oversight

Financial Statement Audits for Fiscal Years 2011 and 2010 -U.S. Department of Education Special Purpose Financial Statements

Published by the Department of Education, Office of Inspector General on 2011-11-15.

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

                                   UNITED STATES DEPARTMENT OF EDUCATION
                                                        OFFICE OF INSPECTOR GENERAL

                                                                                                                           Audit Services




November 15, 2011


MEMORANDUM


TO:                  Thomas Skelly
                     Acting Chief Financial Officer
                     Office of the Chief Financial Officer


FROM:                Keith West
                     Assistant Inspector General for Audit

SUBJECT:             FINAL AUDIT REPORT
                     Financial Statement Audits for Fiscal Years 2011 and 2010
                     U.S. Department of Education Special Purpose Financial Statements
                     Control Number ED-OIG/A17L0003

Attached is the subject final report on the results of the audits of the special purpose financial
statements (closing package) of the U.S. Department of Education for fiscal years 2011 and
2010. This report will also be provided to the Secretary. The report should be read in
conjunction with the Department’s special purpose financial statements and notes to fully
understand the context of the information contained therein. The auditors have discussed the
report with you or appropriate members of your staff at various times throughout the audit.

We appreciate the cooperation given Ernst & Young, LLP and the OIG, during the audits.
Should you have any questions concerning the report, please contact me or Greg Spencer at 245-
7041 or 245-6015, respectively.


Attachment

Electronic Distribution List:

Tony Miller, Deputy Secretary
Martha Kanter, Under Secretary
Joanne Weiss, Chief of Staff
Phil Maestri, OS
Harold Jenkins, OGC
Tracey Sasser, OGC
Hugh Hurwitz, OCFO
Danny Harris, OCIO
Gary Wood, OCFO
 The Department of Education's mission is to promote student achievement and preparation for global competitiveness by fostering educational
                                                   excellence and ensuring equal access.
Craig Stanton, OCFO
William Graham, BS
James Runcie, FSA
John Hurt, FSA
Anthony Chevez, FSA
Richard Gordon, FSA




The Department of Education's mission is to promote student achievement and preparation for global competitiveness by fostering educational
                                                  excellence and ensuring equal access.
                                                                       U.S Department of the Treasury                                         11-15-2011 17:53:46
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:        2011                              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               2011-SEPTEMBER                        2010-SEPTEMBER                    Previously Reported
Assets:
Non-Federal
Cash and Other Monetary Assets                                                1,664                               2,965                              2,965
Accounts and Taxes Receivable                                                   138                                 239                                239
Loans Receivable and mortgage                                               530,491                             367,904                            367,904
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                                                      16                               28                                  28
Debt and Equity Securities                                                          0                                0                                   0
Investment in Government sponsored                                                  0                                0                                   0
enterprises (GSEs)
Derivative Assets                                                                 0                                   0                                  0
Other Assets                                                                     98                                 166                                166
Total Non-Federal Assets                                                    532,407                             371,302                            371,302

Federal
Fund Balance with Treasury                                                  114,085                             132,259                            132,259
Federal Investments                                                               0                                   0                                  0
Accounts Receivable                                                               0                                   1                                  1
Accounts Receivable, capital transfers                                            0                                   0                                  0
Interest Receivable                                                               0                                   0                                  0
Loans Receivable                                                                  0                                   0                                  0
Transfers Receivable                                                              0                                   0                                  0
Benefit Program Contributions                                                     0                                   0                                  0




                                                                                               -1-
                                                                       U.S Department of the Treasury                                         11-15-2011 17:53:46
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:       2011                               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               2011-SEPTEMBER                       2010-SEPTEMBER                     Previously Reported
Receivable
Advances to Others and Prepayments                                               50                                 102                                102
Other Assets (without reciprocals)                                                0                                   0                                  0
Total Federal Assets                                                        114,135                             132,362                            132,362
Total Assets                                                                646,542                             503,664                            503,664

Liabilities
Non-Federal
Accounts Payable                                                              (4,248)                            (4,810)                             (4,810)
Federal Debt Securities Held by the                                                0                                  0                                   0
Public
Federal Employee and Veteran                                                     (18)                               (16)                                (16)
Benefits Payable
Environmental and Disposal                                                         0                                  0                                      0
Liabilities
Benefits Due and Payable                                                          0                                   0                                   0
Loan Guarantee Liabilities                                                  (10,025)                            (14,479)                            (14,479)
Liabilities to Government Sponsored                                               0                                   0                                   0
Enterprises
Insurance and Guarantee Program                                                    0                                  0                                      0
Liabilities
Derivative Liabilities                                                            0                                   0                                   0
Other Liabilities                                                            (4,127)                             (4,074)                             (4,074)
Total Non-Federal Liabilities                                               (18,418)                            (23,379)                            (23,379)

Federal
Accounts Payable                                                              (1,698)                            (2,966)                             (5,390)




                                                                                              -2-
                                                                       U.S Department of the Treasury                                          11-15-2011 17:53:46
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:       2011                                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               2011-SEPTEMBER                       2010-SEPTEMBER                      Previously Reported
Accounts Payable, capital transfers                                          (3,890)                              (2,424)                                  0
Federal Debt                                                                      0                                    0                                   0
Interest Payable                                                                  0                                   (4)                                 (4)
Loans Payable                                                              (547,108)                            (374,331)                           (374,331)
Transfers Payable                                                                 0                                    0                                   0
Benefit Program Contributions                                                   (10)                                  (8)                                 (8)
Payable
Advances from Others and Deferred                                                (89)                                (96)                                (96)
Credits
Liability to the General Fund for                                                  0                                   0                                      0
custodial and other non-entity assets
Other Liabilities (without reciprocals)                                      (6,744)                             (12,854)                            (12,854)
Total Federal Liabilities                                                  (559,539)                            (392,683)                           (392,683)
Total Liabilities                                                          (577,957)                            (416,062)                           (416,062)


Net Position
Net Position-Non-Earmarked Funds                                            (68,581)                             (87,598)                            (87,598)
Net Position-Earmarked Funds                                                     (4)                                  (4)                                 (4)
Total Net Position                                                          (68,585)                             (87,602)                            (87,602)
Total Liabilities and Net Position                                         (646,542)                            (503,664)                           (503,664)




                                                                                              -3-
                                                                       U.S Department of the Treasury                                         11-15-2011 17:53:46
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF NET COST                                    Fiscal Year:       2011                               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               2011-SEPTEMBER                       2010-SEPTEMBER                     Previously Reported
Gross Cost:
Non-Federal Gross Cost                                                       69,173                             100,219                            100,219
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                                                 69,173                             100,219                            100,219

Federal Gross Cost
Benefit Program Costs                                                           123                                  98                                  98
Imputed Costs                                                                    38                                  30                                  30
Buy/Sell Costs                                                                  379                                 384                                 384
Federal Securities Interest Expense                                               0                                   0                                   0
Borrowing and Other Interest                                                 20,197                              16,222                              16,222
Expense
Borrowing Losses                                                                  0                                   0                                  0
Other Expenses (without reciprocals)                                              0                                   0                                  0
Total Federal Gross Cost                                                     20,737                              16,734                             16,734
Department Total Gross Cost                                                  89,910                             116,953                            116,953

Earned Revenue
Non-Federal Earned Revenue                                                  (15,008)                            (11,328)                            (11,328)

Federal Earned Revenue
Benefit Program Revenue (exchange)                                                 0                                  0                                   0
Buy/Sell Revenue                                                                   0                                (76)                             (1,070)
Federal Securities Interest Revenue                                                0                                  0                                   0
(exchange)




                                                                                              -4-
                                                                       U.S Department of the Treasury                                         11-15-2011 17:53:46
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF NET COST                                    Fiscal Year:       2011                               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               2011-SEPTEMBER                       2010-SEPTEMBER                     Previously Reported
Borrowing and Other Interest                                                  (4,457)                            (4,881)                             (4,881)
Revenue (Exchange)
Borrowings Gains                                                                   0                                  0                                   0
Other Revenue (without reciprocals)                                             (932)                              (994)                                  0
Total Federal Earned Revenue                                                  (5,389)                            (5,951)                             (5,951)

Department Total Earned Revenue                                             (20,397)                            (17,279)                            (17,279)

Net Cost                                                                     69,513                              99,674                              99,674




                                                                                              -5-
                                                                       U.S Department of the Treasury                                          11-15-2011 17:53:46
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                            2011                               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               2011-SEPTEMBER                        2010-SEPTEMBER                     Previously Reported
Beginning Net Position                                                      (87,602)                            (127,060)                           (127,060)
Non-Federal Prior-Period
Adjustments
Changes in Accounting Principles -                                                  0                                  0                                      0
Non Federal
Corrections of Errors - Non Federal                                                 0                                  0                                      0
Corrections of Errors - Years                                                       0                                  0                                      0
Preceding the Prior Year - Non
Federal
Federal Prior-Period Adjustments
Change in Accounting Principles -                                                   0                                  0                                      0
Federal
Corrections of Errors - Federal                                                     0                                  0                                      0
Corrections of Errors - Years                                                       0                                  0                                      0
Preceding the Prior Year - Federal
Adjusted Beginning Net Position                                             (87,602)                            (127,060)                           (127,060)
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                                                           (4)                               (12)                                (12)




                                                                                               -6-
                                                                       U.S Department of the Treasury                                         11-15-2011 17:53:46
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                            2011                              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               2011-SEPTEMBER                        2010-SEPTEMBER                    Previously Reported
Miscellaneous Earned Revenue                                                        0                                 0                                   0
Total Non-Federal Nonexchange                                                      (4)                              (12)                                (12)
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                                         (93,346)                            (91,606)                            (91,606)
(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                                 0                                      0
unexpended appropriations and
financing sources




                                                                                               -7-
                                                                       U.S Department of the Treasury                                         11-15-2011 17:53:46
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                            2011                              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               2011-SEPTEMBER                        2010-SEPTEMBER                    Previously Reported
Expenditure transfers-in of financing                                               0                                 0                                      0
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                                                    24                                19                                  19
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                                            (1,300)                                989                                 989
Total Budgetary Financing Sources                                           (94,622)                            (90,598)                            (90,598)

Other Financing Sources:
Transfers-in Without Reimbursement                                                  0                                 0                                      0
Transfers-out Without                                                               0                                 0                                      0
Reimbursement
Imputed Financing Source                                                         (38)                               (30)                                (30)
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                                                44,168                              30,424                              30,424




                                                                                               -8-
                                                                       U.S Department of the Treasury                                         11-15-2011 17:53:46
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2011                               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               2011-SEPTEMBER                       2010-SEPTEMBER                     Previously Reported
sources
Total Other Financing Sources                                                44,130                              30,394                              30,394


