Financial Statements of the United States Government for the Fiscal Years Ended September 30, 2024, and 2023

Statements of Net Cost

These statements present the net cost of the government operations for FYs 2024 and 2023. Costs and earned revenues are categorized on the Statement of Net Cost by significant entity, providing greater accountability by showing the relationship of the entities’ net cost to the government-wide net cost. Costs and earned revenues are presented in this Financial Report on an accrual basis, while the Budget presents outlays and receipts, generally on a cash basis. The focus of the Budget is by entity.

The Statements of Net Cost contain the following four components:

Gross cost—is the total cost of providing federal goods and services, excluding (gain)/loss from changes in assumptions and before considering related exchange revenue. The gross costs are the amounts reported by each entity, adjusted to reflect certain cost assignments made on a cause-and-effect or other reasonable basis (see discussion below).
Earned revenue—is exchange revenue resulting from the government providing goods and services to the public at a price.
(Gain)/loss from changes in assumptions—is the gain or loss from changes in long-term assumptions used to measure the liabilities reported for federal civilian and military employee pensions, OPEB, and ORB, including veterans’ compensation.
Net cost—is computed by subtracting earned revenue from gross cost, adjusted by the (gain)/loss from changes in assumptions.

Individual entity net cost amounts will differ from the entity’s financial statements primarily because of the elimination of intra-governmental activity and the subsequent reallocation of certain costs to individual entities at the government-wide level. While intra-governmental costs are eliminated from the face of the financial statements, the consolidated Statements of Net Cost is intended to show the total cost for each entity, therefore, reallocations are completed at the government-wide level to show costs more accurately at the entity level for employee benefit costs, intra-governmental buy/sell costs and related revenues, custodial collections, and imputed costs. These reallocated costs have a net effect of zero on the Statements of Net Cost in the Financial Report.

Because of its specific function, most of the employee benefit costs originally associated with the OPM have been reallocated to the user entities for government-wide reporting purposes. With regard to intra-governmental buy/sell transactions the selling entities’ costs are reallocated to the buying entities in order to allocate the costs to the entities that benefit from such costs.

In addition, the intra-governmental imputed costs recognized for the receipt of goods and services, financed in whole or part by the providing entities, have been reallocated to the net cost amounts of the individual entities receiving the benefit and subtracted from the applicable administering entities’ net cost amounts. The most significant types of imputed costs that are recorded relate to post-retirement and health benefits, FECA, and Treasury’s Judgment Fund.

The interest on securities issued by Treasury and held by the public is reported on Treasury’s financial statements, but because of its importance and the dollar amounts involved, it is reported separately in these statements.

United States Government
Statement of Net Cost
for the Year Ended September 30, 2024

Table may scroll on smaller screens

(In billions of dollars)	Gross Cost	Earned Revenue	Subtotal	(Gain)/Loss from Changes in Assumptions	Net Cost
Department of Health and Human Services	1,907.3	170.1	1,737.2	1.0	1,738.2
Social Security Administration	1,530.5	0.3	1,530.2	-	1,530.2
Department of Defense	1,062.9	67.3	995.6	236.7	1,232.3
Interest on Treasury Securities held by the public	909.1	-	909.1	-	909.1
Department of Veterans Affairs	515.6	5.9	509.7	(37.7)	472.0
Department of the Treasury	321.5	99.2	222.3	-	222.3
Department of Agriculture	213.7	10.6	203.1	-	203.1
Office of Personnel Management	147.7	31.9	115.8	83.8	199.6
Department of Education	218.8	27.1	191.7	-	191.7
Department of Transportation	116.8	1.5	115.3	-	115.3
Department of Homeland Security	118.4	17.0	101.4	-	101.4
Department of Energy	81.3	5.8	75.5	-	75.5
Security Assistance Accounts	99.5	25.1	74.4	-	74.4
Department of Justice	49.4	1.9	47.5	-	47.5
Department of Housing and Urban Development	51.2	4.4	46.8	-	46.8
Department of Labor	40.6	-	40.6	-	40.6
Department of State	44.2	6.1	38.1	(0.3)	37.8
Department of the Interior	32.1	3.4	28.7	-	28.7
National Aeronautics and Space Administration	25.0	0.5	24.5	-	24.5
Agency for International Development	23.5	0.1	23.4	-	23.4
Federal Communications Commission	17.6	0.4	17.2	-	17.2
Department of Commerce	20.2	4.7	15.5	-	15.5
Railroad Retirement Board	14.6	-	14.6	-	14.6
Environmental Protection Agency	14.3	0.6	13.7	-	13.7
United States Postal Service	89.4	77.8	11.6	-	11.6
Pension Benefit Guaranty Corporation	35.3	24.8	10.5	-	10.5
National Science Foundation	9.4	-	9.4	-	9.4
Smithsonian Institution	1.6	0.4	1.2	-	1.2
Millennium Challenge Corporation	0.7	-	0.7	-	0.7
National Credit Union Administration	0.4	0.1	0.3	-	0.3
U.S. Nuclear Regulatory Commission	0.9	0.7	0.2	-	0.2
Securities and Exchange Commission	3.1	3.4	(0.3)	-	(0.3)
Farm Credit System Insurance Corporation	0.1	0.4	(0.3)	-	(0.3)
Export-Import Bank of the United States	(0.1)	0.2	(0.3)	-	(0.3)
United States International Development Finance Corporation	0.1	0.4	(0.3)	-	(0.3)
General Services Administration	1.6	2.1	(0.5)	-	(0.5)
Tennessee Valley Authority	11.1	12.3	(1.2)	-	(1.2)
National Railroad Retirement Investment Trust	0.1	4.6	(4.5)	-	(4.5)
Small Business Administration	(0.2)	4.5	(4.7)	-	(4.7)
Federal Deposit Insurance Corporation	21.9	35.5	(13.6)	-	(13.6)
All other entities	21.0	1.8	19.2	0.1	19.3
Total	7,772.2	652.9	7,119.3	283.6	7,402.9
The accompanying notes are an integral part of these financial statements.

