Department Of Defense Agency Financial Report 2007 - Section 2: Financial Information Page 16

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Department of Defense Agency Financial Report 2007
Section 2: Financial Information
2
Principal Financial Statements And
The Statement of Net Cost
Notes
The Statement of Net Cost, which presents the net cost of
the Department’s operations for the years ended
The principal financial statements included in this report
September 30, 2007 and 2006. The Department’s net
have been prepared in accordance with the requirements of
cost of operations includes the gross costs incurred by
the Chief Financial Officers Act of 1990, the Government
the Department less any exchange revenue earned from
Management Reform Act of 1994, and the Office of
Department activities.
Management and Budget’s Circular A-136, “Financial
Reporting Requirements.” The responsibility for the integrity
The Statement of Changes in Net Position
of the financial information included in these statements
The Statement of Changes in Net Position, which presents
rests with the management of DoD. The Department’s fiscal
the change in the Department’s net position resulting from
years 2007 and 2006 principal financial statements were
the net cost of the Department’s operations, budgetary
audited by the Office of Inspector General. The auditor’s
financing sources other than exchange revenues, and other
report accompanies the principal statements.
financing sources for the years ended September 30, 2007
and 2006.
The Department’s principal financial statements for fiscal
years 2007 and 2006 consisted of the following:
The Statement of Budgetary Resources
The Balance Sheet
The Statement of Budgetary Resources, which presents the
budgetary resources available to the Department during
The Balance Sheet, which presents as of
FY 2007 and 2006, the status of these resources at
September 30, 2007 and 2006 those resources owned or
September 30, 2007 and 2006, and the outlay of budgetary
managed by the Department which are available to provide
resources for the years ended September 30, 2007 and
future economic benefits (assets); amounts owed by the
2006.
Department that will require payments from those resources
or future resources (liabilities); and residual amounts
retained by the Department, comprising the difference (net
position).

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