oversight

Financial Statement Audits for Fiscal Years 2010 and 2009 -U.S. Department of Education Special Purpose Financial Statements

Published by the Department of Education, Office of Inspector General on 2010-11-15.

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

                                                                       Ernst & Young LLP
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                                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, 2010 and
2009, and 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 of America; 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 audits 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, as described in Note 1, 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, 2010 and 2009,
and its net cost and changes in net position, for the years then ended, in conformity with
accounting principles generally accepted in the United States of America and the presentation
pursuant to the requirements of the 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 the 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 15, 2010 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.

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 prevented,
or detected and corrected on a timely basis.

Our consideration of internal control over the financial reporting process for the special-purpose
financial statements was for the limited purpose described in the second preceding paragraph and
was not designed to identify all deficiencies in internal control that might be deficiencies,
significant deficiencies, or material weaknesses.



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



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 the 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 15, 2010




                                                                   A member firm of Ernst & Young Global Limited
                                                                       U.S Department of the Treasury                                         11-15-2010 15:08:57
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:        2010                              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               2010-SEPTEMBER                        2009-SEPTEMBER                    Previously Reported
Assets:
Non-Federal
Cash and Other Monetary Assets                                                2,965                               2,414                              2,414
Accounts and Taxes Receivable                                                   239                                 520                                520
Loans Receivable and mortgage                                               367,904                             234,254                            234,254
backed securities
TARP Direct Loans and Equity                                                        0                                0                                       0
Investments
Beneficial Interest in Trust                                                        0                                0                                   0
Inventory and Related Property                                                      0                                0                                   0
Property, Plant and Equipment                                                      28                               38                                  38
Debt and Equity Securities                                                          0                                0                                   0
Investment in Government sponsored                                                  0                                0                                   0
enterprises (GSEs)
Derivative Assets                                                                 0                                   0                                  0
Other Assets                                                                    166                                 546                                546
Total Non-Federal Assets                                                    371,302                             237,772                            237,772

Federal
Fund Balance with Treasury                                                  132,259                             168,032                            168,032
Federal Investments                                                               0                                   0                                  0
Accounts Receivable                                                               1                                   0                                  0
Interest Receivable                                                               0                                   0                                  0
Loans Receivable                                                                  0                                   0                                  0
Transfers Receivable                                                              0                                   0                                  0
Benefit Program Contributions                                                     0                                   0                                  0
Receivable




                                                                                               -1-
                                                                       U.S Department of the Treasury                                         11-15-2010 15:08:57
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:       2010                               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               2010-SEPTEMBER                       2009-SEPTEMBER                     Previously Reported
Advances to Others and Prepayments                                              102                                 141                                141
Other Assets (without reciprocals)                                                0                                   0                                  0
Total Federal Assets                                                        132,362                             168,173                            168,173
Total Assets                                                                503,664                             405,945                            405,945

Liabilities
Non-Federal
Accounts Payable                                                              (4,810)                            (1,919)                             (1,919)
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                                                  (14,479)                            (20,543)                            (20,543)
Liabilities to Government Sponsored                                               0                                   0                                   0
Enterprises
Insurance and Guarantee Program                                                    0                                  0                                      0
Liabilities
Derivative Liabilities                                                            0                                   0                                   0
Other Liabilities                                                            (4,074)                             (3,536)                             (3,536)
Total Non-Federal Liabilities                                               (23,379)                            (26,014)                            (26,014)

Federal
Accounts Payable                                                              (5,390)                            (2,414)                             (2,414)
Federal Debt                                                                       0                                  0                                   0




                                                                                              -2-
                                                                       U.S Department of the Treasury                                          11-15-2010 15:08:57
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:       2010                                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               2010-SEPTEMBER                       2009-SEPTEMBER                      Previously Reported
Interest Payable                                                                 (4)                                 (16)                                (16)
Loans Payable                                                              (374,331)                            (235,369)                           (235,369)
Transfers Payable                                                                 0                                    0                                   0
Benefit Program Contributions                                                    (8)                                  (7)                                 (7)
Payable
Advances from Others and Deferred                                                (96)                                (96)                                (96)
Credits
Liability to the General Fund for                                                  0                                   0                                      0
custodial and other non-entity assets
Other Liabilities (without reciprocals)                                     (12,854)                             (14,969)                            (14,969)
Total Federal Liabilities                                                  (392,683)                            (252,871)                           (252,871)
Total Liabilities                                                          (416,062)                            (278,885)                           (278,885)


Net Position
Net Position-Non-Earmarked Funds                                            (87,598)                            (127,052)                           (127,052)
Net Position-Earmarked Funds                                                     (4)                                  (8)                                 (8)
Total Net Position                                                          (87,602)                            (127,060)                           (127,060)
Total Liabilities and Net Position                                         (503,664)                            (405,945)                           (405,945)




                                                                                              -3-
                                                                       U.S Department of the Treasury                                        11-15-2010 15:08:57
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF NET COST                                    Fiscal Year:       2010                              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               2010-SEPTEMBER                       2009-SEPTEMBER                    Previously Reported
Gross Cost:
Non-Federal Gross Cost                                                      100,219                             44,925                              44,925
Interest on Debt Held by the Public                                               0                                  0                                   0
Gain/Loss from changes in actuarial                                               0                                  0                                   0
assumptions
Total Non-Federal Gross Cost                                                100,219                             44,925                              44,925

Federal Gross Cost
Benefit Program Costs                                                            98                                102                                 102
Imputed Costs                                                                    30                                 32                                  32
Buy/Sell Costs                                                                  384                                335                                 335
Federal Securities Interest Expense                                               0                                  0                                   0
Borrowing and Other Interest                                                 16,222                              9,888                               9,888
Expense
Borrowing Losses                                                                  0                                130                                 130
Other Expenses (without reciprocals)                                              0                                  0                                   0
Total Federal Gross Cost                                                     16,734                             10,487                              10,487
Department Total Gross Cost                                                 116,953                             55,412                              55,412

Earned Revenue
Non-Federal Earned Revenue                                                  (11,328)                            (6,531)                             (6,531)

Federal Earned Revenue
Benefit Program Revenue (exchange)                                                 0                                 0                                  0
Buy/Sell Revenue                                                              (1,070)                             (905)                              (905)
Federal Securities Interest Revenue                                                0                                 0                                  0
(exchange)




                                                                                              -4-
                                                                       U.S Department of the Treasury                                         11-15-2010 15:08:57
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF NET COST                                    Fiscal Year:       2010                               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               2010-SEPTEMBER                       2009-SEPTEMBER                     Previously Reported
Borrowing and Other Interest                                                  (4,881)                            (3,815)                             (3,815)
Revenue (Exchange)
Borrowings Gains                                                                   0                                  0                                   0
Other Revenue (without reciprocals)                                                0                                  0                                   0
Total Federal Earned Revenue                                                  (5,951)                            (4,720)                             (4,720)

Department Total Earned Revenue                                             (17,279)                            (11,251)                            (11,251)

Net Cost                                                                     99,674                              44,161                              44,161




                                                                                              -5-
                                                                       U.S Department of the Treasury                                         11-15-2010 15:08:57
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2010                               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               2010-SEPTEMBER                       2009-SEPTEMBER                     Previously Reported
Beginning Net Position                                                     (127,060)                            (43,336)                            (43,336)
Non-Federal Prior-Period
Adjustments
Non-Federal Prior Period                   I                                       0                                  0                                      0
Adjustments (not restated)
Changes in Accounting Principles                                                   0                                  0                                      0
Corrections of Errors                                                              0                                  0                                      0
Corrections of Errors - Years                                                      0                                  0                                      0
Preceding the Prior Year
Federal Prior-Period Adjustments
Change in Accounting Principles                                                    0                                  0                                      0
Corrections of Errors                                                              0                                  0                                      0
Corrections of Errors - Years                                                      0                                  0                                      0
Preceding the Prior Year
Adjusted Beginning Net Position                                            (127,060)                            (43,336)                            (43,336)
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                                                         (12)                                 0                                      0
Miscellaneous Earned Revenue                                                       0                                  0                                      0




                                                                                              -6-
                                                                       U.S Department of the Treasury                                          11-15-2010 15:08:57
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2010                                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               2010-SEPTEMBER                       2009-SEPTEMBER                      Previously Reported
Total Non-Federal Nonexchange                                                    (12)                                  0                                      0
Revenue

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

Budgetary Financing Sources:
Appropriations received as adjusted                                         (91,606)                            (164,627)                           (164,627)
(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                                                    0                                  18                                  18
unexpended appropriations and
financing sources
Expenditure transfers-in of financing                                              0                                   0                                      0




                                                                                              -7-
                                                                       U.S Department of the Treasury                                          11-15-2010 15:08:57
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                            2010                               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               2010-SEPTEMBER                        2009-SEPTEMBER                     Previously Reported
sources
Expenditure Transfers-out of                                                        0                                  0                                      0
financing sources
Nonexpenditure Transfers-In of                                                      0                                  0                                      0
Financing Sources - Capital Transfers
Nonexpenditure Transfers-out of                                                    19                                  0                                      0
Financing Sources - Capital Transfers
Collections for Others Transferred to                                               0                                  0                                      0
the General Fund
Accrual for Amounts to be Collected                                                 0                                  0                                      0
for Others and Transferred to the
General Fund
Other budgetary financing sources                                               989                                  622                                 622
Total Budgetary Financing Sources                                           (90,598)                            (163,987)                           (163,987)

Other Financing Sources:
Transfers-in Without Reimbursement                                                  0                                  0                                      0
Transfers-out Without                                                               0                                  0                                      0
Reimbursement
Imputed Financing Source                                                         (30)                                (32)                                (32)
Non-Entity Collections Transferred                                                 0                                   0                                   0
to the General Fund
Accrual for Non-entity Amounts to                                                   0                                  0                                      0
be Collected and Transferred to the
General Fund
Other non-budgetary financing                                                30,424                               36,134                              36,134
sources




                                                                                               -8-
                                                                       U.S Department of the Treasury                                          11-15-2010 15:08:57
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2010                                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               2010-SEPTEMBER                       2009-SEPTEMBER                      Previously Reported
Total Other Financing Sources                                                30,394                               36,102                              36,102


Net Cost                                                                     99,674                               44,161                              44,161

Ending Net Position Balance                                                 (87,602)                            (127,060)                           (127,060)




                                                                                              -9-
                                                               U.S. Department of the Treasury                                     11/15/2010 15:21:06
                                                                 Financial Management Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2010                                   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      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                    Type
 4   Fund Balance with Treasury (Note 3)                                              A      D       B                  132,259                 168,032
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported      Line Item Changes
Fund Balance with Treasury                             F                132,259                168,032                   168,032                     0
Total:                                                                  132,259                168,032                   168,032                     0

Line Agency Line Description                                                Status Account NB       F/N      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                    Type
 5   Accounts Receivable (Note 4)                                                     A      D       F                        1                          0
                                                                                   Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported      Line Item Changes
Accounts Receivable                                    F                   1                      0                            0                     0
Total:                                                                     1                      0                            0                     0

Line Agency Line Description                                                Status Account NB       F/N      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                    Type
 6   Other Intragovernmental Assets (Note 8)                                          A      D       B                      102                     141
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported      Line Item Changes
Advances to Others and Prepayments                     F                  102                    141                        141                      0
Total:                                                                    102                    141                        141                      0




                                                                             -1-
                                                               U.S. Department of the Treasury                                     11/15/2010 15:21:06
                                                                 Financial Management Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2010                                   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      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                    Type
 9   Cash and Other Monetary Assets (Note 5)                                          A      D       B                     2,965                  2,414
                                                                                   Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported      Line Item Changes
Cash and Other Monetary Assets                         N                 2,965                  2,414                      2,414                     0
Total:                                                                   2,965                  2,414                      2,414                     0

Line Agency Line Description                                                Status Account NB       F/N      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                    Type
 10 Accounts Receivable, Net (Note 4)                                                 A      D       B                      239                     520
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported      Line Item Changes
Accounts and Taxes Receivable                          N                  239                    520                        520                      0
Total:                                                                    239                    520                        520                      0

Line Agency Line Description                                                Status Account NB       F/N      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                    Type
 11 Credit Program Receivables, Net (Note 6)                                          A      D       N                  367,904                 234,254
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported      Line Item Changes
Loans Receivable and mortgage backed                   N                367,904                234,254                   234,254                     0
securities
Total:                                                                  367,904                  234,254                234,254                          0




                                                                             -2-
                                                             U.S. Department of the Treasury                                     11/15/2010 15:21:06
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                  Fiscal Year: 2010                                   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      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                  Type
 12 General Property, Plant and Equipment, Net (Note 7)                             A      D       B                       28                      38
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported      Line Item Changes
Property, Plant and Equipment                        N                   28                     38                         38                      0
Total:                                                                   28                     38                         38                      0

Line Agency Line Description                                              Status Account NB       F/N      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                  Type
 13 Other Assets (Note 8)                                                           A      D       N                      166                     546
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported      Line Item Changes
Other Assets                                         N                  166                    546                        546                      0
Total:                                                                  166                    546                        546                      0

Line Agency Line Description                                              Status Account NB       F/N      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                  Type
 19 Accounts Payable                                                                L      C       F                        1                          0
                                                                                 Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported      Line Item Changes
Accounts Payable                                     F                    1                     0                            0                     0
Other Liabilities (without reciprocals)              F                    0                     0                            0                     0
Total:                                                                   (1)                    0                            0                     0




                                                                           -3-
                                                             U.S. Department of the Treasury                                      11/15/2010 15:21:06
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2010                                  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    2010-SEPTEMBER           2009-SEPTEMBER
                                                                                    Type
 20 Debt (Note 9)                                                                     L      C      F                  374,335                 235,385
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2010-SEPTEMBER          2009-SEPTEMBER        Previously Reported       Line Item Changes
Interest Payable                                     F                       4                      16                      16                      0
Loans Payable                                        F                 374,331                 235,369                 235,369                      0
Total:                                                                (374,335)               (235,385)               (235,385)                     0
Line Agency Line Description                                                Status Account NB       F/N    2010-SEPTEMBER           2009-SEPTEMBER
                                                                                    Type
 21 Guaranty Agency Federal and Restricted Funds Due to Treasury (Note 5)             L      C      F                    2,965                   2,414
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2010-SEPTEMBER          2009-SEPTEMBER        Previously Reported       Line Item Changes
Accounts Payable                                     F                  2,965                   2,414                    2,414                      0
Total:                                                                 (2,965)                 (2,414)                  (2,414)                     0

Line Agency Line Description                                                Status Account NB       F/N    2010-SEPTEMBER           2009-SEPTEMBER
                                                                                    Type
 22 Payable to Treasury (Note 6)                                                      L      C      F                    2,424                   3,569
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2010-SEPTEMBER          2009-SEPTEMBER        Previously Reported       Line Item Changes
Accounts Payable                                     F                  2,424                       0                        0                      0
Other Liabilities (without reciprocals)              F                      0                   3,569                    3,569                      0
Total:                                                                 (2,424)                 (3,569)                  (3,569)                     0



