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 40

Financial Statements Introduction 52

Statements of Net Cost 59

Statements 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

Statements of Changes in Social Insurance Amounts70

Notes to the Financial Statements

Note 1. Summary of Significant Accounting Policies 72

Note 2. Cash and Other Monetary Assets 84

Note 3. Accounts Receivable, Net 85

Note 4. Loans Receivable, Net and Loan Guarantees 86

Note 5. Inventory and Related Property, Net 90

Note 6. Property, Plant, and Equipment, Net 91

Note 7. Investments in Government-Sponsored Enterprises 92

Note 8. Investments 96

Note 9. Advances and Prepayments 99

Note 10. Other Assets 100

Note 11. Accounts Payable 101

Note 12. Federal Debt and Interest Payable 102

Note 13. Federal Employee and Veteran Benefits Payable 104

Note 14. Environmental and Disposal Liabilities 111

Note 15. Benefits Due and Payable 113

Note 16. Insurance and Guarantee Program Liabilities 114

Note 17. Advances from Others and Deferred Revenue115

Note 18. Other Liabilities 116

Note 19. Collections and Refunds of Federal Revenue 118

Note 20. Commitments 121

Note 21. Contingencies 123

Note 22. Funds from Dedicated Collections 129

Note 23. Fiduciary Activities135

Note 24. Long-Term Fiscal Projections136

Note 25. Social Insurance 142

Note 26. Stewardship Property, Plant, and Equipment 151

Note 27. Disclosure Entities and Related Parties 152

Note 28. Public-Private Partnerships 157

Note 29. Subsequent Events 158

Required Supplementary Information (Unaudited)

The Sustainability of Fiscal Policy 160

Social Insurance 172

Social Security and Medicare 172

Railroad Retirement, Black Lung, and Unemployment Insurance 185

Deferred Maintenance and Repairs 188

Other Claims for Refunds 188

Tax Assessments 189

Federal Oil and Gas Resources 189

Federal Natural Resources Other than Oil and Gas 191

Land and Permanent Land Rights 192

Other Information (Unaudited) Tax Burden 194

Tax Gap 195

Tax Expenditures 195

Appendices

Appendix A: Reporting Entity 198

Appendix B: Glossary of Acronyms 202

U.S. Government Accountability Office Independent Auditor’s Report 208