What are stewardship assets? How does the accounting for a stewardship asset differ from that for general property, plant, and equipment?

The federal government uses two groups of funds. Identify the two fund groups, and the funds associated with each group. Compare the funds to those used by state and local governments.

Answer “true” or “false” to the following statements: Every syllogism is a categorical syllogism.

Defining the reporting entity at the federal level is complicated by different perspectives from which the federal government can be viewed. What are the three perspectives? How are they defined? How do they interrelate?

“Net position for a federal agency is similar to net position of a state or local government.” Do you agree or disagree? Explain.

Explain the differences among these accounts: (1) Estimated Revenues used by state and local governments, (2) Other Appropriations Realized used by federal agencies in their budgetary track, and (3) Fund Balance with Treasury used by federal agencies in their proprietary track.

According to the FASAB conceptual framework, there are four objectives for federal financial reporting. Discuss the four objectives and explain why the focus of the FASAB objectives differs from that of the GASB.

The complexity and uniqueness of the federal government makes it difficult to conduct a meaningful analysis of its financial condition. However, conducting a financial statement analysis does provide a better understanding of the federal government.

$$\begin{array}{c} \textbf{UNITED STATES GOVERNMENT}\\ \textbf{Statements of Changes in Cash Balance from Unified Budget and Other Activities}\\ \textbf{For the Years Ended September 30, 2016, and 2015}\\ \textbf{(in billions of dollars)}\\ \end{array}$$

$$\begin{array}{lrrr} \textbf{Cash flow from unified budget activities}\\ \quad\text{Total unified budgetary receipts}&\text{3,266.7}&\text{3,248.7}\\ \quad\text{Total unified budgetary outlays}&\underline{\text{(3,854.1)}}&\underline{\text{(3,687.6)}}\\ \quad\text{Unified budget deficit}&\underline{\text{\hspace{8pt}(587.4)}}&\underline{\text{\hspace{8pt}(438.9)}}\\[5pt] \textbf{Adjustments for non-cash outlays included in the unified budget}\\ \quad\text{Interest accrued on Treasury securities held by the public}&\text{264.1}&\text{254.4}\\ \quad\text{Agencies year-end credit reform subsidy re-estimates}&\text{(12.7)}&\text{26.8}\\ \quad\text{Subsidy expense accrued under direct loan \& guarantee programs}&\underline{\text{\hspace{20pt}11.8}}&\underline{\text{\hspace{13pt}(22.0)}}\\ \quad\text{Subtotal-Adjustments for non-cash transactions in unified budget}&\underline{\text{\hspace{15pt}263.2}}&\underline{\text{\hspace{15pt}250.2}}\\[5pt] \textbf{Cash flow from activities not included in unified budget}\\ \textbf{Cash flow from non-budget activities}\\ \quad\text{Interest paid on Treasury securities held by the public}&\text{(262.7)}&\text{(243.5)}\\ \quad\text{Other direct loan transactions}&\text{(80.3)}&\text{(119.9)}\\ \quad\text{Repayment of principal on direct loans}&\text{(11.6)}&\text{17.4}\\ \quad\text{Other guaranteed loan transactions}&\text{(10.2)}&\text{9.8}\\ \quad\text{Miscellaneous liabilities}&\text{1.6}&\text{(0.3)}\\ \quad\text{Deposit fund liability balances}&\text{(0.7)}&\text{20.5}\\ \quad\text{Seignorage}&\underline{\text{\hspace{25pt}0.6}}&\underline{\hspace{25pt}\text{0.6}}\\ \quad\text{Subtotal-cash flow from non-budget activities}&\underline{\text{\hspace{8pt}(363.3)}}&\underline{\text{\hspace{8pt}(315.4)}}\\[5pt] \textbf{Cash flow from monetary transactions}\\ \quad\text{Loans to the IMF}&\text{0.9}&\text{3.0}\\ \quad\text{Other monetary assets}&\text{1.9}&\text{0.6}\\ \quad\text{Special drawing rights}&\underline{\text{\hspace{18pt}(0.3)}}&\underline{\hspace{18pt}\text{(2.9)}}\\ \quad\text{Subtotal-cash flow from monetary transactions}&\underline{\text{\hspace{25pt}2.5}}&\underline{\hspace{25pt}\text{0.7}}\\[5pt] \textbf{Cash flow from financing}\\ \quad\text{Borrowing from the public}&\text{8,390.4}&\text{7,037.5}\\ \quad\text{Repayment of debt held by the public}&\text{(7,343.3)}&\text{(6,700.6)}\\ \quad\text{Effect of uninvested principal from the Thrift Savings Plan (TSP) G Fund}&\text{(203.2)}&\text{203.2}\\ \quad\text{Agency securities}&\underline{\text{\hspace{25pt}0.1}}&\underline{\text{\hspace{25pt}0.1}}\\ \quad\text{Subtotal-cash flow from financing}&\underline{\text{\hspace{15pt}844.0}}&\underline{\hspace{15pt}\text{540.2}}\\[5pt] \textbf{Other}&\underline{\text{\hspace{25pt}0.5}}&\underline{\text{\hspace{25pt}3.4}}\\ \quad\text{Change in cash balance}&\text{159.5}&\text{40.2}\\ \quad\text{Beginning cash balance}&\underline{\text{\hspace{15pt}305.1}}&\underline{\text{\hspace{15pt}264.9}}\\ \quad\text{Ending cash balance}&\underline{\underline{\text{\hspace{15pt}464.6}}}&\underline{\underline{\text{\hspace{15pt}305.1}}}\\ \end{array}$$