Net Cost                                                                     69,513                              99,674                              99,674

Ending Net Position Balance                                                 (68,585)                            (87,602)                            (87,602)




                                                                                              -9-
                                                             U.S.Department of the Treasury                              11-15-2011 17:59:15
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2011                             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           2011-SEPTEMBER        2010-SEPTEMBER
 BS              Accounts Receivable                              A                   D                         0                     1
                                                                                 Variance:                          0                     0

Trading         Name                            Status 2011-SEPTEMBER      2010-SEPTEMBER          Previously Reported    Line item Changes
Partner
 8600 Department of Housing and Urban                                0                         1                    1                     0
        Development
                                   Total                             0                         1                    1                     0

Agency FS Status CP Line Description                              Account Type        NB           2011-SEPTEMBER        2010-SEPTEMBER
 BS              Advances to Others and Prepayments               A                   D                         50                   102
                                                                                 Variance:                          0                     0

Trading       Name                              Status 2011-SEPTEMBER      2010-SEPTEMBER          Previously Reported    Line item Changes
Partner
 1400 Department of the Interior                                    50                       102                  102                     0
                                   Total                            50                       102                  102                     0




                                                                          -1-
                                                              U.S.Department of the Treasury                                   11-15-2011 17:59:15
                                                              Financial Management Service
                                                          Governmentwide Financial Report System

                                                       GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                           Fiscal Year: 2011                                 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               2011-SEPTEMBER         2010-SEPTEMBER
 BS              Accounts Payable                                  L                   C                           1,698                  2,966
                                                                                  Variance:                               0                     0

Trading        Name                             Status 2011-SEPTEMBER       2010-SEPTEMBER              Previously Reported     Line item Changes
Partner
 9900 Treasury General Fund                                       1,698                       2,966                   5,390                (2,424)
                                  Total                          (1,698)                      (2,966)                (5,390)               (2,424)


Agency FS Status CP Line Description                               Account Type        NB               2011-SEPTEMBER         2010-SEPTEMBER
 BS              Accounts Payable, capital transfers               L                   C                           3,890                  2,424
                                                                                  Variance:                               0                     0

Trading        Name                             Status 2011-SEPTEMBER       2010-SEPTEMBER              Previously Reported     Line item Changes
Partner
 9100 Department of Education                                     3,890                           0                       0                     0
 9900 Treasury General Fund                                           0                       2,424                       0                 2,424
                                  Total                          (3,890)                      (2,424)                     0                 2,424




                                                                           -2-
                                                             U.S.Department of the Treasury                               11-15-2011 17:59:15
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2011                              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            2011-SEPTEMBER        2010-SEPTEMBER
 BS              Advances from Others and Deferred Credits        L                   C                          89                    96
                                                                                 Variance:                           0                     0

Trading          Name                           Status 2011-SEPTEMBER      2010-SEPTEMBER           Previously Reported    Line item Changes
Partner
 1200 Department of Agriculture                                      0                         1                     1                     0
 2000 Department of the Treasury                                     1                         0                     0                     0
 2800 Social Security Administration                                 0                         1                     1                     0
 3600 DEPARTMENT OF VETERANS                                         1                         0                     0                     0
        AFFAIRS
 4900 National Science Foundation                                    1                        0                      0                     0
 7000 Department of Homeland Security                                1                        1                      1                     0
 7500 Department of Health and Human                                84                       93                     93                     0
        Services
 8600 Department of Housing and Urban                                1                         0                     0                     0
        Development
                                  Total                            (89)                      (96)                  (96)                    0

Agency FS Status CP Line Description                              Account Type        NB            2011-SEPTEMBER        2010-SEPTEMBER
 BS              Benefit Program Contributions Payable            L                   C                          10                    8
                                                                                 Variance:                           0                     0

Trading         Name                            Status 2011-SEPTEMBER      2010-SEPTEMBER           Previously Reported    Line item Changes
Partner
 1601 Department of Labor                                            4                         3                     3                     0
 2400 Office of Personnel Management                                 6                         5                     5                     0
                                  Total                            (10)                       (8)                   (8)                    0

                                                                          -3-
                                                             U.S.Department of the Treasury                              11-15-2011 17:59:15
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2011                             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 2011-SEPTEMBER      2010-SEPTEMBER          Previously Reported    Line item Changes
Partner




Agency FS Status CP Line Description                              Account Type        NB           2011-SEPTEMBER        2010-SEPTEMBER
 BS              Interest Payable                                 L                   C                         0                     4
                                                                                 Variance:                          0                     0

Trading       Name                              Status 2011-SEPTEMBER      2010-SEPTEMBER          Previously Reported    Line item Changes
Partner
 2000 Department of the Treasury                                    0                         4                     4                     0
                                  Total                             0                        (4)                   (4)                    0




                                                                          -4-
                                                                  U.S.Department of the Treasury                                   11-15-2011 17:59:15
                                                                  Financial Management Service
                                                              Governmentwide Financial Report System

                                                           GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                                Fiscal Year: 2011                                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              2011-SEPTEMBER         2010-SEPTEMBER
 BS              Loans Payable                                          L                   C                         547,108                374,331
                                                                                       Variance:                              0                     0

Trading       Name                              Status 2011-SEPTEMBER            2010-SEPTEMBER             Previously Reported     Line item Changes
Partner
 2000 Department of the Treasury                                    547,108                   374,331                  374,331                      0
                                  Total                             (547,108)                 (374,331)                (374,331)                    0


Agency FS Status CP Line Description                                    Account Type        NB              2011-SEPTEMBER         2010-SEPTEMBER
 BS              Other Liabilities (without reciprocals)                L                   C                          6,744                 12,854
                                                                                       Variance:                              0                     0

Trading          Name                           Status 2011-SEPTEMBER            2010-SEPTEMBER             Previously Reported     Line item Changes
Partner
 1500 Department of Justice                                                0                           2                      2                     0
 6900 Department of Transportation                                         0                           1                      1                     0
 7500 Department of Health and Human                                       0                           1                      1                     0
        Services
 9900 Treasury General Fund                                            6,744                       12,850                12,850                     0
                                  Total                               (6,744)                  (12,854)                 (12,854)                    0




                                                                                -5-
                                                             U.S.Department of the Treasury                                      11-15-2011 17:59:15
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                     Fiscal Year: 2011                                 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               2011-SEPTEMBER         2010-SEPTEMBER
 NCS             Borrowing and Other Interest Revenue (Exchange)     ER                  C                           4,457                  4,881
                                                                                    Variance:                               0                     0

Trading       Name                              Status 2011-SEPTEMBER         2010-SEPTEMBER              Previously Reported     Line item Changes
Partner
 2000 Department of the Treasury                                   4,457                        4,881                   4,881                     0
                                  Total                            (4,457)                      (4,881)                (4,881)                    0


Agency FS Status CP Line Description                                 Account Type        NB               2011-SEPTEMBER         2010-SEPTEMBER
 NCS             Buy/Sell Revenue                                    ER                  C                             0                      76
                                                                                    Variance:                               0                     0

Trading          Name                           Status 2011-SEPTEMBER         2010-SEPTEMBER              Previously Reported     Line item Changes
Partner
 4900 National Science Foundation                                       0                            2                      2                     0
 7500 Department of Health and Human                                    0                           74                     74                     0
        Services
 9900 Treasury General Fund                                             0                            0                   994                   (994)
                                  Total                                 0                          (76)                (1,070)                 (994)




                                                                             -6-
                                                              U.S.Department of the Treasury                                11-15-2011 17:59:15
                                                              Financial Management Service
                                                          Governmentwide Financial Report System

                                                       GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                   Fiscal Year: 2011                               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             2011-SEPTEMBER        2010-SEPTEMBER
 NCS             Other Revenue (without reciprocals)               ER                  C                          932                   994
                                                                                  Variance:                            0                     0

Trading         Name                            Status 2011-SEPTEMBER       2010-SEPTEMBER            Previously Reported    Line item Changes
Partner
 1300 Department of Commerce                                          2                          0                     0                     0
 3600 DEPARTMENT OF VETERANS                                          2                          0                     0                     0
        AFFAIRS
 4900 National Science Foundation                                     2                         0                      0                     0
 5000 Securities and Exchange Commission                              2                         0                      0                     0
 7000 Department of Homeland Security                                 2                         0                      0                     0
 9900 Treasury General Fund                                         922                       994                      0                   994
                                  Total                            (932)                      (994)                    0                   994

Agency FS Status CP Line Description                               Account Type        NB             2011-SEPTEMBER        2010-SEPTEMBER
 NCS             Benefit Program Costs                             GC                  D                          123                    98
                                                                                  Variance:                            0                     0

Trading         Name                            Status 2011-SEPTEMBER       2010-SEPTEMBER            Previously Reported    Line item Changes
Partner
 2400 Office of Personnel Management                                 96                         84                    84                     0
 9900 Treasury General Fund                                          27                         14                    14                     0
                                  Total                             123                         98                    98                     0




                                                                           -7-
                                                             U.S.Department of the Treasury                                 11-15-2011 17:59:15
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2011                                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              2011-SEPTEMBER        2010-SEPTEMBER
 NCS             Borrowing and Other Interest Expense             GC                  D                         20,197                16,222
                                                                                 Variance:                             0                     0

Trading       Name                              Status 2011-SEPTEMBER      2010-SEPTEMBER             Previously Reported    Line item Changes
Partner
 2000 Department of the Treasury                                20,197                       16,222                16,222                    0
                                  Total                         20,197                       16,222                16,222                    0


Agency FS Status CP Line Description                              Account Type        NB              2011-SEPTEMBER        2010-SEPTEMBER
 NCS             Buy/Sell Costs                                   GC                  D                           379                   384
                                                                                 Variance:                             0                     0

Trading         Name                            Status 2011-SEPTEMBER      2010-SEPTEMBER             Previously Reported    Line item Changes
Partner
 0400 GOVERNMENT PRINTING OFFICE                                     5                           0                     0                     0
 1300 Department of Commerce                                        30                          30                    30                     0
 1400 Department of the Interior                                   227                         194                   194                     0
 1601 Department of Labor                                            0                          12                    12                     0
 1900 Department of State                                            3                           2                     2                     0
 2000 Department of the Treasury                                     3                           1                     1                     0
 2400 Office of Personnel Management                                 0                           6                     6                     0
 4700 General Services Administration                               77                          96                    96                     0
 4900 National Science Foundation                                    0                           1                     1                     0
 6900 Department of Transportation                                  17                          13                    13                     0
 7000 Department of Homeland Security                               11                          11                    11                     0


