Protection Agency ................................................................ 9.1 0.4 ................................ 8.7 ................................ - 8.7 ............

National Science Foundation................................................................ 7.3 ................................ - 7.3 ................................ - 7.3 ..................

U.S. Postal Service ................................................................ 79.2 ................................ 71.7 7.5................................ - ..............................7.5 

Smithsonian Institution ................................................................ 1.5 ................................ 0.5 1.0 ................................ - ..........................1.0 

Millennium Challenge Corporation ................................................................ 0.6 - ................................ 0.6 ................................ - 0.6 ...........

U.S. Nuclear Regulatory Commission................................................................ 0.9 0.7 ................................ 0.2 - ................................ 0.2 .......

National Credit Union Administration................................................................ 0.3 0.2 ................................ 0.1 -................................ 0.1 ........

Securities and Exchange Commission................................................................ 2.2 3.3 ................................ (1.1) - ................................ (1.1) ......

Export-Import Bank of the U.S. ................................................................ 0.8 0.4................................ 0.4 ................................ - 0.4 ...............

U.S. International Development Finance Corporation................................ - ................................ 0.1 (0.1) ................................ - (0.1)...................

Farm Credit System Insurance Corporation ................................ 0.1................................ 0.2 (0.1) ................................ - ...............................(0.1) 

General Services Administration ................................................................ 0.3 0.8 ................................ (0.5) ................................ - (0.5) .............

Tennessee Valley Authority................................................................ 8.8 ................................ 10.1 (1.3) ................................ - (1.3)....................

Federal Deposit Insurance Corporation................................................................ 1.7 6.5 ................................ (4.8) - ................................ (4.8) .....

National Railroad Retirement Investment Trust................................ 0.1 ................................ 1.8 (1.7)................................ - ...........................(1.7) 

Pension Benefit Guaranty Corporation................................................................ 19.2 22.0 ................................ (2.8) - ................................ (2.8) ......

All other entities ................................................................23.4 ................................ 1.7 ................................ 21.7 - ................................ 21.7 ...

Total................................................................................................ 7,195.1 461.6 ................................ 6,733.5 ................................ 679.5 7,413.0 ..................

The accompanying notes are an integral part of these financial statements.
 61 FINANCIAL STATEMENTS

United States Government

Statement of Operations and Changes in Net Position

for the Year Ended September 30, 2021 (Consolidated)

Funds other than Funds from

those from Dedicated

Dedicated Collections

Collections (Note 23) Eliminations Total

(In billions of dollars) 2021

Revenue (Note 20):

Individual income tax and tax withholdings ................................2,002.0 ................................ 1,274.3................................ - ...............................3,276.3 

Corporate income taxes ................................................................ 456.2................................ - ................................ - 456.2 .......................

Excise taxes ................................................................................................ 28.6 ................................ 52.0 -................................ 80.6 ......

Unemployment taxes................................................................6.1 ................................ 44.2 ................................ - ...........................50.3 

Customs duties ................................................................................................ 80.0 ................................ 0.1 - ................................ 80.1 ..

Estate and gift taxes................................................................27.1 ................................-................................ - ............................27.1 

Other taxes and receipts ................................................................ 163.4 ................................ 27.3 ................................ - 190.7......................

Miscellaneous earned revenues................................................................ 94.4 ................................ 0.2 ................................ - 94.6 .............

Intra-governmental revenue ................................................................ - ................................ 106.1 ................................ (106.1) - ..................

Total revenue................................................................................................ 2,857.8 1,504.2 ................................ (106.1)................................ 4,255.9 .....

Net Cost of Government Operations:

Net cost ................................................................................................ 5,165.3 ................................ 2,185.5 ................................ - 7,350.8 ............

Intra-governmental cost ................................................................ 106.1................................ - ................................ (106.1) .......................- 

Total net cost ................................................................................................ 5,271.4 2,185.5 ................................ (106.1)................................ 7,350.8 .....

Intra-governmental transfers................................................................ (693.7) ................................ 693.7 ................................ - - .................

Net operating (cost)/revenue................................................................ (3,107.3) ................................ 12.4 ................................ - (3,094.9) .................

Net position, beginning of period................................................................ (30,265.8) ................................ 3,474.4 ................................ - (26,791.4) ...........

Adjustments to beginning net position

Changes in accounting principle (Note 1.V) ................................0.7 ................................- ................................ - ...........................0.7 

Net operating (cost)/revenue ................................................................ (3,107.3) ................................ 12.4 ................................ - (3,094.9) .................

