FINANCIAL STATEMENTS 52 

Financial Statements 

of the United States Government 

for the Fiscal Years Ended September 30, 

2020, and 2019 

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 2020 and 2019, including the operations 

related to funds from dedicated collections. 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 governmentwide 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. Budgets are prepared, 

defended, and monitored by entity. In reporting by entity, we are assisting the external users in assessing the budget integrity, 

operating performance, stewardship, and systems and controls of the government.

The Statements of Net Cost contain the following four components: 

x 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. 

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

price. 

x (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. 

x 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. 

x Employee benefit costs. 

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

x 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. 
 53 FINANCIAL STATEMENTS 

GSA is the primary provider of goods and services to federal entities. GSA’s net cost is adjusted for its intragovernmental buy/sell costs and related revenues. The remaining costs for GSA on the Statements of Net Cost are 

administrative operating costs. 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 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, which include the results of 

operations for funds from dedicated collections. See Note 21—Funds from Dedicated Collections for additional information. 

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. 

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 interest 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 12—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 reflect budgetary and other financing sources for funds from dedicated collections, 

excluding financing sources related to non-exchange revenues, intra-governmental interest, and miscellaneous revenues. 

These intra-governmental transfers include appropriations, transfers, and other financing sources. These amounts are labeled 

as “other changes in fund balance” in Note 21—Funds from Dedicated Collections. Some transfers reflect amounts required 

by statute to be transferred from the General Fund to funds from dedicated collections. 

Unmatched Transactions and Balances 

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.S—Unmatched Transactions and Balances for additional 

information. 

The unmatched transactions are included in net operating cost 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 Operating Cost 

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

Cost) adjusted by unmatched transactions and balances. See Note 1.S—Unmatched Transactions and Balances for additional 

information. 

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 21—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.T—Changes in Accounting Principle and Note 1.U—Correction of Errors for additional information. 

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 the accrual and budgetary accounting basis share transaction data. 

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. 
 55 FINANCIAL STATEMENTS 

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. 

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 and interest payable. 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. 
 FINANCIAL STATEMENTS 56 

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 direct loans and loan guarantees receivable, net, general 

PP&E, net; inventory and related property, 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. 

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 guarantees 

liability, 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 19—Commitments and 

Note 20—Contingencies. 

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

primarily to unreconciled intra-governmental differences. See Note 1.S—Unmatched Transactions and Balances for 

additional information. 

The unmatched transactions are included in net operating cost on the Statement of Operations and Changes in Net 

Position 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 and as a separate reconciling item on the face of the Balance Sheet. 

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 21—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 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 
 57 FINANCIAL STATEMENTS 

expenditures if current policy is continued over a 75 year time horizon.1 In 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; 4) 

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

reauthorized; and 5) tax changes under the TCJA are assumed to continue beyond 2025, similar to the presentation in the FY 

2021 President’s Budget. 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 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 statement. 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 24—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 24, 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. 

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. 
 FINANCIAL STATEMENTS 58 

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 27th Valuation on the Assets and Liabilities Under the Railroad Retirement Acts of December 31, 2016, the 2020 Annual 

Report on the Railroad Retirement System required by Section 502 of the Railroad Retirement Solvency Act of 1983, as well 

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

 Note 23—Social Insurance describes the social insurance programs, reports long-range estimates that can be used to 

assess the financial condition of the programs, and explains some of the factors that impact the various programs. The SOSI 

reports the General Fund transfers for the estimated future revenue of Medicare Part B and D which are consistent with the 

entities’ financial statements and, by accounting convention, such General Fund transfers are eliminated in the consolidation 

of the SOSI at the government-wide level. 

 The SCSIA show two reconciliations: 1) change from the period beginning on January 1, 2019 to the period beginning 

on January 1, 2020; and 2) change from the period beginning on January 1, 2018 to the period beginning on January 1, 2019. 

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 20, 2045). The reconciliation identifies several 

components of the changes that are significant and provides reasons for the changes in Note 23. 