The accompanying notes are an integral part of these financial statements.

$$\begin{array}{c} \textbf{Property, Plan, and Equipment}\\ \textbf{As of September 30, 2016}\\ \textbf{(in billions of dollars)}\\ \end{array}$$

$$\begin{array}{c} &&&&&&&&&&&&&&&&&&&&&\textbf{Accumulated Depreciation/}\\ &&&&&&&&&&&&&&&&&&&&\textbf{Cost}&\textbf{Amortization}&\textbf{Net}\\ \end{array}$$

$$\begin{array}{lrrrrrr} &\textbf{Defense}&\textbf{Others}&\textbf{Defense}&\textbf{Others}&\textbf{Defense}&\textbf{Others}\\[5pt] \text{Buildings, structures, and facilities}&\text{384.1}&\text{275.3}&\text{230.1}&\text{150.8}&\text{154.0}&\text{124.5}\\ \text{Furniture, fixtures, and equipment}&\text{1,054.5}&\text{172.7}&\text{639.7}&\text{113.3}&\text{414.8}&\text{59.4}\\ \text{Construction in progress}&\text{118.1}&\text{46.5}&\text{N/A}&\text{N/A}&\text{118.1}&\text{46.5}\\ \text{Land}&\text{10.7}&\text{13.0}&\text{N/A}&\text{N/A}&\text{10.7}&\text{13.0}\\ \text{Internal use software}&\text{9.5}&\text{33.1}&\text{6.0}&\text{20.7}&\text{3.5}&\text{12.4}\\ \text{Assets under capital lease}&\text{0.4}&\text{4.1}&\text{0.2}&\text{1.7}&\text{0.2}&\text{2.4}\\ \text{Leasehold improvements}&\text{0.6}&\text{10.4}&\text{0.3}&\text{6.3}&\text{0.3}&\text{4.1}\\ \text{Other property, plant, and equipment}&\underline{\text{\hspace{15pt}10.3}}&\underline{\text{\hspace{15pt}10.8}}&\underline{\text{\hspace{19pt}--}}&\underline{\text{\hspace{20pt}5.5}}&\underline{\text{\hspace{7pt}10.3}}&\underline{\text{\hspace{12pt}5.3}}\\ \quad\text{Subtotal}&\underline{\underline{\text{\hspace{2pt}1,588.2}}}&\underline{\underline{\text{\hspace{10pt}565.9}}}&\underline{\underline{\text{\hspace{2pt}876.3}}}&\underline{\underline{\text{\hspace{10pt}298.3}}}&\underline{\underline{\text{\hspace{2pt}711.9}}}&\underline{\underline{\text{\hspace{2pt}267.6}}}\\ \qquad\text{Total property, plant, and equipment, net}&&\underline{\underline{\text{\hspace{2pt}2,154.1}}}&&\underline{\underline{\text{\hspace{2pt}1,174.6}}}&&\underline{\underline{\text{\hspace{2pt}979.5}}}\\ \end{array}$$

Required

Based on the ratios you have calculated, how would you assess the financial condition of the federal government for FY 2016?

