Note 18. Reconciliation of Net Cost of Operations to Budget

Bureau of the Comptroller and Global Financial Services
Report
December 16, 2013




Budgetary accounting used to prepare the Statement of Budgetary Resources and proprietary accounting used to prepare the other principal financial statements are complementary, but both the types of information about assets, liabilities, net cost of operations and the timing of their recognition are different. The reconciliation of budgetary resources obligated during the current period to the net cost of operations explains the difference between the sources and uses of resources as reported in the budgetary reports and in the net cost of operations.The first section of the reconciliation below presents total resources used in the period to incur obligations. Generally, those resources are appropriations, net of offsetting collections and receipts. The second section adjusts the resources. Some resources are used for items that will be reflected in future net cost. Some are used for assets that are reported on the Balance Sheet, not as net cost. The final section adds or subtracts from total resources those items reported in net cost that do not require or generate resources. As an example, the Department collects regular passport fees that are reported as revenue on the Statement of Net Cost. However, these fees are not shown as a resource because they are returned to Treasury and cannot be obligated or spent by the Department.

Reconciliation of Net Cost of Operations to Budget
(dollars in millions)
For the Year Ended September 30, 2013 2012

Resources Used to Finance Activities:
   
Budgetary Resources Obligated    
Obligations Incurred $38,691 $40,052
Spending Authority from Offsetting Collections and Recoveries (12,111) (11,945)
Offsetting Receipts (452) (394)
Net Obligations 26,128 27,713
Imputed Financing 156 160
Other Resources 678 648
Total Resources Used to Finance Activities 26,962 28,521

Resources Used to Finance Items not Part of Net Cost:
   
Resources Obligated for Future Costs - goods ordered but not yet provided 989 266
Resources that Finance the Acquisition of Assets (2,468) (2,311)
Resources that Fund Expenses Recognized in Prior Periods (670) (1,229)
Other (14) 581
Total Resources Used to Finance Items not Part of Net Cost (2,163) (2,693)
Total Resources Used to Finance the Net Cost of Operations 24,799 25,828

Components of the Net Cost of Operations that will not require or generate Resources in the Current Period:
   
Increase in Actuarial Liability 633 1,215
Passport Fees Reported as Revenue Returned to Treasury General Fund (687) (719)
Depreciation and Amortization 812 758
Interest Income of Trust Funds (675) (716)
Other 185 90
Total Components of the Net Cost of Operation that will not require or generate Resources in the Current Period 268 628
Net Cost of Operations $25,067 $26,456