                                                                          -8-
                                                             U.S.Department of the Treasury                               11-15-2011 17:59:15
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2011                              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 2011-SEPTEMBER      2010-SEPTEMBER           Previously Reported    Line item Changes
Partner
 7500 Department of Health and Human                                 6                         3                     3                     0
        Services
 9500 Independent and Other Agencies                                 0                         9                     9                     0
 9900 Treasury General Fund                                          0                       (11)                  (11)                    0
 DE00 Department of Defense                                          0                        17                    17                     0
                                  Total                            379                       384                   384                     0

Agency FS Status CP Line Description                              Account Type        NB            2011-SEPTEMBER        2010-SEPTEMBER
 NCS             Imputed Costs                                    GC                  D                          38                    30
                                                                                 Variance:                           0                     0

Trading         Name                            Status 2011-SEPTEMBER      2010-SEPTEMBER           Previously Reported    Line item Changes
Partner
 2400 Office of Personnel Management                                38                        30                    30                     0
                                  Total                             38                        30                    30                     0




                                                                          -9-
                                                                U.S.Department of the Treasury                                 11-15-2011 17:59:15
                                                                Financial Management Service
                                                            Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                      Fiscal Year: 2011                                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            2011-SEPTEMBER        2010-SEPTEMBER
 SCNP            Nonexpenditure Transfers-out of Financing Sources   CF                    D                          24                    19
                 - Capital Transfers
                                                                                      Variance:                           0                     0

Trading                                                  2011-SEPTEMBER       2010-SEPTEMBER             Previously Reported    Line item Changes
Partner       Name                              Status
 9100 Department of Education                                          24                         19                     19                     0
                                  Total                                24                         19                     19                     0


Agency FS Status CP Line Description                                 Account Type          NB            2011-SEPTEMBER        2010-SEPTEMBER
 SCNP            Imputed Financing Source                            F                     C                          38                    30
                                                                                      Variance:                           0                     0

Trading         Name                            Status 2011-SEPTEMBER         2010-SEPTEMBER             Previously Reported    Line item Changes
Partner
 2400 Office of Personnel Management                                   38                         30                     30                     0
                                  Total                               (38)                        (30)                  (30)                    0




                                                                             - 10 -
                                                             U.S.Department of the Treasury                                    11-15-2011 17:59:15
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                   Fiscal Year: 2011                                  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              2011-SEPTEMBER         2010-SEPTEMBER
 SCNP            Other budgetary financing sources                F                     C                          1,300                  (989)
                                                                                   Variance:                              0                     0

Trading        Name                             Status 2011-SEPTEMBER      2010-SEPTEMBER               Previously Reported     Line item Changes
Partner
 9900 Treasury General Fund                                      1,300                          (989)                 (989)                     0
                                  Total                         (1,300)                          989                   989                      0


Agency FS Status CP Line Description                              Account Type          NB              2011-SEPTEMBER         2010-SEPTEMBER
 SCNP            Other non-budgetary financing sources            F                     C                         (44,168)               (30,424)
                                                                                   Variance:                              0                     0

Trading        Name                             Status 2011-SEPTEMBER      2010-SEPTEMBER               Previously Reported     Line item Changes
Partner
 9900 Treasury General Fund                                    (44,168)                    (30,424)                 (30,424)                    0
                                  Total                         44,168                         30,424                30,424                     0




                                                                          - 11 -
                                                               U.S. Department of the Treasury                                     11/15/2011 17:53:17
                                                                 Financial Management Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2011                                   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      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                    Type
 4   Fund Balance with Treasury (Note 3)                                              A      D       B                  114,085                 132,259
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Fund Balance with Treasury                             F                114,085                132,259                   132,259                     0
Total:                                                                  114,085                132,259                   132,259                     0

Line Agency Line Description                                                Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                    Type
 5   Accounts Receivable (Note 4)                                                     A      D       F                        0                          1
                                                                                   Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Accounts Receivable                                    F                   0                      1                            1                     0
Total:                                                                     0                      1                            1                     0

Line Agency Line Description                                                Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                    Type
 6   Other Intragovernmental Assets (Note 8)                                          A      D       B                       50                     102
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Advances to Others and Prepayments                     F                   50                    102                        102                      0
Total:                                                                     50                    102                        102                      0




                                                                             -1-
                                                               U.S. Department of the Treasury                                     11/15/2011 17:53:17
                                                                 Financial Management Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2011                                   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      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                    Type
 9   Cash and Other Monetary Assets (Note 5)                                          A      D       B                     1,664                  2,965
                                                                                   Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Cash and Other Monetary Assets                         N                 1,664                  2,965                      2,965                     0
Total:                                                                   1,664                  2,965                      2,965                     0

Line Agency Line Description                                                Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                    Type
 10 Accounts Receivable, Net (Note 4)                                                 A      D       B                      138                     239
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Accounts and Taxes Receivable                          N                  138                    239                        239                      0
Total:                                                                    138                    239                        239                      0

Line Agency Line Description                                                Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                    Type
 11 Credit Program Receivables, Net (Note 6)                                          A      D       N                  530,491                 367,904
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Loans Receivable and mortgage backed                   N                530,491                367,904                   367,904                     0
securities
Total:                                                                  530,491                  367,904                367,904                          0




                                                                             -2-
                                                             U.S. Department of the Treasury                                     11/15/2011 17:53:17
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                  Fiscal Year: 2011                                   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      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                  Type
 12 General Property, Plant and Equipment, Net (Note 7)                             A      D       B                       16                      28
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Property, Plant and Equipment                        N                   16                     28                         28                      0
Total:                                                                   16                     28                         28                      0

Line Agency Line Description                                              Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                  Type
 13 Other Assets (Note 8)                                                           A      D       N                       98                     166
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Other Assets                                         N                   98                    166                        166                      0
Total:                                                                   98                    166                        166                      0

Line Agency Line Description                                              Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                  Type
 19 Accounts Payable                                                                L      C       F                       34                          1
                                                                                 Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Accounts Payable                                     F                   34                      1                           1                     0
Total:                                                                  (34)                    (1)                        (1)                     0




                                                                           -3-
                                                             U.S. Department of the Treasury                                      11/15/2011 17:53:17
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2011                                  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    2011-SEPTEMBER           2010-SEPTEMBER
                                                                                    Type
 20 Debt (Note 9)                                                                     L      C      F                  547,108                 374,335
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2011-SEPTEMBER          2010-SEPTEMBER        Previously Reported       Line Item Changes
Interest Payable                                     F                       0                       4                       4                      0
Loans Payable                                        F                 547,108                 374,331                 374,331                      0
Total:                                                                (547,108)               (374,335)               (374,335)                     0
Line Agency Line Description                                                Status Account NB       F/N    2011-SEPTEMBER           2010-SEPTEMBER
                                                                                    Type
 21 Guaranty Agency Federal and Restricted Funds Due to Treasury (Note 5)             L      C      F                    1,664                   2,965
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2011-SEPTEMBER          2010-SEPTEMBER        Previously Reported       Line Item Changes
Accounts Payable                                     F                  1,664                   2,965                    2,965                      0
Total:                                                                 (1,664)                 (2,965)                  (2,965)                     0

Line Agency Line Description                                                Status Account NB       F/N    2011-SEPTEMBER           2010-SEPTEMBER
                                                                                    Type
 22 Payable to Treasury (Note 6)                                                      L      C      F                    3,890                   2,424
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2011-SEPTEMBER          2010-SEPTEMBER        Previously Reported       Line Item Changes
Accounts Payable                                     F                      0                       0                    2,424                  (2,424)
Accounts Payable, capital transfers                  F                  3,890                   2,424                        0                   2,424
Total:                                                                 (3,890)                 (2,424)                  (2,424)                      0



                                                                             -4-
                                                              U.S. Department of the Treasury                                      11/15/2011 17:53:17
                                                                Financial Management Service
                                                           Governmentwide Financial Report System

                                              GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                   Fiscal Year: 2011                                    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      2011-SEPTEMBER           2010-SEPTEMBER
                                                                                   Type
 23 Other Intragovernmental Liabilities (Note 10)                                    L      C       F                     6,843                  12,958
                                                                                  Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported       Line Item Changes
Benefit Program Contributions Payable                 F                    10                       8                         8                      0
Advances from Others and Deferred Credits             F                    89                      96                        96                      0
Other Liabilities (without reciprocals)               F                 6,744                  12,854                    12,854                      0
Total:                                                                 (6,843)                (12,958)                  (12,958)                     0
Line Agency Line Description                                               Status Account NB       F/N      2011-SEPTEMBER           2010-SEPTEMBER
                                                                                   Type
 27 Accounts Payable                                                                 L      C       N                     4,248                   4,810
                                                                                  Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported       Line Item Changes
Accounts Payable                                      N                 4,248                  4,810                      4,810                      0
Total:                                                                 (4,248)                (4,810)                    (4,810)                     0

Line Agency Line Description                                               Status Account NB       F/N      2011-SEPTEMBER           2010-SEPTEMBER
                                                                                   Type
 28 Accrued Grant Liability (Note 11)                                                L      C       N                     3,928                   3,744
                                                                                  Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported       Line Item Changes
Other Liabilities                                     N                 3,928                  3,744                      3,744                      0
Total:                                                                 (3,928)                (3,744)                    (3,744)                     0



                                                                            -5-
                                                               U.S. Department of the Treasury                                      11/15/2011 17:53:17
                                                                 Financial Management Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2011                                    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      2011-SEPTEMBER           2010-SEPTEMBER
                                                                                     Type
 29 Liabilities for Loan Guarantees (Note 6)                                           L      C      N                    10,025                  14,479
                                                                                    Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported       Line Item Changes
Loan Guarantee Liabilities                             N                 10,025                 14,479                    14,479                      0
Total:                                                                  (10,025)               (14,479)                  (14,479)                     0

Line Agency Line Description                                                 Status Account NB      F/N      2011-SEPTEMBER           2010-SEPTEMBER
                                                                                     Type
 30 Other Liabilities (Note 10)                                                        L      C      N                       217                     346
                                                                                    Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported       Line Item Changes
Federal Employee and Veteran Benefits                  N                   18                     16                         16                       0
Payable
Other Liabilities                                     N                     199                      330                     330                          0
Total:                                                                     (217)                    (346)                   (346)                         0
Line Agency Line Description                                                 Status Account NB      F/N      2011-SEPTEMBER           2010-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     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported       Line Item Changes
Total:                                                                     0                      0                            0                      0




                                                                              -6-
                                                             U.S. Department of the Treasury                                      11/15/2011 17:53:17
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                   Fiscal Year: 2011                                   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     2011-SEPTEMBER           2010-SEPTEMBER
                                                                                    Type
 38 Unexpended Appropriations -Other Funds                                            E      C     B                    71,729                  94,371
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2011-SEPTEMBER         2010-SEPTEMBER         Previously Reported       Line Item Changes
Net Position-Non-Earmarked Funds                     B                  71,729                 94,371                   94,371                      0
Total:                                                                 (71,729)               (94,371)                 (94,371)                     0