 

 

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 percent of the statement totals, they are not material from the government-wide perspective. 
 59 FINANCIAL STATEMENTS 

United States Government 

Statement of Net Cost 

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

 from 

 Gross Earned Changes in Net 

 (In billions of dollars) Cost Revenue Subtotal Assumption 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 Veterans Affairs ............................... 386.3 4.0 382.3 602.7 985.0 

 Department of Defense .......................................... 802.2 39.8 762.4 (17.4) 745.0 

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

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

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

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

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

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

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

 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 Transportation ................................. 108.8 1.1 107.7 - 107.7 

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

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

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

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

 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 

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

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

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

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

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

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

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

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

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

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

 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 

 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) 

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

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

 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) 

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

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

Total .................................................................. 7,194.1 461.6 6,732.5 679.5 7,412.0 

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, 2019 (Gain)/Loss 

 from 

 Gross Earned Changes in Net 

 (In billions of dollars) Cost Revenue Subtotal Assumptions Cost 

 Department of Health and Human Services ............. 1,341.4 119.1 1,222.3 - 1,222.3 

 Social Security Administration ............................... 1,101.2 0.3 1,100.9 - 1,100.9 

 Department of Veterans Affairs ............................. 364.7 5.1 359.6 58.0 417.6 

 Department of Defense ....................................... 813.6 44.2 769.4 139.0 908.4 

 Department of the Treasury .................................. 181.0 25.3 155.7 - 155.7 

 Small Business Administration .............................. 0.3 0.4 (0.1) - (0.1) 

 Department of Labor ........................................... 40.5 - 40.5 - 40.5 

 Interest on Treasury Securities Held by the Public .... 403.6 - 403.6 - 403.6 

 Department of Agriculture .................................... 149.1 8.3 140.8 - 140.8 

 Office of Personnel Management .......................... 118.5 24.1 94.4 0.3 94.7 

 Department of Education ..................................... 153.9 31.9 122.0 - 122.0 

 Department of Homeland Security ......................... 77.0 14.0 63.0 0.9 63.9 

 Security Assistance Accounts ............................... 38.6 - 38.6 - 38.6 

 Department of Transportation ............................... 82.2 1.1 81.1 - 81.1 

 Department of Energy ......................................... 59.3 5.7 53.6 - 53.6 

 Department of Justice ......................................... 40.8 3.5 37.3 - 37.3 

 Department of Housing and Urban Development ...... 29.6 1.8 27.8 - 27.8 

 Department of State ........................................... 33.9 4.6 29.3 0.7 30.0 

 National Aeronautics and Space Administration ........ 21.0 0.2 20.8 - 20.8 

 Department of the Interior .................................... 21.1 2.6 18.5 - 18.5 

 Department of Commerce .................................... 13.8 3.6 10.2 - 10.2 

 U.S. Agency for International Development ............. 12.2 0.1 12.1 - 12.1 

 Federal Communications Commission .................... 11.2 0.4 10.8 - 10.8 

 Railroad Retirement Board ................................... 12.1 - 12.1 - 12.1 

 Environmental Protection Agency .......................... 8.8 0.3 8.5 - 8.5 

 U.S. Postal Service ............................................ 77.5 70.2 7.3 - 7.3 

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

 Smithsonian Institution ........................................ 1.5 0.4 1.1 - 1.1 

 Millennium Challenge Corporation ......................... 0.5 - 0.5 - 0.5 

 Export-Import Bank of the U.S. ............................. (0.1) 0.5 (0.6) - (0.6) 

 U.S. Nuclear Regulatory Commission ..................... 0.8 0.7 0.1 - 0.1 

 National Credit Union Administration ...................... 0.4 0.2 0.2 - 0.2 

 Overseas Private Investment Corporation ............... (0.2) 0.1 (0.3) - (0.3) 

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

 General Services Administration ........................... 0.1 0.8 (0.7) - (0.7) 

 Securities and Exchange Commission .................... 1.8 2.1 (0.3) - (0.3) 

 Tennessee Valley Authority .................................. 9.9 11.3 (1.4) - (1.4) 

 National Railroad Retirement Investment Trust ......... 0.1 0.7 (0.6) - (0.6) 

 Pension Benefit Guaranty Corporation .................... 35.7 27.8 7.9 - 7.9 

 Federal Deposit Insurance Corporation ................... 0.4 5.0 (4.6) - (4.6) 

All other entities ................................................. 22.0 1.8 20.2 - 20.2 

 Total ................................................................ 5,287.2 418.4 4,868.8 198.9 5,067.7 

