Contents 

A Message from the Secretary of the Treasury 

Executive Summary........................................................................................... 1 

Management’s Discussion and Analysis .......................................................... 12 

Statement of the Comptroller General of the United States .......................... 42 

Financial Statements 

 Introduction ....................................................................................................... 52 

 Statement of Net Cost ........................................................................................ 59 

 Statement of Operations and Changes in Net Position ...................................... 61 

 Reconciliations of Net Operating Cost and Budget Deficit ............................... 63 

 Statements of Changes in Cash Balance from Budget and Other 

 Activities ........................................................................................................... 64 

 Balance Sheets ................................................................................................... 65 

 Statements of Long-Term Fiscal Projections..................................................... 66 

 Statements of Social Insurance .......................................................................... 67 

 Statement of Changes in Social Insurance Amounts ......................................... 70 

Notes to the Financial Statements 

 Note 1. Summary of Significant Accounting Policies ....................................... 72 

 Note 2. Cash and Other Monetary Assets .......................................................... 85 

 Note 3. Accounts Receivable, Net ..................................................................... 86 

 Note 4. Loans Receivable, Net and Loan Guarantee Liabilities ........................ 87 

 Note 5. Inventory and Related Property, Net .................................................... 91 

 Note 6. General Property, Plant, and Equipment, Net ....................................... 93 

 Note 7. Investments ........................................................................................... 94 

 Note 8. Investments in Special Purpose Vehicles .............................................. 97 

 Note 9. Investments in Government-Sponsored Enterprises ............................. 100 

 Note 10. Advances and Prepayments ................................................................ 103 

 Note 11. Other Assets ........................................................................................ 104 

 Note 12. Accounts Payable ................................................................................ 105 

 Note 13. Federal Debt and Interest Payable ...................................................... 106 

 Note 14. Federal Employee and Veteran Benefits Payable ............................... 110 

 Note 15. Environmental and Disposal Liabilities .............................................. 120 

 Note 16. Benefits Due and Payable ................................................................... 122 

 Note 17. Insurance and Guarantee Program Liabilities ..................................... 123 

 Note 18. Advances from Others and Deferred Revenue.................................... 125 

 Note 19. Other Liabilities .................................................................................. 126 

 Note 20. Collections and Refunds of Federal Revenue ..................................... 128 

 Note 21. Commitments ...................................................................................... 131 

 Note 22. Contingencies ..................................................................................... 134 

 Note 23. Funds from Dedicated Collections ...................................................... 141 

 Note 24. Fiduciary Activities............................................................................. 148 

 Note 25. Social Insurance .................................................................................. 150 

 Note 26. Long-Term Fiscal Projections............................................................. 159 

 Note 27. Stewardship Property, Plant, and Equipment ...................................... 165 

 Note 28. Disclosure Entities and Related Parties .............................................. 166 

 Note 29. Public-Private Partnerships ................................................................. 172 
 Note 30. COVID-19 Activity ............................................................................ 174 

 Note 31. Subsequent Events ............................................................................. 178 

Required Supplementary Information (Unaudited) 

 The Sustainability of Fiscal Policy .................................................................... 180 

 Social Insurance ................................................................................................ 191 

 Social Security and Medicare .......................................................................... 191 

 Railroad Retirement, Black Lung, and Unemployment Insurance .................. 205 

 Deferred Maintenance and Repairs ................................................................... 207 

 Other Claims for Refunds .................................................................................. 207 

 Tax Assessments ............................................................................................... 208 

 Federal Oil and Gas Resources .......................................................................... 208 

 Federal Natural Resources Other than Oil and Gas ........................................... 210 

Other Information (Unaudited) 

 Tax Burden ........................................................................................................ 212 

 Tax Gap ............................................................................................................. 213 

 Tax Expenditures ............................................................................................... 214 

 Unmatched Transactions and Balances ............................................................. 215 

Appendices 

 Appendix A: Reporting Entity ........................................................................... 218 

 Appendix B: Glossary of Acronyms.................................................................. 222 

U.S. Government Accountability Office Independent Auditor’s Report...... 228 

For a complete listing of frequently used acronyms found 

throughout the Financial Report, please refer to the Glossary 

of Acronyms located in Appendix B.