Line Agency Line Description                                                Status Account NB      F/N     2011-SEPTEMBER           2010-SEPTEMBER
                                                                                    Type
 39 Cumulative Results of Operations - Earmarked Funds (Note 20)                      E      C     B                         4                          4
                                                                                   Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2011-SEPTEMBER         2010-SEPTEMBER         Previously Reported       Line Item Changes
Net Position-Earmarked Funds                         B                     4                      4                          4                      0
Total:                                                                    (4)                    (4)                       (4)                      0

Line Agency Line Description                                                Status Account NB      F/N     2011-SEPTEMBER           2010-SEPTEMBER
                                                                                    Type
 40 Cumulative Results of Operations-Other Funds                                      E      C     B                    (3,148)                  (6,773)
                                                                                   Variance:                                 0                        0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2011-SEPTEMBER         2010-SEPTEMBER         Previously Reported       Line Item Changes
Net Position-Non-Earmarked Funds                     B                 (3,148)                (6,773)                   (6,773)                     0
Total:                                                                  3,148                  6,773                     6,773                      0




                                                                             -7-
                                                             U.S. Department of the Treasury                                     11/15/2011 17:53:17
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF NET COST                                          Fiscal Year: 2011                                   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      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                  Type
 42 Total Gross costs                                                              GC      D       B                    89,910                116,953
                                                                                 Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Imputed Costs                                        F                    38                      30                        30                     0
Buy/Sell Costs                                       F                   379                     384                       384                     0
Benefit Program Costs                                F                   123                      98                        98                     0
Borrowing and Other Interest Expense                 F                20,197                  16,222                    16,222                     0
Non-Federal Gross Cost                               N                69,173                 100,219                   100,219                     0
Total:                                                                89,910                 116,953                   116,953                     0
Line Agency Line Description                                              Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                  Type
 43 Total Earned Revenue                                                           ER      C       B                    20,397                 17,279
                                                                                 Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Buy/Sell Revenue                                     F                     0                     76                      1,070                  (994)
Borrowing and Other Interest Revenue                 F                 4,457                  4,881                      4,881                     0
(Exchange)
Non-Federal Earned Revenue                          N                  15,008                   11,328                 11,328                       0
Other Revenue (without reciprocals)                 F                     932                      994                      0                     994
Total:                                                                (20,397)                 (17,279)               (17,279)                      0




                                                                           -8-
                                                                 U.S. Department of the Treasury                                      11/15/2011 17:53:17
                                                                   Financial Management Service
                                                              Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2011                                   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      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                      Type
  3   Beginning Balances - Earmarked Funds                                             BN      C       B                         4                          8
                                                                                     Variance:                                   0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Beginning Net Position                                 B                      4                      8                           8                     0
Total:                                                                       (4)                    (8)                        (8)                     0

Line Agency Line Description                                                  Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                      Type
  4   Beginning Balances - All Other Funds                                             BN      C       B                    (6,773)                   (217)
                                                                                     Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Beginning Net Position                                 B                  (6,773)                 (217)                      (217)                     0
Total:                                                                     6,773                   217                        217                      0

Line Agency Line Description                                                  Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                      Type
  8   Other Adjustments (rescission, etc) - Earmarked Funds                             F      C       B                         1                          0
                                                                                     Variance:                                   0                          0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2011-SEPTEMBER         2010-SEPTEMBER          Previously Reported      Line Item Changes
Appropriations received as adjusted (rescissions         F                   1                      0                            0                     0
and other adjustments)
Total:                                                                         (1)                         0                    0                           0




                                                                               -9-
                                                                 U.S. Department of the Treasury                                     11/15/2011 17:53:17
                                                                   Financial Management Service
                                                              Governmentwide Financial Report System

                                                GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2011                                   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      2011-SEPTEMBER          2010-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     2011-SEPTEMBER          2010-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      2011-SEPTEMBER          2010-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      2011-SEPTEMBER          2010-SEPTEMBER         Previously Reported      Line Item Changes
Total:                                                                       0                       0                           0                     0


Line Agency Line Description                                                  Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                      Type
 12 Appropriations Used - All Other Funds                                               F      C       B                  115,989                 124,506
                                                                                     Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description                Status F/N      2011-SEPTEMBER          2010-SEPTEMBER         Previously Reported      Line Item Changes
Nonexpenditure transfers-in of unexpended               F                 115,989                 124,506                  124,506                     0
appropriations and financing sources
Total:                                                                   (115,989)                 (124,506)             (124,506)                         0




                                                                               - 10 -
                                                             U.S. Department of the Treasury                                       11/15/2011 17:53:17
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                                Fiscal Year: 2011                                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   2011-SEPTEMBER          2010-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      2011-SEPTEMBER             2010-SEPTEMBER       Previously Reported      Line Item Changes
Total:                                                                    0                          0                         0                     0


Line Agency Line Description                                                   Status Account NB       F/N   2011-SEPTEMBER          2010-SEPTEMBER
                                                                                       Type
 15 Nonexchange Revenue - All Other Funds                                                F      C      B                      3                      12
                                                                                      Variance:                               0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2011-SEPTEMBER             2010-SEPTEMBER       Previously Reported      Line Item Changes
Other Taxes and Receipts                             N                     3                         12                      12                      0
Total:                                                                    (3)                       (12)                    (12)                     0

Line Agency Line Description                                                   Status Account NB       F/N   2011-SEPTEMBER          2010-SEPTEMBER
                                                                                       Type
 17 Donations and Forfeitures of Cash and Cash Equivalents - Earmarked Funds             F      C      B                      1                          0
                                                                                      Variance:                               0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2011-SEPTEMBER             2010-SEPTEMBER       Previously Reported      Line Item Changes
Other Taxes and Receipts                             N                     1                         0                         0                     0
Total:                                                                    (1)                        0                         0                     0




                                                                               - 11 -
                                                              U.S. Department of the Treasury                                      11/15/2011 17:53:17
                                                                Financial Management Service
                                                           Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                                Fiscal Year: 2011                                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   2011-SEPTEMBER          2010-SEPTEMBER
                                                                                       Type
 18 Donations and Forfeitures of Cash and Cash Equivalents - All Other Funds             F      C      B                      0                          0
                                                                                      Variance:                               0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N       2011-SEPTEMBER            2010-SEPTEMBER       Previously Reported      Line Item Changes
Total:                                                                     0                         0                         0                     0


Line Agency Line Description                                                   Status Account NB       F/N   2011-SEPTEMBER          2010-SEPTEMBER
                                                                                       Type
 20 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       2011-SEPTEMBER            2010-SEPTEMBER       Previously Reported      Line Item Changes
Total:                                                                     0                         0                         0                     0


Line Agency Line Description                                                   Status Account NB       F/N   2011-SEPTEMBER          2010-SEPTEMBER
                                                                                       Type
 21 Nonexpenditure Financing Sources - Transfers-Out - All Other Funds                   F      C      F                    (24)                    (19)
                                                                                      Variance:                               0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N       2011-SEPTEMBER            2010-SEPTEMBER       Previously Reported      Line Item Changes
Nonexpenditure Transfers-out of Financing            F                     24                        19                      19                      0
Sources - Capital Transfers
Total:                                                                         24                       19                   19                          0




                                                                               - 12 -
                                                             U.S. Department of the Treasury                                     11/15/2011 17:53:17
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                           Fiscal Year: 2011                                   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      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                  Type
 25 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     2011-SEPTEMBER          2010-SEPTEMBER         Previously Reported      Line Item Changes
Total:                                                                   0                       0                           0                     0


Line Agency Line Description                                              Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                  Type
 26 Imputed Financing from Costs Absorbed by Others - All Other Funds               F      C       F                       38                      30
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER          2010-SEPTEMBER         Previously Reported      Line Item Changes
Imputed Financing Source                             F                   38                      30                        30                      0
Total:                                                                  (38)                    (30)                      (30)                     0

Line Agency Line Description                                              Status Account NB       F/N      2011-SEPTEMBER          2010-SEPTEMBER
                                                                                  Type
 28 Others - Earmarked Funds                                                        F      C       B                        0                          0
                                                                                 Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER          2010-SEPTEMBER         Previously Reported      Line Item Changes
Total:                                                                   0                       0                           0                     0




                                                                           - 13 -
                                                             U.S. Department of the Treasury                                      11/15/2011 17:53:17
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                           Fiscal Year: 2011                                    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      2011-SEPTEMBER           2010-SEPTEMBER
                                                                                   Type
 29 Others - All Other Funds                                                         F      C      B                   (42,868)                (31,413)
                                                                                  Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER          2010-SEPTEMBER         Previously Reported       Line Item Changes
Other non-budgetary financing sources                F                (44,168)                (30,424)                 (30,424)                     0
Other budgetary financing sources                    F                  1,300                    (989)                    (989)                     0
Total:                                                                 42,868                  31,413                   31,413                      0
Line Agency Line Description                                               Status Account NB      F/N      2011-SEPTEMBER           2010-SEPTEMBER
                                                                                   Type
 49 Beginning Balances - Earmarked Funds                                            BN      C      B                         0                          0
                                                                                  Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER          2010-SEPTEMBER         Previously Reported       Line Item Changes
Total:                                                                   0                       0                           0                      0


Line Agency Line Description                                               Status Account NB      F/N      2011-SEPTEMBER           2010-SEPTEMBER
                                                                                   Type
 50 Beginning Balances - All Other Funds                                            BN      C      B                    94,371                 127,269
                                                                                  Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER          2010-SEPTEMBER         Previously Reported       Line Item Changes
Beginning Net Position                               B                 94,371                 127,269                  127,269                      0
Total:                                                                (94,371)               (127,269)                (127,269)                     0




                                                                           - 14 -
                                                                 U.S. Department of the Treasury                                    11/15/2011 17:53:17
                                                                   Financial Management Service
                                                              Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2011                                  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     2011-SEPTEMBER          2010-SEPTEMBER
                                                                                      Type
 54 Approprations Received - Earmarked Funds                                            F      C       F                       0                          0
                                                                                     Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2011-SEPTEMBER          2010-SEPTEMBER        Previously Reported      Line Item Changes
Total:                                                                       0                       0                          0                     0


