oversight

Financial Statement Audits for Fiscal Years 2013 and 2012 - U.S. Department of Education Special Purpose Financial Statements

Published by the Department of Education, Office of Inspector General on 2013-12-16.

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

                                   UNITED STATES DEPARTMENT OF EDUCATION
                                                        OFFICE OF INSPECTOR GENERAL

                                                                                                                           Audit Services

                                                                  December 16, 2013


MEMORANDUM


TO:                  Thomas P. Skelly
                     Delegated to perform the functions and duties
                     of the Chief Financial Officer

FROM:                Patrick J. Howard /s/
                     Assistant Inspector General for Audit

SUBJECT:             FINAL AUDIT REPORT
                     Fiscal Year 2013 Closing Package Financial Statements
                     U.S. Department of Education
                     ED-OIG/A17N0003

Attached is the subject final report on the results of the audit of the closing package financial
statements of the U.S. Department of Education for fiscal year 2013. The report should be read
in conjunction with the Department’s closing package 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 CliftonLarsonAllen, LLP and the OIG, during the audit.
Should you have any questions concerning the report, please contact me or Greg Spencer at 245­
6949 or 245-6015, respectively.


Attachment

Electronic Distribution List:

Emma Vadehra, Chief of Staff
Joseph Conaty, ODS
CAO, Assistant, ODS
Tim Soltis, OCFO
Jim Ropelewski, OCFO
Gary Wood, OCFO
Charles Laster, OCFO
John W. Hurt, III, FSA
Anthony Chavez, FSA
Tracey Sasser, OGC
Cynthia Dorfman, OCO
Gabriella Gomez, OLCA

 The Department of Education's mission is to promote student achievement and preparation for global competitiveness by fostering educational
                                                   excellence and ensuring equal access.
                                                                       CliftonLarsonAllen LLP

                                                                       www.cliftonlarsonallen.com




                         INDEPENDENT AUDITORS’ REPORT

                    ON CLOSING PACKAGE FINANCIAL STATEMENTS



Inspector General
United States Department of Education

Chief Financial Officer
United States Department of Education

In our audit of the fiscal year (FY) 2013 closing package financial statements of the United
States Department of Education (the Department), we found:

   •	 The closing package financial statements are presented fairly, in all material respects, in
      accordance with accounting principles generally accepted in the United States of
      America (U.S.);
   •	 No material weaknesses in internal control over financial reporting; and
   •	 No instances of reportable noncompliance with selected provisions of laws or regulations
      tested.

The following sections and Exhibits discuss in more detail: (1) these conclusions and other
matters related to the closing package financial statements, (2) our conclusions in connection
with our audit of the general purpose financial statements, (3) management’s responsibilities,
and (4) our responsibilities.

                   Report on the Closing Package Financial Statements

We have audited the FY2013 financial statements contained within the accompanying Closing
Package Financial Statement Report (herein referred to as the closing package financial
statements) of the Department, which comprise:
    •	 the Closing Package Financial Statement Report – Balance Sheet as of September 30,
       2013 and 2012
    •	 the related Closing Package Financial Statement Reports - Statement of Net Cost and
       Statement of Changes in Net Position, for the years then ended
    •	 the accompanying Financial Report (FR) Notes Report (except for the information in the
       FR Notes Report entitled “Threshold”) for the years then ended
    •	 the accompanying Additional Note No. 1
    •	 the accompanying Trading Partner Summary Note Report – Balance Sheet as of

       September 30, 2013 and 2012

    •	 the related Trading Partner Summary Note Report – Statement of Net Cost and 

       Statement of Changes in Net Position for the years then ended

INDEPENDENT AUDITORS’ REPORT ON CLOSING PACKAGE FINANCIAL STATEMENTS 

                              (Continued)

Management’s Responsibility for the Closing Package Financial Statements

Management is responsible for the preparation and fair presentation of these closing package
financial statements in accordance with U.S. generally accepted accounting principles. This
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of the closing package financial statements that are free from
material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these closing package financial statements based
on our audit. We conducted our audit in accordance with auditing standards generally accepted
in the U.S. and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the closing
package financial statements are free from material misstatement. We also conducted our audit
in accordance with Office of Management and Budget (OMB) Bulletin No. 14-02, Audit
Requirements for Federal Financial Statements (OMB Bulletin 14-02).

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the closing package financial statements. The procedures selected depend on the
auditors’ judgment, including the assessment of the risks of material misstatement of the closing
package financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the agency’s preparation and fair presentation
of the closing package financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the agency’s internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant estimates made by management, as well as evaluating the overall
presentation of the closing package financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.

Opinion on the Closing Package Financial Statements

In our opinion, the closing package financial statements referred to above present fairly, in all
material respects, the financial position of the Department as of September 30, 2013, and its net
cost and changes in net position for the year then ended in conformity with accounting principles
generally accepted in the U.S.

Emphasis of Matter
As discussed in Additional Note No. 1 to the closing package financial statements, the
accompanying closing package financial statements were prepared to comply with the
requirements of the U.S. Department of the Treasury’s Treasury Financial Manual (TFM)
Volume I, Part 2, Chapter 4700 for the purpose of providing financial information to the U.S.
Department of the Treasury and the U.S. Government Accountability Office to use in preparing
and auditing the Financial Report of the U.S. Government, and are not intended to be a
complete presentation of the balance sheets of the Department as of September 30, 2013 and
2012, and the related statements of net cost and changes in net position, and combined
INDEPENDENT AUDITORS’ REPORT ON CLOSING PACKAGE FINANCIAL STATEMENTS 

                              (Continued)

statements of budgetary resources (hereinafter referred to as “general-purpose financial
statements”) for the years then ended. Our opinion is not modified with respect to this matter.

Other Matters
We have audited, in accordance with auditing standards generally accepted in the U.S. and the
standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States the general-purpose financial statements of the
Department as of and for the year ended September 30, 2013, and our report thereon, dated
December 11, 2013, expressed an unmodified opinion on those financial statements.

U.S. generally accepted accounting principles require that the information in Other Data Report
No. 8, except for the information entitled “Threshold”, (which is discussed below) be presented
to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Federal Accounting Standards Advisory Board who
considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the U.S., which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic closing package financial statements,
and other knowledge we obtained during our audits of the closing package financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.

Management has omitted Management’s Discussion and Analysis and the Combining Schedule
of Budgetary Resources that U.S. generally accepted accounting principles require to be
presented to supplement the basic closing package financial statements. Such missing
information, although not a part of the basic closing package financial statements, is required by
the Federal Accounting Standards Advisory Board who considers it to be an essential part of
financial reporting for placing the general-purpose financial statements in an appropriate
operational, economic, or historical context. Our opinion on the closing package financial
statements is not affected by this missing information.

Other Information
Our audit was conducted for the purpose of forming an opinion on the basic closing package
financial statements as a whole. The information in the sections included in the Other Data
Report No. 16; the information entitled “Threshold” in Other Data Report No. 8 and the
information in the sections entitled “Threshold” in FR Notes Report No. 2, 4A, 8,15 and 19; the
information in the Closing Package Line Reclassification Summary Report – Balance Sheet; and
the information in the Closing Package Line Reclassification Summary Reports – Statement of
Net Cost and Statement of Changes in Net Position are presented for purposes of additional
analysis in accordance with TFM Chapter 4700 and are not a required part of the closing
package financial statements. Such information has not been subjected to the auditing
procedures applied in the audits of the closing package financial statements and, accordingly,
we do not express an opinion or provide any assurances on it.
INDEPENDENT AUDITORS’ REPORT ON CLOSING PACKAGE FINANCIAL STATEMENTS 

                              (Continued)

Prior Year General Purpose Financial Statements
The FY2012 general purpose and closing package financial statements of the Department were
audited by other auditors whose reports, dated November 16, 2012, expressed unmodified
opinions on those statements.

    Report on Internal Control over Financial Reporting and on Compliance and Other

    Matters Based on an Audit of Financial Statements Performed in Accordance with 

                            Government Auditing Standards

Report on Internal Control over Financial Reporting as a Result of our Audit of the
Department’s 2013 General Purpose Financial Statements

In accordance with Government Auditing Standards, we have also issued a combined report
dated December 11, 2013 that discusses our consideration of the Department’s internal control
over financial reporting and the results of our tests of its compliance with certain provisions of
laws, regulations, and other matters that are required to be reported under Government Auditing
Standards. This report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the Department’s internal control and compliance, and should
be read in conjunction with this report in considering the results of our audits of the closing
package financial statements.

In our fiscal year 2013 audit of the basic general-purpose financial statements of the
Department, we noted two significant deficiencies which are summarized below and in more
detail in Exhibit A to our report on the general purpose financial statements.

    Functionality and internal controls over some loan servicing systems need improvement

       The Department’s Federal Student Aid (FSA) office experienced significant
       issues with the initial functionality of two new loan servicing systems
       implemented at the beginning of FY2012. These issues directly impacted the
       reliability of borrower account information and the related financial statement
       balances throughout FY2012. Management identified, and the implemented
       corrective actions addressed, a number of the underlying system issues in
       FY2012. However, some of the remaining FY2012 issues, including new issues
       of lesser significance identified in FY2013, continued to impact the reliability of
       borrower account information and related financial statement balances
       throughout FY2013.

        The Department and FSA management need to mitigate persistent Information 

                           Technology (IT) control deficiencies


       Due to the unique requirements of the Department’s grant, loan and
       administrative business activities, the Department oversees a large portfolio of
       government-owned/government           operated,  government-owned/contractor­
       operated, and contractor-owned/contractor-operated information systems. Five
       FSA systems and one Department system comprise the key financial systems.
       The third party servicers who manage the Department and FSA’s general
       support systems are monitored by management through the use of Service Level
       Agreements and independent reviews. For several years, financial and other
INDEPENDENT AUDITORS’ REPORT ON CLOSING PACKAGE FINANCIAL STATEMENTS 

                              (Continued)

       audits have identified numerous system deficiencies that affect the security and
       reliability of the information within these systems.

Report on Internal Control over Financial Reporting Specific to the Closing Package
Financial Statements

In planning and performing our audit of the closing package financial statements as of and for
the year ended September 30, 2013, we also considered the Department’s internal control over
the financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinion on the closing package financial
statements, but not for the purpose of expressing an opinion of the effectiveness of the
Department’s internal control. Accordingly, we do not express an opinion on the effectiveness
of the Department’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in their normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected, on a timely basis.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is
less severe than a material weakness yet important enough to merit the attention by those
charged with governance. Our consideration of internal control was for the limited purpose
described in the preceding paragraph and was not designed to identify all deficiencies in internal
control that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.

Report on Compliance and Other Matters Specific to the Closing Package Financial
Statements

As part of obtaining reasonable assurance about whether the Department’s closing package
financial statements are free from material misstatement, we also performed tests of its
compliance with certain provisions of TFM Chapter 4700. However, providing an opinion on
compliance with those provisions was not an objective of our audit of the closing package
financial statements, and accordingly, we do not express such an opinion. The results of our
tests of compliance with TFM Chapter 4700 disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.

Agency Comments and our Evaluation

Management concurred with the results of our audit. We did not audit the Department’s
response and, accordingly, we express no opinion on it.

Purpose of the Other Reporting Required by Government Auditing Standards

The purpose of the communication provided in the Other Reporting Required by Government
Auditing Standards section is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion
INDEPENDENT AUDITORS’ REPORT ON CLOSING PACKAGE FINANCIAL STATEMENTS 

                              (Continued)

on the effectiveness of the Department’s internal control or on compliance. This communication
is an integral part of an audit performed in accordance with U.S. generally accepted government
auditing standards in considering internal control and compliance with provisions of laws and
regulations that have a material effect on the closing package financial statements.
Accordingly, this communication is not suitable for any other purpose.

Restriction on Use of the Report on the Closing Package Financial Statements

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




a
CliftonLarsonAllen LLP
Arlington, Virginia
December 16, 2013
                        UNITED STATES DEPARTMENT OF EDUCATION

                                    OFFICE OF THE CHIEF FINANCIAL OFFICER

                                                                           THE CHIEF FINANCIAL OFFICER




                                                                                         DEC 1 3 2013

MEMORANDUM

TO : 	           Patrick J. Howard


                                                                   11j
                 Assistant Inspector General for Audit

FROM: 	          Thomas P. Skelly            ~f
                 Delegated to Perform the Functions 

                  and Duties of the Chief Financial Officer 


SUBJECT: 	       DRAFT AUDIT REPORT
                 Fiscal Year 2013 Closing Package Financial Statements
                 Control Number ED-OIG/A17N0003


Please convey my sincere thanks and appreciation to everyone on your staff who worked
diligently on this financial statement audit. The Department has reviewed the draft Fiscal
Year 2013 Closing Package Financial Statements Audit Report. Without exception, we
concur arid agree.

Again, please.convey my appreciation to everyone on your staff whose efforts permitted
the Department to complete the audit within the established timeframe.

Please contact Gary Wood, Director, Financial Management Operations, at (202) 245­
8118 with any questions or comments.




                                400 MARYLAND AVE., S.W., WASHINGTON, D.C. 20202-4300
                                                         www.ed.gov

         Our mission is to ensure equal access to education and to promote educational exceUence throughout the Nation.
                                                                       U.S Department of the Treasury                                         12-16-2013 11:04:08

                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:       2013                               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               2013-SEPTEMBER                       2012-SEPTEMBER                     Previously Reported
Assets:
Non-Federal
Cash and Other Monetary Assets                                                1,482                               1,307                               1,307
Accounts and Taxes Receivable                                                   121                                  92                                  92
Loans Receivable and mortgage                                               826,684                             673,488                             673,488
backed securities
TARP Direct Loans and Equity                                                       0                                 0                                       0
Investments
Inventory and Related Property                                                     0                                 0                                       0
Property, Plant and Equipment                                                      2                                 7                                       7
Debt and Equity Securities                                                         0                                 0                                       0
Investment in Government sponsored                                                 0                                 0                                       0
enterprises (GSEs)
Derivative Assets                          I                                      0                                   0                                   0
Other Assets                                                                     13                                  21                                  21
Total Non-Federal Assets                                                    828,302                             674,915                             674,915

Federal
Fund Balance with Treasury                                                  108,732                             121,993                             121,993
Federal Investments                                                               0                                   0                                   0
Accounts Receivable                                                               2                                   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
Receivable




                                                                                              -1­
                                                                       U.S Department of the Treasury
                                          12-16-2013 11:04:08

                                                                        Financial Management Service

                                                                   Governmentwide Financial Report System


                                                             GF003F-Closing Package Financial Statement Report


Statement: BALANCE SHEET                                            Fiscal Year:        2013                                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              2013-SEPTEMBER                        2012-SEPTEMBER                      Previously Reported
Advances to Others and Prepayments                                               22                                    18                                  18
Other Assets (without reciprocals)                                                0                                     0                                   0
Total Federal Assets                                                        108,756                               122,012                             122,012
Total Assets                                                                937,058                               796,927                             796,927

Liabilities
Non-Federal
Accounts Payable                                                              (4,127)                              (4,098)                             (4,098)
Federal Debt Securities Held by the                                                0                                    0                                   0
Public
Federal Employee and Veteran                                                     (15)                                 (16)                                (16)
Benefits Payable
Environmental and Disposal                                                         0                                    0                                      0
Liabilities
Benefits Due and Payable                                                           0                                    0                                   0
Loan Guarantee Liabilities                                                         0                               (1,037)                             (1,037)
Liabilities to Government Sponsored                                                0                                    0                                   0
Enterprises
Insurance and Guarantee Program                                                    0                                    0                                      0
Liabilities
Derivative Liabilities                     I                                       0                                    0                                   0
Other Liabilities                                                             (2,302)                              (3,036)                             (3,036)
Total Non-Federal Liabilities                                                 (6,444)                              (8,187)                             (8,187)

Federal
Accounts Payable                                                                  (2)                                   0                                   0
Accounts Payable, capital transfers                                           (2,375)                              (2,914)                             (2,914)




                                                                                               -2­
                                                                       U.S Department of the Treasury                                        12-16-2013 11:04:08
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                             GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:        2013                             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              2013-SEPTEMBER                        2012-SEPTEMBER                   Previously Reported
Federal Debt                                                                      0                                     0                                0
Interest Payable                                                                 (9)                                   (4)                              (4)
Loans Payable                                                              (852,423)                             (715,299)                        (715,299)
Transfers Payable                                                                 0                                     0                                0
Benefit Program Contributions                                                   (10)                                  (10)                             (10)
Payable
Advances from Others and Deferred                                                (29)                                 (35)                             (35)
Credits
Liability to the General Fund for                                             (6,425)                              (3,982)                          (3,982)
custodial and other non-entity assets
Other Liabilities (without reciprocals)                                      (1,498)                               (1,341)                          (1,341)
Total Federal Liabilities                                                  (862,771)                             (723,585)                        (723,585)
Total Liabilities                                                          (869,215)                             (731,772)                        (731,772)