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, 2020 (Consolidated) 

 

 

 Funds other than Funds from 

 those from Dedicated 

 Dedicated Collections 

 Collections (Note 21) Eliminations Total 

(In billions of dollars) 2020 

 

Revenue (Note 18): 

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 ........................................................ 5,328.9 2,083.1 - 7,412.0 

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

Total net cost ................................................. 5,436.6 2,083.1 (107.7) 7,412.0 

 

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

 

Unmatched transactions and balances 

(Note 1.S) .................................................... 11.6 - - 11.6 

Net operating (cost)/revenue ................................ (3,798.6) (30.2) - (3,828.8) 

 

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.T) ...... 12.5 (12.5) - - 

Net operating (cost)/revenue ............................. (3,798.6) (30.2) - (3,828.8) 

Net position, end of period .................................. (30,270.7) 3,474.4 - (26,796.3) 

 

*Net position, beginning of period is presented above as combined in alignment with the FY 2019 presentation. 

 

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, 2019 (Restated) 

 

 Funds other than Funds from 

 those from Dedicated 

 Dedicated Collections 

 Collections (Note 21) 

 (Combined) (Combined) Eliminations Consolidated 

(In billions of dollars) 2019 

 

Revenue (Note 18): 

Individual income tax and tax withholdings ....... 1,687.6 1,218.6 - 2,906.2 

Corporate income taxes ............................... 322.5 - - 322.5 

Excise taxes .............................................. 42.1 60.7 - 102.8 

Unemployment taxes .................................. - 39.4 - 39.4 

Customs duties .......................................... 72.6 0.1 - 72.7 

Estate and gift taxes ................................... 16.7 - - 16.7 

Other taxes and receipts .............................. 102.4 42.9 - 145.3 

Miscellaneous earned revenues .................... 12.0 3.4 - 15.4 

Intra-governmental revenue .......................... - 95.5 (95.5) - 

Total revenue ............................................ 2,255.9 1,460.6 (95.5) 3,621.0 

 

Net Cost of Government Operations: 

Net cost .................................................... 3,237.5 1,830.2 - 5,067.7 

Intra-governmental cost ............................... 95.5 - (95.5) - 

Total net cost ............................................. 3,333.0 1,830.2 (95.5) 5,067.7 

 

Intra-governmental transfers ............................ (406.0) 406.0 - - 

 

Unmatched transactions and balances 

(Note 1.S) ................................................ 0.4 - - 0.4 

 

Net operating (cost)/revenue ............................ (1,482.7) 36.4 - (1,446.3) 

 

Net position, beginning of period ...................... (25,001.4) 3,480.7 - (21,520.7) 

Adjustments to beginning net position 

 Changes in accounting principle .................. 5.7 - - 5.7 

 Correction of errors (Note 1.U) ................... (6.2) - - (6.2) 

Net operating (cost)/revenue ......................... (1,482.7) 36.4 - (1,446.3) 

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

 

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, 2020, and 2019 

 Restated 

(In billions of dollars) 2020 2019 

Net operating cost ...................................................................................................... (3,828.8) (1,446.3) 

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 ............................................................................... 160.1 183.1 

 Veterans compensation and burial benefits .............................................................. 733.3 173.5 

 Post-retirement health and accrued benefits ............................................................. 22.0 55.0 

 Other benefits .................................................................................................... 53.6 46.4 

 Subtotal - federal employee and veteran benefits payable ........................................ 969.0 458.0 

* Insurance and guarantee program liabilities ............................................................... 4.8 24.3 

 * Environmental and disposal liabilities ........................................................................ 7.3 18.1 

* Accounts payable ................................................................................................. 7.1 11.3 

* Benefits due and payable ....................................................................................... 32.7 12.5 

* Other liabilities ..................................................................................................... 57.9 31.4 

 Subtotal - excess of accrual-basis expenses over budget outlays ............................... 1,078.8 555.6 

Amortized expenses not included in budget outlays 

 Property, plant, and equipment depreciation expense .................................................. 77.2 88.4 

Other expenses that are not reported as budget outlays 

 Property, plant, and equipment disposals and revaluations ........................................... (50.2) (38.8) 

Excess of accrual-basis revenue over budget receipts 

Accounts receivable, net ........................................................................................ 7.9 (4.0) 