Line Agency Line Description                                                  Status Account NB       F/N     2011-SEPTEMBER          2010-SEPTEMBER
                                                                                      Type
 55 Appropriations Received - All Other Funds                                           F      C       F                   94,398                 92,900
                                                                                     Variance:                                  0                      0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2011-SEPTEMBER          2010-SEPTEMBER        Previously Reported      Line Item Changes
Appropriations received as adjusted (rescissions         F                94,398                  92,900                   92,900                     0
and other adjustments)
Total:                                                                    (94,398)                 (92,900)              (92,900)                         0
Line Agency Line Description                                                  Status Account NB       F/N     2011-SEPTEMBER          2010-SEPTEMBER
                                                                                      Type
 57 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       2011-SEPTEMBER          2010-SEPTEMBER        Previously Reported      Line Item Changes
Total:                                                                       0                       0                          0                     0




                                                                               - 15 -
                                                                 U.S. Department of the Treasury                                     11/15/2011 17:53:17
                                                                   Financial Management Service
                                                              Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2011                                   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     2011-SEPTEMBER           2010-SEPTEMBER
                                                                                      Type
 58 Appropriations Transferred - in/out - All Other Funds                               F      C       F                        0                          0
                                                                                     Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2011-SEPTEMBER          2010-SEPTEMBER        Previously Reported       Line Item Changes
Total:                                                                       0                       0                          0                      0


Line Agency Line Description                                                  Status Account NB       F/N     2011-SEPTEMBER           2010-SEPTEMBER
                                                                                      Type
 60 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       2011-SEPTEMBER          2010-SEPTEMBER        Previously Reported       Line Item Changes
Total:                                                                       0                       0                          0                      0


Line Agency Line Description                                                  Status Account NB       F/N     2011-SEPTEMBER           2010-SEPTEMBER
                                                                                      Type
 61 Other Adjustments (rescissions, etc) - All Other Funds                              F      C       B                   (1,051)                  (1,292)
                                                                                     Variance:                                  0                        0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2011-SEPTEMBER          2010-SEPTEMBER        Previously Reported       Line Item Changes
Appropriations received as adjusted (rescissions         F                (1,051)                 (1,292)                  (1,292)                     0
and other adjustments)
Total:                                                                      1,051                     1,292                 1,292                          0




                                                                               - 16 -
                                                             U.S. Department of the Treasury                                      11/15/2011 17:53:17
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                           Fiscal Year: 2011                                    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      2011-SEPTEMBER           2010-SEPTEMBER
                                                                                   Type
 63 Appropriations Used - Earmarked Funds                                            F      C      B                         0                          0
                                                                                  Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER          2010-SEPTEMBER         Previously Reported       Line Item Changes
Total:                                                                   0                       0                           0                      0


Line Agency Line Description                                               Status Account NB      F/N      2011-SEPTEMBER           2010-SEPTEMBER
                                                                                   Type
 64 Appropriations Used - All Other Funds                                            F      C      B                  (115,989)               (124,506)
                                                                                  Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2011-SEPTEMBER          2010-SEPTEMBER         Previously Reported       Line Item Changes
Nonexpenditure transfers-in of unexpended            F               (115,989)               (124,506)                (124,506)                     0
appropriations and financing sources
Total:                                                                115,989                   124,506               124,506                           0




                                                                           - 17 -
                                                                                                                                                                                 11/15/2011 17:55:13

                                                                                     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: 2011         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        2011 - SEPTEMBER             2010 - 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-
                                                                                                                                                                                              11/15/2011 17:55:13

                                                                                     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: 2011                 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 Department reclassified $2,424 for fiscal year 2010, on the Balance Sheet, from
                   the agencies audited financial statements being issued.                                         Payable to Treasury to Accounts Payable, Capital Transfers, due to the inclusion of
                                                                                                                   Accounts Payable, capital transfers into the FY 2011 Treasury crosswalk.

                                                                                                                   The Department reclassified $994 for fiscal year 2010, from Buy/Sell Revenue to Other
                                                                                                                   Revenue to be consistent with Treasury guidance.
2                  Describe any departures from U.S. Generally Accepted Accounting Procedures (GAAP).
3                  When applying the general rule of the Statements of Federal Financial Accounting Standards
                   (SFFAS) No. 7, par.
                   48, describe the specific potential accruals that are not made and the practical and inherent
                   limitations affecting the
                   accrual of taxes and duties.
4                  Describe any change in accounting if a collecting entity adopts accounting standards that
                   embody a fuller
                   application of accrual accounting concepts that differ from that prescribed by SFFAS No. 7,
                   par. 48.
5                  List all of the agency's components for which balances and activities are not combined into     The components whose balances and activities are combined into the financial
                   the 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), Office of Management (OM),
                                                                                                                   American Recovery and Reinvestment Act of 2009 and Educations Jobs Fund (RA/JF)
                                                                                                                   activities, Office of Management, Office for Civil Rights (OCR), and Hurricane Education
                                                                                                                   Recovery (HR) activities.
6                  List all of the agency's components for which balances and activities are combined into the     Under the provisions of the SAFRA Act, no new loans were made under the FFEL
                   agency's financial                                                                              Program after June 30, 2010. This legislation effectively required a transition for new
                   statements, and, therefore, are represented in the GFRS data.                                   loans 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 satisfied, discharged, or cancelled.

                                                                                                                   Note 6, page 53, 2nd to last paragraph.

                                                                                                                   Certain reclassifications were made to the FY 2010 financial statements and notes to
                                                                                                                   conform to the current year presentation. These changes had no effect on total assets,
                                                                                                                   liabilities, net position, net cost of operations, or budgetary resources. Components of
                                                                                                                   FY 2010 FFEL Program Receivables, Net were reclassified to reflect a change in the
                                                                                                                   Department's business process for accruing interest on assigned defaulted FFEL loans.
                                                                                                                   FFEL Guaranteed accrued interest receivable was increased, with an offset to the
                                                                                                                   allowance for subsidy. The net effect of this reclassification did not affect net Credit
                                                                                                                   Program Receivables.


                                                                                                            -2-
                                                                                                                                                                                    11/15/2011 17:55:13

                                                                                     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: 2011              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
                                                                                                                    Note 1, page 49, last paragraph before Note 2
7                  Describe any additional significant accounting policies specific to the agency not included in
                   GFRS Module
                   GF006 - FR Notes.
8                  Provide any other relevant information pertaining to the Federal Reserve Earnings.
9                  Describe the nature of the related party relationship and transactions pertaining to the
                   amount in the ,Other
                   Notes Info, tab, Related party receivables' line.
10                 Describe the nature of the related party relationship and transactions pertaining to the
                   amount in the "Other
                   Notes Info " tab," Related party payables" line.
11                 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.
12                 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.
13                 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.
14                 Provide details on the investments in related parties.
15                 Provide details on related party leases.
16                 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.
17                 Provide any other useful information on related parties.




                                                                                                            -3-
                                                                                                                                                                                            11/15/2011 17:55:13

                                                                                   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: 2011               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     2011 - SEPTEMBER       2010 - SEPTEMBER
                                                                                  Type
Cash and Other Monetary Assets                                             D        A                     1,664                   2,965
                                                                               Variance:                      0                       0           Rounding Method: Millions            Decimal: Zero
Line Status Line Description             2011 - SEPTEMBER            2010 - SEPTEMBER               Previously Rptd           Line Item Changes
 1           Operating Cash- not
             restricted
 2           Operating Cash-
             restricted
 3           Other cash - not
             restricted
 4           Other cash - restricted                        1,664                       2,965                       2,965                              0
 5           International monetary
             assets
 6           Gold
 7           Foreign currency
             Total                                           1,664                       2,965                        2,965                            0
Threshold

 Line Description                                               Question                                                           Answer
 Line Item Notes - Other cash - restricted (2011 -              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 a change the Department made to the process for estimating the
                                                                the current fiscal year and prior fiscal year. (Unaudited)         valuation of the Federal Fund.




                                                                                                       -4-
                                                                                                                                                                                11/15/2011 17:55:13

                                                                                     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: 2011          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: 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       2011 - SEPTEMBER             2010 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              IMF Letter of Credit Debit
                - available balance
 2              Reserve Position in Debit
                the IMF
 3              SDR Holdings-        Debit
                Exchange
                Stabilization Fund
 4        I     SDR Certificates     Debit
                outstanding with
                the FRB
 5              SDR Certificates     Credit
                outstanding with
                the FRB
 6              Interest bearing     Credit
                liability to the IMF
                for SDR Allocations
 7              Gold certificates    Credit
       Section: B              Section Name: Gold                                                     No Data Flag: YES         Line Attributes: Units


Line Status Line Description           NB       2011 - SEPTEMBER             2010 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Number of fine troy    N/A
                ounces of gold
 2              Statutory price of 1   N/A
                fine troy ounce of
                gold
 3              Market value of 1      N/A
                fine troy ounce of
                gold




                                                                                                         -5-
                                                                                                                                                                             11/15/2011 17:55:13

                                                                                      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: 2011         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


       Section: C             Section Name: Analysis of Cash Held Outside Treasury                     No Data Flag: YES      Line Attributes: Dollars
                                                                                                                            Rounding Method: Millions                Decimal: Zero
Line Status Line Description           NB        2011 - SEPTEMBER             2010 - SEPTEMBER
 1              Total Cash Held       Credit
                Outside Treasury
                (reported to
                Treasury
 2              Agency-entered        Credit
                reconciling item
 3              Agency-entered        Credit
                reconciling item
 4              Agency-entered        Credit
                reconciling item
 5              Agency-entered        Credit
                reconciling item
 6              Agency-entered        Credit
                reconciling item
 7              Total cash reported    N/A
                in Note 2.




                                                                                                          -6-
                                                                                                                                                                                                11/15/2011 17:55:13

                                                                                       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: 2011                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: 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 additional details describibg the nature and cause of reconciling items reported in
                   Section C, lines 2 through 6.
10                 Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                   the significant accounting policies pertaining to this note.




                                                                                                               -7-
                                                                                                                                                                                                      11/15/2011 17:55:13

                                                                                       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: 2011                 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     2011 - SEPTEMBER         2010 - SEPTEMBER
                                                                                      Type
Accounts and Taxes Receivable                                                 D         A                          138                     239
                                                                                   Variance:                         0                       0          Rounding Method: Millions                Decimal: Zero
Line Status Line Description            2011 - SEPTEMBER               2010 - SEPTEMBER                   Previously Rptd           Line Item Changes
 1            Accounts receivable,                              322                            416                           416                               0
              gross
 2            Related interest
              receivable - accounts
              receivable
 3            Penalties, fines, and
              administrative fees
              receivable
 4            Less: allowance for                              -184                          -177                           -177                               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                                              138                           239                           239                               0
Threshold

 Line Description                                                 Question                                                                  Answer
 Line Item Notes - Accounts receivable, gross (2011 -             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. Within threshold
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.