                                                                             -4-
                                                              U.S. Department of the Treasury                                      11/15/2010 15:21:06
                                                                Financial Management Service
                                                           Governmentwide Financial Report System

                                              GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                   Fiscal Year: 2010                                    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      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                    Type
 23 Other Intragovernmental Liabilities (Note 10)                                     L      C      F                    12,958                  11,503
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported       Line Item Changes
Benefit Program Contributions Payable                 F                      8                      7                         7                      0
Advances from Others and Deferred Credits             F                     96                     96                        96                      0
Other Liabilities (without reciprocals)               F                 12,854                 11,400                    11,400                      0
Total:                                                                 (12,958)               (11,503)                  (11,503)                     0
Line Agency Line Description                                                Status Account NB      F/N      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                    Type
 27 Accounts Payable                                                                  L      C      N                     4,810                   1,919
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported       Line Item Changes
Accounts Payable                                      N                 4,810                  1,919                      1,919                      0
Total:                                                                 (4,810)                (1,919)                    (1,919)                     0

Line Agency Line Description                                                Status Account NB      F/N      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                    Type
 28 Accrued Grant Liability (Note 11)                                                 L      C      N                     3,744                   2,962
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported       Line Item Changes
Other Liabilities                                     N                 3,744                  2,962                      2,962                      0
Total:                                                                 (3,744)                (2,962)                    (2,962)                     0



                                                                             -5-
                                                               U.S. Department of the Treasury                                      11/15/2010 15:21:06
                                                                 Financial Management Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2010                                    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      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                     Type
 29 Liabilities for Loan Guarantees (Note 6)                                           L      C      N                    14,479                  20,543
                                                                                    Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported       Line Item Changes
Loan Guarantee Liabilities                             N                 14,479                 20,543                    20,543                      0
Total:                                                                  (14,479)               (20,543)                  (20,543)                     0

Line Agency Line Description                                                 Status Account NB      F/N      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                     Type
 30 Other Liabilities (Note 10)                                                        L      C      N                       346                     590
                                                                                    Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported       Line Item Changes
Federal Employee and Veteran Benefits                  N                   16                     16                         16                       0
Payable
Other Liabilities                                     N                     330                      574                     574                          0
Total:                                                                     (346)                    (590)                   (590)                         0
Line Agency Line Description                                                 Status Account NB      F/N      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                     Type
 37 Unexpended Appropriations - Earmarked Funds (Note 20)                              E      C      B                         0                          0
                                                                                    Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported       Line Item Changes
Total:                                                                     0                      0                            0                      0




                                                                              -6-
                                                             U.S. Department of the Treasury                                      11/15/2010 15:21:06
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                   Fiscal Year: 2010                                   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     2010-SEPTEMBER           2009-SEPTEMBER
                                                                                    Type
 38 Unexpended Appropriations -Other Funds                                            E      C     B                    94,371                 127,269
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2010-SEPTEMBER         2009-SEPTEMBER         Previously Reported       Line Item Changes
Net Position-Non-Earmarked Funds                     B                  94,371                127,269                  127,269                      0
Total:                                                                 (94,371)              (127,269)                (127,269)                     0

Line Agency Line Description                                                Status Account NB      F/N     2010-SEPTEMBER           2009-SEPTEMBER
                                                                                    Type
 39 Cumulative Results of Operations - Earmarked Funds (Note 20)                      E      C     B                         4                          8
                                                                                   Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2010-SEPTEMBER         2009-SEPTEMBER         Previously Reported       Line Item Changes
Net Position-Earmarked Funds                         B                     4                      8                          8                      0
Total:                                                                    (4)                    (8)                       (8)                      0

Line Agency Line Description                                                Status Account NB      F/N     2010-SEPTEMBER           2009-SEPTEMBER
                                                                                    Type
 40 Cumulative Results of Operations-Other Funds                                      E      C     B                    (6,773)                    (217)
                                                                                   Variance:                                 0                        0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2010-SEPTEMBER         2009-SEPTEMBER         Previously Reported       Line Item Changes
Net Position-Non-Earmarked Funds                     B                 (6,773)                 (217)                     (217)                      0
Total:                                                                  6,773                   217                       217                       0




                                                                             -7-
                                                             U.S. Department of the Treasury                                     11/15/2010 15:21:06
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF NET COST                                          Fiscal Year: 2010                                   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      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                  Type
 43 Total Gross costs                                                              GC      D       B                  116,953                  55,412
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported      Line Item Changes
Imputed Costs                                        F                     30                    32                         32                     0
Buy/Sell Costs                                       F                    384                   335                        335                     0
Benefit Program Costs                                F                     98                   102                        102                     0
Borrowing and Other Interest Expense                 F                 16,222                 9,888                      9,888                     0
Borrowing Losses                                     F                      0                   130                        130                     0
Non-Federal Gross Cost                               N                100,219                44,925                     44,925                     0
Total:                                                                116,953                55,412                     55,412                     0
Line Agency Line Description                                              Status Account NB       F/N      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                  Type
 44 Total Earned Revenue                                                           ER      C       B                    17,279                 11,251
                                                                                 Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2010-SEPTEMBER         2009-SEPTEMBER          Previously Reported      Line Item Changes
Buy/Sell Revenue                                     F                 1,070                    905                        905                     0
Borrowing and Other Interest Revenue                 F                 4,881                  3,815                      3,815                     0
(Exchange)
Non-Federal Earned Revenue                          N                  11,328                    6,531                  6,531                          0
Total:                                                                (17,279)                 (11,251)               (11,251)                         0




                                                                           -8-
                                                                U.S. Department of the Treasury                                    11/15/2010 15:21:06
                                                                  Financial Management Service
                                                             Governmentwide Financial Report System

                                              GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                              Fiscal Year: 2010                                  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    2010-SEPTEMBER           2009-SEPTEMBER
                                                                                     Type
 3   Beginning Balances - Earmarked Funds                                             BN      C       B                       8                       17
                                                                                    Variance:                                 0                        0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N       2010-SEPTEMBER         2009-SEPTEMBER        Previously Reported       Line Item Changes
Beginning Net Position                                B                      8                     17                       17                       0
Total:                                                                      (8)                   (17)                     (17)                      0

Line Agency Line Description                                                 Status Account NB       F/N    2010-SEPTEMBER           2009-SEPTEMBER
                                                                                     Type
 4   Beginning Balances - All Other Funds                                             BN      C       B                    (217)                  (6,187)
                                                                                    Variance:                                 0                        0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N       2010-SEPTEMBER         2009-SEPTEMBER        Previously Reported       Line Item Changes
Beginning Net Position                                B                   (217)                 (6,187)                  (6,187)                     0
Total:                                                                     217                   6,187                    6,187                      0

Line Agency Line Description                                                 Status Account NB       F/N    2010-SEPTEMBER           2009-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       2010-SEPTEMBER         2009-SEPTEMBER        Previously Reported       Line Item Changes
Total:                                                                      0                      0                          0                      0




                                                                              -9-
                                                                 U.S. Department of the Treasury                                    11/15/2010 15:21:06
                                                                   Financial Management Service
                                                              Governmentwide Financial Report System

                                                GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2010                                  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     2010-SEPTEMBER          2009-SEPTEMBER
                                                                                      Type
  9   Other Adjustments (rescission, etc) - All Other Funds                             F      C       B                      (2)                         2
                                                                                     Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2010-SEPTEMBER          2009-SEPTEMBER        Previously Reported      Line Item Changes
Appropriations received as adjusted (rescissions         F                   (2)                     2                          2                     0
and other adjustments)
Total:                                                                          2                       (2)                   (2)                         0
Line Agency Line Description                                                  Status Account NB       F/N     2010-SEPTEMBER          2009-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      2010-SEPTEMBER          2009-SEPTEMBER        Previously Reported      Line Item Changes
Total:                                                                       0                       0                          0                     0


Line Agency Line Description                                                  Status Account NB       F/N     2010-SEPTEMBER          2009-SEPTEMBER
                                                                                      Type
 12 Appropriations Used - All Other Funds                                               F      C       B                 124,506                  86,863
                                                                                     Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description                Status F/N      2010-SEPTEMBER          2009-SEPTEMBER        Previously Reported      Line Item Changes
Nonexpenditure transfers-in of unexpended               F                 124,506                 86,863                   86,863                     0
appropriations and financing sources
Total:                                                                   (124,506)                 (86,863)              (86,863)                         0




                                                                               - 10 -
                                                             U.S. Department of the Treasury                                     11/15/2010 15:21:06
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                           Fiscal Year: 2010                                   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      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                  Type
 14 Nonexchange Revenue - Earmarked Funds                                           F      C       B                        0                          0
                                                                                 Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2010-SEPTEMBER          2009-SEPTEMBER         Previously Reported      Line Item Changes
Total:                                                                   0                       0                           0                     0


Line Agency Line Description                                              Status Account NB       F/N      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                  Type
 15 Nonexchange Revenue - All Other Funds                                           F      C       B                       12                          0
                                                                                 Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2010-SEPTEMBER          2009-SEPTEMBER         Previously Reported      Line Item Changes
Other Taxes and Receipts                             N                   12                      0                           0                     0
Total:                                                                  (12)                     0                           0                     0

Line Agency Line Description                                              Status Account NB       F/N      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                  Type
 17 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     2010-SEPTEMBER          2009-SEPTEMBER         Previously Reported      Line Item Changes
Total:                                                                   0                       0                           0                     0




                                                                           - 11 -
                                                             U.S. Department of the Treasury                                     11/15/2010 15:21:06
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                           Fiscal Year: 2010                                   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      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                  Type
 18 Nonexpenditure Financing Sources - Transfers-Out - All Other Funds              F      C       F                      (19)                    (18)
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2010-SEPTEMBER         2009-SEPTEMBER         Previously Reported      Line Item Changes
Nonexpenditure Transfers-out of unexpended           F                    0                      18                        18                      0
appropriations and financing sources
Nonexpenditure Transfers-out of Financing            F                    19                           0                    0                          0
Sources - Capital Transfers
Total:                                                                     19                      18                      18                          0
Line Agency Line Description                                              Status Account NB       F/N      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                  Type
 22 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      2010-SEPTEMBER         2009-SEPTEMBER         Previously Reported      Line Item Changes
Total:                                                                    0                      0                           0                     0


Line Agency Line Description                                              Status Account NB       F/N      2010-SEPTEMBER          2009-SEPTEMBER
                                                                                  Type
 23 Imputed Financing from Costs Absorbed by Others - All Other Funds               F      C       F                       30                      32
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2010-SEPTEMBER         2009-SEPTEMBER         Previously Reported      Line Item Changes
Imputed Financing Source                             F                    30                     32                        32                      0
Total:                                                                   (30)                   (32)                      (32)                     0


                                                                           - 12 -
                                                             U.S. Department of the Treasury                                      11/15/2010 15:21:06
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                           Fiscal Year: 2010                                    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      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                   Type
 25 Others - Earmarked Funds                                                         F      C      B                         0                          0
                                                                                  Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2010-SEPTEMBER          2009-SEPTEMBER         Previously Reported       Line Item Changes
Total:                                                                   0                       0                           0                      0


Line Agency Line Description                                               Status Account NB      F/N      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                   Type
 26 Others - All Other Funds                                                         F      C      B                   (31,413)                (36,757)
                                                                                  Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2010-SEPTEMBER          2009-SEPTEMBER         Previously Reported       Line Item Changes
Other non-budgetary financing sources                F                (30,424)                (36,135)                 (36,135)                     0
Other budgetary financing sources                    F                   (989)                   (622)                    (622)                     0
Total:                                                                 31,413                  36,757                   36,757                      0
Line Agency Line Description                                               Status Account NB      F/N      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                   Type
 46 Beginning Balances - Earmarked Funds                                            BN      C      B                         0                          0
                                                                                  Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2010-SEPTEMBER          2009-SEPTEMBER         Previously Reported       Line Item Changes
Total:                                                                   0                       0                           0                      0




                                                                           - 13 -
                                                                 U.S. Department of the Treasury                                       11/15/2010 15:21:06
                                                                   Financial Management Service
                                                              Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2010                                     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      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                       Type
 47 Beginning Balances - All Other Funds                                                BN      C       B                   127,269                  49,506
                                                                                      Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2010-SEPTEMBER          2009-SEPTEMBER          Previously Reported       Line Item Changes
Beginning Net Position                                 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      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                       Type
 51 Approprations Received - Earmarked Funds                                             F      C       F                         0                          0
                                                                                      Variance:                                   0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2010-SEPTEMBER          2009-SEPTEMBER          Previously Reported       Line Item Changes
Total:                                                                       0                       0                            0                      0


Line Agency Line Description                                                   Status Account NB       F/N      2010-SEPTEMBER           2009-SEPTEMBER
                                                                                       Type
 52 Appropriations Received - All Other Funds                                            F      C       F                    92,900                 164,927
                                                                                      Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2010-SEPTEMBER          2009-SEPTEMBER          Previously Reported       Line Item Changes
Appropriations received as adjusted (rescissions         F                92,900                  164,927                   164,927                      0
and other adjustments)
Total:                                                                    (92,900)                  (164,927)              (164,927)                         0




                                                                               - 14 -
                                                                U.S. Department of the Treasury                                   11/15/2010 15:21:06
                                                                  Financial Management Service
                                                             Governmentwide Financial Report System

                                              GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                              Fiscal Year: 2010                                 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    2010-SEPTEMBER          2009-SEPTEMBER
                                                                                     Type
 54 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       2010-SEPTEMBER          2009-SEPTEMBER       Previously Reported      Line Item Changes
Total:                                                                      0                       0                         0                     0


Line Agency Line Description                                                 Status Account NB       F/N    2010-SEPTEMBER          2009-SEPTEMBER
                                                                                     Type
 55 Appropriations Transferred - in/out - All Other Funds                              F      C       F                      0                          1
                                                                                    Variance:                                0                          0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N       2010-SEPTEMBER          2009-SEPTEMBER       Previously Reported      Line Item Changes
Other non-budgetary financing sources                 F                     0                        1                        1                     0
Total:                                                                      0                       (1)                     (1)                     0

Line Agency Line Description                                                 Status Account NB       F/N    2010-SEPTEMBER          2009-SEPTEMBER
                                                                                     Type
 57 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       2010-SEPTEMBER          2009-SEPTEMBER       Previously Reported      Line Item Changes
Total:                                                                      0                       0                         0                     0