Net Position-All Other Funds                                                 (67,840)                             (65,152)                         (65,155)
Net Position- Funds From Dedicated                                                (3)                                  (3)                               0
Collections

Total Net Position                                                          (67,843)                              (65,155)                         (65,155)
Total Liabilities and Net Position                                         (937,058)                             (796,927)                        (796,927)




                                                                                               -3­
                                                                       U.S Department of the Treasury                                         12-16-2013 11:04:08

                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF NET COST                                    Fiscal Year:       2013                               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               2013-SEPTEMBER                       2012-SEPTEMBER                     Previously Reported
Gross Cost:
Non-Federal Gross Cost                                                       32,427                              62,065                              62,065
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                                                 32,427                              62,065                              62,065

Federal Gross Cost
Benefit Program Costs                                                           122                                 126                                 126
Imputed Costs                                                                    34                                  34                                  34
Buy/Sell Costs                                                                  318                                 360                                 360
Federal Securities Interest Expense                                               0                                   0                                   0
Borrowing and Other Interest                                                 28,452                              26,643                              26,643
Expense
Borrowing Losses                                                                  0                                  35                                  35
Other Expenses (without reciprocals)                                              0                                   0                                   0
Total Federal Gross Cost                                                     28,926                              27,198                              27,198
Department Total Gross Cost                                                  61,353                              89,263                              89,263

Earned Revenue
Non-Federal Earned Revenue                                                  (23,179)                            (20,031)                            (20,031)

Federal Earned Revenue
Benefit Program Revenue (exchange)                                                 0                                  0                                      0
Buy/Sell Revenue                                                                   0                                  0                                      0
Federal Securities Interest Revenue                                                0                                  0                                      0
(exchange)




                                                                                              -4­
                                                                       U.S Department of the Treasury                                         12-16-2013 11:04:08
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF NET COST                                    Fiscal Year:       2013                               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               2013-SEPTEMBER                       2012-SEPTEMBER                     Previously Reported
Borrowing and Other Interest                                                  (4,049)                            (5,272)                             (5,272)
Revenue (Exchange)
Borrowings Gains                                                                   0                                (29)                                (29)
Other Revenue (without reciprocals)                                              347                               (158)                               (158)
Total Federal Earned Revenue                                                  (3,702)                            (5,459)                             (5,459)

Department Total Earned Revenue                                             (26,881)                            (25,490)                            (25,490)

Net Cost                                                                     34,472                              63,773                              63,773




                                                                                              -5­
                                                                       U.S Department of the Treasury                                         12-16-2013 11:04:08
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2013                               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               2013-SEPTEMBER                       2012-SEPTEMBER                     Previously Reported
Beginning Net Position                                                      (65,155)                            (68,585)                            (68,585)
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                                             (65,155)                            (68,585)                            (68,585)
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                                                         (11)                                (2)                                 (2)




                                                                                              -6­
                                                                       U.S Department of the Treasury                                          12-16-2013 11:04:08
                                                                        Financial Management Service

                                                                   Governmentwide Financial Report System


                                                             GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                            2013                               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              2013-SEPTEMBER                        2012-SEPTEMBER                     Previously Reported
Miscellaneous Earned Revenue                                                       0                                   0                                   0
Total Non-Federal Nonexchange                                                    (11)                                 (2)                                 (2)
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                                          (88,169)                            (97,880)                            (97,880)
(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                                          12-16-2013 11:04:08
                                                                        Financial Management Service

                                                                   Governmentwide Financial Report System


                                                             GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                            2013                               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              2013-SEPTEMBER                        2012-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                                                 3,880                                  22                                      0
Financing Sources - Capital Transfers
Nonexpenditure Transfers-out of                                               (3,857)                                 29                                  51
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                                             (3,859)                               (393)                               (393)
Total Budgetary Financing Sources                                            (92,005)                            (98,222)                            (98,222)

Other Financing Sources:
Transfers-in Without Reimbursement                                                 0                                   0                                      0
Transfers-out Without                                                              0                                   0                                      0
Reimbursement
Imputed Financing Source                                                         (34)                                (34)                                (34)
Non-Entity Collections Transferred                                            48,681                              40,730                              40,730
to the General Fund
Accrual for Non-entity Amounts to                                              6,209                              (2,815)                             (2,815)
be Collected and Transferred to the
General Fund
Other non-budgetary financing                                                      0                                   0                                      0




                                                                                               -8­
                                                                       U.S Department of the Treasury                                         12-16-2013 11:04:08
                                                                        Financial Management Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2013                               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               2013-SEPTEMBER                       2012-SEPTEMBER                     Previously Reported
sources
Total Other Financing Sources                                                54,856                              37,881                              37,881


Net Cost                                                                     34,472                              63,773                              63,773

Ending Net Position Balance                                                 (67,843)                            (65,155)                            (65,155)




                                                                                              -9­
                                                               U.S. Department of the Treasury
                                    12/16/2013 11:04:24
                                                                 Financial Management Service

                                                            Governmentwide Financial Report System


                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2013                                   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      2013-SEPTEMBER          2012-SEPTEMBER
                                                                                    Type
 4   Fund Balance with Treasury (Note 3)                                              A      D        B                 108,732                 121,993
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported      Line Item Changes
Fund Balance with Treasury                             F                108,732                121,993                   121,993                     0
Total:                                                                  108,732                121,993                   121,993                     0

Line Agency Line Description                                                Status Account NB       F/N      2013-SEPTEMBER          2012-SEPTEMBER
                                                                                    Type
 5   Accounts Receivable (Note 4)                                                     A      D        F                       2                          1
                                                                                   Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported      Line Item Changes
Accounts Receivable                                    F                   2                      1                            1                     0
Total:                                                                     2                      1                            1                     0

Line Agency Line Description                                                Status Account NB       F/N      2013-SEPTEMBER          2012-SEPTEMBER
                                                                                    Type
 6   Other Intragovernmental Assets (Note 8)                                          A      D        B                      22                      18
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported      Line Item Changes
Advances to Others and Prepayments                     F                   22                     18                         18                      0
Total:                                                                     22                     18                         18                      0




                                                                             -1­
                                                               U.S. Department of the Treasury
                                    12/16/2013 11:04:24
                                                                 Financial Management Service

                                                            Governmentwide Financial Report System


                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2013                                   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      2013-SEPTEMBER          2012-SEPTEMBER
                                                                                    Type
 9   Cash and Other Monetary Assets (Note 5)                                          A      D        B                    1,482                  1,307
                                                                                   Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported      Line Item Changes
Cash and Other Monetary Assets                         N                 1,482                  1,307                      1,307                     0
Total:                                                                   1,482                  1,307                      1,307                     0

Line Agency Line Description                                                Status Account NB       F/N      2013-SEPTEMBER          2012-SEPTEMBER
                                                                                    Type
 10 Accounts Receivable, Net (Note 4)                                                 A      D        B                     121                      92
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported      Line Item Changes
Accounts and Taxes Receivable                          N                  121                     92                         92                      0
Total:                                                                    121                     92                         92                      0

Line Agency Line Description                                                Status Account NB       F/N      2013-SEPTEMBER          2012-SEPTEMBER
                                                                                    Type
 11 Credit Program Receivables, Net (Note 6)                                          A      D        N                 826,684                 673,488
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported      Line Item Changes
Loans Receivable and mortgage backed                   N                826,684                673,488                   673,488                     0
securities
Total:                                                                  826,684                  673,488                673,488                          0




                                                                             -2­
                                                             U.S. Department of the Treasury
                                    12/16/2013 11:04:24
                                                               Financial Management Service

                                                          Governmentwide Financial Report System


                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                  Fiscal Year: 2013                                   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      2013-SEPTEMBER          2012-SEPTEMBER
                                                                                  Type
 12 Property and Equipment, Net (Note 7)                                            A      D        B                       2                          7
                                                                                 Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported      Line Item Changes
Property, Plant and Equipment                        N                   2                      7                            7                     0
Total:                                                                   2                      7                            7                     0

Line Agency Line Description                                              Status Account NB       F/N      2013-SEPTEMBER          2012-SEPTEMBER
                                                                                  Type
 13 Other Assets (Note 8)                                                           A      D        N                      13                      21
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported      Line Item Changes
Other Assets                                         N                   13                     21                         21                      0
Total:                                                                   13                     21                         21                      0

Line Agency Line Description                                              Status Account NB       F/N      2013-SEPTEMBER          2012-SEPTEMBER
                                                                                  Type
 19 Accounts Payable (Note 9)                                                       L      C        F                       2                      31
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported      Line Item Changes
Accounts Payable                                     F                    2                      0                           0                     0
Other Liabilities (without reciprocals)              F                    0                     31                         31                      0
Total:                                                                   (2)                   (31)                       (31)                     0




                                                                           -3­
                                                             U.S. Department of the Treasury
                                     12/16/2013 11:04:24
                                                               Financial Management Service

                                                          Governmentwide Financial Report System


                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2013                                  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    2013-SEPTEMBER           2012-SEPTEMBER
                                                                                    Type
 20 Debt (Note 10)                                                                    L      C      F                  852,432                 715,303
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2013-SEPTEMBER          2012-SEPTEMBER        Previously Reported       Line Item Changes
Interest Payable                                     F                       9                       4                       4                      0
Loans Payable                                        F                 852,423                 715,299                 715,299                      0
Total:                                                                (852,432)               (715,303)               (715,303)                     0
Line Agency Line Description                                                Status Account NB       F/N    2013-SEPTEMBER           2012-SEPTEMBER
                                                                                    Type
 21 Guaranty Agency Federal and Restricted Funds Due to Treasury (Note 5)             L      C      F                    1,482                   1,307
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2013-SEPTEMBER          2012-SEPTEMBER        Previously Reported       Line Item Changes
Other Liabilities (without reciprocals)              F                  1,482                   1,307                    1,307                      0
Total:                                                                 (1,482)                 (1,307)                  (1,307)                     0

Line Agency Line Description                                                Status Account NB       F/N    2013-SEPTEMBER           2012-SEPTEMBER
                                                                                    Type
 22 Payable to Treasury (Note 6)                                                      L      C      F                        0                          0
                                                                                   Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2013-SEPTEMBER          2012-SEPTEMBER        Previously Reported       Line Item Changes
Accounts Payable, capital transfers                  F                    0                       0                      2,914                  (2,914)
Total:                                                                    0                       0                     (2,914)                 (2,914)




                                                                             -4­
                                                                U.S. Department of the Treasury
                                   12/16/2013 11:04:24
                                                                  Financial Management Service

                                                             Governmentwide Financial Report System


                                              GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                     Fiscal Year: 2013                                  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    2013-SEPTEMBER           2012-SEPTEMBER
                                                                                     Type
 23 Other Intragovernmental Liabilities (Note 11)                                      L      C        F                  8,855                   6,944
                                                                                    Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description                Status F/N     2013-SEPTEMBER         2012-SEPTEMBER        Previously Reported       Line Item Changes
Benefit Program Contributions Payable                   F                    10                     10                       10                      0
Advances from Others and Deferred Credits               F                    29                     35                       35                      0
Other Liabilities (without reciprocals)                 F                    16                      3                        3                      0
Liability to the General Fund for custodial and         F                 6,425                  3,982                    3,982                      0
other non-entity assets
Accounts Payable, capital transfers                     F                  2,375                   2,914                      0                   2,914
Total:                                                                    (8,855)                 (6,944)                (4,030)                  2,914
Line Agency Line Description                                                 Status Account NB       F/N    2013-SEPTEMBER           2012-SEPTEMBER
                                                                                     Type
 27 Accounts Payable (Note 9)                                                          L      C        N                  4,127                   4,098
                                                                                    Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N       2013-SEPTEMBER         2012-SEPTEMBER        Previously Reported       Line Item Changes
Accounts Payable                                      N                   4,127                  4,098                    4,098                      0
Total:                                                                   (4,127)                (4,098)                  (4,098)                     0




                                                                              -5­
                                                               U.S. Department of the Treasury
                                     12/16/2013 11:04:24
                                                                 Financial Management Service

                                                            Governmentwide Financial Report System


                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2013                                    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      2013-SEPTEMBER           2012-SEPTEMBER
                                                                                    Type
 28 Accrued Grant Liability (Note 12)                                                 L      C        N                    2,170                   2,901
                                                                                   Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported       Line Item Changes
Other Liabilities                                      N                 2,170                  2,901                      2,901                      0
Total:                                                                  (2,170)                (2,901)                    (2,901)                     0

Line Agency Line Description                                                Status Account NB       F/N      2013-SEPTEMBER           2012-SEPTEMBER
                                                                                    Type
 29 Liabilities for Loan Guarantees (Note 6)                                          L      C        N                        0                   1,037
                                                                                   Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported       Line Item Changes
Loan Guarantee Liabilities                             N                   0                    1,037                      1,037                      0
Total:                                                                     0                   (1,037)                    (1,037)                     0

Line Agency Line Description                                                Status Account NB       F/N      2013-SEPTEMBER           2012-SEPTEMBER
                                                                                    Type
 30 Other Liabilities (Note 11)                                                       L      C        N                      147                     151
                                                                                   Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported       Line Item Changes
Federal Employee and Veteran Benefits                  N                   15                     16                         16                       0
Payable
Other Liabilities                                     N                     132                      135                     135                          0
Total:                                                                     (147)                    (151)                   (151)                         0



                                                                             -6­
                                                             U.S. Department of the Treasury
                                     12/16/2013 11:04:24
                                                               Financial Management Service

                                                          Governmentwide Financial Report System


                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2013                                  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    2013-SEPTEMBER           2012-SEPTEMBER
                                                                                    Type
 37 Unexpended Appropriations                                                         E      C      B                   71,371                  72,686
                                                                                   Variance:                                 0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2013-SEPTEMBER          2012-SEPTEMBER        Previously Reported       Line Item Changes
Net Position-All Other Funds                         B                  71,371                  72,686                  72,686                      0
Total:                                                                 (71,371)                (72,686)                (72,686)                     0

Line Agency Line Description                                                Status Account NB       F/N    2013-SEPTEMBER           2012-SEPTEMBER
                                                                                    Type
 38 Cumulative Results of Operations - Earmarked Funds (Note 20)               I      E      C      B
                                                                                   Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2013-SEPTEMBER          2012-SEPTEMBER        Previously Reported       Line Item Changes
Total:                                                                    0                       0                          0                      0


Line Agency Line Description                                                Status Account NB       F/N    2013-SEPTEMBER           2012-SEPTEMBER
                                                                                    Type
 39 Cumulative Results of Operations                                                  E      C      B                   (3,528)                  (7,531)
                                                                                   Variance:                                 0                        0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2013-SEPTEMBER          2012-SEPTEMBER        Previously Reported       Line Item Changes
Net Position- Funds From Dedicated                   B                    3                       3                          0                      3
Collections
Net Position-All Other Funds                        B                    (3,531)                 (7,534)                (7,531)                     (3)
Total:                                                                    3,528                   7,531                  7,531                       0



                                                                             -7­
                                                             U.S. Department of the Treasury                                     12/16/2013 11:04:24
                                                               Financial Management Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF NET COST                                          Fiscal Year: 2013                                   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      2013-SEPTEMBER          2012-SEPTEMBER
                                                                                  Type
 42 Total Gross costs                                                              GC      D       B                    61,353                 89,263
                                                                                 Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported      Line Item Changes
Imputed Costs                                        F                    34                     34                         34                     0
Buy/Sell Costs                                       F                   318                    360                        360                     0
Benefit Program Costs                                F                   122                    126                        126                     0
Borrowing and Other Interest Expense                 F                28,452                 26,643                     26,643                     0
Borrowing Losses                                     F                     0                     35                         35                     0
Non-Federal Gross Cost                               N                32,427                 62,065                     62,065                     0
Total:                                                                61,353                 89,263                     89,263                     0
Line Agency Line Description                                              Status Account NB       F/N      2013-SEPTEMBER          2012-SEPTEMBER
                                                                                  Type
 43 Total Earned Revenue                                                           ER      C       B                    26,881                 25,490
                                                                                 Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2013-SEPTEMBER         2012-SEPTEMBER          Previously Reported      Line Item Changes
Borrowings Gains                                     F                     0                     29                         29                     0
Borrowing and Other Interest Revenue                 F                 4,049                  5,272                      5,272                     0
(Exchange)
Non-Federal Earned Revenue                          N                  23,179                   20,031                 20,031                          0
Other Revenue (without reciprocals)                 F                    (347)                     158                    158                          0
Total:                                                                (26,881)                 (25,490)               (25,490)                         0




