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180308 aganm 2 us government financial report

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2018 abq aga

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180308 aganm 2 us government financial report

  1. 1. The FY 2017 Financial Report of theThe FY 2017 Financial Report of the U.S. GovernmentU.S. Government Part IIPart II AGA - New Mexico April 5, 2018 R. Scott Bell Senior Staff Accountant Department of the Treasury
  2. 2. 2 "We might hope to see the finances of the Union as clear and intelligible as a merchant's books, so that every member of Congress and every man of any mind in the Union should be able to comprehend them, to investigate abuses, and consequently to control them." President Thomas Jefferson to Treasury Secretary Albert Gallatin, 1802
  3. 3. 3 Agency Financial Reports Performance & Accountability Reports 39 Significant Reporting Entities 115 Other Reporting Entities Audited By Inspectors General & Contract Auditors Fiscal Projections Analysis & Summary Audits Report & Financial Statements
  4. 4. 4 Recap - “Traditional” Reporting
  5. 5. FRUSG: Then & Now Financial Report of the U.S. Government Selected Data 1997 2017 Budget Deficit $15 b $665.7b Tax and Other Revenue $1.6 t $3.4 t Net Operating Cost $21 b $1.2 t Total Assets $1.6 t $3.5 t Public Debt + Accd Int $3.8 t $14.7 t Total Liabilities $6.6 t $23.9 t Social Insurance Net Expenditures $1.8 t* $49.0 t 5 Unmodified Audit Opinion? No No *Required Supplementary Stewardship Information
  6. 6. 6 “Non-Traditional” Reporting Social Insurance $ % Open Group (Net): Social Security (OASDI) (15.4)$ (14.1)$ 1.3$ 9.2% Medicare (Parts A, B, & D) (33.5)$ (32.5)$ 1.0$ 3.1% Other (0.1)$ (0.1)$ $ 0.0 0.0% Total Social Insurance Expenditures, Net (Open Group) (49.0)$ (46.7)$ 2.3$ 4.9% Total Social Insurance Expenditures, Net (Open Group) - Percent of GDP (4.0% ) (3.8% ) Source: Statement of Social Insurance Social Insurance Future Expenditures in Excess of Future Revenues Dollars in Trillions 2017 2016 Increase / (Decrease)
  7. 7. 7 “Non-Traditional” Reporting Trust Fund Status Fund Projected Depletion ProjectedPost-Depletion Trend Medicare Hospital Insurance (HI)* 2029 (2028 in FY2016 Report) In 2029, trust fund income is projected to cover 88 percent of benefits, decreasing to 81 percent in 2041, then increasing to 88 percent by 2091. Combined Old-Age Survivors and Disability Insurance (OASDI)** 2034 (unchanged from FY2016 Report) In 2034, trust fund income is projected to cover 77 percent of scheduled benefits, decreasing to about 73 percent by 2091. * Source: 2017 Medicare Trustees Report ** Source: 2017 OASDI Trustees Report Table 1: Trust Fund Status Projections assume full Social Security and Medicare benefits are paid after fund depletion contrary to current law.
  8. 8. Projected revenues and spending are impacted in the long-run by: A) The retirement of the baby boom generation B) Rising health care costs C) Longevity and birth rates D) A, B, and C E) None of the above 8
  9. 9. 9 “Non-Traditional” Reporting Long-Term Fiscal Projections 2017 2016 2017 2016 Receipts: Social Security Payroll Taxes 58.0$ 56.3$ 4.3% 4.3% Medicare Payroll Taxes 19.4$ 18.8$ 1.4% 1.4% Individual Income Taxes 141.9$ 139.0$ 10.5% 10.7% Other Receipts 49.0$ 47.5$ 3.6% 3.6% Total Receipts 268.4$ 261.6$ 19.9% 20.1% Non-Interest Spending: Social Security 78.7$ 75.6$ 5.8% 5.8% Medicare Part A, B, & D 26.6$ 26.5$ 2.0% 2.0% Medicaid 32.3$ 31.3$ 2.4% 2.4% Other Mandatory 32.1$ 31.7$ 2.4% 2.4% Defense Discretionary 40.5$ 41.6$ 3.0% 3.2% Non-Defense Discretionary 39.1$ 32.0$ 2.9% 2.5% Total Non-Interest Spending: 284.6$ 272.2$ 21.1% 20.9% Receipts less Non-Interest Spending (16.2)$ (10.6)$ (1.2%) (0.8%) Fiscal Gap (2.0%) (1.6%) Source: Statement of Long-Term Fiscal Projections Government Receipts and Non-Interest Spending % of GDPtrillions of dollars
  10. 10. 10 Sustainability Definition: Debt/GDP remains stable/declines over the long term. Key Assumptions: •Current Law & Policy •75-Year Projections = Uncertainty •Projections, NOT Predictions. *UNCERTAINTY Fiscal Sustainability
  11. 11. The federal government’s fiscal path could be described as: A) Sustainable B) Unsustainable C) Impossible D) Unchangeable 11
  12. 12. 12 Historical and Projected Trends - Debt as Percent of GDP FY 2007
