department of defense agency financial report fiscal year 2012

Department of Defense Agency Financial Report for FY 2012
The Department invests primarily in non-marketable, market-based securities. The value of
these securities fluctuates in tandem with the selling price of the equivalent marketable
security. The securities are purchased with the intent to hold until maturity, thus balances
are not adjusted to market value.
The U.S. Treasury securities are issued to the earmarked funds as evidence of its receipts
and are an asset to the Department and a liability to the U.S. Treasury. The Federal
Government does not set aside assets to pay future benefits or other expenditures
associated with earmarked funds. The cash generated from earmarked funds is deposited in
the U.S. Treasury and used for general government purposes. Since the Department and
the U.S. Treasury are both part of the Federal Government, these assets and liabilities
offset each other from the standpoint of the Federal Government as a whole. For this
reason, they do not represent an asset or a liability in the U.S. Government wide financial
statements.
The U.S. Treasury securities provide the Department with authority to draw upon the
U.S. Treasury to make future benefit payments or other expenditures. When the
Department requires redemption of these securities to make expenditures, the Government
will finance them from accumulated cash balances, by raising taxes or other receipts,
borrowing from the public or repaying less debt, or curtailing other expenditures. The
Federal Government uses the same method to finance all other expenditures.
Other Funds primarily consists of $2.0 billion in investments of the DoD Education Benefits
Trust Fund, $817.9 million in investments of the Host Nation Support for U.S. Relocation
Activities Trust Fund, and $316.7 million in investments of the Voluntary Separation
Incentive Trust Fund.
Other Investments consist of Military Housing Privatization Initiative limited partnerships.
The limited partnerships support military housing at Army, Air Force, Navy and Marine
Corps installations. This investment relates to limited partnerships that do not require
Market Value Disclosure.
NOTE 5. ACCOUNTS RECEIVABLE
Accounts Receivable
2012
Dollars in Millions
As of September 30
Gross Amount Due
Allowance for
Estimated
Uncollectibles
Accounts
Receivable, Net
Intragovernmental Receivables $ 1,439.6 N/A $ 1,439.6
Non-Federal Receivables
(From the Public)
12,420.5 (898.1) 11,522.4
Total Accounts Receivable $ 13,860.1 $ (898.1) $ 12,962.0
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Financial Information