Transcript The Financial Report of the United States Government

The FY 2012 Financial Report of the
U.S. Government
Scott Bell
Office of the Fiscal Assistant Secretary
U.S. Department of the Treasury
AGA – WV Joint Meeting
May 14, 2013
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Citizen’s Guide
Key Issues
• Current Financial
Position and
Condition
(Traditional)
• Social Insurance &
Sustainability
(Non-Traditional)
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Financial Report
of the U.S.
Government &
Citizen’s Guide
Audit
Bureau of
Government
Accountability
Office
Fiscal Service
(Treasury)
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Treasury Office of the
Fiscal Assistant
Secretary
Analysis
Office of Management
and Budget (OMB)
Fiscal Projections
Agencies reclassify financial information into common format for consolidation
35
Significant
Reporting
Entities.
115
Other
Reporting
Entities
Agency
Agency
Agency
Performance &
Accountability Report
Performance &
Accountability Report
Performance &
Accountability Report
Annual Financial
Report
Annual Financial
Report
Annual Financial
Report
Audit
Audit
Audit
Inspector General
Inspector General
Inspector General
Contract
Contract
Contract
Comparing Cost and Deficit
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What Came In & What Went Out
Total FY 2012 Taxes &
Other Revenues: $2.5t
Gross Cost: $3.9t
- Earned Revenue $350.9b
+/- Assumption Loss/Gain $320.2b
Net Cost: $3.8t
- Taxes / Other Revenue $2.5t
Net Operating Cost: $1.3t
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What We Own & What We Owe
Assets:
Cash & Other Monetary Assets
$
206.2
Loans Receivable and Investments, Net* $ 1,009.1
Inventories
$
299.0
Property, Plant & Equipment, Net
$
855.0
Other
$
379.0
Total Assets
$ 2,748.3
*Includes Net Loans Receivable and Mortgage-Backed
Securities, Troubled Asset Relief Program (TARP) Direct
Loans and Equity Investments, and Investments in
Government-Sponsored Enterprises (GSEs).
Off-balance sheet resources of the U.S. Government (not intended to be used to meet obligations):
•
Stewardship Land (e.g., National parks) and Heritage Assets (e.g., monuments) (Note 27)
•
Stewardship Investments in (1) Non-Federal Physical Property (e.g., interstate, national highways); (2)
Human Capital (e.g., job-training, employment programs); and (3) Research and Development (e.g.,
NIH, DoD, NASA).
•
Natural Resources (oil/gas royalties Required Supplementary Information through 2015, then “basic”).
•
Government’s power to tax
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Statement of Social Insurance
Social Insurance Future Expenditures in Excess of Future Revenues
Dollars in Billions
Open Group (Net):
Social Security (OASDI)
Medicare (Parts A, B, & D)
Other
Total Social Insurance Expenditures, Net
(Open Group)
2012
2011
Increase / (Decrease)
$
%
$ (11,278) $ (9,157) $
$ (27,174) $ (24,572) $
$
(102) $
(101) $
2,121
2,602
1
23%
11%
1%
$ (38,554) $ (33,830) $
4,724
14%
• Net present value: projected expenditures and receipts:
– “Open” vs. “Closed” Group
• Audit Disclaimer - “…significant uncertainties…primarily
related to the achievement of projected reductions in
Medicare cost growth…prevented us from expressing an
opinion on those statements.”
• Statement of Changes in Social Insurance
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A Broader Perspective –
Fiscal Sustainability
• What is Fiscal Sustainability?
– Debt/GDP stable over the long term.
• Look at ALL revenues and spending.
– Broader focus than SOSI.
KEY ASSUMPTIONS
Current Law/Policy
Projections, NOT Predictions
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Pieces of the Puzzle
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Effect on the Debt
“Blessed are the young, for they
shall inherit the National debt.”
--- Herbert Hoover
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NATION BY THE NUMBERS
A Snapshot of
The Government's Financial Position & Condition
2012
billions of dollars
2011
Gross Costs
Less: Earned Revenues
Gain/(Loss) from Changes in Assumptions
Net Cost
Less: Total Taxes and Other Revenues
Unmatched Transactions and Balances
Net Operating Cost
$ (3,844.9) $ (3,998.3)
$
350.8 $
365.6
$
(320.2) $
(28.1)
$ (3,814.3) $ (3,660.8)
$ 2,518.2 $ 2,363.8
$
(20.2) $
(15.6)
$ (1,316.3) $ (1,312.6)
Assets:
Less: Liabilities, comprised of:
Debt Held By the Public & Accrued Interest
Federal Employee & Veteran Benefits
Other
Total Liabilities
Net Position (Assets Minus Liabilities)
$
2,748.3
$
2,707.3
$ (11,332.3) $ (10,174.1)
$ (6,274.0) $ (5,792.2)
$ (1,243.0) $ (1,526.4)
$ (18,849.3) $ (17,492.7)
$ (16,101.0) $ (14,785.4)
Sustainability Measures:
Social Insurance Net Expenditures 1
Total Non-Interest Net Expenditures 2
$
$
(38,554) $
(16,500) $
Sustainability Measures as Percent of Gross Domestic Product (GDP):
-4.2%
Social Insurance Net Expenditures 3
Total Federal Government Non-Interest Net Expenditures
-1.7%
(33,830)
(6,400)
-3.8%
-0.7%
Budget Results
Unified Budget Deficit
$ (1,089.4) $ (1,298.6)
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FY 2012 Audit Results
• Agency Audits - 31 of 35 significant reporting agencies (21 of
24 CFO Act agencies) received clean audit opinions.
– Qualified: Dept of Homeland Security,
U.S. Agency for International Development (USAID)
– Disclaimer: DoD
Railroad Retirement Board (RRB).
• Governmentwide Audit – Disclaimer (16th consecutive year)
– DoD accounting weaknesses
– Intragovernmental Balances and Transactions
– Compilation / Consolidation Process
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“To state the facts frankly is not to
despair the future nor indict the past.
The prudent heir takes careful
inventory of his legacies and gives a
faithful accounting to those whom he
owes an obligation of trust.”
- John F. Kennedy
Find Out More!
http://www.fms.treas.gov/finrep12/fr_index_new.html
http://www.whitehouse.gov/omb/
www.gao.gov
[email protected]
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