Unmatched transactions and balances

(Note 1.U)................................................................................................ (0.2) ................................ - ................................ - (0.2) .......

Net position, end of period ................................................................ (33,372.6) ................................ 3,486.8 ................................ - (29,885.8)...................

The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS 62

United States Government

Statement of Operations and Changes in Net Position

for the Year Ended September 30, 2020 (Consolidated) (Restated)

Funds other than Funds from

those from Dedicated

Dedicated Collections

Collections (Note 23) Eliminations Total

(In billions of dollars) 2020

Revenue (Note 20):

Individual income tax and tax withholdings ................................1,570.8 ................................ 1,283.8................................ - ...............................2,854.6 

Corporate income taxes ................................................................ 317.1................................ - ................................ - 317.1 .......................

Excise taxes ................................................................................................ 40.8 ................................ 52.2 -................................ 93.0 ......

Unemployment taxes................................................................6.2 ................................ 34.5 ................................ - ...........................40.7 

Customs duties ................................................................................................ 66.2 ................................ 0.1 - ................................ 66.3 ..

Estate and gift taxes................................................................17.6 ................................-................................ - ............................17.6 

Other taxes and receipts ................................................................ 147.0 ................................ 18.9 ................................ - 165.9......................

Miscellaneous earned revenues................................................................ 16.3 ................................ 0.1 ................................ - 16.4 .............

Intra-governmental revenue ................................................................ - ................................ 107.7 ................................ (107.7) - ..................

Total revenue................................................................................................ 2,182.0 1,497.3 ................................ (107.7)................................ 3,571.6 .....

Net Cost of Government Operations:

Net cost ................................................................................................ 5,329.9 ................................ 2,083.1 ................................ - 7,413.0 ............

Intra-governmental cost ................................................................ 107.7................................ - ................................ (107.7) .......................- 

Total net cost ................................................................................................ 5,437.6 2,083.1 ................................ (107.7)................................ 7,413.0 .....

Intra-governmental transfers................................................................ (555.6) ................................ 555.6 ................................ - - .................

Net operating (cost)/revenue................................................................ (3,811.2) ................................ (30.2) ................................ - (3,841.4) .................

Net position, beginning of period* ................................................................ (26,484.6) ................................ 3,517.1 ................................ - (22,967.5) .........

Adjustments to beginning net position

Changes in accounting principle (Note 1.V) ................................12.5 ................................ (12.5)................................ - ...........................- 

Correction of errors (Note 1.W) ................................................................ 6.0 ................................ - ................................ - 6.0 ..........

Net operating (cost)/revenue ................................................................ (3,811.2) ................................ (30.2) ................................ - (3,841.4) .................

Unmatched transactions and balances

(Note 1.U) ................................................................................................ 11.5 ................................ - -................................ 11.5 ......

Net position, end of period................................................................ (30,265.8) ................................ 3,474.4 ................................ - (26,791.4)....................

*Net position, beginning of period is presented above as combined. 

The accompanying notes are an integral part of these financial statements.
 63 FINANCIAL STATEMENTS

United States Government

Reconciliations of Net Operating Cost and Budget Deficit

for the Years Ended September 30, 2021, and 2020

Restated

(In billions of dollars) 2021 2020

Net operating cost ................................................................................................................................ (3,094.9) ...............................(3,841.4) 

Components of net operating cost not part of the budget deficit

Excess of accrual-basis expenses over budget outlays

* Federal employee and veteran benefits payable

Pension and accrued benefits ................................................................................................ 282.0 ................................ 160.1 .........

Veterans compensation and burial benefits ................................................................................................ 439.2 733.3 ........................

Post-retirement health and accrued benefits................................................................................................ 28.7 22.0 .......................

Other benefits ................................................................................................................................ 17.6 ..............................59.8 

Subtotal - federal employee and veteran benefits payable ................................................................ 767.5 ................................ 975.2 ..

* Insurance and guarantee program liabilities ................................................................................................ (69.5) .........................4.8 

* Environmental and disposal liabilities................................................................................................ 10.6 ................................ 7.3 ...

* Accounts payable ................................................................................................................................ 24.1 ...........................1.0 

* Benefits due and payable ................................................................................................................................ 17.6 32.7 .................

* Advances from others and deferred revenue ................................................................................................ 27.8 (0.8) ........................

* Other liabilities ................................................................................................................................ 283.1 ...............................58.7 

Subtotal - excess of accrual-basis expenses over budget outlays ................................................................ 1,061.2 1,078.9 .........................

