oversight

Financial Statement Audits for Fiscal Years 2009 and 2008-U.S. Department of Education Special Purpose

Published by the Department of Education, Office of Inspector General on 2009-11-16.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                                   UNITED STATES DEPARTMENT OF EDUCATION
                                                        OFFICE OF INSPECTOR GENERAL

                                                                                                       THE INSPECTOR GENERAL


                                                       November 16, 2009




Honorable Arne Duncan
Secretary of Education
Washington, D.C. 20202

Dear Secretary Duncan:

The enclosed report presents the results of the audits of the U.S. Department of Education’s
special purpose financial statements for fiscal years 2009 and 2008. The report should be read in
conjunction with the Department’s special purpose financial statements and notes to fully
understand the context of the information contained therein.

We contracted with the independent certified public accounting firm of Ernst & Young, LLP
(Ernst & Young) to audit the special purpose financial statements of the Department as of
September 30, 2009 and 2008, and for the years then ended. The contract required that the audits
be performed in accordance with U.S. generally accepted government auditing standards and
OMB's bulletin, Audit Requirements for Federal Financial Statements.

In connection with the contract, we monitored the performance of the audits, reviewed Ernst &
Young's reports and related documentation, and inquired of its representatives. Our review was
not intended to enable us to express, and we do not express, an opinion on the Department's
financial statements, or conclusions about the effectiveness of internal control, or on compliance
with laws and regulations.

Ernst & Young is responsible for the attached auditor's report and the conclusions expressed in
the related reports on internal control and compliance with laws and regulations. Our review
disclosed no instances where Ernst & Young did not comply, in all material respects, with U.S.
generally accepted government auditing standards.

                                                                           Sincerely,

                                                                                /s/

                                                                           Mary Mitchelson (Acting)


Enclosure




 The Department of Education's mission is to promote student achievement and preparation for global competitiveness by fostering educational
                                                   excellence and ensuring equal access.
                                                                      Ernst & Young LLP
                                                                      8484 Westpark Drive
                                                                      McLean, VA 22102

                                                                      Tel: 703-747-1000
                                                                      www.ey.com




                                Report of Independent Auditors


To the Inspector General
U.S. Department of Education


We have audited the accompanying reclassified balance sheets as of September 30, 2009 and
2008, the related reclassified statements of net cost and changes in net position for the fiscal
years then ended (hereinafter referred to as the special-purpose financial statements) contained in
the special-purpose closing package of the U.S. Department of Education (the Department).
These special-purpose financial statements are the responsibility of the Department’s
management. Our responsibility is to express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and, Office of Management
and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial Statements, as
amended. Those standards and bulletin require that we plan and perform the audit to obtain
reasonable assurance about whether the special-purpose financial statements are free of material
misstatement. We were not engaged to perform an audit of the Department’s internal control
over financial reporting for the special-purpose financial statements. Our audit included
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Department’s internal control over financial reporting for the
special-purpose financial statements. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
special-purpose financial statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.

The accompanying special-purpose financial statements and accompanying notes contained in
the special-purpose closing package have been prepared for the purpose of complying with the
requirements of the U.S. Department of the Treasury’s Financial Manual (TFM) Volume I, Part
2, Chapter 4700, solely for the purpose of providing financial information to the U.S.
Department of the Treasury and the U.S. Government Accountability Office to use in preparing
and auditing the Financial Report of the U.S. Government, and are not intended to be a complete
presentation of the Department’s financial statements.




                                                                         A member firm of Ernst & Young Global Limited
Report of Independent Auditors
Page 2



In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the financial position of the Department as of September 30, 2009 and 2008,
and its net costs and changes in net position, for the years then ended, in conformity with U.S.
generally accepted accounting principles and the presentation pursuant to the requirements of
TFM Chapter 4700.

The information included in the Other Data is presented for the purpose of additional analysis
and is not a required part of the special-purpose financial statements, but is supplementary
information required by TFM Chapter 4700. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding methodology and presentation of this
information. We also reviewed such information for consistency with the related information
presented in the Department’s financial statements. However, we did not audit this information,
and accordingly, we express no opinion on it.

In accordance with Government Auditing Standards and OMB Bulletin No. 07-04, as amended,
we have also issued our reports dated November 13, 2009 on our consideration of the
Department’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws and regulations and other matters. The purpose of those reports is to
describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. Those reports are an integral part of an audit performed in
accordance with Government Auditing Standards and OMB Bulletin No. 07-04, as amended, and
should be considered in assessing the results of our audit.

In planning and performing our audit of the special-purpose financial statements, we also
considered the Department’s internal control over the financial reporting process for the special-
purpose financial statements and compliance with the TFM Chapter 4700. Management is
responsible for establishing and maintaining internal control over financial reporting, including
Other Data, and for complying with laws and regulations, including compliance with the TFM
Chapter 4700 requirements.

Our consideration of internal control over the financial reporting process for the special-purpose
financial statements was for the limited purpose described above and was not designed to
identify all deficiencies in internal control that might be deficiencies, significant deficiencies, or
material weaknesses. Under standards issued by the American Institute of Certified Public
Accountants, a deficiency in internal control exists when the design or operation of a control
does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness
is a deficiency, or a combination of deficiencies, in internal control such that there is a
reasonable possibility that a material misstatement of the entity’s financial statements will not be



                                                                            A member firm of Ernst & Young Global Limited
Report of Independent Auditors
Page 3



prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency,
or combination of deficiencies in internal control, that is less severe than a material weakness,
yet important enough to merit attention by those charged with governance.

We noted no matters involving internal control over the financial reporting process for the
special-purpose financial statements that we consider to be material weaknesses, and our tests of
compliance with the TFM Chapter 4700 requirements disclosed no instances of noncompliance
that are required to be reported under Government Auditing Standards or OMB Bulletin No. 07-
04, as amended. However, providing opinions on internal control over the financial reporting
process for the special-purpose financial statements or on compliance with the TFM Chapter
4700 requirements were not objectives of our audits of the special-purpose financial statements
and, accordingly, we do not express such opinions.

This report is intended solely for the information and use of the Department, the U.S.
Department of Treasury, the Office of Management and Budget and the U.S. Government
Accountability Office in connection with the preparation and audit of the Financial Report of the
U.S. Government and is not intended to be and should not be used by anyone other than these
specified parties.




November 16, 2009




                                                                        A member firm of Ernst & Young Global Limited
                                                                       U.S Department of the Treasury                                         11-16-2009 12:07:52
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:       2009                               Period:   SEPTEMBER

Entity:       9100-Department of Education                          Reported In:       MILLIONS                 Decimal Point:      ZERO

          Amounts presented as debits and credits()
          The accompanying notes are an integral part of these financial statements.
          I = Inactive Line


Closing Line item                         Status               2009-SEPTEMBER                       2008-SEPTEMBER                     Previously Reported
Assets:
Non-Federal
Cash and Other Monetary Assets                                                2,414                               1,663                              1,663
Accounts and Taxes Receivable                                                   520                                 100                                100
Loans Receivable                                                            234,254                             134,725                            134,725
Inventory and Related Property                                                    0                                   0                                  0
Property, Plant and Equipment                                                    38                                  52                                 52
Securities and Investments                                                        0                                   0                                  0
Investment in Government sponsored                                                0                                   0                                  0
enterprises (GSEs)
Other Assets                                                                    546                                  37                                 37
Total Non-Federal Assets                                                    237,772                             136,577                            136,577

Federal
Fund Balance with Treasury                                                  168,032                              94,899                              94,899
Federal Investments                                                               0                                   0                                   0
Accounts Receivable                                                               0                                   2                                   2
Interest Receivable                                                               0                                   0                                   0
Loans Receivable                                                                  0                                   0                                   0
Transfers Receivable                                                              0                                   0                                   0
Benefit Program Contributions                                                     0                                   0                                   0
Receivable
Advances to Others and Prepayments                                              141                                  95                                 95
Other Assets (without reciprocals)                                                0                                   0                                  0
Total Federal Assets                                                        168,173                              94,996                             94,996
Total Assets                                                                405,945                             231,573                            231,573




                                                                                              -1-
                                                                       U.S Department of the Treasury                                          11-16-2009 12:07:52
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:       2009                                Period:   SEPTEMBER

Entity:       9100-Department of Education                          Reported In:       MILLIONS                  Decimal Point:      ZERO

          Amounts presented as debits and credits()
          The accompanying notes are an integral part of these financial statements.
          I = Inactive Line


Closing Line item                         Status               2009-SEPTEMBER                       2008-SEPTEMBER                      Previously Reported
Liabilities
Non-Federal
Accounts Payable                                                              (1,919)                             (1,296)                             (1,296)
Federal Debt Securities Held by the                                                0                                   0                                   0
Public
Federal Employee and Veteran                                                     (16)                                (16)                                (16)
Benefits Payable
Environmental and Disposal                                                         0                                   0                                      0
Liabilities
Benefits Due and Payable                                                          0                                    0                                   0
Loan Guarantee Liabilities                                                  (20,543)                             (43,322)                            (43,322)
Keepwell payable                                                                  0                                    0                                   0
Insurance Programs                                                                0                                    0                                   0
Other Liabilities                                                            (3,536)                              (2,374)                             (2,374)
Total Non-Federal Liabilities                                               (26,014)                             (47,008)                            (47,008)

Federal
Accounts Payable                                                             (2,414)                              (1,663)                             (1,663)
Federal Debt                                                                      0                                    0                                   0
Interest Payable                                                                (16)                                   0                                   0
Loans Payable                                                              (235,369)                            (128,668)                           (128,668)
Transfers Payable                                                                 0                                    0                                   0
Benefit Program Contributions                                                    (7)                                  (7)                                 (7)
Payable
Advances from Others and Deferred                                                (96)                                (91)                                (91)
Credits
Other Liabilities (without reciprocals)                                     (14,969)                             (10,800)                            (10,800)




                                                                                              -2-
                                                                       U.S Department of the Treasury                                       11-16-2009 12:07:52
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:       2009                             Period:   SEPTEMBER

Entity:       9100-Department of Education                          Reported In:       MILLIONS                  Decimal Point:   ZERO

          Amounts presented as debits and credits()
          The accompanying notes are an integral part of these financial statements.
          I = Inactive Line


Closing Line item                         Status               2009-SEPTEMBER                       2008-SEPTEMBER                   Previously Reported
Total Federal Liabilities                                                  (252,871)                            (141,229)                        (141,229)
Total Liabilities                                                          (278,885)                            (188,237)                        (188,237)

Net Position
Net Position-Non-Earmarked Funds                                           (127,052)                             (43,319)                         (43,319)
Net Position-Earmarked Funds                                                     (8)                                 (17)                             (17)
Total Net Position                                                         (127,060)                             (43,336)                         (43,336)
Total Liabilities and Net Position                                         (405,945)                            (231,573)                        (231,573)




                                                                                              -3-
                                                                       U.S Department of the Treasury                                         11-16-2009 12:07:52
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2009                               Period:   SEPTEMBER

Entity:       9100-Department of Education                          Reported In:       MILLIONS                 Decimal Point:      ZERO

          Amounts presented as debits and credits()
          The accompanying notes are an integral part of these financial statements.
          I = Inactive Line


Closing Line item                         Status               2009-SEPTEMBER                       2008-SEPTEMBER                     Previously Reported
Beginning Net Position                                                      (43,336)                            (49,581)                            (49,581)
Non-Federal Prior Period                                                          0                                   0                                   0
Adjustments (Not Restated)
Federal Prior Period Adjustments                                                   0                                  0                                      0
(Not Restated)
Adjusted Beginning Net Position                                             (43,336)                            (49,581)                            (49,581)
Balance

Non-Federal Nonexchange Revenue
Individual Income Tax and Tax                                                      0                                  0                                      0
Witholdings
Corporation Income Taxes                                                           0                                  0                                      0
Unemployment Taxes                                                                 0                                  0                                      0
Excise Taxes                                                                       0                                  0                                      0
Estate and Gift Taxes                                                              0                                  0                                      0
Custom Duties                                                                      0                                  0                                      0
Other Taxes and Receipts                                                           0                                  0                                      0
Miscellaneous Earned Revenue                                                       0                                  0                                      0
Total Non-Federal Nonexchange                                                      0                                  0                                      0
Revenue

Federal Nonexchange Revenue
Federal Securities Interest Revenue                                                0                                  0                                      0
Borrowing and other interest revenue                                               0                                  0                                      0
Benefit Program Revenue                                                            0                                  0                                      0
(nonexchange)
Other taxes and receipts                                                           0                                  0                                      0




                                                                                              -4-
                                                                       U.S Department of the Treasury                                         11-16-2009 12:07:52
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                            2009                              Period:   SEPTEMBER

Entity:       9100-Department of Education                          Reported In:        MILLIONS                Decimal Point:      ZERO

          Amounts presented as debits and credits()
          The accompanying notes are an integral part of these financial statements.
          I = Inactive Line


Closing Line item                         Status               2009-SEPTEMBER                        2008-SEPTEMBER                    Previously Reported
Total Federal Nonexchange Revenue                                                   0                                 0                                      0

Budgetary Financing Sources:
Appropriations received as adjusted                                        (164,627)                            (70,783)                            (70,783)
(rescissions and other adjustments)
Appropriation of unavailable special                                                0                                 0                                      0
or trust fund receipts transfers-in
Appropriation of unavailable special                                                0                                 0                                      0
or trust fund receipts Transfers-out
Nonexpenditure transfers-in of                                                      0                                 0                                      0
unexpended appropriations and
financing sources
Nonexpenditure Transfers-out of                                                    18                              208                                 208
unexpended appropriations and
financing sources
Expenditure transfers-in of financing                                               0                                 0                                      0
sources
Expenditure Transfers-out of                                                        0                                 0                                      0
financing sources
Other budgetary financing sources                                               622                                (667)                               (667)
Total Budgetary Financing Sources                                          (163,987)                            (71,242)                            (71,242)

Other Financing Sources:
Transfers-in Without Reimbursement                                                  0                                 0                                      0
Transfers-out Without                                                               0                                 0                                      0
Reimbursement
Imputed Financing Source                                                         (32)                               (29)                                (29)




                                                                                               -5-
                                                                       U.S Department of the Treasury                                         11-16-2009 12:07:52
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2009                               Period:   SEPTEMBER

Entity:       9100-Department of Education                          Reported In:       MILLIONS                 Decimal Point:      ZERO

          Amounts presented as debits and credits()
          The accompanying notes are an integral part of these financial statements.
          I = Inactive Line


Closing Line item                         Status               2009-SEPTEMBER                       2008-SEPTEMBER                     Previously Reported
Other non-budgetary financing                                                36,134                              12,699                              12,699
sources
Total Other Financing Sources                                                36,102                              12,670                              12,670


Net Cost                                                                     44,161                              64,817                              64,817

Ending Net Position Balance                                                (127,060)                            (43,336)                            (43,336)




                                                                                              -6-
                                                                       U.S Department of the Treasury                                        11-16-2009 12:07:52
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF NET COST                                    Fiscal Year:       2009                              Period:   SEPTEMBER

Entity:       9100-Department of Education                          Reported In:       MILLIONS                 Decimal Point:     ZERO

          Amounts presented as debits and credits()
          The accompanying notes are an integral part of these financial statements.
          I = Inactive Line


Closing Line item                         Status               2009-SEPTEMBER                       2008-SEPTEMBER                    Previously Reported
Gross Cost:
Non-Federal Gross Cost                                                       44,925                             66,776                              66,776
Interest on Debt Held by the Public                                               0                                  0                                   0
Total Non-Federal Gross Cost                                                 44,925                             66,776                              66,776

Federal Gross Cost
Benefit Program Costs                                                            102                                75                                  75
Imputed Costs                                                                     32                                29                                  29
Buy/Sell Costs                                                                   335                               295                                 295
Federal Securities Interest Expense                                                0                                 0                                   0
Borrowing and Other Interest                                                   9,888                             6,709                               6,709
Expense
Borrowing Losses                                                                130                                150                                 150
Other Expenses (without reciprocals)                                              0                                  0                                   0
Total Federal Gross Cost                                                     10,487                              7,258                               7,258
Department Total Gross Cost                                                  55,412                             74,034                              74,034

Earned Revenue
Non-Federal Earned Revenue                                                    (6,531)                           (4,996)                             (4,996)

Federal Earned Revenue
Benefit Program Revenue (exchange)                                                0                                  0                                  0
Buy/Sell Revenue                                                               (905)                              (805)                              (805)
Federal Securities Interest Revenue                                               0                                  0                                  0
(exchange)
Borrowing and Other Interest                                                  (3,815)                           (3,227)                             (3,227)
Revenue (Exchange)




                                                                                              -7-
                                                                       U.S Department of the Treasury                                        11-16-2009 12:07:52
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF NET COST                                    Fiscal Year:       2009                              Period:   SEPTEMBER

Entity:       9100-Department of Education                          Reported In:       MILLIONS                 Decimal Point:     ZERO

          Amounts presented as debits and credits()
          The accompanying notes are an integral part of these financial statements.
          I = Inactive Line


Closing Line item                         Status               2009-SEPTEMBER                       2008-SEPTEMBER                    Previously Reported
Borrowings Gains                                                                   0                              (189)                               (189)
Other Revenue (without reciprocals)                                                0                                 0                                   0
Total Federal Earned Revenue                                                  (4,720)                           (4,221)                             (4,221)

Department Total Earned Revenue                                             (11,251)                            (9,217)                             (9,217)

Net Cost                                                                     44,161                             64,817                              64,817




                                                                                              -8-
                                                               U.S. Department of the Treasury                                     11/16/2009 12:09:35
                                                                 Financial Management Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2009                                   Period: SEPTEMBER
    Entity: 9100 - Department of Education                                  Reported in: MILLIONS                         Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                                Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                    Type
 4   Fund Balance with Treasury (Note 3)                                              A      D       B                  168,032                  94,899
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Fund Balance with Treasury                             F                168,032                94,899                     94,899                     0
Total:                                                                  168,032                94,899                     94,899                     0

Line Agency Line Description                                                Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                    Type
 5   Accounts Receivable (Note 4)                                                     A      D       F                        0                          2
                                                                                   Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Accounts Receivable                                    F                   0                      2                            2                     0
Total:                                                                     0                      2                            2                     0

Line Agency Line Description                                                Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                    Type
 6   Other Intragovernmental Assets (Note 8)                                          A      D       B                      141                      95
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Advances to Others and Prepayments                     F                  141                     95                         95                      0
Total:                                                                    141                     95                         95                      0




                                                                             -1-
                                                               U.S. Department of the Treasury                                     11/16/2009 12:09:35
                                                                 Financial Management Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2009                                   Period: SEPTEMBER
    Entity: 9100 - Department of Education                                  Reported in: MILLIONS                         Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                                Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                    Type
 9   Cash and Other Monetary Assets (Note 5)                                          A      D       B                     2,414                  1,663
                                                                                   Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Cash and Other Monetary Assets                         N                 2,414                  1,663                      1,663                     0
Total:                                                                   2,414                  1,663                      1,663                     0

Line Agency Line Description                                                Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                    Type
 10 Accounts Receivable, Net (Note 4)                                                 A      D       B                      520                     100
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Accounts and Taxes Receivable                          N                  520                    100                        100                      0
Total:                                                                    520                    100                        100                      0

Line Agency Line Description                                                Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                    Type
 11 Credit Program Receivables, Net (Note 6)                                          A      D       N                  234,254                 134,725
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Loans Receivable                                       N                234,254                134,725                   134,725                     0
Total:                                                                  234,254                134,725                   134,725                     0




                                                                             -2-
                                                             U.S. Department of the Treasury                                     11/16/2009 12:09:35
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                  Fiscal Year: 2009                                   Period: SEPTEMBER
    Entity: 9100 - Department of Education                                Reported in: MILLIONS                         Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                              Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                  Type
 12 General Property, Plant and Equipment, Net (Note 7)                             A      D       B                       38                      52
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Property, Plant and Equipment                        N                   38                     52                         52                      0
Total:                                                                   38                     52                         52                      0

Line Agency Line Description                                              Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                  Type
 13 Other Assets (Note 8)                                                           A      D       N                      546                      37
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Other Assets                                         N                  546                     37                         37                      0
Total:                                                                  546                     37                         37                      0

Line Agency Line Description                                              Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                  Type
 19 Accounts Payable                                                                L      C       F                        0                          8
                                                                                 Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Other Liabilities (without reciprocals)              F                   0                       8                           8                     0
Total:                                                                   0                      (8)                        (8)                     0




                                                                           -3-
                                                             U.S. Department of the Treasury                                      11/16/2009 12:09:35
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2009                                  Period: SEPTEMBER
    Entity: 9100 - Department of Education                                  Reported in: MILLIONS                        Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                                Status Account NB       F/N    2009-SEPTEMBER           2008-SEPTEMBER
                                                                                    Type
 20 Debt (Note 9)                                                                     L      C      F                  235,385                 128,668
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2009-SEPTEMBER          2008-SEPTEMBER        Previously Reported       Line Item Changes
Interest Payable                                     F                      16                       0                       0                      0
Loans Payable                                        F                 235,369                 128,668                 128,668                      0
Total:                                                                (235,385)               (128,668)               (128,668)                     0
Line Agency Line Description                                                Status Account NB       F/N    2009-SEPTEMBER           2008-SEPTEMBER
                                                                                    Type
 21 Guaranty Agency Federal and Restricted Funds Due to Treasury (Note 5)             L      C      F                    2,414                   1,663
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2009-SEPTEMBER          2008-SEPTEMBER        Previously Reported       Line Item Changes
Accounts Payable                                     F                  2,414                   1,663                    1,663                      0
Total:                                                                 (2,414)                 (1,663)                  (1,663)                     0

Line Agency Line Description                                                Status Account NB       F/N    2009-SEPTEMBER           2008-SEPTEMBER
                                                                                    Type
 22 Payable to Treasury (Note 6)                                                      L      C      F                    3,569                   3,766
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2009-SEPTEMBER          2008-SEPTEMBER        Previously Reported       Line Item Changes
Other Liabilities (without reciprocals)              F                  3,569                   3,766                    3,766                      0
Total:                                                                 (3,569)                 (3,766)                  (3,766)                     0




                                                                             -4-
                                                              U.S. Department of the Treasury                                      11/16/2009 12:09:35
                                                                Financial Management Service
                                                           Governmentwide Financial Report System

                                              GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                   Fiscal Year: 2009                                    Period: SEPTEMBER
    Entity: 9100 - Department of Education                                 Reported in: MILLIONS                          Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                                Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                    Type
 23 Other Intragovernmental Liabilities (Note 10)                                     L      C      F                    11,503                   7,124
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported       Line Item Changes
Benefit Program Contributions Payable                 F                      7                     7                          7                      0
Advances from Others and Deferred Credits             F                     96                    91                         91                      0
Other Liabilities (without reciprocals)               F                 11,400                 7,026                      7,026                      0
Total:                                                                 (11,503)               (7,124)                    (7,124)                     0
Line Agency Line Description                                                Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                    Type
 27 Accounts Payable                                                                  L      C      N                     1,919                   1,296
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported       Line Item Changes
Accounts Payable                                      N                 1,919                  1,296                      1,296                      0
Total:                                                                 (1,919)                (1,296)                    (1,296)                     0

Line Agency Line Description                                                Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                    Type
 28 Accrued Grant Liability (Note 11)                                                 L      C      N                     2,962                   2,245
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported       Line Item Changes
Other Liabilities                                     N                 2,962                  2,245                      2,245                      0
Total:                                                                 (2,962)                (2,245)                    (2,245)                     0



                                                                             -5-
                                                               U.S. Department of the Treasury                                      11/16/2009 12:09:35
                                                                 Financial Management Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2009                                    Period: SEPTEMBER
    Entity: 9100 - Department of Education                                  Reported in: MILLIONS                          Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                                 Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                     Type
 29 Liabilities for Loan Guarantees (Note 6)                                           L      C      N                    20,543                  43,322
                                                                                    Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported       Line Item Changes
Loan Guarantee Liabilities                             N                 20,543                 43,322                    43,322                      0
Total:                                                                  (20,543)               (43,322)                  (43,322)                     0

Line Agency Line Description                                                 Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                     Type
 30 Other Liabilities (Note 10)                                                        L      C      N                       590                     145
                                                                                    Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported       Line Item Changes
Federal Employee and Veteran Benefits                  N                   16                     16                         16                       0
Payable
Other Liabilities                                     N                     574                      129                     129                          0
Total:                                                                     (590)                    (145)                   (145)                         0
Line Agency Line Description                                                 Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                     Type
 37 Unexpended Appropriations - Earmarked Funds (Note 19)                              E      C      B                         0                          0
                                                                                    Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported       Line Item Changes
Total:                                                                     0                      0                            0                      0