The complexity and uniqueness of the federal government makes it difficult to conduct a meaningful analysis of its financial condition. However, conducting a financial statement analysis does provide a better understanding of the federal government.

$$\begin{array}{c} \textbf{UNITED STATES GOVERNMENT}\\ \textbf{Statements of Changes in Cash Balance from Unified Budget and Other Activities}\\ \textbf{For the Years Ended September 30, 2016, and 2015}\\ \textbf{(in billions of dollars)}\\ \end{array}$$

$$\begin{array}{lrrr} \textbf{Cash flow from unified budget activities}\\ \quad\text{Total unified budgetary receipts}&\text{3,266.7}&\text{3,248.7}\\ \quad\text{Total unified budgetary outlays}&\underline{\text{(3,854.1)}}&\underline{\text{(3,687.6)}}\\ \quad\text{Unified budget deficit}&\underline{\text{\hspace{8pt}(587.4)}}&\underline{\text{\hspace{8pt}(438.9)}}\\[5pt] \textbf{Adjustments for non-cash outlays included in the unified budget}\\ \quad\text{Interest accrued on Treasury securities held by the public}&\text{264.1}&\text{254.4}\\ \quad\text{Agencies year-end credit reform subsidy re-estimates}&\text{(12.7)}&\text{26.8}\\ \quad\text{Subsidy expense accrued under direct loan \& guarantee programs}&\underline{\text{\hspace{20pt}11.8}}&\underline{\text{\hspace{13pt}(22.0)}}\\ \quad\text{Subtotal-Adjustments for non-cash transactions in unified budget}&\underline{\text{\hspace{15pt}263.2}}&\underline{\text{\hspace{15pt}250.2}}\\[5pt] \textbf{Cash flow from activities not included in unified budget}\\ \textbf{Cash flow from non-budget activities}\\ \quad\text{Interest paid on Treasury securities held by the public}&\text{(262.7)}&\text{(243.5)}\\ \quad\text{Other direct loan transactions}&\text{(80.3)}&\text{(119.9)}\\ \quad\text{Repayment of principal on direct loans}&\text{(11.6)}&\text{17.4}\\ \quad\text{Other guaranteed loan transactions}&\text{(10.2)}&\text{9.8}\\ \quad\text{Miscellaneous liabilities}&\text{1.6}&\text{(0.3)}\\ \quad\text{Deposit fund liability balances}&\text{(0.7)}&\text{20.5}\\ \quad\text{Seignorage}&\underline{\text{\hspace{25pt}0.6}}&\underline{\hspace{25pt}\text{0.6}}\\ \quad\text{Subtotal-cash flow from non-budget activities}&\underline{\text{\hspace{8pt}(363.3)}}&\underline{\text{\hspace{8pt}(315.4)}}\\[5pt] \textbf{Cash flow from monetary transactions}\\ \quad\text{Loans to the IMF}&\text{0.9}&\text{3.0}\\ \quad\text{Other monetary assets}&\text{1.9}&\text{0.6}\\ \quad\text{Special drawing rights}&\underline{\text{\hspace{18pt}(0.3)}}&\underline{\hspace{18pt}\text{(2.9)}}\\ \quad\text{Subtotal-cash flow from monetary transactions}&\underline{\text{\hspace{25pt}2.5}}&\underline{\hspace{25pt}\text{0.7}}\\[5pt] \textbf{Cash flow from financing}\\ \quad\text{Borrowing from the public}&\text{8,390.4}&\text{7,037.5}\\ \quad\text{Repayment of debt held by the public}&\text{(7,343.3)}&\text{(6,700.6)}\\ \quad\text{Effect of uninvested principal from the Thrift Savings Plan (TSP) G Fund}&\text{(203.2)}&\text{203.2}\\ \quad\text{Agency securities}&\underline{\text{\hspace{25pt}0.1}}&\underline{\text{\hspace{25pt}0.1}}\\ \quad\text{Subtotal-cash flow from financing}&\underline{\text{\hspace{15pt}844.0}}&\underline{\hspace{15pt}\text{540.2}}\\[5pt] \textbf{Other}&\underline{\text{\hspace{25pt}0.5}}&\underline{\text{\hspace{25pt}3.4}}\\ \quad\text{Change in cash balance}&\text{159.5}&\text{40.2}\\ \quad\text{Beginning cash balance}&\underline{\text{\hspace{15pt}305.1}}&\underline{\text{\hspace{15pt}264.9}}\\ \quad\text{Ending cash balance}&\underline{\underline{\text{\hspace{15pt}464.6}}}&\underline{\underline{\text{\hspace{15pt}305.1}}}\\ \end{array}$$