Amortized expenses not included in budget outlays

Property, plant, and equipment depreciation expense ................................................................ 91.2................................ 77.2 ............

Other expenses that are not reported as budget outlays

Property, plant, and equipment disposals and revaluations ................................................................ (9.8) ................................ (50.2) .....

Excess of accrual-basis revenue over budget receipts

Accounts receivable, net ................................................................................................................................ (11.8) 7.9 ..................

Taxes receivable, net ................................................................................................................................ (68.0) (91.1) .......................

Other losses/(gains) and cost/(revenue) that are not budget receipts

* Investments in government-sponsored enterprises ................................................................(112.0) ................................ 3.2 ................

Subtotal - components of net operating cost not part of budget deficit ................................................................ 950.8 1,025.9...................

Components of the budget deficit that are not part of net operating cost

Budget receipts not included in net operating cost

Credit reform and other loan activities ................................................................................................ (75.1) ................................ 44.9 .

Budget outlays not included in net operating cost

Acquisition of capital assets................................................................................................ (118.4) ................................ (60.0) ...............

* Investments ................................................................................................................................ (5.4) ................................ (11.5) ...

* Inventory and related property, net ................................................................................................ (17.3) ................................ (26.2) .....

* Advances and prepayments ................................................................................................ (150.7) ................................ (150.6) .............

* Other assets ................................................................................................................................ 4.0 ................................ (0.1) ..

Subtotal - components of the budget deficit that are not part of net operating cost ...................................................................

(362.9) (203.5)

Adjustments to beginning net position 0.7 6.0

Other

Allocations of special drawing rights ................................................................................................ (112.1) ................................ (1.5) ....

Effect of uninvested principal from the Thrift Savings Plan's G Fund ................................................................ (156.7) ..........................

- 

All other reconciling items ................................................................................................................................ (0.5) (117.4) .................

Total other ................................................................................................................................ (269.3) ................................ (118.9) .....

Budget deficit1................................................................................................................................ (2,775.6) ................................ (3,131.9) .....

................................ 1 ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ .....................................................................................................

The FY 2021 budget deficit differs from the FY 2021 budget deficit reported in the MTS because of approximately $3.4 billion of outlays that

were not recorded in the MTS until FY 2022.

*The amounts represent the year over year net change in the Balance Sheet line items. 

The accompanying notes are an integral part of these financial statements. 
FINANCIAL STATEMENTS 64

United States Government

Statements of Changes in Cash Balance from Budget and Other Activities

for the Years Ended September 30, 2021, and 2020

(In billions of dollars) 2021 2020

Cash flow from budget activities

Total budget receipts................................................................................................................................ 4,046.0 3,420.0 ...........................

Total budget outlays1................................................................................................................................ (6,821.6) (6,551.9) ...........................

Budget deficit1................................................................................................................................ (2,775.6) ................................ (3,131.9) ....

Adjustments for non ................................ -cash outlays ................................ included in the budget .......................................................................................................................

Non-cash flow amounts in the budget related to federal debt 

Accrued interest ................................................................................................................................ 293.4 ................................ 312.1 .

Net amortization................................................................................................................................ 12.1 ................................ 40.9 .

Other ................................................................................................................................................................ 82.3 63.1 ...............

Subtotal - adjustments for non-cash flow amounts in the budget related to federal debt................................ 387.8 ................................ 416.1 .....

Non-cash flow amounts in the budget related to loan financing account activity

Interest revenue on uninvested funds ................................................................................................ 12.8 ................................ 23.3 .....

Interest expense on entity borrowings ................................................................................................ (47.4) ................................ (57.6) .....

Downward reestimates /negative subsidy payments ................................................................................................ (58.1) (28.9)..................

Subsidy expense/upward reestimates ................................................................................................ 456.4 ................................ 713.6 .....

Subtotal - adjustments for non-cash flow amounts in the budget related to loan

financing account activity ................................................................................................................................ 363.7 650.4.....................

Total of adjustments for non-cash outlays included in the budget ................................................................ 751.5 ................................ 1,066.5 ....

Cash flow from activities not included in the budget

Cash flow from non-budget activities related to federal debt

Interest paid ................................................................................................................................ (294.8) ................................ (314.7) .....

Subtotal - cash flow from non-budget activities related to federal debt ................................................................ (294.8) (314.7) ...........................

