department of defense agency financial report fiscal year 2012

Department of Defense Agency Financial Report for FY 2012
previously recorded for the Cerrillos Dam long term water storage contract at the
Jacksonville District were reversed as the cost share agreement did not allow for penalties.
Other Financing Sources, Other – Earmarked Funds on the Statement of Changes in Net
Position include an abnormal balance of $21.8 million in USSGL account 5791 (Adjustment
to Financing Sources - Downward Reestimate or Negative Subsidy). This account is offset by
a corresponding entry in the non-earmarked direct loan program account.
Restatements
The Department corrected a $1.0 billion understatement of General Property, Plant and
Equipment to align the accounting records with the property accountability system and a
$955.1 million overstatement of Other Assets (With the Public). Refer to Note 26,
Restatements, for further information.
Other Disclosures
Other Financing Sources, Other consists primarily of nonexchange gains and losses
necessary to reconcile the proprietary and budgetary amounts, as well as gains and losses
on disposition of assets. Due to financial system limitations, the Department adjusts for
these unreconciled differences.
Earmarked Cumulative Results of Operations ending balance on the Statement of Changes
in Net Position (SCNP) does not agree with the Earmarked Cumulative Results reported on
the Balance Sheet because the cumulative results on the Balance Sheet are presented net
of eliminations. In the SCNP, all offsetting balances (e.g., transfers-in and transfers-out,
revenues and expenses) for intraentity activity between Earmarked Funds and All Other
Funds are reported on the same lines. The Eliminations column contains all appropriate
elimination entries, which net to zero within each respective line, except for intraentity
imputed financing costs.
Appropriations Received on the SCNP does not agree with Appropriations on the Statement
of Budgetary Resources (SBR) by $55.4 billion. This difference represents $125.3 billion in
trust and special fund receipts reported as exchange revenue on the Statement of Net Cost
and included in appropriations on the SBR, offset by $60.5 billion in receipts and
appropriations temporarily precluded from obligation, $8.5 billion in permanent reductions,
and $0.9 billion in receipts and appropriations temporarily precluded from obligations and
current year authority transfers. In order to preserve visibility with the President’s Budget,
these appropriations are effectively reported twice on the SBR. They are reported once by
the Military Departments and Defense Agencies as appropriated and once by the individual
trust funds as receipts. Refer to Note 20, Disclosures Related to the SBR, for further
information.
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Financial Information