                                                                              - 15 -
                                                                 U.S. Department of the Treasury                                    11/15/2010 15:21:06
                                                                   Financial Management Service
                                                              Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2010                                  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    2010-SEPTEMBER           2009-SEPTEMBER
                                                                                       Type
 58 Other Adjustments (rescissions, etc) - All Other Funds                               F      C      B                  (1,292)                    (302)
                                                                                      Variance:                                0                        0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2010-SEPTEMBER          2009-SEPTEMBER       Previously Reported       Line Item Changes
Appropriations received as adjusted (rescissions         F                (1,292)                  (302)                   (302)                      0
and other adjustments)
Total:                                                                      1,292                      302                  302                           0
Line Agency Line Description                                                   Status Account NB      F/N    2010-SEPTEMBER           2009-SEPTEMBER
                                                                                       Type
 60 Appropriations Used - Earmarked Funds                                                F      C      B                       0                          0
                                                                                      Variance:                                0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2010-SEPTEMBER          2009-SEPTEMBER       Previously Reported       Line Item Changes
Total:                                                                       0                       0                         0                      0


Line Agency Line Description                                                   Status Account NB      F/N    2010-SEPTEMBER           2009-SEPTEMBER
                                                                                       Type
 61 Appropriations Used - All Other Funds                                                F      C      B                (124,506)                (86,863)
                                                                                      Variance:                                0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2010-SEPTEMBER          2009-SEPTEMBER       Previously Reported       Line Item Changes
Nonexpenditure transfers-in of unexpended              F                 (124,506)                (86,863)               (86,863)                     0
appropriations and financing sources
Total:                                                                    124,506                   86,863                86,863                          0




                                                                               - 16 -
                                                             U.S.Department of the Treasury                              11-15-2010 15:20:04
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2010                             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           2010-SEPTEMBER        2009-SEPTEMBER
 BS              Accounts Receivable                              A                   D                         1                     0
                                                                                 Variance:                          0                     0

Trading         Name                            Status 2010-SEPTEMBER      2009-SEPTEMBER          Previously Reported    Line item Changes
Partner
 8600 Department of Housing and Urban                                1                         0                    0                     0
        Development
                                   Total                             1                         0                    0                     0

Agency FS Status CP Line Description                              Account Type        NB           2010-SEPTEMBER        2009-SEPTEMBER
 BS              Advances to Others and Prepayments               A                   D                        102                   141
                                                                                 Variance:                          0                     0

Trading       Name                              Status 2010-SEPTEMBER      2009-SEPTEMBER          Previously Reported    Line item Changes
Partner
 1400 Department of the Interior                                   102                       141                  141                     0
                                   Total                           102                       141                  141                     0




                                                                          -1-
                                                             U.S.Department of the Treasury                                   11-15-2010 15:20:04
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2010                                 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               2010-SEPTEMBER         2009-SEPTEMBER
 BS              Accounts Payable                                 L                   C                           5,390                  2,414
                                                                                 Variance:                               0                     0

Trading        Name                             Status 2010-SEPTEMBER      2009-SEPTEMBER              Previously Reported     Line item Changes
Partner
 9900 Treasury General Fund                                      5,390                       2,414                   2,414                     0
                                  Total                         (5,390)                      (2,414)                (2,414)                    0


Agency FS Status CP Line Description                              Account Type        NB               2010-SEPTEMBER         2009-SEPTEMBER
 BS              Advances from Others and Deferred Credits        L                   C                             96                     96
                                                                                 Variance:                               0                     0

Trading          Name                           Status 2010-SEPTEMBER      2009-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                                         0                            1                      1                     0
        AFFAIRS
 4900 National Science Foundation                                    0                            2                      2                     0
 7000 Department of Homeland Security                                1                            0                      0                     0
 7500 Department of Health and Human                                93                           91                     91                     0
        Services
                                  Total                            (96)                         (96)                   (96)                    0




                                                                          -2-
                                                             U.S.Department of the Treasury                               11-15-2010 15:20:04
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2010                              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            2010-SEPTEMBER        2009-SEPTEMBER
 BS              Benefit Program Contributions Payable            L                   C                          8                     7
                                                                                 Variance:                           0                     0

Trading         Name                            Status 2010-SEPTEMBER      2009-SEPTEMBER           Previously Reported    Line item Changes
Partner
 1601 Department of Labor                                            3                         3                     3                     0
 2400 Office of Personnel Management                                 5                         4                     4                     0
                                  Total                             (8)                       (7)                   (7)                    0

Agency FS Status CP Line Description                              Account Type        NB            2010-SEPTEMBER        2009-SEPTEMBER
 BS              Interest Payable                                 L                   C                          4                     16
                                                                                 Variance:                           0                     0

Trading       Name                              Status 2010-SEPTEMBER      2009-SEPTEMBER           Previously Reported    Line item Changes
Partner
 2000 Department of the Treasury                                     4                       16                     16                     0
                                  Total                             (4)                      (16)                  (16)                    0




                                                                          -3-
                                                                  U.S.Department of the Treasury                                   11-15-2010 15:20:04
                                                                  Financial Management Service
                                                              Governmentwide Financial Report System

                                                           GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                                Fiscal Year: 2010                                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              2010-SEPTEMBER         2009-SEPTEMBER
 BS              Loans Payable                                          L                   C                         374,331                235,369
                                                                                       Variance:                              0                     0

Trading       Name                              Status 2010-SEPTEMBER            2009-SEPTEMBER             Previously Reported     Line item Changes
Partner
 2000 Department of the Treasury                                    374,331                   235,369                  235,369                      0
                                  Total                             (374,331)                 (235,369)                (235,369)                    0


Agency FS Status CP Line Description                                    Account Type        NB              2010-SEPTEMBER         2009-SEPTEMBER
 BS              Other Liabilities (without reciprocals)                L                   C                         12,854                 14,969
                                                                                       Variance:                              0                     0

Trading          Name                           Status 2010-SEPTEMBER            2009-SEPTEMBER             Previously Reported     Line item Changes
Partner
 1400 Department of the Interior                                           0                          (1)                    (1)                    0
 1500 Department of Justice                                                2                           0                      0                     0
 2000 Department of the Treasury                                           0                           2                      2                     0
 4700 General Services Administration                                      0                         (11)                   (11)                    0
 6900 Department of Transportation                                         1                           0                      0                     0
 7500 Department of Health and Human                                       1                           0                      0                     0
        Services
 9900 Treasury General Fund                                           12,850                       14,973                14,973                     0
 9999 Unidentified                                                         0                            6                     6                     0
                                  Total                              (12,854)                  (14,969)                 (14,969)                    0




                                                                                -4-
                                                             U.S.Department of the Treasury                                      11-15-2010 15:20:04
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                     Fiscal Year: 2010                                 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               2010-SEPTEMBER         2009-SEPTEMBER
 NCS             Borrowing and Other Interest Revenue (Exchange)     ER                  C                           4,881                  3,815
                                                                                    Variance:                               0                     0

Trading       Name                              Status 2010-SEPTEMBER         2009-SEPTEMBER              Previously Reported     Line item Changes
Partner
 2000 Department of the Treasury                                   4,881                        3,815                   3,815                     0
                                  Total                            (4,881)                      (3,815)                (3,815)                    0


Agency FS Status CP Line Description                                 Account Type        NB               2010-SEPTEMBER         2009-SEPTEMBER
 NCS             Buy/Sell Revenue                                    ER                  C                           1,070                   905
                                                                                    Variance:                               0                     0

Trading          Name                           Status 2010-SEPTEMBER         2009-SEPTEMBER              Previously Reported     Line item Changes
Partner
 1200 Department of Agriculture                                         0                            1                      1                     0
 4900 National Science Foundation                                       2                            0                      0                     0
 7000 Department of Homeland Security                                   0                            1                      1                     0
 7500 Department of Health and Human                                   74                           72                     72                     0
        Services
 9900 Treasury General Fund                                          994                          831                    831                      0
                                  Total                            (1,070)                       (905)                  (905)                     0




                                                                             -5-
                                                             U.S.Department of the Treasury                              11-15-2010 15:20:04
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2010                             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           2010-SEPTEMBER        2009-SEPTEMBER
 NCS             Benefit Program Costs                            GC                  D                         98                   102
                                                                                 Variance:                          0                     0

Trading         Name                            Status 2010-SEPTEMBER      2009-SEPTEMBER          Previously Reported    Line item Changes
Partner
 1400 Department of the Interior                                     0                        24                   24                     0
 2400 Office of Personnel Management                                84                        78                   78                     0
 9900 Treasury General Fund                                         14                         0                    0                     0
                                  Total                             98                       102                  102                     0

Agency FS Status CP Line Description                              Account Type        NB           2010-SEPTEMBER        2009-SEPTEMBER
 NCS             Borrowing Losses                                 GC                  D                         0                    130
                                                                                 Variance:                          0                     0

Trading        Name                             Status 2010-SEPTEMBER      2009-SEPTEMBER          Previously Reported    Line item Changes
Partner
 9900 Treasury General Fund                                          0                       130                  130                     0
                                  Total                              0                       130                  130                     0




                                                                          -6-
                                                             U.S.Department of the Treasury                                11-15-2010 15:20:04
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2010                               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             2010-SEPTEMBER        2009-SEPTEMBER
 NCS             Borrowing and Other Interest Expense             GC                  D                        16,222                 9,888
                                                                                 Variance:                             0                    0

Trading       Name                              Status 2010-SEPTEMBER      2009-SEPTEMBER            Previously Reported    Line item Changes
Partner
 2000 Department of the Treasury                                16,222                       9,888                 9,888                    0
                                  Total                         16,222                       9,888                 9,888                    0


Agency FS Status CP Line Description                              Account Type        NB             2010-SEPTEMBER        2009-SEPTEMBER
 NCS             Buy/Sell Costs                                   GC                  D                          384                   335
                                                                                 Variance:                             0                    0

Trading         Name                            Status 2010-SEPTEMBER      2009-SEPTEMBER            Previously Reported    Line item Changes
Partner
 1300 Department of Commerce                                        30                         21                    21                     0
 1400 Department of the Interior                                   194                        146                   146                     0
 1500 Department of Justice                                          0                          1                     1                     0
 1601 Department of Labor                                           12                         12                    12                     0
 1900 Department of State                                            2                          2                     2                     0
 2000 Department of the Treasury                                     1                          3                     3                     0
 2400 Office of Personnel Management                                 6                          8                     8                     0
 4700 General Services Administration                               96                         97                    97                     0
 4900 National Science Foundation                                    1                          1                     1                     0
 6900 Department of Transportation                                  13                          3                     3                     0
 7000 Department of Homeland Security                               11                          1                     1                     0


                                                                          -7-
                                                             U.S.Department of the Treasury                               11-15-2010 15:20:04
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2010                              Period: SEPTEMBER

Entity:    9100 - Department of Education                         Reported in: MILLIONS                   Decimal Point: ZERO
    Amounts presented as debits and credits()
    I = Inactive Line


Trading          Name                           Status 2010-SEPTEMBER      2009-SEPTEMBER           Previously Reported    Line item Changes
Partner
 7500 Department of Health and Human                                 3                         9                     9                     0
        Services
 9500 Independent and Other Agencies                                 9                        10                    10                     0
 9900 Treasury General Fund                                        (11)                       (1)                   (1)                    0
 DE00 Department of Defense                                         17                        22                    22                     0
                                  Total                            384                       335                   335                     0

Agency FS Status CP Line Description                              Account Type        NB            2010-SEPTEMBER        2009-SEPTEMBER
 NCS             Imputed Costs                                    GC                  D                          30                    32
                                                                                 Variance:                           0                     0

Trading         Name                            Status 2010-SEPTEMBER      2009-SEPTEMBER           Previously Reported    Line item Changes
Partner
 2400 Office of Personnel Management                                30                        32                    32                     0
                                  Total                             30                        32                    32                     0




                                                                          -8-
                                                                U.S.Department of the Treasury                             11-15-2010 15:20:04
                                                                Financial Management Service
                                                            Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                      Fiscal Year: 2010                            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          2010-SEPTEMBER        2009-SEPTEMBER
 SCNP            Nonexpenditure Transfers-out of Financing Sources   CF                  D                        19                    0
                 - Capital Transfers
                                                                                    Variance:                         0                     0

Trading                                                  2010-SEPTEMBER       2009-SEPTEMBER         Previously Reported    Line item Changes
Partner       Name                              Status
 9100 Department of Education                                          19                        0                    0                     0
                                  Total                                19                        0                    0                     0


Agency FS Status CP Line Description                                 Account Type        NB          2010-SEPTEMBER        2009-SEPTEMBER
 SCNP            Nonexpenditure Transfers-out of unexpended          CF                  D                        0                     18
                 appropriations and financing sources
                                                                                    Variance:                         0                     0

Trading                                                  2010-SEPTEMBER       2009-SEPTEMBER         Previously Reported    Line item Changes
Partner        Name                             Status
 9900 Treasury General Fund                                             0                       18                   18                     0
                                  Total                                 0                       18                   18                     0




                                                                             -9-
                                                             U.S.Department of the Treasury                                  11-15-2010 15:20:04
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                   Fiscal Year: 2010                                 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             2010-SEPTEMBER        2009-SEPTEMBER
 SCNP            Imputed Financing Source                         F                     C                           30                    32
                                                                                   Variance:                            0                     0

Trading         Name                            Status 2010-SEPTEMBER      2009-SEPTEMBER              Previously Reported    Line item Changes
Partner
 2400 Office of Personnel Management                                30                           32                    32                     0
                                  Total                            (30)                         (32)                  (32)                    0


Agency FS Status CP Line Description                              Account Type          NB             2010-SEPTEMBER        2009-SEPTEMBER
 SCNP            Other budgetary financing sources                F                     C                         (989)                 (622)
                                                                                   Variance:                            0                     0

Trading        Name                             Status 2010-SEPTEMBER      2009-SEPTEMBER              Previously Reported    Line item Changes
Partner
 9900 Treasury General Fund                                       (989)                        (622)                 (622)                    0
                                  Total                            989                         622                    622                     0




                                                                          - 10 -
                                                             U.S.Department of the Treasury                                    11-15-2010 15:20:04
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                   Fiscal Year: 2010                                  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              2010-SEPTEMBER         2009-SEPTEMBER
 SCNP            Other non-budgetary financing sources            F                     C                         (30,424)               (36,134)
                                                                                   Variance:                              0                     0

Trading        Name                             Status 2010-SEPTEMBER      2009-SEPTEMBER               Previously Reported     Line item Changes
Partner
 9900 Treasury General Fund                                    (30,424)                    (36,134)                 (36,134)                    0
                                  Total                         30,424                         36,134                36,134                     0




                                                                          - 11 -
                                                                                                                                                                                 11/15/2010 15:24:30

                                                                                     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: 2010         Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                      Agency Notes:    Note 1

  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        2010 - SEPTEMBER             2009 - 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-
                                                                                                                                                                                               11/15/2010 15:24:30

                                                                                     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: 2010                 Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                         Agency Notes:      Note 1

 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 agencies 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 SFFAS no. 7, par.64.
4                  List all of the agency's components for which 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 for which 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 any additional significant accounting policies specific to your agency not included in   Treasury's crosswalk changed for FY10; therefore, balances for some lines on the
                   GFRS GF006 ¿ FR Notes GFRS.                                                                       statements will differ from and not be comparative to FY09.