                                                                              -6-
                                                             U.S. Department of the Treasury                                      11/16/2009 12:09:35
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                   Fiscal Year: 2009                                   Period: SEPTEMBER
    Entity: 9100 - Department of Education                                 Reported in: MILLIONS                         Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                                Status Account NB      F/N     2009-SEPTEMBER           2008-SEPTEMBER
                                                                                    Type
 38 Unexpended Appropriations -Other Funds                                            E      C     B                   127,269                  49,506
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2009-SEPTEMBER         2008-SEPTEMBER         Previously Reported       Line Item Changes
Net Position-Non-Earmarked Funds                     B                 127,269                 49,506                   49,506                      0
Total:                                                                (127,269)               (49,506)                 (49,506)                     0

Line Agency Line Description                                                Status Account NB      F/N     2009-SEPTEMBER           2008-SEPTEMBER
                                                                                    Type
 39 Cumulative Results of Operations - Earmarked Funds (Note 19)                      E      C     B                         8                       17
                                                                                   Variance:                                 0                        0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2009-SEPTEMBER         2008-SEPTEMBER         Previously Reported       Line Item Changes
Net Position-Earmarked Funds                         B                     8                     17                        17                       0
Total:                                                                    (8)                   (17)                      (17)                      0

Line Agency Line Description                                                Status Account NB      F/N     2009-SEPTEMBER           2008-SEPTEMBER
                                                                                    Type
 40 Cumulative Results of Operations-Other Funds                                      E      C     B                      (217)                  (6,187)
                                                                                   Variance:                                 0                        0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2009-SEPTEMBER         2008-SEPTEMBER         Previously Reported       Line Item Changes
Net Position-Non-Earmarked Funds                     B                  (217)                 (6,187)                   (6,187)                     0
Total:                                                                   217                   6,187                     6,187                      0




                                                                            -7-
                                                                U.S. Department of the Treasury                                    11/16/2009 12:09:35
                                                                  Financial Management Service
                                                             Governmentwide Financial Report System

                                              GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                              Fiscal Year: 2009                                  Period: SEPTEMBER
    Entity: 9100 - Department of Education                                   Reported in: MILLIONS                        Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                                 Status Account NB       F/N    2009-SEPTEMBER           2008-SEPTEMBER
                                                                                     Type
 3   Beginning Balances - Earmarked Funds                                             BN      C       B                      17                       39
                                                                                    Variance:                                 0                        0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N       2009-SEPTEMBER         2008-SEPTEMBER        Previously Reported       Line Item Changes
Beginning Net Position                                B                     17                     39                       39                       0
Total:                                                                     (17)                   (39)                     (39)                      0

Line Agency Line Description                                                 Status Account NB       F/N    2009-SEPTEMBER           2008-SEPTEMBER
                                                                                     Type
 4   Beginning Balances - All Other Funds                                             BN      C       B                  (6,187)                  (2,505)
                                                                                    Variance:                                 0                        0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N       2009-SEPTEMBER         2008-SEPTEMBER        Previously Reported       Line Item Changes
Beginning Net Position                                B                  (6,187)                (2,505)                  (2,505)                     0
Total:                                                                    6,187                  2,505                    2,505                      0

Line Agency Line Description                                                 Status Account NB       F/N    2009-SEPTEMBER           2008-SEPTEMBER
                                                                                     Type
 8   Other Adjustments (rescission, etc) - Earmarked Funds                             F      C       B                       0                          0
                                                                                    Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N       2009-SEPTEMBER         2008-SEPTEMBER        Previously Reported       Line Item Changes
Total:                                                                      0                      0                          0                      0




                                                                              -8-
                                                                 U.S. Department of the Treasury                                     11/16/2009 12:09:35
                                                                   Financial Management Service
                                                              Governmentwide Financial Report System

                                                GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2009                                   Period: SEPTEMBER
    Entity: 9100 - Department of Education                                    Reported in: MILLIONS                         Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                                  Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                      Type
  9   Other Adjustments (rescission, etc) - All Other Funds                             F      C       B                        2                      (6)
                                                                                     Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Appropriations received as adjusted (rescissions         F                   2                      (6)                        (6)                     0
and other adjustments)
Total:                                                                         (2)                         6                    6                          0
Line Agency Line Description                                                  Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                      Type
 11 Appropriations Used-Earmarked Funds                                                 F      C       B                        0                          0
                                                                                     Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description                Status F/N      2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Total:                                                                       0                      0                            0                     0


Line Agency Line Description                                                  Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                      Type
 12 Appropriations Used-All Other Funds                                                 F      C       B                    86,863                 73,330
                                                                                     Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description                Status F/N      2009-SEPTEMBER         2008-SEPTEMBER          Previously Reported      Line Item Changes
Nonexpenditure transfers-in of unexpended               F                 86,863                 73,330                     73,330                     0
appropriations and financing sources
Total:                                                                    (86,863)                 (73,330)               (73,330)                         0




                                                                               -9-
                                                             U.S. Department of the Treasury                                     11/16/2009 12:09:35
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                           Fiscal Year: 2009                                   Period: SEPTEMBER
    Entity: 9100 - Department of Education                                Reported in: MILLIONS                         Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                              Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                  Type
 14 Nonexpenditure Financing Sources - Transfers-Out - Earmarked Funds              F      C       F                        0                          0
                                                                                 Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2009-SEPTEMBER         2008-SEPTEMBER         Previously Reported      Line Item Changes
Total:                                                                    0                      0                           0                     0


Line Agency Line Description                                              Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                  Type
 15 Nonexpenditure Financing Sources - Transfers-Out - All Other Funds              F      C       F                      (18)                    (208)
                                                                                 Variance:                                  0                        0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2009-SEPTEMBER         2008-SEPTEMBER         Previously Reported      Line Item Changes
Nonexpenditure Transfers-out of unexpended           F                    18                    208                       208                      0
appropriations and financing sources
Total:                                                                     18                      208                    208                          0
Line Agency Line Description                                              Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                  Type
 19 Imputed Financing from Costs Absorbed by Others - Earmarked Funds               F      C       F                        0                          0
                                                                                 Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2009-SEPTEMBER         2008-SEPTEMBER         Previously Reported      Line Item Changes
Total:                                                                    0                      0                           0                     0




                                                                           - 10 -
                                                             U.S. Department of the Treasury                                      11/16/2009 12:09:35
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                           Fiscal Year: 2009                                    Period: SEPTEMBER
    Entity: 9100 - Department of Education                                Reported in: MILLIONS                          Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                               Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                   Type
 20 Imputed Financing from Costs Absorbed by Others - All Other Funds                F      C      F                        32                      29
                                                                                  Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER          2008-SEPTEMBER         Previously Reported       Line Item Changes
Imputed Financing Source                             F                   32                      29                        29                       0
Total:                                                                  (32)                    (29)                      (29)                      0

Line Agency Line Description                                               Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                   Type
 22 Others - Earmarked Funds                                                         F      C      B                         0                          0
                                                                                  Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER          2008-SEPTEMBER         Previously Reported       Line Item Changes
Total:                                                                   0                       0                           0                      0


Line Agency Line Description                                               Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                   Type
 23 Others - All Other Funds                                                         F      C      B                   (36,757)                (12,032)
                                                                                  Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER          2008-SEPTEMBER         Previously Reported       Line Item Changes
Other non-budgetary financing sources                F                (36,135)                (12,699)                 (12,699)                     0
Other budgetary financing sources                    F                   (622)                    667                      667                      0
Total:                                                                 36,757                  12,032                   12,032                      0




                                                                           - 11 -
                                                             U.S. Department of the Treasury                                      11/16/2009 12:09:35
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                           Fiscal Year: 2009                                    Period: SEPTEMBER
    Entity: 9100 - Department of Education                                Reported in: MILLIONS                          Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                               Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                   Type
 43 Beginning Balances - Earmarked Funds                                            BN      C      B                         0                          0
                                                                                  Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER          2008-SEPTEMBER         Previously Reported       Line Item Changes
Total:                                                                   0                       0                           0                      0


Line Agency Line Description                                               Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                   Type
 44 Beginning Balances - All Other Funds                                            BN      C      B                    49,506                  52,047
                                                                                  Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER          2008-SEPTEMBER         Previously Reported       Line Item Changes
Beginning Net Position                               B                 49,506                  52,047                   52,047                      0
Total:                                                                (49,506)                (52,047)                 (52,047)                     0

Line Agency Line Description                                               Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                   Type
 48 Approprations Received - Earmarked Funds                                         F      C      F                         0                          0
                                                                                  Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER          2008-SEPTEMBER         Previously Reported       Line Item Changes
Total:                                                                   0                       0                           0                      0




                                                                           - 12 -
                                                                 U.S. Department of the Treasury                                    11/16/2009 12:09:35
                                                                   Financial Management Service
                                                              Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2009                                  Period: SEPTEMBER
    Entity: 9100 - Department of Education                                    Reported in: MILLIONS                        Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                                  Status Account NB       F/N     2009-SEPTEMBER          2008-SEPTEMBER
                                                                                      Type
 49 Appropriations Received - All Other Funds                                           F      C       F                 164,927                  72,991
                                                                                     Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2009-SEPTEMBER          2008-SEPTEMBER        Previously Reported      Line Item Changes
Appropriations received as adjusted (rescissions         F                164,927                 72,991                   72,991                     0
and other adjustments)
Total:                                                                   (164,927)                 (72,991)              (72,991)                         0
Line Agency Line Description                                                  Status Account NB       F/N     2009-SEPTEMBER          2008-SEPTEMBER
                                                                                      Type
 51 Appropriations Transferred - in/out - Earmarked Funds                               F      C       F                       0                          0
                                                                                     Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2009-SEPTEMBER          2008-SEPTEMBER        Previously Reported      Line Item Changes
Total:                                                                       0                       0                          0                     0


Line Agency Line Description                                                  Status Account NB       F/N     2009-SEPTEMBER          2008-SEPTEMBER
                                                                                      Type
 52 Appropriations Transferred - in/out - All Other Funds                               F      C       F                       1                          0
                                                                                     Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2009-SEPTEMBER          2008-SEPTEMBER        Previously Reported      Line Item Changes
Other non-budgetary financing sources                  F                      1                      0                          0                     0
Total:                                                                       (1)                     0                          0                     0




                                                                               - 13 -
                                                                 U.S. Department of the Treasury                                     11/16/2009 12:09:35
                                                                   Financial Management Service
                                                              Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2009                                   Period: SEPTEMBER
    Entity: 9100 - Department of Education                                    Reported in: MILLIONS                         Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                                  Status Account NB       F/N     2009-SEPTEMBER           2008-SEPTEMBER
                                                                                      Type
 54 Other Adjustments (rescissions, etc) - Earmarked Funds                              F      C       B                        0                          0
                                                                                     Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2009-SEPTEMBER          2008-SEPTEMBER        Previously Reported       Line Item Changes
Total:                                                                       0                       0                          0                      0


Line Agency Line Description                                                  Status Account NB       F/N     2009-SEPTEMBER           2008-SEPTEMBER
                                                                                      Type
 55 Other Adjustments (rescissions, etc) - All Other Funds                              F      C       B                     (302)                  (2,202)
                                                                                     Variance:                                  0                        0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2009-SEPTEMBER          2008-SEPTEMBER        Previously Reported       Line Item Changes
Appropriations received as adjusted (rescissions         F                 (302)                  (2,202)                  (2,202)                     0
and other adjustments)
Total:                                                                        302                     2,202                 2,202                          0
Line Agency Line Description                                                  Status Account NB       F/N     2009-SEPTEMBER           2008-SEPTEMBER
                                                                                      Type
 57 Appropriations Used - Earmarked Funds                                               F      C       B                        0                          0
                                                                                     Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2009-SEPTEMBER          2008-SEPTEMBER        Previously Reported       Line Item Changes
Total:                                                                       0                       0                          0                      0




                                                                               - 14 -
                                                             U.S. Department of the Treasury                                      11/16/2009 12:09:35
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                           Fiscal Year: 2009                                    Period: SEPTEMBER
    Entity: 9100 - Department of Education                                Reported in: MILLIONS                          Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                               Status Account NB      F/N      2009-SEPTEMBER           2008-SEPTEMBER
                                                                                   Type
 58 Appropriations Used - All Other Funds                                            F      C      B                   (86,863)                (73,330)
                                                                                  Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER          2008-SEPTEMBER         Previously Reported       Line Item Changes
Nonexpenditure transfers-in of unexpended            F                (86,863)                (73,330)                 (73,330)                     0
appropriations and financing sources
Total:                                                                 86,863                   73,330                  73,330                          0




                                                                           - 15 -
                                                             U.S. Department of the Treasury                                     11/16/2009 12:09:35
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF NET COST                                          Fiscal Year: 2009                                   Period: SEPTEMBER
    Entity: 9100 - Department of Education                                Reported in: MILLIONS                         Decimal Point: ZERO

Amounts reported as normal/(abnormal) balances.
I = Inactive Line
Line Agency Line Description                                              Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                  Type
 43 Total Gross costs                                                              GC      D       B                    55,412                 74,034
                                                                                 Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER          2008-SEPTEMBER         Previously Reported      Line Item Changes
Imputed Costs                                        F                    32                      29                        29                     0
Buy/Sell Costs                                       F                   335                     295                       295                     0
Benefit Program Costs                                F                   102                      75                        75                     0
Borrowing and Other Interest Expense                 F                 9,888                   6,709                     6,709                     0
Borrowing Losses                                     F                   130                     150                       150                     0
Non-Federal Gross Cost                               N                44,925                  66,776                    66,776                     0
Total:                                                                55,412                  74,034                    74,034                     0
Line Agency Line Description                                              Status Account NB       F/N      2009-SEPTEMBER          2008-SEPTEMBER
                                                                                  Type
 44 Total Earned Revenue                                                           ER      C       B                    11,251                  9,217
                                                                                 Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2009-SEPTEMBER          2008-SEPTEMBER         Previously Reported      Line Item Changes
Buy/Sell Revenue                                     F                   905                     805                       805                     0
Borrowings Gains                                     F                     0                     189                       189                     0
Borrowing and Other Interest Revenue                 F                 3,815                   3,227                     3,227                     0
(Exchange)
Non-Federal Earned Revenue                          N                   6,531                   4,996                   4,996                          0
Total:                                                                (11,251)                 (9,217)                 (9,217)                         0




                                                                           - 16 -
                                                             U.S.Department of the Treasury                             11-16-2009 12:09:11
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2009                            Period: SEPTEMBER

Entity:    9100 - Department of Education                         Reported in: MILLIONS                 Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line
Agency FS Status CP Line Description                              Account Type        NB          2009-SEPTEMBER        2008-SEPTEMBER
 BS              Accounts Receivable                              A                   D                        0                     2
                                                                                 Variance:                         0                     0

Trading          Name                           Status 2009-SEPTEMBER      2008-SEPTEMBER         Previously Reported    Line item Changes
Partner
 7500 Department of Health and Human                                 0                        2                    2                     0
        Services
                                   Total                             0                        2                    2                     0

Agency FS Status CP Line Description                              Account Type        NB          2009-SEPTEMBER        2008-SEPTEMBER
 BS              Advances to Others and Prepayments               A                   D                       141                    95
                                                                                 Variance:                         0                     0

Trading       Name                              Status 2009-SEPTEMBER      2008-SEPTEMBER         Previously Reported    Line item Changes
Partner
 1400 Department of the Interior                                   141                       95                   95                     0
                                   Total                           141                       95                   95                     0




                                                                          -1-
                                                             U.S.Department of the Treasury                                   11-16-2009 12:09:11
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2009                                 Period: SEPTEMBER

Entity:    9100 - Department of Education                         Reported in: MILLIONS                      Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line
Agency FS Status CP Line Description                              Account Type        NB               2009-SEPTEMBER         2008-SEPTEMBER
 BS              Accounts Payable                                 L                   C                           2,414                  1,663
                                                                                 Variance:                               0                     0

Trading        Name                             Status 2009-SEPTEMBER      2008-SEPTEMBER              Previously Reported     Line item Changes
Partner
 1400 Department of the Interior                                     0                           2                       2                     0
 4700 General Services Administration                                0                           1                       1                     0
 9900 Treasury General Fund                                      2,414                       1,660                   1,660                     0
                                  Total                         (2,414)                      (1,663)                (1,663)                    0

Agency FS Status CP Line Description                              Account Type        NB               2009-SEPTEMBER         2008-SEPTEMBER
 BS              Advances from Others and Deferred Credits        L                   C                             96                     91
                                                                                 Variance:                               0                     0

Trading          Name                           Status 2009-SEPTEMBER      2008-SEPTEMBER              Previously Reported     Line item Changes
Partner
 1200 Department of Agriculture                                      1                            1                      1                     0
 2800 Social Security Administration                                 1                            1                      1                     0
 3600 DEPARTMENT OF VETERANS                                         1                            1                      1                     0
        AFFAIRS
 4900 National Science Foundation                                    2                            1                      1                     0
 7500 Department of Health and Human                                91                           87                     87                     0
        Services
                                  Total                            (96)                         (91)                   (91)                    0




                                                                          -2-
                                                             U.S.Department of the Treasury                              11-16-2009 12:09:11
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2009                             Period: SEPTEMBER

Entity:    9100 - Department of Education                         Reported in: MILLIONS                  Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line
Agency FS Status CP Line Description                              Account Type        NB           2009-SEPTEMBER        2008-SEPTEMBER
 BS              Benefit Program Contributions Payable            L                   C                         7                     7
                                                                                 Variance:                          0                     0

Trading         Name                            Status 2009-SEPTEMBER      2008-SEPTEMBER          Previously Reported    Line item Changes
Partner
 1601 Department of Labor                                            3                        3                     3                     0
 2400 Office of Personnel Management                                 4                        4                     4                     0
                                  Total                             (7)                      (7)                   (7)                    0

Agency FS Status CP Line Description                              Account Type        NB           2009-SEPTEMBER        2008-SEPTEMBER
 BS              Interest Payable                                 L                   C                         16                    0
                                                                                 Variance:                          0                     0

Trading       Name                              Status 2009-SEPTEMBER      2008-SEPTEMBER          Previously Reported    Line item Changes
Partner
 2000 Department of the Treasury                                    16                        0                     0                     0
                                  Total                            (16)                       0                     0                     0




                                                                          -3-
                                                                  U.S.Department of the Treasury                                    11-16-2009 12:09:11
                                                                  Financial Management Service
                                                              Governmentwide Financial Report System

                                                           GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                                Fiscal Year: 2009                                 Period: SEPTEMBER

Entity:    9100 - Department of Education                               Reported in: MILLIONS                      Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line
Agency FS Status CP Line Description                                    Account Type        NB               2009-SEPTEMBER         2008-SEPTEMBER
 BS              Loans Payable                                          L                   C                          235,369                128,668
                                                                                       Variance:                               0                     0

Trading       Name                              Status 2009-SEPTEMBER            2008-SEPTEMBER              Previously Reported     Line item Changes
Partner
 2000 Department of the Treasury                                    235,369                   128,668                   128,668                      0
                                  Total                             (235,369)                 (128,668)                 (128,668)                    0


Agency FS Status CP Line Description                                    Account Type        NB               2009-SEPTEMBER         2008-SEPTEMBER
 BS              Other Liabilities (without reciprocals)                L                   C                          14,969                 10,800
                                                                                       Variance:                               0                     0

Trading         Name                            Status 2009-SEPTEMBER            2008-SEPTEMBER              Previously Reported     Line item Changes
Partner
 1400 Department of the Interior                                          (1)                           0                      0                     0
 2000 Department of the Treasury                                           2                            0                      0                     0
 2400 Office of Personnel Management                                       0                           (2)                    (2)                    0
 4700 General Services Administration                                    (11)                          (2)                    (2)                    0
 7000 Department of Homeland Security                                      0                           (1)                    (1)                    0
 9900 Treasury General Fund                                           14,973                       10,801                 10,801                     0
 9999 Unidentified                                                         6                            4                      4                     0
                                  Total                              (14,969)                  (10,800)                  (10,800)                    0




                                                                                -4-
                                                                U.S.Department of the Treasury                               11-16-2009 12:09:11
                                                                Financial Management Service
                                                            Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                      Fiscal Year: 2009                              Period: SEPTEMBER

Entity:    9100 - Department of Education                            Reported in: MILLIONS                   Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line
Agency FS Status CP Line Description                                 Account Type        NB            2009-SEPTEMBER        2008-SEPTEMBER
 SCNP            Nonexpenditure Transfers-out of unexpended          CF                  D                          18                   208
                 appropriations and financing sources
                                                                                    Variance:                           0                     0

Trading                                                  2009-SEPTEMBER       2008-SEPTEMBER           Previously Reported    Line item Changes
Partner        Name                             Status
 9900 Treasury General Fund                                            18                       208                   208                     0
                                  Total                                18                       208                   208                     0


Agency FS Status CP Line Description                                 Account Type        NB            2009-SEPTEMBER        2008-SEPTEMBER
 SCNP            Imputed Financing Source                            F                   C                          32                    29
                                                                                    Variance:                           0                     0

Trading         Name                            Status 2009-SEPTEMBER         2008-SEPTEMBER           Previously Reported    Line item Changes
Partner
 2400 Office of Personnel Management                                   32                        29                    29                     0
                                  Total                               (32)                      (29)                  (29)                    0




                                                                             -5-
                                                             U.S.Department of the Treasury                                  11-16-2009 12:09:11
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                   Fiscal Year: 2009                                Period: SEPTEMBER

Entity:    9100 - Department of Education                         Reported in: MILLIONS                     Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line
Agency FS Status CP Line Description                              Account Type        NB              2009-SEPTEMBER         2008-SEPTEMBER
 SCNP            Other budgetary financing sources                F                   C                          (622)                   667
                                                                                 Variance:                              0                     0

Trading        Name                             Status 2009-SEPTEMBER      2008-SEPTEMBER             Previously Reported     Line item Changes
Partner
 9900 Treasury General Fund                                       (622)                        667                   667                      0
                                  Total                            622                        (667)                 (667)                     0


Agency FS Status CP Line Description                              Account Type        NB              2009-SEPTEMBER         2008-SEPTEMBER
 SCNP            Other non-budgetary financing sources            F                   C                         (36,134)               (12,699)
                                                                                 Variance:                              0                     0

Trading        Name                             Status 2009-SEPTEMBER      2008-SEPTEMBER             Previously Reported     Line item Changes
Partner
 9900 Treasury General Fund                                    (36,134)                  (12,699)                 (12,699)                    0
                                  Total                         36,134                       12,699                12,699                     0




                                                                          -6-
                                                             U.S.Department of the Treasury                                      11-16-2009 12:09:11
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                     Fiscal Year: 2009                                 Period: SEPTEMBER

Entity:    9100 - Department of Education                            Reported in: MILLIONS                      Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line
Agency FS Status CP Line Description                                 Account Type        NB               2009-SEPTEMBER         2008-SEPTEMBER
 NCS             Borrowing and Other Interest Revenue (Exchange)     ER                  C                           3,815                  3,227
                                                                                    Variance:                               0                     0

Trading       Name                              Status 2009-SEPTEMBER         2008-SEPTEMBER              Previously Reported     Line item Changes
Partner
 2000 Department of the Treasury                                   3,815                        3,227                   3,227                     0
                                  Total                            (3,815)                      (3,227)                (3,227)                    0


Agency FS Status CP Line Description                                 Account Type        NB               2009-SEPTEMBER         2008-SEPTEMBER
 NCS             Borrowings Gains                                    ER                  C                             0                     189
                                                                                    Variance:                               0                     0

Trading        Name                             Status 2009-SEPTEMBER         2008-SEPTEMBER              Previously Reported     Line item Changes
Partner
 9900 Treasury General Fund                                             0                         189                    189                      0
                                  Total                                 0                        (189)                  (189)                     0




                                                                             -7-
                                                             U.S.Department of the Treasury                                11-16-2009 12:09:11
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2009                               Period: SEPTEMBER

Entity:    9100 - Department of Education                         Reported in: MILLIONS                    Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line
Agency FS Status CP Line Description                              Account Type        NB             2009-SEPTEMBER        2008-SEPTEMBER
 NCS             Buy/Sell Revenue                                 ER                  C                          905                   805
                                                                                 Variance:                            0                     0

Trading          Name                           Status 2009-SEPTEMBER      2008-SEPTEMBER            Previously Reported    Line item Changes
Partner
 1200 Department of Agriculture                                      1                          1                     1                     0
 1601 Department of Labor                                            0                          1                     1                     0
 7000 Department of Homeland Security                                1                          1                     1                     0
 7500 Department of Health and Human                                72                         72                    72                     0
        Services
 9900 Treasury General Fund                                        831                       730                    730                     0
                                  Total                           (905)                      (805)                 (805)                    0