                                                                           -8­
                                                                U.S. Department of the Treasury
                                   12/16/2013 11:04:24
                                                                  Financial Management Service

                                                             Governmentwide Financial Report System


                                              GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                              Fiscal Year: 2013                                  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    2013-SEPTEMBER           2012-SEPTEMBER
                                                                                     Type
 3   Beginning Balances - Earmarked Funds                                       I     BN      C        B
                                                                                    Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N       2013-SEPTEMBER         2012-SEPTEMBER        Previously Reported       Line Item Changes
Total:                                                                      0                      0                          0                      0


Line Agency Line Description                                                 Status Account NB       F/N    2013-SEPTEMBER           2012-SEPTEMBER
                                                                                     Type
 4   Beginning Balances                                                               BN      C        B                 (7,531)                  (3,144)
                                                                                    Variance:                                 0                        0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N       2013-SEPTEMBER         2012-SEPTEMBER        Previously Reported       Line Item Changes
Beginning Net Position                                B                  (7,531)                (3,144)                  (3,144)                     0
Total:                                                                    7,531                  3,144                    3,144                      0

Line Agency Line Description                                                 Status Account NB       F/N    2013-SEPTEMBER           2012-SEPTEMBER
                                                                                     Type
 8   Other Adjustments (rescission, etc) - Earmarked Funds                      I      F      C        B
                                                                                    Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N       2013-SEPTEMBER         2012-SEPTEMBER        Previously Reported       Line Item Changes
Total:                                                                      0                      0                          0                      0




                                                                              -9­
                                                                 U.S. Department of the Treasury
                                   12/16/2013 11:04:24
                                                                   Financial Management Service

                                                              Governmentwide Financial Report System


                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2013                                  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     2013-SEPTEMBER          2012-SEPTEMBER
                                                                                      Type
  9   Other Adjustments (rescission, etc)                                               F      C        B                      0                          1
                                                                                     Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2013-SEPTEMBER          2012-SEPTEMBER        Previously Reported      Line Item Changes
Appropriations received as adjusted (rescissions         F                   0                       1                          1                     0
and other adjustments)
Total:                                                                          0                       (1)                   (1)                         0
Line Agency Line Description                                                  Status Account NB       F/N     2013-SEPTEMBER          2012-SEPTEMBER
                                                                                      Type
 11 Appropriations Used                                                                 F      C        B                  89,484                 96,922
                                                                                     Variance:                                  0                      0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2013-SEPTEMBER          2012-SEPTEMBER        Previously Reported      Line Item Changes
Nonexpenditure transfers-in of unexpended              F                  89,484                  96,922                   96,922                     0
appropriations and financing sources
Total:                                                                    (89,484)                 (96,922)              (96,922)                         0
Line Agency Line Description                                                  Status Account NB       F/N     2013-SEPTEMBER          2012-SEPTEMBER
                                                                                      Type
 13 Nonexchange Revenue                                                                 F      C        B                     10                          1
                                                                                     Variance:                                 0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2013-SEPTEMBER          2012-SEPTEMBER        Previously Reported      Line Item Changes
Other Taxes and Receipts                               N                     10                       1                         1                     0
Total:                                                                      (10)                     (1)                      (1)                     0




                                                                               - 10 ­
                                                                U.S. Department of the Treasury
                                  12/16/2013 11:04:24
                                                                  Financial Management Service

                                                             Governmentwide Financial Report System


                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                              Fiscal Year: 2013                                 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    2013-SEPTEMBER          2012-SEPTEMBER
                                                                                     Type
 15 Donations and Forfeitures of Cash and Cash Equivalents                             F      C        B                     1                          1
                                                                                    Variance:                                0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N        2013-SEPTEMBER          2012-SEPTEMBER       Previously Reported      Line Item Changes
Other Taxes and Receipts                             N                       1                       1                        1                     0
Total:                                                                      (1)                     (1)                     (1)                     0

Line Agency Line Description                                                 Status Account NB       F/N    2013-SEPTEMBER          2012-SEPTEMBER
                                                                                     Type
 17 Nonexpenditure Financing Sources - Transfers-Out                                   F      C        F                     0                     (29)
                                                                                    Variance:                                0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N        2013-SEPTEMBER          2012-SEPTEMBER       Previously Reported      Line Item Changes
Nonexpenditure Transfers-out of Financing            F                      0                       29                      51                    (22)

Sources - Capital Transfers

Total:                                                                         0                       29                   51                     (22)

Line Agency Line Description                                                 Status Account NB       F/N    2013-SEPTEMBER          2012-SEPTEMBER
                                                                                     Type
 21 Imputed Financing from Costs Absorbed by Others                                    F      C        F                    34                      34
                                                                                    Variance:                                0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N        2013-SEPTEMBER          2012-SEPTEMBER       Previously Reported      Line Item Changes
Imputed Financing Source                             F                      34                      34                      34                      0
Total:                                                                     (34)                    (34)                    (34)                     0




                                                                              - 11 ­
                                                              U.S. Department of the Treasury                                        12/16/2013 11:04:24
                                                                Financial Management Service
                                                           Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2013                                   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     2013-SEPTEMBER           2012-SEPTEMBER
                                                                                      Type
 23 Negative Subsidy Transfers, Downward Subsidy Re-estimates, and Other                F      C      B                   (51,054)                (37,544)
                                                                                     Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N     2013-SEPTEMBER             2012-SEPTEMBER        Previously Reported       Line Item Changes
Other budgetary financing sources                     F                 3,859                       393                      393                       0
Nonexpenditure Transfers-out of Financing             F                (3,857)                        0                         0                      0
Sources - Capital Transfers
Nonexpenditure Transfers-In of Financing              F                    (3,880)                     (22)                     0                     (22)
Sources - Capital Transfers
Accrual for Non-entity Amounts to be                  F                    6,209                    (2,815)                (2,815)                         0
Collected and Transferred to the General Fund
Non-Entity Collections Transferred to the             F                    48,681                  40,730                  40,730                          0
General Fund
Total:                                                                     51,054                  37,544                  37,522                     (22)
Line Agency Line Description                                                  Status Account NB       F/N     2013-SEPTEMBER           2012-SEPTEMBER
                                                                                      Type
 39 Beginning Balances                                                                 BN      C      B                    72,686                  71,729
                                                                                     Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2013-SEPTEMBER             2012-SEPTEMBER        Previously Reported       Line Item Changes
Beginning Net Position                               B                  72,686                     71,729                  71,729                      0
Total:                                                                 (72,686)                   (71,729)                (71,729)                     0




                                                                               - 12 ­
                                                                 U.S. Department of the Treasury
                                     12/16/2013 11:04:24
                                                                   Financial Management Service

                                                              Governmentwide Financial Report System


                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2013                                    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      2013-SEPTEMBER           2012-SEPTEMBER
                                                                                       Type
 43 Appropriations Received                                                              F      C       F                   90,993                  98,372
                                                                                      Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2013-SEPTEMBER          2012-SEPTEMBER         Previously Reported       Line Item Changes
Appropriations received as adjusted (rescissions         F                90,993                  98,372                    98,372                      0
and other adjustments)
Total:                                                                    (90,993)                  (98,372)               (98,372)                         0
Line Agency Line Description                                                   Status Account NB      F/N      2013-SEPTEMBER           2012-SEPTEMBER
                                                                                       Type
 45 Other Adjustments (rescissions, etc)                                                 F      C       B                   (2,824)                    (493)
                                                                                      Variance:                                  0                        0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2013-SEPTEMBER          2012-SEPTEMBER         Previously Reported       Line Item Changes
Appropriations received as adjusted (rescissions         F                (2,824)                  (493)                     (493)                      0
and other adjustments)
Total:                                                                      2,824                       493                   493                           0
Line Agency Line Description                                                   Status Account NB      F/N      2013-SEPTEMBER           2012-SEPTEMBER
                                                                                       Type
 47 Appropriations Used                                                                  F      C       B                  (89,484)                (96,922)
                                                                                      Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2013-SEPTEMBER          2012-SEPTEMBER         Previously Reported       Line Item Changes
Nonexpenditure transfers-in of unexpended              F                  (89,484)                (96,922)                 (96,922)                     0
appropriations and financing sources
Total:                                                                     89,484                    96,922                 96,922                          0



                                                                               - 13 ­
                                                             U.S.Department of the Treasury                             12-16-2013 11:14:28
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2013                            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          2013-SEPTEMBER        2012-SEPTEMBER
 BS              Accounts Receivable                              A                   D                        2                     1
                                                                                 Variance:                         0                     0

Trading          Name                           Status 2013-SEPTEMBER      2012-SEPTEMBER         Previously Reported    Line item Changes
Partner
 4900 National Science Foundation                                    1                        0                    0                     0
 7500 Department of Health and Human                                 1                        1                    1                     0
        Services
                                   Total                             2                        1                    1                     0

Agency FS Status CP Line Description                              Account Type        NB          2013-SEPTEMBER        2012-SEPTEMBER
 BS              Advances to Others and Prepayments               A                   D                        22                    18
                                                                                 Variance:                         0                     0

Trading       Name                              Status 2013-SEPTEMBER      2012-SEPTEMBER         Previously Reported    Line item Changes
Partner
 1400 Department of the Interior                                    22                       18                   18                     0
                                   Total                            22                       18                   18                     0




                                                                          -1­
                                                              U.S.Department of the Treasury                                   12-16-2013 11:14:28
                                                              Financial Management Service
                                                          Governmentwide Financial Report System

                                                       GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                           Fiscal Year: 2013                                 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               2013-SEPTEMBER         2012-SEPTEMBER
 BS              Accounts Payable                                  L                   C                             2                      0
                                                                                  Variance:                               0                     0

Trading         Name                            Status 2013-SEPTEMBER       2012-SEPTEMBER              Previously Reported     Line item Changes
Partner
 4700 General Services Administration                                 1                            0                      0                     0
 9999 Unidentified                                                    1                            0                      0                     0
                                  Total                              (2)                           0                      0                     0

Agency FS Status CP Line Description                               Account Type        NB               2013-SEPTEMBER         2012-SEPTEMBER
 BS              Accounts Payable, capital transfers               L                   C                           2,375                  2,914
                                                                                  Variance:                               0                     0

Trading       Name                              Status 2013-SEPTEMBER       2012-SEPTEMBER              Previously Reported     Line item Changes
Partner
 9100 Department of Education                                     2,375                       2,914                   2,914                     0
                                  Total                          (2,375)                      (2,914)                (2,914)                    0




                                                                           -2­
                                                             U.S.Department of the Treasury                               12-16-2013 11:14:28
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2013                              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            2013-SEPTEMBER        2012-SEPTEMBER
 BS              Advances from Others and Deferred Credits        L                   C                          29                    35
                                                                                 Variance:                           0                     0

Trading          Name                           Status 2013-SEPTEMBER      2012-SEPTEMBER           Previously Reported    Line item Changes
Partner
 1200 Department of Agriculture                                      0                         1                     1                     0
 1500 Department of Justice                                          3                         3                     3                     0
 2000 Department of the Treasury                                     0                         1                     1                     0
 2800 Social Security Administration                                 1                         1                     1                     0
 3600 DEPARTMENT OF VETERANS                                         1                         1                     1                     0
        AFFAIRS
 4900 National Science Foundation                                    1                        1                      1                     0
 6900 Department of Transportation                                   1                        0                      0                     0
 7000 Department of Homeland Security                                1                        1                      1                     0
 7500 Department of Health and Human                                20                       25                     25                     0
        Services
 8600 Department of Housing and Urban                                1                         1                     1                     0
        Development
 9500 Independent and Other Agencies                                 1                         0                     0                     0
 DE00 Department of Defense                                         (1)                        0                     0                     0
                                  Total                            (29)                      (35)                  (35)                    0




                                                                          -3­
                                                             U.S.Department of the Treasury                               12-16-2013 11:14:28
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2013                              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            2013-SEPTEMBER        2012-SEPTEMBER
 BS              Benefit Program Contributions Payable            L                   C                          10                    10
                                                                                 Variance:                           0                     0

Trading         Name                            Status 2013-SEPTEMBER      2012-SEPTEMBER           Previously Reported    Line item Changes
Partner
 1601 Department of Labor                                            4                         5                     5                     0
 2400 Office of Personnel Management                                 6                         5                     5                     0
                                  Total                            (10)                      (10)                  (10)                    0

Agency FS Status CP Line Description                              Account Type        NB            2013-SEPTEMBER        2012-SEPTEMBER
 BS              Interest Payable                                 L                   C                          9                     4
                                                                                 Variance:                           0                     0

Trading       Name                              Status 2013-SEPTEMBER      2012-SEPTEMBER           Previously Reported    Line item Changes
Partner
 2000 Department of the Treasury                                     9                         4                     4                     0
                                  Total                             (9)                       (4)                   (4)                    0




                                                                          -4­
                                                                 U.S.Department of the Treasury                                        12-16-2013 11:14:28
                                                                 Financial Management Service
                                                             Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                                   Fiscal Year: 2013                                 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               2013-SEPTEMBER         2012-SEPTEMBER
 BS              Liability to the General Fund for custodial and other     L                   C                           6,425                  3,982
                 non-entity assets
                                                                                          Variance:                               0                     0

Trading                                                  2013-SEPTEMBER             2012-SEPTEMBER              Previously Reported     Line item Changes
Partner        Name                             Status
 9900 Treasury General Fund                                              6,425                        3,982                   3,982                     0
                                  Total                                  (6,425)                      (3,982)                (3,982)                    0


Agency FS Status CP Line Description                                       Account Type        NB               2013-SEPTEMBER         2012-SEPTEMBER
 BS              Loans Payable                                             L                   C                          852,423                715,299
                                                                                          Variance:                               0                     0

Trading       Name                              Status 2013-SEPTEMBER               2012-SEPTEMBER              Previously Reported     Line item Changes
Partner
 2000 Department of the Treasury                                     852,423                     715,299                   715,299                      0
                                  Total                             (852,423)                    (715,299)                 (715,299)                    0




                                                                                   -5­
                                                                  U.S.Department of the Treasury                                   12-16-2013 11:14:28
                                                                  Financial Management Service
                                                              Governmentwide Financial Report System

                                                           GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                               Fiscal Year: 2013                                 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               2013-SEPTEMBER         2012-SEPTEMBER
 BS              Other Liabilities (without reciprocals)               L                   C                           1,498                  1,341
                                                                                      Variance:                               0                     0

Trading          Name                           Status 2013-SEPTEMBER           2012-SEPTEMBER              Previously Reported     Line item Changes
Partner
 1300 Department of Commerce                                             (1)                          (1)                    (1)                    0
 1400 Department of the Interior                                          0                          (14)                   (14)                    0
 1500 Department of Justice                                              (1)                           0                      0                     0
 2000 Department of the Treasury                                          3                           17                     17                     0
 4700 General Services Administration                                     0                          (22)                   (22)                    0
 4900 National Science Foundation                                         0                           (1)                    (1)                    0
 7000 Department of Homeland Security                                     0                           (1)                    (1)                    0
 7500 Department of Health and Human                                     15                            0                      0                     0
        Services
 9100 Department of Education                                         1,482                          56                      56                     0
 9900 Treasury General Fund                                               0                       1,307                   1,307                     0
                                  Total                              (1,498)                      (1,341)                (1,341)                    0




                                                                               -6­
                                                             U.S.Department of the Treasury                                      12-16-2013 11:14:28
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                     Fiscal Year: 2013                                 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               2013-SEPTEMBER         2012-SEPTEMBER
 NCS             Borrowing and Other Interest Revenue (Exchange)     ER                  C                           4,049                  5,272
                                                                                    Variance:                               0                     0

Trading       Name                              Status 2013-SEPTEMBER         2012-SEPTEMBER              Previously Reported     Line item Changes
Partner
 2000 Department of the Treasury                                   4,049                        5,272                   5,272                     0
                                  Total                            (4,049)                      (5,272)                (5,272)                    0


Agency FS Status CP Line Description                                 Account Type        NB               2013-SEPTEMBER         2012-SEPTEMBER
 NCS             Borrowings Gains                                    ER                  C                             0                      29
                                                                                    Variance:                               0                     0

Trading       Name                              Status 2013-SEPTEMBER         2012-SEPTEMBER              Previously Reported     Line item Changes
Partner
 9100 Department of Education                                           0                           29                     29                     0
                                  Total                                 0                          (29)                   (29)                    0