                                                                                                                     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 Congresss 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
                                                                                                                     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 identifed as Federal
                                                                                                                     by trading partner and amount (amouunts 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.
7                  Provide any other relevant information pertaining to the Federal Reserve Earnings.
8                  Describe the nature of the related party relationship and transactions pertaining to the
                   amount in the ¿Other Notes Info¿ tab, ¿Related party receivables¿ line.
9                  Describe the nature of the related party relationship and transactions pertaining to the



                                                                                                              -2-
                                                                                                                                                                       11/15/2010 15:24:30

                                                                                   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: 2010         Period: SEPTEMBER
  Entity: 9100       Department of Education                                                                                 Agency Notes:    Note 1

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

Tab: Text Data
Line             Question                                                                                        Answer
                 amount in the ¿Other Notes Info¿ tab, ¿Related party payables¿ line.
10               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.
11               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.
12               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
13               Provide details on the investments in related parties.
14               Provide details on related party leases.
15               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.
16               Provide any other useful information on related parties.




                                                                                                         -3-
                                                                                                                                                                                                        11/15/2010 15:24:30

                                                                                         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: 2010                Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                                  Agency Notes:        Note 2

  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      2010 - SEPTEMBER         2009 - SEPTEMBER
                                                                                        Type
Cash and Other Monetary Assets                                                  D         A                         2,965                   2,414
                                                                                     Variance:                          0                       0           Rounding Method: Millions              Decimal: Zero
Line Status Line Description             2010 - SEPTEMBER                2009 - SEPTEMBER                    Previously Rptd            Line Item Changes
 3            Other cash - not
              restricted
 4            Other cash - restricted                           2,965                          2,414                        2,414                                 0
 5            International monetary
              assets
 7            Foreign currency
              Total                                             2,965                           2,414                          2,414                              0
Threshold

 Line Description                                                  Question                                                                   Answer
 Line Item Notes - Other cash - restricted (2010 -                 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, net of excess collections.
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 governments 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 (BPD)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. At a minimum, describe briefly
                     the significant accounting policies pertaining to this note.


                                                                                                                 -4-
                                                                                                                                                                                                      11/15/2010 15:24:30

                                                                                       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: 2010                 Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                               Agency Notes:        Note 3

  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     2010 - SEPTEMBER         2009 - SEPTEMBER
                                                                                      Type
Accounts and Taxes Receivable                                                 D         A                          239                     520
                                                                                   Variance:                         0                       0          Rounding Method: Millions                Decimal: Zero
Line Status Line Description            2010 - SEPTEMBER               2009 - SEPTEMBER                   Previously Rptd           Line Item Changes
 1            Accounts receivable,                              416                            693                           693                               0
              gross
 2            Related interest
              receivable - accounts
              receivable
 3            Penalties, fines, and
              administrative fees
              receivable
 4            Less: allowance for                              -177                          -173                           -173                               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                                              239                           520                           520                               0
Threshold

 Line Description                                                 Question                                                                  Answer
 Line Item Notes - Accounts receivable, gross (2010 -             Please provide explanations for any amounts that have                    This decrease is primarily due to a decrease in the amount of in-process
 SEPTEMBER)                                                       changed by 10% or more and or greater than 500,000 between               interest recapture (negative special allowance payments) for the FFEL
                                                                  the current fiscal year and prior fiscal year. (Unaudited)               program.
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. At a minimum, describe briefly
                     the significant accounting policies pertainnig to this note.




                                                                                                             -5-
                                                                                                                                                                                                11/15/2010 15:24:30

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

      Note: 04A         Direct Loans Receivable and Mortgage Backed Securities                                                         Fiscal Year: 2010                  Period: SEPTEMBER
   Entity: 9100         Department of Education                                                                                        Agency Notes:       Note 4A

  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     2010 - SEPTEMBER       2009 - SEPTEMBER
                                                                                   Type
Loans Receivable and mortgage backed securities                             D        A                   367,904                 234,254
                                                                                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                    230,177                         1,969                       228,208                     156,807                      4,036                              152,771
             Loans
 4           Federal Family                                 138,887                           5                    138,882                       84,034                         3,080                           80,954
             Education Loan
 14          Facilities Loan                                    794                         300                        494                          660                           365                             295
             Program
 15          Perkins Loan Program                               305                         122                        183                          306                           122                             184
 16
 17
 18
 19          All other loans                                    162                          25                        137                           50                                                            50
             receivable
             Total                                           370,325                     2,421                     367,904                      241,857                          7,603                         234,254
Threshold

 Line Description                                                Question                                                            Answer
 Line Item Notes - Federal Direct Student Loans (CY: Face        Please provide explanations for any amounts that have               The increase is due to new loan originations and consolidations, net of
 Value of Loans Oustanding)                                      changed by 10% or more and or greater than 500,000 between          collections from borrowers.
                                                                 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 negative subsidy transfers, net of upward
 Term Cost of Loans)                                             changed by 10% or more and or greater than 500,000 between          subsidy re-estimates.
                                                                 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 due to FFEL Loans purchased under ECASLA authority
 Value of Loans Oustanding)                                      changed by 10% or more and or greater than 500,000 between          during FY 2010, net of collections from borrowers and redemptions of
                                                                 the current fiscal year and prior fiscal year. (Unaudited)          participation interests in FFEL loans.
 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 - 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 2010.
 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 - Facilities Loan Program (CY: Long-Term        Please provide explanations for any amounts that have               Within threshold.
 Cost of Loans)                                                  changed by 10% or more and or greater than 500,000 between
                                                                 the current fiscal year and prior fiscal year. (Unaudited)



                                                                                                        -6-
                                                                                                                                                                                    11/15/2010 15:24:30

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

   Note: 04A           Direct Loans Receivable and Mortgage Backed Securities                                                  Fiscal Year: 2010               Period: SEPTEMBER
  Entity: 9100         Department of Education                                                                                 Agency Notes:     Note 4A

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



Threshold

Line Description                                               Question                                                     Answer
Line Item Notes - All other loans receivable (CY: Face Value   Please provide explanations for any amounts that have        The increase is due to TEACH loans disbursed during FY 2010, net of
of Loans Oustanding)                                           changed by 10% or more and or greater than 500,000 between   collections from borrowers.
                                                               the current fiscal year and prior fiscal year. (Unaudited)




                                                                                                      -7-
                                                                                                                                                                                       11/15/2010 15:24:30

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

     Note: 04A           Direct Loans Receivable and Mortgage Backed Securities                                                        Fiscal Year: 2010              Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                       Agency Notes:        Note 4A

  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/(Income)                                                            Line Attributes: Dollars
                                                                                                                                 Rounding Method: Millions                     Decimal: Zero
Line Status Line Description            NB       2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd      Line Item Changes
 1             Federal Direct          Debit                      -1,567                     -9,603                     -9,603                          0
               Students Loans
 4             Federal Family          Debit                      -1,073                     -4,085                     -4,085                          0
               Education Loan
14             TEACH Grant             Debit                          21                         -2                         -2                          0
               Subsidy Expense
15                                     Debit
16                                     Debit
17                                     Debit
18                                     Debit
19             All other loans         Debit
               receivable
20             Total                   N/A                        -2,619                    -13,690                    -13,690                          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       2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd      Line Item Changes
 1             Balances for            Debit
               property held Pre-
               1992
 2             Balances for            Debit
               property held Post-
               1991




                                                                                                          -8-
                                                                                                                                                                                                 11/15/2010 15:24:30

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

   Note: 04A        Direct Loans Receivable and Mortgage Backed Securities                                                           Fiscal Year: 2010                   Period: SEPTEMBER
  Entity: 9100       Department of Education                                                                                         Agency Notes:       Note 4A

 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. At a minimum, describe briefly   The Department administers the William D. Ford Federal Direct Student Loan (Direct
                 the significant accounting policies pertaining to this note.                                     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)
                                                                                                                  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.

                                                                                                                  Estimates for credit program receivables and liabilities contain assumptions that have a
                                                                                                                  significant impact on the financial statements. The primary components of this
                                                                                                                  assumption set include, but are not limited to, collections (including loan
                                                                                                                  consolidations), repayments, default rates, prevailing interest rates, and loan volume.
                                                                                                                  Actual loan volume, interest rates, cash flows, and other critical components used in the
                                                                                                                  estimation process may differ significantly from the assumptions made at the time the
                                                                                                                  financial statements are prepared. Minor adjustments to any of these components may
                                                                                                                  create significant changes to the estimate and the amounts recorded.


                                                                                                         -9-
                                                                                                                                                                                        11/15/2010 15:24:30

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

   Note: 04A        Direct Loans Receivable and Mortgage Backed Securities                                                      Fiscal Year: 2010                 Period: SEPTEMBER
  Entity: 9100      Department of Education                                                                                     Agency Notes:      Note 4A

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

Tab: Text Data
Line             Question                                                                                     Answer
                                                                                                              The Department estimates all future cash flows associated with the Direct Loan, FFEL,
                                                                                                              and TEACH Programs. Projected cash flows are used to develop subsidy estimates.
                                                                                                              Subsidy cost can be positive or negative; negative subsidies occur when expected
                                                                                                              program inflows of cash (e.g., repayments and fees) exceed expected outflows.
                                                                                                              Subsidy cost is recorded as the initial amount of the loan guarantee liability when
                                                                                                              guarantees are made or as a valuation allowance to government-owned loans and
                                                                                                              interest receivable (i.e., direct and defaulted guaranteed loans).

                                                                                                              For each program, cash flows are projected over the life of the loans, aggregated by
                                                                                                              loan type, cohort year, and risk category.




                                                                                               - 10 -
                                                                                                                                                                                          11/15/2010 15:24:30

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

      Note: 04B         Loan Guarantees                                                                                              Fiscal Year: 2010               Period: SEPTEMBER
   Entity: 9100         Department of Education                                                                                      Agency Notes:        Note 4B

  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    2010 - SEPTEMBER        2009 - SEPTEMBER
                                                                                  Type
Loan Guarantee Liabilities                                                 C        L                    14,479                 20,543
                                                                               Variance:                      0                      0           Rounding Method: Millions           Decimal: Zero
Line Status Line Description          2010 - SEPTEMBER               2009 - SEPTEMBER               Previously Rptd          Line Item Changes
 1           Federal Family
             Education Loans
 13          Federal Family                                 14,479                     20,543                     20,543                              0
             Education Loans
 14
 15
 16
 17
 18          All other loan
             guarantee liabilities
             Total                                          14,479                     20,543                      20,543                             0
Threshold

 Line Description                                               Question                                                          Answer
 Line Item Notes - Federal Family Education Loans (2010 -       Please provide explanations for any amounts that have             This decrease is mostly due to downward subsidy re-estimates during FY
 SEPTEMBER)                                                     changed by 10% or more and or greater than 500,000 between        2010.
                                                                the current fiscal year and prior fiscal year. (Unaudited)




                                                                                                      - 11 -
                                                                                                                                                                                                   11/15/2010 15:24:30

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

     Note: 04B           Loan Guarantees                                                                                                   Fiscal Year: 2010                Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                           Agency Notes:      Note 4B

  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                     390,463                     381,988                        -13,271                   457,279                      445,439                       -25,855
               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                        390,463                     381,988                        -13,271                   457,279                      445,439                       -25,855
Threshold
 Line Description                                                Question                                                               Answer
 Other Notes Info - Federal Family Education Loans (CY           Please provide explanations for any amounts that have                  This decrease is the result of the Department's purchase of FFEL loans
 Amount Guaranteed by the Government)                            changed by 10% or more and or greater than 500,000                     using its ECASLA authority and enactment of SAFRA legislation that
                                                                 between the current fiscal year and prior fiscal year.                 provided that no FFEL reinsurance or other benefits will be paid on loans
                                                                 (Unaudited)                                                            made by private lenders after June 30, 2010.
 Other Notes Info - Federal Family Education Loans (CY Face      Please provide explanations for any amounts that have                  This decrease is the result of the Department's purchase of FFEL loans
 Value of Loans Outstanding)                                     changed by 10% or more and or greater than 500,000                     using its ECASLA authority and enactment of SAFRA legislation that
                                                                 between the current fiscal year and prior fiscal year.                 provided that no FFEL reinsurance or other benefits will be paid on loans
                                                                 (Unaudited)                                                            made by private lenders after June 30, 2010.




                                                                                                          - 12 -
                                                                                                                                                                                                  11/15/2010 15:24:30

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

   Note: 04B        Loan Guarantees                                                                                                  Fiscal Year: 2010                   Period: SEPTEMBER
  Entity: 9100       Department of Education                                                                                         Agency Notes:        Note 4B

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

Tab: Text Data
Line             Question                                                                                         Answer
1                Provide any other relevant information pertaining to this note. At a minimum, describe briefly   The Department administers the Federal Family Education Loan (FFEL) Program, to
                 the significant accounting policies pertaining to this note.                                     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.

                                                                                                                  The Student Aid and Financial Responsibility Act (SAFRA) was included in the Health
                                                                                                                  Care and Education Reconciliation Act of 2010 (HCERA), effective July 1, 2010.
                                                                                                                  SAFRA provides that no FFEL reinsurance or other benefits will be paid on loans made
                                                                                                                  by private lenders after June 30, 2010. However, FFEL lenders are still obligated to
                                                                                                                  make the subsequent disbursements after June 30, 2010 if the first disbursement of a
                                                                                                                  FFEL loan was made by the FFEL lender on or before June 30, 2010.

                                                                                                                  Under provisions of SAFRA, new loans under the FFEL Program were virtually ended
                                                                                                                  as of July 1, 2010, giving the Department full responsibility for originating all federal
                                                                                                                  student loans as of July 1, 2010. The new legislation effectively requires a transition
                                                                                                                  from guaranteed student loans to full direct lending through the Department under the
                                                                                                                  Direct Loan Program. Federal guarantees on FFEL Program loans and commitments
                                                                                                                  remain in effect for loans made before July 1, 2010 until the loan is sold to the
                                                                                                                  Department through an ECASLA program, consolidated into a direct loan, or otherwise
                                                                                                                  disposed. The FFEL Program will continue to be accounted for under credit reform
                                                                                                                  accounting.

                                                                                                                  Estimates for credit program receivables and liabilities contain assumptions that have a
                                                                                                                  significant impact on the financial statements. The primary components of this
                                                                                                                  assumption set include, but are not limited to, collections (including loan
                                                                                                                  consolidations), repayments, default rates, prevailing interest rates, and loan volume.
                                                                                                                  Actual loan volume, interest rates, cash flows, and other critical components used in the
                                                                                                                  estimation process may differ significantly from the assumptions made at the time the
                                                                                                                  financial statements are prepared. Minor adjustments to any of these components may
                                                                                                                  create significant changes to the estimate and the amounts recorded.

                                                                                                                  The Department estimates all future cash flows associated with the Direct Loan, FFEL,
                                                                                                                  and TEACH Programs. Projected cash flows are used to develop subsidy estimates.