Agency FS Status CP Line Description                              Account Type        NB             2009-SEPTEMBER        2008-SEPTEMBER
 NCS             Benefit Program Costs                            GC                  D                          102                    75
                                                                                 Variance:                            0                     0

Trading         Name                            Status 2009-SEPTEMBER      2008-SEPTEMBER            Previously Reported    Line item Changes
Partner
 1400 Department of the Interior                                    24                          0                     0                     0
 2400 Office of Personnel Management                                78                         75                    75                     0
                                  Total                            102                         75                    75                     0




                                                                          -8-
                                                             U.S.Department of the Treasury                                11-16-2009 12:09:11
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2009                               Period: SEPTEMBER

Entity:    9100 - Department of Education                         Reported in: MILLIONS                    Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line
Agency FS Status CP Line Description                              Account Type        NB             2009-SEPTEMBER        2008-SEPTEMBER
 NCS             Borrowing Losses                                 GC                  D                          130                   150
                                                                                 Variance:                             0                    0

Trading        Name                             Status 2009-SEPTEMBER      2008-SEPTEMBER            Previously Reported    Line item Changes
Partner
 9900 Treasury General Fund                                        130                        150                   150                     0
                                  Total                            130                        150                   150                     0


Agency FS Status CP Line Description                              Account Type        NB             2009-SEPTEMBER        2008-SEPTEMBER
 NCS             Borrowing and Other Interest Expense             GC                  D                         9,888                 6,709
                                                                                 Variance:                             0                    0

Trading       Name                              Status 2009-SEPTEMBER      2008-SEPTEMBER            Previously Reported    Line item Changes
Partner
 2000 Department of the Treasury                                 9,888                       6,709                 6,709                    0
                                  Total                          9,888                       6,709                 6,709                    0




                                                                          -9-
                                                             U.S.Department of the Treasury                                11-16-2009 12:09:11
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2009                               Period: SEPTEMBER

Entity:    9100 - Department of Education                         Reported in: MILLIONS                    Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line
Agency FS Status CP Line Description                              Account Type          NB           2009-SEPTEMBER        2008-SEPTEMBER
 NCS             Buy/Sell Costs                                   GC                    D                        335                   295
                                                                                   Variance:                          0                     0

Trading          Name                           Status 2009-SEPTEMBER      2008-SEPTEMBER            Previously Reported    Line item Changes
Partner
 1300 Department of Commerce                                        21                          21                   21                     0
 1400 Department of the Interior                                   146                         102                  102                     0
 1500 Department of Justice                                          1                           0                    0                     0
 1601 Department of Labor                                           12                          12                   12                     0
 1800 United States Postal Service                                   0                           2                    2                     0
 1900 Department of State                                            2                           2                    2                     0
 2000 Department of the Treasury                                     3                           1                    1                     0
 2400 Office of Personnel Management                                 8                           5                    5                     0
 4700 General Services Administration                               97                         102                  102                     0
 4900 National Science Foundation                                    1                           1                    1                     0
 6900 Department of Transportation                                   3                           3                    3                     0
 7000 Department of Homeland Security                                1                           1                    1                     0
 7500 Department of Health and Human                                 9                           8                    8                     0
        Services
 8900 Department of Energy                                           0                           1                    1                     0
 9500 Independent and Other Agencies                                10                          12                   12                     0
 9900 Treasury General Fund                                         (1)                          4                    4                     0
 DE00 Department of Defense                                         22                          18                   18                     0
                                  Total                            335                         295                  295                     0




                                                                          - 10 -
                                                             U.S.Department of the Treasury                              11-16-2009 12:09:11
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2009                             Period: SEPTEMBER

Entity:    9100 - Department of Education                         Reported in: MILLIONS                  Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line
Agency FS Status CP Line Description                              Account Type         NB          2009-SEPTEMBER        2008-SEPTEMBER
 NCS             Imputed Costs                                    GC                   D                        32                    29
                                                                                  Variance:                         0                     0

Trading         Name                            Status 2009-SEPTEMBER      2008-SEPTEMBER          Previously Reported    Line item Changes
Partner
 2400 Office of Personnel Management                                32                        29                   29                     0
                                  Total                             32                        29                   29                     0




                                                                         - 11 -
                                                                                                                                                                                  11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 01            Federal Reserve Earnings, Subsequent Events, and Other Pertinent Information                                 Fiscal Year: 2009          Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                      Agency Notes:    Note 01

  Status: Complete                            The accompanying notes are an integral part of these financial statements.           I = Inactive Line

Tab: Other Notes Info.

       Section: B             Section Name: Related Parties ¿ External to the Reporting Entity for      No Data Flag: YES         Line Attributes: Dollars
                                            the Financial Report                                                                Rounding Method: Millions                 Decimal: Zero
Line Status Line Description          NB        2009 - SEPTEMBER             2008 - SEPTEMBER                 Previously Rptd    Line Item Changes
 1              Related party        Debit
                receivables
 2              Related party        Credit
                payables
 3              Related party        Credit
                operating revenue
 4              Related party net    Debit
                cost of operations
 5              Related party        Debit
                economic
                dependency
                transactions
 6              Investments in       Debit
                related parties




                                                                                                           -1-
                                                                                                                                                                                            11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 01         Federal Reserve Earnings, Subsequent Events, and Other Pertinent Information                                   Fiscal Year: 2009                Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                       Agency Notes:      Note 01

 Status: Complete                         The accompanying notes are an integral part of these financial statements.              I = Inactive Line

Tab: Text Data
Line               Question                                                                                        Answer
1                  Describe any significant events that occured after the date of the balance sheet but prior to
                   the agency's audited financial statements being issued.
2                  Describe any departures from U.S. Generally Accepted Accounting Procedures (GAAP).
3                  Describe any change in accounting if a collecting entity adopts accounting standards that
                   embody a fuller application of accrual accounting concepts that differs from that prescribed
                   by the standard-SFFAS no. 7, par.64.
4                  List all of the agency's components whose balances and activities are not combined into the
                   agency's financial statements and therefore, are not represented in the GFRS data.
5                  List all of the agency's components whose balances and activities are combined into the         The components whose balances and activities are combined into the financial
                   agency's financial statements, and, therefore, are represented in the GFRS data.                statements and presented in the GFRS data are Federal Student Aid (FSA), Office of
                                                                                                                   Elementary and Secondary Education (OESE), Office of Special Education and
                                                                                                                   Rehabilitative Services (OSERS), Office of Vocational and Adult Education (OVAE),
                                                                                                                   Office of Postsecondary Education (OPE), Institute of Education Sciences (IES), Office
                                                                                                                   of English Language Acquisition (OELA), Office of Safe and Drug-Free Schools
                                                                                                                   (OSDFS), Office of Innovation and Improvement (OII) and Office of Management (OM).
6                  Describe the nature of the related party relationship and transactions pertaining to the
                   amount in the Other Notes Info tab, Related party receivables line.
7                  Describe the nature of the related party relationship and transactions pertaining to the
                   amount in the Other Notes Info tab, Related party payables¿ line.
8                  Describe the Other Notes Info tab, Related party operating revenue transactions along with
                   the related party relationship and include transactions with zero or nominal balances,
                   guarantees, and other terms. Also, describe changes in related party terms.
9                  Describe the Other Notes Info tab, Related party net cost of operations transactions along
                   with the related party relationship and include transactions with zero or nominal balances,
                   guarantees, and other terms. Also, describe changes in related party terms.
10                 Describe related party economic dependency (that is, major customers, suppliers,
                   franchisors, franchisees, distributors, general agents, borrowers, and lenders) relationships
                   and transactions included in the Other Notes Info tab, Related party economic dependency
                   transactions section.
11                 Provide details on the investments in related parties.
12                 Provide details on related party leases.
13                 Describe control relationships with entities under common ownership, management control,
                   and conservatorship if the operating results or financial position could be significantly
                   impacted as a result of the relationship. Include control relationships with and without
                   transactions.
14                 Provide any other useful information on related parties.
15                 Provide any other relevant information pertaining to this note.                                 The Budget and Accounting Procedures Act of 1950 allows the Secretary of the
                                                                                                                   Treasury to stipulate the format and requirements of executive agencies to furnish
                                                                                                                   financial and operational information to the President and the Congress to comply with
                                                                                                                   the Government Management Reform Act of 1994 (GMRA) (Pub. L. No. 103-356),
                                                                                                                   which requires the Secretary of the Treasury to prepare and submit annual audited
                                                                                                                   financial statements of the executive branch. The Secretary of the Treasury developed


                                                                                                           -2-
                                                                                                                                                                                         11/16/2009 12:26:48

                                                                              U.S. Department of the Treasury
                                                                               Financial Management Service
                                                                          Governmentwide Financial Report System
                                                                                  GF006 - FR Notes Report

   Note: 01         Federal Reserve Earnings, Subsequent Events, and Other Pertinent Information                                 Fiscal Year: 2009                 Period: SEPTEMBER
  Entity: 9100      Department of Education                                                                                      Agency Notes:      Note 01

 Status: Complete                     The accompanying notes are an integral part of these financial statements.              I = Inactive Line

Tab: Text Data
Line             Question                                                                                      Answer
                                                                                                               guidance in the U.S. Department of the Treasury's Financial Manual (TFM) Volume I,
                                                                                                               Part 2, Chapter 4700 to provide agencies with instructions to meet the requirements of
                                                                                                               GMRA. The TFM Chapter 4700 requires agencies to:

                                                                                                               1. Reclassify all items and amounts on the audited consolidated, department-level
                                                                                                               balance sheet, statements of net cost, changes in net position/income statement and
                                                                                                               custodial activity, if applicable, to the special-purpose financial statements;

                                                                                                               2. Disclose special-purpose financial statement line item amounts identified as Federal
                                                                                                               by trading partner and amount (amounts should be net of intra-agency and intra-
                                                                                                               departmental eliminations);

                                                                                                               3. Disclose notes required by Balance Sheet line items and other notes required in the
                                                                                                               Financial Report of the U.S. Government (FR); and

                                                                                                               4. Disclose other data not contained in the primary FR financial statements and notes
                                                                                                               required to meet GAAP requirements.




                                                                                                   -3-
                                                                                                                                                                                            11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 02           Cash and Other Monetary Assets                                                                                Fiscal Year: 2009               Period: SEPTEMBER
   Entity: 9100         Department of Education                                                                                       Agency Notes:        Note 02

  Status: Complete                          The accompanying notes are an integral part of these financial statements.             I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                          NB    Account     2009 - SEPTEMBER       2008 - SEPTEMBER
                                                                                  Type
Cash and Other Monetary Assets                                             D        A                     2,414                   1,663
                                                                               Variance:                      0                       0           Rounding Method: Millions            Decimal: Zero
Line Status Line Description             2009 - SEPTEMBER            2008 - SEPTEMBER               Previously Rptd           Line Item Changes
 3           Other cash - not
             restricted
 4           Other cash - restricted                        2,414                       1,663                       1,663                              0
 5           International monetary
             assets
 7      I    Domestic monetary
             assets
 8           Foreign currency
             Total                                           2,414                       1,663                        1,663                            0
Threshold

 Line Description                                               Question                                                           Answer
 Line Item Notes - Other cash - restricted (2009 -              Please provide explanations for any amounts that have              This change reflects the impact of guaranty agencies ongoing operations
 SEPTEMBER)                                                     changed by 10% or more and or greater than 500,000 between         and guaranty agency reserve upward adjustment for year-end loan loss
                                                                the current fiscal year and prior fiscal year. (Unaudited)         reserve.




                                                                                                       -4-
                                                                                                                                                                                                 11/16/2009 12:26:48

                                                                                        U.S. Department of the Treasury
                                                                                         Financial Management Service
                                                                                    Governmentwide Financial Report System
                                                                                            GF006 - FR Notes Report

    Note: 02           Cash and Other Monetary Assets                                                                                    Fiscal Year: 2009                 Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                           Agency Notes:      Note 02

 Status: Complete                          The accompanying notes are an integral part of these financial statements.                 I = Inactive Line

Tab: Text Data
Line               Question                                                                                            Answer
1                  Describe the nature of the amount in the line item "other cash - not restricted."
2                  Describe the restrictions on the cash reported in the line item "Other cash - restricted" and       Cash and Other Monetary Assets consist of guaranty agency reserves that represent
                   any statutory authority (law, regulation, or agreement).                                            the federal government's interest in the net assets of state and nonprofit FFEL Program
                                                                                                                       guaranty agencies. Guaranty agency reserves include initial federal start-up funds,
                                                                                                                       receipts of federal reinsurance payments, insurance premiums, guaranty agency share
                                                                                                                       of collections on defaulted loans, investment income, administrative cost allowances,
                                                                                                                       and other assets.
3                  If the cash is restricted because it is non-entity, state the entity for which the cash is being    Cash and Other Monetary Assets consist of reserves held in the FFEL Guaranty
                   held.                                                                                               Agency Federal Funds.
4                  Is the reported restricted cash being held in a financial institution? If yes, is it a Treasury
                   designated bank?
5                  If the agency has restricted cash, is the restricted cash invested? If yes, is it invested in the
                   Bureau of the Public Debt security, agency security, and/or non-Federal security?
6                  Describe the nature of the amount in the line item "Foreign currency."
7                  Disclose any restrictions on the use (for example, by law, regulation, or agreement) of the
                   amount in the line item "Foreign Currency."
8                  Disclose the method of exchange rate used on the financial statement date (Treasury
                   exchange rate or prevailing market rate).
9                  Provide any other relevant information pertaining to this note.




                                                                                                                -5-
                                                                                                                                                                                                       11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 03           Accounts and Taxes Receivable                                                                                         Fiscal Year: 2009                 Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                               Agency Notes:        Note 03

  Status: Complete                         The accompanying notes are an integral part of these financial statements.                      I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                            NB    Account     2009 - SEPTEMBER          2008 - SEPTEMBER
                                                                                    Type
Accounts and Taxes Receivable                                               D         A                           520                      100
                                                                                 Variance:                          0                        0          Rounding Method: Millions                 Decimal: Zero
Line Status Line Description            2009 - SEPTEMBER             2008 - SEPTEMBER                     Previously Rptd           Line Item Changes
 1            Accounts receivable,                             693                           278                             278                               0
              gross
 2            Related interest
              receivable - accounts
              receivable
 3            Penalties, fines, and
              administrative fees
              receivable
 4            Less: allowance for                            -173                          -178                             -178                               0
              loss on accounts
              receivable
 5            Less: allowance for
              loss on interest
              receivable
 6            Less: allowance for
              loss on penalties,
              fines, and admin. fees
              rec.
              Total                                            520                           100                             100                               0
Threshold

 Line Description                                               Question                                                                   Answer
 Line Item Notes - Accounts receivable, gross (2009 -           Please provide explanations for any amounts that have                      This increase is primarily due to excess interest recapture (negative special
 SEPTEMBER)                                                     changed by 10% or more and or greater than 500,000 between                 allowance payments) for the FFEL program.
                                                                the current fiscal year and prior fiscal year. (Unaudited)
Tab: Text Data
 Line               Question                                                                                                Answer
 1                  Describe the method(s) used to calculate the allowances on accounts receivable.                         The estimate of the allowance for loss on uncollectible accounts is based on
                                                                                                                            Department experience in the collection of receivables and an analysis of the
                                                                                                                            outstanding balances.
 3                   Explain any material difference between the balance of accounts receivable and the
                     amounts reported on the Treasury Report on Receivables.
 4                   Provide any other relevant information pertaining to this note.




                                                                                                            -6-
                                                                                                                                                                                                     11/16/2009 12:26:48

                                                                                    U.S. Department of the Treasury
                                                                                     Financial Management Service
                                                                                Governmentwide Financial Report System
                                                                                        GF006 - FR Notes Report

      Note: 04A         Direct Loans Receivable                                                                                         Fiscal Year: 2009                   Period: SEPTEMBER
   Entity: 9100         Department of Education                                                                                         Agency Notes:        Note 04A

  Status: Complete                        The accompanying notes are an integral part of these financial statements.                I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                           NB    Account     2009 - SEPTEMBER       2008 - SEPTEMBER
                                                                                   Type
Loans Receivable                                                            D        A                   234,254                 134,725
                                                                                Variance:                      0                       0           Rounding Method: Millions                   Decimal: Zero
Line Status Line Description           CY: Face Value of Loans         CY: Long-Term Cost of           CY Net Loans           PY: Face Value of Loans         PY: Long-Term Cost of                  PY Net Loans
                                              Oustanding                          Loans                                              Oustanding                          Loans
 1           Federal Direct Student                    156,807                         4,036                       152,771                     123,593                       13,743                              109,850
             Loans
 4           Federal Family                                  84,034                      3,080                      80,954                        32,659                            8,150                          24,509
             Education Loan
 14          Perkins Loan Program                               306                         122                        184                           310                              124                             186
 15          TEACH Grant                                         50                           0                         50                             2                                1                               1
             Program
 16          Facilities Loan                                    660                         365                        295                           559                              380                             179
             Program
 17
 18
 19          All other loans
             receivable
             Total                                           241,857                     7,603                     234,254                       157,123                           22,398                         134,725
Threshold

 Line Description                                                Question                                                            Answer
 Line Item Notes - Federal Direct Student Loans (CY: Face        Please provide explanations for any amounts that have               New loan originations and consolidations, net of collections from borrowers.
 Value of Loans Oustanding)                                      changed by 10% or more and or greater than 500,000 between
                                                                 the current fiscal year and prior fiscal year. (Unaudited)
 Line Item Notes - Federal Direct Student Loans (CY: Long-       Please provide explanations for any amounts that have               The decrease is primarily due to downward subsidy re-estimates and
 Term Cost of Loans)                                             changed by 10% or more and or greater than 500,000 between          negative subsidy transfers that decreased allowance for subsidy.
                                                                 the current fiscal year and prior fiscal year. (Unaudited)
 Line Item Notes - Federal Family Education Loan (CY: Face       Please provide explanations for any amounts that have               The increase is primarily a reflection of the impact of a fully year of activity in
 Value of Loans Oustanding)                                      changed by 10% or more and or greater than 500,000 between          the ECALSA activities (loan participation purchases and loan purchase
                                                                 the current fiscal year and prior fiscal year. (Unaudited)          commitments), which first had activity in August FY 2008. The increase also
                                                                                                                                     includes ABCP conduit activity (implemented during FY 2009) and FFEL
                                                                                                                                     guaranteed default claim payments made during FY 2009.
 Line Item Notes - Federal Family Education Loan (CY: Long-      Please provide explanations for any amounts that have               The decrease is primarily due to negative subsidy transfers in the loan
 Term Cost of Loans)                                             changed by 10% or more and or greater than 500,000 between          participation purchase and loan purchase commitment activities.
                                                                 the current fiscal year and prior fiscal year. (Unaudited)
 Line Item Notes - TEACH Grant Program (CY: Face Value of        Please provide explanations for any amounts that have               The TEACH Grant Program was a new program implemented in July FY
 Loans Oustanding)                                               changed by 10% or more and or greater than 500,000 between          2008; the increase reflects the impact of a full year of activity.
                                                                 the current fiscal year and prior fiscal year. (Unaudited)



                                                                                                        -7-
                                                                                                                                                                                    11/16/2009 12:26:48

                                                                                  U.S. Department of the Treasury
                                                                                   Financial Management Service
                                                                              Governmentwide Financial Report System
                                                                                      GF006 - FR Notes Report

   Note: 04A          Direct Loans Receivable                                                                                  Fiscal Year: 2009               Period: SEPTEMBER
  Entity: 9100        Department of Education                                                                                  Agency Notes:     Note 04A

 Status: Complete                        The accompanying notes are an integral part of these financial statements.         I = Inactive Line



Threshold

Line Description                                               Question                                                      Answer
Line Item Notes - Facilities Loan Program (CY: Face Value of   Please provide explanations for any amounts that have        Increase is primarily due to new HBCU loans disbursed during FY 2009.
Loans Oustanding)                                              changed by 10% or more and or greater than 500,000 between
                                                               the current fiscal year and prior fiscal year. (Unaudited)




                                                                                                      -8-
                                                                                                                                                                                           11/16/2009 12:26:48

                                                                                      U.S. Department of the Treasury
                                                                                       Financial Management Service
                                                                                  Governmentwide Financial Report System
                                                                                          GF006 - FR Notes Report

     Note: 04A           Direct Loans Receivable                                                                                          Fiscal Year: 2009               Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                          Agency Notes:        Note 04A

  Status: Complete                             The accompanying notes are an integral part of these financial statements.              I = Inactive Line

Tab: Other Notes Info.

       Section: A                Section Name: Subsidy Expense                                                                        Line Attributes: Dollars
                                                                                                                                    Rounding Method: Millions                      Decimal: Zero
Line Status Line Description            NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd         Line Item Changes
 1             Federal Direct          Debit                      -9,603                      5,236                         5,236                          0
               Students Loans
 4             Federal Family          Debit                      -4,085                      -170                          -170                           0
               Education Loan
14             TEACH Grant             Debit                          -2                          0                                                        0
               Subsidy Expense
15                                     Debit
16                                     Debit
17                                     Debit
18                                     Debit
19             All other loans         Debit                                                      1                            1                           0
               receivable
20             Total                   N/A                       -13,690                      5,067                         5,067                          0
       Section: B                Section Name: Foreclosed Assets - Balances (SFFAS No. 3, par.         No Data Flag: YES              Line Attributes: Dollars
                                               91)                                                                                  Rounding Method: Millions                      Decimal: Zero
Line Status Line Description            NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd         Line Item Changes
 1             Balances for            Debit
               property held Pre-
               1992
 2             Balances for            Debit
               property held Post-
               1991




                                                                                                          -9-
                                                                                                                                                                                                11/16/2009 12:26:48

                                                                                       U.S. Department of the Treasury
                                                                                        Financial Management Service
                                                                                   Governmentwide Financial Report System
                                                                                           GF006 - FR Notes Report

   Note: 04A        Direct Loans Receivable                                                                                         Fiscal Year: 2009                   Period: SEPTEMBER
  Entity: 9100       Department of Education                                                                                        Agency Notes:       Note 04A

 Status: Complete                       The accompanying notes are an integral part of these financial statements.               I = Inactive Line

Tab: Text Data
Line             Question                                                                                        Answer
1                Provide a broad description of foreclosed property.
2                Provide any other relevant information pertaining to this note.                                 The Department administers the William D. Ford Federal Direct Student Loan (Direct
                                                                                                                 Loan) Program, to help students finance the costs of higher education. The Direct Loan
                                                                                                                 Program, authorized by the Student Loan Reform Act of 1993, enables the Department
                                                                                                                 to make loans directly to eligible undergraduate and graduate students and their
                                                                                                                 parents through participating schools. Under this program, loans are made to
                                                                                                                 individuals who meet statutorily set eligibility criteria and attend eligible institutions of
                                                                                                                 higher education-public or private two- and four-year institutions, graduate schools,
                                                                                                                 and vocational training schools.




                                                                                                                 The Federal Credit Reform Act of 1990 (Credit Reform Act) underlies the proprietary
                                                                                                                 and budgetary accounting treatment of direct loans. The long-term cost to the
                                                                                                                 government for direct loans, other than for general administration of the programs, is
                                                                                                                 referred to as "subsidy cost." Under the Credit Reform Act, subsidy costs for loans
                                                                                                                 obligated beginning in fiscal year 1992 are estimated at the net present value of
                                                                                                                 projected lifetime costs in the year the loan is obligated. Subsidy costs are then
                                                                                                                 revalued annually through the re-estimate process.




                                                                                                                 The Ensuring Continued Access to Student Loans Act of 2008 (ECASLA) amended the
                                                                                                                 FFEL Program to authorize the Secretary to purchase or enter into forward
                                                                                                                 commitments to purchase FFEL loans. This temporary loan purchase authority was to
                                                                                                                 expire on September 30, 2009; however, Public Law (P.L.) 110-350 extended the
                                                                                                                 authority through September 30, 2010. The Department has implemented three
                                                                                                                 activities under this temporary loan purchase authority. These activities are: (1) loan
                                                                                                                 purchase commitments under which the Department purchases loans directly from
                                                                                                                 FFEL lenders; (2) loan participation purchases in which the Department purchases
                                                                                                                 participation interests in FFEL loans; and (3) an Asset-Backed Commercial Paper
                                                                                                                 (ABCP) Conduit in which the Department enters into a forward commitment to purchase
                                                                                                                 FFEL loans from a conduit, as needed, to allow the conduit to repay short-term liquidity
                                                                                                                 loans used to re-finance maturing commercial paper.