The accompanying notes are an integral part of these financial statements.

$$\begin{array}{c} \textbf{Property, Plan, and Equipment}\\ \textbf{As of September 30, 2016}\\ \textbf{(in billions of dollars)}\\ \end{array}$$

$$\begin{array}{c} &&&&&&&&&&&&&&&&&&&&&\textbf{Accumulated Depreciation/}\\ &&&&&&&&&&&&&&&&&&&&\textbf{Cost}&\textbf{Amortization}&\textbf{Net}\\ \end{array}$$

$$\begin{array}{lrrrrrr} &\textbf{Defense}&\textbf{Others}&\textbf{Defense}&\textbf{Others}&\textbf{Defense}&\textbf{Others}\\[5pt] \text{Buildings, structures, and facilities}&\text{384.1}&\text{275.3}&\text{230.1}&\text{150.8}&\text{154.0}&\text{124.5}\\ \text{Furniture, fixtures, and equipment}&\text{1,054.5}&\text{172.7}&\text{639.7}&\text{113.3}&\text{414.8}&\text{59.4}\\ \text{Construction in progress}&\text{118.1}&\text{46.5}&\text{N/A}&\text{N/A}&\text{118.1}&\text{46.5}\\ \text{Land}&\text{10.7}&\text{13.0}&\text{N/A}&\text{N/A}&\text{10.7}&\text{13.0}\\ \text{Internal use software}&\text{9.5}&\text{33.1}&\text{6.0}&\text{20.7}&\text{3.5}&\text{12.4}\\ \text{Assets under capital lease}&\text{0.4}&\text{4.1}&\text{0.2}&\text{1.7}&\text{0.2}&\text{2.4}\\ \text{Leasehold improvements}&\text{0.6}&\text{10.4}&\text{0.3}&\text{6.3}&\text{0.3}&\text{4.1}\\ \text{Other property, plant, and equipment}&\underline{\text{\hspace{15pt}10.3}}&\underline{\text{\hspace{15pt}10.8}}&\underline{\text{\hspace{19pt}--}}&\underline{\text{\hspace{20pt}5.5}}&\underline{\text{\hspace{7pt}10.3}}&\underline{\text{\hspace{12pt}5.3}}\\ \quad\text{Subtotal}&\underline{\underline{\text{\hspace{2pt}1,588.2}}}&\underline{\underline{\text{\hspace{10pt}565.9}}}&\underline{\underline{\text{\hspace{2pt}876.3}}}&\underline{\underline{\text{\hspace{10pt}298.3}}}&\underline{\underline{\text{\hspace{2pt}711.9}}}&\underline{\underline{\text{\hspace{2pt}267.6}}}\\ \qquad\text{Total property, plant, and equipment, net}&&\underline{\underline{\text{\hspace{2pt}2,154.1}}}&&\underline{\underline{\text{\hspace{2pt}1,174.6}}}&&\underline{\underline{\text{\hspace{2pt}979.5}}}\\ \end{array}$$

Required

To provide an indication of the government’s financial position, answer the following:

1. What is the ratio of nondedicated collections funds to total revenue?
2. What is the quick ratio (use known current liabilities in the calculation)?
3. What is the capital asset condition as calculated by the ratio of accumulated depreciation to the cost of depreciable capital assets?

