.. 

CONSOLIDATED FINANCIAL STATEMENTS 

of the United States Government 

Prototype 

COMPILED AND PUBLISHED BY 

FINANCIAL MANAGEMENT SERVICE 
FINANCIAL MANAGEMENT SERVICE 

DEPARTMENT OF THE TREASURY 

MISSION 

GOALS 

Promote the financial integrity of the 

United States Government through 

sound money management on behalf 

of the public. 

• Promote effective and efficient 

financial management systems 

Governmentwide. 

• Make financial information available 

to users and decisionmakers. 

• Provide high-quality service to PMS 

customers. 

• Let the needs of customers guide 

decisions. 
CONTENTS 

Secretary's Statement 

Comptroller General's Statement 

Introduction 

Financial Highlights 

Consolidated Financial Statements 

Notes to Financial Statements 

Supplemental Tables 

User Survey 

Results of FY 1986 User Survey 

For sale by the Superintendent of Docwnents, U.S. Government Printing Office 

Washington, D.C. 20402 

3 

5 

7 

9 

13 

19 

27 

37 

39 

"' 

I 

• 

THE SECRETARY OF THE TREASURY 

W A SHINGTON 

June 28 , 1 988 

Statement of the Secretary of the Treasur y 

The Department of the Treasury has p r epared this single set of 

Consolidated Financial Statements based on data accumulated from 

agency financial systems. This document r epresents the results 

of the Fede r al gove r nment's effor ts to improve its financial 

systems and the quality and comparability of financial 

information from those systems. 

The objective of the Consolidated Financial Statements is to 

present the financial condition of the Federal gove r nment under 

generally accepted accounting principles. While government has 

not yet r eached that goal, a g r eat deal of progress was made in 

Fiscal Year 1987. I want to recognize Federal program agencies 

for this p r ogress and for their commitment to install the U.S. 

standar d general ledge r and to replace, whe r e necessa r y, their 

financial management systems. 

The Treasury Department has kept pace with these improvements 

across government by expanding its electronic repor ting systems 

to virtually all financial data flowing f r om agencies to 

Tr easury's Financial Management Service. The Service has also 

begun the r eplacement of Treasur y's centr al accounting systems 

with a new system using data base technology. This technology 

will improve our ability to manage and report on Fede r al 

r esources. 

During this next year, Treasury will continue its close 

cooperation with the Office of Management and Budget and the 

General Accounting Office to improve financial systems and data 

across government. As more and more Federal agencies complete 

their improvements, the quality and compa r ability of their 

financial information will be reflected in this report. 

The Gene r al Accounting Office has identified 13 major Federal 

accounting and financial r epor ting issues. As these issues are 

r esolved, GAO plans to r evise its accounting standards. Treasur y 

will assess the need for changes in its Consolidated Financial 

Statements and intends to drop the prototype label in FY 1989 if 

agency systems are in substantial compliance with GAO standards. " .... ..- ,,, 

~:~es A. Baker, III 

3 

Comptroller General 

of the United States 

Washington, D.C. 20548 

June 28 , 1 988 

STATEMENT OF THE COMPTROLLER GENERAL 

OF THE UNITED STATES 

5 

The federal government is the largest entity in the world 

in terms of the billions of dollars in revenues raised, 

amounts spent, assets owned, and liabilities that must be 

paid. Its annual outlays are almost a quarter of the 

country's gross national product; it employs more than five 

million people and runs hundreds of programs, many of them 

individually larger than our biggest corporations and state 

governments, and which impact on the lives of virtually all 

people in our country. Sound financial management of these 

huge sums is critical if our government is to continue to 

provide needed public services and enhance our future 

standard of living. Sound financial management of the 

federal go v ernment finances is dependent upon modern 

financial systems which contain and report reliable 

information. 

Consolidated financial statements are intended to convey 

summary information about the financial condition and 

operations of the federal government as a whole, as opposed 

to segments of it, and are an important aspect of 

government accountability to the public. These 

consolidated statements are intended to disclose the 

magnitude of the government's assets, liabilities and the 

full cost of operations and programs for the year. 

Agency financial statements, along with additional 

supplemental information, form the basis for preparing this 

consolidated report. Our longer term objective is to audit 

these consolidated statements and render an opinion on 

their fair presentation. To achieve this, however, we must 

first audit the underlying agency statements; we and the 

Inspector General community have begun audits at selected 

agencies. We have also continued our efforts in monitoring 

the governmentwide effort to improve internal controls, the 

quality of which directly affects the quality of the 

information in this report. Finally, we ha v e assisted 

Treasury in preparing this report by providing advice and 

sharing the information we've acquired through our audit 

efforts thus far. 
6 

Progress has been made in the past year toward our goal of 

producing formal consolidated statements that can be 

audited. GAO is nearing completion of an in-depth study of 

major accounting issues of the federal government. The 

issues addressed in this study focus on determining the 

best accounting treatment to portray the most meaningful 

financial information in the federal government's financial 

statements. Treasury is also making improvements in the 

area of systems enhancements as discussed by the Secretary 

in his statement. Significant additional improvements are 

necessary before statements can be produced that can be 

audited and to eliminate the prototype label from the 

statements in fiscal year 1989; we support Treasury's 

efforts to reach that goal. 

As with earlier reports of this type, we have not audited 

the accompanying statements and accordingly, we do not 

express an opinion on them. 

Bowsher 

Comptroller General 

of the United States 
) 

.... 

• 

7 

INTRODUCTION 

This report sets the tone for measuring agencies' progress in meeting Governmentwide financial management goals by providing a cohesive yardstick to judge the consistency of underlying data. It shows improvement in agency efforts to report reliable asset and liability data expressly as a part of each entity's financial 

statements. 

The data reported in the Statement of Financial Position by the agencies was carefully scrutinized, 

analyzed, and in some cases reclassified to meet reporting standards outlined in accordance with the Treasury 

Financial Manual (I TFM 2-4100) governing Federal Agencies' Financial Reports . Compliance with Generally 

Accepted Accounting Principles (GAO Policy and Procedures Manual for Guidance of Federal Agencies, Title 2, 

Accounting) was crucial to assure reliability and to provide a strong impetus to assess accountability for 

resources. Numerous direct contacts were made with the responsible personnel in agencies to clarify their 

interpretation of accounting concepts and criteria and to bolster financial management efforts by monitoring the 

reporting methodology agencies use to compile their agency-level financial statements and supporting 

information. 

Electronic transmission of Federal agencies' financial data substantially increased this year, narrowing 

the gap by reducing remaining paper reporting from 40 percent in FY 1986 to less than 10 percent in FY 1987. 

Vigorous review of agencies' reports initiated last year within Treasury's Financial Management Service was 

continued and, as a result, the Financial Highlights, Notes to Financial Statements, and Supplemental Tables 

contain more improved disclosures to address issues raised by users in recent years. For this reason three new 

tables have been added to the Supplemental Tables section, providing the reader with an expanded vision 

covering the economic panorama of the Government. The tables are: Additions to Non-Federal Economic 

Resources, Effect of Individual and Corporate Tax Benefits on Federal Revenues, and Open-ended Programs 

and Fixed Costs . 

The format of the Consolidated Financial Statements has been revised to reflect the latest and most 

effective reporting trends recognized for informative presentation of financial results . By using the agencies· 

Statements of Financial Position, a certain air of ownership established last year continues to serve as a financial 

management foundation for improving the reliability of reports produced by agency systems. Next year (FY 1988) 

is marked as another year of embarkation in which we hope to convert from using cash basis data as the basis 

for ttie Statement of Operations to one of fully using agencies' activity reports on an accrual basis replacing the 

modified system now in use for this purpose. 

To support financial initiatives, Federal agencies have contributed to the general atmosphere of enhanced disclosure by improving systems to generate more reliable asset/liability data evidenced by results shown 

in their financial statements. 

The results of last year's user survey have been included, and a new and simplified present year survey 

is incorporated. Present changes in the CFS reflect, in part, some of our readers' responses . Your continued 

feedback helps guide our future program to add measurable value to this report. 
• 
9 

FINANCIAL HIGHLIGHTS 

Revenues and expenses 

The following graphs show revenues and expenses for fiscal years 1977 through 1987, and the major 

categories of revenues by source and expenses by function for FY 1987. These amounts, taken from the Statement of Operations, have been calculated on an accrual basis and differ from those reported on the cash basis in 

other reports. The data supporting the graph of expenses by function have been estimated based on Treasury 

totals of budget outlays by function. 

TOTAL REVENUES AND TOTAL EXPENSES 

FISCAL YEARS 1977-87 

$ BILLIONS 

1200 ----------------------, 

1000 

800 

600 

Revenues 

Expenses 

.. _,,.,,-

___ ... ·· .. 

1977 1979 

... ----- . .. . 

1981 

. . • 

. . • -#- ---.. _,, _ .. ,-

1983 

. • • 

; • ---. ,--------

1985 1987 

MAJOR SOURCES OF REVENUES MAJOR EXPENSES BY FUNCTION 

Corporate Income Taxe 

8% 

usiness-Type Operations 

15% 

lnteres 

17% 

National Defens 

34% 

ncome Security 
10 

Major categories of assets 

Assets are resources owned by the Federal Government that are available to pay liabilities or provide 

public services in the future. The following chart is derived from the Statement of Financial Position and depicts 

the major categories of assets for FY 1987 as a percent of total assets. The components for each of these major 

categories are contained in Notes to Financial Statements. 

