America's Fiscal Future - Current Financial Condition
A bird’s eye view of the federal financial condition, GAO’s audits of the government’s books, and a little help for unpacking the federal financial report.
Each year, the Department of the Treasury (in coordination with the Office of Management and Budget) publishes the consolidated financial statements of the U.S. government, which GAO audits. Here’s a quick overview of the federal financial condition over the past 3 years:
Financial Outcomes for Fiscal Years 2019 - 2021
FY 2021
FY 2020
FY 2019
Outlays (Spending)
$6.8 Trillion
$6.6 Trillion
$4.4 Trillion
Receipts (Revenues)
$4.0 Trillion
$3.4 Trillion
$3.5 Trillion
Deficit
$2.8 Trillion
$3.1 Trillion
$984 Billion
Debt Held by the Public
(End of Fiscal Year)
$22.3 Trillion
$21.0 Trillion
$16.8 Trillion
Source: Financial Report of the United States Government for Fiscal Years 2021, 2020, 2019.
A more complete picture of the government’s financial condition requires a closer look at the financial report. Read on for our insights on understanding the financial report.
Auditing the Federal Government’s Books
While federal financial management has improved since the government began preparing these statements, we have been unable to render an audit opinion on them primarily because of:
Serious financial management problems at the Department of Defense;
The federal government's inability to adequately account for intragovernmental activity and balances between federal agencies; and
Weaknesses in the federal government’s process for preparing the consolidated financial statements.
Need to know more about financial statement auditing (or what an “audit opinion” is)? Read this post on our WatchBlog.
Unpacking the Financial Report of the U.S. Government
GAO periodically publishes a guide to understanding the financial report of the U.S. government, for those who want to dig deeper into the financial report.
Short on time? The U.S. government publishes a yearly Executive Summary (PDF, 7 pages) that provides a brief high-level summary of key parts of the Financial Report. In the Financial Report, you will find the Executive Summary and the financial statements themselves, as well as:
Management’s Discussion and Analysis: Insights on topics including the reporting entity, the results of operations, and future outlook.
Notes to the Financial Statements: Disclosures and detailed information relating to the financial statements.
Required Supplementary Information: Additional information on topics such as fiscal sustainability and social insurance, as required by federal financial accounting standards.
Other Information: Information on topics such as the tax burden and the tax gap.
GAO’s Independent Auditor’s Report: Includes GAO’s reports on the reliability of the information in the financial statements and internal control over financial reporting.