                                                                             -7­
                                                              U.S.Department of the Treasury                                12-16-2013 11:14:28
                                                              Financial Management Service
                                                          Governmentwide Financial Report System

                                                       GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                   Fiscal Year: 2013                               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             2013-SEPTEMBER        2012-SEPTEMBER
 NCS             Other Revenue (without reciprocals)               ER                  C                         (347)                  158
                                                                                  Variance:                            0                     0

Trading          Name                           Status 2013-SEPTEMBER       2012-SEPTEMBER            Previously Reported    Line item Changes
Partner
 1200 Department of Agriculture                                       1                          0                     0                     0
 2000 Department of the Treasury                                      1                          0                     0                     0
 3600 DEPARTMENT OF VETERANS                                          1                          0                     0                     0
        AFFAIRS
 4700 General Services Administration                                 0                          1                     1                     0
 4900 National Science Foundation                                     1                          0                     0                     0
 7000 Department of Homeland Security                                 1                          0                     0                     0
 7500 Department of Health and Human                                  7                         67                    67                     0
        Services
 8600 Department of Housing and Urban                                 0                          1                     1                     0
        Development
 9100 Department of Education                                      (354)                        89                    89                     0
 9900 Treasury General Fund                                          (7)                         0                     0                     0
 DE00 Department of Defense                                           2                          0                     0                     0
                                  Total                             347                       (158)                 (158)                    0




                                                                           -8­
                                                             U.S.Department of the Treasury                              12-16-2013 11:14:28
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2013                             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           2013-SEPTEMBER        2012-SEPTEMBER
 NCS             Benefit Program Costs                            GC                  D                        122                   126
                                                                                 Variance:                          0                     0

Trading         Name                            Status 2013-SEPTEMBER      2012-SEPTEMBER          Previously Reported    Line item Changes
Partner
 1601 Department of Labor                                           (1)                        2                    2                     0
 2400 Office of Personnel Management                                95                        96                   96                     0
 9900 Treasury General Fund                                         28                        28                   28                     0
                                  Total                            122                       126                  126                     0

Agency FS Status CP Line Description                              Account Type        NB           2013-SEPTEMBER        2012-SEPTEMBER
 NCS             Borrowing Losses                                 GC                  D                         0                     35
                                                                                 Variance:                          0                     0

Trading       Name                              Status 2013-SEPTEMBER      2012-SEPTEMBER          Previously Reported    Line item Changes
Partner
 9100 Department of Education                                        0                        35                   35                     0
                                  Total                              0                        35                   35                     0




                                                                          -9­
                                                             U.S.Department of the Treasury                                  12-16-2013 11:14:28
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2013                                 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              2013-SEPTEMBER        2012-SEPTEMBER
 NCS             Borrowing and Other Interest Expense             GC                   D                         28,452                26,643
                                                                                  Variance:                             0                     0

Trading       Name                              Status 2013-SEPTEMBER      2012-SEPTEMBER              Previously Reported    Line item Changes
Partner
 2000 Department of the Treasury                                28,452                        26,643                26,643                    0
                                  Total                         28,452                        26,643                26,643                    0


Agency FS Status CP Line Description                              Account Type         NB              2013-SEPTEMBER        2012-SEPTEMBER
 NCS             Buy/Sell Costs                                   GC                   D                           318                   360
                                                                                  Variance:                             0                     0

Trading         Name                            Status 2013-SEPTEMBER      2012-SEPTEMBER              Previously Reported    Line item Changes
Partner
 0300 LIBRARY OF CONGRESS                                            1                            0                     0                     0
 0400 GOVERNMENT PRINTING OFFICE                                     2                            5                     5                     0
 1300 Department of Commerce                                        22                           29                    29                     0
 1400 Department of the Interior                                   152                          182                   182                     0
 1500 Department of Justice                                          1                            0                     0                     0
 1601 Department of Labor                                           13                           12                    12                     0
 1900 Department of State                                            1                            0                     0                     0
 2000 Department of the Treasury                                     2                            1                     1                     0
 2400 Office of Personnel Management                                11                           18                    18                     0
 2800 Social Security Administration                                 2                            0                     0                     0
 4700 General Services Administration                               87                           96                    96                     0


                                                                         - 10 ­
                                                             U.S.Department of the Treasury                                12-16-2013 11:14:28
                                                             Financial Management Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2013                               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 2013-SEPTEMBER      2012-SEPTEMBER            Previously Reported    Line item Changes
Partner
 6900 Department of Transportation                                   6                          8                     8                     0
 7000 Department of Homeland Security                                9                          7                     7                     0
 7500 Department of Health and Human                                 1                          2                     2                     0
        Services
 8800 NATIONAL ARCHIVES AND                                          1                          0                     0                     0
        RECORDS ADM.
 9500 Independent and Other Agencies                                 3                          5                     5                     0
 9900 Treasury General Fund                                          0                        (10)                  (10)                    0
 DE00 Department of Defense                                          4                          5                     5                     0
                                  Total                            318                        360                   360                     0

Agency FS Status CP Line Description                              Account Type         NB            2013-SEPTEMBER        2012-SEPTEMBER
 NCS             Imputed Costs                                    GC                   D                          34                    34
                                                                                  Variance:                           0                     0

Trading         Name                            Status 2013-SEPTEMBER      2012-SEPTEMBER            Previously Reported    Line item Changes
Partner
 2400 Office of Personnel Management                                34                         34                    34                     0
                                  Total                             34                         34                    34                     0




                                                                         - 11 ­
                                                                U.S.Department of the Treasury                                      12-16-2013 11:14:28
                                                                Financial Management Service
                                                            Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                        Fiscal Year: 2013                                  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               2013-SEPTEMBER         2012-SEPTEMBER
 SCNP            Accrual for Non-entity Amounts to be Collected and CF                      D                           6,209                 (2,815)
                 Transferred to the General Fund
                                                                                       Variance:                               0                     0

Trading                                                  2013-SEPTEMBER         2012-SEPTEMBER               Previously Reported     Line item Changes
Partner        Name                             Status
 9900 Treasury General Fund                                          6,209                         (2,815)                (2,815)                    0
                                  Total                              6,209                         (2,815)                (2,815)                    0


Agency FS Status CP Line Description                                   Account Type         NB               2013-SEPTEMBER         2012-SEPTEMBER
 SCNP            Non-Entity Collections Transferred to the General     CF                   D                          48,681                 40,730
                 Fund
                                                                                       Variance:                               0                     0

Trading                                                  2013-SEPTEMBER         2012-SEPTEMBER               Previously Reported     Line item Changes
Partner        Name                             Status
 9900 Treasury General Fund                                          48,681                        40,730                 40,730                     0
                                  Total                              48,681                        40,730                 40,730                     0




                                                                              - 12 ­
                                                                U.S.Department of the Treasury                                   12-16-2013 11:14:28
                                                                Financial Management Service
                                                            Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                        Fiscal Year: 2013                                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            2013-SEPTEMBER        2012-SEPTEMBER
 SCNP            Nonexpenditure Transfers-out of Financing Sources     CF                    D                       (3,857)                  29
                 - Capital Transfers
                                                                                        Variance:                           0                     0

Trading                                                  2013-SEPTEMBER          2012-SEPTEMBER            Previously Reported    Line item Changes
Partner       Name                              Status
 9100 Department of Education                                        (3,857)                        29                     51                   (22)
                                  Total                              (3,857)                        29                     51                   (22)


Agency FS Status CP Line Description                                   Account Type          NB            2013-SEPTEMBER        2012-SEPTEMBER
 SCNP            Imputed Financing Source                              F                     C                          34                    34
                                                                                        Variance:                           0                     0

Trading         Name                            Status 2013-SEPTEMBER            2012-SEPTEMBER            Previously Reported    Line item Changes
Partner
 2400 Office of Personnel Management                                     34                         34                     34                     0
                                  Total                                 (34)                        (34)                  (34)                    0




                                                                               - 13 ­
                                                                U.S.Department of the Treasury                                      12-16-2013 11:14:28
                                                                Financial Management Service
                                                            Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                         Fiscal Year: 2013                                  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              2013-SEPTEMBER        2012-SEPTEMBER
 SCNP	           Nonexpenditure Transfers-In of Financing Sources -     F                     C                         (3,880)                 (22)
                 Capital Transfers
                                                                                         Variance:	                            0                     0

Trading	                                                 2013-SEPTEMBER           2012-SEPTEMBER              Previously Reported    Line item Changes
Partner       Name 	                            Status
 9100 Department of Education                                         (3,880)                          (22)                    0                   (22)
                                  Total                               3,880                             22                     0                   (22)


Agency FS Status CP Line Description                                    Account Type          NB              2013-SEPTEMBER        2012-SEPTEMBER
 SCNP            Other budgetary financing sources                      F                     C                          3,859                  393
                                                                                         Variance:                             0                     0

Trading        Name                             Status 2013-SEPTEMBER             2012-SEPTEMBER              Previously Reported    Line item Changes
Partner
 9900 Treasury General Fund                                           3,859                           393                    393                     0
                                  Total                               (3,859)                         (393)                 (393)                    0




                                                                                - 14 ­
                                                                                                                                                                                    12/16/2013 11:03:38

                                                                                     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: 2013         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        2013 - SEPTEMBER             2012 - 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
                                                                                                                                                                                                    12/16/2013 11:03:38

                                                                                     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: 2013                    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 or transactions that occurred after the date of the Balance      The changes listed had no effect on total assets, liabilities, net position, or net cost of
                   Sheet but before the issuance of agency¿s audited financial statements that have a material      operations.
                   effect on the financial statements and, therefore, require adjustments or disclosure in the
                   statements.                                                                                      As required by Treasury and Departmental guidance, excess collections from pre-1992
                                                                                                                    FFEL loan guarantees, the College Housing Loan program, and the Higher Education
                                                                                                                    Facilities Loan program, which are payable to Treasury, are to be reported as non­
                                                                                                                    current liabilities not covered by budgetary resources. This reclassification has resulted
                                                                                                                    in a $3 billion reduction of the FY 2012 reported balance of Intragovernmental Accounts
                                                                                                                    Payable and a corresponding increase in the FY 2012 reported Other Liabilities
                                                                                                                    balance.

                                                                                                                    The presentation of the FY 2012 Liability for Loan Guarantees is in the liability section
                                                                                                                    of the Balance Sheet, while the presentation of the FY 2013 liability is in the Credit
                                                                                                                    Program Receivables Balance Sheet line item. The Liability for Loan Guarantees
                                                                                                                    schedule in the notes presents both years.
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 agency's financial statements, and, therefore, are represented in the GFRS data.
6                  List all of the agency's components for which balances and activities are combined into the      The components whose balances and activities are combined into the financial
                   agency's financial                                                                               statements and presented in the GFRS data are Federal Student Aid (FSA), Office of
                   statements, and, therefore, are represented in the GFRS data.                                    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 Innovation and Improvement (OII),
                                                                                                                    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.
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.




                                                                                                            -2­
                                                                                                                                                                       12/16/2013 11:03:38

                                                                                   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: 2013         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
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
                                                                                                                                                                                              12/16/2013 11:03:38

                                                                                    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: 2013                Period: SEPTEMBER
   Entity: 9100          Department of Education                                                                                       Agency Notes:        Note 5

  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     2013 - SEPTEMBER         2012 - SEPTEMBER
                                                                                   Type
Cash and Other Monetary Assets                                              D        A                        1,482                1,307
                                                                                Variance:                         0                    0           Rounding Method: Millions             Decimal: Zero
Line Status Line Description             2013 - SEPTEMBER             2012 - SEPTEMBER               Previously Rptd           Line Item Changes
  3           Other cash - not
              restricted
  4           Other cash - restricted                         1,482                      1,307                         1,307                            0
  7           Foreign currency
              Total                                           1,482                       1,307                        1,307                            0
Threshold

 Line Description                                                Question                                                           Answer
 Line Item Notes - Other cash - restricted (2013 ­               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
                                                                 the current fiscal year and prior fiscal year. (Unaudited)




                                                                                                        -4­
                                                                                                                                                                                                         12/16/2013 11:03:38

                                                                                           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: 2013                 Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                               Agency Notes:      Note 5

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

Tab: Other Notes Info.

       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        2013 - SEPTEMBER                2012 - SEPTEMBER
 1               Total Cash Held       Credit
                 Outside Treasury
                 (reported to Treas
                 central account
                 thru the statement
                 of Transac/ Stat of
                 Accountbilit
 2                                     Credit
 3                                     Credit
 4                                     Credit
 5                                     Credit
 6                                     Credit
 7          Total cash reported         N/A
            in Note 2.
Tab: Text Data
 Line                  Question                                                                                                Answer
 1                     Describe the nature of the amount in the line item "other cash - not restricted."
 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 Fiscal Service (BFS)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          Cash and Other Monetary Assets consist of guaranty agency reserves that represent
                       the significant accounting policies pertaining to this note.                                            the federal government's interest in the net assets of state and nonprofit FFEL Program
                                                                                                                               guaranty agencies. Guaranty agency reserves include initial federal start-up funds,
                                                                                                                               receipts of federal reinsurance payments, insurance premiums, guaranty agency share
                                                                                                                               of collections on defaulted loans, investment income, administrative cost allowances,
                                                                                                                               and other assets.



                                                                                                                   -5­
                                                                                                                                                                                                      12/16/2013 11:03:38

                                                                                       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: 2013                 Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                               Agency Notes:        Note 4

  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     2013 - SEPTEMBER         2012 - SEPTEMBER
                                                                                      Type
Accounts and Taxes Receivable                                                 D         A                          121                      92
                                                                                   Variance:                         0                       0          Rounding Method: Millions                Decimal: Zero
Line Status Line Description            2013 - SEPTEMBER               2012 - SEPTEMBER                   Previously Rptd           Line Item Changes
 1            Accounts receivable,                              306                            317                           317                               0
              gross
 2            Related interest
              receivable - accounts
              receivable
 3            Penalties, fines, and
              administrative fees
              receivable
 4            Less: allowance for                              -185                           -225                          -225                               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                                              121                             92                           92                               0

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.




                                                                                                             -6­
                                                                                                                                                                                              12/16/2013 11:03:38

                                                                                    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: 2013                 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     2013 - SEPTEMBER       2012 - SEPTEMBER
                                                                                   Type
Loans Receivable and mortgage backed securities                             D        A                   826,684               673,488
                                                                                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                                           outstanding             loans outstanding
 1           Federal Direct Student                     613,860                       -65,247                      679,107                   493,959                      -32,076                            526,035
             Loans
 4           Federal Family                                143,598                      -2,133                     145,731                    147,003                            898                         146,105
             Education Loan
 17          Facilities Loan                                   1,221                        197                      1,024                      1,068                            415                             653
             Program
 18          Perkins Loan Program                               523                         154                        369                        495                            144                             351
 19          Other Loans                                        559                         106                        453                        437                             93                             344
             Receivable
 20
 21
 22          All other loans
             receivable
             Total                                         759,761                     -66,923                     826,684                    642,962                        -30,526                         673,488
Threshold

 Line Description                                                Question                                                          Answer
 Line Item Notes - Federal Direct Student Loans (CY Face         Please provide explanations for any amounts that have             The increase is due to new loan originations and consolidations, net of
 Value of loans 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 - Facilities Loan Program (CY Face Value of     Please provide explanations for any amounts that have             Increase is primarily due to new HBCU loans disbursed.
 loans outstanding)                                              changed by 10% or more and or greater than 500,000 between
                                                                 the current fiscal year and prior fiscal year. (Unaudited)
 Line Item Notes - Facilities Loan Program (CY Long-term         Please provide explanations for any amounts that have             Decrease is primarily due to downward subsidy re-estimates.
 cost of loans outstanding)                                      changed by 10% or more and or greater than 500,000 between
                                                                 the current fiscal year and prior fiscal year. (Unaudited)
 Line Item Notes - Other Loans Receivable (CY Face Value of      Please provide explanations for any amounts that have             The increase is due to TEACH loans disbursed during FY 2013, net 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 - Other Loans Receivable (CY Long-term          Please provide explanations for any amounts that have             The increase is primarily due to the effect of subsidy transfers and upward
 cost of loans outstanding)                                      changed by 10% or more and or greater than 500,000 between        subsidy re-estimates executed during FY 2013.
                                                                 the current fiscal year and prior fiscal year. (Unaudited)




                                                                                                        -7­
                                                                                                                                                                                                    12/16/2013 11:03:38

                                                                                       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: 2013               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: Subsidy Expense/(Income)                                                                 Line Attributes: Dollars
                                                                                                                                      Rounding Method: Millions                         Decimal: Zero
Line Status Line Description            NB       2013 - SEPTEMBER             2012 - SEPTEMBER                    Previously Rptd      Line Item Changes
 1             Federal Direct          Debit                     -39,557                     -10,720                        -10,720                          0
               Students Loans
 4             Federal Family          Debit                        -921                      -2,799                         -2,799                          0
               Education Loan
17                                     Debit
18                                     Debit
19                                     Debit
20                                     Debit
21                                     Debit
22             All other loans         Debit                           3                           35                            35                          0
               receivable
 23            Total                   N/A                       -40,475                     -13,484                        -13,484                          0
Threshold
 Line Description                                                  Question                                                              Answer
 Other Notes Info - All other loans receivable (2013 ­             Please provide explanations for any amounts that have                 The change is largely due to a net downward re-estimate.
 SEPTEMBER)                                                        changed by 10% or more and or greater than 500,000
                                                                   between the current fiscal year and prior fiscal year.
                                                                   (Unaudited)
       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       2013 - SEPTEMBER             2012 - SEPTEMBER                    Previously Rptd      Line Item Changes
 1             Balances for            Debit
               property held Pre­
               1992
 2             Balances for            Debit
               property held Post­
               1991




                                                                                                            -8­
                                                                                                                                                                                                 12/16/2013 11:03:38

                                                                                   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: 2013                   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: Text Data
Line             Question                                                                                         Answer
1                Provide a broad description of foreclosed property.
2                Provide any other relevant information pertaining to this note. At a minimum, describe briefly   The Department administers the William D. Ford Federal Direct Student Loan (Direct
                 the significant accounting policies pertaining to this note.                                     Loan) Program, to help students finance the costs of higher education. The Direct Loan
                                                                                                                  Program, authorized by the Student Loan Reform Act of 1993, enables the Department
                                                                                                                  to make loans directly to eligible undergraduate and graduate students and their
                                                                                                                  parents through participating schools. Under this program, loans are made to
                                                                                                                  individuals who meet statutorily set eligibility criteria and attend eligible institutions of
                                                                                                                  higher education-public or private two- and four-year institutions, graduate schools,
                                                                                                                  and vocational training schools.