Cash flow from non-budget activities related to loan financing account activity

Loan disbursements/default payments ................................................................................................ (823.0) ................................ (387.0) ....

Fees ................................................................................................................................................................ 27.5 26.6 ................

Principal & interest repayments ................................................................................................78.1 ................................ 112.0 .............

Other collections on defaulted loans receivable and sale of foreclosed property................................................................ 2.2 4.3 ...............

Special purpose vehicle disbursements................................................................................................ (14.9) ................................ (105.5) ...

Repayments of special purpose vehicle investments................................................................................................ 77.7 - ..................

Subtotal - cash flow from non-budget activities related to loan financing account activity ...................................................................

(652.4) (349.6)

Cash flow from financing federal debt

Borrowings................................................................................................................................ 20,375.7................................ 18,969.1 ........

Repayments ................................................................................................................................ (19,194.0) ................................ (14,822.4) ......

Discount/premium................................................................................................................................ (11.7) ...............................(32.5) 

Effect of uninvested principal from the Thrift Saving Plan's G Fund ................................................................ 156.7 ...............................- 

Subtotal - cash flow from financing federal debt ................................................................................................ 1,326.7 4,114.2 ........................

Total cash flow from activities not included in the budget ................................................................379.5 ................................ 3,449.9 ...............

................................ Other ............................................................. ............................................................. ............................................................. ............................................................. ..............................................................................

Allocations of special drawing rights ................................................................................................ 112.1................................ 1.5 ..........

All other reconciling items ................................................................................................................................ 80.6 16.3 .......................

Total other ................................................................................................................................ 192.7................................ 17.8 ...........

Change in cash and other monetary assets balance ................................................................................................ (1,451.9) 1,402.3....................

Beginning cash and other monetary assets balance ................................................................................................ 1,926.9 524.6.....................

Ending cash and other monetary assets balance ................................................................................................ 475.0 1,926.9 .........................

1The FY 2021 budget deficit differs from the FY 2021 budget deficit reported in the MTS because of approximately $3.4 billion of outlays that

were not recorded in the MTS until FY 2022.

The accompanying notes are an integral part of these financial statements.
 65 FINANCIAL STATEMENTS

United States Government

Balance Sheets

as of September 30, 2021, and 2020

Restated

(In billions of dollars) 2021 2020

Assets:

Cash and other monetary assets (Note 2)................................................................................................ 475.0 ................................ 1,926.9 

Accounts receivable, net (Note 3)................................................................................................ 401.0 ................................ 321.2 ...........

Loans receivable, net (Note 4)................................................................................................ 1,651.0 ................................ 1,577.4 ...............

Inventory and related property, net (Note 5) ................................................................................................ 399.2 .............................381.9 

General property, plant and equipment, net (Note 6) ................................................................ 1,176.9................................ 1,139.9 ..................

Investments (Note 7) ................................................................................................................................ 135.2 ...........................129.8 

Investments in special purpose vehicles (Note 8) ................................................................26.4 ................................ 108.4......................

Investments in government-sponsored enterprises (Note 9)................................................................ 220.9 ................................ 108.9 .........

Advances and prepayments (Note 10) ................................................................................................ 369.3 ................................ 218.6 ....

Other assets (Note 11)................................................................................................................................ 38.7 .........................42.7 

Total assets ................................................................................................................................ 4,893.6 ................................ 5,955.7 ....

Stewardship property, plant, and equipment (Note 27)

Liabilities:

Accounts payable (Note 12)................................................................................................ 123.1................................ 99.0 ..................

Federal debt and interest payable (Note 13)................................................................................................ 22,344.8 21,082.9 .............................

Federal employee and veteran benefits payable (Note 14) ................................................................ 10,183.0 ................................ 9,415.5 ..........

Environmental and disposal liabilities (Note 15)................................................................................................ 613.3 602.7 .........................

Benefits due and payable (Note 16)................................................................................................ 273.9 ................................ 256.3 ........

Loan guarantee liabilities (Note 4) ................................................................................................ 230.7 ................................ 520.1 ..........

Insurance and guarantee program liabilities (Note 17) ................................................................ 129.8 ................................ 199.3 ................

Advances from others and deferred revenues (Note 18) ................................................................ 202.0 ................................ 174.2 .............

Other liabilities (Note 19)................................................................................................ 677.1 ................................ 394.0......................

Total liabilities................................................................................................................................ 34,777.7 ................................ 32,744.0 ..

Commitments (Note 21) and Contingencies (Note 22) 

Unmatched transactions and balances (Note 1.U)................................................................1.7................................ 3.1....................