                                                                                                                 The Teacher Education Assistance for College and Higher Education Grant (TEACH)


                                                                                                    - 10 -
                                                                                                                                                                                   11/16/2009 12:26:48

                                                                            U.S. Department of the Treasury
                                                                             Financial Management Service
                                                                        Governmentwide Financial Report System
                                                                                GF006 - FR Notes Report

   Note: 04A        Direct Loans Receivable                                                                                    Fiscal Year: 2009              Period: SEPTEMBER
  Entity: 9100      Department of Education                                                                                    Agency Notes:     Note 04A

 Status: Complete                    The accompanying notes are an integral part of these financial statements.             I = Inactive Line

Tab: Text Data
Line             Question                                                                                     Answer
                                                                                                              Program was implemented beginning July 1, 2008. This program, added to the HEA by
                                                                                                              the College Cost Reduction and Access Act (CCRAA), awards annual grants to
                                                                                                              students who agree to teach in a high-need subject area in a public or private
                                                                                                              elementary or secondary school that serves low-income students.




                                                                                               - 11 -
                                                                                                                                                                                             11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

      Note: 04B         Loan Guarantees                                                                                              Fiscal Year: 2009                Period: SEPTEMBER
   Entity: 9100         Department of Education                                                                                      Agency Notes:        Note 04B

  Status: Complete                        The accompanying notes are an integral part of these financial statements.              I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                          NB    Account    2009 - SEPTEMBER        2008 - SEPTEMBER
                                                                                  Type
Loan Guarantee Liabilities                                                 C        L                    20,543                 43,322
                                                                               Variance:                      0                      0           Rounding Method: Millions              Decimal: Zero
Line Status Line Description          2009 - SEPTEMBER               2008 - SEPTEMBER               Previously Rptd          Line Item Changes
 1           Federal Family
             Education Loans
 13          Federal Family                                 20,543                     43,322                     43,322                              0
             Education Loans
 14
 15
 16
 17
 18          All other loan
             guarantee liabilities
             Total                                          20,543                     43,322                      43,322                             0
Threshold

 Line Description                                               Question                                                          Answer
 Line Item Notes - Federal Family Education Loans (2009 -       Please provide explanations for any amounts that have             This decrease is mostly due to subsidy re-estimates, loan modifications,
 SEPTEMBER)                                                     changed by 10% or more and or greater than 500,000 between        and negative subsidy transfers during FY 2009, net of increases in default
                                                                the current fiscal year and prior fiscal year. (Unaudited)        claim payments and excess interest recapture.




                                                                                                      - 12 -
                                                                                                                                                                                                    11/16/2009 12:26:48

                                                                                          U.S. Department of the Treasury
                                                                                           Financial Management Service
                                                                                      Governmentwide Financial Report System
                                                                                              GF006 - FR Notes Report

     Note: 04B         Loan Guarantees                                                                                                 Fiscal Year: 2009                   Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                        Agency Notes:        Note 04B

  Status: Complete                         The accompanying notes are an integral part of these financial statements.               I = Inactive Line

Tab: Other Notes Info.

       Section: A            Section Name: Other Related Information                                                              Line Attributes: Dollars
                                                                                                                                Rounding Method: Millions                                Decimal: Zero
Line Status Line Description         NB          CY Face Value of           CY Amount Guaranteed      CY Subsidy Expense D     PY Face Value of Loans PY Amount Guaranteed by                 PY Subsidy Expense D
                                             Loans Outstanding D             by the Government D                                      Outstanding D        the Government D
 1             Federal Family        N/A                       457,279                      445,439                -25,855                       414,603                         405,139                           -2,682
               Education Loans
13                                   N/A
14                                   N/A
15                                   N/A
16                                   N/A
17                                   N/A
18          All other loans          N/A
            guarantee liabilities
19          Total:                   N/A                       457,279                      445,439                -25,855                       414,603                         405,139                           -2,682
Tab: Text Data
 Line               Question                                                                                        Answer
 1                  Provide any other relevant information pertaining to this note.                                 The Department administers the Federal Family Education Loan (FFEL) Program, to
                                                                                                                    help students finance the costs of higher education. The FFEL Program, initially
                                                                                                                    authorized by the Higher Education Act of 1965 (HEA), as amended, cooperates with
                                                                                                                    state and private nonprofit Guaranty Agencies to provide loan guarantees and interest
                                                                                                                    subsidies on loans made by private lenders to eligible students. Under this program,
                                                                                                                    loans are made to individuals who meet statutorily set eligibility criteria and attend
                                                                                                                    eligible institutions of higher education-public or private two- and four-year institutions,
                                                                                                                    graduate schools, and vocational training schools.




                                                                                                                    The Federal Credit Reform Act of 1990 (Credit Reform Act) underlies the proprietary
                                                                                                                    and budgetary accounting treatment of guaranteed loans. The long-term cost to the
                                                                                                                    government for loan guarantees, other than for general administration of the programs,
                                                                                                                    is referred to as "subsidy cost." Under the Credit Reform Act, subsidy costs for loans
                                                                                                                    obligated beginning in fiscal year 1992 are estimated at the net present value of
                                                                                                                    projected lifetime costs in the year the loan is obligated. Subsidy costs are then
                                                                                                                    revalued annually through the re-estimate process.




                                                                                                        - 13 -
                                                                                                                                                                                11/16/2009 12:26:48

                                                                                U.S. Department of the Treasury
                                                                                 Financial Management Service
                                                                            Governmentwide Financial Report System
                                                                                    GF006 - FR Notes Report

     Note: 05          Inventories and Related Property                                                                         Fiscal Year: 2009               Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                  Agency Notes:      N/A

  Status: Complete                       The accompanying notes are an integral part of these financial statements.          I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                       NB    Account     2009 - SEPTEMBER       2008 - SEPTEMBER
                                                                               Type
Inventory and Related Property                                          D        A                          0                  0
                                                                            Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description          2009 - SEPTEMBER           2008 - SEPTEMBER                Previously Rptd        Line Item Changes
 1          Gross Inventory -
            balance beginning of
            year
 2          Prior-period
            adjustment (not
            restated)
 3          Capitalized
            acquisitions from the
            public
 4          Capitalized
            acquisitions from
            Government agencies
 5          Inventory sold or used
 6          Total allowance for
            inventories and related
            property
            Total




                                                                                                   - 14 -
                                                                                                                                                                               11/16/2009 12:26:48

                                                                                        U.S. Department of the Treasury
                                                                                         Financial Management Service
                                                                                    Governmentwide Financial Report System
                                                                                            GF006 - FR Notes Report

     Note: 05             Inventories and Related Property                                                                             Fiscal Year: 2009      Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                      Agency Notes:    N/A

  Status: Complete                               The accompanying notes are an integral part of these financial statements.         I = Inactive Line

Tab: Other Notes Info.

       Section: A               Section Name: Inventory Yearend Balances by Category Type                No Data Flag: YES         Line Attributes: Dollars
                                                                                                                                 Rounding Method: Millions             Decimal: Zero
Line Status Line Description             NB        2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Inventory               Debit
                purchased for sale
 2              Inventory held in       Debit
                reserve for future
                sale to the public
 3              Inventory and           Debit
                operating material
                and supplies held
                for repair
 4              Inventory - excess,     Debit
                obsolete, and
                unserviceable
 5              Operating materials     Debit
                and supplies held
                for use
 6              Operating materials     Debit
                and supplies held
                in reserve for future
                use
 7              Operating materials     Debit
                and supplies
                excess, obsolete,
                and unserviceable
 8              Stockpile materials     Debit
 9              Stockpile materials     Debit
                held for sale
10              Forfeited property      Debit
11              Other related           Debit
                property
12              Total allowance for     Credit
                inventories and
                related property
13              Total inventories        N/A
                and related
                property, net




                                                                                                           - 15 -
                                                                                                                                                                               11/16/2009 12:26:48

                                                                                    U.S. Department of the Treasury
                                                                                     Financial Management Service
                                                                                Governmentwide Financial Report System
                                                                                        GF006 - FR Notes Report

     Note: 05            Inventories and Related Property                                                                          Fiscal Year: 2009         Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                   Agency Notes:    N/A

  Status: Complete                           The accompanying notes are an integral part of these financial statements.         I = Inactive Line


       Section: B              Section Name: Capitalized Acquitions From Government Agencies         No Data Flag: YES         Line Attributes: Dollars
                                             by Trading Patrner                                                              Rounding Method: Millions                Decimal: Zero
Line Status Line Description          NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              General Services     Debit
                Administration
 2              Department of        Debit
                Defense
 3              Department of        Debit
                Justice
 4              National             Debit
                Aeronautics and
                Space
                Administration
 5              All other            Debit
                departments
 6              Total Capitalized     N/A
                Assets from
                Federal Agencies
       Section: C              Section Name: Other Information - Dollar Value                        No Data Flag: YES         Line Attributes: Dollars
                                                                                                                             Rounding Method: User-Defined            Decimal: User-Defined
Line Status Line Description          NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Seized property      Debit
 2              Forfeited property   Debit
 3              Goods held under     Debit
                price support and
                stabilization
                programs




                                                                                                       - 16 -
                                                                                                                                                                         11/16/2009 12:26:48

                                                                                      U.S. Department of the Treasury
                                                                                       Financial Management Service
                                                                                  Governmentwide Financial Report System
                                                                                          GF006 - FR Notes Report

     Note: 05            Inventories and Related Property                                                                         Fiscal Year: 2009      Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                 Agency Notes:    N/A

  Status: Complete                          The accompanying notes are an integral part of these financial statements.         I = Inactive Line


       Section: D              Section Name: Other Information - Number of Items/Volume             No Data Flag: YES         Line Attributes: Units


Line Status Line Description          NB      2009 - SEPTEMBER                2008 - SEPTEMBER            Previously Rptd     Line Item Changes
 1              Seized property      N/A
 2              Forfeited property   N/A
 3              Goods held under     N/A
                price support and
                stabilization
                programs



Tab: Text Data                         No Data Flag: YES
 Line                Question                                                                                        Answer
 1                   Method used to calculate allowance for each category of inventory.
 2                   Significant accounting principles and methods of applying those principles.
 3                   Provide any other relevant information pertaining to this note.




                                                                                                      - 17 -
                                                                                                                                                                                    11/16/2009 12:26:48

                                                                                U.S. Department of the Treasury
                                                                                 Financial Management Service
                                                                            Governmentwide Financial Report System
                                                                                    GF006 - FR Notes Report

     Note: 06          Property, Plant, and Equipment                                                                            Fiscal Year: 2009                Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                   Agency Notes:        Note 06

  Status: Complete                       The accompanying notes are an integral part of these financial statements.           I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                       NB    Account     2009 - SEPTEMBER        2008 - SEPTEMBER
                                                                               Type
Property, Plant and Equipment                                           D        A                          38                 52
                                                                            Variance:                        0                  0             Rounding Method: Millions         Decimal: Zero
Line Status Line Description                     CY PP&E            CY Accum. Depr.                CY Net PP& E                     PY PP&E             PY Accum. Depr.               PY Net PP&E
 1          PP&E - balance                                 155                          103                            52                      132                        86                         46
            beginning of year
 2          Prior-period
            adjustments (not
            restated)
 3          Capitalized                                       8                                                         8                       23                                                   23
            acquisitions from the
            public
 4          Capitalized
            acquisitions from
            Government agencies
 5          Deletions from the
            Balance Sheet
 6          Revaluations
 7          Stewardship
            reclassifications
 8          Depreciation/amortizati                                                      22                           -22                                                 17                        -17
            on
            Total                                           163                         125                            38                       155                       103                        52




                                                                                                   - 18 -
                                                                                                                                                                                         11/16/2009 12:26:48

                                                                                       U.S. Department of the Treasury
                                                                                        Financial Management Service
                                                                                   Governmentwide Financial Report System
                                                                                           GF006 - FR Notes Report

     Note: 06              Property, Plant, and Equipment                                                                                Fiscal Year: 2009              Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                       Agency Notes:        Note 06

  Status: Complete                              The accompanying notes are an integral part of these financial statements.            I = Inactive Line

Tab: Other Notes Info.

       Section: A                Section Name: Gross cost for PP&E for each category                                                 Line Attributes: Dollars
                                                                                                                                   Rounding Method: Millions                     Decimal: Zero
Line Status Line Description             NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd       Line Item Changes
 1              Buildings,              Debit
                structures, and
                facilities (including
                improvement to
                land)
 2              Furniture, fixtures,    Debit                           3                          3                           3                          0
                and equipmen
                (including
                aircraf,ships,
                vessels, small
                boats, and
                vehicles)
 3              Construction in         Debit
                progress
 4              Land and Land           Debit
                Rights
 5              Internal use            Debit                         160                        152                         152                          0
                software
 6              Assets under            Debit
                capital lease
 7              Leasehold               Debit
                improvements
 8              Other property,         Debit
                plant and
                equipment
 9              Total property,         N/A                           163                        155                         155                          0
                plant and
                equipment




                                                                                                          - 19 -
                                                                                                                                                                                           11/16/2009 12:26:48

                                                                                        U.S. Department of the Treasury
                                                                                         Financial Management Service
                                                                                    Governmentwide Financial Report System
                                                                                            GF006 - FR Notes Report

     Note: 06             Property, Plant, and Equipment                                                                                   Fiscal Year: 2009              Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                          Agency Notes:        Note 06

  Status: Complete                               The accompanying notes are an integral part of these financial statements.             I = Inactive Line


       Section: B               Section Name: Accumulated Depreciation/Amortization                                                    Line Attributes: Dollars
                                                                                                                                     Rounding Method: Millions                     Decimal: Zero
Line Status Line Description             NB        2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd        Line Item Changes
 1              Buildings,              Credit
                structures, and
                facilities (including
                improvements to
                land)
 2              Furniture, fixtures,    Credit                           3                          3                            3                          0
                and equipment
                (including aircraft,
                ships, vessels,
                small boats, and
                vehicles)
 3              Internal use            Credit                         122                        100                          100                          0
                software
 4              Assets under            Credit
                capital lease
 5              Leasehold               Credit
                improvements
 6              Other property,         Credit
                plant, and
                equipment
 7              Total accumulated        N/A                         -125                       -103                          -103                          0
                depreciation/amorti
                zation
       Section: C               Section Name: Intragovernmental Capitalized acquisition amounts          No Data Flag: YES             Line Attributes: Dollars
                                                                                                                                     Rounding Method: Millions                     Decimal: Zero
Line Status Line Description             NB        2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd        Line Item Changes
 1              General Services        Debit
                Administration
 2              Department of           Debit
                Defense
 3              Department of the       Debit
                Interior
 4              Department of           Debit
                Justice
 5              National                Debit
                Aeronautics and
                Space
                Administration



                                                                                                           - 20 -
                                                                                                                                                                                     11/16/2009 12:26:48

                                                                                      U.S. Department of the Treasury
                                                                                       Financial Management Service
                                                                                  Governmentwide Financial Report System
                                                                                          GF006 - FR Notes Report

     Note: 06            Property, Plant, and Equipment                                                                                 Fiscal Year: 2009          Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                       Agency Notes:    Note 06

  Status: Complete                             The accompanying notes are an integral part of these financial statements.            I = Inactive Line


       Section: C              Section Name: Intragovernmental Capitalized acquisition amounts          No Data Flag: YES           Line Attributes: Dollars
                                                                                                                                  Rounding Method: Millions                 Decimal: Zero
Line Status Line Description           NB        2009 - SEPTEMBER             2008 - SEPTEMBER                 Previously Rptd     Line Item Changes
 6              All other             Debit
                departments
 7              Total capitalized      N/A
                assets from
                Federal agencies




       Section: D              Section Name: Gain/Loss on Sale/Disposition                              No Data Flag: YES           Line Attributes: Dollars
                                                                                                                                  Rounding Method: User-Defined             Decimal: User-Defined
Line Status Line Description           NB        2009 - SEPTEMBER             2008 - SEPTEMBER                 Previously Rptd     Line Item Changes
 1              Gain/loss on          Credit
                sale/disposition of
                property, plant and
                equipment




Tab: Text Data                           No Data Flag: YES
 Line                Question                                                                                            Answer
 1                   Provide the physical quantity information by category for multiuse heritage assets that are
                     included in the "Line Item Notes" tab of this note (SFFAS No. 16, par 9).
 2                   Disclose any transfer of land where the book value is not known by the receiving entity, if
                     material (SFFAS No. 6, par.72).
 3                   Provide any other relevant information pertaining to this note and any material changes from
                     the prior years' depreciation methods and capitalization thresholds.




                                                                                                           - 21 -
                                                                                                                                                                                   11/16/2009 12:26:48

                                                                                 U.S. Department of the Treasury
                                                                                  Financial Management Service
                                                                             Governmentwide Financial Report System
                                                                                     GF006 - FR Notes Report

     Note: 07          Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115)                   Fiscal Year: 2009               Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                     Agency Notes:      N/A

  Status: Complete                       The accompanying notes are an integral part of these financial statements.             I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                        NB    Account     2009 - SEPTEMBER         2008 - SEPTEMBER
                                                                                Type
Securities and Investments                                               D        A                           0                   0
                                                                             Variance:                        0                   0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description           2009 - SEPTEMBER           2008 - SEPTEMBER                Previously Rptd          Line Item Changes
 1          Fixed/Debt Securities
            (FASB 115 par 6 and
            19): Non-U.S.
            Government Securities
 2          Fixed/Debt Securities
            (FASB 115 par 6 and
            19): Commercial
            Securities
 3          Fixed/Debt Securities
            (FASB 115 par 6 and
            19): Mortgage/asset
            backed Securities
 4          Fixed/Debt Securities
            (FASB 115 par 6 and
            19):Corporate and
            other bonds
 5          Fixed/Debt Securities
            (FASB 115 par 6 and
            19) All:Other fixed/debt
            securities
 6          Equity Securities
            (FASB 115 par 6 and
            19): Common Stocks
 7          Equity Securities
            (FASB 115 par 6 and
            19): Unit Trusts
 8          Equity Securities
            (FASB 115 par 6 and
            19): Other Equity
            Securities
 9          Other
            Total




                                                                                                     - 22 -
                                                                                                                                                                                   11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 07             Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115)                 Fiscal Year: 2009             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    N/A

  Status: Complete                            The accompanying notes are an integral part of these financial statements.         I = Inactive Line

Tab: Other Notes Info.

       Section: A              Section Name: Investment Category - Held-to-Maturity Securities        No Data Flag: YES         Line Attributes: Dollars
                                                                                                                              Rounding Method: Millions                    Decimal: Zero
Line Status Line Description            NB       CY Basis (Costs) D              CY Unamortized           CY Net Investment     PY Basis (Costs) D             PY Unamortized     PY Net Investment
                                                                             Premium/Discount D                                                            Premium/Discount D
 1              Fixed/Debt              N/A
                Securities: Non-
                U.S. Government
                securities
 2              Fixed/Debt              N/A
                Securities: Non-
                U.S. Commercial
                securities
 3              Fixed/Debt              N/A
                Securities:
                Mortgage/asset
                backed securities
 4              Fixed/Debt              N/A
                Securities:
                Corporate and
                other bonds
 5              Fixed/Debt              N/A
                Securities: Other
                fixed/debt securities
 6              Equity Securities:      N/A
                Common stocks
 7              Equity Securities:      N/A
                Unit trusts
 8              Equity Securities:      N/A
                All Other equity
                securities
 9              Other                   N/A
10              Total Held-to-          N/A
                Maturity Securities




                                                                                                        - 23 -
                                                                                                                                                                                     11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 07             Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115)                 Fiscal Year: 2009             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    N/A

  Status: Complete                            The accompanying notes are an integral part of these financial statements.         I = Inactive Line


       Section: B              Section Name: Investment Category - Available-for-Sale Securities      No Data Flag: YES         Line Attributes: Dollars
                                                                                                                              Rounding Method: Millions                      Decimal: Zero
Line Status Line Description            NB       CY Basis (Costs) D       CY Unrealized Gain/Loss           CY Market Value     PY Basis (Costs) D      PY Unrealized Gain/Loss       PY Market Value
                                                                                               D                                                                             D
 1              Fixed/Debt              N/A
                Securities: Non-US
                Government
                securities
 2              Fixed/Debt              N/A
                Securities:
                Commercial
                securities
 3              Fixed/Debt              N/A
                Securities:
                Mortgage/asset
                backed securities
 4              Fixed/Debt              N/A
                Securities:
                Corporate and
                other bonds
 5              Fixed/Debt              N/A
                Securities: All other
                fixed/debt securities
 6              Equity Securities:      N/A
                Common stocks
 7              Equity Securities:      N/A
                Common stocks
 8              Equity Securities:      N/A
                All other equity
                securities
 9              Other                   N/A
10              Total Available-        N/A
                for-Sale Securities




                                                                                                        - 24 -
                                                                                                                                                                                     11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 07             Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115)                 Fiscal Year: 2009             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    N/A

  Status: Complete                            The accompanying notes are an integral part of these financial statements.         I = Inactive Line


       Section: C               Section Name: Investment Category - Trading Securities                No Data Flag: YES         Line Attributes: Dollars
                                                                                                                              Rounding Method: Millions                      Decimal: Zero
Line Status Line Description            NB       CY Basis (Costs) D       CY Unrealized Gain/Loss           CY Market Value     PY Basis (Costs) D      PY Unrealized Gain/Loss       PY Market Value
                                                                                               D                                                                             D
 1              Fixed/Debt              N/A
                Securities: Non-US
                Government
                securities
 2              Fixed/Debt              N/A
                Securities:
                Commercial
                securities
 3              Fixed/Debt              N/A
                Securities:
                Mortgage/asset
                backed securities
 4              Fixed/Debt              N/A
                Securities:
                Corporate and
                other bonds
 5              Fixed/Debt              N/A
                Securities: All other
                fixed/debt securities
 6              Equity Securities:      N/A
                Common stocks
 7              Equity Securities:      N/A
                Unit trusts
 8              Equity Securities:      N/A
                All other equity
                securities
 9              Other                   N/A
10              Total Trading           N/A
                Securities




                                                                                                        - 25 -
                                                                                                                                                                             11/16/2009 12:26:48

                                                                                      U.S. Department of the Treasury
                                                                                       Financial Management Service
                                                                                  Governmentwide Financial Report System
                                                                                          GF006 - FR Notes Report

     Note: 07             Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115)                  Fiscal Year: 2009      Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                    Agency Notes:    N/A

  Status: Complete                             The accompanying notes are an integral part of these financial statements.         I = Inactive Line


       Section: D              Section Name: Other Information (FASB 115, pars. 21a, 21c, 21d,         No Data Flag: YES         Line Attributes: Dollars
                                             21e, and 22)                                                                      Rounding Method: Millions             Decimal: Zero
Line Status Line Description           NB        2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd      Line Item Change
 1              Proceeds from         Debit
                sales of available-
                for-sale securities
 2              Gross realized        Debit
                gains (included in
                earnings) from
                sales of available-
                for-sale securities
 3              Gross realized        Credit
                losses (included in
                earnings) from
                sales of available-
                for-sale securities
 4              Gross gains           Debit
                included in
                earnings from s
                from transfers of
                securities from
                available-for-sale
                into trading
 5              Gross losses          Credit
                included in
                earnings from s
                from transfers of
                securities from
                available-for-sale
                into trading
 6              Net unrealized        Debit
                holding gain on
                available-for-sale
                securities included
                in accumulated
                other
                comprehensive
                income
 7              Net unrealized        Credit
                holding loss on
                available-for-sale
                securities included
                in accumulated
                other
                comprehensive


                                                                                                         - 26 -
                                                                                                                                                                                  11/16/2009 12:26:48

                                                                                       U.S. Department of the Treasury
                                                                                        Financial Management Service
                                                                                   Governmentwide Financial Report System
                                                                                           GF006 - FR Notes Report

     Note: 07            Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115)                        Fiscal Year: 2009      Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                          Agency Notes:    N/A

  Status: Complete                          The accompanying notes are an integral part of these financial statements.                 I = Inactive Line


       Section: D            Section Name: Other Information (FASB 115, pars. 21a, 21c, 21d,              No Data Flag: YES           Line Attributes: Dollars
                                           21e, and 22)                                                                             Rounding Method: Millions             Decimal: Zero
Line Status Line Description         NB       2009 - SEPTEMBER                2008 - SEPTEMBER                   Previously Rptd       Line Item Change
                income
 8          Amount of               Debit
            gains/losses
            reclassified out of
            accumulated other
            comprehensive
            income into
            earnings for the
            period
 9          Portion of trading      Debit
            gains/losses that
            relates to trading
            securities still held
            at the reporting
            date
10          Net carrying            Debit
            amount of
            sold/transferred
            held-to-maturity
            securities
11          Net gain/loss in        Debit
            accum. other
            comp. income for
            any derivative that
            hedged the
            forecasted
            acquisition of HTM
            security
Tab: Text Data                         No Data Flag: YES
 Line               Question                                                                                               Answer
 1                  Provide a description of the amounts reported on the "Line Item Notes" tab for lines 5, 8 and
                    9.
 2                  Provide a description of the amounts reported on the "Other Notes Infor" tab for lines 5, 8
                    and 9 in Sections A through C.
 3                  Provide the basis on which the cost of a security sold or the amount reclassified out of
                    accumulated other comprehensive income into earnings was determined (FASB 115 par
                    21b).
 4                  Provide the circumstances leading to the decision to sell or transfer the security for held-to-
                    maturity securities (FASB 115 par 22).
 5                  Provide any other relevant information pertaining to this note.