Taxes receivable, net ............................................................................................. (91.1) (89.1) 

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

* Investments in government-sponsored enterprises ...................................................... 3.2 1.1 

 Subtotal - components of net operating cost not part of budget deficit ......................... 1,025.8 513.2 

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 ....................................................................... 44.9 45.3 

Budget outlays not included in net operating cost 

 Acquisition of capital assets ..................................................................................... (65.1) (66.0) 

* Securities and investments ..................................................................................... (3.6) (6.1) 

* Inventory and related property, net ........................................................................... (24.0) (18.2) 

* Other assets ........................................................................................................ (150.7) 1.2 

 Subtotal - components of the budget deficit that are not part of net operating cost ......... (198.5) (43.8) 

Adjustments to beginning net position - (0.5) 

Unmatched transactions and balances (11.6) 14.7 

Other 

 All other reconciling items ....................................................................................... (118.8) (21.7) 

Budget deficit............................................................................................................. (3,131.9) (984.4) 

* 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, 2020, and 2019

 

(In billions of dollars) 2020 2019 

 

Cash flow from budget activities 

Total budget receipts ........................................................................................................... 3,420.0 3,462.2 

Total budget outlays ........................................................................................................... (6,551.9) (4,446.6) 

Budget deficit ..................................................................................................................... (3,131.9) (984.4) 

Adjustments for non-cash outlays included in the budget 

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

Accrued interest ................................................................................................................. 312.1 305.5 

Net amortization ................................................................................................................. 40.9 65.7 

Other................................................................................................................................ 63.1 (33.3) 

Subtotal - adjustments for non-cash flow amounts in the budget related to federal debt securities ....... 416.1 337.9 

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

Interest revenue on uninvested funds ...................................................................................... 23.3 7.1 

Interest expense on entity borrowings ..................................................................................... (57.6) (43.2) 

Downward reestimates/negative subsidy payments ................................................................... (28.9) (22.8) 

Subsidy expense/upward reestimates ..................................................................................... 713.6 47.7 

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

activity .............................................................................................................................. 650.4 (11.2) 

Total of adjustments for non-cash outlays included in the budget .................................................... 1,066.5 326.7 

Cash flow from activities not included in the budget 

Cash flow from non-budget activities related to federal debt securities 

Interest paid ...................................................................................................................... (314.7) (305.7) 

Subtotal - cash flow from non-budget activities related to federal debt securities .............................. (314.7) (305.7) 

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

Loan disbursements/default payments .................................................................................... (492.5) (214.3) 

Fees ................................................................................................................................ 26.6 24.5 

Principal & interest repayments.............................................................................................. 112.0 125.9 

Other collections on defaulted loans receivable and sale of foreclosed property ............................... 4.3 4.5 

Subtotal - cash flow from non-budget activities related to loan financing account activity .................... (349.6) (59.4) 

Cash flow from financing federal debt securities 

Borrowings ........................................................................................................................ 18,969.1 11,813.4 

Repayments ...................................................................................................................... (14,822.4) (10,732.1) 

Discount/premium ............................................................................................................... (32.5) (60.4) 

Subtotal - cash flow from financing federal debt securities ........................................................... 4,114.2 1,020.9 

Total cash flow from activities not included in the budget ............................................................... 3,449.9 655.8 

Other 

Total other ........................................................................................................................... 17.8 19.0 

Change in cash and other monetary assets balance .................................................................... 1,402.3 17.1 

Beginning cash and other monetary assets balance ..................................................................... 524.6 507.5 

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

 

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

United States Government 

Balance Sheets 

as of September 30, 2020, and 2019 

 Restated 

(In billions of dollars) 2020 2019 

Assets: 

 Cash and other monetary assets (Note 2) .......................................................... 1,926.9 524.6 

Accounts receivable, net (Note 3) ..................................................................... 321.2 238.0 

 Direct loans and loan guarantees receivable, net (Note 4) ..................................... 1,577.4 1,425.8 

 Inventory and related property, net (Note 5) ....................................................... 379.7 355.7 

 General property, plant and equipment, net (Note 6) ............................................ 1,145.0 1,106.9 

 Securities and investments (Note 7) ................................................................. 121.9 118.3 

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

 Investments in government-sponsored enterprises (Note 9) ................................... 108.9 112.1 