                                                                                                         - 13 -
                                                                                                                                                                                          11/15/2010 15:24:30

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

   Note: 04B        Loan Guarantees                                                                                              Fiscal Year: 2010                 Period: SEPTEMBER
  Entity: 9100      Department of Education                                                                                      Agency Notes:       Note 4B

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

Tab: Text Data
Line             Question                                                                                      Answer
                                                                                                               Subsidy cost can be positive or negative; negative subsidies occur when expected
                                                                                                               program inflows of cash (e.g., repayments and fees) exceed expected outflows.
                                                                                                               Subsidy cost is recorded as the initial amount of the loan guarantee liability when
                                                                                                               guarantees are made or as a valuation allowance to government-owned loans and
                                                                                                               interest receivable (i.e., direct and defaulted guaranteed loans).

                                                                                                               For each program, cash flows are projected over the life of the loans, aggregated by
                                                                                                               loan type, cohort year, and risk category.




                                                                                                - 14 -
                                                                                                                                                                                11/15/2010 15:24:30

                                                                                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: 2010               Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                  Agency Notes:      None

  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     2010 - SEPTEMBER       2009 - SEPTEMBER
                                                                               Type
Inventory and Related Property                                          D        A                          0                  0
                                                                            Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description          2010 - SEPTEMBER           2009 - 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




                                                                                                   - 15 -
                                                                                                                                                                                11/15/2010 15:24:30

                                                                                        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: 2010       Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                      Agency Notes:    None

  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        2010 - SEPTEMBER             2009 - 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




                                                                                                           - 16 -
                                                                                                                                                                               11/15/2010 15:24:30

                                                                                    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: 2010         Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                   Agency Notes:    None

  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       2010 - SEPTEMBER             2009 - 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       2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Seized property      Debit
 2              Forfeited property   Debit
 3              Goods held under     Debit
                price support and
                stabilization
                programs




                                                                                                       - 17 -
                                                                                                                                                                                11/15/2010 15:24:30

                                                                                       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: 2010       Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                       Agency Notes:    None

  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      2010 - SEPTEMBER                2009 - 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. At a minimum, describe briefly
                     the significant accounting policies pertaining to this note.




                                                                                                            - 18 -
                                                                                                                                                                                    11/15/2010 15:24:30

                                                                                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: 2010                Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                   Agency Notes:        Note 6

  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     2010 - SEPTEMBER        2009 - SEPTEMBER
                                                                               Type
Property, Plant and Equipment                                           D        A                          28                 38
                                                                            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                                 163                          125                            38                      155                        103                        52
            beginning of year
 2          Prior-period
            adjustments (not
            restated)
 3          Capitalized                                     12                                                         12                         8                                                   8
            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                                                  22                       -22
            on
            Total                                           175                         147                            28                       163                       125                        38




                                                                                                   - 19 -
                                                                                                                                                                                        11/15/2010 15:24:30

                                                                                       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: 2010             Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                       Agency Notes:        Note 6

  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       2010 - SEPTEMBER             2009 - 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                         172                        160                         160                          0
                software
 6              Assets under            Debit
                capital lease
 7              Leasehold               Debit
                improvements
 8              Other property,         Debit
                plant and
                equipment
 9              Total property,         N/A                           175                        163                         163                          0
                plant and
                equipment




                                                                                                          - 20 -
                                                                                                                                                                                          11/15/2010 15:24:30

                                                                                        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: 2010             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                          Agency Notes:        Note 6

  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        2010 - SEPTEMBER             2009 - 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                         144                        122                          122                          0
                software
 4              Assets under            Credit
                capital lease
 5              Leasehold               Credit
                improvements
 6              Other property,         Credit
                plant, and
                equipment
 7              Total accumulated        N/A                         -147                       -125                          -125                          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        2010 - SEPTEMBER             2009 - 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



                                                                                                           - 21 -
                                                                                                                                                                                                    11/15/2010 15:24:30

                                                                                      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: 2010                 Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                          Agency Notes:      Note 6

  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        2010 - SEPTEMBER             2009 - 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        2010 - SEPTEMBER             2009 - SEPTEMBER                 Previously Rptd        Line Item Changes
 1              Gain/loss on          Credit
                sale/disposition of
                property, plant and
                equipment




Tab: Text Data
 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. 29, par 25).
 2                   Provide any other relevant information pertaining to this note and any material changes from        The Department capitalizes single items of property and equipment with a cost of
                     the prior years' depreciation methods and capitalization thresholds. In addition, describe          $50,000 or more that have an estimated useful life greater than two years. Additionally,
                     briefly the significant accounting policies pertaining to this note.                                the Department capitalizes bulk purchases of property and equipment with an
                                                                                                                         aggregate cost of $500,000 or more. A bulk purchase is defined as the purchase of like
                                                                                                                         items related to a specific project or the purchase of like items occurring within the
                                                                                                                         same fiscal year that have an estimated useful life greater than two years. Property and
                                                                                                                         equipment are depreciated over their estimated useful lives using the straight-line
                                                                                                                         method of depreciation. Internal Use Software meeting the above cost and useful life
                                                                                                                         criteria is also capitalized. Internal Use Software is either purchased off the shelf,
                                                                                                                         internally developed or contractor developed solely to meet the Department's needs.




                                                                                                           - 22 -
                                                                                                                                                                                   11/15/2010 15:24:30

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

     Note: 07             Debt and Equity Securities                                                                               Fiscal Year: 2010               Period: SEPTEMBER
   Entity: 9100           Department of Education                                                                                  Agency Notes:      None

  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     2010 - SEPTEMBER       2009 - SEPTEMBER
                                                                                  Type
Debt and Equity Securities                                                 D        A                          0                  0
                                                                               Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description              2010 - SEPTEMBER          2009 - SEPTEMBER                Previously Rptd        Line Item Changes
 1              Fixed/Debt Securities
                (FASB ASC 320-10-
                50-1 and 320-10-50-
                9): Non-U.S.
                Government Securities
 2              Fixed/Debt Securities
                (FASB ASC 320-10-
                50-1 and 320-10-50-
                9): Commercial
                Securities
 3              Fixed/Debt Securities
                (FASB ASC 320-10-
                50-1 and 320-10-50-
                9): Mortgage/asset
                backed Securities
 4              Fixed/Debt Securities
                (FASB ASC 320-10-
                50-1 and 320-10-50-
                9):Corporate and other
                bonds
 5              All other Fixed
                Income/Debt Securities
                (FASB ASC 320-10-
                50-1 and 320-10-50-
                9) All:Other fixed/debt
                securities
 6              Equity Securities
                (FASB ASC 320-10-
                50-1 and 320-10-50-
                9): Common Stocks
 7              Equity Securities
                (FASB ASC 320-10-
                50-1 and 320-10-50-
                9): Unit Trusts
 8              Equity Securities
                (FASB ASC 320-10-
                50-1 and 320-10-50-
                9): All Other Equity



                                                                                                      - 23 -
                                                                                                                                                                        11/15/2010 15:24:30

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

     Note: 07            Debt and Equity Securities                                                                             Fiscal Year: 2010       Period: SEPTEMBER
   Entity: 9100          Department of Education                                                                                Agency Notes:    None

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


Line Status Line Description            2010 - SEPTEMBER           2009 - SEPTEMBER                Previously Rptd      Line Item Changes
            Securities
 9          Other
            Total




                                                                                                     - 24 -
                                                                                                                                                                                   11/15/2010 15:24:30

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

     Note: 07             Debt and Equity Securities                                                                                Fiscal Year: 2010             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    None

  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: All other
                fixed income/debt
                securiteis
 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




                                                                                                        - 25 -
                                                                                                                                                                                     11/15/2010 15:24:30

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

     Note: 07             Debt and Equity Securities                                                                                Fiscal Year: 2010             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    None

  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 income/debt
                secruties
 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 Available-        N/A
                for-Sale Securities




                                                                                                        - 26 -
                                                                                                                                                                                     11/15/2010 15:24:30

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

     Note: 07             Debt and Equity Securities                                                                                Fiscal Year: 2010             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    None

  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 income/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




                                                                                                        - 27 -
                                                                                                                                                                              11/15/2010 15:24:30

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

     Note: 07             Debt and Equity Securities                                                                                 Fiscal Year: 2010       Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                    Agency Notes:    None

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


       Section: D              Section Name: Other Information                                         No Data Flag: YES         Line Attributes: Dollars
                                                                                                                               Rounding Method: Millions              Decimal: Zero
Line Status Line Description           NB        2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd      Line Item Change
 1              Proceeds from         Debit
                sales of available-
                for-sale securities
                (FASB ASC 320-
                10-50-9)
 2              Gross realized        Debit
                gains (included in
                earnings) from
                sales of available-
                for-sale securities
                (FASB ASC 320-
                10-50-9)
 3              Gross realized        Credit
                losses (included in
                earnings) from
                sales of available-
                for-sale securities
                (FASB ASC 320-
                10-50-9)
 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



                                                                                                         - 28 -
                                                                                                                                                                                11/15/2010 15:24:30

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

     Note: 07             Debt and Equity Securities                                                                                   Fiscal Year: 2010       Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                     Agency Notes:    None

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


       Section: D               Section Name: Other Information                                          No Data Flag: YES         Line Attributes: Dollars
                                                                                                                                 Rounding Method: Millions              Decimal: Zero
Line Status Line Description             NB        2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd      Line Item Change
 7              Net unrealized          Credit
                holding loss on
                available-for-sale
                securities included
                in accumulated
                other
                comprehensive
                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 (FASB
                ASC 320-10-50-
                10)
11              Net gain/loss in        Debit
                accum. other
                comp. income for
                any derivative that
                hedged the
                forecasted
                acquisition of HTM
                security




                                                                                                           - 29 -
                                                                                                                                                                         11/15/2010 15:24:30

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

    Note: 07          Debt and Equity Securities                                                                                 Fiscal Year: 2010       Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                   Agency Notes:    None

 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 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 ASC 320-
                   10-50-9).
4                  Provide the circumstances leading to the decision to sell or transfer the security for held-to-
                   maturity securities (FASB ASC 320-10-50-10).
5                  Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                   the significant accounting policies pertaining to this note.




                                                                                                           - 30 -
                                                                                                                                                                                                     11/15/2010 15:24:30

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

     Note: 08            Other Assets                                                                                                          Fiscal Year: 2010               Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                               Agency Notes:        Note 8

  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      2010 - SEPTEMBER           2009 - SEPTEMBER
                                                                                       Type
Other Assets                                                                   D         A                             166                  546
                                                                                    Variance:                            0                    0            Rounding Method: Millions            Decimal: Zero
Line Status Line Description             2010 - SEPTEMBER               2009 - SEPTEMBER                   Previously Rptd             Line Item Changes
 1             Advances and
               prepayments
 2             FDIC Receivable from
               Resolution Activity
 3             NCUA Loans
 4             Regulatory Assets
 5             Other assets                                      166                            546                            546                              0
               Total                                             166                            546                            546                              0
Threshold

 Line Description                                                  Question                                                                  Answer
 Line Item Notes - Other assets (2010 - SEPTEMBER)                 Please provide explanations for any amounts that have                    Other Assets results primarily from lower in-process disbursements in the
                                                                   changed by 10% or more and or greater than 500,000 between               FFEL Program and lower payments made to grant recipients in advance of
                                                                   the current fiscal year and prior fiscal year. (Unaudited)               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 relevant information pertaining to this note. At a minimum, describe briefly the
                     significant accounting policies pertaining to this note.




                                                                                                              - 31 -
                                                                                                                                                                                                    11/15/2010 15:24:30

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

     Note: 09          Accounts Payable                                                                                                    Fiscal Year: 2010                 Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                             Agency Notes:        Note 9

  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      2010 - SEPTEMBER        2009 - SEPTEMBER
                                                                                    Type
Accounts Payable                                                             C        L                        4,810                   1,919
                                                                                 Variance:                         0                       0           Rounding Method: Millions               Decimal: Zero
Line Status Line Description           2010 - SEPTEMBER              2009 - SEPTEMBER                   Previously Rptd            Line Item Changes
 1          Accounts Payable                                 4,810                         1,919                       1,919                                0
            Total                                            4,810                         1,919                       1,919                                0
Threshold

 Line Description                                               Question                                                                Answer
 Line Item Notes - Accounts Payable (2010 - SEPTEMBER)          Please provide explanations for any amounts that have                   The increase is primarily the result of increased in-process Direct Loan
                                                                changed by 10% or more and or greater than 500,000 between              disbursements due to increase Direct Loan Program loan volume.
                                                                the current fiscal year and prior fiscal year. (Unaudited)
Tab: Text Data                        No Data Flag: YES
 Line              Question                                                                                               Answer
 1                 Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                   the significant accounting policies pertaining to this note.




                                                                                                           - 32 -
                                                                                                                                                                                    11/15/2010 15:24:30

                                                                                     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: 2010             Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                    Agency Notes:    None

  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 (or Held by Non-Federal Custodians) with                                    Rounding Method: Millions                     Decimal: Zero
                                           Fiduciary Activity
Line Status Line Description         NB        CY Par value of the       CY Unamortized discount CY Unamortized premium        CY Net Investment           PY Par value of the PY Unamortized discount
                                                   investment D                               C                       D                                        investment D                         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



                                                                                                           - 33 -
                                                                                                                                                                                 11/15/2010 15:24:30

                                                                                  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: 2010             Period: SEPTEMBER
  Entity: 9100       Department of Education                                                                                    Agency Notes:    None

  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 (or Held by Non-Federal Custodians) with                                    Rounding Method: Millions                     Decimal: Zero
                                        Fiduciary Activity
Line Status Line Description      NB        CY Par value of the       CY Unamortized discount CY Unamortized premium        CY Net Investment           PY Par value of the PY Unamortized discount
                                                investment D                               C                       D                                        investment D                         C
13                               N/A
14                               N/A
15                               N/A
16           Total               N/A

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




                                                                                                        - 34 -
                                                                                                                                                                                   11/15/2010 15:24:30

                                                                                    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: 2010             Period: SEPTEMBER
     Entity: 9100      Department of Education                                                                                    Agency Notes:    None

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


       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           PY Par value of the PY Unamortized discount
                                                  investment D                               C                       D                                        investment D                         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
16             Total               N/A




                                                                                                          - 35 -
                                                                                                                                                                                          11/15/2010 15:24:30

                                                                                       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: 2010            Period: SEPTEMBER
  Entity: 9100           Department of Education                                                                                         Agency Notes:    None

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


      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            PY Unamortized              PY Net Investment
                                                       premium 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
16           Total                    N/A
      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 D           PY Par Value of the PY Unamortized Discount
                                                     investment D                       Discount C                       D                                           investment D                         C
26      I    Total                    N/A

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



Tab: Text Data                          No Data Flag: YES
 Line                Question                                                                                             Answer
 1                   Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                     the significant accounting policies pertaining to this note.




