Department of Defense Agency Financial Report 2007
Section 2: Financial Information
Note 24. Other Disclosures
As of September 30
2007 Asset Category
(amounts in millions)
Land and Buildings
Equipment
Other
Total
Entity as Lessee—Operating Leases
Future Payments Due
Fiscal Year
FY 2008
$
384.1
$
15.7
$
113.2
$
513.0
FY 2009
366.2
15.1
117.7
499.0
FY 2010
317.7
15.1
122.4
455.2
FY 2011
299.1
15.2
127.3
441.6
FY 2012
279.5
15.2
132.4
427.1
After 5 years
530.2
1.2
137.7
669.1
Total Future Lease Payments Due
$
2,176.8
$
77.5
$
750.7
$
3,005.0
Note 25. Restatements
During the reporting period, material errors were identified or accounting principle changes deemed necessary. As a result,
prior year changes have been made retrospectively in accordance with generally accepted accounting principles (GAAP).
Correction Due to Change in Allocation Transfer Reporting
Effective FY 2007, the Office of Management and Budget (OMB) Circular A-136 “Financial Reporting Requirements” changed
the reporting of allocation transfers. Due to this change, the Department reports in its basic financial statements the programs
it administers on behalf of the Executive Office of the President (EOP) including the Foreign Military Sales (FMS) Program.
Previously, the Department recorded the majority of FMS programs as “Other Accompanying Information,” rather than as
part of the basic financial statements. The FMS Trust Fund was not part of this change, as it was formerly included in the
Department’s financial statements.
Per OMB Circular A-136 Section I.14.2, the cumulative effect of the change on prior periods should be reported as a change
in accounting principle, consistent with Statement of Federal Financial Accounting Standards No. 21, “Reporting Corrections
of Errors and Changes in Accounting Principles.” Although this is not considered an error, due to the material and pervasive
impact, the Department, in coordination with OMB and the U.S. Treasury, restated prior year comparative columns as
outlined below:
FY 2006 Balance Sheet
(amounts in billions)
Fund Balance with Treasury
$1.9
Loans Receivable
3.7
Total Assets
$5.6
Debt
$3.3
Other Liabilities
0.4
Total Liabilities
$3.7
Net Position
$1.9