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

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

                                                                                                                  The Teacher Education Assistance for College and Higher Education Grant (TEACH)
                                                                                                                  Program was implemented beginning July 1, 2008. This program, added to the HEA by
                                                                                                                  the College Cost Reduction and Access Act (CCRAA), awards annual grants to
                                                                                                                  students who agree to teach in a high-need subject area in a public or private
                                                                                                                  elementary or secondary school that serves low-income students.

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


                                                                                                         -9­
                                                                                                                                                                                       12/16/2013 11:03:38

                                                                             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: 2013                 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: Text Data
Line             Question                                                                                     Answer
                                                                                                              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).




                                                                                               - 10 ­
                                                                                                                                                                                    12/16/2013 11:03:38

                                                                                 U.S. Department of the Treasury

                                                                                  Financial Management Service

                                                                             Governmentwide Financial Report System

                                                                                     GF006 - FR Notes Report


      Note: 04B         Loan Guarantees                                                                                             Fiscal Year: 2013               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     2013 - SEPTEMBER       2012 - SEPTEMBER
                                                                                Type
Loan Guarantee Liabilities                                               C        L                          0                  1,037
                                                                             Variance:                       0                      0           Rounding Method: Millions       Decimal: Zero
Line Status Line Description          2013 - SEPTEMBER             2012 - SEPTEMBER               Previously Rptd           Line Item Changes
 1           Federal Family
             Education Loans
 13          Federal Family                                    0                      1,037                         1,037                            0
             Education Loans
 14
 15
 16
 17
 18          All other loan
             guarantee liabilities
             Total                                             0                       1,037                        1,037                            0




                                                                                                    - 11 ­
                                                                                                                                                                                    12/16/2013 11:03:38

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

     Note: 04B           Loan Guarantees                                                                                              Fiscal Year: 2013            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: 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                     263,984                    258,434                     -7,832                    290,668               284,552                  -11,582
               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                     263,984                    258,434                     -7,832                    290,668               284,552                  -11,582




                                                                                                       - 12 ­
                                                                                                                                                                                                  12/16/2013 11:03:38

                                                                                   U.S. Department of the Treasury

                                                                                    Financial Management Service

                                                                               Governmentwide Financial Report System
                                                                                       GF006 - FR Notes Report

   Note: 04B         Loan Guarantees                                                                                                 Fiscal Year: 2013                   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: 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.

                                                                                                                  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
                                                                                                                  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 event's occurrence
                                                                                                                  and the magnitude of its probability. The Department's 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 Department's unique loan programs.

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



                                                                                                         - 13 ­
                                                                                                                                                                                          12/16/2013 11:03:38

                                                                             U.S. Department of the Treasury

                                                                              Financial Management Service

                                                                         Governmentwide Financial Report System
                                                                                 GF006 - FR Notes Report

   Note: 04B        Loan Guarantees                                                                                              Fiscal Year: 2013                 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: Text Data
Line             Question                                                                                      Answer
                                                                                                               direct loan was obligated or a loan was guaranteed, regardless of the timing of
                                                                                                               disbursements. Risk categories include two-year colleges, freshmen and sophomores
                                                                                                               at four-year colleges, juniors and seniors at four-year colleges, graduate schools and
                                                                                                               proprietary (for-profit) schools.




                                                                                                - 14 ­
                                                                                                                                                                                12/16/2013 11:03:38

                                                                                U.S. Department of the Treasury

                                                                                 Financial Management Service

                                                                            Governmentwide Financial Report System

                                                                                    GF006 - FR Notes Report


     Note: 05          Inventories and Related Property                                                                         Fiscal Year: 2013               Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                  Agency Notes:      NA

  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     2013 - SEPTEMBER       2012 - SEPTEMBER
                                                                               Type
Inventory and Related Property                                          D        A                          0                  0
                                                                            Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description          2013 - SEPTEMBER           2012 - SEPTEMBER                Previously Rptd        Line Item Changes
 1          Gross Inventory ­
            balance beginning of
            year
 2          Prior-period
            adjustment (not
            restated)
 3          Capitalized
            acquisitions from the
            public
 4          Capitalized
            acquisitions from
            Government agencies
 5          Inventory sold or used
 6          Total allowance for
            inventories and related
            property
            Total




                                                                                                   - 15 ­
                                                                                                                                                                                12/16/2013 11:03:38

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

     Note: 05             Inventories and Related Property                                                                              Fiscal Year: 2013      Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                       Agency Notes:    NA

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

Tab: Other Notes Info.

       Section: A               Section Name: Inventory Yearend Balances by Category Type                No Data Flag: YES          Line Attributes: Dollars
                                                                                                                                  Rounding Method: Millions             Decimal: Zero
Line Status Line Description             NB        2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd    Line Item Changes
 1              Inventory               Debit
                purchased for sale
 2              Inventory held in       Debit
                reserve for future
                sale to the public
 3              Inventory and           Debit
                operating materials
                and supplies held
                for repair
 4              Inventory - excess,     Debit
                obsolete, and
                unserviceable
 5              Operating materials     Debit
                and supplies held
                for use
 6              Operating materials     Debit
                and supplies held
                in reserve for future
                use
 7              Operating materials     Debit
                and supplies
                excess, obsolete,
                and unserviceable
 8              Stockpile materials     Debit
 9              Stockpile materials     Debit
                held for sale
10              Forfeited property      Debit
11              Other related           Debit
                property
12              Total allowance for     Credit
                inventories and
                related property
13              Total inventories        N/A
                and related
                property, net




                                                                                                           - 16 ­
                                                                                                                                                                                12/16/2013 11:03:38

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

     Note: 05            Inventories and Related Property                                                                           Fiscal Year: 2013         Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                    Agency Notes:    NA

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


       Section: B              Section Name: Capitalized Acquitions From Government Agencies         No Data Flag: YES          Line Attributes: Dollars
                                             by Trading Patrner                                                               Rounding Method: Millions                Decimal: Zero
Line Status Line Description          NB       2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd    Line Item Changes
 1              General Services     Debit
                Administration
 2              Department of        Debit
                Defense
 3              Department of        Debit
                Justice
 4              National             Debit
                Aeronautics and
                Space
                Administration
 5              All other            Debit
                departments
 6              Total Capitalized     N/A
                Assets from
                Federal Agencies
       Section: C              Section Name: Other Information - Dollar Value                        No Data Flag: YES          Line Attributes: Dollars
                                                                                                                              Rounding Method: User-Defined            Decimal: User-Defined
Line Status Line Description          NB       2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd    Line Item Changes
 1              Seized property      Debit
 2              Forfeited property   Debit
 3              Goods held under     Debit
                price support and
                stabilization
                programs




                                                                                                       - 17 ­
                                                                                                                                                                              12/16/2013 11:03:38

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

     Note: 05            Inventories and Related Property                                                                               Fiscal Year: 2013     Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                       Agency Notes:    NA

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


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


Line Status Line Description          NB      2013 - SEPTEMBER                2012 - SEPTEMBER                   Previously Rptd    Line Item Changes
 1              Seized property      N/A
 2              Forfeited property   N/A
 3              Goods held under     N/A
                price support and
                stabilization
                programs



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




                                                                                                            - 18 ­
                                                                                                                                                                                   12/16/2013 11:03:38

                                                                                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: 2013                Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                  Agency Notes:        Note 7

  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     2013 - SEPTEMBER       2012 - SEPTEMBER
                                                                               Type
Property, Plant and Equipment                                           D        A                          2                  7
                                                                            Variance:                       0                  0             Rounding Method: Millions         Decimal: Zero
Line Status Line Description                     CY PP&E                      CY Accum.             CY Net PP&E                    PY PP&E                       PY Accum.           PY Net PP&E
                                                                   Depr./Amortization                                                                 Depr./Amortization
 1          PP&E - balance                                  179                       172                              7                      179                        163                       16
            beginning of year
 2          Prior-period
            adjustments (not
            restated)
 3          Capitalized                                       1                                                        1                         0                                                  0
            acquisitions from the
            public
 4          Capitalized
            acquisitions from
            Government agencies
 5          Deletions from the
            Balance Sheet
 6          Revaluations
 7          Stewardship
            reclassifications
 8          Depreciation/amortizati                                                       6                           -6                                                  9                        -9
            on
            Total                                           180                         178                            2                       179                       172                        7




                                                                                                   - 19 ­
                                                                                                                                                                                          12/16/2013 11:03:38

                                                                                       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: 2013             Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                         Agency Notes:        Note 7

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

Tab: Other Notes Info.

       Section: A                Section Name: Cost of PP&E for each category                                                          Line Attributes: Dollars
                                                                                                                                     Rounding Method: Millions                    Decimal: Zero
Line Status Line Description             NB       2013 - SEPTEMBER             2012 - 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                         177                        176                         176                            0
                software
 6              Assets under            Debit
                capital lease
 7              Leasehold               Debit
                improvements
 8              Other property,         Debit
                plant and
                equipment
 9              Total property,         N/A                           180                        179                         179                            0
                plant and
                equipment




                                                                                                          - 20 ­
                                                                                                                                                                                           12/16/2013 11:03:38

                                                                                        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: 2013             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                           Agency Notes:        Note 7

  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        2013 - SEPTEMBER             2012 - 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                         175                        169                          169                           0
                software
 4              Assets under            Credit
                capital lease
 5              Leasehold               Credit
                improvements
 6              Other property,         Credit
                plant, and
                equipment
 7              Total accumulated        N/A                          -178                       -172                         -172                           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        2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd        Line Item Changes
 1              General Services        Debit
                Administration
 2              Department of           Debit
                Defense
 3              Department of the       Debit
                Interior
 4              Department of           Debit
                Justice
 5              National                Debit
                Aeronautics and
                Space
                Administration



                                                                                                           - 21 ­
                                                                                                                                                                                                    12/16/2013 11:03:38

                                                                                      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: 2013                 Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                           Agency Notes:      Note 7

  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        2013 - SEPTEMBER             2012 - 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        2013 - SEPTEMBER             2012 - 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 fiscal years' depreciation methods and capitalization thresholds. In addition,             $50,000 or more that have an estimated useful life of two years or more. Additionally,
                     describe 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 of at least two years. Property and
                                                                                                                          equipment are depreciated over their estimated useful lives using the straight-line
                                                                                                                          method of depreciation. Internal Use Software meeting the above cost and useful life
                                                                                                                          criteria is also capitalized. Internal Use Software is either purchased off the shelf,
                                                                                                                          internally developed, or contractor developed solely to meet the Department's needs.




                                                                                                           - 22 ­
                                                                                                                                                                                   12/16/2013 11:03:38

                                                                                   U.S. Department of the Treasury

                                                                                    Financial Management Service

                                                                               Governmentwide Financial Report System

                                                                                       GF006 - FR Notes Report


     Note: 07             Debt and Equity Securities                                                                               Fiscal Year: 2013               Period: SEPTEMBER
   Entity: 9100           Department of Education                                                                                  Agency Notes:      NA

  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     2013 - SEPTEMBER       2012 - SEPTEMBER
                                                                                  Type
Debt and Equity Securities                                                 D        A                          0                  0
                                                                               Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description              2013 - SEPTEMBER          2012 - SEPTEMBER                Previously Rptd        Line Item Changes
 1              Fixed/Debt Securities
                (FASB ASC 320-10­
                50-1 and 320-10-50­
                9): Non-U.S.
                Government Securities
 2              Fixed/Debt Securities
                (FASB ASC 320-10­
                50-1 and 320-10-50­
                9): Commercial
                Securities
 3              Fixed/Debt Securities
                (FASB ASC 320-10­
                50-1 and 320-10-50­
                9): Mortgage/asset
                backed Securities
 4              Fixed/Debt Securities
                (FASB ASC 320-10­
                50-1 and 320-10-50­
                9):Corporate and other
                bonds
 5              All other Fixed
                Income/Debt Securities
                (FASB ASC 320-10­
                50-1 and 320-10-50­
                9) All:Other fixed/debt
                securities
 6              Equity Securities
                (FASB ASC 320-10­
                50-1 and 320-10-50­
                9): Common Stocks
 7              Equity Securities
                (FASB ASC 320-10­
                50-1 and 320-10-50­
                9): Unit Trusts
 8              Equity Securities
                (FASB ASC 320-10­
                50-1 and 320-10-50­
                9): All Other Equity



                                                                                                      - 23 ­
                                                                                                                                                                      12/16/2013 11:03:38

                                                                                  U.S. Department of the Treasury

                                                                                   Financial Management Service

                                                                              Governmentwide Financial Report System
                                                                                      GF006 - FR Notes Report

     Note: 07            Debt and Equity Securities                                                                             Fiscal Year: 2013     Period: SEPTEMBER
   Entity: 9100          Department of Education                                                                                Agency Notes:    NA

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


Line Status Line Description            2013 - SEPTEMBER           2012 - SEPTEMBER                Previously Rptd      Line Item Changes
            Securities
 9          Other
            Total




                                                                                                     - 24 ­
                                                                                                                                                                                   12/16/2013 11:03:38

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

     Note: 07             Debt and Equity Securities                                                                                Fiscal Year: 2013             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    NA

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

Tab: Other Notes Info.

