Department of Defense Agency Financial Report 2007
Section 2: Financial Information
Intragovernmental Accounts Payable and Nonfederal Accounts Payable represent liabilities in cancelled appropriations that,
if paid, will be disbursed using funds current in the year of disbursement.
Debt consists primarily of borrowing from the U.S. Treasury for loans made to foreign governments.
Intragovernmental Liabilities Other is comprised of custodial liabilities for non-entity assets. The amounts collected cannot
be used by the Department and must be returned to the U.S. Treasury. Intragovernmental Liabilities Other also includes
unfunded Federal Employees Compensation Act liabilities that were not due during FY 2007.
Military Retirement and Other Federal Employment Benefits is comprised of employee actuarial liabilities not due and
payable during the current fiscal year. These liabilities are primarily comprised of $813.5 billion in pension liabilities and
$726.3 billion in health benefit liabilities. (Refer to Note 17, Military Retirement and Other Federal Employment Benefits, for
additional details and disclosures.)
Nonfederal Liabilities Other is comprised of unfunded annual leave, contingent liabilities, and expected expenditures for
disposal of conventional munitions.
Note 12. Accounts Payable
As of September 30
2007
2006 Restated
Interest, Penalties, and
(amounts in millions)
Accounts Payable
Total
Total
Administrative Fees
Intragovernmental Payables
$
1,911.5
$
N/A
$
1,911.5
$
1,549.8
Nonfederal Payables (to the Public)
29,671.7
2.3
29,674.0
27,388.4
Total
$
31,583.2
$
2.3
$
31,585.5
$
28,938.2
Accounts payable are amounts owed to federal and nonfederal entities for goods and services received by the Department
that have not been paid. The Department’s systems do not track intragovernmental transactions by customer at the
transaction level. Therefore, buyer-side balances are adjusted to agree with seller-side balances for revenue, accounts
receivable, and unearned revenue. Accounts payable were adjusted by reclassifying amounts between federal and
nonfederal accounts payable.
Note 13. Debt
As of September 30
2007
2006 Restated
(amounts in millions)
Beginning Balance
Net Borrowing
Ending Balance
Net Borrowing
Ending Balance
Agency Debt (Intragovernmental)
Debt to the Treasury
$
659.0
$
(170.5)
$
488.5
$
123.3
$
659.0
Debt to the Federal Financing Bank
3,038.8
(285.0)
2,753.8
(208.3)
3,038.8
Total Agency Debt
3,697.8
(455.5)
3,242.3
( 85.0)
3,697.8
Total Debt
$
3,697.8
$
(455.5)
$
3,242.3
$
( 85.0)
$
3,697.8
The Department’s debt consists of interest and principal payments due to the U.S. Treasury and the Federal Financing Bank.
The Department borrows funds for the Foreign Military Financing Program, the Washington Aqueduct Project, the U.S.
Navy Afloat Prepositioning Force Program, the Military Housing Privatization Initiative, and the Armanment Retooling and
Manufacturing Support.