                                                                                                             - 36 -
                                                                                                                                                                                  11/15/2010 15:24:30

                                                                                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: 2010               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    2010 - SEPTEMBER        2009 - SEPTEMBER
                                                                               Type
Federal Employee and Veteran Benefits Payable                          C         L                         16                   16
                                                                            Variance:                       0                    0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description         2010 - SEPTEMBER            2009 - 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




                                                                                                  - 37 -
                                                                                                                                                                                   11/15/2010 15:24:30

                                                                                        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: 2010          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        2010 - SEPTEMBER             2009 - 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 (from
                experience)
 9              Actuarial               Credit
                (gains)/losses (from
                assumption
                changes)
10              Total pension            N/A
                expense (SFFAS
                No. 5, par.72)
11              Less Benefits Paid      Debit
12              Pension and              N/A
                Accrued Benefits


                                                                                                           - 38 -
                                                                                                                                                                                   11/15/2010 15:24:30

                                                                                        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: 2010          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: 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       2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd    Line Item Changes
                Liability-end of
                period




       Section: B                  Section Name: Pension Liability Long-Term Significant Assumptions     No Data Flag: YES         Line Attributes: Percent
                                                 Used in 2010 and 2009 Valuation
Line Status Line Description              NB       2010 - SEPTEMBER             2009 - 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       2010 - SEPTEMBER             2009 - 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



                                                                                                           - 39 -
                                                                                                                                                                                   11/15/2010 15:24:30

                                                                                        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: 2010          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        2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd    Line Item Changes
                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              Actuarial               Credit
                (gains)/losses (from
                experience)
 8              Actuarial               Credit
                (gains)/losses (from
                assumption
                changes)
 9              Total                    N/A
                postretirement
                health benefits
                expense
10              Less claims paid        Debit
11              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 2010 and 2009
                                               Valuation
Line Status Line Description             NB        2010 - SEPTEMBER             2009 - 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




                                                                                                           - 40 -
                                                                                                                                                                                11/15/2010 15:24:30

                                                                                     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: 2010          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       2010 - SEPTEMBER             2009 - 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
                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)




                                                                                                        - 41 -
                                                                                                                                                                             11/15/2010 15:24:30

                                                                                      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: 2010          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 economic assumptions used in
                   determining pension liability and
                   the related expense (example of assumptions: actuarial, economic, interest rate, and trend).
4                  Provide a description of the changes in the significant assumptions used in determining
                   pension liability and the
                   related expense (SFFAS No. 33, par.19).
5                  Provide the long-term projection of the significant economic assumptions used in
                   determining the postretirement
                   health benefits liability and the related expense (example of assumptions: actuarial,
                   economic, interest rate, and
                   trend).
6                  Provide a description of the changes in the significant assumptions used in determining the
                   postretirement health
                   benefits liability and the related expense (SFFAS No. 33, par. 19).
10                 Provide the source(s) of the information entered for ¿Line Item Notes¿ tab numbers 4, 5,
                   and 6.
11                 Provide the source(s) for the components of pension expense entered in Section A.
12                 Provide the source(s) for the interest rate entered in Section B.
13                 Provide the source(s) for the components of postretirement expense entered in Section C.
14                 Provide the source(s) for the interest rate entered in Section D.
17                 Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                   the significant
                   accounting policies pertaining to this note.




                                                                                                             - 42 -
                                                                                                                                                                                  11/15/2010 15:24:30

                                                                                  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: 2010               Period: SEPTEMBER
   Entity: 9100         Department of Education                                                                                   Agency Notes:      None

  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     2010 - SEPTEMBER       2009 - SEPTEMBER
                                                                                 Type
Environmental and Disposal Liabilities                                    C        L                          0                  0
                                                                              Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description             2010 - SEPTEMBER          2009 - SEPTEMBER                Previously Rptd        Line Item Changes
  9
 10
 11
 12
 13
 14          Other Environmental
             and Disposal Liabilities
             Total




                                                                                                     - 43 -
                                                                                                                                                                                      11/15/2010 15:24:30

                                                                                       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: 2010          Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                         Agency Notes:    None

  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       2010 - SEPTEMBER               2009 - 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. At a minimum, describe briefly
                     the significant accounting policies pertaining to this note.




                                                                                                            - 44 -
                                                                                                                                                                                          11/15/2010 15:24:30

                                                                                    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: 2010               Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                            Agency Notes:      None

  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     2010 - SEPTEMBER          2009 - SEPTEMBER
                                                                                   Type
Benefits Due and Payable                                                   C         L                             0                     0
                                                                                Variance:                          0                     0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description          2010 - SEPTEMBER              2009 - SEPTEMBER                   Previously Rptd            Line Item Changes
 9          Other Entitlement
            BenefitsDue and
            Payable
            Total

Tab: Text Data                       No Data Flag: YES
 Line             Question                                                                                               Answer
 1                Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                  the significant accounting policies pertaining to this note.




                                                                                                         - 45 -
                                                                                                                                                                                              11/15/2010 15:24:30

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

     Note: 14            Insurance and Guarantee Program Liabilities                                                                          Fiscal Year: 2010               Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                             Agency Notes:      None

  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      2010 - SEPTEMBER         2009 - SEPTEMBER
                                                                                       Type
Insurance and Guarantee Program Liabilities                                     C        L                             0                     0
                                                                                    Variance:                          0                     0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description              2010 - SEPTEMBER              2009 - 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 or guarantee programs identified in the "Line
                      Item Notes" tab.
 2                    Provide the name, description, and the related amounts of the insurance or guarantee
                      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. At a minimum, describe briefly
                      the significant
                      accounting policies pertaining to this note.




                                                                                                              - 46 -
                                                                                                                                                                                            11/15/2010 15:24:30

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

      Note: 15             Other Liabilities                                                                                                Fiscal Year: 2010               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     2010 - SEPTEMBER       2009 - SEPTEMBER
                                                                                       Type
Other Liabilities                                                               C        L                     4,074                    3,536
                                                                                    Variance:                      0                        0           Rounding Method: Millions       Decimal: Zero
Line Status Line Description                   2010 - SEPTEMBER           2009 - SEPTEMBER               Previously Rptd            Line Item Changes
 1               Deferred revenue                                  182                          467                           467                            0
 2               Accrued wages and                                  25                           21                            21                            0
                 benefits
 4               Other debt
 6               Legal and other
                 contingencies
 7               Grant payments due to                            3,744                      2,962                       2,962                               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                               37                           34                            34                            0
 14              Advances and
                 prepayments
 15              Farm and other
                 subsidies
 16              Deposit funds                                      86                           52                            52                            0
 17              Bonneville Power
                 Administration Non-
                 Federal power projects
                 and capital lease
                 liabilities and disposal
                 liabilities
 18
 19
 20
 21           Other Liabilities
              Total                                               4,074                       3,536                        3,536                             0




                                                                                                           - 47 -
                                                                                                                                                                                                        11/15/2010 15:24:30

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

     Note: 15           Other Liabilities                                                                                                 Fiscal Year: 2010                    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 (2010 - SEPTEMBER)             Please provide explanations for any amounts that have                The change is primarily due to the decrease of in-process excess interest
                                                                  changed by 10% or more and or greater than 500,000 between           recapture.
                                                                  the current fiscal year and prior fiscal year. (Unaudited)
Line Item Notes - Accrued wages and benefits (2010 -              Please provide explanations for any amounts that have                The increase is due to a change in the number of days included in the
SEPTEMBER)                                                        changed by 10% or more and or greater than 500,000 between           accrual.
                                                                  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 (2010 - SEPTEMBER)                         changed by 10% or more and or greater than 500,000 between           American Recovery and Reinvestment Act of 2009 and Education Jobs
                                                                  the current fiscal year and prior fiscal year. (Unaudited)           Fund.

Line Item Notes - Deposit funds (2010 - 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, and accrued liabilities related to
                    page number of the agency's financial report where the amount is identified.                       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. At a minimum, describe briefly
                    the significant
                    accounting policies pertaining to this note.




                                                                                                              - 48 -
                                                                                                                                                                      11/15/2010 15:24:30

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

     Note: 17           Prior-Period Adjustments                                                                             Fiscal Year: 2010       Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                              Agency Notes:    None

  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 - Restated        No Data Flag: YES      Line Attributes: Dollars
                                                                                                                       Rounding Method: Millions              Decimal: Zero
Line Status Line Description        NB                Amount 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              Total               N/A
       Section: B            Section Name: Federal Prior-Period Adjustments - Restated            No Data Flag: YES      Line Attributes: Dollars
                                                                                                                       Rounding Method: Millions              Decimal: Zero
Line Status Line Description        NB                Amount 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              Total               N/A




                                                                                                    - 49 -
                                                                                                                                                                      11/15/2010 15:24:30

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

     Note: 17           Prior-Period Adjustments                                                                             Fiscal Year: 2010       Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                              Agency Notes:    None

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


       Section: C            Section Name: Non-Federal Correction of Errors- Years Preceding      No Data Flag: YES      Line Attributes: Dollars
                                           2009                                                                        Rounding Method: Millions              Decimal: Zero
Line Status Line Description        NB                Amount 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              Total               N/A
       Section: D            Section Name: Federal Correction of Errors - Years Preceding 2009    No Data Flag: YES      Line Attributes: Dollars
                                                                                                                       Rounding Method: Millions              Decimal: Zero
Line Status Line Description        NB                Amount 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              Total               N/A




                                                                                                    - 50 -
                                                                                                                                                                      11/15/2010 15:24:30

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

     Note: 17           Prior-Period Adjustments                                                                             Fiscal Year: 2010       Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                              Agency Notes:    None

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


       Section: E            Section Name: Non-Federal Immaterial Errors                          No Data Flag: YES      Line Attributes: Dollars
                                                                                                                       Rounding Method: Millions              Decimal: Zero
Line Status Line Description        NB                Amount 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              Total               N/A
       Section: F            Section Name: Federal Immaterial Errors                              No Data Flag: YES      Line Attributes: Dollars
                                                                                                                       Rounding Method: Millions              Decimal: Zero
Line Status Line Description        NB                Amount 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              Total               N/A




                                                                                                    - 51 -
                                                                                                                                                                                11/15/2010 15:24:30

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

     Note: 17          Prior-Period Adjustments                                                                                        Fiscal Year: 2010       Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                        Agency Notes:    None

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


       Section: G            Section Name: Closing Package Adjustments                                  No Data Flag: YES          Line Attributes: Dollars
                                                                                                                                 Rounding Method: Millions              Decimal: Zero
Line Status Line Description         NB                  Amount 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          Total                   N/A
Tab: Text Data                        No Data Flag: YES
 Line               Question                                                                                            Answer
 1                  Describe the restatements to the prior year that resulted from correcting errors that occurred
                    in the prior year (data reported in Sections A and B).
 2                  Describe any errors that occurred in years preceding the prior year that adjusted the prior-
                    year beginning net position (data reported in Sections C and D).
 3                  Describe any immaterial errors that occurred in the prior period(s) that were corrected
                    against the current-year operations (data reported in Sections E and F).
 4                  Describe any adjustments of the previous year (2009) reclassification in this year¿s (2010)
                    Closing Package prior-year (2009) reporting (data reported in Section G), excluding
                    amounts reported as restatements in Section A and B.
 5                  Describe the adjustments to the current-year or prior-year beginning net position that
                    resulted from changes in accounting principles as reported on the Reclassified Statement of
                    Changes in Net Position, line 2.1 and/or line 3.1.
 6                  Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                    the significant accounting policies pertaining to this note.




                                                                                                           - 52 -
                                                                                                                                                                                        11/15/2010 15:24:30

                                                                                     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: 2010               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       2010 - SEPTEMBER             2009 - 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       2010 - SEPTEMBER             2009 - 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                                            Line Attributes: Dollars
                                                                                                                               Rounding Method: Millions                       Decimal: Zero
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                           0                          0                         0                          0                        0                         0
                Possible
Line Status Line Description           NB        PY Estimated Range        PY Claim amunt (unable
                                                         (High end)                to determine)
 1              Probable             Credit
 2              Reasonably           Credit                           0                          0
                Possible


                                                                                                        - 53 -
                                                                                                                                                                                       11/15/2010 15:24:30

                                                                                     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: 2010             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       2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd       Line Item Changes
 3        I                          Credit
 4        I                          Credit
 5        I                          Credit




                                                                                                        - 54 -
                                                                                                                                                                                               11/15/2010 15:24:30

                                                                                      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: 2010                 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. At a minimum, describe briefly
                   the significant accounting policies pertaining to this note.




                                                                                                            - 55 -
                                                                                                                                                                                          11/15/2010 15:24:30

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

     Note: 19              Commitments                                                                                                   Fiscal Year: 2010              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                           298                        0                         318                          0
 2              Undelivered orders     Credit                             0                  237,541                           0                  224,535




                                                                                                          - 56 -
                                                                                                                                                                                                        11/15/2010 15:24:30

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

     Note: 19              Commitments                                                                                                          Fiscal Year: 2010                 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. At a minimum, describe briefly
                        the significant accounting policies pertaining to this note.




