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:
Reconciliation of Net Cost of Operations to Budget
For the Years Ended September 30, 2007 and 2006 (In Thousands)
| |
FY 2007 |
FY 2006 |
| Resources Used to Finance Activities: |
|
|
| Budgetary Resources Obligated |
|
|
| Obligations Incurred |
$11,283,888 |
$10,288,561 |
Less: Spending Authority From Offsetting
Collections and Recoveries
 |
(3,400,863)
|
(3,379,692)
|
| Obligations Net of Offsetting Collections and Recoveries |
7,883,025 |
6,908,869 |
Less: Distributed Offsetting (Receipts)/Outlays, Net
|
(72,871)
|
(139,872)
|
| Net Obligations |
7,810,154 |
6,768,997 |
Other Resources |
|
|
| Donations and Forfeitures of Property |
16,535 |
- |
| Transfers In/(Out) Without Reimbursement, Net |
220 |
1,689 |
| Imputed Financing From Costs Absorbed by Others |
196,903 |
189,178 |
| Downward Subsidy Reestimates Payable to Treasury |
(36,710) |
(31,447) |
| Loan Modification Savings Paid to Treasury |
(18,910) |
- |
Other Financing Sources/(Uses), Net
|
(278)
|
(17,527)
|
Net Other Resources Used to Finance Activities
|
157,760
|
141,893
|
Total Resources Used to Finance Activities
|
7,967,914
|
6,910,890
|
Resources Used to Finance Items Not Part of Net Cost of Operations: |
|
|
| Change in Budgetary Resources Obligated for
Goods, Services, and Benefits Ordered but Not Yet Provided |
(1,174,919) |
(344,059) |
| Resources that Fund Expenses Recognized in Prior Periods |
(45,317) |
(29,055) |
| Budgetary Obligation for Downward Subsidy Reestimates Payable to Treasury |
(29,056) |
(87,264) |
| Budgetary Obligation for Loan Modification Savings Payable to Treasury |
(18,910) |
- |
| Budgetary Offsetting Collections and Receipts
that Do Not Affect Net Cost of Operations: |
|
|
Distributed Offsetting
(Receipts)/Outlays, Net (excludes Clearing Accounts’ Gross Costs) |
72,871 |
139,872 |
Credit Program
Collections which Increase Loan Guarantee Liabilities or Allowance for Subsidy Cost |
44,231 |
49,353 |
Budgetary Financing Sources/(Uses), Net |
11,069 |
11,615 |
| Resources that Finance the Acquisition of Assets |
(1,008,933) |
(991,262) |
| Other Resources or Adjustments to Net Obligated
Resources that Do Not Affect Net Cost of Operations: |
|
|
Change in
Unfilled Customer Orders |
38,020 |
173,898 |
Donations and Forfeitures of Property |
(16,535) |
- |
Transfers
In/(Out) Without Reimbursement, Net |
(220) |
(1,689) |
Downward
Subsidy Reestimates Payable to Treasury |
36,710 |
31,447 |
Loan Modification
Savings Paid to Treasury |
18,910 |
- |
Other
Financing Sources/(Uses), Net |
278 |
17,527 |
Other
|
(66)
|
-
|
Total Resources Used to Finance Items
Not Part of Net Cost of Operations
|
(2,071,867)
|
(1,029,617)
|
| Total Resources Used to
Finance Net Cost of Operations |
5,896,047 |
5,881,273 |
Components of Net Cost of Operations that Will Not Require or Generate Resources in the
Current Period: |
|
|
| Components Requiring or Generating
Resources in Future Periods |
|
|
| Increase in Accrued Annual Leave Liability |
12,803 |
6,841 |
| Increases in NOAA Corps Retirement System
Liability and NOAA Corps Post-retirement Health Benefits Liability |
41,600 |
24,100 |
| Increase (Decrease) in Contingent Liabilities |
(4,346) |
9,680 |
| Reestimates of Credit Subsidy Expense |
14,170 |
(7,308) |
Other
|
5,627
|
6,179
|
Total Components of Net Cost of
Operations that Will Require or Generate Resources in Future Periods
|
69,854
|
39,492
|
| Components Not Requiring
or Generating Resources |
|
|
| Depreciation and Amortization |
468,925 |
439,774 |
| NOAA Issuances of Materials and Supplies |
22,658 |
15,063 |
| Revaluation of Assets or Liabilities |
(922) |
49,995 |
| Loan Modification Savings |
(18,910) |
- |
Other
|
(2,745)
|
(8,709)
|
Total Components of Net Cost of Operations
that Will Not Require or Generate Resources
|
469,006
|
496,123
|
Total Components of Net Cost of Operations that
Will Not Require or Generate Resources in the Current Period
|
538,860
|
535,615
|
NET COST OF OPERATIONS
 |
$6,434,907
|
$6,416,888
|
The accompanying notes are an integral part of these statements.
|