United States Government
Statement of Net Cost
for the Year Ended September 30, 2023

Table may scroll on smaller screens

(In billions of dollars)	Gross Cost	Earned Revenue	Subtotal	(Gain)/Loss from Changes in Assumptions	Net Cost
Department of Health and Human Services	1,875.6	161.2	1,714.4	(0.3)	1,714.1
Social Security Administration	1,433.1	0.3	1,432.8	-	1,432.8
Department of Defense	969.0	55.0	914.0	89.3	1,003.3
Interest on Treasury Securities held by the public	678.0	-	678.0	-	678.0
Department of Veterans Affairs	902.0	5.5	896.5	558.8	1,455.3
Department of the Treasury	357.4	53.7	303.7	-	303.7
Department of Agriculture	238.1	11.8	226.3	-	226.3
Office of Personnel Management	124.0	29.4	94.6	111.9	206.5
Department of Education	50.9	32.4	18.5	-	18.5
Department of Transportation	108.2	1.5	106.7	-	106.7
Department of Homeland Security	111.2	15.6	95.6	1.0	96.6
Department of Energy	86.2	11.3	74.9	-	74.9
Security Assistance Accounts	109.3	6.1	103.2	-	103.2
Department of Justice	51.6	3.7	47.9	-	47.9
Department of Housing and Urban Development	71.4	4.1	67.3	-	67.3
Department of Labor	45.3	-	45.3	-	45.3
Department of State	41.6	6.0	35.6	(0.2)	35.4
Department of the Interior	29.5	3.0	26.5	-	26.5
National Aeronautics and Space Administration	24.8	0.4	24.4	-	24.4
Agency for International Development	36.8	-	36.8	-	36.8
Federal Communications Commission	18.6	0.4	18.2	-	18.2
Department of Commerce	17.3	4.3	13.0	-	13.0
Railroad Retirement Board	15.6	-	15.6	-	15.6
Environmental Protection Agency	12.3	0.4	11.9	-	11.9
United States Postal Service	83.8	77.0	6.8	-	6.8
Pension Benefit Guaranty Corporation	55.0	17.0	38.0	-	38.0
National Science Foundation	9.0	-	9.0	-	9.0
Smithsonian Institution	2.0	0.5	1.5	-	1.5
Millennium Challenge Corporation	0.7	-	0.7	-	0.7
National Credit Union Administration	0.4	0.1	0.3	-	0.3
U.S. Nuclear Regulatory Commission	0.8	0.7	0.1	-	0.1
Securities and Exchange Commission	2.4	2.6	(0.2)	-	(0.2)
Farm Credit System Insurance Corporation	-	0.6	(0.6)	-	(0.6)
Export-Import Bank of the United States	(0.9)	(0.2)	(0.7)	-	(0.7)
United States International Development Finance Corporation	-	0.3	(0.3)	-	(0.3)
General Services Administration	0.9	1.1	(0.2)	-	(0.2)
Tennessee Valley Authority	11.4	12.0	(0.6)	-	(0.6)
National Railroad Retirement Investment Trust	0.1	2.8	(2.7)	-	(2.7)
Small Business Administration	35.5	5.2	30.3	-	30.3
Federal Deposit Insurance Corporation	21.8	11.9	9.9	-	9.9
All other entities	31.0	1.8	29.2	0.1	29.3
Total	7,661.7	539.5	7,122.2	760.6	7,882.8
The accompanying notes are an integral part of these financial statements.

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Last modified 02/21/25