The complexity and uniqueness of the federal government makes it difficult to conduct a meaningful analysis of its financial condition. However, conducting a financial statement analysis does provide a better understanding of the federal government.

$$\begin{array}{c} \textbf{UNITED STATES GOVERNMENT}\\ \textbf{Statements of Changes in Cash Balance from Unified Budget and Other Activities}\\ \textbf{For the Years Ended September 30, 2016, and 2015}\\ \textbf{(in billions of dollars)}\\ \end{array}$$

$$\begin{array}{lrrr} \textbf{Cash flow from unified budget activities}\\ \quad\text{Total unified budgetary receipts}&\text{3,266.7}&\text{3,248.7}\\ \quad\text{Total unified budgetary outlays}&\underline{\text{(3,854.1)}}&\underline{\text{(3,687.6)}}\\ \quad\text{Unified budget deficit}&\underline{\text{\hspace{8pt}(587.4)}}&\underline{\text{\hspace{8pt}(438.9)}}\\[5pt] \textbf{Adjustments for non-cash outlays included in the unified budget}\\ \quad\text{Interest accrued on Treasury securities held by the public}&\text{264.1}&\text{254.4}\\ \quad\text{Agencies year-end credit reform subsidy re-estimates}&\text{(12.7)}&\text{26.8}\\ \quad\text{Subsidy expense accrued under direct loan \& guarantee programs}&\underline{\text{\hspace{20pt}11.8}}&\underline{\text{\hspace{13pt}(22.0)}}\\ \quad\text{Subtotal-Adjustments for non-cash transactions in unified budget}&\underline{\text{\hspace{15pt}263.2}}&\underline{\text{\hspace{15pt}250.2}}\\[5pt] \textbf{Cash flow from activities not included in unified budget}\\ \textbf{Cash flow from non-budget activities}\\ \quad\text{Interest paid on Treasury securities held by the public}&\text{(262.7)}&\text{(243.5)}\\ \quad\text{Other direct loan transactions}&\text{(80.3)}&\text{(119.9)}\\ \quad\text{Repayment of principal on direct loans}&\text{(11.6)}&\text{17.4}\\ \quad\text{Other guaranteed loan transactions}&\text{(10.2)}&\text{9.8}\\ \quad\text{Miscellaneous liabilities}&\text{1.6}&\text{(0.3)}\\ \quad\text{Deposit fund liability balances}&\text{(0.7)}&\text{20.5}\\ \quad\text{Seignorage}&\underline{\text{\hspace{25pt}0.6}}&\underline{\hspace{25pt}\text{0.6}}\\ \quad\text{Subtotal-cash flow from non-budget activities}&\underline{\text{\hspace{8pt}(363.3)}}&\underline{\text{\hspace{8pt}(315.4)}}\\[5pt] \textbf{Cash flow from monetary transactions}\\ \quad\text{Loans to the IMF}&\text{0.9}&\text{3.0}\\ \quad\text{Other monetary assets}&\text{1.9}&\text{0.6}\\ \quad\text{Special drawing rights}&\underline{\text{\hspace{18pt}(0.3)}}&\underline{\hspace{18pt}\text{(2.9)}}\\ \quad\text{Subtotal-cash flow from monetary transactions}&\underline{\text{\hspace{25pt}2.5}}&\underline{\hspace{25pt}\text{0.7}}\\[5pt] \textbf{Cash flow from financing}\\ \quad\text{Borrowing from the public}&\text{8,390.4}&\text{7,037.5}\\ \quad\text{Repayment of debt held by the public}&\text{(7,343.3)}&\text{(6,700.6)}\\ \quad\text{Effect of uninvested principal from the Thrift Savings Plan (TSP) G Fund}&\text{(203.2)}&\text{203.2}\\ \quad\text{Agency securities}&\underline{\text{\hspace{25pt}0.1}}&\underline{\text{\hspace{25pt}0.1}}\\ \quad\text{Subtotal-cash flow from financing}&\underline{\text{\hspace{15pt}844.0}}&\underline{\hspace{15pt}\text{540.2}}\\[5pt] \textbf{Other}&\underline{\text{\hspace{25pt}0.5}}&\underline{\text{\hspace{25pt}3.4}}\\ \quad\text{Change in cash balance}&\text{159.5}&\text{40.2}\\ \quad\text{Beginning cash balance}&\underline{\text{\hspace{15pt}305.1}}&\underline{\text{\hspace{15pt}264.9}}\\ \quad\text{Ending cash balance}&\underline{\underline{\text{\hspace{15pt}464.6}}}&\underline{\underline{\text{\hspace{15pt}305.1}}}\\ \end{array}$$

