What's at Stake?The US Government's Financial Statements and the Country's Fiscal Health
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Budget
Establishes the fiscal
goals envisioned by Congress
Measured on a cash
basis
Tool to help guide
spending decisions
Financial statements
Record of what has actually
happened
Prepared on an accrual
basis
Provide information
about longer-term implications
Revenue = $2.4 trillion Expenses = exceeded
revenue by $1.3 trillion
2011 Financial Statements
Assets=$2.7 trillion
Liabilities=$17.5 trillion
Accumulated deficit=
$14.8 trillion
2011 Financial Statements
U.S. financial statements differ from other organizations
Most financial statements include obligations or liabilities on balance sheetUS government’s financial statements do not include Social Security and Medicare• Footnote disclosures • Not reflected as liabilities
Reality of future obligations
These future obligations equal:$46.3 trillion in additional deficit
Plus $14.8 trillion cumulative deficitTotal deficit: $61 trillion deficit
$61 trillion is the equivalent of:Every household in America owing the full cost of two new homes and not getting to live in them
Key data in publicly traded company’s financial statements
Revenue: how much money the company
is bringing in
Expenses: how much money the
company is spending
EarningsExpenses < Revenue
= Financially Healthy Company
Accumulated deficit
1 2 3 4
$11.5
$13.5$14.8
$16.0
In tr
illio
ns
2009 2010 2011 2012
What’s next Visit:
aicpa.org/WhatsAtStake
Watch What’s at Stake: A CPA’s Insights into
the Federal Government’s Finances
Policymakers: read the Financial Report
of the US Government
Citizens: read A Citizen’s Guide to the Fiscal Year 2011 Financial Report of
the U.S. Government
Join the public dialogue to make the county’s fiscal health
a national priority
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(Add additional information about related resources you offer on this issue.)
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What's at Stake?The US Government's Financial Statements and the Country's Fiscal Health