MAJOR CATEGORIES OF ASSETS 

Total: $1,146.1 billion 

Inventories 16°/4 

ash and Other Monetary Assets 8% 

nvestments and Other Assets 14% 

Property and Equipment 40°/4 

Assets, liabilities, and accumulated position 

The following graph depicts the assets, liabilities, and accumulated position reported in the Statement of 

Financial Position for fiscal years 1983 through 1987. Accumulated position, the excess of liabilities over assets, 

is shown below the base line to emphasize Federal equity claims or interests in assets. 

4000 

3000 

2000 

1000 

0 

-1000 

-2000 

-3000 

TOTAL ASSETS, TOTAL LIABILITIES, AND 

ACCUMULATED POSITION, FY 1983-87 

$ BILLIONS 

1983 1984 1985 1986 1987 

Assets 

Liabilities 

Accumulated Position 
• 

11 

Sources and uses of funds 

The charts below have been derived from the Statement of Operations and the Statement of Cash Flow 

for FY 1987 and show the resources provided during the period and the uses to which they were put. 

Significant factors included in other sources of funds are: decrease in receivables , 2.9 percent; decrease 

in inventories, 1.1 percent; and decrease in other assets, 4.5 percent. 

SOURCES OF FUNDS 

Truces and Other Levies 63°/4 

ther 13% 

Other Government Operations 11 °/4 et Increase in Borrowing 12% 

USES OF FUNDS 

Spending on Government Programs 74°/4 

~ , ..... •·· · . 

. urchase of Property and Equipment 14% 
.. 
CONSOLIDATED FINANCIAL STATEMENTS 

United States Government Consolidated Statement 

of Financial Position as of September 30, 1987 and 1986 

($ billions) 

Assets 

Cash . . . .... ... . .. . .. • ... . .. .. . ....... ......... . .. . .. .... . ..... . . . .. . . .. 

Other monetary assets ........ . ....... . .. .... ... . . . . .. .. .. . . .. . .. . . . . . .. .. . 

Accounts receivable, net of allowances . . . . . .. . ...... .. . ... . . .. ... . .. .... . . .. . . 

Advances and prepayments . . . . .... .. . . . . .. ....... . . . . . ... .. ... . .... . . . ... . . 

Inventories , net. . ... . ... .. . .. . . . . . . ... . . .... . .. . ..... . . .. . .. ... . • ... • . .. .. 

Investments, at face value ........ . ..... . . . .. . ... ... . .. . . .. ... . . ... . . . .. . . . . 

loans receivable, net of allowances . ............... . . .... .• . ... .. .. .. ... . .. .. 

Property, plant and equipment, net of accumulated depreciation .. . . . . .... . . . .. . .. . . 

Other assets . . . . . . .. ... . . . . ... . ... . . . . .... . . ...... . . ... . .... . . . .... . . .. . . 

Total assets 

Llabilltles 

Accounts payable ...•.......•.. . . . ....... . . .. . . . .. . . . . ....... . .. . .... . ... . 

Interest payable .... . . . . .. . .. . . .. .. .. .. .. .... . . . .. ... . . . . . ... .. . . .... . ... . 

Accrued payroll and benefits .... .. . . .. .... . .. . . ... . . . . . . . . . . .. .. .. . . . . . . .. . . 

Unearned revenue ... .... . . . ...... .. ... . . . . . . .. .... . ... . . . ... ...... ...... . 

' Debt issued under borrowing authority .. .. ... .. . . . . . . . . . . .. . . ...... .. . .. . . . . . . 

Pensions and actuarial liabilities .. .. . .... . ..... . ... . . . .... ... . . .. . .. . . . .. . . . . 

Other liabilities .. . .............. • ...... .. . . ... .... . . . . . ...... . . ... .. .. . . .. 

Total liabilities ............... .. .............. . ....... .. ... . ........... . . 

Accumulated position 

Reserved for trust funds . . .. . ...... . 

Unreserved . . ... . ... .. . . . . . . ... . . .. .. ... . .. . . . . .. . . . . . . . . . ...... . .. . . . .. . 

Total accumulated position .. .. ..... . . . ................. . .. . ... . ....... . . . 

The accompanying notes are an integral part of this statement. 

1987 

36.4 

55.0 

67.6 

7.0 

182.1 

3.3 

194.8 

453.0 

146.9 

1,146.1 

94.9 

31 .9 

11 .5 

43.0 

1,906.3 

1,277.2 

142.3 

3,507.1 

-603.7 

-1,757.3 

-2,361 .0 

13 

1986 

31.4 

59.8 

68.6 

6.2 

185.3 

3.9 

232.7 

333.7 

208.1 

1,129.7 

86.2 

29.9 

11.4 

41 .2 

1,749.1 

1,256.1 

152.5 

3,326.4 

-617.0 

-1 ,579.7 

-2,196.7 
14 

United States Government Consolidated Statement 

of Operations for the Years Ended September 30, 1987 and 1986 

($ billions) 

Revenues 

Levied under the Government's sovereign power 

Individual income taxes .. .. ..... . .. . ............. .. ... . ... ... . .. . . . ... . 

Corporate income taxes . . . . . . . . . . ........ . . . ......... ... . ...... . 

Social insurance taxes and contributions . .. .. .. . . .. . .. .... .. .. . ... .. . .. . .. . 

Excise taxes .............. . .......... .. . ... . . . .............. . .. . .... . 

Estate and gift taxes . .... . ... .... . . . . ... . .. . . . .. ... .. . . . . . .... . .. . .... . 

Customs duties .... ... ...... .. . . ...... ... . .... . ... . ... ........ . . .... . 

Miscellaneous . . . .. . . . . .. .. . .. ... ... . . . . . .. .. . . ..... .. .. .... .. . . .. . . . 

Earned through Government business-type operations 

Sale of goods and services ... . ...... .. . .... .... . ... .. . . .. . .. .. . ... . .. . . 

Interest . . . ...... . .. . ......... . ....... . .. . ... ... . . . 

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

Total revenues ........................ . ... ......... ...... . ..... . .. . .. . 

Expenses by agency 

Legislative branch .... .. . ..... ... .. . . ...... .. . ....... . . . .. .. . ... ... . . .. . 

Judicial branch . .. .... .. .... .. .. .... .. .. ... .. . .. . ... ................ . 

Executive branch 

Office of the President ... . .. .... .. ... ....... .... .. ... . .. .. .. .. .. . . . . . 

Departments 

Agriculture ...... .. .. . .. .... . . .. . . ... ....... . . . .. .. ... . ... .. . .. .. . . 

Commerce ...... . . . .. . .. . . . . .. .... . . .. . .. . . .. . . . . . .... ... .. . . . . . . . 

Defense . .. . . . . ....... . ......... . .... .. . . .. .. .. ..... .. ... . 

Education . .... . ...... . ................... . ... .... .... .. ... . 

Ene rgy .. .. .. . . .. . . . . . .. .................. . . . .. . . . ... .... . .. . .... . 

Health and Human Services . ..... .. .. .. . .. . .. . . ... . .. ... . ..... . ... .. . 

Housing and Urban Development .. . . . .. . . . . . . . . . .. . . . . .. . . ... . . . . .. . . . 

Interior . . . . . . . . . . . . . . . . . .... . ... . . . . . . . .. .. . . 

Justice . . . ....... . ......... . ...... ...... .... . .. ... .. . 

Labor ............. . . . .. ... .. ... ..... .... . ..... . 

State . 

Transportation ...... ... . . .. . .... . . . ...... .. . . . . .... . . . .. . . .. . . . .. . . 

Treasury: Interest .... .. . . ... .. .. ... .. . .... . ..... . .. .. . ........ . 

Other .. . 

Independent agencies ..... . . .. .... . .. .. . 

Total expenses . .. ... . . . .... .. . .. .... ... . .... ... . . ... ..... .... ........ . 

Current period results . . . . ...... . .. . . . ... .. . .. .. ..... .... . . .... ...... . . . 

The accompanying notes are an integral part of this statement. 

1987 1986 

392.6 349.0 

83.9 63.1 

303.3 283.9 

32.5 32.9 

7.5 7.0 

15.0 13.3 

18.0 24.1 

852.8 773.3 

31.8 30.9 

68.7 83.7 

51 .6 38.4 

1,004.9 926.3 

1.9 1.8 

1.2 1.1 

25.0 23.3 

70.5 79.8 

2.6 2.7 

271 .5 253.7 

13.4 18.1 

15.0 15.6 

370.4 354.1 

20.9 18.4 

5.9 5.7 

5.0 4.4 

25.8 26.5 

3.2 3.2 

10.1 9.9 

166.2 166.2 

3.4 8.2 

157.2 157.3 

1,169.2 1,150.0 

-164.3 -223.7 
'>, 

'-, 

·J 

United States Government Consolidated Statement 

of Cash Flow for the Year Ended September 30, 1987 

($ billions) 

Uses of funds 

Excess of expenses over revenues ... . .... . . ... . ... . . . . .. . . . . . .. ... . .. . . . . .. . . .. . .. ... .. . . . . . . 

Less charges not requiring cash in current period: 

Depreciation ...................... .. . . . .. ..... . .... . .. . .. . ... . ..... .. ....... . ...... . . . 

Provision for accrued pension , retirement, and disability plans . .. . ...... .. . ... .. . ... .. ... . . .. . . . . 

Provision for accrued payroll and benefits .... . . . .. . . ..... ... . . . .. . . . . .. ....... . . ...... . .. . . . 

Cash used in operations ..... ... . . ......... .. ... ... . ... .. ... . . . ... .. ... . .. . .. .... . .. . . . 

Purchase of property and equipment (net of sales of $5.3) .. ... . ... • ....... . ............... .. ... . ... 

Total uses of funds ................................... . ......... . . . ......... .. ........... . 