The accompanying notes are an integral part of these financial statements.

$$\begin{array}{c} \textbf{Property, Plan, and Equipment}\\ \textbf{As of September 30, 2016}\\ \textbf{(in billions of dollars)}\\ \end{array}$$

$$\begin{array}{c} &&&&&&&&&&&&&&&&&&&&&\textbf{Accumulated Depreciation/}\\ &&&&&&&&&&&&&&&&&&&&\textbf{Cost}&\textbf{Amortization}&\textbf{Net}\\ \end{array}$$

$$\begin{array}{lrrrrrr} &\textbf{Defense}&\textbf{Others}&\textbf{Defense}&\textbf{Others}&\textbf{Defense}&\textbf{Others}\\[5pt] \text{Buildings, structures, and facilities}&\text{384.1}&\text{275.3}&\text{230.1}&\text{150.8}&\text{154.0}&\text{124.5}\\ \text{Furniture, fixtures, and equipment}&\text{1,054.5}&\text{172.7}&\text{639.7}&\text{113.3}&\text{414.8}&\text{59.4}\\ \text{Construction in progress}&\text{118.1}&\text{46.5}&\text{N/A}&\text{N/A}&\text{118.1}&\text{46.5}\\ \text{Land}&\text{10.7}&\text{13.0}&\text{N/A}&\text{N/A}&\text{10.7}&\text{13.0}\\ \text{Internal use software}&\text{9.5}&\text{33.1}&\text{6.0}&\text{20.7}&\text{3.5}&\text{12.4}\\ \text{Assets under capital lease}&\text{0.4}&\text{4.1}&\text{0.2}&\text{1.7}&\text{0.2}&\text{2.4}\\ \text{Leasehold improvements}&\text{0.6}&\text{10.4}&\text{0.3}&\text{6.3}&\text{0.3}&\text{4.1}\\ \text{Other property, plant, and equipment}&\underline{\text{\hspace{15pt}10.3}}&\underline{\text{\hspace{15pt}10.8}}&\underline{\text{\hspace{19pt}--}}&\underline{\text{\hspace{20pt}5.5}}&\underline{\text{\hspace{7pt}10.3}}&\underline{\text{\hspace{12pt}5.3}}\\ \quad\text{Subtotal}&\underline{\underline{\text{\hspace{2pt}1,588.2}}}&\underline{\underline{\text{\hspace{10pt}565.9}}}&\underline{\underline{\text{\hspace{2pt}876.3}}}&\underline{\underline{\text{\hspace{10pt}298.3}}}&\underline{\underline{\text{\hspace{2pt}711.9}}}&\underline{\underline{\text{\hspace{2pt}267.6}}}\\ \qquad\text{Total property, plant, and equipment, net}&&\underline{\underline{\text{\hspace{2pt}2,154.1}}}&&\underline{\underline{\text{\hspace{2pt}1,174.6}}}&&\underline{\underline{\text{\hspace{2pt}979.5}}}\\ \end{array}$$

Required

To provide an indication of the government’s financial performance, answer the following:

What is interperiod equity, as calculated by the ratio of revenue to net costs?