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




                                                                                                        - 25 ­
                                                                                                                                                                                     12/16/2013 11:03:38

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

     Note: 07             Debt and Equity Securities                                                                                Fiscal Year: 2013             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    NA

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


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




                                                                                                        - 26 ­
                                                                                                                                                                                     12/16/2013 11:03:38

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

     Note: 07             Debt and Equity Securities                                                                                Fiscal Year: 2013             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    NA

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


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




                                                                                                        - 27 ­
                                                                                                                                                                              12/16/2013 11:03:38

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

     Note: 07             Debt and Equity Securities                                                                                  Fiscal Year: 2013      Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                     Agency Notes:    NA

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


       Section: D              Section Name: Other Information                                         No Data Flag: YES          Line Attributes: Dollars
                                                                                                                                Rounding Method: Millions             Decimal: Zero
Line Status Line Description           NB        2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd      Line Item Change
 1              Proceeds from         Debit
                sales of available-
                for-sale securities
                (FASB ASC 320­
                10-50-9)
 2              Gross realized        Debit
                gains (included in
                earnings) from
                sales of available-
                for-sale securities
                (FASB ASC 320­
                10-50-9)
 3              Gross realized        Credit
                losses (included in
                earnings) from
                sales of available-
                for-sale securities
                (FASB ASC 320­
                10-50-9)
 4              Gross gains           Debit
                included in
                earnings from s
                from transfers of
                securities from
                available-for-sale
                into trading
 5              Gross losses          Credit
                included in
                earnings from s
                from transfers of
                securities from
                available-for-sale
                into trading
 6              Net unrealized        Debit
                holding gain on
                available-for-sale
                securities included
                in accumulated
                other
                comprehensive
                income



                                                                                                         - 28 ­
                                                                                                                                                                                12/16/2013 11:03:38

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

     Note: 07             Debt and Equity Securities                                                                                    Fiscal Year: 2013      Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                      Agency Notes:    NA

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


       Section: D               Section Name: Other Information                                          No Data Flag: YES          Line Attributes: Dollars
                                                                                                                                  Rounding Method: Millions             Decimal: Zero
Line Status Line Description             NB        2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd      Line Item Change
 7              Net unrealized          Credit
                holding loss on
                available-for-sale
                securities included
                in accumulated
                other
                comprehensive
                income
 8              Amount of               Debit
                gains/losses
                reclassified out of
                accumulated other
                comprehensive
                income into
                earnings for the
                period
 9              Portion of trading      Debit
                gains/losses that
                relates to trading
                securities still held
                at the reporting
                date
10              Net carrying            Debit
                amount of
                sold/transferred
                held-to-maturity
                securities (FASB
                ASC 320-10-50­
                10)
11              Net gain/loss in        Debit
                accum. other
                comp. income for
                any derivative that
                hedged the
                forecasted
                acquisition of HTM
                security




                                                                                                           - 29 ­
                                                                                                                                                                       12/16/2013 11:03:38

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

    Note: 07          Debt and Equity Securities                                                                                 Fiscal Year: 2013     Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                   Agency Notes:    NA

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

Tab: Text Data                        No Data Flag: YES
Line               Question                                                                                          Answer
1                  Provide a description of the amounts reported on the "Line Item Notes" tab for lines 5, 8 and
                   9.
2                  Provide a description of the amounts reported on the "Other Notes Infor" tab for lines 5, 8
                   and 9 in Sections A through C.
3                  Provide the basis on which the cost of a security sold or the amount reclassified out of
                   accumulated other comprehensive income into earnings was determined (FASB ASC 320­
                   10-50-9).
4                  Provide the circumstances leading to the decision to sell or transfer the security for held-to­
                   maturity securities (FASB ASC 320-10-50-10).
5                  Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                   the significant accounting policies pertaining to this note.




                                                                                                           - 30 ­
                                                                                                                                                                                                       12/16/2013 11:03:38

                                                                                        U.S. Department of the Treasury

                                                                                         Financial Management Service

                                                                                    Governmentwide Financial Report System

                                                                                            GF006 - FR Notes Report


     Note: 08           Other Assets                                                                                                            Fiscal Year: 2013                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      2013 - SEPTEMBER           2012 - SEPTEMBER
                                                                                       Type
Other Assets                                                                   D         A                              13                    21
                                                                                    Variance:                            0                     0          Rounding Method: Millions               Decimal: Zero
Line Status Line Description             2013 - SEPTEMBER               2012 - SEPTEMBER                   Previously Rptd            Line Item Changes
 1             Advances and                                         6                              9                             9                               0
               prepayments
 4             Regulatory assets
 5             Derivative assets
 6             Other assets                                         7                             12                            12                               0
               Total                                               13                             21                            21                               0
Threshold

 Line Description                                                  Question                                                                  Answer
 Line Item Notes - Advances and prepayments (2013 ­                Please provide explanations for any amounts that have                     These balances primarily represent estimated grant advances for ARRA and
 SEPTEMBER)                                                        changed by 10% or more and or greater than 500,000 between                Education Jobs Fund appropriations. The decrease in the estimate from FY
                                                                   the current fiscal year and prior fiscal year. (Unaudited)                2012 to FY 2013 is related to the decrease in the available balance of ARRA
                                                                                                                                             and Education Jobs Fund appropriations.
 Line Item Notes - Advances and prepayments (2012 ­                Please provide explanations for any amounts that have                     These balances primarily represent estimated grant advances for ARRA and
 SEPTEMBER)                                                        changed by 10% or more and or greater than 500,000 between                Education Jobs Fund appropriations. The decrease in the estimate from FY
                                                                   the current fiscal year and prior fiscal year. (Unaudited)                2012 to FY 2013 is related to the decrease in the available balance of ARRA
                                                                                                                                             and Education Jobs Fund appropriations.
 Line Item Notes - Other assets (2013 - SEPTEMBER)                 Please provide explanations for any amounts that have                     The decrease is due to a 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.
                                                                   the current fiscal year and prior fiscal year. (Unaudited)
 Line Item Notes - Other assets (2012 - SEPTEMBER)                 Please provide explanations for any amounts that have                     The decrease is due to a 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.
                                                                   the current fiscal year and prior fiscal year. (Unaudited)
Tab: Text Data
 Line                Question                                                                                                 Answer
 1                   Provide a description of advances and prepayments on the "Line Item Notes" tab for line 1.               Advances and Prepayments consist of payments made to grant recipients in advance of
                                                                                                                              their expenditures and in-process invoices for interest benefits and special allowances
                                                                                                                              for the FFEL Program.
 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 the amounts that are designated as either non-hedging or hedging instruments.
 4                   Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                     the significant accounting policies pertaining to this note.




                                                                                                              - 31 ­
                                                                                                                                                                                    12/16/2013 11:03:38

                                                                                 U.S. Department of the Treasury

                                                                                  Financial Management Service

                                                                             Governmentwide Financial Report System
                                                                                     GF006 - FR Notes Report

     Note: 09          Accounts Payable                                                                                             Fiscal Year: 2013               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     2013 - SEPTEMBER       2012 - SEPTEMBER
                                                                                Type
Accounts Payable                                                         C        L                      4,127                  4,098
                                                                             Variance:                       0                      0           Rounding Method: Millions       Decimal: Zero
Line Status Line Description         2013 - SEPTEMBER              2012 - SEPTEMBER               Previously Rptd           Line Item Changes
 1          Accounts Payable                               4,127                      4,098                         4,098                            0
            Total                                          4,127                      4,098                         4,098                            0




                                                                                                    - 32 ­
                                                                                                                                                                                     12/16/2013 11:03:38

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

     Note: 09            Accounts Payable                                                                                                 Fiscal Year: 2013         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        2013 - SEPTEMBER             2012 - 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.




                                                                                                             - 33 ­
                                                                                                                                                                                   12/16/2013 11:03:38

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

     Note: 10B          Treasury securities held by the Government trust, revolving, and special funds                             Fiscal Year: 2013            Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                    Agency Notes:    NA

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

Tab: Other Notes Info.

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

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



                                                                                                           - 34 ­
                                                                                                                                                                                12/16/2013 11:03:38

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

     Note: 10B       Treasury securities held by the Government trust, revolving, and special funds                             Fiscal Year: 2013            Period: SEPTEMBER
  Entity: 9100       Department of Education                                                                                    Agency Notes:    NA

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


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

Line Status Line Description      NB            PY Unamortized             PY Net Investment
                                                   premium D
 1                                N/A
 2                                N/A
 3                                N/A
 4                                N/A
 5                                N/A
 6                                N/A
 7                                N/A
 8                                N/A
 9                                N/A
10                                N/A
11                                N/A
12                                N/A
13                                N/A
14                                N/A
15                                N/A
16           Total                N/A




                                                                                                        - 35 ­
                                                                                                                                                                                  12/16/2013 11:03:38

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

     Note: 10B         Treasury securities held by the Government trust, revolving, and special funds                             Fiscal Year: 2013            Period: SEPTEMBER
     Entity: 9100      Department of Education                                                                                    Agency Notes:    NA

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


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




                                                                                                          - 36 ­
                                                                                                                                                                                12/16/2013 11:03:38

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

   Note: 10B           Treasury securities held by the Government trust, revolving, and special funds                                   Fiscal Year: 2013      Period: SEPTEMBER
  Entity: 9100          Department of Education                                                                                         Agency Notes:    NA

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


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




                                                                                                            - 37 ­
                                                                                                                                                                                  12/16/2013 11:03:38

                                                                                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: 2013               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    2013 - SEPTEMBER        2012 - SEPTEMBER
                                                                               Type
Federal Employee and Veteran Benefits Payable                          C         L                         15                   16
                                                                            Variance:                       0                    0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description         2013 - SEPTEMBER             2012 - 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                                   15                          16                           16                            0
 6          Liability for other
            retirement and
            postemployment
            benefits
            Total                                            15                         16                           16                            0




                                                                                                  - 38 ­
                                                                                                                                                                                    12/16/2013 11:03:38

                                                                                        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: 2013          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        2013 - SEPTEMBER             2012 - 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              Normal Costs            Credit
                (SFFAS No. 5, par.
                72)
 5              Interest on pension     Credit
                liability during the
                period
 6              Prior (and past)        Credit
                service cost (from
                the initiation of a
                new plan)
 7              Actuarial               Credit
                (gains)/losses (from
                experience)
                (SFFAS No. 33,
                par. 22)
 8              Actuarial               Credit
                (gains)/losses (from
                assumption
                changes) (SFFAS
                No. 33, par. 22)
 9              Other                   Credit
10              Total pension            N/A
                expense (SFFAS
                No. 5, par.72)
11              Less Benefits Paid      Debit



                                                                                                           - 39 ­
                                                                                                                                                                                    12/16/2013 11:03:38

                                                                                        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: 2013          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        2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd    Line Item Changes
12              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 the Current FY and Prior FY Valuation
Line Status Line Description             NB        2013 - SEPTEMBER             2012 - 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        2013 - SEPTEMBER             2012 - 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



                                                                                                           - 40 ­
                                                                                                                                                                                    12/16/2013 11:03:38

                                                                                        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: 2013          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        2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd    Line Item Changes
                a new plan) during
                the period
 4              Normal costs            Credit
 5              Interest on liability   Credit
 6              Actuarial            Credit
                (gains)/losses (from
                experience)
 7              Actuarial            Credit
                (gains)/losses (from
                assumption
                changes)
 8              Other                Credit
 9              Total                    N/A
                postretirement
                health benefits
                expense
10              Less claims paid        Debit
11              Postretirement           N/A
                health and accrued
                benefits liability-
                end of period
       Section: D                Section Name: Postretirement Health Liability Significant               No Data Flag: YES          Line Attributes: Percent
                                               Assumptions Used in Determining the Current FY
                                               and Prior FY Valuation
Line Status Line Description             NB        2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd    Line Item Changes
 1              Rate of Interest         N/A
 2              Ultimate rate of         N/A
                medical trend
 3              Single equivalent        N/A
                rate of medical
                trend




                                                                                                           - 41 ­
                                                                                                                                                                                  12/16/2013 11:03:38

                                                                                     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: 2013           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: F             Section Name: Other                                                     No Data Flag: YES          Line Attributes: Dollars
                                                                                                                               Rounding Method: User-Defined             Decimal: User-Defined
Line Status Line Description           NB       2013 - SEPTEMBER             2012 - 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: K             Section Name: Workers' Compensation Benefits (to be completed by        No Data Flag: YES          Line Attributes: Percent
                                            DOL)
Line Status Line Description           NB                     COLA                          CPIM
 5        I     2017+                 N/A




                                                                                                        - 42 ­
                                                                                                                                                                             12/16/2013 11:03:38

                                                                                      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: 2013          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 for pension expense 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 for pension expense 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.




                                                                                                             - 43 ­
                                                                                                                                                                                  12/16/2013 11:03:38

                                                                                  U.S. Department of the Treasury

                                                                                   Financial Management Service

                                                                              Governmentwide Financial Report System

                                                                                      GF006 - FR Notes Report


      Note: 12          Environmental and Disposal Liabilities                                                                    Fiscal Year: 2013               Period: SEPTEMBER
   Entity: 9100         Department of Education                                                                                   Agency Notes:      NA

  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     2013 - SEPTEMBER       2012 - SEPTEMBER
                                                                                 Type
Environmental and Disposal Liabilities                                    C        L                          0                  0
                                                                              Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description             2013 - SEPTEMBER          2012 - SEPTEMBER                Previously Rptd        Line Item Changes
  9
 10
 11
 12
 13
 14          Other Environmental
             and Disposal Liabilities
             Total




                                                                                                     - 44 ­
                                                                                                                                                                                      12/16/2013 11:03:38

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

     Note: 12            Environmental and Disposal Liabilities                                                                          Fiscal Year: 2013          Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                         Agency Notes:    NA

  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       2013 - SEPTEMBER               2012 - SEPTEMBER                   Previously Rptd     Line Item Changes
 1              Unrecognized         Debit
                portion of
                estimated total
                cleanup costs
                associated with
                general property,
                plant, and
                equipment


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




                                                                                                            - 45 ­
                                                                                                                                                                                          12/16/2013 11:03:38

                                                                                    U.S. Department of the Treasury

                                                                                     Financial Management Service

                                                                                Governmentwide Financial Report System

                                                                                        GF006 - FR Notes Report


     Note: 13          Benefits Due and Payable                                                                                           Fiscal Year: 2013               Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                            Agency Notes:      NA

  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     2013 - SEPTEMBER          2012 - SEPTEMBER
                                                                                   Type
Benefits Due and Payable                                                   C         L                             0                     0
                                                                                Variance:                          0                     0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description          2013 - SEPTEMBER              2012 - SEPTEMBER                   Previously Rptd            Line Item Changes
 9          Other Entitlement
            BenefitsDue and
            Payable
            Total

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




                                                                                                         - 46 ­
                                                                                                                                                                                              12/16/2013 11:03:38

                                                                                        U.S. Department of the Treasury

                                                                                         Financial Management Service

                                                                                    Governmentwide Financial Report System

                                                                                            GF006 - FR Notes Report


     Note: 14            Insurance and Guarantee Program Liabilities                                                                          Fiscal Year: 2013               Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                             Agency Notes:      NA

  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      2013 - SEPTEMBER         2012 - SEPTEMBER
                                                                                       Type
Insurance and Guarantee Program Liabilities                                     C        L                             0                     0
                                                                                    Variance:                          0                     0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description              2013 - SEPTEMBER              2012 - SEPTEMBER                   Previously Rptd            Line Item Changes
 7              Other Insurance
                Programs
 8
 9
              Total

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




                                                                                                              - 47 ­
                                                                                                                                                                                           12/16/2013 11:03:38

                                                                                        U.S. Department of the Treasury

                                                                                         Financial Management Service

                                                                                    Governmentwide Financial Report System

                                                                                            GF006 - FR Notes Report


      Note: 15             Other Liabilities                                                                                               Fiscal Year: 2013               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     2013 - SEPTEMBER       2012 - SEPTEMBER
                                                                                       Type
Other Liabilities                                                               C        L                      2,302                  3,036
                                                                                    Variance:                       0                      0           Rounding Method: Millions       Decimal: Zero
Line Status Line Description                   2013 - SEPTEMBER           2012 - SEPTEMBER               Previously Rptd           Line Item Changes
 1               Deferred revenue                                    31                         36                            36                            0
 2               Accrued wages and                                   28                         26                            26                            0
                 benefits
 4               Other debt
 6               Legal and other
                 contingencies
 7               Grant payments due to                            2,170                      2,901                         2,901                            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                                36                         37                            37                            0
 14              Advances and
                 prepayments
 15              Farm and other
                 subsidies
 16              Deposit funds                                       37                         36                            36                            0
 17              Bonneville Power
                 Administration non-
                 Federal power projects
                 and capital lease
                 liabilities and disposal
                 liabilities
 18              Derivative liabilities
 19
 20
 21
 22           Other Liabilities
              Total                                               2,302                       3,036                        3,036                            0




                                                                                                           - 48 ­
                                                                                                                                                                                        12/16/2013 11:03:38

                                                                                 U.S. Department of the Treasury

                                                                                  Financial Management Service

                                                                             Governmentwide Financial Report System

                                                                                     GF006 - FR Notes Report


   Note: 15           Other Liabilities                                                                                       Fiscal Year: 2013                  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



Threshold

Line Description                                              Question                                                     Answer
Line Item Notes - Deferred revenue (2013 - 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.
                                                              the current fiscal year and prior fiscal year. (Unaudited)
Line Item Notes - Grant payments due to State and local       Please provide explanations for any amounts that have        These balances represent estimated liabilities for expenditures incurred by
governments and others (2013 - SEPTEMBER)                     changed by 10% or more and or greater than 500,000 between   grantees prior to their receiving grant funds to cover the expenditures. The
                                                              the current fiscal year and prior fiscal year. (Unaudited)   decrease reflects the impact of the cumulative disbursement of funds
                                                                                                                           originally made available by the American Recovery and Reinvestment Act
                                                                                                                           of 2009 and normal changes in the estimate of the amount based on
                                                                                                                           statistical sampling.