                                                                                                             - 27 -
                                                                                                                                                                                                      11/16/2009 12:26:48

                                                                                        U.S. Department of the Treasury
                                                                                         Financial Management Service
                                                                                    Governmentwide Financial Report System
                                                                                            GF006 - FR Notes Report

     Note: 08            Other Assets                                                                                                          Fiscal Year: 2009                Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                               Agency Notes:        Note 08

  Status: Complete                          The accompanying notes are an integral part of these financial statements.                      I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                               NB    Account      2009 - SEPTEMBER           2008 - SEPTEMBER
                                                                                       Type
Other Assets                                                                   D         A                             546                   37
                                                                                    Variance:                            0                    0            Rounding Method: Millions             Decimal: Zero
Line Status Line Description             2009 - SEPTEMBER               2008 - SEPTEMBER                   Previously Rptd             Line Item Changes
 1             Advances and
               prepayments
 2             Regulatory Assets
 3             Other Assets                                      546                             37                             37                              0
               Total                                             546                             37                             37                              0
Threshold

 Line Description                                                  Question                                                                 Answer
 Line Item Notes - Other Assets (2009 - SEPTEMBER)                 Please provide explanations for any amounts that have                    The increase is due to an increase in in-process invoices for FFEL interest
                                                                   changed by 10% or more and or greater than 500,000 between               benefits and special allowance payments to lenders, and payments made to
                                                                   the current fiscal year and prior fiscal year. (Unaudited)               grant recipients in advance of their expenditures.


Tab: Text Data                          No Data Flag: YES
 Line                Question                                                                                                 Answer
 1                   Provide a description of advances and prepayments on the "Line Item Notes" tab for line 1.
 2                   Provide a description and related amounts for balances that exceed $1 billion in the line titled
                     "Other Assets" on the "Line Item Notes" tab.
 3                   Provide any other relevant information pertaining to this note.




                                                                                                              - 28 -
                                                                                                                                                                                          11/16/2009 12:26:48

                                                                                 U.S. Department of the Treasury
                                                                                  Financial Management Service
                                                                             Governmentwide Financial Report System
                                                                                     GF006 - FR Notes Report

     Note: 09          Accounts Payable                                                                                            Fiscal Year: 2009                Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                     Agency Notes:        Note 09

  Status: Complete                        The accompanying notes are an integral part of these financial statements.            I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                        NB    Account     2009 - SEPTEMBER       2008 - SEPTEMBER
                                                                                Type
Accounts Payable                                                         C        L                     1,919                  1,296
                                                                             Variance:                      0                      0           Rounding Method: Millions             Decimal: Zero
Line Status Line Description         2009 - SEPTEMBER             2008 - SEPTEMBER                Previously Rptd          Line Item Changes
 1          Accounts Payable                              1,919                       1,296                       1,296                             0
            Total                                         1,919                       1,296                       1,296                             0
Threshold

 Line Description                                             Question                                                          Answer
 Line Item Notes - Accounts Payable (2009 - SEPTEMBER)        Please provide explanations for any amounts that have             The change is primarily due to an increase of in-transit disbursements for
                                                              changed by 10% or more and or greater than 500,000 between        FFEL interest benefits, defaulted claim payments, grants, and Direct Loans.
                                                              the current fiscal year and prior fiscal year. (Unaudited)




                                                                                                    - 29 -
                                                                                                                                                                                   11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 10B          Treasury securities held by the Government trust, revolving, and special funds                             Fiscal Year: 2009           Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                    Agency Notes:    N/A

  Status: Complete                         The accompanying notes are an integral part of these financial statements.           I = Inactive Line

Tab: Other Notes Info.

       Section: A            Section Name: Investments in Federal Debt securities                        No Data Flag: YES     Line Attributes: Dollars
                                                                                                                             Rounding Method: User-Defined                Decimal: User-Defined
Line Status Line Description         NB        CY Par value of the                 CY Unamortized CY Unamortized premium       CY Net Investment          PY Par Value of the PY Unamortized discount
                                                   investment D                       Discount C                       D                                      investment D                         C
23                                  N/A
24                                  N/A
25                                  N/A
26             All other programs   N/A
               and funds
27             Total                N/A

Line Status Line Description         NB            PY Unamortized             PY Net Investment
                                                      premium D
23                                   N/A
24                                   N/A
25                                   N/A
26             All other programs    N/A
               and funds
27             Total                 N/A
       Section: B            Section Name: Fiduciary Funds - Tresury Securities Held by Deposit          No Data Flag: YES     Line Attributes: Dollars
                                           Funds with Fiduciary - Activity                                                   Rounding Method: Millions                    Decimal: Zero
Line Status Line Description         NB        CY Par value of the       CY Unamortized discount CY Unamortized premium        CY Net Investment
                                                   investment D                               C                       D
 1                                  N/A
 2                                  N/A
 3                                  N/A
 4                                  N/A
 5                                  N/A
 6                                  N/A
 7                                  N/A
 8                                  N/A
 9                                  N/A
10                                  N/A
11                                  N/A
12                                  N/A



                                                                                                           - 30 -
                                                                                                                                                                        11/16/2009 12:26:48

                                                                                  U.S. Department of the Treasury
                                                                                   Financial Management Service
                                                                              Governmentwide Financial Report System
                                                                                      GF006 - FR Notes Report

     Note: 10B       Treasury securities held by the Government trust, revolving, and special funds                             Fiscal Year: 2009      Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                    Agency Notes:    N/A

  Status: Complete                      The accompanying notes are an integral part of these financial statements.           I = Inactive Line


       Section: B         Section Name: Fiduciary Funds - Tresury Securities Held by Deposit          No Data Flag: YES     Line Attributes: Dollars
                                        Funds with Fiduciary - Activity                                                   Rounding Method: Millions             Decimal: Zero
Line Status Line Description      NB        CY Par value of the       CY Unamortized discount CY Unamortized premium        CY Net Investment
                                                investment D                               C                       D
13                               N/A
14                               N/A
15                               N/A




       Section: C         Section Name: Fiducuiary Funds-Treasury Securities Held by All              No Data Flag: YES     Line Attributes: Dollars
                                        Other Agency Funds with Fiduciary Activity                                        Rounding Method: Millions             Decimal: Zero
Line Status Line Description      NB        CY Par value of the       CY Unamortized discount CY Unamortized premium        CY Net Investment
                                                investment D                               C                       D
 1                               N/A
 2                               N/A
 3                               N/A
 4                               N/A
 5                               N/A
 6                               N/A
 7                               N/A
 8                               N/A
 9                               N/A
10                               N/A
11                               N/A
12                               N/A
13                               N/A
14                               N/A
15                               N/A




                                                                                                        - 31 -
                                                                                                                                                                               11/16/2009 12:26:48

                                                                                  U.S. Department of the Treasury
                                                                                   Financial Management Service
                                                                              Governmentwide Financial Report System
                                                                                      GF006 - FR Notes Report

     Note: 10B       Treasury securities held by the Government trust, revolving, and special funds                            Fiscal Year: 2009           Period: SEPTEMBER
  Entity: 9100       Department of Education                                                                                   Agency Notes:    N/A

  Status: Complete                      The accompanying notes are an integral part of these financial statements.          I = Inactive Line


      Section: D          Section Name: Tresury Secrities Held be Governmnet Trust Funds,             No Data Flag: YES     Line Attributes: Dollars
                                        Revolving Funds, and Special Funds (to be                                         Rounding Method: User-Defined               Decimal: User-Defined
                                        completed only by Treasury)
Line Status Line Description      NB        CY Par value of the                 CY Unamortized CY Unamortized premium      CY Net Investment          PY Par Value of the PY Unamortized Discount
                                                investment D                       Discount C                       D                                     investment D                         C
26           Total               N/A

Line Status Line Description      NB            PY Unamortized             PY Net Investment
                                                   premium D
26           Total                N/A




                                                                                                        - 32 -
                                                                                                                                                                                  11/16/2009 12:26:48

                                                                                U.S. Department of the Treasury
                                                                                 Financial Management Service
                                                                            Governmentwide Financial Report System
                                                                                    GF006 - FR Notes Report

     Note: 11          Federal Employee and Veteran Benefits Payable                                                              Fiscal Year: 2009               Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                    Agency Notes:        Note 11

  Status: Complete                      The accompanying notes are an integral part of these financial statements.             I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                       NB    Account    2009 - SEPTEMBER        2008 - SEPTEMBER
                                                                               Type
Federal Employee and Veteran Benefits Payable                          C         L                         16                   16
                                                                            Variance:                       0                    0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description         2009 - SEPTEMBER            2008 - SEPTEMBER               Previously Rptd           Line Item Changes
 1          Pension and accrued
            benefits
 2          Post-retirement health
            and accrued benefits
 3          Veteran's
            compensation and
            burial benefits
 4          Life Insurance and
            accrued benefits
 5          FECA Benefits                                   16                          16                           16                            0
 6          Liability for other
            retirement and
            postemployment
            benefits
            Total                                           16                          16                           16                            0




                                                                                                  - 33 -
                                                                                                                                                                                   11/16/2009 12:26:48

                                                                                        U.S. Department of the Treasury
                                                                                         Financial Management Service
                                                                                    Governmentwide Financial Report System
                                                                                            GF006 - FR Notes Report

     Note: 11             Federal Employee and Veteran Benefits Payable                                                                Fiscal Year: 2009          Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                      Agency Notes:    Note 11

  Status: Complete                               The accompanying notes are an integral part of these financial statements.         I = Inactive Line

Tab: Other Notes Info.

       Section: A               Section Name: Pension and Accrued Benefits Liability-To be               No Data Flag: YES         Line Attributes: Dollars
                                              completed for the amount entered for pension and                                   Rounding Method: Millions                 Decimal: Zero
                                              accrued benefits in the "Line Item Notes" tab
Line Status Line Description             NB        2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Pension and             Credit
                accrued benefits
                liability- beginning
                of period
 2              Prior-period            Credit
                adjustments(not
                restated)
 3              Prior (and past)        Credit
                service costs from
                plan amendments
                (or the initiation of
                a new plan) during
                the period
 4              Assumption              Credit
                Change Liability
 5              Normal Costs            Credit
                (SFFAS No. 5, par.
                72)
 6              Interest on pension     Credit
                liability during the
                period
 7              Prior (and past)        Credit
                service cost (from
                the initiation of a
                new plan)
 8              Actuarial               Credit
                (gains)/losses
 9              Total pension            N/A
                expense (SFFAS
                No. 5, par.72)
10              Less Benefits Paid      Debit
11              Pension and              N/A
                Accrued Benefits
                Liability-end of
                period




                                                                                                           - 34 -
                                                                                                                                                                                   11/16/2009 12:26:48

                                                                                        U.S. Department of the Treasury
                                                                                         Financial Management Service
                                                                                    Governmentwide Financial Report System
                                                                                            GF006 - FR Notes Report

     Note: 11              Federal Employee and Veteran Benefits Payable                                                               Fiscal Year: 2009          Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                     Agency Notes:    Note 11

  Status: Complete                               The accompanying notes are an integral part of these financial statements.         I = Inactive Line


       Section: B                Section Name: Pension Liability Long-Term Significant Assumptions       No Data Flag: YES         Line Attributes: Percent
                                               Used in 2008 and 2007 Valuation (SFFAS No. 5,
                                               par.67)
Line Status Line Description             NB        2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Rate of Interest         N/A
 2              Rate of inflation        N/A
 3              Projected salary         N/A
                increases




       Section: C                Section Name: Postretirement Health and Accrued Benefits                No Data Flag: YES         Line Attributes: Dollars
                                                                                                                                 Rounding Method: Millions                 Decimal: Zero
Line Status Line Description             NB        2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Postretirement          Credit
                health and accrued
                benefits liability-
                beginning of period
                (SFFAS No. 5,
                par.88)
 2              Prior-period            Credit
                adjustments (not
                restated)
 3              Prior (and past)        Credit
                service costs from
                plan amendments
                (or the initiation of
                a new plan) during
                the period
 4              Normal costs            Credit
 5              Interest on liability   Credit
 6              Change in medical       Credit
                cost trend rate
                assumption
                (gains)/losses
 7              Other actuarial         Credit
                (gains)/losses
 8              Total                    N/A
                postretirement
                health benefits



                                                                                                           - 35 -
                                                                                                                                                                                 11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 11             Federal Employee and Veteran Benefits Payable                                                             Fiscal Year: 2009          Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    Note 11

  Status: Complete                            The accompanying notes are an integral part of these financial statements.         I = Inactive Line


       Section: C              Section Name: Postretirement Health and Accrued Benefits               No Data Flag: YES         Line Attributes: Dollars
                                                                                                                              Rounding Method: Millions                 Decimal: Zero
Line Status Line Description           NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
                expense
 9              Less claims paid      Debit
10              Postretirement        N/A
                health and accrued
                benefits liability-
                end of period




       Section: D              Section Name: Postretirement Health Liability Significant              No Data Flag: YES         Line Attributes: Percent
                                             Assumptions Used in Determining the 2008 and 2007
                                             Valuation
Line Status Line Description           NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Rate of Interest      N/A
 2              Ultimate rate of      N/A
                health care cost
                trend
 3              Single equivalent     N/A
                rate of health care
                cost trend


       Section: G              Section Name: Other                                                    No Data Flag: YES         Line Attributes: Dollars
                                                                                                                              Rounding Method: User-Defined             Decimal: User-Defined
Line Status Line Description           NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Non-marketable      Debit
                Treasury securities
                held by Thrift
                Savings Plan (TSP)
                Fund
 2              Total assets of     Debit
                pension (SFFAS
                No.5, par. 68)
 3              Market value of     Debit
                investments in
                market-based and
                marketable
                securities included



                                                                                                        - 36 -
                                                                                                                                                                                  11/16/2009 12:26:48

                                                                                      U.S. Department of the Treasury
                                                                                       Financial Management Service
                                                                                  Governmentwide Financial Report System
                                                                                          GF006 - FR Notes Report

     Note: 11               Federal Employee and Veteran Benefits Payable                                                           Fiscal Year: 2009           Period: SEPTEMBER
     Entity: 9100           Department of Education                                                                                 Agency Notes:     Note 11

  Status: Complete                             The accompanying notes are an integral part of these financial statements.        I = Inactive Line


       Section: G               Section Name: Other                                                    No Data Flag: YES         Line Attributes: Dollars
                                                                                                                               Rounding Method: User-Defined             Decimal: User-Defined
Line Status Line Description            NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
                in line 2
 4              Total assets of        Debit
                other retirement
                benefit plans
                (SFFAS No. 5, par.
                85)
 5              Market value of        Debit
                investments in
                market-based and
                marketable
                securities included
                in line 4 (SFFAS
                no. 5, par.85)
       Section: O               Section Name: Number of Pension Plans Administrated                    No Data Flag: YES         Line Attributes: Units


Line Status Line Description            NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1        I     Pension plans          N/A
                administrated




                                                                                                         - 37 -
                                                                                                                                                                             11/16/2009 12:26:48

                                                                                      U.S. Department of the Treasury
                                                                                       Financial Management Service
                                                                                  Governmentwide Financial Report System
                                                                                          GF006 - FR Notes Report

     Note: 11          Federal Employee and Veteran Benefits Payable                                                              Fiscal Year: 2009          Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                    Agency Notes:    Note 11

 Status: Complete                         The accompanying notes are an integral part of these financial statements.           I = Inactive Line

Tab: Text Data                        No Data Flag: YES
Line               Question                                                                                           Answer
1                  Provide the following information as it relates to the future policy benefits for noncancelable
                   and renewable life insurance (other than whole life) (SFFAS No. 5, par. 110, table 9): a
                   description of each component of the liability for future policy benefits, an explanation of its
                   projected use, and any other potential uses.
2                  For pension plans that differ from the Civil Service Retirement System (CSRS), the Federal
                   Employee Retirement System (FERS), and the Military Retirement System (MRS), describe
                   how and why the assumptions differ from one of those plans (SFFAS No. 5, par. 67).
3                  Provide the long-term projection of the significant assumptions used in determining pension
                   liability and the related expense (example of assumptions: actuarial, economic, interest rate,
                   and trend).
4                  Provide the long-term projection of the significant assumptions used in determining the
                   postretirement health benefits liability and the related expense (example of assumptions:
                   actuarial, economic, interest rate, and trend).
7                  Provide the sources(s) of the information entered for "Line Item Notes" tab numbers 4, 5,
                   and 6.
8                  Provide the sources(s) for the components of pension expense entered in Section A.
9                  Provide the source(s) for the interest rate entered in Section B.
10                 Provide the source(s) for the components of postretirement expense entered in Section C.
11                 Provide the source(s) for the interest rate entered in Section D.
14                 Provide any other relevant information pertaining to this note.




                                                                                                             - 38 -
                                                                                                                                                                                  11/16/2009 12:26:48

                                                                                  U.S. Department of the Treasury
                                                                                   Financial Management Service
                                                                              Governmentwide Financial Report System
                                                                                      GF006 - FR Notes Report

      Note: 12          Environmental and Disposal Liabilities                                                                    Fiscal Year: 2009               Period: SEPTEMBER
   Entity: 9100         Department of Education                                                                                   Agency Notes:      N/A

  Status: Complete                         The accompanying notes are an integral part of these financial statements.          I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                         NB    Account     2009 - SEPTEMBER       2008 - SEPTEMBER
                                                                                 Type
Environmental and Disposal Liabilities                                    C        L                          0                  0
                                                                              Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description             2009 - SEPTEMBER          2008 - SEPTEMBER                Previously Rptd        Line Item Changes
  9
 10
 11
 12
 13
 14          Other Environmental
             and Disposal Liabilities
             Total




                                                                                                     - 39 -
                                                                                                                                                                                         11/16/2009 12:26:48

                                                                                         U.S. Department of the Treasury
                                                                                          Financial Management Service
                                                                                     Governmentwide Financial Report System
                                                                                             GF006 - FR Notes Report

     Note: 12            Environmental and Disposal Liabilities                                                                             Fiscal Year: 2009          Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                            Agency Notes:    N/A

  Status: Complete                           The accompanying notes are an integral part of these financial statements.                  I = Inactive Line

Tab: Other Notes Info.

       Section: A              Section Name: Other Related Information                                        No Data Flag: YES          Line Attributes: Dollars
                                                                                                                                       Rounding Method: User-Defined            Decimal: User-Defined
Line Status Line Description          NB       2009 - SEPTEMBER                 2008 - SEPTEMBER                    Previously Rptd     Line Item Changes
 1              Unrecognized         Debit
                portion of
                estimated total
                cleanup costs
                associated with
                general property,
                plant, and
                equipment


Tab: Text Data                          No Data Flag: YES
 Line                Question                                                                                                 Answer
 1                   List the applicable laws and regulations covering cleanup requirements
 2                   Provide a description of the type of environmental and disposal liabilties identified.
 3                   Provide any other relevant information pertaining to this note.




                                                                                                                - 40 -
                                                                                                                                                                               11/16/2009 12:26:48

                                                                               U.S. Department of the Treasury
                                                                                Financial Management Service
                                                                           Governmentwide Financial Report System
                                                                                   GF006 - FR Notes Report

     Note: 13          Benefits Due and Payable                                                                                Fiscal Year: 2009               Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                 Agency Notes:      N/A

  Status: Complete                      The accompanying notes are an integral part of these financial statements.          I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                      NB    Account     2009 - SEPTEMBER       2008 - SEPTEMBER
                                                                              Type
Benefits Due and Payable                                               C        L                          0                  0
                                                                           Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description         2009 - SEPTEMBER           2008 - SEPTEMBER                Previously Rptd        Line Item Changes
 9          Other Entitlement
            BenefitsDue and
            Payable
            Total




                                                                                                  - 41 -
                                                                                                                                                                                              11/16/2009 12:26:48

                                                                                        U.S. Department of the Treasury
                                                                                         Financial Management Service
                                                                                    Governmentwide Financial Report System
                                                                                            GF006 - FR Notes Report

     Note: 14            Insurance Programs Other Than Veterans Affairs                                                                       Fiscal Year: 2009               Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                             Agency Notes:      N/A

  Status: Complete                           The accompanying notes are an integral part of these financial statements.                    I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                               NB    Account     2009 - SEPTEMBER         2008 - SEPTEMBER
                                                                                       Type
Insurance Programs                                                             C         L                            0                      0
                                                                                    Variance:                         0                      0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description              2009 - SEPTEMBER              2008 - SEPTEMBER                   Previously Rptd            Line Item Changes
 6              Other Insurance
                Programs
 7
 8
              Total

Tab: Text Data                           No Data Flag: YES
 Line                 Question                                                                                               Answer
 1                    Provide a description for the type of insurance programs identified in the "Line Item Notes"
                      tab.
 2                    Provide the name, description, and the related amounts of the insurance programs entered
                      on the line titled, "Other insurance programs" in the "Line Item Notes" tab.
 3                    Provide any other relevant information pertaining to this note.




                                                                                                             - 42 -
                                                                                                                                                                                           11/16/2009 12:26:48

                                                                                        U.S. Department of the Treasury
                                                                                         Financial Management Service
                                                                                    Governmentwide Financial Report System
                                                                                            GF006 - FR Notes Report

      Note: 15             Other Liabilities                                                                                               Fiscal Year: 2009               Period: SEPTEMBER
   Entity: 9100            Department of Education                                                                                         Agency Notes:        Note 15

  Status: Complete                               The accompanying notes are an integral part of these financial statements.             I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                               NB    Account     2009 - SEPTEMBER       2008 - SEPTEMBER
                                                                                       Type
Other Liabilities                                                               C        L                     3,536                   2,374
                                                                                    Variance:                      0                       0           Rounding Method: Millions       Decimal: Zero
Line Status Line Description                   2009 - SEPTEMBER           2008 - SEPTEMBER               Previously Rptd           Line Item Changes
 1               Deferred revenue                                  467                          42                            42                            0
 2               Accrued wages and                                  21                          19                            19                            0
                 benefits
 4               Other debt
 6               Legal and other
                 contingencies
 7               Grant payments due to                            2,962                      2,245                       2,245                              0
                 State and local
                 governments and
                 others
 8               Other employee and
                 actuarial liabilities
 10              D.C. pension liability
 11              Custodial liabilities
 12              Accrued annual leave                               34                          33                            33                            0
 14              Advances and
                 prepayments
 15              Farm and other
                 subsidies
 16              Deposit funds                                      52                          35                            35                            0
 17              Bonneville Power
                 Administration Non-
                 Federal power projects
                 and capital lease
                 liabilities and disposal
                 liabilities
 18
 19
 20
 21           Other Liabilities
              Total                                               3,536                       2,374                        2,374                            0




                                                                                                           - 43 -
                                                                                                                                                                                                        11/16/2009 12:26:48

                                                                                       U.S. Department of the Treasury
                                                                                        Financial Management Service
                                                                                   Governmentwide Financial Report System
                                                                                           GF006 - FR Notes Report

     Note: 15           Other Liabilities                                                                                                 Fiscal Year: 2009                    Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                            Agency Notes:        Note 15

 Status: Complete                           The accompanying notes are an integral part of these financial statements.                 I = Inactive Line



Threshold

Line Description                                                  Question                                                             Answer
Line Item Notes - Deferred revenue (2009 - SEPTEMBER)             Please provide explanations for any amounts that have                The increase is primarily due to in process excess interest recapture
                                                                  changed by 10% or more and or greater than 500,000 between           (negative SAP) in the FFEL Program.
                                                                  the current fiscal year and prior fiscal year. (Unaudited)
Line Item Notes - Grant payments due to State and local           Please provide explanations for any amounts that have                The increase is the result of additional grant funding made available by the
governments and others (2009 - SEPTEMBER)                         changed by 10% or more and or greater than 500,000 between           American Recovery and Reinvestment Act of 2009.
                                                                  the current fiscal year and prior fiscal year. (Unaudited)
Line Item Notes - Deposit funds (2009 - SEPTEMBER)                Please provide explanations for any amounts that have                The increase is primarily due to funds received from Letters of Credit and
                                                                  changed by 10% or more and or greater than 500,000 between           overpayments on receivables from non-federal sources.
                                                                  the current fiscal year and prior fiscal year. (Unaudited)
Tab: Text Data
 Line               Question                                                                                           Answer
 1                  Provide more details on the liabilities reported on the "Line Item Notes" tab for each line 1      Other liabilities consists of liabilities not recognized in specific categories, including (but
                    through 21 by including a description of the significant related amounts and providing the         is not limited to) liabilities related to grants payable, advances and prepayments, and
                    page number of the agency's financial report where the amount is identified.                       accrued liabilities related to ongoing continuous expenses such as Federal employee
                                                                                                                       salaries and accrued employee annual leave.
 2                  Provide a description and related amounts for balances that exceed $50 million on the line
                    titled, "Other liabilities," and provide the page number of the agency's financial report where
                    the amount is identified.
 3                  Provide any other relevant information pertaining to this note.




