Financial Statements of the United States Government for the Fiscal Years Ended September 30, 2020, and 2019

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 intra-governmental debt holdings and are included in Note 12—Federal Debt and Interest Payable, in the table titled Intra-governmental 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.

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 for funds from dedicated collections is shown separately.

Adjustments to beginning net position may include corrections of material errors or changes in accounting principles. See Note 1.S—Adjustments to Beginning Net Position for detailed information.

Net Position, End 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.

Ajustments 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.

United States Government
Statement of Operations and Changes in Net Position
for the Year Ended September 30, 2020

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United States Government
Statement of Operations and Changes in Net Position
for the Year Ended September 30, 2019 (Restated)

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