                                                                                                               - 57 -
                                                                                                                                                                                        11/15/2010 15:24:30

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

     Note: 22            Earmarked Funds                                                                                                Fiscal Year: 2010            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
26              All Other             N/A                                                         4
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                         4

Line Status Line Description          NB         Other non-Federal                 Total assets
                                                         assets D
26              All Other             N/A                                                         4
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                         4




                                                                                                         - 58 -
                                                                                                                                                                                         11/15/2010 15:24:30

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

     Note: 22            Earmarked Funds                                                                                                 Fiscal Year: 2010            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
26              All other             N/A                                                         8
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                         8

Line Status Line Description          NB         Other non-Federal                 Total assets
                                                         assets D
26              All other             N/A                                                         8
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                         8




                                                                                                        - 59 -
                                                                                                                                                                                                  11/15/2010 15:24:30

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

     Note: 22            Earmarked Funds                                                                                                 Fiscal Year: 2010               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
26              All other             N/A                                                                                                                                                                          4
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                                                                                                                                         -4

Line Status Line Description          NB     Total liabilities and net
                                                            position
26              All other             N/A                            -4
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                            -4




                                                                                                         - 60 -
                                                                                                                                                                                                   11/15/2010 15:24:30

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

     Note: 22            Earmarked Funds                                                                                                  Fiscal Year: 2010               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
26              All other             N/A                                                                                                                                                                           8
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                                                                                                                                          -8

Line Status Line Description          NB     Total liabilities and net
                                                            position
26              All other             N/A                            -8
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                            -8




                                                                                                          - 61 -
                                                                                                                                                                                      11/15/2010 15:24:30

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

     Note: 22            Earmarked Funds                                                                                           Fiscal Year: 2010               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       No Data Flag: YES          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      I       All other             N/A
                aggregated
                earmarked funds
22      I                             N/A
23      I                             N/A
24      I                             N/A
25      I                             N/A
26      I       All other earmarked   N/A
                funds
27      I       Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28      I       Total                 N/A

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      I       All other             N/A
                aggregated
                earmarked funds
22      I                             N/A
23      I                             N/A
24      I                             N/A
25      I                             N/A
26      I       All other earmarked   N/A
                funds
27      I       Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28      I       Total                 N/A




                                                                                                      - 62 -
                                                                                                                                                                                         11/15/2010 15:24:30

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

     Note: 22            Earmarked Funds                                                                                              Fiscal Year: 2010               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 - Current                                     Line Attributes: Dollars
                                            Year                                                                                Rounding Method: Millions                      Decimal: Zero
Line Status Line Description          NB              Net position,       Prior-period adjustment   Investment revenue from    Individual income taxes Unemployment and excise      Other taxes and receipts
                                             beginning of period C                              C     Treasury Securities C    and payroll tax withhold               taxes C                             C
                                                                                                                                                     C
26              All other             N/A                             8
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                          -8

Line Status Line Description          NB        Royalties and other            All other financing Program net cost - public        Program net cost -       Non-program expenses       Net position, end of
                                                special revenue C                     sources C                            D     Intragovernmental D                            D                   period
26              All other             N/A                                                                                                              4                                                 -4
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                                                                              4                                                 -4




                                                                                                       - 63 -
                                                                                                                                                                                        11/15/2010 15:24:30

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

     Note: 22            Earmarked Funds                                                                                             Fiscal Year: 2010               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: 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 from    Individual income taxes Unemployment and excise      Other taxes and receipts
                                             beginning of period C                            C      Treasury Securities C    and payroll tax withhold               taxes C                             C
                                                                                                                                                    C
26              All other             N/A                          17
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                         -17

Line Status Line Description          NB        Royalties and other           All other financing Program net cost - public        Program net cost -       Non-program expenses       Net position, end of
                                                special revenue C                    sources C                            D     Intragovernmental D                            D                   period
26              All other             N/A                                                                                                             9                                                 -8
                aggregated
                earmarked funds
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                                                                             9                                                 -8




                                                                                                      - 64 -
                                                                                                                                                                                    11/15/2010 15:24:30

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

     Note: 22            Earmarked Funds                                                                                           Fiscal Year: 2010             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: H              Section Name: Revenue, Financing, Expenses, and Other - Prior         No Data Flag: YES          Line Attributes: Dollars
                                            Year                                                                             Rounding Method: User-Defined                Decimal: User-Defined
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      I                             N/A
22      I                             N/A
23      I                             N/A
24      I                             N/A
25      I                             N/A
26      I       All other earmarked   N/A
                funds
27      I       Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28      I       Total                 N/A

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      I                             N/A
22      I                             N/A
23      I                             N/A
24      I                             N/A
25      I                             N/A
26      I       All other earmarked   N/A
                funds
27      I       Intra-agency          N/A
                earmarked funds
                elimination
                amounts
28      I       Total                 N/A




                                                                                                      - 65 -
                                                                                                                                                                                                         11/15/2010 15:24:30

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

     Note: 22           Earmarked Funds                                                                                                         Fiscal Year: 2010                 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: I             Section Name: Number of Agency Earmarked Funds                                                                Line Attributes: Units


Line Status Line Description          NB      2010 - SEPTEMBER                  2009 - SEPTEMBER                    Previously Rptd        Line Item Changes
 1              Total number of       N/A                         2.0000                        2.0000                       2.0000                         .0000
                earmarked funds




Tab: Text Data
 Line                Question                                                                                                 Answer
 1                   Provide a general description of the individual earmarked funds reported in the Other Notes              Earmarked funds are recorded as specifically identified revenues, often supplemented
                     Info tab (SFFAS No. 27, par. 33). Also describe how the entity accounts for and reports the              by other financing sources, which remain available over time. These funds are required
                     fund (SFFAS No. 27, par. 23.1).                                                                          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.
 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 change in legislation during or subsequent to the reporting period and before the
                     issuance of the financial statements that significantly change 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. At a minimum, describe briefly the significant accounting policies
                     pertaining to this note.




                                                                                                               - 66 -
                                                                                                                                                                                 11/15/2010 15:24:30

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

     Note: 25            Stewardship Land                                                                                         Fiscal Year: 2010              Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                  Agency Notes:     None

  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      CY Beginning Balance                 CY Acquired                  CY Withdrawn   CY Ending Balance         PY Beginning Balance         PY Acquired

 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              Withdrawn Public    N/A
                Land
 6        I     Mission Land        N/A
 7              Water, Power, and   N/A
                Recreation
 8              Geographic          N/A
                Management Areas
 9              National Fish       N/A
                Hatcheries
10              Conservation        N/A
                Areas
11              National Marine     N/A
                Monuments
12              All other           N/A




                                                                                                      - 67 -
                                                                                                                                                                            11/15/2010 15:24:30

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

     Note: 25          Stewardship Land                                                                                            Fiscal Year: 2010        Period: SEPTEMBER
     Entity: 9100      Department of Education                                                                                     Agency Notes:     None

  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             PY Withdrawn              PY 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          Withdrawn Public        N/A
            Land
 6     I    Mission Land            N/A
 7          Water, Power, and       N/A
            Recreation
 8          Geographic              N/A
            Management Areas
 9          National Fish           N/A
            Hatcheries
10          Conservation            N/A
            Areas
11          National Marine         N/A
            Monuments
12          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. At a minimum,
                    describe briefly the significant accounting policies pertaining to this note.




                                                                                                          - 68 -
                                                                                                                                                                               11/15/2010 15:24:30

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

     Note: 26        Heritage Assets                                                                                        Fiscal Year: 2010              Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                Agency Notes:     None

  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




                                                                                                 - 69 -
                                                                                                                                                                        11/15/2010 15:24:30

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

    Note: 26          Heritage Assets                                                                                           Fiscal Year: 2010       Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                  Agency Notes:    None

 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. At a minimum, describe briefly
                   the significant accounting policies pertaining to this note.




                                                                                                           - 70 -
                                                                                                                                                                                            11/15/2010 15:24:30

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

     Note: 27        Fiduciary Activities                                                                                                Fiscal Year: 2010               Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                             Agency Notes:        None

  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        Inv. in Fed. debt secs-          Fid. FBWT (USSGL         Interest Receivable on    Invest. in non-Fed. debt      Cash & cash equivalents         Other assets D
                                              net of unam. prems &         account 1010 only) D       Fed. debt securities D      secs.(& relaed int. rec.)                          D
                                                           discs. D                                                                                      D
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A

Line Status Line Description       NB        Liability due & payable          Other liabilities C   Total fiduciary net assets
                                                 to beneficiaries C
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A
       Section: B         Section Name: Schedule of Fiduciary Net Assets - Deposit Funds -          No Data Flag: YES               Line Attributes: Dollars
                                        Prior Year                                                                                Rounding Method: Millions                         Decimal: Zero
Line Status Line Description       NB        Inv. in Fed. debt secs-          Fid. FBWT (USSGL         Interest Receivable on    Invest. in non-Fed. debt      Cash & cash equivalents         Other assets D
                                              net of unam. prems &         account 1010 only) D       Fed. debt securities D      secs.(& relaed int. rec.)                          D
                                                           discs. D                                                                                      D
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A

Line Status Line Description       NB        Liability due & payable          Other liabilities C   Total fiduciary net assets
                                                 to beneficiaries C
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A



                                                                                                       - 71 -
                                                                                                                                                                                            11/15/2010 15:24:30

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

     Note: 27        Fiduciary Activities                                                                                                Fiscal Year: 2010               Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                             Agency Notes:        None

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


       Section: C         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        Inv. in Fed. debt secs-          Fid. FBWT (USSGL         Interest Receivable on    Invest. in non-Fed. debt      Cash & cash equivalents         Other assets D
                                              net of unam. prems &         account 1010 only) D       Fed. debt securities D      secs.(& relaed int. rec.)                          D
                                                           discs. D                                                                                      D
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A

Line Status Line Description       NB        Liability due & payable          Other liabilities C   Total fiduciary net assets
                                                 to beneficiaries C
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A
       Section: D         Section Name: Schedule of Fiduciary Net Assets - All Other Agency         No Data Flag: YES               Line Attributes: Dollars
                                        Funds - Prior Year                                                                        Rounding Method: Millions                         Decimal: Zero
Line Status Line Description       NB        Inv. in Fed. debt secs-          Fid. FBWT (USSGL         Interest Receivable on    Invest. in non-Fed. debt      Cash & cash equivalents         Other assets D
                                              net of unam. prems &         account 1010 only) D       Fed. debt securities D      secs.(& relaed int. rec.)                          D
                                                           discs. D                                                                                      D
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A

Line Status Line Description       NB        Liability due & payable          Other liabilities C   Total fiduciary net assets
                                                 to beneficiaries C
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A




                                                                                                       - 72 -
                                                                                                                                                                                 11/15/2010 15:24:30

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

      Note: 27          Fiduciary Activities                                                                                            Fiscal Year: 2010        Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                         Agency Notes:     None

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


       Section: E            Section Name: Number of Agency Fiduciary Activities                            No Data Flag: YES        Line Attributes: Units


Line Status Line Description          NB           CY Total number of             PY Total number of
                                                   fiduciary funds- all    fiduciary funds- all funds
                                                               funds
 1                                   N/A
 2                                   N/A
 3                                   N/A
 4                                   N/A



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 (SSFAS No. 31, par. 12).
 5                  Provide a description of any cash equivalents included in the Schedules of Fiduciary Net
                    Assets.
 6                  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)).
 7                  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.
                    22(a)).
 8                  If separate audited financial statements are issued for an individual fiduciary activity, provide
                    information on how the reader can obtain a copy of the financial statements and the audit
                    opinion thereon (SFFAS No. 31, par. 22(b)).
 9                  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).
 10                 Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                    the significant accounting policies pertaining to this note.




                                                                                                               - 73 -
                                                                                                                                                                                                      11/15/2010 15:24:30

                                                                                    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 Government Sponsored Enterprises (GSE)                     Fiscal Year: 2010                  Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                               Agency Notes:        None

  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      2010 - SEPTEMBER            2009 - 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 liquidation pref. val. at   CY increase in liquidation       CY net incr. liq. pref. val.   CY valuation (gain/loss)       CY fair val. at reporting   PY liquidation pref. val. at
                                              beg. of year               pref. val. for CY                                                                                         date                 beg. of year
 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 increase in liquidation     PY net incr. liq. pref. val.      PY valuation (gain/loss)      PY fair val. at reporting
 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 -
                                                                                                                                                                             11/15/2010 15:24:30

                                                                                     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 Government Sponsored Enterprises (GSE)           Fiscal Year: 2010       Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                     Agency Notes:    None

  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: Millions              Decimal: Zero
Line Status Line Description          NB        2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd    Line Item Changes
 1             Revenue               Credit
               recognized from
               acquisition of
               preferred stocks
               and warrants
 2             Revenue               Credit
               recognized from
               dividends and
               periodic
               commitment fees
 3             The dollar amount     Debit
               of liquidation
               preference value
               per share of senior
               preferred stock
       Section: B             Section Name: Other Related Information (in Percentages)                No Data Flag: YES         Line Attributes: Percent


Line Status Line Description          NB        2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd    Line Item Changes
 1             Nominal cost           N/A
               percentage of
               common stock on a
               fully diluted basis
 2             Rate of dividends      N/A




                                                                                                        - 75 -
                                                                                                                                                                                11/15/2010 15:24:30

                                                                                       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 Government Sponsored Enterprises (GSE)              Fiscal Year: 2010       Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                        Agency Notes:    None

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


       Section: C             Section Name: Other Related Information in Shares                           No Data Flag: YES         Line Attributes: Units


Line Status Line Description          NB      2010 - SEPTEMBER                 2009 - SEPTEMBER                  Previously Rptd    Line Item Changes
 1             Number of non-         N/A
               voting senior
               preferred stock -
               shares




Tab: Text Data                          No Data Flag: YES
 Line                Question                                                                                              Answer
 1                   Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                     the significant accounting policies pertaining to this note.




                                                                                                             - 76 -
                                                                                                                                                                                       11/15/2010 15:24:30

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

     Note: 28B           Financial and housing Market Stabilization - Liabilities to Government Sponsored Enterprises (GSE)            Fiscal Year: 2010               Period: SEPTEMBER
   Entity: 9100          Department of Education                                                                                       Agency Notes:      None

  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      2010 - SEPTEMBER        2009 - SEPTEMBER
                                                                                    Type
Liabilities to Government Sponsored Enterprises                              C        L                            0                  0
                                                                                 Variance:                         0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description            2010 - SEPTEMBER              2009 - SEPTEMBER                  Previously Rptd        Line Item Changes
 1           GSE accrued liability
 2           GSE contingent
             liability
 3      I    Keepwell Payable -
             Fannie Mae
 4      I    Keepwell Payable -
             Freddie Mac
 5           Private entities entered
             liability
 6
 7
 8           All other liabilities
             Total




                                                                                                          - 77 -
                                                                                                                                                                                  11/15/2010 15:24:30

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

     Note: 28B         Financial and housing Market Stabilization - Liabilities to Government Sponsored Enterprises (GSE)                Fiscal Year: 2010       Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                          Agency Notes:    None

  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: Millions              Decimal: Zero
Line Status Line Description         NB       2010 - SEPTEMBER                2009 - SEPTEMBER                  Previously Rptd     Line Item Changes
 1             Actual payment       Debit
               made to the GSE




Tab: Text Data                         No Data Flag: YES
 Line               Question                                                                                              Answer
 1                  Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                    the significant accounting policies pertaining to this note.




                                                                                                            - 78 -
                                                                                                                                                                                   11/15/2010 15:24:30

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

     Note: 29A          Derivative Assets                                                                                          Fiscal Year: 2010               Period: SEPTEMBER
   Entity: 9100         Department of Education                                                                                    Agency Notes:      None

  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     2010 - SEPTEMBER       2009 - SEPTEMBER
                                                                                  Type
Derivative Assets                                                          D        A                          0                  0
                                                                               Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description           2010 - SEPTEMBER             2009 - SEPTEMBER                Previously Rptd        Line Item Changes
 1           Interest rate contracts
 2           Foreign exchange
             contracts
 3           Equity contracts
 4           Commodity contracts
 5           Credit contracts
 6           All other contracts
             Total




                                                                                                      - 79 -
                                                                                                                                                                                     11/15/2010 15:24:30

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

     Note: 29A           Derivative Assets                                                                                         Fiscal Year: 2010              Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                   Agency Notes:    None

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

Tab: Other Notes Info.