                                                                                                    - 49 ­
                                                                                                                                                                                                           12/16/2013 11:03:38

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

     Note: 15            Other Liabilities                                                                                                   Fiscal Year: 2013                    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: Other Information                                                                           Line Attributes: Dollars
                                                                                                                                      Rounding Method: Millions                                 Decimal: Zero
Line Status Line Description           NB       2013 - SEPTEMBER               2012 - SEPTEMBER             Previously Reported
 8              Grant payments       Credit                        2,170                        2,901
                due to State and
                local government
                and others
                (Transportation,
                HHS, and
                Education only)



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 and the documentation support by email to FRD's central mailbox at                       ongoing continuous expenses such as Federal employee salaries and accrued
                     financial.reports@fms.treas.gov if amounts identified cannot be directly traced to the               employee annual leave.
                     agency's financial report.
 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 the amounts that are designated as either non-hedging or hedging instruments.
 4                   Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                     the significant
                     accounting policies pertaining to this note.




                                                                                                             - 50 ­
                                                                                                                                                                     12/16/2013 11:03:38

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

     Note: 17           Prior-Period Adjustments                                                                             Fiscal Year: 2013      Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                              Agency Notes:    NA

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

Tab: Other Notes Info.

       Section: A            Section Name: Non-Federal Prior-Period Adjustments - Restated        No Data Flag: YES      Line Attributes: Dollars
                                                                                                                       Rounding Method: Millions             Decimal: Zero
Line Status Line Description        NB                Amount C
 1                                  N/A
 2                                  N/A
 3                                  N/A
 4                                  N/A
 5                                  N/A
 6                                  N/A
 7                                  N/A
 8                                  N/A
 9                                  N/A
10                                  N/A
11              Total               N/A
       Section: B            Section Name: Federal Prior-Period Adjustments - Restated            No Data Flag: YES      Line Attributes: Dollars
                                                                                                                       Rounding Method: Millions             Decimal: Zero
Line Status Line Description        NB                Amount C
 1                                  N/A
 2                                  N/A
 3                                  N/A
 4                                  N/A
 5                                  N/A
 6                                  N/A
 7                                  N/A
 8                                  N/A
 9                                  N/A
10                                  N/A
11              Total               N/A




                                                                                                    - 51 ­
                                                                                                                                                                     12/16/2013 11:03:38

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

     Note: 17           Prior-Period Adjustments                                                                             Fiscal Year: 2013      Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                              Agency Notes:    NA

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


       Section: C            Section Name: Non-Federal Correction of Errors                       No Data Flag: YES      Line Attributes: Dollars
                                                                                                                       Rounding Method: Millions             Decimal: Zero
Line Status Line Description        NB                Amount C
 1                                  N/A
 2                                  N/A
 3                                  N/A
 4                                  N/A
 5                                  N/A
 6                                  N/A
 7                                  N/A
 8                                  N/A
 9                                  N/A
10                                  N/A
11              Total               N/A
       Section: D            Section Name: Federal Correction of Errors                           No Data Flag: YES      Line Attributes: Dollars
                                                                                                                       Rounding Method: Millions             Decimal: Zero
Line Status Line Description        NB                Amount C
 1                                  N/A
 2                                  N/A
 3                                  N/A
 4                                  N/A
 5                                  N/A
 6                                  N/A
 7                                  N/A
 8                                  N/A
 9                                  N/A
10                                  N/A
11              Total               N/A




                                                                                                    - 52 ­
                                                                                                                                                                     12/16/2013 11:03:38

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

     Note: 17           Prior-Period Adjustments                                                                             Fiscal Year: 2013      Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                              Agency Notes:    NA

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


       Section: E            Section Name: Non-Federal Immaterial Errors                          No Data Flag: YES      Line Attributes: Dollars
                                                                                                                       Rounding Method: Millions             Decimal: Zero
Line Status Line Description        NB                Amount C
 1                                  N/A
 2                                  N/A
 3                                  N/A
 4                                  N/A
 5                                  N/A
 6                                  N/A
 7                                  N/A
 8                                  N/A
 9                                  N/A
10                                  N/A
11              Total               N/A
       Section: F            Section Name: Federal Immaterial Errors                              No Data Flag: YES      Line Attributes: Dollars
                                                                                                                       Rounding Method: Millions             Decimal: Zero
Line Status Line Description        NB                Amount C
 1                                  N/A
 2                                  N/A
 3                                  N/A
 4                                  N/A
 5                                  N/A
 6                                  N/A
 7                                  N/A
 8                                  N/A
 9                                  N/A
10                                  N/A
11              Total               N/A




                                                                                                    - 53 ­
                                                                                                                                                                                                  12/16/2013 11:03:38

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

     Note: 17             Prior-Period Adjustments                                                                                       Fiscal Year: 2013                  Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                        Agency Notes:       NA

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


       Section: G               Section Name: Closing Package Adjustments                                                           Line Attributes: Dollars
                                                                                                                                  Rounding Method: Millions                             Decimal: Zero
Line Status Line Description           NB                  Amount C
 1              9.2 Net Position ­     N/A                              3
                Funds from
                Dedicated
                Collections
 2                                     N/A
 3                                     N/A
 4                                     N/A
 5                                     N/A
 6                                     N/A
 7                                     N/A
 8                                     N/A
 9                                     N/A
10                                     N/A
11          Total                      N/A                             -3
Tab: Text Data
 Line                 Question                                                                                         Answer
 1                    Describe the restatements to the prior year that resulted from correcting errors that occurred
                      in the prior year (data reported in Sections A and B).
 2                    Describe any errors that occurred in years preceding the prior year that adjusted the prior-
                      year beginning net position (data reported in Sections C and D).
 3                    Describe any immaterial errors that occurred in the prior period(s) that were corrected
                      against the current-year operations (data reported in Sections E and F).
 4                    Describe any adjustments of the previous year (2011) reclassification in this year's (2012)      The Department elected to split the presentation of the Balance Sheet line item - Net
                      Closing Package prior-year (2011) reporting (data reported in Section G), excluding              Position into 9.1 Net Position - all other funds and Net Position - Funds from Dedicated
                      amounts reported as restatements in Section A and B.                                             Collections to show the funds from dedicated collections separately from other funds,
                                                                                                                       even though the amount is immaterial to the financial statements.
 5                    Describe the adjustments to the current-year or prior-year beginning net position that
                      resulted from changes in accounting principles as reported on the Reclassified Statement of
                      Changes in Net Position, line 2.1 and/or line 3.1.
 6                    Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                      the significant accounting policies pertaining to this note.




                                                                                                              - 54 ­
                                                                                                                                                                                       12/16/2013 11:03:38

                                                                                     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: 2013              Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                   Agency Notes:    Note 20

  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       2013 - SEPTEMBER             2012 - 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       2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd     Line Item Changes
 3        I                          Credit
 4        I                          Credit
 5        I                          Credit
 6        I                          Credit
 7        I                          Credit
 8        I     Other insurance in   Credit
                force
 9        I     Total                 Debit
       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


                                                                                                        - 55 ­
                                                                                                                                                                                                       12/16/2013 11:03:38

                                                                                        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: 2013                 Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                             Agency Notes:      Note 20

  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                   Provide the nature of the isurance contingencies.
 2                   Provide the nature of the litigation contingencies, including the range of loss for probable
                     liabilities.
 3                   Provide the nature of the litigation contingencies including the range of loss for reasonably           The Department is involved in various lawsuits incidental to its operations. The
                     possible contingencies.                                                                                 Treasury Judgment Fund pays judgments resulting from litigation against the
                                                                                                                             Department. In the opinion of management, the ultimate resolution of pending litigation
                                                                                                                             will not have a material effect on the Department's financial position.
 4                   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.
 5                   Describe the other claims that may derive from treaties or international agreements.
 6                   Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                     the significant accounting policies pertaining to this note.




                                                                                                              - 56 ­
                                                                                                                                                                                                 12/16/2013 11:03:38

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

     Note: 19              Commitments                                                                                                    Fiscal Year: 2013                    Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                        Agency Notes:        Note 7 and 16

  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                           562                        0                         295                           0
  2          Undelivered orders        Credit                             0                  215,604                            0                   230,775
Threshold
 Line Description                                                   Question                                                           Answer




                                                                                                          - 57 ­
                                                                                                                                                                                                         12/16/2013 11:03:38

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

     Note: 19              Commitments                                                                                                          Fiscal Year: 2013                  Period: SEPTEMBER
     Entity: 9100           Department of Education                                                                                             Agency Notes:      Note 7 and 16

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


       Section: C                Section Name: Commitments: Operating leases and undelivered                                               Line Attributes: Dollars
                                               orders                                                                                    Rounding Method: Millions                            Decimal: Zero
Threshold
 Line Description                                                    Question                                                                Answer
 Other Notes Info - Operating leases (CY Federal)                    Please provide explanations for any amounts that have                   The increase is primarily due to the change in requirements of A-136 to
                                                                     changed by 10% or more and or greater than $500,000                     begin reporting both private and publicly owned buildings in fiscal year 2013.
                                                                     between the current fiscal year and prior fiscal year.                   In fiscal year 2012, the requirement was to only record publicly owned
                                                                     (unaudited)                                                             building lease amounts. The new disclosure requirements includes 22
                                                                                                                                             privately owned in addition to the previously recorded 8 publicly owned
                                                                                                                                             buildings in 19 cities.




       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.




                                                                                                                - 58 ­
                                                                                                                                                                                           12/16/2013 11:03:38

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

     Note: 22            Funds From Dedicated Collections                                                                                Fiscal Year: 2013              Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                        Agency Notes:     NA

  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   Other Federal Assets
                                                 monetary assets D                  Treasury D         Sec.(net of prem. & disc)                                (Funds from Dedicated (Funds not From Dedicat
                                                                                                                              D                                             Collec) D                Coll) D
26                                     N/A
27                                     N/A
28                                     N/A
29                                     N/A
30                                     N/A
31              All other funds from   N/A                                                         3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                                                         3

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 funds from   N/A                                                         3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                                                         3




                                                                                                          - 59 ­
                                                                                                                                                                                              12/16/2013 11:03:38

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

     Note: 22            Funds From Dedicated Collections                                                                                 Fiscal Year: 2013               Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                         Agency Notes:     NA

  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      Other Federal Assets
                                                 monetary assets D                  Treasury D         (net of prem. & disc.) D                                  (Funds From Dedicated    (Funds not from Dedicat
                                                                                                                                                                             Collec) D                   Coll) D
26                                     N/A
27                                     N/A
28                                     N/A
29                                     N/A
30                                     N/A
31              All other funds from   N/A                                                         3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                                                         3

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 funds from   N/A                                                         3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                                                         3




                                                                                                         - 60 ­
                                                                                                                                                                                         12/16/2013 11:03:38

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

     Note: 22             Funds From Dedicated Collections                                                                           Fiscal Year: 2013          Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                    Agency Notes:      NA

  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 Fed. Liab. (Funds   Other Fed. Liab. (Funds      Other non-Federal          Total liabilities        Ending net position C
                                                         payable C                From Dedicated         not from Dedicated             liabilities C
                                                                                    Collection) C                 Collec) C
26                                     N/A
27                                     N/A
28                                     N/A
29                                     N/A
30                                     N/A
31              All other funds from   N/A                                                                                                                                                                3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                                                                                                                                                               -3

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 funds from   N/A                            -3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                            -3




                                                                                                       - 61 ­
                                                                                                                                                                                         12/16/2013 11:03:38

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

     Note: 22             Funds From Dedicated Collections                                                                           Fiscal Year: 2013          Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                    Agency Notes:      NA

  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 Fed. Liab. (Funds   Other Fed. Liab. (Funds      Other non-Federal          Total liabilities        Ending net position C
                                                         payable C                From Dedicated         not from Dedicated             liabilities C
                                                                                    Collection) C                 Collec) C
26                                     N/A
27                                     N/A
28                                     N/A
29                                     N/A
30                                     N/A
31              All other funds from   N/A                                                                                                                                                                3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                                                                                                                                                               -3

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 funds from   N/A                            -3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                            -3




                                                                                                       - 62 ­
                                                                                                                                                                                          12/16/2013 11:03:38

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

     Note: 22            Funds From Dedicated Collections                                                                              Fiscal Year: 2013               Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                      Agency Notes:        NA

  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 funds from   N/A                             3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                          -3

Line Status Line Description           NB        Royalties and other            All other financing     Program gross cost or          Program earned         Non-program expenses       Net position, end of
                                                 special revenue C                     sources C          benefit payments D              revenues D                             D                   period
26                                     N/A
27                                     N/A
28                                     N/A
29                                     N/A
30                                     N/A
31              All other funds from   N/A                                                                                 0                            0                                                 -3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                                                                                 0                            0                                                 -3




                                                                                                         - 63 ­
                                                                                                                                                                                          12/16/2013 11:03:38

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

     Note: 22            Funds From Dedicated Collections                                                                              Fiscal Year: 2013               Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                      Agency Notes:        NA

  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 funds from   N/A                             3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                          -3

Line Status Line Description           NB        Royalties and other            All other financing     Program gross cost or          Program earned         Non-program expenses       Net position, end of
                                                 special revenue C                     sources C          benefit payments D              revenues D                             D                   period
26                                     N/A
27                                     N/A
28                                     N/A
29                                     N/A
30                                     N/A
31              All other funds from   N/A                                                                                 0                            0                                                 -3
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                                                                                 0                            0                                                 -3




                                                                                                         - 64 ­
                                                                                                                                                                                                            12/16/2013 11:03:38

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

     Note: 22            Funds From Dedicated Collections                                                                                        Fiscal Year: 2013                  Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                                  Agency Notes:       NA

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


       Section: G              Section Name: Number of Agency Funds From Dedicated                                                            Line Attributes: Units
                                             Collections
Line Status Line Description           NB      2013 - SEPTEMBER                  2012 - SEPTEMBER                    Previously Rptd         Line Item Changes
 1              Total number of        N/A                         2.0000                         2.0000                                                     2.0000
                funds from
                dedicated
                collections




Tab: Text Data
 Line                Question                                                                                                  Answer
 1                   Provide a general description of the individual funds from dedicated collections reported in              Funds from dedicated collections are recorded as specifically identified revenues, often
                     the Other Notes Info tab (SFFAS No. 27, par. 33, as amended by SFFAS No. 43). Also                        supplemented by other financing sources, which remain available over time. These
                     describe how the entity accounts for and reports the fund (SFFAS No. 27, par. 23.1, as                    funds are required by statute to be used for designated activities, benefits, or purposes.
                     amended by SFFAS No. 43).                                                                                 The Department's funds from dedicated collections 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             Funds from dedicated collections are recorded as specifically identified revenues, often
                      other financing sources based on SFFAS No. 27, par. 23.1, as amended by SFFAS No. 43.                    supplemented by other financing sources, which remain available over time. These
                                                                                                                               funds are required by statute to be used for designated activities, benefits, or purposes.
                                                                                                                               The Department's funds from dedicated collections 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
                      redirect a material portion of the accumulated balance (SFFAS No. 27, par. 23.3, as
                      amended by SFFAS No. 43).
 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, as                   entities and individuals made donations of financial assistance to the U.S. Goverment to
                      amended by SFFAS No. 43).                                                                                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.




                                                                                                                - 65 ­
                                                                                                                                                                             12/16/2013 11:03:38

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

     Note: 25            Stewardship Land                                                                                              Fiscal Year: 2013     Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                       Agency Notes:    NA

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


       Section: A             Section Name: Stewardship Land (SFFAS No. 29, par. 40d)                   No Data Flag: YES          Line Attributes: Units


Line Status Line Description         NB       2013 - SEPTEMBER               2012 - SEPTEMBER                   Previously Rptd    Line Item Changes
 1              Public Land          N/A
 2              National Forest      N/A
                System
 3              National Wildlife    N/A
                Refuge System
 4              National Park        N/A
                System
 5              Withdrawn public     N/A
                land
 6              Mission Land         N/A
 7              Water, power,and     N/A
                recreation
 8              Geographic           N/A
                management areas
 9              National fish        N/A
                hatcheries
10              Conservation areas   N/A
11          National marine          N/A
            monuments
12          All other                N/A
Tab: Text Data                         No Data Flag: YES
 Line                Question                                                                                             Answer
 1                   Describe the predominant uses of the stewardship land (SFFAS 29, par. 40c).
 2                   Provide the condition of the stewardship land (SFFAS 29, par. 41).
 3                   Provide a brief statement explainng how the stewardship land relates to the mission of the
                     agency (SFFAS No. 29, par. 40a).
 4                   Provide a brief description of the agency's stewardship policies for stewardsip land (SFFAS
                     No. 29, par. 40b).
 5                   Provide any other information relevant information pertaining to this note. At a minimum,
                     describe briefly the significant accounting policies pertaining to this note.