The complexity and uniqueness of the federal government makes it difficult to conduct a meaningful analysis of its financial condition. However, conducting a financial statement analysis does provide a better understanding of the federal government.

$$\begin{array}{c} \textbf{UNITED STATES GOVERNMENT}\\ \textbf{Statements of Changes in Cash Balance from Unified Budget and Other Activities}\\ \textbf{For the Years Ended September 30, 2016, and 2015}\\ \textbf{(in billions of dollars)}\\ \end{array}$$

$$\begin{array}{lrrr} \textbf{Cash flow from unified budget activities}\\ \quad\text{Total unified budgetary receipts}&\text{3,266.7}&\text{3,248.7}\\ \quad\text{Total unified budgetary outlays}&\underline{\text{(3,854.1)}}&\underline{\text{(3,687.6)}}\\ \quad\text{Unified budget deficit}&\underline{\text{\hspace{8pt}(587.4)}}&\underline{\text{\hspace{8pt}(438.9)}}\\[5pt] \textbf{Adjustments for non-cash outlays included in the unified budget}\\ \quad\text{Interest accrued on Treasury securities held by the public}&\text{264.1}&\text{254.4}\\ \quad\text{Agencies year-end credit reform subsidy re-estimates}&\text{(12.7)}&\text{26.8}\\ \quad\text{Subsidy expense accrued under direct loan \& guarantee programs}&\underline{\text{\hspace{20pt}11.8}}&\underline{\text{\hspace{13pt}(22.0)}}\\ \quad\text{Subtotal-Adjustments for non-cash transactions in unified budget}&\underline{\text{\hspace{15pt}263.2}}&\underline{\text{\hspace{15pt}250.2}}\\[5pt] \textbf{Cash flow from activities not included in unified budget}\\ \textbf{Cash flow from non-budget activities}\\ \quad\text{Interest paid on Treasury securities held by the public}&\text{(262.7)}&\text{(243.5)}\\ \quad\text{Other direct loan transactions}&\text{(80.3)}&\text{(119.9)}\\ \quad\text{Repayment of principal on direct loans}&\text{(11.6)}&\text{17.4}\\ \quad\text{Other guaranteed loan transactions}&\text{(10.2)}&\text{9.8}\\ \quad\text{Miscellaneous liabilities}&\text{1.6}&\text{(0.3)}\\ \quad\text{Deposit fund liability balances}&\text{(0.7)}&\text{20.5}\\ \quad\text{Seignorage}&\underline{\text{\hspace{25pt}0.6}}&\underline{\hspace{25pt}\text{0.6}}\\ \quad\text{Subtotal-cash flow from non-budget activities}&\underline{\text{\hspace{8pt}(363.3)}}&\underline{\text{\hspace{8pt}(315.4)}}\\[5pt] \textbf{Cash flow from monetary transactions}\\ \quad\text{Loans to the IMF}&\text{0.9}&\text{3.0}\\ \quad\text{Other monetary assets}&\text{1.9}&\text{0.6}\\ \quad\text{Special drawing rights}&\underline{\text{\hspace{18pt}(0.3)}}&\underline{\hspace{18pt}\text{(2.9)}}\\ \quad\text{Subtotal-cash flow from monetary transactions}&\underline{\text{\hspace{25pt}2.5}}&\underline{\hspace{25pt}\text{0.7}}\\[5pt] \textbf{Cash flow from financing}\\ \quad\text{Borrowing from the public}&\text{8,390.4}&\text{7,037.5}\\ \quad\text{Repayment of debt held by the public}&\text{(7,343.3)}&\text{(6,700.6)}\\ \quad\text{Effect of uninvested principal from the Thrift Savings Plan (TSP) G Fund}&\text{(203.2)}&\text{203.2}\\ \quad\text{Agency securities}&\underline{\text{\hspace{25pt}0.1}}&\underline{\text{\hspace{25pt}0.1}}\\ \quad\text{Subtotal-cash flow from financing}&\underline{\text{\hspace{15pt}844.0}}&\underline{\hspace{15pt}\text{540.2}}\\[5pt] \textbf{Other}&\underline{\text{\hspace{25pt}0.5}}&\underline{\text{\hspace{25pt}3.4}}\\ \quad\text{Change in cash balance}&\text{159.5}&\text{40.2}\\ \quad\text{Beginning cash balance}&\underline{\text{\hspace{15pt}305.1}}&\underline{\text{\hspace{15pt}264.9}}\\ \quad\text{Ending cash balance}&\underline{\underline{\text{\hspace{15pt}464.6}}}&\underline{\underline{\text{\hspace{15pt}305.1}}}\\ \end{array}$$