Sources of funds 

Borrowing from the public 

Decrease in inventories .. . .... .. . .. . .. .. . . . . . . . .. . . . . .. . . . . . .... .. . . ..... .. . ........... .. . . . 

Decrease in receivables . .. ... . . . ...... . ..................•.. . .. . ..... .. ........ . .... .. ...... 

Decrease in other assets .. .. .. . . .. ..... ..........•.. . ....• • ... • ...... • .... • . . ....... .. .. . . . . 

Increase in liabilities . .......... . ...... . .. . ........ . .... . . . .. . .. . ..... . .. .. ....• .. ....... . . . . 

Total sources of funds .. ................. . ................................................ . 

Net increase in cash and monetary reserves . . ..... ....... .. . .. ... . .. . . . .... ... . . . ... . .... . . . . .... . 

Cash and monetary reserves at beginning of year . . . . . . ..... . .. ... . .. ...... ... . .. .. .. . .... • ...... . . 

Cash and monetary reserves at end of year ........... . ... . . .. . • . ... . ...... .. ... . .. . . . .... ..... . . . 

The accompanying notes are an integral part of this statement. 

164.3 

45.8 

21.1 

.1 

97.3 

165.1 

262.4 

157.2 

3.2 

38.9 

61 .0 

2.3 

262.6 

.2 

91 .2 

91 .4 

15 
16 

United States Government Consolidated Statement 

of Receipts and Outlays as of September 30, 1987 and 1986 

($ billions) 

1987 1986 

Actual Budget 1 Budget 2 Actual Budget 3 Budget 4 

Budget receipts 

Individual income taxes .. . . . .. . . . ..... . .. .. 392.6 

Corporation income taxes ... .. . . . ..... .. .. . 83.9 

Social insurance taxes and contributions .... . . . 303.3 

Excise taxes .. . . ... .. . . . . .......... . ..... 32.5 

Estate and gift taxes . . . .. • . .... . .. .. . . ... . . 7.5 

Customs duties ... . ... . . . .. .... . .. . . . . . . . 15.0 

Miscellaneous receipts ............... . ..... 19.3 

Total budget receipts .•• .... . . ••...•.. • • . . 854.1 

Bud et outla s 

Legislative branch . . . . . .. . . . ... . . ... . .. .. . 1.8 

Judicial branch . .. .. .... ..... . . . ....... .. . 1.2 

Executive Office of the President. . . . .. . ... .. . .1 

Funds appropriated to the President . ....... . . 10.6 

Departm ents 

Agriculture . . ... ... ........ . . . . .. ...... 49.6 

Commerce .. . . .... ... . ...... .. . .. . . ... 2.2 

Defense . .. . ... . .... . . . . . . . . . . . . . . . . . . 294.7 

Education ... . ... . ... . ...... . . . . 16.8 

Energy .. ...... . . . .. . . . . . . . . . . . . . . . . . . 10.7 

Health and Human Services .... . . . . . . . . . . 351 .3 

Housing and Urban Development .......... 15.5 

Interior . . . . . . . . . . . . . ' . . . . . . . . . . . . . . . . . 5.1 

Justice ... . . . . . .. . . . . . . ... . . .. .. .... . . 4.3 

Labor ... . .. .... . ... . . ... .. ..... . ... . . 23.5 

State . .. . .. . . ... .. . . . ......... . .... .. . 2.8 

Transportation ...... .. . ..... .... . ...... 25.4 

Treasury . .. . . . . .. . . .. .. ....... . . .. . . . . 180.3 

Independent agencies .... . . .. .. ... .... .. 78.8 

Undistributed offsetting receipts ........... . .. -72.6 --- Total budget outlays ... . .. .. ......... . . .. 1,002.1 

Total budget deficit ........ .... . . .. ..... . -148.0 

1 FY 1988 Budget of the U.S. Government, released by the Office of 

Management and Budget on Jan. 5, 1987. 

2 Midsession review of the FY 1988 Budget, released by the Office 

of Management and Budget on Aug.17, 1987. 

364.0 392.8 349.0 353.7 349.1 

104.8 89.6 63.1 70.9 61 .6 

301.5 301 .9 283.9 280.4 284.2 

32.6 31 .9 32.9 34.6 32.4 

6.0 8.1 7.0 6.1 6.7 

14.4 14.8 13.3 12.4 12.4 

19.1 19.4 19.9 19.0 18.8 --- 842.4 858.5 769.1 777.1 765.2 = 

2.1 2.1 1.7 1.9 1.9 

1.2 1.2 1.1 1.1 1.1 

.1 .1 .1 .1 .1 

11 .8 12.2 11 .4 12.5 12.9 

55.1 53.3 58.7 54.2 60.9 

2.4 2.5 2.1 2.0 2.0 

295.1 295.0 285.9 279.0 284.0 

16.8 17.5 17.7 17.8 17.5 

10.6 10.5 11 .0 10.1 11 .3 

348.2 350.9 333.9 332.9 334.0 

14.6 15.6 14.1 15.2 14.9 

5.2 5.4 4.8 4.9 5.1 

4.8 4.6 3.8 3.8 3.8 

24.5 24.0 24.1 23.1 23.6 

3.3 3.0 2.9 2.9 2.8 

26.2 26.8 27.4 26.4 28.0 

180.2 182.9 179.2 184.7 181 .7 

85.2 82.5 75.2 74.4 76.2 

-71.8 -73.2 -64.9 -67.1 -66.4 

1,015.6 1,016.9 990.2 979.9 995.4 = = 

-173.2 -158.4 -221.1 -202.8 -230.2 

3 FY 1987 Budget of the U.S. Government, released by the Office of 

Management and Budget on Feb. 5, 1986. 

4 Midsession review of the FY 1987 Budget, released by the Office of 

Management and Budget on Aug. 6, 1986. 

l

• 
·:. United States Government Consolidated Statement 

of Reconciliation of Accrual Operating Results to the 

Cash Basis Budget as of September 30, 1987 and 1986 

($ billions) 

,., Expenses over revenues (current period results on accrual basis) ................ . 

Additions 

Capital outlays . .. .......... .. . . . . . . ....... . ....... . . . . .. .. . ... . . . . . . .. . . 

Net loan disbursements . .... . ... .. . ... . . . .... .. .. . . . ... ... . . .. . . . . . . ... .. . 

Seigniorage . ..... .. ..... . . . . . . . .. .. . . . . . . .. .. ............ .. ... . .. . .... . 

'-, Total additions .............. . ... . ............................ . . . ...... . 

Deductions 

Increase in actuarial liabilities for pension, retirement, and disability plans ......... . . 

Increase in allowance for losses on receivables .. . .... ................. .. . .. .. . 

Depreciation expense .. . . . ... .......... . .. . .. . . . . . . . . .. .. . . . . . .... . . . . .. . 

Other accrual adjustments . . . . . ...... . . .. .. ... . . . . .. .......... . ........ . .. . 

Total deductions ................................... . ........... . ...... . 

Reported budget outlays over receipts (cash basis) . . ..... . . .. ....... . ... . ...... . 

-~ 

• 

17 

1987 1986 

164.3 223.7 

129.5 124.6 

19.0 11 .2 

.5 .4 

149.0 136.2 

21 .1 14.2 

17.5 33.7 

45.8 34.9 

80.9 56.0 

165.3 138.8 

148.0 221 .1 
r 

_, 
• 

.. 

.. 

NOTES TO FINANCIAL STATEMENTS 

1. Summary of accounting policies 

Basis of accounting policies 

19 

The Consolidated Financial Statements are prepared in accordance with Generally Accepted Accounting 

Principles (GAAP) applicable to the Federal Government in line with Title 2 of the GAO Policy and Procedures 

Manual for Guidance of Federal Agencies, and are presented on the accrual basis of accounting. The Statement 

of Receipts and Outlays precedes a reconciliation between the accrual and cash basis. It presents a reconciliation of operating expenses, as included in the Statement of Operations, to budgetary expenditures , as reported to 

the Office of Management and Budget. Statements have been restated to reflect subsequent changes to the 

prior-year financial information. 

Principal financial statements 

These consist of a Statement of Financial Position, a Statement of Operations, a Statement of Cash Flow, a 

Statement of Receipts and Outlays, and a Statement of Reconciliation of Accrual Operating Results to the Cash 

Basis Budget. 

Reporting entities 

The Consolidated Financial Statements include the legislative, judicial, and executive branches and federally 

chartered corporations. 

The Federal Reserve banks and certain congressional activities are excluded, and so are Governmentsponsored enterprises such as the Federal land banks because they are privately owned. Significant intragovernmental transactions identified were eliminated in consolidation . 

Fiscal year 

The fiscal year of the U.S. Government ends on September 30. 

Sources 

The fiscal 1987 Statement of Financial Position has been compiled from agency reports submitted in response to I TFM 2-4100, Federal Agencies' Financial Reports. The Statement of Receipts and Outlays has been 

taken from the Monthly Treasury Statement; selected amounts from the Treasury general ledger have been 

added. The Statement of Operations and Statement of Cash Flow have been calculated as in prior years. 

2. Cash 

This represents deposits of tax collections, customs duties, other revenues , miscellaneous receipts, public 

debt receipts, and a variety of other receipts maintained in accounts at Federal Reserve banks and branches as 

well as in the U.S. Treasury tax and loan accounts. The Federal Reserve banks and branches act as fiscal 

agents for the Government by reporting transcripts on a daily basis. The tax and loan accounts refer to accounts 

of special depositaries in which the proceeds of certain tax payments and public debt sales are held until the 

funds are needed at the Federal Reserve banks and branches to meet cash disbursements from Treasury's 

general account. 
20 

3. Other monetary assets (consist of the following items summarized below) 

Sept. 30, 

1987 

Gold (monetized at the statutory price of 

$42.22 per ounce) ... . .. .... .. .... .... . 