       Section: A             Section Name: Hedge Derivative Assets                                  No Data Flag: YES         Line Attributes: Dollars
                                                                                                                             Rounding Method: Millions                       Decimal: Zero
Line Status Line Description          NB           CY Cost Basis D      CY Fair Value Adjustment      CY Fair Market Value       PY Cost Basis D       PY Fair Value Adjustment   PY Fair Market Value
                                                                                              D                                                                              D
 1             Interest rate          N/A
               contracts
 2             Foreign exchange       N/A
               contracts
 3             Equity contracts       N/A
 4             Commodity              N/A
               contracts
 5             Credit contracts       N/A
 6             All other contracts    N/A
 7             Total hedge            N/A
               derivative contracts
       Section: B             Section Name: Non-Hedge Derivative Assets                              No Data Flag: YES         Line Attributes: Dollars
                                                                                                                             Rounding Method: Millions                       Decimal: Zero
Line Status Line Description          NB           CY Cost Basis D      CY Fair Value Adjustment      CY Fair Market Value       PY Cost Basis D       PY Fair Value Adjustment   PY Fair Market Value
                                                                                              D                                                                              D
 1             Interest rate          N/A
               contracts
 2             Foreign exchange       N/A
               contracts
 3             Equity contracts       N/A
 4             Commodity              N/A
               contracts
 5             Credit contracts       N/A
 6             All other contracts    N/A
 7             Total non-hedge        N/A
               derivative contracts




                                                                                                       - 80 -
                                                                                                                                                                             11/15/2010 15:24:30

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

     Note: 29A           Derivative Assets                                                                                          Fiscal Year: 2010       Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                    Agency Notes:    None

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


       Section: C             Section Name: Gain/Loss on Derivative Assets Designated as              No Data Flag: YES         Line Attributes: Dollars
                                            Hedging Instruments                                                               Rounding Method: Millions              Decimal: Zero
Line Status Line Description           NB       2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd    Line Item Changes
 1             Interest rate          Debit
               contracts
 2             Foreign exchange       Debit
               contracts
 3             Equity contracts       Debit
 4             Commodity              Debit
               contracts
 5             Credit contracts       Debit
 6             All other contracts    Debit
 7             Total reclassified     N/A
               derivative gain/loss
       Section: D             Section Name: Gain/Loss on Derivative Assets Not Designated as          No Data Flag: YES         Line Attributes: Dollars
                                            Hedging Instruments                                                               Rounding Method: Millions              Decimal: Zero
Line Status Line Description           NB       2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd    Line Item Changes
 1             Interest rate          Debit
               contracts
 2             Foreign exchange       Debit
               contracts
 3             Equity contracts       Debit
 4             Commodity              Debit
               contracts
 5             Credit contracts       Debit
 6             All other contracts    Debit
 7             Total recognized       N/A
               derivative gain/loss




                                                                                                        - 81 -
                                                                                                                                                                        11/15/2010 15:24:30

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

    Note: 29A         Derivative Assets                                                                                         Fiscal Year: 2010       Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                  Agency Notes:    None

 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 disclosures for the objectives for holding or issuing derivatives, the context needed
                   to
                   understand these objectives, as well as strategies for achieving these objectives (FASB ASC
                   815-
                   10-50-1A).
2                  Provide disclosures for the volume of derivative activity (FASB ASC 815-10-50-1B).
3                  Provide disclosures on the location of fair value amounts of derivate instruments (both
                   assets and
                   liabilities, respectively) on the Balance Sheet (FASB ASC 815-10-50-4A).
4                  Provide disclosures on the location of gains or losses recognized into earnings (FASB ASC
                   815-
                   10-50-4A)
5                  Provide a description of the transactions of derivative instruments classified as cashflow
                   hedges
                   that will result in them being reclassified into earnings during the current period (FASB ASC
                   815-
                   10-50-4C).
6                  Provide a description of the nature of trading activities for non-hedge designated derivative
                   instruments and related risks, including how the entity manages those risks (FASB ASC
                   815-10-
                   50-4F).
7                  Provide a description on the existence and nature of credit-risk related contingent features
                   and the
                   circumstances in which the features could be triggered in derivative instruments that are in a
                   net
                   liability position at the end of the reporting period (FASB ASC 815-10-50-4H)
8                  Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                   the
                   significant accounting policies pertaining to this note.




                                                                                                          - 82 -
                                                                                                                                                                                    11/15/2010 15:24:30

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

     Note: 29B           Derivative Liablities                                                                                      Fiscal Year: 2010               Period: SEPTEMBER
   Entity: 9100          Department of Education                                                                                    Agency Notes:      None

  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     2010 - SEPTEMBER       2009 - SEPTEMBER
                                                                                   Type
Derivative Liabilities                                                      C        L                          0                  0
                                                                                Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description              2010 - SEPTEMBER           2009 - SEPTEMBER                Previously Rptd        Line Item Changes
 1            Interest rate contracts
 2            Foreign exchange
              contracts
 3            Equity contracts
 4            Commodity contracts
 5            Credit contracts
 6            All other contracts
              Total




                                                                                                       - 83 -
                                                                                                                                                                                     11/15/2010 15:24:30

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

     Note: 29B           Derivative Liablities                                                                                     Fiscal Year: 2010              Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                   Agency Notes:    None

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

Tab: Other Notes Info.

       Section: A             Section Name: Hedge Derivative Liabilities                             No Data Flag: YES         Line Attributes: Dollars
                                                                                                                             Rounding Method: Millions                       Decimal: Zero
Line Status Line Description           NB          CY Cost Basis C      CY Fair Value Adjustment      CY Fair Market Value       PY Cost Basis C       PY Fair Value Adjustment          PY Fair Value
                                                                                              C                                                                              C
 1             Interest rate          N/A
               contracts
 2             Foreign exchange       N/A
               contracts
 3             Equity contracts       N/A
 4             Commodity              N/A
               contracts
 5             Credit contracts       N/A
 6             All other contracts    N/A
 7             Total hedge            N/A
               derivative amounts
       Section: B             Section Name: Non-Hedge Derivative Liabilities                         No Data Flag: YES         Line Attributes: Dollars
                                                                                                                             Rounding Method: Millions                       Decimal: Zero
Line Status Line Description           NB          CY Cost Basis C      CY Fair Value Adjustment      CY Fair Market Value       PY Cost Basis C       PY Fair Value Adjustment   PY Fair Market Value
                                                                                              C                                                                              C
 1             Interest rate          N/A
               contracts
 2             Foreign exchange       N/A
               contracts
 3             Equity contracts       N/A
 4             Commodity              N/A
               contracts
 5             Credit contracts       N/A
 6             All other contracts    N/A
 7             Total non-hedge        N/A
               derivative amounts




                                                                                                       - 84 -
                                                                                                                                                                              11/15/2010 15:24:30

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

     Note: 29B           Derivative Liablities                                                                                       Fiscal Year: 2010       Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                     Agency Notes:    None

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


       Section: C             Section Name: Gain/Loss on Derivative Liabilities Designated as          No Data Flag: YES         Line Attributes: Dollars
                                            Hedging Instruments                                                                Rounding Method: Millions              Decimal: Zero
Line Status Line Description           NB        2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd    Line Item Changes
 1             Interest rate          Credit
               contracts
 2             Foreign exchange       Credit
               contracts
 3             Equity contracts       Credit
 4             Commodity              Credit
               contracts
 5             Credit contracts       Credit
 6             All Other contracts    Credit
 7             Total reclassified      N/A
               derivativ gain/loss
       Section: D             Section Name: Gain/Loss on Derivative Liabilities Not Designated as      No Data Flag: YES         Line Attributes: Dollars
                                            Hedging Instruments                                                                Rounding Method: Millions              Decimal: Zero
Line Status Line Description           NB        2010 - SEPTEMBER             2009 - SEPTEMBER               Previously Rptd    Line Item Changes
 1             Interest rate          Credit
               contracts
 2             Foreign exchange       Credit
               contracts
 3             Equity contracts       Credit
 4             Commodity              Credit
               contracts
 5             Credit contracts       Credit
 6             All other contracts    Credit
 7             Total recognized        N/A
               derivative gain/loss




                                                                                                         - 85 -
                                                                                                                                                                        11/15/2010 15:24:30

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

    Note: 29B         Derivative Liablities                                                                                     Fiscal Year: 2010       Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                  Agency Notes:    None

 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 disclosures for the objectives for holding or issuing derivatives, the context needed
                   to
                   understand these objectives, as well as strategies for achieving these objectives (FASB ASC
                   815-
                   10-50-1A).
2                  Provide disclosures for the volume of derivative activity (FASB ASC 815-10-50-1B).
3                  Provide disclosures on the location of fair value amounts of derivate instruments (both
                   assets and
                   liabilities, respectively) on the Balance Sheet (FASB ASC Topic 815-10-50-4A).
4                  Provide disclosures on the location of gains or losses recognized into earnings (FASB ASC
                   Topic
                   815-10-50-4A).
5                  Provide a description of the transactions of derivative instruments classified as cashflow
                   hedges
                   that will result in them being reclassified into earnings during the current period (FASB ASC
                   Topic 815-10-50-4C).
6                  Provide a description of the nature of trading activities for non-hedge designated derivative
                   instruments and related risks, including how the entity manages those risks (FASB ASC
                   815-10-
                   50-4F).
7                  Provide a description on the existence and nature of credit-risk related contingent features
                   and the
                   circumstances in which the features could be triggered in derivative instruments that are in a
                   net
                   liability position at the end of the reporting period (FASB ASC 815-10-50-4H).
8                  Provide any other revlevant information pertaining to this note. At a minimum, describe
                   briefly the significant accounting policies pertaining to this note.




                                                                                                          - 86 -
                                                                                                                                                                                 11/15/2010 15:25:36

                                                                                       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: 2010             Period: SEPTEMBER
        Entity: 9100          Department of Education                                                                                      Agency Notes:    None
        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 -
                                                                                                                                                                   11/15/2010 15:25:36

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

 Other Data: 02             Taxes                                                                                        Fiscal Year: 2010             Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                          Agency Notes:    None
      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      2010 - SEPTEMBER         2009 - 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 -
                                                                                                                                                                                     11/15/2010 15:25:36

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

 Other Data: 02                Taxes                                                                                                       Fiscal Year: 2010             Period: SEPTEMBER
         Entity: 9100          Department of Education                                                                                         Agency Notes:    None
        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 -
                                                                                                                                                                       11/15/2010 15:25:36

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

 Other Data: 09            Stewardship Investments                                                                           Fiscal Year: 2010             Period: SEPTEMBER
       Entity: 9100        Department of Education                                                                               Agency Notes:    Note 9
      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 2010                   FY 2009                       FY 2008                FY 2007                 FY 2006
 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 2010                   FY 2009                       FY 2008                FY 2007                 FY 2006
 1                                  Debit
 2                                  Debit
 3                                  Debit
 4                                  Debit
 5                                  Debit
 6            Other investment in   Debit
              development




                                                                                                  - 4 -
                                                                                                                                                                                          11/15/2010 15:25:36

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

 Other Data: 09               Stewardship Investments                                                                                    Fiscal Year: 2010                  Period: SEPTEMBER
        Entity: 9100          Department of Education                                                                                        Agency Notes:         Note 9
       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 2010                   FY 2009                       FY 2008                     FY 2007                      FY 2006
 1               Federal Student Aid    Debit                      11,096                    -22,055                       20,037                       19,650                       50,336
 2               Elementary and         Debit                      21,608                     21,443                       21,583                       21,199                       21,710
                 Secondary Education
 3               Special Education      Debit                      15,227                     15,075                       15,730                       15,402                       15,215
                 and Rehab Services
 4               Other Departmental     Debit                       7,067                       7,150                         4,911                      5,109                        5,353
                 Programs
 5               Salaries and           Debit                         502                        472                           491                         467                          467
                 Administration
 6               Other Investments in   Debit                      44,019                     21,616                               0                           0                            0
                 human capital
     Threshold
      Line Description                                               Question                                                                     Answer
      Other Data Info - Federal Student Aid (FY 2010)                Please provide explanations for any amounts that have                        Change is primarily due to the change in the FFEL Program and
                                                                     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 - Elementary and Secondary Education           Please provide explanations for any amounts that have                        Within threshold.
      (FY 2010)                                                      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 - Special Education and Rehab Services         Please provide explanations for any amounts that have                        Within threshold.
      (FY 2010)                                                      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 Departmental Programs (FY 2010)        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 - Salaries and Administration (FY 2010)        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                        The increase is the result of an increase in the disbursement of
      2010)                                                          changed by 20% or more and or greater than 5,000,000                         funds original made available by the American Recovery and
                                                                     between the current fiscal year and prior fiscal year.                       Reinvestment Act of 2009.
                                                                     (Unaudited)


                                                                                                          - 5 -
                                                                                                                                                                                11/15/2010 15:25:36

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

 Other Data: 09               Stewardship Investments                                                                                 Fiscal Year: 2010             Period: SEPTEMBER
         Entity: 9100         Department of Education                                                                                     Agency Notes:    Note 9
        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 2010                      FY 2009                       FY 2008                FY 2007                 FY 2006
 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 2010                      FY 2009                       FY 2008                FY 2007                 FY 2006
 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 -
                                                                                                                                                                                           11/15/2010 15:25:36

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

Other Data: 09              Stewardship Investments                                                                                     Fiscal Year: 2010                  Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                          Agency Notes:       Note 9
       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,
                                                                                                                        innovation and improvement in postsecondary education.

                                                                                                                        Other investments in human capital - 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


                                                                                                         - 7 -
                                                                                                                                                                                       11/15/2010 15:25:36

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

Other Data: 09              Stewardship Investments                                                                                   Fiscal Year: 2010                Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                       Agency Notes:       Note 9
       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
                                                                                                                      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. P.L. 111-226, enacted on August 10, 2010, created the
                                                                                                                      Education Jobs Fund which provided funding to the Department to assist in saving and
                                                                                                                      creating jobs for the 2010-2011 school year. The Department was given the assignment to
                                                                                                                      disburse these funds to states through formula grants promptly, while ensuring transparency
                                                                                                                      and accountability overall.
    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 -
                                                                                                                                                                 11/15/2010 15:25:36

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

 Other Data: 10             Deferred Maintenance                                                                    Fiscal Year: 2010              Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                     Agency Notes:       None
      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 -
                                                                                                                                                                              11/15/2010 15:25:36

                                                                                     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: 2010             Period: SEPTEMBER
         Entity: 9100         Department of Education                                                                                   Agency Notes:    None
        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       2010 - SEPTEMBER            2009 - 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 -
                                                                                                                                                                       11/15/2010 15:25:36

                                                                                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: 2010             Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                             Agency Notes:    None
      Status: Complete                                                                      I = Inactive Line


  Tab: Other Data Info.
     Section: A               Section Name: Fiscal 2010 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 -
                                                                                                                                                                         11/15/2010 15:25:36

                                                                                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: 2010             Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                Agency Notes:    None
      Status: Complete                                                                        I = Inactive Line


  Tab: Other Data Info.
     Section: A               Section Name: Fiscal 2010 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 2010 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 -
                                                                                                                                                                                    11/15/2010 15:25:36

                                                                                         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: 2010             Period: SEPTEMBER
        Entity: 9100           Department of Education                                                                                        Agency Notes:    None
        Status: Complete                                                                                 I = Inactive Line


  Tab: Other Data Info.
      Section: B                 Section Name: Fiscal 2010 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 2010 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 2010 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).




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