                                                                                                             -8-
                                                                                                                                                                                               11/15/2011 17:55:13

                                                                                     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: 2011                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     2011 - SEPTEMBER       2010 - SEPTEMBER
                                                                                    Type
Loans Receivable and mortgage backed securities                              D        A                   530,491               367,904
                                                                                 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 receivable     PY Face Value of loans       PY Long-term cost of         PY Net loans receivable
                                              outstanding                           loans                                           outstanding                        loans
 1           Federal Direct Student                     356,108                        -25,346                      381,454                   230,177                        1,969                         228,208
             Loans
 4           Federal Family                                147,283                        -760                      148,043                    144,126                         5,244                       138,882
             Education Loan
 14
 15
 16
 17
 18
 19          All other loans                                   1,545                         551                        994                      1,261                           447                            814
             receivable
             Total                                            504,936                   -25,555                     530,491                    375,564                         7,660                       367,904
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
 Value of loans outstanding)                                      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 - All other loans receivable (CY Long-term       Please provide explanations for any amounts that have             The change is primarily due to a change in the allowance for loss
 cost of loans)                                                   changed by 10% or more and or greater than 500,000 between        percentage in the Perkins Loan Program. The increase is primarily due to
                                                                  the current fiscal year and prior fiscal year. (Unaudited)        subsidy transfers during FY 2011, net of net downward subsidy re-estimate
                                                                                                                                    and subsidy amortization in the TEACH Grant Program. The increase is
                                                                                                                                    primarily due to HBCU net upward subsidy re-estimates during FY 2011 in
                                                                                                                                    the Facilities Loan Program.
 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 2011, net
 of loans outstanding)                                            changed by 10% or more and or greater than 500,000 between        collections from borrowers. Increase is primarily due to new HBCU loans
                                                                  the current fiscal year and prior fiscal year. (Unaudited)        disbursed during FY 2011 in the Facilities Loan Program.




                                                                                                         -9-
                                                                                                                                                                                 11/15/2011 17:55:13

                                                                                      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: 2011          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       2011 - SEPTEMBER             2010 - SEPTEMBER               Previously Rptd    Line Item Changes
 1             Federal Direct          Debit                     -28,630
               Students Loans
 4             Federal Family          Debit                      -4,905
               Education Loan
14                                     Debit
15                                     Debit
16                                     Debit
17                                     Debit
18                                     Debit
19             All other loans         Debit                          12
               receivable
20             Total                   N/A                       -33,523
       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       2011 - SEPTEMBER             2010 - SEPTEMBER               Previously Rptd    Line Item Changes
 1             Balances for            Debit
               property held Pre-
               1992
 2             Balances for            Debit
               property held Post-
               1991




                                                                                                         - 10 -
                                                                                                                                                                                        11/15/2011 17:55:13

                                                                                    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: 2011                  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


       Section: C             Section Name: Components of Loans Receivable, Net - Current                                      Line Attributes: Dollars
                                            Year                                                                             Rounding Method: Millions                          Decimal: Zero
Line Status Line Description          NB      Federal Direct Student              Electric Loans     Rural Housing Service         Federal Family          Water and Environmental              Farm Loans
                                                             Loans                                                               Education Loan                            Loans
 1             Loans receivable,     Debit                     228,208                                                                      138,882
               net - beginning of
               the year
 2             Loans disbursed       Debit                     131,636
               (loans made)
 3             Loan collections      Debit                     -17,110                                                                        -9,502
               (principal and
               interest
               repayments,
               penalties and fines
               related to loans)
 4             Loan Purchases        Debit                                                                                                     3,297
 5             Other Cash            Debit                       -637                                                                               634
 6                                   Debit
 7                                   Debit
 8             Interest accrued on   Debit                       3,747                                                                         5,023
               loans
 9             Foreclosed            Debit
               property acquired
10             Allowance for loss    Debit
               (loans, interest,
               and foreclosed
               property)
11             Allowance for         Debit
               subsidy
12             Subsidy re-           Debit                      11,599                                                                         6,168
               estimates
13             Subsidy transfers     Debit                      17,031
14             Other non cash        Debit                       6,980                                                                         3,541
15                                   Debit
16             Loans receivable,     N/A                       381,454                                                                      148,043
               net - end of the
               year




                                                                                                       - 11 -
                                                                                                                                                                                    11/15/2011 17:55:13

                                                                                    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: 2011             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


       Section: C             Section Name: Components of Loans Receivable, Net - Current                                       Line Attributes: Dollars
                                            Year                                                                              Rounding Method: Millions                      Decimal: Zero
Line Status Line Description         NB         Export-Import Bank                U.S. Agency for         Housing and Urban    Telecommunications        GSE Mortgage Backed All other loans receivable
                                                           Loans                     International           Development                    Loans          Securities Purchase
                                                                                  Development                                                                        Program
 1             Loans receivable,     Debit                                                                                                                                                         814
               net - beginning of
               the year
 2             Loans disbursed       Debit                                                                                                                                                         300
               (loans made)
 3             Loan collections      Debit                                                                                                                                                         -50
               (principal and
               interest
               repayments,
               penalties and fines
               related to loans)
 4             Loan Purchases        Debit
 5             Other Cash            Debit                                                                                                                                                         -17
 6                                   Debit
 7                                   Debit
 8             Interest accrued on   Debit                                                                                                                                                          15
               loans
 9             Foreclosed            Debit
               property acquired
10             Allowance for loss    Debit                                                                                                                                                          30
               (loans, interest,
               and foreclosed
               property)
11             Allowance for         Debit
               subsidy
12             Subsidy re-           Debit                                                                                                                                                         -67
               estimates
13             Subsidy transfers     Debit                                                                                                                                                         -25
14             Other non cash        Debit                                                                                                                                                          -6
15                                   Debit
16             Loans receivable,      N/A                                                                                                                                                          994
               net - end of the
               year




                                                                                                       - 12 -
                                                                                                                                                                                     11/15/2011 17:55:13

                                                                                    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: 2011               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


       Section: D            Section Name: Components of Loans Receivable, Net - Prior Year                                    Line Attributes: Dollars
                                                                                                                             Rounding Method: Millions                       Decimal: Zero
Line Status Line Description          NB      Federal Direct Student              Electric Loans     Rural Housing Service         Federal Family       Water and Environmental              Farm Loans
                                                             Loans                                                               Education Loan                         Loans
 1             Loans receivable,     Debit                     152,771                                                                        80,954
               net - beginning of
               the year
 2             Loans disbursed       Debit                      78,707
               (loans made)
 3             Loan collections      Debit                     -12,399                                                                      -32,245
               (principal and
               interest
               repayments,
               penaltiesand fines
               related to loans)
 4             Loan Purchases        Debit                                                                                                    82,020
 5             Other Cash            Debit                       -240                                                                          1,295
 6                                   Debit
 7                                   Debit
 8             Interest accrued on   Debit                          98                                                                         2,143
               loans
 9             Foreclosed            Debit
               property acquired
10             Allowance for loss    Debit
               (loans, interest,
               and foreclosed
               property)
11             Allowance for         Debit
               subsidy
12             Subsidy re-           Debit                      -4,743                                                                        -4,104
               estimates
13             Subsidy Transfers     Debit                       6,310                                                                         4,110
14             Other non cash        Debit                       7,704                                                                         4,709
15                                   Debit
16             Loans receivable,     N/A                       228,208                                                                      138,882
               net - end of the
               year




                                                                                                       - 13 -
                                                                                                                                                                                    11/15/2011 17:55:13

                                                                                    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: 2011             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


       Section: D            Section Name: Components of Loans Receivable, Net - Prior Year                                     Line Attributes: Dollars
                                                                                                                              Rounding Method: Millions                      Decimal: Zero
Line Status Line Description         NB         Export-Import Bank                U.S. Agency for         Housing and Urban    Telecommunications        GSE Mortgage Backed All other loans receivable
                                                           Loans                     International           Development                    Loans          Securities Purchase
                                                                                  Development                                                                        Program
 1             Loans receivable,     Debit                                                                                                                                                         529
               net - beginning of
               the year
 2             Loans disbursed       Debit                                                                                                                                                         274
               (loans made)
 3             Loan collections      Debit                                                                                                                                                         -54
               (principal and
               interest
               repayments,
               penaltiesand fines
               related to loans)
 4             Loan Purchases        Debit
 5             Other Cash            Debit                                                                                                                                                           1
 6                                   Debit
 7                                   Debit
 8             Interest accrued on   Debit                                                                                                                                                           8
               loans
 9             Foreclosed            Debit
               property acquired
10             Allowance for loss    Debit
               (loans, interest,
               and foreclosed
               property)
11             Allowance for         Debit
               subsidy
12             Subsidy re-           Debit                                                                                                                                                          77
               estimates
13             Subsidy Transfers     Debit                                                                                                                                                         -23
14             Other non cash        Debit                                                                                                                                                           2
15                                   Debit
16             Loans receivable,      N/A                                                                                                                                                          814
               net - end of the
               year




                                                                                                       - 14 -
                                                                                                                                                                                                   11/15/2011 17:55:13

                                                                                     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: 2011                   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 details regarding programs reported in Sections C and D that comprise amounts            The "all other loans receivable" column consists of amounts for the Teacher Education
                   reported in the "All Other loans receivable" colulmn.                                            Assistance for College and Higher Education (TEACH) Grant Program. This program is
                                                                                                                    used to award 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.
3                  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.


                                                                                                          - 15 -
                                                                                                                                                                                        11/15/2011 17:55:13

                                                                             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: 2011                 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
                                                                                                              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. 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).




                                                                                               - 16 -
                                                                                                                                                                                           11/15/2011 17:55:13

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

      Note: 04B         Loan Guarantees                                                                                              Fiscal Year: 2011               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    2011 - SEPTEMBER        2010 - SEPTEMBER
                                                                                  Type
Loan Guarantee Liabilities                                                 C        L                    10,025                 14,479
                                                                               Variance:                      0                      0           Rounding Method: Millions            Decimal: Zero
Line Status Line Description          2011 - SEPTEMBER               2010 - SEPTEMBER               Previously Rptd          Line Item Changes
 1           Federal Family
             Education Loans
 13          Federal Family                                 10,025                     14,479                     14,479                              0
             Education Loans
 14
 15
 16
 17
 18          All other loan
             guarantee liabilities
             Total                                          10,025                     14,479                      14,479                             0
Threshold

 Line Description                                               Question                                                          Answer
 Line Item Notes - Federal Family Education Loans (2011 -       Please provide explanations for any amounts that have             This decrease is mostly due to net downward subsidy re-estimates during
 SEPTEMBER)                                                     changed by 10% or more and or greater than 500,000 between        FY 2011.
                                                                the current fiscal year and prior fiscal year. (Unaudited)




                                                                                                      - 17 -
                                                                                                                                                                                    11/15/2011 17:55:13

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

     Note: 04B           Loan Guarantees                                                                                              Fiscal Year: 2011          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                     327,617                    320,709                    -11,221
               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                     327,617                    320,709                    -11,221




                                                                                                       - 18 -
                                                                                                                                                                                                  11/15/2011 17:55:13

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

   Note: 04B        Loan Guarantees                                                                                                  Fiscal Year: 2011                   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.