Special drawing rights ..... . . . .... . ...... . 

U.S. reserve position in the International 

Monetary Fund .. ... . . .. . ... . . .... . .. . 

Accountability for cash and other assets held 

outside the Treasury . .... ... . .. . . ..... . 

Convertible foreign currencies (at market 

value) . .. ... ... . .. ..... . . .. . . . . . .... . 

Other U.S. Treasury monetary assets . .... . . . 

Nonpurchased foreign currencies .. .. ... .. . . 

Gold 

11 .1 

9.1 

10.9 

8.1 

14.0 

1.4 

.4 

55.0 

($ billions) 

Sept. 30, 

1986 

11 .1 

8.3 

11 .9 

9.4 

16.8 

1.8 

.5 

59.8 

The market value of gold as a commodity was $120,457,296,085 as of September 30, 1987. This figure 

represents a market value per ounce of $459.25 (as reported on the London Market) based on 262,291 ,336.059 

fine troy ounces (as reported by the Treasury general ledger). 

Special drawing rights 

The value is based on a weighted average of exchange rates for the currencies of selected member 

countries . The value of a special drawing right was $1 .2796 as of September 30, 1987. 

4. Accounts and loans receivable 

All receivables in the Statement of Financial Position are shown net of allowances for losses. The allowances 

for losses are those reported by the agencies and include certain adjustments to supplement these totals. Totals 

reported by the Internal Revenue Service for delinquent taxes receivable for fiscal 1987 and 1986 were $39.0 

billion and $37.7 billion, respectively. 

Summary of gross accounts and loans receivable 1 

Accounts 

Beginning balance, Sept. 30, 1986 .. ....... . 

New receivables .. . . . . . ........ ...... . 

Repayments and reclassifications .. . .. . . . . 

Amounts written off ... ...... .... . . . . .. . 

Ending balance, Sept. 30, 1987 .. . . ... . . . . . 

Less : Allowances for losses ... ..... ....... . 

Net balance, Sept. 30, 1987 .. . . . . . ....... . 

1 Excludes intragovernmental receivables. 

receivable 

83.4 

85.2 

-76.1 

-1.4 

91 .1 

23.5 

67.6 

($ billions) 

Loans 

receivable 

267.9 

29.7 

-56.0 

-2 .8 

238.8 

44.0 

194.8 

,

• 

.. 
.. 

.. 

5. Inventories 

Operating consumables .. .. . . ... ... . ...... . 

Product or service components . . ....... . . . . . 

Stockpiled materials ... . . .... .. . . . ..... . . . . 

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

Sept. 30, 

1987 

121 .3 

14.2 

44.7 

1.9 

182.1 

($ billions} 

Sept. 30, 

1986 

121 .0 

19.4 

43.1 

1.8 

185.3 

= 

21 

Product or service components contain amounts reported in goods-for-sale, work-in-process, and raw 

materials. Agencies have reported inventory totals net of allowance accounts, where appropriate. 

Inventory totals for the Department of Defense for fiscal 1987 and 1986 were $134.4 billion and $140.7 

billion, respectively. 

Agencies disclosed their costing method for inventory totals. The first-in-first-out valuation method was used 

more often than moving or weighted averages or last-in-first-out valuations. However, the Department of Defense 

used the moving average valuation more often than weighted average or last-in-first-out or first-in-first-out 

valuations . Several agencies reported estimated inventory amounts. 

6. Investments 

The amount for fiscal 1987 represents agency investments in non-Federal securities and other investments. 

Ninety-two percent of the total amount reported was recorded at face value. 

7. Property, plant and equipment 

Structures, facilities and leasehold 

improvements . .. . .... .. .... . .. .... . .. . 

Military equipment ................... .. .. . 

Equipment . .. ... . . ..... .... ... .. ..... .. . 

Construction in progress . . . ........ . . ..... . 

Land ..... . .. .. . ..... .. . ........... . .. . . 

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

Less accumulated depreciation .... . .. . . .. . . . 

Sept. 30, 

1987 

161.4 

435.4 

69.9 

76.4 

10.8 

14.3 

768.2 

315.2 

453 .0 

($ billions) 

Sept. 30, 

1986 

156.4 

313.3 

64.9 

41 .7 

10.5 

16.3 

603.1 

269.4 

333.7 

Other assets include ADP software, assets under capital lease, and other fixed assets that have been 

capitalized. The amounts shown for fiscal 1987 and 1986 are reported at cost. 
22 

Land purchased by the Federal Government is valued at cost. The land acquired through donation, exchange, bequest, forfeiture, or judicial process is estimated at amounts the Government would have paid if 

purchased at the date of acquisition. 

Pending the outcome of a General Accounting Office study to determine how land and natural resources 

should be valuated, the Outer Continental Shelf and other offshore lands and more than 662 million acres of 

public domain land have not been included. 

Depreciation accounting is encouraged for all depreciable fixed assets, but only business-type operations are 

required to report depreciation on their financial statements. 

The accumulated depreciation shown in the Statement of Financial Position is estimated using the straightline method applied to the total of reported depreciable assets . The useful lives applied to each classification of 

asset are : 

Buildings ... . ... ... ....... .. . ......... .. . .. ..... . .. .. . ........... . 

Structures and facilities . . ...... .... ... ... . ...... . .. ..... ...... . .... . . 

Ships and service craft . ... .... .... . . .. ... ..... . .... .. . .... . ... .. ... . 

Industrial plant equipment. ... ... .. ..... . ... .... ....... .. . .. ... . ..... . 

All other assets . ... ... . ........... . ..... . ... . . .. . ... .... . . .. . . . ... . 

50 years 

21 years 

13 years 

13 years 

13 years 

The amounts of accumulated depreciation reported by Federal agencies on their statements amounted to 

$31.4 billion and $22.7 billion for fiscal 1987 and 1986, on assets of $105.0 billion and $81 .1 billion for fiscal 1987 

and 1986, respectively. The straight-line depreciation method was selected more often for overall fixed assets. 

Capitalization policies varied greatly with thresholds in the ranges of $500 to $5,000. 

Agencies provided information about the range of service life assigned to asset categories. The majority of 

agencies assigned a range of 3-5 years to ADP software. The ranges selected most often for equipment were 

6-10 years followed by 3-5 years. Agencies reported the greatest diversity in their selection of ranges for structures and facilities with the majority greater than 16 years. 

8. Debt issued under borrowing authority 

The amount of Federal debt outstanding is reported net of unamortized premiums and discounts. The 

amounts reported for fiscal years 1987 and 1986 reflect a reduction for intragovernmental holdings of $450.3 

, 

billion and $383 .9 billion, respectively. .

Agencies also reported $6.3 billion of other debt which is included in the fiscal 1987 amount. 

... 
.. 

.. 

.. 

Average 

Interest 

rate 

(percent) 

Federal debt 

Marketable ..... . .. . ... . . . .... . .......... . 8.575 

Nonmarketable .. . . .. . . .. . . .. . .. ..... .. . . . . 6.772 

Other . ... .. . . .. . ... .... . ..... . . .. ...... . 7.972 

Total . . .. ... ... ...... .. ..... .. .. . ..... . 

Net borrowing from the publ ic 

Current period .. . ....... . ... .. .... . . . .. . . . 

Prior period ... ... ..... ... . .. . ... . ... . . ... . 

Net increase ... . . . ...... ... . .... . ..... . . .. . . 

1 Includes other debt: ($ billions) 

Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 

Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 

Veterans Administration . . . . . . . . . . . . . . . . . . . . .2 

Federal Savings and Loan Insurance Corp . . . . . . 4.4 

U.S. Postal Service . . . . . . . . . . . . . . . . . . . . . . . . .1 

Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3 

9. Pensions and actuarial llabllitles 

Total debt 

as of Sept. 30--

1987 

1,647.6 

231 .9 

20.5 

1,900.0 

11,906.3 

1,749.1 

157.2 

1986 

($ billions) 

1,535.1 

193.3 

20.7 

1,749.1 

1,749.1 

1,498.8 

250.3 

23 

The accounting for accrued pension, retirement, disability plans and annuities is subject to several different 

assumptions, definitions, and methods of calculation. Each of the major plans is summarized below. 

Pensions 

Military personnel ..... . . .. . . .......... . . . . . 

Civilian employees .... .. ...... . ........... . 

Other pension plans . .. ... .. .. .. .... .. ... . . . 

Subtotal ..... . ...... . ..... . .... . . . .... . 

Actuarial liabilities 

Veterans compensation .. .. . . . ... . .. . . ... .. . 

Federal employees compensation . ... ... . ... . . 

Other annuities . .. . . . .. .. . . . . .. .... ...... . . 

Total . . .. .... . ..... .... . .. ... . ..... . . . . 

Sept. 30, 

1987 

446.2 

570.3 

33.7 

1,050.2 

190.3 

12.7 

24.0 

1,277.2 

($ billions) 

Sept. 30, 

1986 

440.6 

563.0 

32.5 

1,036.1 

185.3 

12.7 

22.0 

1,256.1 
24 

Military personnel and civilian employees 

The liabilities under these two plans represent a major portion of the unfunded liability which is to be reported 

under Public Law 95-595. The accrued pension liabilities at September 30 represent the actuarial present value 

of the accumulated plan benefits and have been calculated in accordance with instructions developed jointly by 

the General Accounting Office and the Office of Management and Budget under the provisions of Public Law 

95-595. 