                                                                                                              - 44 -
                                                                                                                                                                                  11/16/2009 12:26:48

                                                                                       U.S. Department of the Treasury
                                                                                        Financial Management Service
                                                                                   Governmentwide Financial Report System
                                                                                           GF006 - FR Notes Report

     Note: 17             Prior-Period Adjustments                                                                                   Fiscal Year: 2009          Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                    Agency Notes:    N/A

  Status: Complete                              The accompanying notes are an integral part of these financial statements.        I = Inactive Line

Tab: Other Notes Info.

       Section: A              Section Name: Non- Federal Prior Period Adjustments (Not                 No Data Flag: YES         Line Attributes: Dollars
                                             Restated)                                                                          Rounding Method: User-Defined            Decimal: User-Defined
Line Status Line Description            NB        2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Amounts that           Credit
                adjusted beginning
                net position - for
                change in
                accounting
                principles
 2              Amounts that           Credit
                adjusted beginning
                net position - for
                correction of errors
       Section: B              Section Name: Restated Prior-Period Adjustments - Corrections of         No Data Flag: YES         Line Attributes: Dollars
                                             Errors for the Prior Year                                                          Rounding Method: User-Defined            Decimal: User-Defined
Line Status Line Description            NB            Credit Amount C               Debit Amount D
 1                                      N/A
 2                                      N/A
 3                                      N/A
 4                                      N/A
 5                                      N/A
 6                                      N/A
 7                                      N/A
 8                                      N/A
 9                                      N/A
10                                      N/A




                                                                                                          - 45 -
                                                                                                                                                                       11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

    Note: 17          Prior-Period Adjustments                                                                                  Fiscal Year: 2009      Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                  Agency Notes:    N/A

 Status: Complete                         The accompanying notes are an integral part of these financial statements.         I = Inactive Line

Tab: Text Data                        No Data Flag: YES
Line               Question                                                                                         Answer
1                  Describe the adjustments to current year or prior-year beginning net position that resulted
                   from changes in accounting principles.
2                  Describe the adjustments to the prior-year beginning net position that resulted from
                   correcting errors that occurred in years preceding the prior year.
3                  Describe the restatements to the prior-year that resulted from correcting errors that occurred
                   in the prior year.
4                  Describe any Federal prior-period adjustments.
5                  Provide any other relevant information pertaining to this note. This would include information
                   related to any immaterial errors that occurred in the prior period(s) that were corrected
                   against the current year.




                                                                                                           - 46 -
                                                                                                                                                                                    11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 18              Contingencies (SFFAS Nos. 5 and 12)                                                                       Fiscal Year: 2009           Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                   Agency Notes:    Note 18

  Status: Complete                            The accompanying notes are an integral part of these financial statements.          I = Inactive Line

Tab: Other Notes Info.

       Section: A              Section Name: Insurance Contingencies (Reasonably Possible Only)       No Data Flag: YES          Line Attributes: Dollars
                                                                                                                               Rounding Method: User-Defined               Decimal: User-Defined
Line Status Line Description           NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd      Line Item Changes
 4                                   Credit
 5                                   Credit
 6                                   Credit
 7                                   Credit
 8                                   Credit
 9              Other insurance      Credit
                contingencies
10              Total                 N/A
       Section: B              Section Name: Insurance in force (Sum of Policy Face Value and         No Data Flag: YES          Line Attributes: Dollars
                                             Dividends Paid)                                                                   Rounding Method: User-Defined               Decimal: User-Defined
Line Status Line Description           NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd      Line Item Changes
 3                                   Credit
 4                                   Credit
 5                                   Credit
 6                                   Credit
 7                                   Credit
 8              Other insurance in   Credit
                force
 9              Total                 N/A
       Section: C              Section Name: Civil Litigation, Claims and Assessments                 No Data Flag: YES          Line Attributes: Dollars
                                                                                                                               Rounding Method: User-Defined               Decimal: User-Defined
Line Status Line Description           NB       CYAccrued/Estimated      CY Estimated Range(Low           CY Estimated Range CY Claim amount(Unable       PYAccrued/Estimated PY Estimated Range(Low
                                                          amount                          end)                   (High end)      to determine loss)      amount rued/Estimated                 end)
                                                                                                                                                                     amount
 1              Probable             Credit
 2              Reasonably           Credit
                Possible
Line Status Line Description           NB        PY Estimated Range        PY Claim amunt (unable
                                                         (High end)                to determine)
 1              Probable             Credit
 2              Reasonably           Credit
                Possible


                                                                                                        - 47 -
                                                                                                                                                                                       11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 18              Contingencies (SFFAS Nos. 5 and 12)                                                                        Fiscal Year: 2009             Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                    Agency Notes:     Note 18

  Status: Complete                            The accompanying notes are an integral part of these financial statements.           I = Inactive Line


       Section: D              Section Name: Environmental Litigation, Claims, and Assessments        No Data Flag: YES           Line Attributes: Dollars
                                                                                                                                Rounding Method: User-Defined                 Decimal: User-Defined
Line Status Line Description           NB       CYAccrued/Estimated           CY Estimated Range          CY Estimated Range   CY Claim amunt(unable        PY Accrued/Estimated     PY Estimated Range
                                                          amount                      (Low end)                  (High end)            to determine)                   amount                (Low end)
 1              Probable             Credit
 2              Reasonably           Credit
                Possible
Line Status Line Description           NB        PY Estimated Range      PY Claim amount (unable
                                                      (High Range)                 to determine)
 1              Probable             Credit
 2              Reasonably           Credit
                Possible
       Section: E              Section Name: Other Contingencies                                      No Data Flag: YES           Line Attributes: Dollars
                                                                                                                                Rounding Method: User-Defined                 Decimal: User-Defined
Line Status Line Description           NB              CY Probable        CY Reasonably Possible                 PY Probable   PY Reasonably Possible

 3                                   Credit
 4                                   Credit
 5                                   Credit




       Section: F              Section Name: Other Contingencies                                      No Data Flag: YES           Line Attributes: Dollars
                                                                                                                                Rounding Method: User-Defined                 Decimal: User-Defined
Line Status Line Description           NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd       Line Item Changes
 3        I                          Credit
 4        I                          Credit
 5        I                          Credit




                                                                                                        - 48 -
                                                                                                                                                                                               11/16/2009 12:26:48

                                                                                      U.S. Department of the Treasury
                                                                                       Financial Management Service
                                                                                  Governmentwide Financial Report System
                                                                                          GF006 - FR Notes Report

    Note: 18           Contingencies (SFFAS Nos. 5 and 12)                                                                             Fiscal Year: 2009                 Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                         Agency Notes:      Note 18

 Status: Complete                         The accompanying notes are an integral part of these financial statements.                I = Inactive Line

Tab: Text Data
Line               Question                                                                                          Answer
1                  Describe the risk insurance programs that are in force.
2                  Provide the nature of the isurance contingencies.
3                  Provide the nature of the litigation contingencies, including the range of loss for probable
                   liabilities.
4                  Provide the nature of the litigation contingencies including the range of loss for reasonably     The Department is involved in various lawsuits incidental to its operations. The
                   possible contingencies.                                                                           Treasury Judgment Fund pays judgments resulting from litigation against the
                                                                                                                     Department. In the opinion of management, the ultimate resolution of pending litigation
                                                                                                                     will not have a material effect on the Department's financial position.



5                  Provide the total claim amount for cases assessed as "unable to determine" if significant.
                   Also, provide a statement on whether this materiality affects the financial statements.
6                  Describe the other claims that may derive from treaties or international agreements.
7                  Provide any other relevant information pertaining to this note.




                                                                                                            - 49 -
                                                                                                                                                                                                 11/16/2009 12:26:48

                                                                                        U.S. Department of the Treasury
                                                                                         Financial Management Service
                                                                                    Governmentwide Financial Report System
                                                                                            GF006 - FR Notes Report

     Note: 19              Commitments                                                                                                   Fiscal Year: 2009                Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                       Agency Notes:       Note 19

  Status: Complete                              The accompanying notes are an integral part of these financial statements.            I = Inactive Line

Tab: Other Notes Info.

       Section: A               Section Name: Capital leases-Asset                                        No Data Flag: YES          Line Attributes: Dollars
                                                                                                                                   Rounding Method: User-Defined                       Decimal: User-Defined
Line Status Line Description            NB                CY Federal               CY Non-Federal                     PY Federal       PY Non-Federal
 1              Building               Debit
 2              Land                   Debit
 3              Equipment              Debit
 4              Software license       Debit
 5              Other                  Debit
 6              Accumulated            Credit
                depreciation/amorti
                zation
 7              Net assets under        N/A
                capital leases
       Section: B               Section Name: Capital leases - Liability                                  No Data Flag: YES          Line Attributes: Dollars
                                                                                                                                   Rounding Method: User-Defined                       Decimal: User-Defined
Line Status Line Description            NB                 CY Federal              CY Non-Federal                     PY Federal       PY Non-Federal
 1              Future minimum         Credit
                lease programs
 2              Imputed interest       Debit
 3              Executory costs        Debit
                including any profit
 4              Total capital lease     N/A
                liability


       Section: C               Section Name: Commitments: Operating leases and undelivered                                          Line Attributes: Dollars
                                              orders                                                                               Rounding Method: Millions                           Decimal: Zero
Line Status Line Description            NB                CY Federal               CY Non-Federal                     PY Federal      PY Non-Federal
 1              Operating leases       Credit                           62                                                    66
 2            Undelivered orders Credit                                                        92,035                                               47,211
Threshold
 Line Description                                                   Question                                                          Answer
 Other Notes Info - Undelivered orders (CY Non-Federal)             Please provide explanations for any amounts that have             The increase is the result of additional grant funding made available during
                                                                    changed by 10% or more and or greater than $500,000               FY 2009 by the American Recovery and Reinvestment Act of 2009 that has
                                                                    between the current fiscal year and prior fiscal year.            been obligated but not yet disbursed.
                                                                    (unaudited)



                                                                                                             - 50 -
                                                                                                                                                                                                       11/16/2009 12:26:48

                                                                                         U.S. Department of the Treasury
                                                                                          Financial Management Service
                                                                                     Governmentwide Financial Report System
                                                                                             GF006 - FR Notes Report

     Note: 19              Commitments                                                                                                         Fiscal Year: 2009                 Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                             Agency Notes:      Note 19

  Status: Complete                              The accompanying notes are an integral part of these financial statements.                  I = Inactive Line


       Section: D                Section Name: Other Commitments                                            No Data Flag: YES             Line Attributes: Dollars
                                                                                                                                        Rounding Method: User-Defined                        Decimal: User-Defined
Line Status Line Description            NB                CY Federal                CY Non-Federal                      PY Federal          PY Non-Federal
10                                     Credit
11                                     Credit
12                                     Credit
13                                     Credit
14                                     Credit
15              Total                   N/A


Tab: Text Data
 Line                   Question                                                                                             Answer
 1                      Describe the lessee's leasing arrangements including the basis on which contingent rental            The Department leases office space from the General Services Administration (GSA).
                        payments are determined, the existence and terms of renewal or purchase options,                     The lease contracts with GSA for privately and publicly owned buildings are operating
                        escalation clauses and restrictions imposed by lease agreement.                                      leases. Future lease payments are not accrued as liabilities, but expensed as incurred.




 2                      Provide any other relevant information pertaining to this note. (Reference the Note in the
                        agency's Performance and Accountability Report.)




                                                                                                               - 51 -
                                                                                                                                                                                        11/16/2009 12:26:48

                                                                                U.S. Department of the Treasury
                                                                                 Financial Management Service
                                                                            Governmentwide Financial Report System
                                                                                    GF006 - FR Notes Report

     Note: 20        Dedicated Collections (Excluding Funds Identified as Earmarked and Reported in Note 22 - Earmarked                 Fiscal Year: 2009           Period: SEPTEMBER
                     Funds)
                                                                                                                                        Agency Notes:     N/A
     Entity: 9100    Department of Education
                                                                                                                                     I = Inactive Line
  Status: Complete                     The accompanying notes are an integral part of these financial statements.

Tab: Other Notes Info.

       Section: A         Section Name: Assets - Current Year                                    No Data Flag: YES                  Line Attributes: Dollars
                                                                                                                                  Rounding Method: User-Defined                Decimal: User-Defined
Line Status Line Description     NB            Inv. in Fed debt            Fund balance with        Interest receivable D           Other Fed assets D      Non-Federal assets D             Total assets
                                            securities - net D                  Treasury D
 1        I                      N/A
 2        I                      N/A
 3        I                      N/A
 4        I                      N/A
 5        I                      N/A



       Section: B         Section Name: Assets - Prior year                                      No Data Flag: YES                  Line Attributes: Dollars
                                                                                                                                  Rounding Method: User-Defined                Decimal: User-Defined
Line Status Line Description     NB     Inv. in Fed Debt Sec. -            Fund balance with        Interest receivable D        Other Federal assets D     Non-Federal assets D             Total assets
                                                         net D                  Treasury D
 1                               N/A
 2                               N/A
 3                               N/A
 4                               N/A
 5                               N/A



       Section: C         Section Name: Liabilities - Current Year                               No Data Flag: YES                  Line Attributes: Dollars
                                                                                                                                  Rounding Method: User-Defined                Decimal: User-Defined
Line Status Line Description     NB            Liability due and           Other liabilities C               Total liabilities
                                                      payable to
                                               beneficiaries C
 1        I                      N/A
 2        I                      N/A
 3        I                      N/A
 4        I                      N/A
 5        I                      N/A




                                                                                                    - 52 -
                                                                                                                                                                                         11/16/2009 12:26:48

                                                                                U.S. Department of the Treasury
                                                                                 Financial Management Service
                                                                            Governmentwide Financial Report System
                                                                                    GF006 - FR Notes Report

     Note: 20        Dedicated Collections (Excluding Funds Identified as Earmarked and Reported in Note 22 - Earmarked                 Fiscal Year: 2009             Period: SEPTEMBER
                     Funds)
                                                                                                                                        Agency Notes:    N/A
     Entity: 9100    Department of Education
                                                                                                                                     I = Inactive Line
  Status: Complete                     The accompanying notes are an integral part of these financial statements.


       Section: D         Section Name: Liabilities - Prior Year                                 No Data Flag: YES                  Line Attributes: Dollars
                                                                                                                                  Rounding Method: User-Defined                 Decimal: User-Defined
Line Status Line Description     NB            Liability due and           Other liabilities C               Total liabilities
                                                      payable to
                                               beneficiaries C
 1                               N/A
 2                               N/A
 3                               N/A
 4                               N/A
 5                               N/A


       Section: E         Section Name: Current Year - Revenue, financing, expenses, and         No Data Flag: YES                  Line Attributes: Dollars
                                        other                                                                                     Rounding Method: User-Defined                 Decimal: User-Defined
Line Status Line Description     NB     Beginning net position           Exchange revenue -      Exchange revenue - with         Nonexchange revenue -      Nonexchange revenue -    Other financing sources
                                                             C                   Federal C                  the public C                    Federal C            with the public C                         C
 1        I                      N/A
 2        I                      N/A
 3        I                      N/A
 4        I                      N/A
 5        I                      N/A

Line Status Line Description     NB      Other changes in fund         Program expenses D              Other expenses D            Ending Net Position
                                                   balance C
 1        I                      N/A
 2        I                      N/A
 3        I                      N/A
 4        I                      N/A
 5        I                      N/A




                                                                                                    - 53 -
                                                                                                                                                                                    11/16/2009 12:26:48

                                                                                U.S. Department of the Treasury
                                                                                 Financial Management Service
                                                                            Governmentwide Financial Report System
                                                                                    GF006 - FR Notes Report

     Note: 20        Dedicated Collections (Excluding Funds Identified as Earmarked and Reported in Note 22 - Earmarked            Fiscal Year: 2009             Period: SEPTEMBER
                     Funds)
                                                                                                                                   Agency Notes:    N/A
     Entity: 9100    Department of Education
                                                                                                                                I = Inactive Line
  Status: Complete                     The accompanying notes are an integral part of these financial statements.


       Section: F         Section Name: Prior Year - Revenue, financing, expenses, and           No Data Flag: YES             Line Attributes: Dollars
                                        other                                                                                Rounding Method: User-Defined                 Decimal: User-Defined
Line Status Line Description     NB     Beginning net position           Exchange revenue -     Exchange revenue - with     Nonexchange revenue -      Nonexchange revenue -    Other financing sources
                                                             C                   Federal C                 the public C                Federal C            with the public C                         C
 1                               N/A
 2                               N/A
 3                               N/A
 4                               N/A
 5                               N/A

Line Status Line Description     NB      Other changes in fund         Program expenses D              Other expenses D       Ending net position
                                                   balance C
 1                               N/A
 2                               N/A
 3                               N/A
 4                               N/A
 5                               N/A
       Section: G         Section Name: Other                                                    No Data Flag: YES             Line Attributes: Dollars
                                                                                                                             Rounding Method: User-Defined                 Decimal: User-Defined
Line Status Line Description     NB            PY - Revenues C          PY - Other financing                 PY - Costs D
                                                                                 sources C
 1                               N/A
 2                               N/A
 3                               N/A
 4                               N/A
 5                               N/A




                                                                                                    - 54 -
                                                                                                                                                                                                 11/16/2009 12:26:48

                                                                                        U.S. Department of the Treasury
                                                                                         Financial Management Service
                                                                                    Governmentwide Financial Report System
                                                                                            GF006 - FR Notes Report

     Note: 20           Dedicated Collections (Excluding Funds Identified as Earmarked and Reported in Note 22 - Earmarked                     Fiscal Year: 2009             Period: SEPTEMBER
                        Funds)
                                                                                                                                               Agency Notes:    N/A
     Entity: 9100       Department of Education
                                                                                                                                            I = Inactive Line
  Status: Complete                          The accompanying notes are an integral part of these financial statements.


       Section: H            Section Name: Other                                                            No Data Flag: YES               Line Attributes: Dollars
                                                                                                                                          Rounding Method: User-Defined                 Decimal: User-Defined
Line Status Line Description         NB           CY - Revenues C                CY - Other financing                      CY - Costs D      PY - Revenues C          PY - Other financing           PY - Costs D
                                                                                          sources C                                                                            sources C
 1        I                          N/A
 2        I                          N/A
 3        I                          N/A
 4        I                          N/A
 5        I                          N/A


Tab: Text Data                         No Data Flag: YES
 Line               Question                                                                                                     Answer
 1                  State the legal authority for the administrative entity of each fund to use the collections
                    based on SFFAS No. 7, par. 85.
 2                  Provide any other relevant information pertaining to this note.




                                                                                                                  - 55 -
                                                                                                                                                                                        11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 22            Earmarked Funds                                                                                                Fiscal Year: 2009            Period: SEPTEMBER
  Entity: 9100           Department of Education                                                                                        Agency Notes:    Note 22

  Status: Complete                          The accompanying notes are an integral part of these financial statements.               I = Inactive Line

Tab: Other Notes Info.

      Section: A              Section Name: Assets - Current Year                                                                   Line Attributes: Dollars
                                                                                                                                  Rounding Method: Millions                     Decimal: Zero
Line Status Line Description          NB           Cash and other             Fund balance with             Inv in U. S. Treas.   Interest Receivable D Other Federal assets (with     Other Federal assets
                                                monetary assets D                  Treasury D         Sec.(net of prem. & disc)                              earmarked funds) D       (with non-earmarked
                                                                                                                             D                                                                   funds) D
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                                                         8
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                                                         8

Line Status Line Description          NB         Other non-Federal                 Total assets
                                                         assets D
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                                                         8
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                                                         8




                                                                                                         - 56 -
                                                                                                                                                                                       11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 22            Earmarked Funds                                                                                               Fiscal Year: 2009            Period: SEPTEMBER
  Entity: 9100           Department of Education                                                                                       Agency Notes:    Note 22

  Status: Complete                          The accompanying notes are an integral part of these financial statements.              I = Inactive Line


      Section: B              Section Name: Assets - Prior Year                                                                    Line Attributes: Dollars
                                                                                                                                 Rounding Method: Millions                     Decimal: Zero
Line Status Line Description          NB           Cash and other             Fund balance with       Inv. in U.S. Treas. Sec.   Interest Receivable D Other Federal assets (with     Other Federal assets
                                                monetary assets D                  Treasury D       (net of prem. & disc.) D                                earmarked funds) D       (with non-earmarked
                                                                                                                                                                                                funds) D
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                                                     17
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                                                     17

Line Status Line Description          NB         Other non-Federal                 Total assets
                                                         assets D
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                                                     17
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                                                     17




                                                                                                      - 57 -
                                                                                                                                                                                                  11/16/2009 12:26:48

                                                                                    U.S. Department of the Treasury
                                                                                     Financial Management Service
                                                                                Governmentwide Financial Report System
                                                                                        GF006 - FR Notes Report

     Note: 22            Earmarked Funds                                                                                                 Fiscal Year: 2009               Period: SEPTEMBER
  Entity: 9100           Department of Education                                                                                         Agency Notes:      Note 22

  Status: Complete                          The accompanying notes are an integral part of these financial statements.                I = Inactive Line


      Section: C              Section Name: Liabilities and Net Position - Current Year                                              Line Attributes: Dollars
                                                                                                                                   Rounding Method: Millions                              Decimal: Zero
Line Status Line Description          NB           Benefits due and       Other Federal liabilities Other Fed. liabilities (with      Other non-Federal               Total liabilities        Ending net position C
                                                        payable C         (with earmarked funds) non-earmarked funds) C                     liabilities C
                                                                                                  C
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                                                                                                                                                                          8
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                                                                                                                                                                         -8

Line Status Line Description          NB     Total liabilities and net
                                                            position
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                            -8
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                            -8




                                                                                                         - 58 -
                                                                                                                                                                                                   11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 22            Earmarked Funds                                                                                                  Fiscal Year: 2009               Period: SEPTEMBER
  Entity: 9100           Department of Education                                                                                          Agency Notes:      Note 22

  Status: Complete                          The accompanying notes are an integral part of these financial statements.                 I = Inactive Line


      Section: D              Section Name: Liabilities and Net Position - Prior Year                                                 Line Attributes: Dollars
                                                                                                                                    Rounding Method: Millions                              Decimal: Zero
Line Status Line Description          NB           Benefits due and        Other Federal liabilities Other Fed. liabilities (with      Other non-Federal               Total liabilities        Ending net position C
                                                        payable C          (with earmarked funds) non-earmarked funds) C                     liabilities C
                                                                                                   C
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                                                                                                                                                                          17
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                                                                                                                                                                         -17

Line Status Line Description          NB     Total liabilities and net
                                                            position
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                           -17
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                           -17




                                                                                                          - 59 -
                                                                                                                                                                                      11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 22            Earmarked Funds                                                                                           Fiscal Year: 2009               Period: SEPTEMBER
  Entity: 9100           Department of Education                                                                                   Agency Notes:        Note 22

  Status: Complete                          The accompanying notes are an integral part of these financial statements.          I = Inactive Line


      Section: E              Section Name: Revenue, Financing, Expenses, and Other - Current                                  Line Attributes: Dollars
                                            Year                                                                             Rounding Method: Millions                      Decimal: Zero
Line Status Line Description          NB              Net position,     Prior-period adjustment      Investment revenue C   Individual income taxes Unemployment and excise      Other taxes and receipts
                                             beginning of period C                            C                             and payroll tax withhold               taxes C                             C
                                                                                                                                                  C
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                          17
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                         -17

Line Status Line Description          NB      Miscellaneous earned            Intragovernmental Program net cost - public        Program net cost -       Non-program expenses       Net position, end of
                                                        revenue C               transfers, net C                        D     Intragovernmental D                            D                   period
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                                                                                                           9                                                 -8
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                                                                                                           9                                                 -8




                                                                                                      - 60 -
                                                                                                                                                                                       11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 22            Earmarked Funds                                                                                           Fiscal Year: 2009                Period: SEPTEMBER
  Entity: 9100           Department of Education                                                                                   Agency Notes:         Note 22

  Status: Complete                          The accompanying notes are an integral part of these financial statements.          I = Inactive Line


      Section: F              Section Name: Revenue, Financing, Expenses, and Other - Prior                                    Line Attributes: Dollars
                                            Year                                                                             Rounding Method: Millions                       Decimal: Zero
Line Status Line Description          NB              Net position,     Prior-period adjustment      Investment revenue C   Individual income taxes Unemployment and excise       Other taxes and receipts
                                             beginning of period C                            C                             and payroll tax withhold               taxes C                              C
                                                                                                                                                  C
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                          39
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                         -39

Line Status Line Description          NB      Miscellaneous earned            Intragovernmental Program net cost - public        Program net cost -        Non-program expenses       Net position, end of
                                                        revenue C               transfers, net C                        D     Intragovernmental D                             D                   period
21                                    N/A
22                                    N/A
23                                    N/A
24                                    N/A
25                                    N/A
26              All other earmarked   N/A                                                                                                           22                                                -17
                funds
27              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28              Total                 N/A                                                                                                           22                                                -17




                                                                                                      - 61 -
                                                                                                                                                                                                        11/16/2009 12:26:48

                                                                                        U.S. Department of the Treasury
                                                                                         Financial Management Service
                                                                                    Governmentwide Financial Report System
                                                                                            GF006 - FR Notes Report

     Note: 22           Earmarked Funds                                                                                                        Fiscal Year: 2009                 Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                               Agency Notes:       Note 22

  Status: Complete                          The accompanying notes are an integral part of these financial statements.                      I = Inactive Line


       Section: G             Section Name: Number of Agency Earmarked Funds                                                               Line Attributes: Units


Line Status Line Description          NB      2009 - SEPTEMBER                  2008 - SEPTEMBER                   Previously Rptd        Line Item Changes
 1              Total number of       N/A                         2.0000                        2.0000                                                    2.0000
                earmarked funds




Tab: Text Data
 Line                Question                                                                                                Answer
 1                   Provide a general description of the individual earmarked funds reported in the Other Notes
                     Info tab (SFFAS No. 27, par. 33). Also describe how the entity accounts for and reports the
                     fund (SFFAS No. 27, par. 23.1).
 2                   State the legal authority for the administrative entity of each fund to use the revenues and            Earmarked funds are recorded as specifically identified revenues, often supplemented
                     other financing sources based on SFFAS No. 27, par. 23.1                                                by other financing sources, which remain available over time. These funds are required
                                                                                                                             by statute to be used for designated activities, benefits, or purposes. The Department's
                                                                                                                             earmarked funds are primarily related to the 2005 Hurricane Relief efforts.