                                                                                                                  Under provisions of the recently passed HCERA, the FFEL Guaranteed Student Loan
                                                                                                                  program was eliminated. The new legislation requires transition from guaranteed
                                                                                                                  student loans to full direct lending through the Department under the William D. Ford
                                                                                                                  Federal Direct Student Loan program. As of September 30, 2010, all new federal
                                                                                                                  student loans are funded through the William D. Ford Direct Loan Program. The
                                                                                                                  transition from guaranteeing a loan to direct lending through the Department began on
                                                                                                                  July 1, 2010. All Federal guarantees originated before July 1, 2010 are covered by the
                                                                                                                  Department unless the loan is sold, consolidated, 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. 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).


                                                                                                                  The Department uses a computerized cash flow projection Student Loan Model to



                                                                                                         - 19 -
                                                                                                                                                                                        11/15/2011 17:55:13

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

   Note: 04B        Loan Guarantees                                                                                              Fiscal Year: 2011                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
                                                                                                               calculate subsidy estimates for the Direct Loan, FFEL and TEACH Programs. Each
                                                                                                               year, the Department re-evaluates the estimation methods related to changing
                                                                                                               conditions. The Department uses a probabilistic technique to forecast interest rates
                                                                                                               based on different methods to establish the relationship between an events occurrence
                                                                                                               and the magnitude of its probability. The Departments approach estimates interest rates
                                                                                                               under numerous scenarios and then bases interest rates on the average interest rates
                                                                                                               weighted by the assumed probability of each scenario occurring. Probabilistic
                                                                                                               methodology facilitates the modeling of the Departments unique loan programs.




                                                                                                - 20 -
                                                                                                                                                                                    11/15/2011 17:55:13

                                                                                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: 2011                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     2011 - SEPTEMBER        2010 - SEPTEMBER
                                                                               Type
Property, Plant and Equipment                                           D        A                          16                 28
                                                                            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                                 175                          147                            28                      163                        125                        38
            beginning of year
 2          Prior-period
            adjustments (not
            restated)
 3          Capitalized                                       4                                                         4                       12                                                   12
            acquisitions from the
            public
 4          Capitalized
            acquisitions from
            Government agencies
 5          Deletions from the
            Balance Sheet
 6          Revaluations
 7          Stewardship
            reclassifications
 8          Depreciation/amortizati                                                      16                           -16                                                  22                       -22
            on
            Total                                           179                         163                            16                       175                       147                        28




                                                                                                   - 21 -
                                                                                                                                                                                        11/15/2011 17:55:13

                                                                                       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: 2011             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       2011 - SEPTEMBER             2010 - 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                         176                        172                         172                          0
                software
 6              Assets under            Debit
                capital lease
 7              Leasehold               Debit
                improvements
 8              Other property,         Debit
                plant and
                equipment
 9              Total property,         N/A                           179                        175                         175                          0
                plant and
                equipment




                                                                                                          - 22 -
                                                                                                                                                                                          11/15/2011 17:55:13

                                                                                        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: 2011             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        2011 - SEPTEMBER             2010 - 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                         160                        144                          144                          0
                software
 4              Assets under            Credit
                capital lease
 5              Leasehold               Credit
                improvements
 6              Other property,         Credit
                plant, and
                equipment
 7              Total accumulated        N/A                         -163                       -147                          -147                          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        2011 - SEPTEMBER             2010 - 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



                                                                                                           - 23 -
                                                                                                                                                                                                    11/15/2011 17:55:13

                                                                                      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: 2011                 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        2011 - SEPTEMBER             2010 - 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        2011 - SEPTEMBER             2010 - 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 Departments needs.




                                                                                                           - 24 -
                                                                                                                                                                                                      11/15/2011 17:55:13

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

     Note: 08            Other Assets                                                                                                          Fiscal Year: 2011                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      2011 - SEPTEMBER           2010 - SEPTEMBER
                                                                                       Type
Other Assets                                                                   D         A                              98                  166
                                                                                    Variance:                            0                    0            Rounding Method: Millions             Decimal: Zero
Line Status Line Description             2011 - SEPTEMBER               2010 - SEPTEMBER                   Previously Rptd             Line Item Changes
 1             Advances and
               prepayments
 4             Regulatory Assets
 5             Other assets                                       98                            166                            166                              0
               Total                                              98                            166                            166                              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.
 Line Item Notes - Other assets (2011 - SEPTEMBER)                 Please provide explanations for any amounts that have                    The decrease is due to an decrease in in-process invoices for FFEL interest
                                                                   changed by 10% or more and or greater than 500,000 between               benefits and special allowance payments to lenders, and payments made to
                                                                   the current fiscal year and prior fiscal year. (Unaudited)               grant recipients in advance of their expenditures.
Tab: Text Data                          No Data Flag: YES
 Line                Question                                                                                                 Answer
 1                   Provide a description of advances and prepayments on the "Line Item Notes" tab for line 1.
 2                   Provide a description and related amounts for balances that exceed $1 billion in the line titled
                     "Other Assets" on the "Line Item Notes" tab.
 3                   Provide any relevant information pertaining to this note. At a minimum, describe briefly the
                     significant accounting policies pertaining to this note.




                                                                                                              - 25 -
                                                                                                                                                                                           11/15/2011 17:55:13

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

     Note: 09          Accounts Payable                                                                                            Fiscal Year: 2011                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     2011 - SEPTEMBER       2010 - SEPTEMBER
                                                                                Type
Accounts Payable                                                         C        L                     4,248                  4,810
                                                                             Variance:                      0                      0           Rounding Method: Millions              Decimal: Zero
Line Status Line Description         2011 - SEPTEMBER             2010 - SEPTEMBER                Previously Rptd          Line Item Changes
 1          Accounts Payable                              4,248                       4,810                       4,810                             0
            Total                                         4,248                       4,810                       4,810                             0
Threshold

 Line Description                                             Question                                                          Answer
 Line Item Notes - Accounts Payable (2011 - SEPTEMBER)        Please provide explanations for any amounts that have             The increase is primarily the result of decreased in-process Direct Loan and
                                                              changed by 10% or more and or greater than 500,000 between        grant disbursements.
                                                              the current fiscal year and prior fiscal year. (Unaudited)




                                                                                                    - 26 -
                                                                                                                                                                                     11/15/2011 17:55:13

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

     Note: 09            Accounts Payable                                                                                                 Fiscal Year: 2011         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: Other Notes Info.

       Section: A             Section Name: Interest                                                      No Data Flag: YES           Line Attributes: Dollars
                                                                                                                                    Rounding Method: Millions                Decimal: Zero
Line Status Line Description          NB        2011 - SEPTEMBER             2010 - SEPTEMBER C                 Previously Rptd C   Line Item Changes D
                                                               C
 1              Interest accrued      N/A
                and owed to others




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.




                                                                                                             - 27 -
                                                                                                                                                                                         11/15/2011 17:55:13

                                                                                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: 2011                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    2011 - SEPTEMBER        2010 - SEPTEMBER
                                                                               Type
Federal Employee and Veteran Benefits Payable                          C         L                         18                   16
                                                                            Variance:                       0                    0            Rounding Method: Millions             Decimal: Zero
Line Status Line Description         2011 - SEPTEMBER            2010 - 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                                   18                          16                           16                            0
 6          Liability for other
            retirement and
            postemployment
            benefits
            Total                                           18                          16                           16                            0
Threshold

 Line Description                                           Question                                                            Answer
 Line Item Notes - FECA Benefits (2011 - SEPTEMBER)         Please provide explanations for any amounts that have              This increase is attributable to normal changes in the estimates of FECA
                                                            changed by 10% or more and or greater than 500,000 between         future liabilities provided by the Department of Labor.
                                                            the current fiscal year and prior fiscal year. (unaudited)




                                                                                                  - 28 -
                                                                                                                                                                                   11/15/2011 17:55:13

                                                                                        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: 2011          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        2011 - SEPTEMBER             2010 - 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        I     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              Other                   Credit
11              Total pension            N/A
                expense (SFFAS
                No. 5, par.72)
12              Less Benefits Paid      Debit



                                                                                                           - 29 -
                                                                                                                                                                                   11/15/2011 17:55:13

                                                                                        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: 2011          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        2011 - SEPTEMBER             2010 - SEPTEMBER               Previously Rptd    Line Item Changes
13              Pension and              N/A
                Accrued Benefits
                Liability-end of
                period




       Section: B               Section Name: Pension Liability Long-Term Significant Assumptions        No Data Flag: YES         Line Attributes: Percent
                                              Used in 2011 and 2010 Valuation
Line Status Line Description             NB        2011 - SEPTEMBER             2010 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Rate of Interest         N/A
                (except OPM)
 2              Rate of inflation        N/A
                (except OPM)
 3              Projected salary         N/A
                increases (except
                OPM)



       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        2011 - SEPTEMBER             2010 - 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



                                                                                                           - 30 -
                                                                                                                                                                                   11/15/2011 17:55:13

                                                                                        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: 2011          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        2011 - SEPTEMBER             2010 - 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              Other                   Credit
10              Total                    N/A
                postretirement
                health benefits
                expense
11              Less claims paid        Debit
12              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 2011 and 2010
                                               Valuation
Line Status Line Description             NB        2011 - SEPTEMBER             2010 - 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




                                                                                                           - 31 -
                                                                                                                                                                                 11/15/2011 17:55:13

                                                                                     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: 2011           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       2011 - SEPTEMBER             2010 - 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)
       Section: L             Section Name: Workers' Compensation Benefits (to be completed by        No Data Flag: YES         Line Attributes: Percent
                                            DOL)
Line Status Line Description           NB                     COLA                          CPIM
 6              2015                  N/A
 7              2016+                 N/A




                                                                                                        - 32 -
                                                                                                                                                                                    11/15/2011 17:55:13

                                                                                        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: 2011          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: O              Section Name: Veteran's Compensation and Burial Benefits (to be           No Data Flag: YES          Line Attributes: Dollars
                                             completed by the Department of Veterans Affairs)                                     Rounding Method: Millions                 Decimal: Zero
Line Status Line Description             NB          CY Compensation                      CY Burial                    CY Total     PY Compensation                 PY Burial               PY Total
 1              Veterans                Credit
                compensation and
                burial benefits
                liability - beginning
                of period
 2              Prior-period            Credit
                adjustments (not
                restated)
 3              Actuarial               Credit
                (gains)/losses (from
                experience)
 4              Actuarial               Credit
                (gains)/losses (from
                assumption
                changes)
 5              Other                   Credit
 6              Veterans                 N/A
                compensation and
                burial benefits
                liability - end of
                period




                                                                                                           - 33 -
                                                                                                                                                                             11/15/2011 17:55:13

                                                                                      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: 2011          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 lines 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.