The latest available information for military personnel and civilian employees pensions is September 30, 

1986. For fiscal 1986, data from fiscal 1985 were used. In the past, estimates were inserted when the Department of Defense and the Office of Personnel Management did not provide current calculations of the actuarial 

liability. This year, no Treasury estimates are being used. 

Veterans compensation 

This amount represents the value of projected annual benefit payments. The amount is calculated by 

projecting for a 20-year period the ?-year estimates of total cases and estimated pension and compensation 

costs provided by the Veterans Administration. 

Federal employees compensation 

This amount represents the estimated future costs for approved Federal Employees' Compensation Act 

cases. 

Other pension plans 

Other annual pension reports received from plans covered by Public Law 95-595 are reported in the same 

manner as military personnel and civilian employees described above. 

Other annuities 

These consist of various annuities the Government is responsible for such as life insurance for veterans and 

Federal employees. 

The Thrift Savings Plan is a retirement savings and investment plan for Federal employees authorized by 

,

Congress in the Federal Employees' Retirement System Act of 1986. It is a defined contribution plan eligible to ~ 

employees covered under the Civil Service Retirement System (CSRS) and the Federal Employees Retirement 

System (FERS). The plan offers both FERS and CSRS employees tax deferral advantages. FERS employees 

may contribute up to 10 percent of basic pay per pay period to the plan ; CSRS employees may contribute up to 5 

percent of basic pay per pay period. Total contributions could not exceed $7,000 in 1987. The plan was started in 

April 1987 and as of September 30, 1987, the total invested was $0.7 billion. 

1 o. Accumulated position 

Accumulated position beginning of period (restated) . .. . 

Current period results ..... .... . . . .. . ... . . . .... . . . 

Accumulated position end of period ......... . . ... . . . 

Sept. 30, 

1987 

-2, 196.7 

-164.3 

-2,361.0 

($ billions) 

Sept. 30, 

1986 

-1 ,973.0 

-223.7 

-2 ,196.7 

.

.. 
25 

The accumulated position has been segregated to designate the amount reserved for trust funds : -$603. 7 

billion for fiscal 1987 and -$617.0 billion for fiscal 1986. The unreserved portion of accumulated position was 

-$1,757.3 billion for fiscal 1987 and -$1,579.7 billion for fiscal 1986. 

11. Leases 

Federal agencies were first required to provide financial information about lease commitments in 1986. 

Agencies are attempting to accumulate the desired lease information that is required. At September 30, 1987, the 

future aggregate minimum rental commitments for capital leases and noncancelable operating leases were: 

Operating Capital 

leases leases 

($ bllllons) 

Years ending Sept. 30,--

1988 ... . . .... . ... .. . ...... .. . · · · · · · · · · · · · · · 1.2 2.0 

1989 .... ... . . .. .. .. . ..... . . . .. . .. . . ... .. . . . 1.0 .1 

1990 ..... ... .... .... . . .... . .. . ... ... . ... .. . .9 .1 

1991 . ... .. . .. .. .. . . . . ..... . . .... . ... .. .. .. . .7 .1 

1992 .... ..... .. ... . .. . .. . ... . ...... . ...... . .6 .1 

Thereafter . .. .... .. .. .. . ... .. . . .... . . . .... .. . 1.5 .8 

Total minimum lease payments ..... . . . . .... . 5.9 3.2 --

The majority of these leases are identified as building and office space rental. The current and long-term 

portions of lease costs are included in accounts payable and other liabilities, respectively. lntragovernmental 

leasing transactions have not been eliminated or identified due to a lack of information. 

Lease revenues identified on the agency statements were negligible and appear to be understated. 

12. Social security 

Prior to fiscal 1986, the liability equaling the amortized portion of the unfunded liability for the social security 

program was included on the Statement of Financial Position. The unfunded liability is determined annually and 

the prior service cost is amortized over a 30-year period. As of September 30, 1987, the unfunded liability for 

social security was $5,580.1 billion of which $2,411 .7 billion was recorded through amortization. The amounts for 

September 30, 1986, were $5,393.5 billion and $2,232.6 billion, respectively. The liability represents the present 

value of the projected excess of future benefit payments to present participants over the contributions still to be 

made by the same group and their employers for the next 75 years. 

The Congress and the trustees of the funds prepare estimates based on a different financing method they 

regard as more appropriate for social insurance programs. The following actuarial amounts are calculated on the 

assumption that future young workers will be covered by the program as they enter the labor force. 

Actuarial liabilities . ..... .. .. . .... .... ... . ... . .... . 

Actuarial assets .. .. .. ..... ... . . . . . .. . . .. . . . . ... . 

Actuarial surplus or deficit (-) ...... .... . . .. ... . . .. . . 

Sept. 30, 

1987 

14,983.4 

14,605.8 

-377.6 

($ billions) 

Sept. 30, 

1986 

14,468.0 

14,125.4 

-342.6 
26 

13. Contingencies 

A contingent liability is a liability involving uncertainty as to a possible loss to the Government that will be 

resolved when one or more future events occur or fail to occur. If the future event or events are likely to occur and 

the amounts can be reasonably estimated, the liabilities are reported on the Statement of Financial Position 

under "Other liabilities." Contingencies within the Federal Government result from a number of sources including 

loan and credit guarantees, insurance programs, and unadjudicated claims. 

The following table shows the contingent liabilities reported on the Statement of Financial Position for losses 

that are likely to occur and the maximum risk of exposure that the Government has without regard to probability 

of occurrence and without deduction for existing and contingent assets which would be available to offset 

potential losses. 

Insurance in force .. . . . . . . . . . . . . . . . . . . . . . . . . 

Government loan and 

credit guarantees .. . . . . . . . . . .... . .. . . . . . . 

Unadjudicated claims .. . . .. . . . . . . . . . . . . . . . . . . 

Other contingencies . ... . . . . . . . . . . . . . . . . . . . . . 

14. Prior-period adjustment and reclassification 

Sept. 30, 1987 

Maximum 

risk 

Liability 

Sept. 30, 1986 

Maximum 

risk 

Liability 

($ billions) 

3,120.6 7.0 2,988.2 6.9 

845.0 .4 831 .5 .5 

75.5 71 .8 

24.5 25.8 

7.4 7.4 

The Consolidated Financial Statements include, in fiscal 1987, adjustments to prior years ' figures, which were 

necessary due to changes in interpreting financial information in the fiscal 1986 statements. The changes 

concerned the following accounts : Loans receivable; advances and prepayments; property, plant and equipment; 

debt issued under borrowing authority; pensions and actuarial liabilities; and other liabilities. A net increase of 

$102.9 billion affected the accumulated position for fiscal 1986. 

In addition to these adjustments, amounts shown on the Statement of Operations within the expense categories for fiscal 1986 were reclassified to provide for more accurate amounts within each category and to enhance 

presentation. The total expenses remained the same. The reclassification included showing social security 

expenses in Health and Human Services. Previously, they were shown under independent agencies . 
SUPPLEMENTAL TABLES 

SUMMARY OF ACCOUNTS AND LOANS RECEIVABLE DUE 

FROM THE PUBLIC 

27 

Total accounts receivable amounted to $91 .1 billion in FY 1987, an increase of $7.7 billion over FY 1986. 

Total loans receivable amounted to $238.8 billion in FY 1987, a decrease of $29.1 billion from FY 1986. Graphically depicted below are summaries by agency of accounts and loans receivable data. Treasury accounts 

receivable includes IRS, 58.9 percent. 

ACCOUNTS RECEIVABLE 

Total: $91 .1 billion 

Treasury 61 '3⁄4 

,~ ... . 

~ ... •·. 

__.. I ••. 1- e. 1•. 

LOANS RECEIVABLE 

Total: $238.8 billion 

Agriculture 53'3⁄4 

unds App. to the Pres. 9% 

Treasury 9% 

The Debt Collection Act of 1982 (31 U.S.C. 3719) requires the Director of the Office of Management and 

Budget, in consultation with the Secretary of the Treasury and the Comptroller General of the United States, to 

establish regulations requiring each agency with outstanding debts to prepare and transmit to 0MB and the 

Treasury a report which summarizes the status of accounts and loans receivable managed by each agency. 

These receivables result from a wide range of Federal activities including tax assessments; sale of Government 

services such as satellite launchings; sale of Government goods such as natural resources from Federal lands; 

overpayments to annuitants ; and various loan programs such as student and housing loans. The data in the 

reports will enable the Federal Government to improve collection activity. 

The amounts in the graphs and the following tables have been summarized from the Report on Accounts 

and Loans Receivable Due from the Public (SF 220-9). This schedule reflects all receivables reported by Federal 

agencies. 
28 

Accounts and Loans Receivable by Agency 

($ billions) 

Legislative branch . . .. . . .... .... . . .. . .... . . .. . . . .. . .. . 

Executive branch 

Funds appropriated to the President .. ...... .. .. .. . .... . 

Departments 

Agriculture . ... . . .. . .. . ... . . ... . . . . . .... .. . . . ... . 

Commerce . .. . . . . . .. .. . .. ... ... . . . . .. . . .. ...... . 

Defense ....... . ..... ............. . .. . . .. ...... . 

Education ..... . ........ . . .............. . . .. . . . . 

Energy ................. . ........ ... . .. .. ...... . 

Health and Human Services ....................... . 

Housing and Urban Development ............ . ...... . 

Interior .......................... .... . ... ... ... . 

Justice . . . ... .. .......................... .. .... . 

Labor . ... . .. . . ...... .. .. . .. . ..... .. . . ... . . .. .. . 