Net Position:

Funds from Dedicated Collections (Note 23)................................................................................................ 3,486.8 .............................3,474.4 

Funds other than those from Dedicated Collections ................................................................ (33,372.6) ................................ (30,265.8)...................

Total net position................................................................................................................................ (29,885.8) (26,791.4) ..............................

Total liabilities and net position*................................................................................................ 4,893.6 ................................ 5,955.7 .............

*Total liabilities and net position equals Total liabilities, Total net position and Unmatched transactions and balances.

The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS 66

United States Government

Statements of Long-Term Fiscal Projections (Note 26)

Present Value of 75-Year Projections as of September 30, 2021 and 20201

In trillions of dollars Percent of GDP2

2021 2020 Change 2021 2020 Change

Receipts:

Social Security payroll taxes ................................ 72.9................................ 68.5 ................................ 4.4 4.2 ................................ 4.2 0.1 ...............

Medicare payroll taxes................................................................ 24.5 22.9 ................................ 1.5 1.4................................ 1.4 .......................- 

Individual income taxes ................................................................ 190.9 164.4 ................................ 26.5 11.1 ................................ 10.0 1.1.....................

Corporation income taxes ................................23.0 ................................ 21.0 ................................ 2.0 1.3 ................................ 1.3 0.1 ..................

Other receipts................................................................ 21.6 ................................ 18.6 3.0 ................................ 1.3 1.1 ................................ 0.1 ..

Total receipts................................................................ 332.8 ................................ 295.4 37.3 ................................ 19.3 18.0 ................................ 1.3 ........

Non-interest spending:

Social Security................................................................ 102.9 ................................ 95.2 7.7 ................................ 6.0 5.8 ................................ 0.2 .

Medicare Part A3................................................................ 34.9 32.6................................ 2.3 ................................ 2.0 2.0 ..............................- 

Medicare Parts B & D4................................................................ 48.6 45.2 ................................ 3.4 2.8................................ 2.7 0.1 .......................

Medicaid................................................................ 51.7 ................................ 37.4 14.2................................ 3.0 2.3 ................................ 0.7 .........

Other mandatory ................................................................ 70.6 58.5................................ 12.1 ................................ 4.1 3.6 ..............................0.5 

Defense discretionary................................................................ 54.4 53.6 ................................ 0.8 3.2................................ 3.3 (0.1) ........................

Non-defense discretionary ................................67.3 ................................ 52.4 ................................ 14.9 3.9 ................................ 3.2 0.7 .................

Total non-interest spending ................................................................ 430.4 374.9 ................................ 55.4 25.0 ................................ 22.8 2.2.....................

Receipts less non-interest spending ................................ (97.6) ................................ (79.5) (18.1) ................................ (5.7) (4.8)................................ (0.8) ......

Fiscal gap5................................................................................................................................ (6.2) (5.4) ................................ (0.8) ..........

175-year present value projections for 2021 are as of 9/30/2021 for FYs 2022-2096; projections for 2020 are as of 9/30/2020 for FYs 2021-

2095.

2The 75-year present value of nominal GDP, which drives the calculations above is $1,724.4 trillion starting in FY 2022, and was $1,645.1

trillion starting in FY 2021.

3Represents portions of Medicare supported by payroll taxes.

4Represents portions of Medicare supported by general revenues. Consistent with the President's Budget, outlays for Parts B & D are

presented net of premiums.

5To prevent the debt-to-GDP ratio from rising over the next 75 years, a combination of non-interest spending reductions and receipt increases

that amounts to 6.2 percent of GDP on average is needed (5.4 percent of GDP on average in 2020). See Note 26—Long-Term Fiscal

Projections.

Totals may not equal the sum of components due to rounding. 

The accompanying notes are an integral part of these financial statements.
 67 FINANCIAL STATEMENTS

United States Government

Statements of Social Insurance (Note 25)

Present Value of Long-Range (75 Years, except Black Lung) Actuarial Projections

(In trillions of dollars) 2021 2020 2019 2018 2017

Federal Old-Age, Survivors and Disability Insurance (Social 

Security):11

Revenue (Contributions and Dedicated Taxes) from:

Participants who have attained eligibility age (age 62 and over) ................................ 1.8 1.7 ................................ 1.5 1.5 ................................ 1.4 .

Participants who have not attained eligibility age................................37.5 ................................ 35.2 33.6................................ 31.6 30.2.....................