 Other assets (Note 10) ................................................................................... 261.3 110.6 

 Total assets .............................................................................................. 5,950.7 3,992.0 

 Stewardship property, plant and equipment (Note 25) 

 

Liabilities: 

Accounts payable (Note 11) ............................................................................ 105.1 98.0 

 Federal debt and interest payable (Note 12) ....................................................... 21,082.9 16,861.0 

 Federal employee and veteran benefits payable (Note 13) .................................... 9,409.3 8,440.3 

 Environmental and disposal liabilities (Note 14) ................................................... 602.7 595.4 

 Benefits due and payable (Note 15) .................................................................. 256.3 223.6 

 Loan guarantees liability (Note 4) ..................................................................... 520.1 21.7 

 Insurance and guarantee program liabilities (Note 16) .......................................... 199.3 194.5 

 Other liabilities (Note 17) ................................................................................ 568.2 510.3 

 Total liabilities ............................................................................................ 32,743.9 26,944.8 

 Commitments (Note 19) and Contingencies (Note 20) 

 

Unmatched transactions and balances (Note 1.S) .............................................. 3.1 14.7 

 

Net Position: 

 Funds from Dedicated Collections (Note 21) ....................................................... 3,474.4 3,517.1 

 Funds other than those from Dedicated Collections ............................................. (30,270.7) (26,484.6) 

 Total net position ........................................................................................ (26,796.3) (22,967.5) 

 Total liabilities and net position* ....................................................................... 5,950.7 3,992.0 

 

*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 24) 

Present Value of 75-Year Projections as of September 30, 2020 and 20191 

 In trillions of dollars Percent of GDP2

2020 2019 Change 2020 2019 Change 

 

Receipts: 

 Social Security payroll taxes ................. 68.5 65.7 2.9 4.2 4.3 (0.1) 

 Medicare payroll taxes......................... 22.9 22.1 0.9 1.4 1.4 - 

 Individual income taxes ....................... 164.4 161.7 2.7 10.0 10.6 (0.6) 

 Corporation income taxes .................... 21.0 19.3 1.7 1.3 1.3 - 

 Other receipts .................................... 18.6 21.1 (2.5) 1.1 1.4 (0.2) 

Total receipts.......................................... 295.4 289.9 5.6 18.0 18.9 (1.0) 

Non-interest spending: 

 Social Security ................................... 95.2 88.7 6.5 5.8 5.8 - 

 Medicare Part A3 ................................ 32.6 32.2 0.4 2.0 2.1 (0.1) 

 Medicare Parts B & D4 ......................... 45.2 40.7 4.5 2.7 2.7 0.1 

 Medicaid........................................... 37.4 37.3 0.1 2.3 2.4 (0.2) 

 Other mandatory ................................ 58.5 45.4 13.1 3.6 3.0 0.6 

 Defense discretionary.......................... 53.6 48.1 5.5 3.3 3.1 0.1 

 Non-defense discretionary ................... 52.4 46.6 5.9 3.2 3.0 0.1 

Total non-interest spending ....................... 374.9 338.9 36.1 22.8 22.1 0.7 

 

Receipts less non-interest spending ........ (79.5) (49.0) (30.5) (4.8) (3.2) (1.6) 

 

Fiscal gap5 .................................................................................................. (5.4) (3.8) (1.6) 

1

75-year present value projections for 2020 are as of 9/30/2020 for FYs 2021-2095; projections for 2019 are as of 9/30/2019 for FYs 2020-

2094. 

2

The 75-year present value of nominal GDP, which drives the calculations above is $1,645.1 trillion starting in FY 2021, and was $1,531.8 

trillion starting in FY 2020. 

3

Represents portions of Medicare supported by payroll taxes. 

4

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

presented net of premiums. 