State .... . ..... . .. . . ... . .. . . ............ .. .. . . . 

Transportation ... ... ...... . . ........ . . . .. .. ... . . . 

Treasury ............................. . ...... .. . 

Veterans Administration ...... .. .......... . .. . .. . .. . . 

Other independent agencies ........ . .. . ........... . . . 

Gross receivables ........... . . .... ..... ......... . 

Less allowances for losses .. . . .. . .. . ............ . . . 

Net receivables due from the public .. .. . ...... .. . ... . 

Accounts receivable 

1987 

2.1 

10.0 

.1 

1.5 

.6 

2.3 

3.1 

3.6 

2.1 

.6 

3.6 

.1 

55.6 

2.4 

3.4 

91 .1 

23.5 

67.6 

1986 

1.4 

8.8 

.1 

1.3 

.7 

2.1 

2.8 

3.0 

1.9 

.4 

5.3 

.7 

50.2 

1.9 

2.8 

83.4 

14.8 

68.6 

Loans receivable 

1987 1986 

22.3 21 .7 

126.4 136.5 

.8 .8 

6.3 12.1 

.7 .6 

29.4 27.9 

.7 .5 

2.0 3.0 

22.2 36.5 

2.4 2.5 

25.6 25.8 

238.8 267.9 

44.0 35.2 

194.8 232.7 

Aging Schedule of Accounts and Loans Receivable as of September 30, 1987 

Accounts 

receivable 

Delinquent 

1-30 days . . .... .. . ... ......... . ...... .. .. . . ... . . . 7.9 

31 -60 days ... . .............. . . . .. . . ....... . ..... . 2.8 

61-90 days . .... . . . .. .. . ......... ... . . . . . ....... . . 2.7 

91 -180 days .... . . .... ... . . . . ... .... . . .... . .... . . . 8.0 

181 -360 days . .... ... ......... ... ... . ..... . . . . ... . 9.2 

Over 360 days .. . ... . . ..... . .................. . .. . 34.9 

Total delinquent ...... . . ... ....... ... . . . . .. .. . . . . 65.5 

Not delinquent ... ..... . ...... . .. .. . . . .. . .... .. .. . ... . 12.7 

Noncurrent receivables . . ................ . . . .... .. .... . 12.9 

Total gross receivables . . .... . ... . ......... .. ... . ... . 91 .1 

• Less than $50 million. 

Percent 

delinquent 

12.0 

4.3 

4.1 

12.2 

14.1 

53.3 

100.0 

Loans 

receivable 

0.4 

.3 

.3 

.6 

3.8 

10.7 

16.1 

21 .9 

200.8 

238.8 

Percent 

delinquent 

2.5 

1.8 

1.8 

3.9 

23.6 

66.4 

100.0 
29 

FEDERAL DEBT 

Total net borrowing from the public amounted to $1,906.3 billion in FY 1987, an increase of $157.2 billion 

from FY 1986. This chart has been presented to graphically show the increase in net borrowing from the public 

and the interest expense. 

NET BORROWING FROM THE PUBLIC WITH 

INTEREST EXPENSE, FY 1977-87 

$ BILLIONS 

2200 ---------------------

1650 

1100 

Net Borrowing from th e Public 

Interest Expense 

550 L ------------

0 -+"..;;.;;.;;~a..;;..;;.~...-"---r----,-----.--,-----r-----r--...----i ·-------------------------------------------------

1977 1979 1981 1983 1985 1987 

The Federal Debt schedule which follows reflects information on the borrowing of the Federal Government needed to finance the Government's operations. This table supports the balance sheet caption , "Debt 

issued under borrowing authority," which is shown net of intragovernmental holdings and unamortized premium 

or discount. lntragovernmental holdings represent that portion of the total Federal debt held by Federal entities, 

including the major trust funds . The distribution of 1987 net borrowing from the public by major source category is 

graphically depicted. 

$ BILLIONS 

500 

NET BORROWING BY MAJOR 

SOURCE CATEGORY 

1987 1986 

- Bills 

Bonds 

Nonmarketable 

Other 
30 

Federal Debt as of September 30, 1987 

Average 

Interest 

rate 

(percent) 

Marketable 

Bills ...... .. . . . . . ... . .. .. . . .. . .. .. . . ... ........ . . . . . ..... . . . . . . . 6.340 

Notes . ... . . . . .. .. . ...... . ......... . . . . .. . .. ... . .. . . . . .. ...... .. . 9.056 

Bonds . . . .. . ... . . . ... .. . .. .. .... .. . .. . . . . . . .. . . . . .............. . 10.330 

8.575 

Nonmarketable 

Foreign government series . ..... .... . ..... . . . .. . . . . .. . . ..... ... .... . 6.877 

Government account series .. . . . . .... .. . . . . .. . .... ... .. . .... . .. .. .. . 6.997 

U.S. savings bonds . . .. . . .. . . . . .. .... . .. . . . . . . . . . ......... . ... .. .. . 7.309 

Other ... . . ... . ... ...... .. .. . ..... . . .... .. . ..... . . . . . . .. .. . . . . 5.907 

6.772 

Other 

Agency series . . . ...... . ... .. .... .. ......... .. ... . . .... . . .. .... . . . 7.250 

Other . . .. . .. . .... . ...... . ...... . . .. . . . . . . . .. . ............... . . . . 8.695 

7.972 

Types of marketable securities 

Bills--Short-term obligations issued with a term of 1 year or less. 

Notes--Medium-term obl igations issued with a term of at least 1 year, but not more than 1 O years. 

Bonds--Long-term obligations of more than 1 O years. 

Total debt 

1987 1986 

($ billions) 

371.3 403.4 

1,003.0 894.8 

273.3 236.9 

1,647.6 1,535.1 

4.3 4.1 

.8 .8 

97.0 85.6 

129.8 102.8 

231 .9 193.3 

3.0 3.1 

17.5 17.6 

20.5 20.7 
31 

COMMITMENTS AND CONTINGENCIES 

Commitments are long-term contracts for which appropriations have not been provided by the Congress 

and undelivered orders which represent obligations. 

A contingency is a liability involving uncertainty as to a possible loss to the Government that will be 

resolved when one or more future events occur or fail to occur. If the future event or events are likely to occur and 

the amounts can be reasonably estimated, the liabilities are reported on the Statement of Financial Position 

under "Other liabilities." Contingencies within the Federal Government result from a number of sources including 

loan and credit guarantees, insurance programs, and unadjudicated claims. 

In FY 1987, total commitments amounted to $542.4 billion and total contingencies amounted to $4,065.6 

billion. Total contingencies represent the maximum risk of exposure without regard to probability of occurrence 

and without deduction for existing and contingent assets which would be available to offset potential losses. The 

charts below show the percentage distribution of 1987 commitments and contingencies by source category. 

Undelivered Orders 98°/c 

COMMITMENTS 

Total: $542.4 billion 

Insurance in Force 77°/c 

ong-Term Contracts 2% 

CONTI NG ENCi ES 

(Maximum Risk) 

Total: $4,065.6 billion 

• ~ 

.. 

.. 

. .. --

• ... . • • .. 

The table that follows shows commitments and contingencies by type . For contingencies, the maximum 

risk that the Government is exposed to is shown. 
32 

Commitments and Contingencies 

of the United States Government 

as of September 30, 1987 

Commitments 

Long-term contracts 

Tennessee Valley Authority .. . . . .. .. .. . ...... . ... . ... . ... .. . ... .. . .. ... . .. .. . . . ............... .. . . 

General Services Administration ... . . . . ... .. . .... ... .. .... .. . .. ... .. . .. . . .... . . .. ... . ..... . .. . .. .. . 

Defense .. . .. . .. . ..... . ... .. .. . ... ...... .. . .. . ............. . .. . . . ... .. ... . ........... . ... . ... . 

U.S. Postal Service . .... .... .. .......... . . . . ........... . .. .. ........... . . . ... .. . . . . ............ . 

Energy .. . ... . .. . ...... . ...... . .......... .. ... ... . .. . ... .... . .... . ....... . ...... ... .... . ... . . . 

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

Subtotal. ....... .... . . . .. ..... ... . .. . . .. . . ..... . . . . ... ... .. . ... .. .... .. .. . . ... ... . .. ........ . 

Undelivered orders 

Housing and Urban Development ... . .. ... .. . . . . . . . ..... . . . .. ... .. . . ... . ..... ... .. . . ......... . .... . 

Defense . . . .. .................... . ....... ... .. . .... . . . . . .. .. . . .. . . .... . .. .. .. . . . ... . . ...... .. . 

Funds appropriated to the President ... . ....... . ...... . ............. .. ... .. .. . .. . . . . .... . .. . . . . .... . 

Transportation . . ........ . . .. . . . . ................... . ..... . ... . ...... . .. .. .. . . . . . .. . .. . ........ . 

Health and Human Services .... . .. . . ..... .. .. ...... . . . .. . .... .. . .. . . .. .... .. . . ... . .... . . ........ . 

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

Subtotal ............... . .. ... .. . . .. . .. .... ... .. ......... . .. . .... . .. . ... .. ...... • - • • • - - • • • - - -

Total commitments ... . .. . . .... .......... . ....... . . . ... ... ....... . ....... . 

Maximum risk exposure for contingencies 

Government loan and credit guarantees 

Housing ... .. .. ....... . . . .. . .. .. . . ............. .. ..... ... . . ... . ... .... . .. . ... .. . ..... . ....... . 

Veterans benefits .... . .... . ...... . ....... .. . .... ... . . . ............... ... .. ... .. . . .. . . .. . ....... . 