Future participants................................................................................................ 39.3 37.0 ................................ 35.3 31.8 ............................30.5 

All current and future participants ................................................................ 78.6 ................................ 73.9 70.4 64.9 ................................ 62.1 ........

Expenditures for Scheduled Future Benefits for:

Participants who have attained eligibility age (age 62 and over) ................................ (19.8) (18.3)................................ (16.9) (15.9)................................ (14.7) .

Participants who have not attained eligibility age................................ (64.9) ................................ (59.8) (55.8) ................................ (52.2) (50.2) .....................

Future participants................................................................................................ (16.6) (15.5) ................................ (14.5) (13.0) ............................(12.6) 

All current and future participants ................................................................ (101.3) (93.6) ................................ (87.2) (81.1) ................................ (77.5) ........

Present value of future expenditures in excess of future

revenue ................................................................................................ (22.7) ............................................................................

1

(19.7)2(16.8)3(16.2)4(15.4)5

Federal Hospital Insurance (Medicare Part A):11

Revenue (Contributions and Dedicated Taxes) from:

Participants who have attained eligibility age (age 65 and over) ................................ 0.7 0.6 ................................ 0.6 0.5 ................................ 0.5 .

Participants who have not attained eligibility age................................13.0 ................................ 12.5 12.0................................ 11.3 10.6.....................

Future participants................................................................................................ 13.0 12.5 ................................ 11.8 11.0 ............................10.6 

All current and future participants ................................................................ 26.7 ................................ 25.6 24.4 22.8 ................................ 21.7 ........

Expenditures for Scheduled Future Benefits for:

Participants who have attained eligibility age (age 65 and over) ................................ (6.2) (6.1)................................ (5.3) (5.0)................................ (4.5) .

Participants who have not attained eligibility age................................ (20.9) ................................ (20.1) (20.0) ................................ (18.6) (17.2) .....................

Future participants................................................................................................ (4.6) (4.2) ................................ (4.5) (3.9) ............................(3.5) 

All current and future participants ................................................................ (31.7) (30.4) ................................ (29.8) (27.5) ................................ (25.2) ........

Present value of future expenditures in excess of future 

revenue ................................................................................................ (5.0) ............................................................................

1

(4.8)2(5.4)3(4.7)4(3.5)5

Federal Supplementary Medical Insurance (Medicare Part B):11

Revenue (Premiums) from:

Participants who have attained eligibility age (age 65 and over) ................................ 1.9 1.7 ................................ 1.5 1.3 ................................ 1.1 .

Participants who have not attained eligibility age................................10.0 ................................ 9.3 7.5................................ 6.6 5.9.....................

Future participants................................................................................................ 2.6 2.5 ................................ 1.9 1.5 ............................1.4 

General Fund transfers................................................................35.5 ................................ 33.1 28.8 ................................ 25.1 22.4......................

All current and future participants ................................................................ 50.0 ................................ 46.6 39.7 34.5 ................................ 30.8 ........

Expenditures for Scheduled Future Benefits for:

Participants who have attained eligibility age (age 65 and over) ................................ (6.9) (6.2)................................ (5.8) (5.2)................................ (4.5) .

Participants who have not attained eligibility age................................ (34.1) ................................ (31.8) (27.3) ................................ (23.9) (21.4) .....................

Future participants................................................................................................ (9.0) (8.6) ................................ (6.6) (5.4) ............................(4.9) 

All current and future participants ................................................................ (50.0) (46.6) ................................ (39.7) (34.5) ................................ (30.8) ........

Eliminations................................................................................................ (35.5) (33.1) ................................ (28.8) (25.1) ................................ (22.4) .......

Present value of future expenditures in excess of future 

revenue (after eliminations)6................................................................ (35.5)..................................................................................

1

(33.1)2(28.8)3(25.1)4(22.4)5

The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS 68

United States Government

Statements of Social Insurance (Note 25), continued

Present Value of Long-Range (75 Years, except Black Lung) Actuarial Projections

(In trillions of dollars) 2021 2020 2019 2018 2017

Federal Supplementary Medical Insurance (Medicare Part D):11

Revenue (Premiums and State Transfers) from:

Participants who have attained eligibility age (age 65 and over) ................................ 0.3 0.3 ................................ 0.2 0.3 ................................ 0.3 .

Participants who have not attained eligibility age................................2.0 ................................ 2.0 2.1................................ 2.1 2.1.....................

