Examine the following financial statements, which are condensed versions of those of a federal agency responsible for collecting taxes and duties and transferring them to the Treasury.


1. How much did the agency actually collect in taxes? How much did it submit to the Treasury? How much did it owe the Treasury at year-end for both taxes collected and taxes receivable? How much did it owe at the beginning of the year?
2. How much did it cost the agency to carry out its activities during the year?
3. Of its operating costs, how much was financed by federally appropriated funds?
4. What was the total amount that the agency was appropriated during the year? What was the balance that was not used? Is this amount available for immediate use by the agency? If not, why not? Did the agency have a balance in unexpended appropriations at the start of the year? How can you tell?
5. What was the total amount of goods and services ordered by the agency during the year? How much of goods or services was received (including amounts ordered in the previous year but received in the current year)? How much was paid for?
6. Per the statement of financing, the agency ordered $775 of goods and services (obligations incurred), but the net cost of operations per both the statement of financing and the statement of net cost is $800. How can the net cost of operations exceed the amount of goods and services ordered? Explain and account for thedifferences.

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Statement of Changes in Net Position for Year Ended September 30 (in millions) Financing sources-appropriations used 775 Less: net cost of operations Net results of operations Increase in unexpended appropriations Increase in net position Net position, beginning of year Net position, end of year 800 (25) 125 100 450 550 Statement of Custodial Activity for Year Knded September 30 (in millions) Balance Sheel as of September 30 (in millions) Tax revenues for others $ 4,900 Collections Increase in taxes receivable 200 Assets Fund balance with treasury 125 615 Total revenues for others $5,100 axes receivable Disposition of revenues Plant, equipment, and other assets 4,800 300 .100 nts transferred to the treasury Amou Increase in amounts to he transferred (net of accumulated depreciation) Total assets 285 $1,025 Total disposition of revenues Net custodial activity $0 Liabilities Custodial liability Other liabilities 450 25 Total liabilities % 475 Statement of Nel Cost for Year Ended Seplember 30 (in millions) Net positioin 125 425 S 550 Unexpended appropriations Personnel costs Other costs 300 Cumulative results of operations 500 Total net position $ 800 Net cost of operations Total liabilities and net position $1,025