Education . . ... . . .. ... ... .. ..... ... .. . .. .. .. . ... . .. . .... . ... .. ......... . . .. ...... .. ... . .. . . . . . . 

Farm ownership and rural development .. .. . . . . .. .. . . . ... .... ... . ... .. .... .. . .. . .. . ... .. ... . ...... . . 

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

Subtotal . . ............ . 

Insurance in force 

Federal Deposit Insurance Corporation . . . . . . .. . ........... .. ... . . .... ... ... . .. . ......... . ......... . 

Federal Savings and Loan Insurance Corporation . ..... .. . ... ... ... .. .. .. . ................. ... ... . .... . 

Transportation . . . .. ............. . ............ . ... . .. . ..... . .... . ... . .. . ..... . . . .. .... . .. .. ..... . 

Federal Emergency Management Agency ... .. .. . . . .. . . . .. . ... . . . . . .. . . ... . ... .. .. .. .. ....... .. ..... . 

National Credit Union Administration . ...... . ... . . .. ........ . .... . .......... .. . . .. . . . . ... . . . .. . ..... . 

Nuclear Regulatory Commission .... . .. . ....... . .. . . . . ... . . .. . . ... . .. . ... ... . .. . . . . . . .. . .. . .. ... . . . 

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

Subtotal .. . 

Unadjudicated claims 

Transportation .. . . . . . .......... .. . . .. ... . . . .............. .. .. . .. . ... ... .. . .. .. ..... . ....... . .. . 

Energy ..... . ................ . . .. . ... ... . ..... . . .... .. .. .. . . .. . . . . . . ... .. . ... .. ... ... ..... _ . . . 

Other ... . .. .. .. . . . ... . . . . .. .. .... .. . . .. . . . ... .. . . . ...... ... ........ ... . . . . .. . . .. . ... .. ... - . . . 

Subtotal . . ... .. . 

Other contingencies 

Veterans benefits . . . . . . . . . . .. .. . ............ . ............... . ........... ......... ........ . 

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

Subtotal .. . . ... . .. . ................ . . 

Total . 

Amounts 

outstanding 

($ billions) 

6.7 

2.9 

1.8 

1.4 

.3 

.4 

13.5 

202.3 

173.6 

37.2 

34.5 

24.2 

57.1 

528.9 

542.4 

650.0 

65.9 

48.5 

7.2 

73.4 

845.0 

1,605.7 

898.0 

162.2 

158.7 

148.7 

87.5 

59.8 

40.0 

10.1 

25.4 

75.5 

14.1 

10.4 

24.5 
33 

ADDITIONS TO NON-FEDERAL ECONOMIC RESOURCES 

The following chart indicates the ways in which the Government uses its resources to add to the physical 

and human resources of the Nation without acquiring physical assets. 

FISCAL 1987 ADDITIONS 

Total: $65.2 billion 

dditions to State, Local, and Private Assets 

Educatio II Other 

cience and Engineering 

Education-Income Suppo 

6% 

11% 

The table which follows shows the amounts of these expenditures. Some of these investment-type 

expenditures, while not adding to the Federal assets, add to the assets of State and local governments or private 

institutions, and all enhance the future productivity of the Nation. 

Additions to State, local, and private assets include construction grants for highways, hospitals, and 

airports, subsidies to the merchant fleet, and conservation projects, which increase the value of private farmland 

and water resources. Other developmental expenditures reflect current Federal expenditures and grants which 

will benefit the Nation in future years by increasing productivity or well-being. These include research and 

development costs and education and training. 
34 

Additions to Non-Federal 

Economic Resources 

for the Years Ended September 30, 1987-89 

($ billions) 

1987 

Actual 

Additions to State, local, and private assets 

Community and regional development ... .. ..... . ... . ............ . ....... . .. . . 4.0 

Environment . ....... .. .. ..... . . . ... .. ....... ... . . ....... . . .. ..... . ... . . . 3.2 

Transportation 

Highways and mass transit ....... ... ........ . .......... . ............. .. . 15.0 

Rail and air . . . ... . . ... .. .. .. .... . ... . .. .. . ............. . .. . ... . . . . .. . .9 

Other . .. . ....... . . . . . .. . . . .. .. .... . . . . . . . .... . . .... ... . ..... . .... . ... . . .3 

Total additions ... . .. .. . . .. .. .. .............. .. . . .. .... .. .... . . . . . . . . . . 23.4 

Other developmental expenditures 

Agriculture ...... . .. .. . . .. . ..... . . .... .. . .. . . ...... .. . .. ....... . . ... .. . . . .9 

Conservation .. . ........ . ..... . . . . . ........ . . . .. . . ... . . .. .. . . . . ... .. . .. . . 3.0 

Economic development . ...... . ... . ... ........... .. . .... . ... . . . . .. ... .. . . . .3 

Education ... ....... . ... . .. . .... . .... . ............. . .......... . . . .. .. .. . 15.2 

Education-income support . .... . .................... ... . . . ... .. . .. . . ...... . 4.0 

Environment .............. . . . . ....... . . . . . ... ... ... . .. ... . . .... ... . . . .. . .3 

Health . . . . . . ... . . . . . . . . .. . .... .... . .. . . ... . . .. . . . .... . . ... . .. . . . . . . .. . . 7.0 

Science and engineering ... . .... .... . . . ..... . . .... .. . .. ...... .. . .. . . .. .. . . 6.4 

Training ... . . .. . . .. ... . .. . .. . .. ... ... . . . .. ... .. ....... .. ... . . . .. ... .. . . . 3.7 

Transportation . . .. . . .. ... .. . . . . ... . ... .. . ... .... .. . .. ... . .. . . . . . ........ . .3 

Other . .. . ...... . . .. . . .. ... . . . .. . .... ...... .. . . . . ... .. . ... . . . .. . ... ... . . .7 

Total developmental expenditures ... . . . .. . . . . ... .. . . ... . . .. ... . . . ... ..... . 41 .8 

Total investment outlays . . .... ....... ..... ... . ..... . ... . .. .. . .. . .... . . . 65.2 

Source: Budget of the United States Government, Fiscal Year 1989. 

1988 1989 

Estimate 

4.3 4.2 

2.9 2.7 

15.9 16.0 

1.0 1.1 

.4 .4 

24.5 24.4 

1.0 1.0 

3.1 3.0 

.3 .3 

16.6 20.4 

4.3 4.2 

.3 .3 

7.7 8.7 

7.5 8.6 

3.8 3.9 

.3 .3 

.8 .8 

45.7 51 .5 

70.2 75.9 
EFFECT OF INDIVIDUAL AND CORPORATE TAX BENEFITS 

ON FEDERAL REVENUES 

35 

The following table is designed to show the revenue losses attributable to tax law provisions that allow 

special exclusions, exemptions, or deductions from gross income or provide special cred its, tax rates, or deferrals. The schedule shows the approximate cost of tax benefits. 

It should be noted that the effect on revenues of adding or deleting a particular tax benefit would not be 

the same as the dollar amount currently associated with the benefit. Consequently, it is not possible to say what 

the effects of increasing or decreasing selected benefits would be without considering a number of variables. 

Some minor distortions may have occurred since data presented have been condensed for purposes of 

this report. For further information, refer to "Special Analysis G: Tax Expenditures" in Special Analyses, Budget of 

the United States Government for fiscal years 1988 and 1989. 

Effect of Individual and Corporate Tax Benefits on Federal Revenues for Tax Years 1987 and 1986 

($ billions) 

Income exclusion 

Capital gains at death ... . .. . ...... . . . .. . . . .... . ........ .. . . . .. ... . ... .. . .. . . ... . . .. .. .. .. .. . . 

Disability and retirement benefits (social security and private) .... . .. . ....... . . .. ... . . . . .. . .. . .. . ... , .. 

Education allowances (scholarships and GI benefits) .. . . . .. . . ..... . . .. . .. . . . .. .. . . ... . . . . ..... . ... . 

Foreign earnings and investment incentives (income earned abroad) . . . . . . .. . . ...... ... ... . . .. . .. . . . . 

Interest and dividends (State and local bonds and debt, and life insurance) ....... .. .... ... .. . . .. . 

Medical care and insurance (employer premiums paid) .... . ............ ... ... . . .. .. ...... . . . . 

Payroll benefits and allowances (group life, accident, and unemployment) . . .. . . ..... . . . . .. .. . .... . ... .. . 

Other (age 55 or over credit on home sales) ....... . .................. .. . . . . . . . . . .. . . . . ... . . . . ... . 

Income deferrals 

Interest on U.S. saving bonds . . . . ... . ......... . .. . ....... . .. . . . ............. . . . . .... . . . .. . . . . . . 

Real estate (home sales) ..... . . .... . .. . .. . .... . .. . . . .. • ..... . ....... . .. . . . .. ..... . .... . ... .. . 

Foreign earnings (foreign sales corporations) .... . . . .. .. •.. . .. . . . . .. .. .. . . ... . . .... • ............ . . 

Other deferrals 

Taxes (shipping companies) . . . . .... . ............ . .... ... . .. . ....... . . .. . . . ...... . .. . . . . .. . . . . . 

Deductions and credit 

Agriculture related (capital outlays and gains on certain income) .. . .. .. .. . . .. .... . .... . ... . .. . ... . .. . . 

Contributions (charitable and political) ........ . .. . .. . . ....... . ...... . .. . .... . . . . .. . . .... .... . .. . . 

Earned income . . . . . . . . . . . ...... . .......... . ...... . . . ... .. . . . . . .. .. . 

Employee stock ownership plans (funded through investment and t;ix credits). . . . ... . . .... . .... . . 