 3                   Explain any changes in legislation during or subsequent to the reporting period and before
                     the issuance of the financial statements that significantly changes the purpose of the fund or
                     that redirects a material portion of the accumulated balance (SFFAS No. 27, par. 23.3).
 4                   Provide the sources of revenue and other financing for amounts reported in columns 3                    In the aftermath of Hurricane Katrina, a number of foreign governments, international
                     through 8 of Sections E and F in the Other Notes Info tab (SFFAS No. 27, par. 23.2).                    entities and individuals made donations of financial assistance to the U.S. Government
                                                                                                                             to support Katrina relief and recovery efforts. These donations were received by the
                                                                                                                             U.S. Department of State as an intermediary. Subsequently, $61 million was
                                                                                                                             transferred to the Department to finance educational initiatives in Louisiana and
                                                                                                                             Mississippi under a Memorandum of Understanding issued in March 2006.



 5                   Provide any other relevant information pertaining to this note, including explanation for prior-
                     period adjustments, if any.




                                                                                                               - 62 -
                                                                                                                                                                             11/16/2009 12:26:48

                                                                                       U.S. Department of the Treasury
                                                                                        Financial Management Service
                                                                                   Governmentwide Financial Report System
                                                                                           GF006 - FR Notes Report

     Note: 25             Stewardship Land                                                                                           Fiscal Year: 2009       Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                    Agency Notes:     N/A

  Status: Complete                           The accompanying notes are an integral part of these financial statements.           I = Inactive Line


       Section: A              Section Name: Stewardship Land (SFFAS No. 29, par. 40d)-                  No Data Flag: YES        Line Attributes: Units
                                             Unaudited
Line Status Line Description          NB        Beginning Balance                         Acquired                   Withdrawn      Ending Balance
 1              Public Land           N/A
 2              National Forest       N/A
                System
 3              National Wildlife     N/A
                Refuge System
 4              National Park         N/A
                System
 5              Mission land          N/A
 6          Water, power, and         N/A
            recreation
 7          All other                 N/A
Tab: Text Data                          No Data Flag: YES
 Line                 Question                                                                                           Answer
 1                    Describe the predominant uses of the stewardship land (SFFAS 29, par. 40c).
 2                    Provide the condition of the stewardship land (SFFAS 29, par. 41).
 3                    Provide a brief statement explainng how the stewardship land relates to the mission of the
                      agency (SFFAS No. 29, par. 40a).
 4                    Provide a brief description of the agency's stewardship policies for stewardsip land (SFFAS
                      No. 29, par. 40b).
 5                    Provide any other information relevant information pertaining to this note.




                                                                                                            - 63 -
                                                                                                                                                                              11/16/2009 12:26:48

                                                                              U.S. Department of the Treasury
                                                                               Financial Management Service
                                                                          Governmentwide Financial Report System
                                                                                  GF006 - FR Notes Report

     Note: 26        Heritage Assets                                                                                        Fiscal Year: 2009             Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                Agency Notes:     N/A

  Status: Complete                     The accompanying notes are an integral part of these financial statements.        I = Inactive Line


       Section: A        Section Name: Collection Type Heritage Assets (SFFAS No. 29, par.     No Data Flag: YES         Line Attributes: Units
                                       25d) - Unaudited
Line Status Line Description     NB     CY Physical units as of     CY Physical units added          CY Physical units   CY Physical units-           PY Physical units   PY Physical units added
                                          the beginning of the                                           withdrawn        ending balance            beginning balance
                                                        year
 1                               N/A
 2                               N/A
 3                               N/A
 4                               N/A
 5                               N/A

Line Status Line Description     NB            PY Physical units   PY Physical units-ending
                                                   withdrawn                      balance
 1                               N/A
 2                               N/A
 3                               N/A
 4                               N/A
 5                               N/A
       Section: B        Section Name: Non-Collection Type Heritage Assets (SFFAS No.          No Data Flag: YES         Line Attributes: Units
                                       29, par. 25d) - Unaudited
Line Status Line Description     NB         CY Physical units       CY Physical units added          CY Physical units   CY Physical units-           PY Physical units   PY Physical units added
                                          beginning balance                                              withdrawn        ending balance            beginning balance
 1                               N/A
 2                               N/A
 3                               N/A
 4                               N/A
 5                               N/A

Line Status Line Description     NB            PY Physical units   PY Physical units-ending
                                                   withdrawn                      balance
 1                               N/A
 2                               N/A
 3                               N/A
 4                               N/A
 5                               N/A




                                                                                                 - 64 -
                                                                                                                                                                     11/16/2009 12:26:48

                                                                                    U.S. Department of the Treasury
                                                                                     Financial Management Service
                                                                                Governmentwide Financial Report System
                                                                                        GF006 - FR Notes Report

    Note: 26          Heritage Assets                                                                                         Fiscal Year: 2009      Period: SEPTEMBER
    Entity: 9100      Department of Education                                                                                 Agency Notes:    N/A

 Status: Complete                        The accompanying notes are an integral part of these financial statements.        I = Inactive Line

Tab: Text Data                       No Data Flag: YES
Line               Question                                                                                       Answer
1                  Provide a brief statement explaining how heritage assets relate to the mission of the agency
                   (SFFAS No. 29, par. 25a).
2                  Provide a brief description of the agency's stewardship policies for each major category of
                   the heritage assets (SFFAS No. 29, par. 25b).
3                  Provide a brief description of the condition of each category of the heritage assets (SFFAS
                   29, par. 26).
4                  Provide any other relevant information pertaining to this note.




                                                                                                         - 65 -
                                                                                                                                                                                    11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 27        Fiduciary Activities                                                                                           Fiscal Year: 2009            Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                        Agency Notes:    N/A

  Status: Complete                          The accompanying notes are an integral part of these financial statements.           I = Inactive Line

Tab: Other Notes Info.

       Section: A         Section Name: Schedule of Fiduciary Net Assets - Deposit Funds -          No Data Flag: YES           Line Attributes: Dollars
                                        Current Year                                                                          Rounding Method: Millions                     Decimal: Zero
Line Status Line Description       NB           Fid Inv in Fed Debt      Fid FBWT (USSGL 1010        Int Rec on Fid Fed Debt Inv in Non-Fed Debt Sec Cash and cash equivalents         Other assets D
                                               Sec-net of prem and                    only) D                         Sec D    (and related int rec) D                      D
                                                      discounts D
 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A
13                                N/A
14                                N/A
15                                N/A




                                                                                                      - 66 -
                                                                                                                                                                                            11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 27        Fiduciary Activities                                                                                               Fiscal Year: 2009               Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                            Agency Notes:    N/A

  Status: Complete                          The accompanying notes are an integral part of these financial statements.               I = Inactive Line


       Section: A         Section Name: Schedule of Fiduciary Net Assets - Deposit Funds -          No Data Flag: YES               Line Attributes: Dollars
                                        Current Year                                                                              Rounding Method: Millions                         Decimal: Zero
Line Status Line Description       NB              Liability due and          Other liabilities C   Total fiduciary net assets
                                                          payable to
                                                   beneficiaries C
 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A
13                                N/A
14                                N/A
15                                N/A
       Section: B         Section Name: Schedule of Fiduciary Activity - Deposit Funds -            No Data Flag: YES               Line Attributes: Dollars
                                        Current Year                                                                              Rounding Method: Millions                         Decimal: Zero
Line Status Line Description       NB             Beginning fid net      Fiduciary contributions      Fiduciary revenues C       Investment earnings C      Gain (loss) on disposition   All other inflows to net
                                                    assets bal. D                              C                                                               of investments, net C                   assets C
 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A


                                                                                                       - 67 -
                                                                                                                                                                                            11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 27        Fiduciary Activities                                                                                             Fiscal Year: 2009                 Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                          Agency Notes:      N/A

  Status: Complete                          The accompanying notes are an integral part of these financial statements.             I = Inactive Line


       Section: B         Section Name: Schedule of Fiduciary Activity - Deposit Funds -            No Data Flag: YES             Line Attributes: Dollars
                                        Current Year                                                                            Rounding Method: Millions                           Decimal: Zero
Line Status Line Description       NB             Beginning fid net      Fiduciary contributions      Fiduciary revenues C     Investment earnings C        Gain (loss) on disposition   All other inflows to net
                                                    assets bal. D                              C                                                               of investments, net C                   assets C
13                                N/A
14                                N/A
15                                N/A

Line Status Line Description       NB        Disbursements to and       Administrative and other     All other outflows from      Ending fiduciary net
                                                      on behalf of                  expenses D                 net assets D              assets bal.
                                                  beneficiaries D
 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A
13                                N/A
14                                N/A
15                                N/A
       Section: C         Section Name: Schedule of Changes in Non-Valued Fiduciary Asset           No Data Flag: YES              Line Attributes: Units
                                        - Deposit Funds - Current Year
Line Status Line Description       NB        Beginning quantity of        Additions to quantity           Subtractions from    Ending quantity of non-
                                             non-valued fid assets                                                quantity          valued fid assets

 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A


                                                                                                      - 68 -
                                                                                                                                                                                    11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 27        Fiduciary Activities                                                                                            Fiscal Year: 2009           Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                         Agency Notes:      N/A

  Status: Complete                          The accompanying notes are an integral part of these financial statements.            I = Inactive Line


       Section: C         Section Name: Schedule of Changes in Non-Valued Fiduciary Asset           No Data Flag: YES             Line Attributes: Units
                                        - Deposit Funds - Current Year
Line Status Line Description       NB        Beginning quantity of        Additions to quantity           Subtractions from   Ending quantity of non-
                                             non-valued fid assets                                                quantity         valued fid assets

 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A
13                                N/A
14                                N/A
15                                N/A
       Section: D         Section Name: Schedule of Fiduciary Net Assets - All Other Agency         No Data Flag: YES            Line Attributes: Dollars
                                        Funds - Current Year                                                                   Rounding Method: Millions                    Decimal: Zero
Line Status Line Description       NB           Fid Inv in Fed Debt      Fid FBWT (USSGL 1010        Int Rec on Fid Fed Debt Inv in Non-Fed Debt Sec Cash and cash equivalents         Other assets D
                                               Sec-net of prem and                    only) D                         Sec D    (and related int rec) D                      D
                                                      discounts D
 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A
13                                N/A
14                                N/A
15                                N/A




                                                                                                      - 69 -
                                                                                                                                                                                            11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 27        Fiduciary Activities                                                                                               Fiscal Year: 2009               Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                            Agency Notes:    N/A

  Status: Complete                          The accompanying notes are an integral part of these financial statements.               I = Inactive Line


       Section: D         Section Name: Schedule of Fiduciary Net Assets - All Other Agency         No Data Flag: YES               Line Attributes: Dollars
                                        Funds - Current Year                                                                      Rounding Method: Millions                         Decimal: Zero
Line Status Line Description       NB              Liability due and          Other liabilities C   Total fiduciary net assets
                                                          payable to
                                                   beneficiaries C
 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A
13                                N/A
14                                N/A
15                                N/A
       Section: E         Section Name: Schedule of Fiduciary Activity - All Other Agency           No Data Flag: YES               Line Attributes: Dollars
                                        Funds - Current Year                                                                      Rounding Method: Millions                         Decimal: Zero
Line Status Line Description       NB             Beginning fid net      Fiduciary contributions      Fiduciary revenues C       Investment earnings C      Gain (loss) on disposition   All other inflows to net
                                                    assets bal. D                              C                                                               of investments, net C                   assets C
 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A


                                                                                                       - 70 -
                                                                                                                                                                                            11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 27        Fiduciary Activities                                                                                              Fiscal Year: 2009                Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                           Agency Notes:       N/A

  Status: Complete                          The accompanying notes are an integral part of these financial statements.              I = Inactive Line


       Section: E         Section Name: Schedule of Fiduciary Activity - All Other Agency           No Data Flag: YES             Line Attributes: Dollars
                                        Funds - Current Year                                                                    Rounding Method: Millions                           Decimal: Zero
Line Status Line Description       NB             Beginning fid net      Fiduciary contributions      Fiduciary revenues C     Investment earnings C        Gain (loss) on disposition   All other inflows to net
                                                    assets bal. D                              C                                                               of investments, net C                   assets C
13                                N/A
14                                N/A
15                                N/A

Line Status Line Description       NB        Disbursements to and       Administrative and other     All other outflows from   Ending fid net asset bal.
                                                      on behalf of                  expenses D                 net assets D
                                                  beneficiaries D
 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A
13                                N/A
14                                N/A
15                                N/A
       Section: F         Section Name: Schedule of Changes in Non-Valued Fiduciary                 No Data Flag: YES              Line Attributes: Units
                                        Assets - All Other Agency Funds - Current Year
Line Status Line Description       NB        Beginning quantity of        Additions to quantity           Subtractions from    Ending quantity of non-
                                             non-valued fid assets                                                quantity          valued fid assets

 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A


                                                                                                      - 71 -
                                                                                                                                                                              11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 27        Fiduciary Activities                                                                                            Fiscal Year: 2009        Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                         Agency Notes:      N/A

  Status: Complete                          The accompanying notes are an integral part of these financial statements.            I = Inactive Line


       Section: F         Section Name: Schedule of Changes in Non-Valued Fiduciary                 No Data Flag: YES             Line Attributes: Units
                                        Assets - All Other Agency Funds - Current Year
Line Status Line Description       NB        Beginning quantity of        Additions to quantity           Subtractions from   Ending quantity of non-
                                             non-valued fid assets                                                quantity         valued fid assets

 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A
13                                N/A
14                                N/A
15                                N/A
       Section: G         Section Name: Number of Agency Fiduciary Activities                       No Data Flag: YES             Line Attributes: Units


Line Status Line Description       NB            Total number of fid   Total number of fid funds
                                              funds - deposit funds     - all other agency funds
 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A
13                                N/A
14                                N/A
15                                N/A




                                                                                                      - 72 -
                                                                                                                                                                           11/16/2009 12:26:48

                                                                                       U.S. Department of the Treasury
                                                                                        Financial Management Service
                                                                                   Governmentwide Financial Report System
                                                                                           GF006 - FR Notes Report

     Note: 27          Fiduciary Activities                                                                                         Fiscal Year: 2009      Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                      Agency Notes:    N/A

 Status: Complete                             The accompanying notes are an integral part of these financial statements.         I = Inactive Line

Tab: Text Data                         No Data Flag: YES
Line               Question                                                                                             Answer
1                  Describe the fiduciary relationship, for example, the applicable legal authority, the objectives
                   of the fiduciary activity, and a general description of the beneficial owners or class of owners
                   of each fiduciary fund (SFFAS No. 31, par. 18 (a)).
2                  Provide information on any significant changes in fiduciary net assets from the prior period
                   (SFFAS No. 31, par. 18 (c)).
3                  Provide the TAS for all funds with fiduciary activities.
4                  For any cash included in the Schedules of Fiduciary Net Assets, indicate if the cash is
                   represented by balances on deposit with either the U.S. Treasury or with a commercial
                   banking institution (SFFAS No. 31, par. 12).
5                  Provide a description of any cash equivalents included in the Schedules of Fiduciary Net
                   Assets.
6                  For any non-monetary assets included in the Schedules of Fiduciary Net Assets, provide a
                   description of the composition of the assets, the method(s) of valuation, and the changes (if
                   any) from prior-period accounting methods (SFFAS No. 31, par. 18 (c)).
7                  For any non-valued fiduciary assets included in the Schedules of Non-Valued Fiduciary
                   Assets, provide a description of the non-valued assets (SFFAS No. 31, par. 18 (d)).
8                  If separate audited financial statements are issued for an individual fiduciary activity with a
                   fiscal yearend other than September 30, indicate the fiduciary activity's fiscal year (SFFAS
                   No. 31, par. 18 (e)).
9                  If separate audited financial statements are issued for an individual fiduciary activity, disclose
                   the basis of accounting used and the auditor's opinion on the current or most recent financial
                   statements. If the auditor's opinion was not unqualified, disclose the reason(s) stated by the
                   auditors and refer the reader to the audit opinion for further information (SFFAS No. 31, par.
                   12 (a)).
10                 If separate audited financial statements are issued for an individual fiduciary activity, provide
                   information on the reader can obtain a copy of the financial statements and the audit opinion
                   thereon (SFFAS No. 31, par. 19).
11                 If more than one agency is responsible for administering a fiduciary activity, and the separate
                   portions of the activity can be clearly identified with another responsible agency, identify the
                   other agency(ies) involved in managing the activity (SFFAS No. 31, par. 19).
12                 Provide any other relevant information pertaining to this note.




                                                                                                              - 73 -
                                                                                                                                                                                    11/16/2009 12:26:48

                                                                                   U.S. Department of the Treasury
                                                                                    Financial Management Service
                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

     Note: 28A         Financial and Housing Market Stabilization - Investment in GSE                                               Fiscal Year: 2009              Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                      Agency Notes:     N/A

  Status: Complete                       The accompanying notes are an integral part of these financial statements.              I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                          NB    Account    2009 - SEPTEMBER      2008 - SEPTEMBER
                                                                                  Type
Investment in Government sponsored enterprises (GSEs)                     D         A                        0                      0
                                                                               Variance:                     0                      0         Rounding Method: Millions         Decimal: Zero
Line Status Line Description            CY - Appraisal value at           CY - Unamortized    CY - Net investment          CY - Interest receivable   CY - Investment Balance   PY - Appraisal value at
                                            purchase date             premium/discount                                                                                              purchase date
 1          Fannie Mae senior
            preferred stock
 2          Freddie Mac senior
            preferred stock
 3          Fannie Mae warrants
            common stock
 4          Freddie Mac warrants
            common stock
 5
 6
 7
 8          All other stock
            Total

Line Status Line Description                     PY - Unamortized    PY - Net investment        PY - Interest receivable    PY- Investment Balance
 1          Fannie Mae senior
            preferred stock
 2          Freddie Mac senior
            preferred stock
 3          Fannie Mae warrants
            common stock
 4          Freddie Mac warrants
            common stock
 5
 6
 7
 8          All other stock
            Total




                                                                                                    - 74 -
                                                                                                                                                                             11/16/2009 12:26:48

                                                                                       U.S. Department of the Treasury
                                                                                        Financial Management Service
                                                                                   Governmentwide Financial Report System
                                                                                           GF006 - FR Notes Report

     Note: 28A           Financial and Housing Market Stabilization - Investment in GSE                                              Fiscal Year: 2009      Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                     Agency Notes:    N/A

  Status: Complete                             The accompanying notes are an integral part of these financial statements.         I = Inactive Line

Tab: Other Notes Info.

       Section: A                Section Name: Appraisal Value at Reporting Date                       No Data Flag: YES         Line Attributes: Dollars
                                                                                                                               Rounding Method: Millions             Decimal: Zero
Line Status Line Description            NB      CY- Appraisal value at       PY- Appraisal value at
                                                      reporting date               reporting date
 1             Fannie Mae senior       Debit
               preferred stock
 2             Freddie Mac senior      Debit
               preferred stock
 3             Fannie Mae              Debit
               warrants common
               stock
 4             Freddie Mac             Debit
               warrants common
               stock
 5                                     Debit
 6                                     Debit
 7                                     Debit
 8             All other stock         Debit
 9             Total                   N/A
       Section: B                Section Name: Other Related Information                               No Data Flag: YES         Line Attributes: Dollars
                                                                                                                               Rounding Method: Millions             Decimal: Zero
Line Status Line Description            NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1             Debt and mortgage Debit
               backed securities
               outstanding -
               Fannie Mae
 2             Debt and mortgage Debit
               backed securities
               outstanding -
               Freddie Mac
 3             Debt and mortgage Debit
               backed securities
               outstanding -
               Other
 4             Revenue           Credit
               recognized from
               acquisition of
               preferred stocks
               and warrants



                                                                                                         - 75 -
                                                                                                                                                                           11/16/2009 12:26:48

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                         GF006 - FR Notes Report

     Note: 28A           Financial and Housing Market Stabilization - Investment in GSE                                            Fiscal Year: 2009      Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                   Agency Notes:    N/A

  Status: Complete                           The accompanying notes are an integral part of these financial statements.         I = Inactive Line


       Section: B             Section Name: Other Related Information                                No Data Flag: YES         Line Attributes: Dollars
                                                                                                                             Rounding Method: Millions             Decimal: Zero
Line Status Line Description          NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 5             The liquidation       Debit
               preference value
               per share of senior
               preferred stock
 6             Nominal cost of       Debit
               common stock on a
               fully-diluted basis



       Section: C             Section Name: Othere Related Information                               No Data Flag: YES         Line Attributes: Units


Line Status Line Description          NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1             Number of non-        N/A
               voting senior
               preferred stock -
               shares




       Section: D             Section Name: Other Related Information                                No Data Flag: YES         Line Attributes: Percent


Line Status Line Description          NB       2009 - SEPTEMBER             2008 - SEPTEMBER               Previously Rptd    Line Item Changes
 1             Rate of dividents     N/A




                                                                                                       - 76 -
                                                                                                                                                                                11/16/2009 12:26:48

                                                                                  U.S. Department of the Treasury
                                                                                   Financial Management Service
                                                                              Governmentwide Financial Report System
                                                                                      GF006 - FR Notes Report

     Note: 28B         Financial and housing Market Stabilization - GSE Keepwell Payable                                        Fiscal Year: 2009               Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                  Agency Notes:      N/A

  Status: Complete                       The accompanying notes are an integral part of these financial statements.          I = Inactive Line

Tab: Line Item Notes
Closing Package Line Description                                         NB    Account     2009 - SEPTEMBER     2008 - SEPTEMBER
                                                                                 Type
Keepwell payable                                                          C        L                        0                  0
                                                                              Variance:                     0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description          2009 - SEPTEMBER             2008 - SEPTEMBER              Previously Rptd        Line Item Changes
 1          Keepwell Payable -
            Fannie Mae
 2          Keepwell Payable -
            Freddie Mac
 3
 4
 5          All other payables
            Total




                                                                                                   - 77 -
                                                                                                                                                                                 11/16/2009 12:27:10

                                                                                       U.S. Department of the Treasury
                                                                                        Financial Management Service
                                                                                   Governmentwide Financial Report System
                                                                                          GF007 - Other Data Report

 Other Data: 01                Statement of Operations and Changes in Net Position                                                     Fiscal Year: 2009             Period: SEPTEMBER
        Entity: 9100          Department of Education                                                                                      Agency Notes:    N/A
        Status: Complete                                                                               I = Inactive Line


  Tab: Other Data Info.
      Section: A                 Section Name: Nonexchange Revenue: Specific potential accruals not              No Data: YES          Line Attributes: Dollars
                                               made as a result of using the modified cash basis of                                  Rounding Method: User-Defined         Decimal: User-Defined
                                               accounting.


