department of defense agency financial report fiscal year 2012

Department of Defense Agency Financial Report for FY 2012
Reconciliation of Net Cost of Operations to Budget Dollars in Millions
As of September 30
2012
Restated
2011
Increase in annual leave liability $ 253.6 $ 363.7
Increase in environmental and disposal liability 657.2 3,667.8
Upward/Downward reestimates of credit subsidy expense (+/-) (12.0) 8.3
Increase in exchange revenue receivable from the public (-) 84.6 (552.3)
Other (+/-) 124,388.8 112,105.1
Total components of Net Cost of Operations that will Require or
Generate Resources in future periods
Components not Requiring or Generating Resources:
$ 125,372.2 $ 115,592.6
Depreciation and amortization $ 47,978.8 $ 55,937.5
Revaluation of assets or liabilities (+/-) 2,693.3 (8,286.9)
Other (+/-)
Trust Fund Exchange Revenue (50,977.7) (55,336.7)
Cost of Goods Sold 78,140.6 72,938.9
Operating Materiel and Supplies Used 27,873.0 33,442.2
Other (50,952.0) (63,524.9)
Total Components of Net Cost of Operations that will not Require or
Generate Resources
$ 54,756.0 $ 35,170.1
Total components of Net Cost of Operations that will not Require or
Generate Resources in the current period
$ 180,128.2 $ 150,762.7
Net Cost of Operations $ 768,853.6 $ 684,225.5
Abnormal Balance
Budgetary Resources Obligated, Other and Other Resources or Adjustments to Net
Obligated Resources that do not Affect Net Cost of Operations, Other 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 $955.1 million understatement of undelivered orders and
Resources that finance the acquisition of assets, and a $72.2 million understatement of
Depreciation and amortization to align the accounting records to the property accountability
system. These corrections resulted in a $72.2 million increase in Net Cost of Operations.
Refer to Note 26, Restatements, for further information.
Other Disclosures
Due to the Department’s financial system limitations, budgetary data does not agree with
proprietary expenses and capitalized assets. The difference between budgetary and
proprietary data is a previously identified deficiency. The following adjustments (absolute
value) were made to balance the Reconciliation of Net Cost of Operations to the Statement
of Net Cost:
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Financial Information