  13. 13. 13 “Non-Traditional” Reporting Fiscal Gap Period of Delay Change in Average Primary Surplus Reform in 2018 (No Delay) .......................................................................................2.0 percent of GDP between 2018 and 2092 Reform in 2028 (Ten-Year Delay) ..................................................................................2.4 percent of GDP between 2028 and 2092 Reform in 2038 (Twenty-Year Delay) ............................................................................3.0 percent of GDP between 2038 and 2092 Table 2 Costs of Delaying Fiscal Reform • Reduction of primary deficits over 75 years to to keep/make fiscal policy sustainable. – Keep Debt/GDP at current level (76%). – Some combination of revenue/spending changes. – Longer delay = bigger changes needed.
  14. 14. 14 2017 2016* Gross Costs (4,609.3)$ (4,515.7)$ Less: Earned Revenue 431.9$ 383.9$ Gain/(Loss) from Changes in Assumptions (356.5)$ (273.3)$ Net Cost (4,533.9)$ (4,405.1)$ Less: Total Tax and Other Revenues 3,374.6$ 3,345.3$ Unmatched Transactions and Balances 2.6$ 8.1$ Net Operating Cost (1,156.7)$ (1,051.7)$ Budget Deficit (665.7)$ (587.4)$ Assets: 3,480.7$ 3,534.8$ Less: Liabilities, comprised of: Debt Held By the Public & Accrued Interest (14,724.1)$ (14,221.1)$ Federal Employee & Veteran Benefits (7,700.1)$ (7,209.4)$ Other (1,472.7)$ (1,401.1)$ Total Liabilities (23,896.9)$ (22,831.6)$ Net Position (Assets Less Liabilities) (20,416.2)$ (19,296.8)$ Social Insurance Net Expenditures (49.0)$ (46.7)$ Total Federal Non-Interest Net Expenditures (16.2)$ (10.6)$ Social Insurance Net Expenditures (4.0%) (3.8%) Total Federal Non-Interest Net Expenditures (1.2%) (0.8%) Fiscal Gap 1 (2.0%) (1.6%) *Restated (See Financial Statement Note 1.V) 1 To prevent the debt-to-GDP ratio fromrising over the next 75 years, a combination of non- interest spending reductions and receipts increases that amounts to 2.0 percent of GDP on average is needed (1.6 percent of GDP on average in 2016). See Financial Statement Note 23. Sustainability Measures (Dollars in Trillions): NATION BY THE NUMBERS A Snapshot of The Government's Financial Position & Condition Financial Measures (Dollars in Billions): Sustainability Measures as Percent of Gross Domestic Product (GDP):
  15. 15. 15 “To state the facts frankly is not to despair the future nor indict the past. The prudent heir takes careful inventory of his legacies and gives a faithful accounting to those whom he owes an obligation of trust.” - John F. Kennedy
  16. 16. 16 Goal Track $3.8 trillion dollars in annual spending on a quarterly basis and link data from the budget, accounting, procurement and financial assistance databases into one common format Challenge Collect, store, and display more than 400 data elements from over 100 federal agencies Better Data. Better Decisions. Better Government DATA Act Overview Loans and Other Financial Assistance Other Agency Expenditures Grants Procurements and Contracts $3.8 Trillion in Federal Spending
  17. 17. 17 CHALLENGESCHALLENGES DATA Act Challenges & Benefits One-Size Fits All Approach Requirements and solutions must work for 100+ federal agencies Large, Intricate Data Sets Lack of data standards, multiple stakeholders managing different data sets, multiple vendor solutions Federal agencies, journalist, oversight bodies, industry, state/local governments, and the public Diverse Data Users Strict Mandated Timelines Short, legislatively-mandated timelines outlined in the law Data–Centric Decision Making Promote data–driven decision making due to access of reliable agency data Improved Data Quality Increase access to searchable and reliable Federal spending data Promote research and innovation both inside and outside of government Research and Innovation Better Oversight Encourage better tracking of how the Federal government spends funds
  18. 18. 18 usaspending.gov Homepage
  19. 19. 19 usaspending.gov Homepage (Continued)
  20. 20. 20 Spending Explorer (By Agency)
  21. 21. 21 Federal Account Profile: Child Nutrition Programs (Fiscal Year Snapshot)
  22. 22. 22 Federal Account Profile: Child Nutrition Programs (Spending Over Time & By Category)
  23. 23. 23 Federal Account Profile: Child Nutrition Programs (Spending by Award)
  24. 24. 24 Contract Profile: Department of Agriculture, Food and Nutrition Service
  25. 25. 25 Contract Profile: Department of Agriculture, Food and Nutrition Service
  26. 26. 26 usaspending.gov Data Download Options
  27. 27. 27 http://www.fiscal.treasury.gov/fsreports/rpt/finrep/fr/fr_index.htm Find Out More! http://www.whitehouse.gov/omb/financial/index.html www.gao.gov scott.bell@treasury.gov

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