Line Status     Line Description         NB            CY - Low Range               CY - High Range                 PY - Low Range        PY - High Range
 1                                      Debit
 2                                      Debit
 3                                      Debit
 4                                      Debit
 5                                      Debit



     Tab: Other Text Data

        Section: A                 Section Name: Nonexchange Revenue: Specific potential accruals not             No Data: YES
                                                 made as a result of using the modified cash basis of
                                                 accounting.

 Line         Question                                                                                                      Answer
 1            Provide the practical and inherent limitations affecting the accrual of taxes and duties. (SFFAS
              No. 7, par.64)




                                                                                                            - 1 -
                                                                                                                                                                   11/16/2009 12:27:10

                                                                             U.S. Department of the Treasury
                                                                              Financial Management Service
                                                                         Governmentwide Financial Report System
                                                                                GF007 - Other Data Report

 Other Data: 02             Taxes                                                                                        Fiscal Year: 2009             Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                          Agency Notes:    N/A
      Status: Complete                                                                    I = Inactive Line


  Tab: Other Data Info.
     Section: A               Section Name: Taxes (SSFAS No.7, par. 67-69)                      No Data: YES             Line Attributes: Dollars
                                                                                                                       Rounding Method: User-Defined         Decimal: User-Defined
Line Status   Line Description        NB      2009 - SEPTEMBER         2008 - SEPTEMBER              Previously Rptd      Line Item Changes
 1            Estimated realized      Debit
              value of compliance
              assessments as of
              the end of the period
 2            Estimated realizable    Debit
              value of pre-
              assessment work-
              in-progress
 3            Changes in 1 and 2      Debit
              above
 4            Other claims for        Debit
              refunds not yet
              accrued but likely to
              be paid when
              administrative
              actions are
              completed
 5            Management's best       Debit
              estimate of
              unasserted claims for
              refunds
 6            Changes in 4 and 5      Debit
              above
 7            Amount of               Debit
              assessments written
              off that continue to
              be statutorily
              collectible




                                                                                               - 2 -
                                                                                                                                                                                     11/16/2009 12:27:10

                                                                                          U.S. Department of the Treasury
                                                                                           Financial Management Service
                                                                                      Governmentwide Financial Report System
                                                                                             GF007 - Other Data Report

 Other Data: 02                Taxes                                                                                                       Fiscal Year: 2009             Period: SEPTEMBER
         Entity: 9100          Department of Education                                                                                         Agency Notes:    N/A
        Status: Complete                                                                                   I = Inactive Line


     Tab: Other Data Info.
      Section: B                  Section Name: Provide the following amount if a range is estimable              No Data: YES             Line Attributes: Dollars
                                                and not included in Sec. A (SFFAS No. 7 par 67)                                          Rounding Method: User-Defined         Decimal: User-Defined


Line Status      Line Description         NB                       CY Low                        CY High                        PY Low               PY High
 1               Realizable value of     Debit
                 pre-assessment
                 work-in-progress
 2               Changes in line 1     Debit
                 above
 3               Management's best     Debit
                 estimate of
                 unasserted claims for
                 refunds
 4               Changes in line 3     Debit
                 above

     Tab: Other Text Data

        Section: A                  Section Name: Taxes (SSFAS No.7, par. 67-69)                                       No Data: YES

 Line          Question                                                                                                         Answer
 1            Provide the explicit definitions of estimated amounts of the size of the tax gap.
 2            Provide the appropriate explanation of the limited reliability of the estimates of the size of the tax
              gap.
 3            Provide cross-references to portions of the tax gap due from identified noncompliant taxpayers
              and importers.
 4            Provide the estimates of the annual tax gap (amounts should specifically define whether it
              includes or excludes estimates of tax due on illegally earned revenue).
 5            Disclose the amounts by which trust funds may be over- or under-funded in comparison with the
              requirements of law, if reasonable estimable.




                                                                                                                 - 3 -
                                                                                                                                                                        11/16/2009 12:27:10

                                                                              U.S. Department of the Treasury
                                                                               Financial Management Service
                                                                          Governmentwide Financial Report System
                                                                                 GF007 - Other Data Report

 Other Data: 09            Stewardship Investments                                                                           Fiscal Year: 2009              Period: SEPTEMBER
       Entity: 9100        Department of Education                                                                               Agency Notes:    Note 09
      Status: Complete                                                                       I = Inactive Line


  Tab: Other Data Info.
     Section: A              Section Name: Investment in Non-Federal physical property (SFFAS      No Data: YES              Line Attributes: Dollars
                                           No. 8, par 87)                                                                  Rounding Method: User-Defined          Decimal: User-Defined


Line Status   Line Description      NB                   FY 2009                   FY 2008                       FY 2007                FY 2006                  FY 2005
 1                                  Debit
 2                                  Debit
 3                                  Debit
 4                                  Debit
 5                                  Debit
 6            Other non-Federal     Debit
              physical property

     Section: B              Section Name: Research and Development: Investment in                 No Data: YES              Line Attributes: Dollars
                                           Development (SFFAS No. 8, par. 94, 99 & 100)                                    Rounding Method: User-Defined          Decimal: User-Defined


Line Status   Line Description      NB                   FY 2009                   FY 2008                       FY 2007                FY 2006                  FY 2005
 1                                  Debit
 2                                  Debit
 3                                  Debit
 4                                  Debit
 5                                  Debit
 6            Other investment in   Debit
              development




                                                                                                  - 4 -
                                                                                                                                                                                          11/16/2009 12:27:10

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                        GF007 - Other Data Report

 Other Data: 09               Stewardship Investments                                                                                    Fiscal Year: 2009                   Period: SEPTEMBER
        Entity: 9100          Department of Education                                                                                        Agency Notes:         Note 09
       Status: Complete                                                                              I = Inactive Line


  Tab: Other Data Info.
      Section: C                Section Name: Investment in Human Capital (SFFAS No. 8, par 100)                                         Line Attributes: Dollars
                                                                                                                                       Rounding Method: Millions                   Decimal: Zero
Line Status      Line Description       NB                       FY 2009                   FY 2008                       FY 2007                     FY 2006                      FY 2005
 1               Federal Student Aid    Debit                     -22,055                     20,037                       19,650                       50,336                       30,308
 2               Elementary and         Debit                      21,443                     21,583                       21,199                       21,710                       22,940
                 Secondary Education
 3               Special Education      Debit                      15,075                     15,730                       15,402                       15,215                       13,995
                 and Rehab Services
 4               American Recovery      Debit                      21,616                            0                             0                           0                            0
                 and Reinvestment
 5               Salaries and           Debit                         472                        491                           467                         467                          486
                 Administration
 6               Other Investments in   Debit                       7,150                       4,911                         5,109                      5,353                        6,067
                 human capital
     Threshold
      Line Description                                               Question                                                                     Answer
      Other Data Info - Elementary and Secondary Education           Please provide explanations for any amounts that have                        Change is primarily due to the change in the FFEL Program and
      (FY 2009)                                                      changed by 20% or more and or greater than 5,000,000                         Direct Loan Program subsidy expense
                                                                     between the current fiscal year and prior fiscal year.
                                                                     (Unaudited)
      Other Data Info - Special Education and Rehab Services         Please provide explanations for any amounts that have                        Within threshold
      (FY 2009)                                                      changed by 20% or more and or greater than 5,000,000
                                                                     between the current fiscal year and prior fiscal year.
                                                                     (Unaudited)
      Other Data Info - American Recovery and Reinvestment           Please provide explanations for any amounts that have                        The increase is the result of additional grant funding made
      (FY 2009)                                                      changed by 20% or more and or greater than 5,000,000                         available during FY 2009 by the American Recovery and
                                                                     between the current fiscal year and prior fiscal year.                       Reinvestment Act of 2009.
                                                                     (Unaudited)
      Other Data Info - Salaries and Administration (FY 2009)        Please provide explanations for any amounts that have                        Within threshold.
                                                                     changed by 20% or more and or greater than 5,000,000
                                                                     between the current fiscal year and prior fiscal year.
                                                                     (Unaudited)
      Other Data Info - Other Investments in human capital (FY       Please provide explanations for any amounts that have                        Primarily the result of increased Vocational & Adult Education,
      2009)                                                          changed by 20% or more and or greater than 5,000,000                         Innovation and Improvement, Safe Schools and Citizenship
                                                                     between the current fiscal year and prior fiscal year.                       Education, and Higher Education grantee drawdowns
                                                                     (Unaudited)




                                                                                                          - 5 -
                                                                                                                                                                                 11/16/2009 12:27:10

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                        GF007 - Other Data Report

 Other Data: 09               Stewardship Investments                                                                                 Fiscal Year: 2009              Period: SEPTEMBER
         Entity: 9100         Department of Education                                                                                     Agency Notes:    Note 09
        Status: Complete                                                                              I = Inactive Line


     Tab: Other Data Info.
      Section: D                Section Name: Research and Development: Investment in Basic                 No Data: YES              Line Attributes: Dollars
                                              Research (SFFAS No. 8, par.99 & 100)                                                  Rounding Method: User-Defined          Decimal: User-Defined


Line Status      Line Description         NB                   FY 2009                      FY 2008                       FY 2007                FY 2006                  FY 2005
 1                                       Debit
 2                                       Debit
 3                                       Debit
 4                                       Debit
 5                                       Debit
 6               Other investments in    Debit
                 basic research

      Section: E                Section Name: Research and Development: Investment in Applied               No Data: YES              Line Attributes: Dollars
                                              Research (SFFAS No. 8, par 100)                                                       Rounding Method: User-Defined          Decimal: User-Defined


Line Status      Line Description         NB                   FY 2009                      FY 2008                       FY 2007                FY 2006                  FY 2005
 1                                       Debit
 2                                       Debit
 3                                       Debit
 4                                       Debit
 5                                       Debit
 6               Other investment in     Debit
                 applied research


     Tab: Other Text Data

        Section: A                  Section Name: Investment in Non-Federal physical property (SFFAS          No Data: YES
                                                  No. 8, par 87)

 Line         Question                                                                                                    Answer
 1            Provide a description of federally owened physical property transferred to state and local
              governments. (SFFAS No. 8, par 87)
 2            Provide a description of the major programs of Federal investments in non-Federal property.
              (SFFAS No.8 par. 87)




                                                                                                            - 6 -
                                                                                                                                                                                           11/16/2009 12:27:10

                                                                                    U.S. Department of the Treasury
                                                                                     Financial Management Service
                                                                                Governmentwide Financial Report System
                                                                                       GF007 - Other Data Report

Other Data: 09              Stewardship Investments                                                                                     Fiscal Year: 2009                  Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                          Agency Notes:       Note 09
       Status: Complete                                                                             I = Inactive Line



    Tab: Other Text Data

       Section: B               Section Name: Research and Development: Investment in                       No Data: YES
                                              Development (SFFAS No. 8, par. 94, 99 & 100)

Line         Question                                                                                                   Answer
1           Provide a description of the major programs of Federal investments in development. (SFFAS No.
            8, par. 100)
2           Provide a description of the progress of major development projects including the results with
            respect to projects completed or otherwise terminated during the year and the status of projects
            that will continue (SFFAS No. 8, par. 99)
    Tab: Other Text Data

       Section: C               Section Name: Investment in Human Capital (SFFAS No. 8, par 100)

Line         Question                                                                                                    Answer
1           Provide a description of the major education and training programs considered Federal                       Federal Student Aid - The Office of Federal Student Aid administers need based financial
            investments in human capital. (SFFAS No.8, par. 94)                                                         assistance programs for students pursuing postsecondary education and makes available
                                                                                                                        federal grants, direct loans, guaranteed loans, and work study funding to eligible
                                                                                                                        undergraduate and graduate students.



                                                                                                                        Office of Elementary and Secondary Education - The Office of Elementary and Secondary
                                                                                                                        Education provides leadership, technical assistance, and financial support to state and local
                                                                                                                        educational agencies for the maintenance and improvement of preschool, elementary, and
                                                                                                                        secondary education. Financial assistance programs support services for children in high-
                                                                                                                        poverty schools, institutions for neglected and delinquent children, homeless children, certain
                                                                                                                        Native American children, children of migrant families, and children who live on or whose
                                                                                                                        parents work on Federal property.




                                                                                                                        Office of Special Education and Rehabilitative Services - The Office of Special Education
                                                                                                                        and Rehabilitative Services supports state and local programs that assist in educating
                                                                                                                        children, youth and adults with special needs to increase their level of employment,
                                                                                                                        productivity, independence, and integration into the community. Funding is also provided for
                                                                                                                        research to improve the quality of their lives.



                                                                                                                        Other Departmental Programs - Other Departmental Programs include, but are not limited
                                                                                                                        to, making strategic investments in educational practices; funding research, evaluations, and
                                                                                                                        information dissemination; enabling students with limited English proficiency to become
                                                                                                                        proficient in English; funding vocational and technical education; and promoting reform,


                                                                                                         - 7 -
                                                                                                                                                                                        11/16/2009 12:27:10

                                                                                  U.S. Department of the Treasury
                                                                                   Financial Management Service
                                                                              Governmentwide Financial Report System
                                                                                     GF007 - Other Data Report

Other Data: 09              Stewardship Investments                                                                                   Fiscal Year: 2009                 Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                       Agency Notes:       Note 09
       Status: Complete                                                                          I = Inactive Line



    Tab: Other Text Data

       Section: C              Section Name: Investment in Human Capital (SFFAS No. 8, par 100)

Line        Question                                                                                                   Answer
                                                                                                                      innovation and improvement in postsecondary education.



                                                                                                                      The American Recovery and Reinvestment Act of 2009 enacted on February 17, 2009 by
                                                                                                                      P.L. 111-5, provided $97.4 billion in funding for FY 2009 to the Department for improving
                                                                                                                      schools, raising students' achievement, driving reform, and producing better results for
                                                                                                                      children and young people for the long term health of the nation. Approximately 55 percent of
                                                                                                                      the Department's Recovery Act funding was appropriated for the creation of a new State
                                                                                                                      Fiscal Stabilization Fund with the goal to stabilize state and local government budgets to
                                                                                                                      avoid reductions in education and other essential public services while driving education
                                                                                                                      reform. The Department was tasked with promptly disbursing these funds through a variety
                                                                                                                      of existing and new grant programs, while ensuring the transparency




    Tab: Other Text Data

       Section: D              Section Name: Research and Development: Investment in Basic                   No Data: YES
                                             Research (SFFAS No. 8, par.99 & 100)

Line        Question                                                                                                  Answer
1           Provide a description of the major programs of Federal investments in basic research. (SFFAS
            No. 8, par. 100)
2           Provide a description of any major new discoveries made during the year (SFFAS No. 8, par. 99)
    Tab: Other Text Data

       Section: E              Section Name: Research and Development: Investment in Applied                 No Data: YES
                                             Research (SFFAS No. 8, par 100)

Line        Question                                                                                                  Answer
1           Provide a description of the major programs of Federal investments in applied research. (SFFAS
            No. 8, par. 100)
2           Provide a description of any major new applications developed during the year (SFFAS No. 8,
            par. 99)




                                                                                                       - 8 -
                                                                                                                                                                11/16/2009 12:27:10

                                                                        U.S. Department of the Treasury
                                                                         Financial Management Service
                                                                    Governmentwide Financial Report System
                                                                           GF007 - Other Data Report

 Other Data: 10             Deferred Maintenance                                                                    Fiscal Year: 2009             Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                     Agency Notes:       N/A
      Status: Complete                                                             I = Inactive Line


  Tab: Other Data Info.
     Section: A               Section Name: Range of Amounts                             No Data: YES               Line Attributes: Dollars
                                                                                                                  Rounding Method: User-Defined          Decimal: User-Defined
Line Status   Line Description         NB             CY- Low   D       CY- High    D CY - Critical Maintenance             PY- Low     D            PY- High    D PY - Critical Maintenance
                                                                                                              D                                                                            D
 1            Buildings, structures,   N/A
              and facilities
 2            Furniture, fixtures,     N/A
              and equipment
 3            Other general            N/A
              property, plant, and
              equipment
 4            Heritage assets          N/A
 5            Stewardship land         N/A




                                                                                        - 9 -
                                                                                                                                                                              11/16/2009 12:27:10

                                                                                     U.S. Department of the Treasury
                                                                                      Financial Management Service
                                                                                 Governmentwide Financial Report System
                                                                                        GF007 - Other Data Report

 Other Data: 15               Risk Assumed-Federal Insurance and Guarantee Programs(SFFAS No. 5, par. 105, 106,and 114)             Fiscal Year: 2009             Period: SEPTEMBER
         Entity: 9100         Department of Education                                                                                   Agency Notes:    N/A
        Status: Complete                                                                            I = Inactive Line


     Tab: Other Data Info.
      Section: A                Section Name: Risk Assumed                                                 No Data: YES             Line Attributes: Dollars
                                                                                                                                  Rounding Method: User-Defined         Decimal: User-Defined
Line Status      Line Description        NB       2009 - SEPTEMBER            2008 - SEPTEMBER                  Previously Rptd      Line Item Changes
 1               Present value of       Debit
                 unpaid expected
                 losses (net of
                 associated
                 premiums)
 2               Periodic changes       Debit




     Tab: Other Text Data

        Section: A                  Section Name: Risk Assumed                                              No Data: YES

 Line          Question                                                                                                 Answer
 1            Provide the indicators of the range of uncertainty around insurance related estimates and
              sensitivity of the estimates to changes in major assumptions (SFFAS No.5, par.114)
 2            Provide the actuarial or financial methods used to measure the present value of unpaid expected
              losses (SFFAS No. 5. par. 114)




                                                                                                        - 10 -
                                                                                                                                                                       11/16/2009 12:27:10

                                                                                U.S. Department of the Treasury
                                                                                 Financial Management Service
                                                                            Governmentwide Financial Report System
                                                                                   GF007 - Other Data Report

 Other Data: 16             Analysis of FR Operating Revenue to Budget Receipts                                             Fiscal Year: 2009             Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                             Agency Notes:    N/A
      Status: Complete                                                                      I = Inactive Line


  Tab: Other Data Info.
     Section: A               Section Name: Fiscal 2009 Operating Revenues Not Reported in the     No Data: YES             Line Attributes: Dollars
                                            Budget Receipts                                                               Rounding Method: User-Defined          Decimal: User-Defined


Line Status   Line Description         NB      CY-Individual income tax   CY-Corporation income   CY-Unemployment taxes        CY-Excise taxes     CY-Estate and gift taxes   CY-Customs duties
                                                and tax withholdings                    taxes
 1            Undistributed           Credit
              Offsetting receipts
              (offset against
              outlays)
 2            Proprietary receipts    Credit
              from the public
              (offset against
              outlays)
 3            Rents and royalties     Credit
              on the outer
              continental shelf
              lands (offset against
              outlays)
 4            Offsetting              Credit
              governmental
              receipts (offset
              against outlays)
 5            Intrabudgetary          Credit
              transactions (offset
              against outlays)
 6                                    Credit
 7                                    Credit
 8                                    Credit

Line Status   Line Description         NB           CY-Other taxes and CY-Miscellaneous earned
                                                           receipts                 revenue
 1            Undistributed           Credit
              Offsetting receipts
              (offset against
              outlays)
 2            Proprietary receipts    Credit
              from the public
              (offset against
              outlays)
 3            Rents and royalties     Credit
              on the outer


                                                                                                  - 11 -
                                                                                                                                                                         11/16/2009 12:27:10

                                                                                U.S. Department of the Treasury
                                                                                 Financial Management Service
                                                                            Governmentwide Financial Report System
                                                                                   GF007 - Other Data Report

 Other Data: 16             Analysis of FR Operating Revenue to Budget Receipts                                                Fiscal Year: 2009             Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                Agency Notes:    N/A
      Status: Complete                                                                        I = Inactive Line


  Tab: Other Data Info.
     Section: A               Section Name: Fiscal 2009 Operating Revenues Not Reported in the      No Data: YES               Line Attributes: Dollars
                                            Budget Receipts                                                                  Rounding Method: User-Defined         Decimal: User-Defined


Line Status   Line Description        NB           CY-Other taxes and CY-Miscellaneous earned
                                                          receipts                 revenue
              continental shelf
              lands (offset against
              outlays)
 4            Offsetting              Credit
              governmental
              receipts (offset
              against outlays)
 5            Intrabudgetary          Credit
              transactions (offset
              against outlays)
 6                                    Credit
 7                                    Credit
 8                                    Credit
     Section: B               Section Name: Fiscal 2009 Budget Receipts Not Reported in the         No Data: YES               Line Attributes: Dollars
                                            Operating Revenue                                                                Rounding Method: User-Defined         Decimal: User-Defined


Line Status   Line Description        NB         CY-Individual income    CY-Corporation income         CY-Employment and          CY-Unemployment CY-Other retirement     C      CY-Excise taxes   C
                                                            taxes   C                taxes   C       general retirement C            insurance  C
 1            Earned (exchange)       N/A
              revenue reported in
              the Statement of Net
              Cost
 2                                    N/A
 3                                    N/A
 4                                    N/A

Line Status   Line Description        NB       CY-Estate and gift taxes CY-Customs duties      C          CY-Miscellaneous
                                                                      C                                       receipts   C
 1            Earned (exchange)        N/A
              revenue reported in
              the Statement of Net
              Cost
 2                                     N/A



                                                                                                   - 12 -
                                                                                                                                                                                    11/16/2009 12:27:10

                                                                                         U.S. Department of the Treasury
                                                                                          Financial Management Service
                                                                                     Governmentwide Financial Report System
                                                                                            GF007 - Other Data Report

 Other Data: 16                Analysis of FR Operating Revenue to Budget Receipts                                                        Fiscal Year: 2009             Period: SEPTEMBER
        Entity: 9100           Department of Education                                                                                        Agency Notes:    N/A
        Status: Complete                                                                                 I = Inactive Line


  Tab: Other Data Info.
      Section: B                 Section Name: Fiscal 2009 Budget Receipts Not Reported in the                   No Data: YES             Line Attributes: Dollars
                                               Operating Revenue                                                                        Rounding Method: User-Defined         Decimal: User-Defined


Line Status     Line Description          NB       CY-Estate and gift taxes CY-Customs duties              C         CY-Miscellaneous
                                                                          C                                              receipts   C
 3                                        N/A
 4                                        N/A




     Tab: Other Text Data

        Section: A                 Section Name: Fiscal 2009 Operating Revenues Not Reported in the               No Data: YES
                                                 Budget Receipts

 Line         Question                                                                                                       Answer
 1            Provide a detailed description of the undistributed offsetting receipts reconciling item(s).
 2            Provide a detailed description of the proprietary receipts from the public reconciling item(s).
 3            Provide a detailed description of the offsetting governmental receipts reconciling item(s).
 4            Provide a detailed description of the intrabudgetary transaction reconciling item(s).
 5            Provide a detailed description of the agency entered description reconciling item(s).
     Tab: Other Text Data

        Section: B                 Section Name: Fiscal 2009 Budget Receipts Not Reported in the                  No Data: YES
                                                 Operating Revenue

 Line         Question                                                                                                       Answer
 1            Provide a detailed description of the earned revenue reconciling item(s).
 2            Provide a detailed description of the agency entered description reconciling item(s).




                                                                                                                - 13 -