Note 19. Consolidated Statements of Financing

The Consolidated Statement of Financing 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 of 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 that are included in the Liabilities Not Covered by Budgetary Resources reported in Note 15. This subsection does not include costs incurred in prior fiscal years that are also included in Liabilities Not Covered by Budgetary Resources.