Future participants................................................................................................ 0.9 0.9 ................................ 0.9 0.8 ............................0.8 

General Fund transfers................................................................................................ 7.7 7.8 8.0 ................................ 7.9 7.6......................

All current and future participants ................................................................ 10.9 ................................ 11.0 11.2 11.1 ................................ 10.8 ........

Expenditures for Scheduled Future Benefits for:

Participants who have attained eligibility age (age 65 and over) ................................ (1.1) (1.0)................................ (1.0) (1.0)................................ (1.0) .

Participants who have not attained eligibility age................................(6.9) ................................ (7.0) (7.2) ................................ (7.2) (6.9) .....................

Future participants................................................................................................ (2.9) (3.0) ................................ (3.0) (2.9) ............................(2.9) 

All current and future participants ................................................................ (10.9) (11.0) ................................ (11.2) (11.1) ................................ (10.8) ........

Eliminations................................................................................................ (7.7) ................................ (7.8) (8.0) (7.9) ................................ (7.6) .......

Present value of future expenditures in excess of future 

revenue (after eliminations)6................................................................ (7.7)..................................................................................

1

(7.8)2(8.0)3(7.9)4(7.6)5

Other:

Present value of future expenditures in excess of future 

revenue 7................................................................................................ (0.1) ................................ (0.1) (0.1) ................................ (0.1) (0.1) ........

Total present value of future expenditures in excess of future 

revenue8, 9, 10................................................................................................ (71.0) (65.5) ................................ (59.1) (54.0) ................................ (49.0) .......

The accompanying notes are an integral part of these financial statements.
 69 FINANCIAL STATEMENTS

United States Government

Statements of Social Insurance (Note 25), continued

Present Value of Long-Range (75 Years, except Black Lung) Actuarial Projections

(In trillions of dollars) 2021 2020 2019 2018 2017

Social Insurance Summary11

Participants who have attained eligibility age:

Revenue (e.g., contributions and dedicated taxes) ................................ 4.7 ................................ 4.3 3.8 ................................ 3.6 3.3 ..................

Expenditures for scheduled future benefits ................................................................ (34.0) (31.6) ................................ (29.1) (27.2) ............................(24.8) 

Present value of future expenditures in excess of 

future revenue................................................................................................ (29.3) (27.3) ................................ (25.3) (23.6) ...............................(21.5) 

Participants who have not attained eligibility age:

Revenue (e.g., contributions and dedicated taxes) ................................ 62.5 ................................ 59.0 55.2 ................................ 51.6 48.8 ..................

Expenditures for scheduled future benefits ................................................................ (126.8) (118.7) ................................ (110.3) (101.9) ............................(95.7) 

Present value of future expenditures in excess of 

future revenue................................................................................................ (64.3) (59.7) ................................ (55.1) (50.3) ...............................(46.9) 

Closed-group - Total present value of future expenditures

in excess of future revenue ................................................................ (93.6) ................................ (87.0) (80.4) ................................ (73.9) (68.4) ................

Future participants:

Revenue (e.g., contributions and dedicated taxes) ................................ 55.8 ................................ 52.9 49.9 ................................ 45.1 43.3 ..................

Expenditures for scheduled future benefits ................................................................ (33.2) (31.4) ................................ (28.6) (25.2) ............................(23.9) 

Present value of future revenue in excess of future 

expenditure ................................................................................................ 22.6 21.5 ................................ 21.3 19.9 ................................ 19.4 ..

Open-group - Total present value of future expenditures in

excess of future revenue................................................................ (71.0)................................ (65.5) (59.1)................................ (54.0) (49.0)....................

1 The projection period for Social Security and Medicare is 1/1/2021 - 12/31/2095 and the valuation date is 1/1/2021.

2 The projection period for Social Security and Medicare is 1/1/2020 - 12/31/2094 and the valuation date is 1/1/2020.

3 The projection period for Social Security and Medicare is 1/1/2019 - 12/31/2093 and the valuation date is 1/1/2019.

4 The projection period for Social Security and Medicare is 1/1/2018 - 12/31/2092 and the valuation date is 1/1/2018.

5 The projection period for Social Security and Medicare is 1/1/2017 - 12/31/2091 and the valuation date is 1/1/2017.

6 These amounts represent the PV of the future transfers from the General Fund to the SMI Trust Funds. These future intra-governmental 

transfers are included as income in both HHS’s and the CMS’s financial statements but, by accounting convention, are not income from the

government-wide perspective of this report.

7

Includes Railroad Retirement and Black Lung.