                                                                                                             - 34 -
                                                                                                                                                                                            11/15/2011 17:55:13

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

      Note: 15             Other Liabilities                                                                                                Fiscal Year: 2011               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     2011 - SEPTEMBER       2010 - SEPTEMBER
                                                                                       Type
Other Liabilities                                                               C        L                     4,127                    4,074
                                                                                    Variance:                      0                        0           Rounding Method: Millions       Decimal: Zero
Line Status Line Description                   2011 - SEPTEMBER           2010 - SEPTEMBER               Previously Rptd            Line Item Changes
 1               Deferred revenue                                   62                          182                           182                            0
 2               Accrued wages and                                  28                           25                            25                            0
                 benefits
 4               Other debt
 6               Legal and other
                 contingencies
 7               Grant payments due to                            3,928                      3,744                       3,744                               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                               38                           37                            37                            0
 14              Advances and
                 prepayments
 15              Farm and other
                 subsidies
 16              Deposit funds                                      71                           86                            86                            0
 17              Bonneville Power
                 Administration Non-
                 Federal power projects
                 and capital lease
                 liabilities and disposal
                 liabilities
 18
 19
 20
 21           Other Liabilities
              Total                                               4,127                       4,074                        4,074                             0




                                                                                                           - 35 -
                                                                                                                                                                                                        11/15/2011 17:55:13

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

     Note: 15           Other Liabilities                                                                                                 Fiscal Year: 2011                    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 (2011 - SEPTEMBER)             Please provide explanations for any amounts that have                The decrease is primarily the result of a reduction of in process collections
                                                                  changed by 10% or more and or greater than 500,000 between           of negative special allowance, lender loan fees, and origination fees.
                                                                  the current fiscal year and prior fiscal year. (Unaudited)
Line Item Notes - Accrued wages and benefits (2011 -              Please provide explanations for any amounts that have                The increase is due to a change in the numbers 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 - Deposit funds (2011 - SEPTEMBER)                Please provide explanations for any amounts that have                Within Threshold
                                                                  changed by 10% or more and or greater than 500,000 between
                                                                  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
                    Item Notes tab, line 21, "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.




                                                                                                              - 36 -
                                                                                                                                                                                       11/15/2011 17:55:13

                                                                                     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: 2011              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       2011 - SEPTEMBER             2010 - 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       2011 - SEPTEMBER             2010 - 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
                Possible
Line Status Line Description           NB        PY Estimated Range        PY Claim amunt (unable
                                                         (High end)                to determine)
 1              Probable             Credit
 2              Reasonably           Credit
                Possible


                                                                                                        - 37 -
                                                                                                                                                                                                        11/15/2011 17:55:13

                                                                                        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: 2011                 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




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             The Department is involved in various lawsuits incidental to its operations. The
                     liabilities.                                                                                             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 Departments financial position.
 4                   Provide the nature of the litigation contingencies including the range of loss for reasonably
                     possible contingencies.
 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.



                                                                                                               - 38 -
                                                                                                                                                                                        11/15/2011 17:55:13

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

     Note: 19              Commitments                                                                                                   Fiscal Year: 2011            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                           292                                                  298
 2              Undelivered orders     Credit                                                229,239                                              237,541




                                                                                                          - 39 -
                                                                                                                                                                                                        11/15/2011 17:55:13

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

     Note: 19              Commitments                                                                                                          Fiscal Year: 2011                 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
 9                                     Credit
10                                     Credit
11                                     Credit
12                                     Credit
13                                     Credit
14              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 agreements.                                      leases. Future lease payments are not accrued as liabilities, but expensed as incurred.
 2                      Explain any amounts listed in Section D in detail and reference the note, and/or location, in
                        the agency¿s Performance and Accountability Report (PAR).
 3                      Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                        the significant accounting policies pertaining to this note.




                                                                                                                - 40 -
                                                                                                                                                                                        11/15/2011 17:55:13

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

     Note: 22            Earmarked Funds                                                                                                Fiscal Year: 2011            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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                                                         4
                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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                                                         4
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                         4




                                                                                                         - 41 -
                                                                                                                                                                                         11/15/2011 17:55:13

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

     Note: 22            Earmarked Funds                                                                                                 Fiscal Year: 2011            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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                                                         4
                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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                                                         4
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                         4




                                                                                                        - 42 -
                                                                                                                                                                                                  11/15/2011 17:55:13

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

     Note: 22            Earmarked Funds                                                                                                 Fiscal Year: 2011               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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                                                                                                                                                                          4
                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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                            -4
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                            -4




                                                                                                         - 43 -
                                                                                                                                                                                                   11/15/2011 17:55:13

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

     Note: 22            Earmarked Funds                                                                                                  Fiscal Year: 2011               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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                                                                                                                                                                           4
                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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                            -4
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                            -4




                                                                                                          - 44 -
                                                                                                                                                                                         11/15/2011 17:55:13

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

     Note: 22            Earmarked Funds                                                                                              Fiscal Year: 2011               Period: SEPTEMBER
  Entity: 9100           Department of Education                                                                                      Agency Notes:      Note 22

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


      Section: E              Section Name: Revenue, Financing, Expenses, and Other - Current                                     Line Attributes: Dollars
                                            Year                                                                                Rounding Method: Millions                      Decimal: Zero
Line Status Line Description          NB              Net position,       Prior-period adjustment   Investment revenue 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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                             4
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                          -4

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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                                                                                                                                                                -4
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                                                                                                                                -4




                                                                                                       - 45 -
                                                                                                                                                                                         11/15/2011 17:55:13

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

     Note: 22            Earmarked Funds                                                                                              Fiscal Year: 2011               Period: SEPTEMBER
  Entity: 9100           Department of Education                                                                                      Agency Notes:      Note 22

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


      Section: F              Section Name: Revenue, Financing, Expenses, and Other - Prior                                       Line Attributes: Dollars
                                            Year                                                                                Rounding Method: Millions                      Decimal: Zero
Line Status Line Description          NB              Net position,       Prior-period adjustment   Investment revenue 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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                             8
                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                                    N/A
27                                    N/A
28                                    N/A
29                                    N/A
30                                    N/A
31              All other earmarked   N/A                                                                                 4                                                                              -4
                funds
32              Intra-agency          N/A
                earmarked funds
                elimination
                amounts
33              Total                 N/A                                                                                 4                                                                              -4




                                                                                                       - 46 -
                                                                                                                                                                                                        11/15/2011 17:55:13

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

     Note: 22           Earmarked Funds                                                                                                         Fiscal Year: 2011                Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                                 Agency Notes:       Note 22

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


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


Line Status Line Description          NB      2011 - SEPTEMBER                  2010 - 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 Departments
                                                                                                                              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 Departments
                                                                                                                              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.




                                                                                                               - 47 -
                                                                                                                                                                       11/15/2011 17:55:47

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

 Other Data: 09            Stewardship Investments                                                                           Fiscal Year: 2011             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 2011                   FY 2010                       FY 2009                FY 2008                 FY 2007
 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 2011                   FY 2010                       FY 2009                FY 2008                 FY 2007
 1                                  Debit
 2                                  Debit
 3                                  Debit
 4                                  Debit
 5                                  Debit
 6            Other investment in   Debit
              development




                                                                                                  - 1 -
                                                                                                                                                                                        11/15/2011 17:55:47

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

 Other Data: 09               Stewardship Investments                                                                                   Fiscal Year: 2011                  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 2011                   FY 2010                       FY 2009                    FY 2008                     FY 2007
 1               Federal Student Aid    Debit                      -5,555                     11,096                      -22,055                      20,037                      19,650
 2               Elementary and         Debit                      21,195                     21,608                       21,443                      21,583                      21,199
                 Secondary Education
 3               Special Education      Debit                      15,357                     15,227                       15,075                      15,730                      15,402
                 and Rehab Services
 4               Other Departmental     Debit                       7,341                       7,067                         7,150                     4,911                        5,109
                 Programs
 5               Salaries and           Debit                         504                        502                           472                        491                         467
                 Administration
 6               Other Investments in   Debit                      27,945                     44,019                       21,616                             0                           0
                 human capital
     Threshold
      Line Description                                               Question                                                                    Answer
      Other Data Info - Federal Student Aid (FY 2011)                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 2011)                                                      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 2011)                                                      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 2011)        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 2011)        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 decrease is the result of the cumulative disbursement of funds
      2011)                                                          changed by 20% or more and or greater than 5,000,000                        originally made available by the American Recovery and
                                                                     between the current fiscal year and prior fiscal year.                      Reinvestment Act of 2009.
                                                                     (Unaudited)


                                                                                                          - 2 -
                                                                                                                                                                               11/15/2011 17:55:47

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

 Other Data: 09               Stewardship Investments                                                                                Fiscal Year: 2011             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 2011                     FY 2010                       FY 2009                FY 2008                 FY 2007
 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 2011                     FY 2010                       FY 2009                FY 2008                 FY 2007
 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 physical
              property used in the "Other Data Info" tab. (SFFAS No.8 par. 87)




                                                                                                           - 3 -
                                                                                                                                                                                           11/15/2011 17:55:47

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

Other Data: 09               Stewardship Investments                                                                                    Fiscal Year: 2011                  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 used in the
            "Other Data Info" tab. (SFFAS No. 8, par. 100)
2           Provide a description of the progress of major developmental 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                                                                                        assistance programs for students pursuing postsecondary education and makes available
            capital used in the "Other Data Info" tab (SFFAS No. 8, par. 94).                                           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.

                                                                                                                        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


                                                                                                          - 4 -
                                                                                                                                                                                         11/15/2011 17:55:47

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

Other Data: 09              Stewardship Investments                                                                                    Fiscal Year: 2011                 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
                                                                                                                       children and young people for the long term health of the nation. Approximately 55 percent of
                                                                                                                       the Departments Recovery Act funding was appropriated for the creation of a new State
                                                                                                                       Fiscal Stabilization Fund with the goal to stabilize state and local government budgets to
                                                                                                                       avoid reductions in education and other essential public services while driving education
                                                                                                                       reform. The Department was tasked with promptly disbursing these funds through a variety
                                                                                                                       of existing and new grant programs, while ensuring the transparency. 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 used in the
            "Other Data
            Info" tab (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 used in
            the "Other Data
            Info" tab (SFFAS No. 8, par. 100).
2           Provide a description of any major new applications developed during the year (SFFAS No. 8,
            par. 99)




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