United States DEPARTMENT of Commerce

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
The NTIA Digital Television Transition and Public Safety Fund makes digital television available to every home in America,
improves communications between local, State, and federal agencies, assists in moving satellites that were once on the World
Trade Centers, allows smaller television stations to broadcast digital television, and improves how warnings are received when
disasters occur. NTIA receives funding from borrowings from the Bureau of Public Debt, and will repay the Bureau of Public Debt
through the sale of Analog Spectrum which will be auctioned. The additional funds from the auction will be used to reduce the
National Deficit. The law establishing this program can be found in Deficit Reduction Act of 2005, P.L. 109-171 Section 3001-
3014.
The Coastal Zone Management Fund is primarily used for interstate projects, demonstration projects for improving coastal zone
management, and emergency grants to State coastal zone management agencies to address unforeseen or disaster-related
circumstances. The law establishing the Coastal Zone Management Fund can be found in 16 USC Section 1456a.
The NTIS Revolving Fund is used to collect, process, market, and disseminate government-sponsored and foreign scientific,
technical, and business information; and, to assist other agencies with their information programs. Activities funded by the NTIS
Revolving Fund allow customers, both public and private, access to scientific and technical information produced by and for the
federal government. All receipts from the sale of products and services are deposited in this fund, and all expenses, including
capital expenditures, are paid from it.
The Damage Assessment and Restoration Revolving Fund is established by the reimbursement of expenses related to oil or hazardous
substance spill response activities, or natural resource damages assessment, restoration, rehabilitation, replacement, or acquisition
activities conducted by NOAA. The recovered sums by a federal, state, indian, or foreign trustee for natural resource damages
is retained by the trustee and is only used to reimburse or pay costs incurred by the trustee for the damaged natural resources.
The law establishing the Damage Assessment and Restoration Revolving Fund can be found in 33 USC Section 2706. Natural
Resources.
Note 21. Reconciliation of Net Cost of Operations to Budget
The Reconciliation of Net Cost of Operations to Budget reconciles the Department’s Resources Used to Finance Activities (first
section), which consists of the budgetary basis of accounting Net Obligations plus the proprietary basis of accounting Other
Resources, to the proprietary basis of accounting Net Cost of Operations. The second section, Resources Used to Finance Items Not
Part of Net Cost of Operations, reverses out items included in the first section that are not included in Net Cost of Operations. The
third section, Components of Net Cost of Operations that Will Not Require or Generate Resources in the Current Period, adds items
included in Net Cost of Operations that are not included in the first section.
The third section’s subsection, Components Requiring or Generating Resources in Future Periods, includes costs reported in the
current period that are included in the Liabilities Not Covered by Budgetary Resources reported in Note 15. This subsection does
not include costs reported in prior fiscal years that are also included in Liabilities Not Covered by Budgetary Resources.
In accordance with Revised OMB Circular No. A-136, Financial Reporting Requirements, dated June 29, 2007, the Statement
of Financing is presented as a footnote disclosure and is no longer a basic financial statement, as had been presented in prior
years. The information provided in the FY 2006 Statement of Financing is also presented in this footnote, to provide comparative
disclosures, as required. The reconciliation of net cost of operations to budget for FY 2007 and FY 2006 is as follows:
F Y 2 0 0 7 P E R F O R M A N C E A N D A C C O U N T A B I L I T Y R E P O R T
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