8 These amounts do not include the PV of the financial interchange between the railroad retirement and social security systems,

which is included as income in the Railroad Retirement Financial Report, but is not included from the government-wide perspective of this 

report (See discussion of RRB in the unaudited RSI section of this report). 

9 Does not include interest expense accruing on the outstanding debt of the BLDTF.

10 For information on the projection periods and valuation dates for the Railroad Retirement and Black Lung programs, refer to the financial

statements of RRB and DOL, respectively.

11 Current participants for the Social Security and Medicare programs are assumed to be the “closed-group” of individuals who are at least

15 years of age at the start of the projection period, and are participating as either taxpayers, beneficiaries, or both. Amounts shown exclude 

the General Fund transfers for Medicare's Parts B and D.

The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS 70

United States Government

Statement of Changes in Social Insurance Amounts

for the Year Ended September 30, 2021 (Note 25)

Social Medicare Medicare

(In trillions of dollars) Security1 HI1 SMI1 Other2 Total

NPV of future revenue less future expenditures

for current and future participants (the "open group")

over the next 75 years, beginning of the year................................ (19.7) ................................ (4.8) (40.9) ................................ (0.1) ............................

(65.5) 

Reasons for changes in the NPV during the year:

Changes in valuation period................................................................ (0.7) ................................ (0.1) (1.4) ................................ - (2.2)..................

Changes in demographic data, assumptions, and 

methods ................................................................................................ 0.2 0.7................................ 0.6 ................................ - 1.5 ...........

Changes in economic data, assumptions, and 

methods ................................................................................................ (1.2) -................................ - ................................ - (1.2) ...........

Changes in law or policy ................................................................ (0.1) ................................ - (0.1) ................................ - (0.2) ......................

Changes in methodology and programmatic data ................................ (1.2) ................................ - - ................................ - (1.2) ......................

Changes in economic and other health care 

assumptions ................................................................................................ - (1.0) ................................ (2.8) - ................................ (3.8) .....

Change in projection base ................................................................ - ................................ 0.2 1.4 ................................ - 1.6....................

Net change in open group measure ................................................................ (3.0) (0.2) ................................ (2.3) ................................ - (5.5) ........

Open group measure, end of year.............................................................................................................................................

(22.7) (5.0) (43.2) (0.1) (71.0)

1 Amounts represent changes between valuation dates 1/1/2020 and 1/1/2021.

2

Includes Railroad Retirement changes between valuation dates 10/1/2019 and 10/1/2020 and Black Lung changes between 9/30/2020 and 

9/30/2021.

The accompanying notes are an integral part of these financial statements. 
 71 FINANCIAL STATEMENTS

United States Government

Statement of Changes in Social Insurance Amounts

for the Year Ended September 30, 2020 (Note 25)

Social Medicare Medicare

(In trillions of dollars) Security1 HI1 SMI1 Other2 Total

NPV of future revenue less future expenditures

for current and future participants (the "open group")

over the next 75 years, beginning of the year................................ (16.8) ................................ (5.4) (36.8) ................................ (0.1) ............................

(59.1) 

Reasons for changes in the NPV during the year:

Changes in valuation period................................................................ (0.6) ................................ (0.2) (1.4) ................................ - (2.2)..................

Changes in demographic data, assumptions, and

methods ................................................................................................ (0.4) 2.6................................ 1.1 ................................ - 3.3 ...........

Changes in economic data, assumptions, and

methods ................................................................................................ (1.8) -................................ - ................................ - (1.8) ...........

Changes in law or policy ................................................................ (0.3) ................................ (0.5) 0.2 ................................ - (0.6) ......................

Changes in methodology and programmatic data ................................ 0.2 ................................ - - ................................ - 0.2......................

Changes in economic and other health care 

assumptions ................................................................................................ - (1.7) ................................ (3.7) ................................ - (5.4) ......

Change in projection base ................................................................ - ................................ 0.4 (0.3) ................................ - 0.1....................

Net change in open group measure ................................................................ (2.9) 0.6 ................................ (4.1) ................................ - (6.4) ........

Open group measure, end of year................................................................ (19.7) (4.8) ................................ (40.9) ................................ (0.1) (65.5) .............

1 Amounts represent changes between valuation dates 1/1/2019 and 1/1/2020.

2

Includes Railroad Retirement changes between valuation dates 10/1/2018 and 10/1/2019 and Black Lung changes between 9/30/2019 and 

9/30/2020.

The accompanying notes are an integral part of these financial statements.