5

To 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 5.4 percent of GDP on average is needed (3.8 percent of GDP on average in 2019). See Note 24—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 23) 

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

(In trillions of dollars) 2020 2019 2018 2017 2016

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) .. 1.7 1.5 1.5 1.4 1.3 

 Participants who have not attained eligibility age ...................... 35.2 33.6 31.6 30.2 29.3 

 Future participants ............................................................. 37.0 35.3 31.8 30.5 29.7 

 All current and future participants ......................................... 73.9 70.4 64.9 62.1 60.3 

Expenditures for Scheduled Future Benefits for: 

 Participants who have attained eligibility age (age 62 and over) .. (18.3) (16.9) (15.9) (14.7) (13.6)

 Participants who have not attained eligibility age ...................... (59.8) (55.8) (52.2) (50.2) (48.4)

 Future participants ............................................................. (15.5) (14.5) (13.0) (12.6) (12.4)

 All current and future participants ......................................... (93.6) (87.2) (81.1) (77.5) (74.4)

Present value of future expenditures in excess of future 

revenue ............................................................................. (19.7)1 (16.8)2 (16.2)3 (15.4)4 (14.1)5

Federal Hospital Insurance (Medicare Part A):11 

Revenue (Contributions and Dedicated Taxes) from: 

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

 Participants who have not attained eligibility age ...................... 12.5 12.0 11.3 10.6 10.2 

 Future participants ............................................................. 12.5 11.8 11.0 10.6 10.0 

All current and future participants ......................................... 25.6 24.4 22.8 21.7 20.7 

Expenditures for Scheduled Future Benefits for: 

 Participants who have attained eligibility age (age 65 and over) .. (6.1) (5.3) (5.0) (4.5) (4.3)

 Participants who have not attained eligibility age ...................... (20.1) (20.0) (18.6) (17.2) (16.8)

 Future participants ............................................................. (4.2) (4.5) (3.9) (3.5) (3.4)

All current and future participants ......................................... (30.4) (29.8) (27.5) (25.2) (24.5)

Present value of future expenditures in excess of future 

revenue ............................................................................. (4.8)1 (5.4)2 (4.7)3 (3.5)4 (3.8)5

Federal Supplementary Medical Insurance (Medicare Part B):11 

Revenue (Premiums) from: 

 Participants who have attained eligibility age (age 65 and over) .. 1.7 1.5 1.3 1.1 1.0 

 Participants who have not attained eligibility age ...................... 9.3 7.5 6.6 5.9 5.3 

 Future participants ............................................................. 2.5 1.9 1.5 1.4 1.2 

 General Fund transfers ....................................................... 33.1 28.8 25.1 22.4 20.0 

All current and future participants ......................................... 46.6 39.7 34.5 30.8 27.5 

Expenditures for Scheduled Future Benefits for: 

 Participants who have attained eligibility age (age 65 and over) .. (6.2) (5.8) (5.2) (4.5) (4.0)

 Participants who have not attained eligibility age ...................... (31.8) (27.3) (23.9) (21.4) (19.2)

 Future participants ............................................................. (8.6) (6.6) (5.4) (4.9) (4.3)

All current and future participants ......................................... (46.6) (39.7) (34.5) (30.8) (27.5)

Eliminations ........................................................................ (33.1) (28.8) (25.1) (22.4) (20.0)

Present value of future expenditures in excess of future 

revenue (after eliminations)6 ................................................... (33.1)1 (28.8)2 (25.1)3 (22.4)4 (20.0)5

 

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

United States Government 

Statements of Social Insurance (Note 23), continued 

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

(In trillions of dollars) 2020 2019 2018 2017 2016

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 0.2 0.3 0.3 0.3 

 Participants who have not attained eligibility age ...................... 2.0 2.1 2.1 2.1 2.2 

 Future participants ............................................................. 0.9 0.9 0.8 0.8 1.0 

 General Fund transfers ....................................................... 7.8 8.0 7.9 7.6 8.7 

All current and future participants ......................................... 11.0 11.2 11.1 10.8 12.2 

Expenditures for Scheduled Future Benefits for: 

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

 Participants who have not attained eligibility age ...................... (7.0) (7.2) (7.2) (6.9) (7.6)

 Future participants ............................................................. (3.0) (3.0) (2.9) (2.9) (3.6)

All current and future participants ......................................... (11.0) (11.2) (11.1) (10.8) (12.2)

 

Eliminations ........................................................................ (7.8) (8.0) (7.9) (7.6) (8.7)

 

Present value of future expenditures in excess of future 

revenue (after eliminations)6 ................................................... (7.8)1 (8.0)2 (7.9)3 (7.6)4 (8.7)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 ...................................................................... (65.5) (59.1) (54.0) (49.0) (46.7)