Excess bad debt reserves (financial institutions) . . .... . . . .. . . . .. . . .... .... . . ....... • .. . . . .... . . . . .. 

Exemptions (credit unions) .. . ...... .. ......... . . . ..... ... .. ... . . . ... . . . . . .. .. .. .. . .... . .... .. . 

Foreign earnings (corporations doing business in U.S. possessions) . . .. . .. .. .. ... . .. ... . . . . . .. .. . . .. . 

Interest (mortgage and consumer) ... ... . . . . .. . . . .... . . .... .. .. .. . . . . ... . . . . ........ .. .. .. . ... . . 

Investments (commercial capital gains, credits , other investment incentives, construction period 

interest, and expensing developmental costs) . . . . . . . . . . ....... • . . 

Medical ... . . . .. .... . .............. . . . . .. . .. .. . . . . . . . . .. .. .. ... . ... . . .. . ....... . .... .. . 

Mining and timber (capital gains treatment of royalties and certain income) . .. . . . . .. . .. ... .. ..... .. ..... . 

Old-age, disability, and other personal exemptions . . . . . . . . ......... . .. .. ... . 

Other (deductions of motor carrier rights , certain adoption expenses, and energy credit for intercity buses) ... . . 

Property damages and losses (casualty losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . 

State and local property tax and other taxes ........ . . . ..... . ............ . .. .. .. . ... . . . 

Work incentives (employment credits under work programs) and dependent care ....... ... . . 

Accelerated depreciation (rental housing, buildings other than rental housing, and machinery and equipment) . .. 

* Less than $100 million . 

Estimated amount 

of revenue loss 

1987 1986 

5.7 4.9 

86.4 91 .1 

.9 .9 

4.0 2.4 

29.3 28.8 

24.6 23.4 

5.1 5.5 

5.9 5.6 

.9 .8 

2.6 2.0 

.2 .4 

.1 .1 

.6 1.2 

15.6 16.5 

5.9 7.1 

.7 1.2 

.4 .5 

.2 .2 

1.9 1.9 

46.6 48.4 

80.7 57.6 

3.2 3.8 

1.3 2.0 

3.6 4.1 

.3 .3 

32.8 32.5 

3.6 3.7 

13.8 46.8 
36 

OPEN-ENDED PROGRAMS AND FIXED COSTS 

The Government commits itself to provide services by passing laws that make spending mandatory. 

Since a significant amount of future spending is fixed by law, it is very probable that the Government will pay for 

these programs in future years. Listed below are the programs for fiscal 1987 that can be terminated only if the 

laws are changed. For further information, refer to the summary table entitled "Controllability of Outlays, 1987-89" 

in the Budget of the United States Government, Fiscal Year 1989. 

Payments for individuals 

Open-ended Programs and Fixed Costs, Fiscal 1987 

($ billions) 

Social security and railroad retirement . . . .. .... . .. . . .. . . . . .. .. .. . . ..... .. . ... . .. .. . ... .. .. ... .. . . 

Federal employees' retirement insurance .. ..... . ..... .... .. ........ . . .......... . ... . ... . . ..... . . . 

Unemployment assistance ......... . . .. ... . . . ...... . .. ..... ........ ......... .. ..... ........ . . . 

Assistance to students ........... . . . . . . . . . .. .. . .. . .. . . . . . .. .. .. . . . .. . . . . . . . .... .. ... . .. .. . .. . 

Food and nutrition assistance . . ..... . . . . . . ...... . .. .. ...... . .. . ................ .... . . . . . . .. .. . . 

All other . . .............. . . .... ..... .... ...... . ......... .. . ..... . .. . . . . ... . . ..... ..... ..... . 

Medical care .. . 

Public-assistance-related programs ..... ... . .. .. ... . . . .. ... . . ... . .. . . ... .. ..... .. . .. . ... . .. . ... . 

Net interest ........ . ... . .... .... . ... . . .. .. . . . . . . . . . .. . . . . ... ......... . ..... ... . . . . .. . . .. ... . . 

General revenue sharing .... . . ..... ... . . . .... . ....... . . .... . . .... . . . . .. . . ...... . .. .... ... ... . . . 

Farm price supports . . . . . . . . . . . . . ... . . ..... . . ... . . . ........ ..... . . ... . . . ... . . ... ... ... . . . . . . . 

Other open-ended programs and fi xed costs ... .. .. . .. .. . .... ..... . . . . . . ... . . .. ... ... .. ... ... ... .. . . 

Total . . .... .. ..... ... .. .... . . ... ..... . . . .. .. . . . .. . ... . . .... . . . . ... .. .. . . ... . ... ... .. .. . 

208.6 

55.2 

15.7 

3.7 

4.1 

2.9 

105.9 

25.7 

421.8 

138.6 

.1 

22.4 

1.3 

584.2 
37 

USER SURVEY FOR FY 1987 

The Department of the Treasury found that the FY 1986 CFS user response was quite helpful in 

evaluating the usefulness of the report. Again this year, we feel It ls extremely Important to have your 

response as we are continuing to make major changes and we need your comments. 

Please return the completed survey by September 30. Fold and staple the completed survey so 

that our malling address Is showing. 

We appreciate your participation In this survey. 

Please circle the appropriate response : 

1. The information in the CFS prototype provides a consolidated perspective 

of the Government's financial operations. 

2. The CFS is a starting point for further issue analyses. 

3. This year's CFS is significantly more informative. 

4. The CFS denotes an unbiased viewpoint. 

5. The addition of color enhances the graphics in the CFS. 

6. This year's addition of the following supplemental tables enhances the CFS: 

a. Additions to Non-Federal Economic Resources 

b. Effect of Individual and Corporate Tax Benefits on Federal Revenues 

c. Open-ended Programs and Fixed Costs 

7. The amount of information provided in the following sections is: 

a. Statement of Financial Position 

b. Statement of Operations 

c. Statement of Cash Flow 

d. Notes to Financial Statements 

e. Supplemental Tables 

8. My primary interest in the CFS is--

a. General interest 

b. Classroom discussion 

c. Starting point for further research 

d. Basis for input to elected officials 

e. Other (please specify) 

9. My work may be classified as--

a. Federal Government 

b. State or local government 

c. Academia 

d. Public accounting 

e. Private industry 

f. News media 

g. Finance/banking 

h. Other (please specify) 

10. Approximately how many people in your organization use the CFS? 

a. None b. 1-2 c. 3-5 d. 6-10 

Agree Neutral 

Too 

much 

e. More than 10 

2 

2 

2 

2 

2 

2 

2 

2 

Just 

right 

2 

2 

2 

2 

2 

Disagree 

3 

3 

3 

3 

3 

3 

3 

3 

Too 

little 

3 

3 

3 

3 

3 
(FOLD HERE) 

Department of the Treasury 

Financial Management Service 

Financial Reports Branch 

Liberty Center, Attn: 3021 GAO Bldg. 

Washington, DC 20227 
39 

RESULTS OF FY 1986 USER SURVEY 

The Department of the Treasury wishes to acknowledge and to express its appreciation for the answers 

and comments you provided us on the FY 1986 user survey. 

The following conclusions are based on our review and analysis of your response: 

1. The CFS gives additional informational perspectives to the public. 

2. The CFS is easily understood, is relevant, and is unbiased. 

3. The readership is divergent and the principal interest in the CFS is: general, or starting 

point for further research. 

4. Although the CFS is useful, it does not contribute directly to the political decisionmaking 

process through a citizen's elected representatives . 

5. Charts and graphs are helpful to understand the CFS. 

6. The Statement of Operations and Supplemental Tables could be expanded. 

7. The CFS would be more useful if audited. 

The results of this survey have been tabulated and interpreted in a manner that reflects responses 

received from the total readership. 

ADDITIONAL FINANCIAL MANAGEMENT SERVICE 

RELEASES ON FEDERAL FINANCES 

Sold on a subscription basis only ( exceptions noted) by the Superintendent of Documents, 

U.S. Government Printing Office, Washington, D.C. 20402 (phone orders: (202) 783-3238): 

• Daily Treasury Statement. Provides summary data on the Treasury's cash and debt 

operations for the Federal Government. Published each Federal working day by the 

Financial Management Service. Subscription price: $152 per year (domestic), $190 

per year (foreign). 

• Monthly Treasury Statement of Receipts and Outlays of the United States Government. Provides Federal budget results, including receipts and outlays of funds, 

the surplus or deficit, and the means of financing the deficit or disposing of the 

surplus. Prepared by the Financial Management Service, based on agency reporting. 

Subscription price: $22 per year (domestic), $27.50 per year (foreign). 

• Treasury Bulletin (quarterly). Contains a mix of narrative, tables, and charts on 

Treasury issues, Federal financial operations, international statistics, and special reports such as Liabilities and Other Financial Commitments of the U.S . Government, 

and U.S. Currency and Coin Outstanding and in Circulation. Compiled by Financial 

Management Service. Subscription price: $20 per year (domestic), $25 per year 

(foreign), $5.50 single issue. 

• United States Government Annual Report and Appendix. Annual Report presents 

budgetary results at the summary level. Appendix presents the individual receipt and 

appropriation accounts at the detail level. Compiled by the Financial Management 

Service. Annual Report single copy price: $2.00; Appendix free from Financial 

Management Service. 
DEPARTMENT OF THE TREASURY 

FINANCIAL MANAGEMENT SERVICE 

OFFICE OF THE COMMISSIONER 

WASHINGTON, D.C. 20227 

OFFICIAL BUSINESS 

PENALTY FOR PRIVATE USE, $300 

FIRST-CLASS MAIL 

POSTAGE & FEES PAID 

Department of the Treasury 

Permit No. G-4