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Financial Highlights | Financial Position

The Department's financial statements are prepared in accordance with established federal accounting standards and are audited by the independent accounting firm of Ernst & Young, LLP. Click here for FY 2005 financial statements and footnotes.

Balance Sheet

The Balance Sheet presents, as of a specific point in time, the economic value of assets and liabilities retained or managed by the Department. The difference between assets and liabilities represents the net position of the Department.

Total Asset vs. Total LiabilitiesThis is a bar graph that displays the Department's Total Assets and Total Liabilities in billions of dollars for FY 2002, 2003, 2004, and 2005.  
For FY 2002: Total Assets are $145.4; Total Liabilities are $110.1.
For FY 2003: Total Assets are  $157.3; Total Liabilities are $117.8.
For FY 2004: Total Assets are $172.6; Total Liabilities are $128.3
For FY 2005: Total Assets are $186.6; Total Liabilities are $143.7.

The Balance Sheet [PDF, 180K] reflects total assets of $186.6 billion, an 8 percent increase over FY 2004. This increase is attributable to increased funding related to the continuing implementation of No Child Left Behind and the anticipated steady growth of student financial assistance programs.

Intragovernmental liabilities constitute 77 percent of the Department's total liabilities. Our intragovernmental liabilities consist mainly of Treasury debt, which is directly related to the Department's focus on ensuring that funds are available for any student desiring a postsecondary education.

Liabilities for Loan Guarantees increased by 31 percent, which is related to assumption changes for loan maturity term and consolidation loan volume.

Several factors influenced the change in the Department's Net Position in FY 2005. These include the timing of the execution of prior year subsidy re-estimates for federal student loan programs and the overall management of the Department's capital structure. Net Position decreased by 3 percent from FY 2004.

Statement of Net Cost

Net Cost By Fiscal YearThis is a bar graph that displays the Department's Net Cost by Fiscal Year in billions of dollars.
Net costs for FY 2002 are $49.8.
Net costs for FY 2003 are $58.8.
Net costs for FY 2004 are $63.6.
Net costs for FY 2005 are $75.2.

The Statement of Net Cost presents the components of the Department's net cost, which is the gross cost incurred less any revenues earned from the Department's activities. The Statement of Net Cost is presented to be consistent with the Department's strategic goals, as directed by the President's Management Agenda. The Department's total program net costs, as reflected on the Statement of Net Cost [PDF, 208K], are $75.2 billion, an 18 percent increase over FY 2004.

The Enhancement of Postsecondary and Adult Education (Program A), which tracks with the Department's funding for Strategic Goal 5, experienced a 26 percent increase in costs from FY 2004 largely due to assumption changes for loan maturity term and consolidation loan volume. Program B is representative of creating a culture of achievement, culture of student achievement and safe schools, tracking with Goals 1, 2, 3. Program C, the transformation of education aligns with Goal 4. Combined Programs B and C experienced a 13 percent cost increase in FY 2005. This tracks with increased funding for these programs and related distribution of funds to grantees.

Statement of Budgetary Resources

This statement provides information about the provision of budgetary resources and their status as of the end of the reporting period. Information in this statement is consistent with budget execution information and the information reported in the Budget of the United States Government.

The statement [PDF, 184K] shows that the Department had $154.1 billion in budgetary resources for the year ended September 30, 2005. Of the $25.0 billion that remained unobligated at year end, $24.4 billion that represents funding provided in advance for activities in future periods was not available. The Department had $69.8 billion in Net Outlays for FY 2005.

Statement of Financing

This statement demonstrates the relationship between an entity's proprietary and budgetary accounting information. It links the net cost of operations (proprietary) with net obligations (budgetary) by identifying key differences between the two statements. This statement is structured to identify total resources used during the fiscal year, with adjustments made based on whether the resource was used to finance the net obligations or net cost.

This statement [PDF, 180K], identifies $72.9 billion of resources used to finance activities, $2.1 billion of resources not part of the net cost of operations, and ($0.2) billion of components of net cost of operations that will not require or generate resources in the current period.