The accompanying notes are an integral part of these financial statements.

$$\begin{array}{c} \textbf{Property, Plan, and Equipment}\\ \textbf{As of September 30, 2016}\\ \textbf{(in billions of dollars)}\\ \end{array}$$

$$\begin{array}{c} &&&&&&&&&&&&&&&&&&&&&\textbf{Accumulated Depreciation/}\\ &&&&&&&&&&&&&&&&&&&&\textbf{Cost}&\textbf{Amortization}&\textbf{Net}\\ \end{array}$$

$$\begin{array}{lrrrrrr} &\textbf{Defense}&\textbf{Others}&\textbf{Defense}&\textbf{Others}&\textbf{Defense}&\textbf{Others}\\[5pt] \text{Buildings, structures, and facilities}&\text{384.1}&\text{275.3}&\text{230.1}&\text{150.8}&\text{154.0}&\text{124.5}\\ \text{Furniture, fixtures, and equipment}&\text{1,054.5}&\text{172.7}&\text{639.7}&\text{113.3}&\text{414.8}&\text{59.4}\\ \text{Construction in progress}&\text{118.1}&\text{46.5}&\text{N/A}&\text{N/A}&\text{118.1}&\text{46.5}\\ \text{Land}&\text{10.7}&\text{13.0}&\text{N/A}&\text{N/A}&\text{10.7}&\text{13.0}\\ \text{Internal use software}&\text{9.5}&\text{33.1}&\text{6.0}&\text{20.7}&\text{3.5}&\text{12.4}\\ \text{Assets under capital lease}&\text{0.4}&\text{4.1}&\text{0.2}&\text{1.7}&\text{0.2}&\text{2.4}\\ \text{Leasehold improvements}&\text{0.6}&\text{10.4}&\text{0.3}&\text{6.3}&\text{0.3}&\text{4.1}\\ \text{Other property, plant, and equipment}&\underline{\text{\hspace{15pt}10.3}}&\underline{\text{\hspace{15pt}10.8}}&\underline{\text{\hspace{19pt}--}}&\underline{\text{\hspace{20pt}5.5}}&\underline{\text{\hspace{7pt}10.3}}&\underline{\text{\hspace{12pt}5.3}}\\ \quad\text{Subtotal}&\underline{\underline{\text{\hspace{2pt}1,588.2}}}&\underline{\underline{\text{\hspace{10pt}565.9}}}&\underline{\underline{\text{\hspace{2pt}876.3}}}&\underline{\underline{\text{\hspace{10pt}298.3}}}&\underline{\underline{\text{\hspace{2pt}711.9}}}&\underline{\underline{\text{\hspace{2pt}267.6}}}\\ \qquad\text{Total property, plant, and equipment, net}&&\underline{\underline{\text{\hspace{2pt}2,154.1}}}&&\underline{\underline{\text{\hspace{2pt}1,174.6}}}&&\underline{\underline{\text{\hspace{2pt}979.5}}}\\ \end{array}$$

Required

To provide an indication of the government’s financial capability, answer the following:

1. What percentage of total revenues comes from individual income taxes and withholdings?
2. What is the debt service as calculated by the ratio of principal and interest payments on debt held by the public to total revenue?

Compare the GAAP hierarchy for the federal government to that for state and local governments.

Congress authorized the Flood Control Commission to start operations on October 1, 2020.

Required

Prepare the Statement of Budgetary Resources of the Flood Control Commission for the month ended October 31, 2020.

Congress authorized the Flood Control Commission to start operations on October 1, 2020.

Required

Prepare the Statement of Changes in Net Position of the Flood Control Commission for the month ended October 31, 2020.