 

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

United States Government 

Statements of Social Insurance (Note 23), continued 

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

(In trillions of dollars) 2020 2019 2018 2017 2016

Social Insurance Summary11 

Participants who have attained eligibility age: 

 Revenue (e.g., contributions and dedicated taxes) ................. 4.3 3.8 3.6 3.3 3.1 

 Expenditures for scheduled future benefits ........................... (31.6) (29.1) (27.2) (24.8) (23.0)

 Present value of future expenditures in excess of 

 future revenue .............................................................. (27.3) (25.3) (23.6) (21.5) (19.9)

Participants who have not attained eligibility age: 

 Revenue (e.g., contributions and dedicated taxes) ................. 59.0 55.2 51.6 48.8 47.0 

 Expenditures for scheduled future benefits ........................... (118.7) (110.3) (101.9) (95.7) (92.0)

 Present value of future expenditures in excess of 

 future revenue .............................................................. (59.7) (55.1) (50.3) (46.9) (45.0)

Closed-group - Total present value of future expenditures (87.0) (80.4) (73.9) (68.4) (64.9)

in excess of future revenue ............................................... 

Future participants: 

 Revenue (e.g., contributions and dedicated taxes) ................. 52.9 49.9 45.1 43.3 41.9 

 Expenditures for scheduled future benefits ........................... (31.4) (28.6) (25.2) (23.9) (23.7)

 Present value of future revenue in excess of future 

 expenditure ................................................................. 21.5 21.3 19.9 19.4 18.2 

Open-group - Total present value of future expenditures in (65.5) (59.1) (54.0) (49.0) (46.7)

excess of future revenue ..................................................... 1 The projection period for Social Security and Medicare is 1/1/2020-12/31/2094 and the valuation date is 1/1/2020. 2 The projection period for Social Security and Medicare is 1/1/2019-12/31/2093 and the valuation date is 1/1/2019. 3 The projection period for Social Security and Medicare is 1/1/2018-12/31/2092 and the valuation date is 1/1/2018. 4 The projection period for Social Security and Medicare is 1/1/2017-12/31/2091 and the valuation date is 1/1/2017. 5 The projection period for Social Security and Medicare is 1/1/2016-12/31/2090 and the valuation date is 1/1/2016. 6 These amounts represent the PV of the future transfers from the General Fund to the SMI Trust 

Fund. These future intra-governmental transfers are included as income in both HHS’ and the CMS’s 

Financial Reports 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 RRP 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 

 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, 2020 (Note 23) 

 

 Social Medicare Medicare 

(In trillions of dollars) Security1 HI1 SMI1 Other2 Total 

 

Net present value (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. 

 
 71 FINANCIAL STATEMENTS 

United States Government 

Statement of Changes in Social Insurance Amounts 

for the Year Ended September 30, 2019 (Note 23) 

 

 

 Social Medicare Medicare 

(In trillions of dollars) Security1 HI1 SMI1 Other2 Total 

 

Net present value (NPV) of future revenue less 

 future expenditures for current and future 

 participants (the “open group”) over the next 75 

 years, beginning of the year ................................. (16.2) (4.7) (33.0) (0.1) (54.0) 

Reasons for changes in the NPV during the year: 

 Changes in valuation period .................................. (0.5) (0.2) (1.2) - (1.9) 

 Changes in demographic data, assumptions, and 

methods............................................................ 0.4 - 0.4 - 0.8 

Changes in economic data, assumptions, and 

methods............................................................ (1.0) - - - (1.0) 

Changes in law or policy ...................................... - - - - - 

Changes in methodology and programmatic data ...... 0.5 - - - 0.5 

Changes in economic and other health care 

 assumptions ..................................................... - (0.3) (2.7) - (3.0) 

 Change in projection base .................................... - (0.2) (0.3) - (0.5) 

Net change in open group measure ........................ (0.6) (0.7) (3.8) - (5.1) 

Open group measure, end of year ............................ (16.8) (5.4) (36.8) (0.1) (59.1) 

 

1

 Amounts represent changes between valuation dates 1/1/2018 and 1/1/2019. 

2

 Includes Railroad Retirement changes between valuation dates 10/1/2017 and 10/1/2018 and Black Lung changes between 9/30/2018 and 

 9/30/2019. 

 

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