                                                                                                           - 66 ­
                                                                                                                                                                            12/16/2013 11:03:38

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

     Note: 26          Heritage Assets                                                                                               Fiscal Year: 2013      Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                      Agency Notes:     NA

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


       Section: A            Section Name: Collection Type Heritage Assets (SFFAS No. 29, par.           No Data Flag: YES        Line Attributes: Units
                                           25d)
Line Status Line Description         NB        Physical units at the       Physical units at the end
                                              end of the Current FY                of the Prior FY
 1                                   N/A
 2                                   N/A
 3                                   N/A
 4                                   N/A
 5                                   N/A



       Section: B            Section Name: Non-Collection Type Heritage Assets (SFFAS No.                No Data Flag: YES        Line Attributes: Units
                                           29, par. 25d)
Line Status Line Description         NB        Physical units at the       Physical units at the end
                                              end of the Current FY                of the Prior FY
 1                                   N/A
 2                                   N/A
 3                                   N/A
 4                                   N/A
 5                                   N/A


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




                                                                                                            - 67 ­
                                                                                                                                                                                            12/16/2013 11:03:38

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

     Note: 27        Fiduciary Activities                                                                                                Fiscal Year: 2013               Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                             Agency Notes:        NA

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

Tab: Other Notes Info.

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

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

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



                                                                                                       - 68 ­
                                                                                                                                                                                            12/16/2013 11:03:38

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

     Note: 27        Fiduciary Activities                                                                                                Fiscal Year: 2013               Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                             Agency Notes:        NA

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


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

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

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




                                                                                                       - 69 ­
                                                                                                                                                                               12/16/2013 11:03:38

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

      Note: 27          Fiduciary Activities                                                                                            Fiscal Year: 2013      Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                         Agency Notes:     NA

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


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


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



Tab: Text Data                          No Data Flag: YES
 Line               Question                                                                                                Answer
 1                  Describe the fiduciary relationship, for example, the applicable legal authority, the objectives
                    of the fiduciary activity, and a general description of the beneficial owners or class of owners
                    of each fiduciary fund (SFFAS No. 31, par. 18(a)).
 2                  Provide information on any significant changes in fiduciary net assets from the prior period
                    (SFFAS No. 31, par. 18(c)).
 3                  Provide the TAS for all funds with fiduciary activities.
 4                  For any cash included in the Schedules of Fiduciary Net Assets, indicate if the cash is
                    represented by balances on deposit with either the U.S. Treasury or with a commercial
                    banking institution (SSFAS No. 31, par. 12).
 5                  Provide a description of any cash equivalents included in the Schedules of Fiduciary Net
                    Assets.
 6                  If separate audited financial statements are issued for an individual fiduciary activity with a
                    fiscal yearend other than September 30, indicate the fiduciary activity's FY (SFFAS No. 31,
                    par. 18(e)).
 7                  If separate audited financial statements are issued for an individual fiduciary activity, disclose
                    the basis of accounting used and the auditor's opinion on the current or most recent financial
                    statements. If the auditor's opinion was not unqualified, disclose the reason(s) stated by the
                    auditors and refer the reader to the audit opinion for further information (SFFAS No. 31, par.
                    22(a)).
 8                  If separate audited financial statements are issued for an individual fiduciary activity, provide
                    information on how the reader can obtain a copy of the financial statements and the audit
                    opinion thereon (SFFAS No. 31, par. 22(b)).
 9                  If more than one agency is responsible for administering a fiduciary activity, and the separate
                    portions of the activity can be clearly identified with another responsible agency, identify the
                    other agency(ies) involved in managing the activity (SFFAS No.31.par.19).
 10                 Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                    the significant accounting policies pertaining to this note.




                                                                                                               - 70 ­
                                                                                                                                                                                    12/16/2013 11:03:38

                                                                                  U.S. Department of the Treasury

                                                                                   Financial Management Service

                                                                              Governmentwide Financial Report System

                                                                                      GF006 - FR Notes Report


     Note: 28A         Financial and Housing Market Stabilization - Investment in Government Sponsored Enterprises (GSE)           Fiscal Year: 2013             Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                     Agency Notes:    NA

  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    2013 - SEPTEMBER         2012 - SEPTEMBER
                                                                                 Type
Investment in Government sponsored enterprises (GSEs)                    D         A                           0                   0
                                                                              Variance:                        0                   0         Rounding Method: Millions         Decimal: Zero
Line Status Line Description        CY Gross investment as of      CY Cumulative valuation         CY September 30 fair PY Gross investment as of   PY Cumulative valuation PY September 30 fair value
                                           September 30                   (gain/loss)                       value              September 30                (gain/loss)
 1          Fannie Mae senior
            preferred stock
 2          Freddie Mac senior
            preferred stock
 3          Fannie Mae warrants
            common stock
 4          Freddie Mac warrants
            common stock
 5
 6
 7
 8          Total GSE investment
            Total




                                                                                                      - 71 ­
                                                                                                                                                                             12/16/2013 11:03:38

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

     Note: 28A           Financial and Housing Market Stabilization - Investment in Government Sponsored Enterprises (GSE)           Fiscal Year: 2013      Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                     Agency Notes:    NA

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

Tab: Other Notes Info.

       Section: A              Section Name: Other Related Information                                No Data Flag: YES          Line Attributes: Dollars
                                                                                                                               Rounding Method: Millions             Decimal: Zero
Line Status Line Description          NB        2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd    Line Item Changes
 1             Revenue               Credit
               recognized from
               acquisition of
               preferred stocks
               and warrants and
               valuation
               (gain)/loss on GSE
               preferred stocks
 2             Revenue               Credit
               recognized from
               dividends
       Section: B              Section Name: Other Related Information (in Percentages)               No Data Flag: YES          Line Attributes: Percent


Line Status Line Description          NB        2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd    Line Item Changes
 1             Nominal cost           N/A
               percentage of
               common stock on a
               fully diluted basis
 2             Rate of dividends      N/A




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


Line Status Line Description          NB        2013 - SEPTEMBER             2012 - SEPTEMBER                Previously Rptd    Line Item Changes
 1             Number of non­         N/A
               voting senior
               preferred stock ­
               shares




                                                                                                        - 72 ­
                                                                                                                                                                    12/16/2013 11:03:38

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

   Note: 28A        Financial and Housing Market Stabilization - Investment in Government Sponsored Enterprises (GSE)         Fiscal Year: 2013     Period: SEPTEMBER
  Entity: 9100       Department of Education                                                                                  Agency Notes:    NA

 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 any other relevant information pertaining to this note. At a minimum, describe briefly
                 the significant
                 accounting policies pertaining to this note.




                                                                                                         - 73 ­
                                                                                                                                                                                      12/16/2013 11:03:38

                                                                                     U.S. Department of the Treasury

                                                                                      Financial Management Service

                                                                                 Governmentwide Financial Report System

                                                                                         GF006 - FR Notes Report


     Note: 28B           Financial and housing Market Stabilization - Liabilities to Government Sponsored Enterprises (GSE)            Fiscal Year: 2013              Period: SEPTEMBER
   Entity: 9100          Department of Education                                                                                       Agency Notes:     NA

  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               Current FY            Current FY
                                                                                    Type
Liabilities to Government Sponsored Enterprises                              C        L                            0                  0
                                                                                 Variance:                         0                  0           Rounding Method: Millions       Decimal: Zero
Line Status Line Description            2013 - SEPTEMBER              2012 - SEPTEMBER                  Previously Rptd       Line Item Changes
 1           GSE accrued liability
 2           GSE contingent
             liability
 3      I
 4      I
 5      I
 6           All other liabilities
             Total




                                                                                                          - 74 ­
                                                                                                                                                                                  12/16/2013 11:03:38

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

     Note: 28B          Financial and housing Market Stabilization - Liabilities to Government Sponsored Enterprises (GSE)                Fiscal Year: 2013      Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                           Agency Notes:    NA

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

Tab: Other Notes Info.

       Section: A            Section Name: Other Related Information                                     No Data Flag: YES            Line Attributes: Dollars
                                                                                                                                    Rounding Method: Millions             Decimal: Zero
Line Status Line Description         NB       2013 - SEPTEMBER                2012 - SEPTEMBER                   Previously Rptd     Line Item Changes
 1             Actual payment       Debit
               made to the GSE




       Section: B            Section Name: Case Scenarios                                                No Data Flag: YES            Line Attributes: Dollars
                                                                                                                                    Rounding Method: Millions             Decimal: Zero
Line Status Line Description         NB        2013 - SEPTEMBER             2012 - SEPTEMBER D                 Previously Rptd D    Line Item Changes D
                                                              D
 1             Optimistic case       N/A
               scenario
 2             Extreme case          N/A
               scenario




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.




                                                                                                            - 75 ­
                                                                                                                                                                  12/16/2013 11:07:33

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

 Other Data: 01            Taxes                                                                                        Fiscal Year: 2013             Period: SEPTEMBER
       Entity: 9100        Department of Education                                                                          Agency Notes:    NA
      Status: Complete                                                                   I = Inactive Line


  Tab: Other Data Info.
     Section: A              Section Name: Taxes (SSFAS No.7, par. 67-69)                      No Data: YES             Line Attributes: Dollars
                                                                                                                      Rounding Method: User-Defined         Decimal: User-Defined
Line Status   Line Description        NB      2013 - SEPTEMBER        2012 - SEPTEMBER              Previously Rptd      Line Item Changes
 1            Estimated realized      Debit
              value of compliance
              assessments as of
              the end of the period
 2            Estimated realizable    Debit
              value of pre-
              assessment work­
              in-progress
 3            Changes in 1 and 2      Debit
              above
 4            Other claims for        Debit
              refunds not yet
              accrued but likely to
              be paid when
              administrative
              actions are
              completed
 5            Management's best       Debit
              estimate of
              unasserted claims for
              refunds
 6            Changes in 4 and 5      Debit
              above
 7            Amount of               Debit
              assessments written
              off that continue to
              be statutorily
              collectible




                                                                                              - 1 ­
                                                                                                                                                                                     12/16/2013 11:07:33

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

 Other Data: 01                Taxes                                                                                                       Fiscal Year: 2013             Period: SEPTEMBER
         Entity: 9100          Department of Education                                                                                         Agency Notes:    NA
        Status: Complete                                                                                   I = Inactive Line


     Tab: Other Data Info.
      Section: B                  Section Name: Provide the following amount if a range is estimable              No Data: YES             Line Attributes: Dollars
                                                and not included in Sec. A (SFFAS No. 7 par 67-69)                                       Rounding Method: User-Defined         Decimal: User-Defined


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

     Tab: Other Text Data

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

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




                                                                                                                 - 2 ­
                                                                                                                                                                       12/16/2013 11:07:33

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

 Other Data: 08            Stewardship Investments                                                                           Fiscal Year: 2013             Period: SEPTEMBER
       Entity: 9100        Department of Education                                                                               Agency Notes:    NA
      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 2013                   FY 2012                       FY 2011                FY 2010                 FY 2009
 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 2013                   FY 2012                       FY 2011                FY 2010                 FY 2009
 1                                  Debit
 2                                  Debit
 3                                  Debit
 4                                  Debit
 5                                  Debit
 6            Other investment in   Debit
              development




                                                                                                  - 3 ­
                                                                                                                                                                                          12/16/2013 11:07:33

                                                                                     U.S. Department of the Treasury

                                                                                      Financial Management Service

                                                                                 Governmentwide Financial Report System
                                                                                        GF007 - Other Data Report

 Other Data: 08               Stewardship Investments                                                                                    Fiscal Year: 2013                Period: SEPTEMBER
        Entity: 9100          Department of Education                                                                                        Agency Notes:        NA
       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 2013                   FY 2012                       FY 2011                     FY 2010                      FY 2009
 1	              Federal Student Aid    Debit                      -14,292                      9,401                       -5,555                       11,096                     -22,055
 2               Elementary and         Debit                       22,332                     22,137                       21,195                       21,608                       21,443 

                 Secondary Education

 3               Special Education      Debit                       15,097                     16,139                       15,357                       15,227                       15,075 

                 and Rehab Services

 4               Other Departmental     Debit                        5,246                      6,211                          7,341                      7,067                        7,150 

                 Programs

 5               Salaries and           Debit                          504                        481                           504                         502                          472 

                 Administration

 6	              Other Investments in   Debit                        2,623                      7,651                       27,945                       44,019                       21,616 

                 human capital

     Threshold
      Line Description                                               Question	                                                                    Answer
      Other Data Info - Federal Student Aid (FY 2013)	               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 2013)	                                                     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 2013)	                                                     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 2013)	       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 2013)	       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
      2013)	                                                         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)


                                                                                                          - 4 ­
                                                                                                                                                                               12/16/2013 11:07:33

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

 Other Data: 08               Stewardship Investments                                                                                Fiscal Year: 2013             Period: SEPTEMBER
         Entity: 9100         Department of Education                                                                                    Agency Notes:    NA
        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 2013                     FY 2012                       FY 2011                FY 2010                 FY 2009
 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 2013                     FY 2012                       FY 2011                FY 2010                 FY 2009
 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)




                                                                                                           - 5 ­
                                                                                                                                                                                           12/16/2013 11:07:33

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

Other Data: 08               Stewardship Investments                                                                                    Fiscal Year: 2013                  Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                          Agency Notes:       NA
       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


                                                                                                          - 6 ­
                                                                                                                                                                                         12/16/2013 11:07:33

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

Other Data: 08              Stewardship Investments                                                                                    Fiscal Year: 2013                 Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                        Agency Notes:       NA
       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 Department's Recovery Act funding was appropriated for the creation of a new State
                                                                                                                       Fiscal Stabilization Fund with the goal to stabilize state and local government budgets to
                                                                                                                       avoid reductions in education and other essential public services while driving education
                                                                                                                       reform. The Department was tasked with promptly disbursing these funds through a variety
                                                                                                                       of existing and new grant programs, while ensuring the transparency. 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)




                                                                                                        - 7 ­
                                                                                                                                                                12/16/2013 11:07:33

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

 Other Data: 09             Deferred Maintenance                                                                    Fiscal Year: 2013             Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                     Agency Notes:       NA
      Status: Complete                                                             I = Inactive Line


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




                                                                                        - 8 ­
                                                                                                                                                                              12/16/2013 11:07:33

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

 Other Data: 14               Risk Assumed-Federal Insurance and Guarantee Programs(SFFAS No. 5, par. 105, 106,and 114)             Fiscal Year: 2013             Period: SEPTEMBER
         Entity: 9100         Department of Education                                                                                   Agency Notes:    NA
        Status: Complete                                                                            I = Inactive Line


     Tab: Other Data Info.
      Section: A                Section Name: Risk Assumed                                                 No Data: YES             Line Attributes: Dollars
                                                                                                                                  Rounding Method: User-Defined         Decimal: User-Defined
Line Status      Line Description        NB       2013 - SEPTEMBER            2012 - SEPTEMBER                  Previously Rptd      Line Item Changes
 1               Present value of       Debit
                 unpaid expected
                 losses (net of
                 associated
                 premiums)
 2               Periodic changes       Debit




     Tab: Other Text Data

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

 Line          Question                                                                                                 Answer
 1            Provide the indicators of the range of uncertainty around Federal insurance and guarantee
              programs related estimates and sensitivity of the estimates to changes in major assumptions
              (SFFAS No.5, par.114)
 2            Provide the actuarial or financial methods used to measure the present value of unpaid expected
              losses (SFFAS No. 5. par. 114)
 3            Provide a listing of the Federal insurance and guarantee programs (SFFAS No. 5, par. 105).




                                                                                                         - 9 ­
                                                                                                                                                                         12/16/2013 11:07:33

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

 Other Data: 15              Budget Deficit Reconciliation                                                                    Fiscal Year: 2013            Period: SEPTEMBER
       Entity: 9100          Department of Education                                                                             Agency Notes:     NA
      Status: Complete                                                                       I = Inactive Line


  Tab: Other Data Info.
     Section: A                Section Name: Operating Revenue to Budget Receipts                  No Data: YES              Line Attributes: Dollars
                                                                                                                           Rounding Method: User-Defined           Decimal: User-Defined
Line Status   Line Description         NB          Budget Receipts   D   Operating Revenue    C     Diff Budget Receipts vs Cust Collections Trans to Cust Collections Received Adj Diff Between Budget
                                                                                                     Operating Revenue        GF or Rec Agency      D   from Collecting Agency Rec vs Operating Rev
                                                                                                                                                                              C
 1            Individual income tax    N/A
              and tax withholdings
 2            Corporation income       N/A
              taxes
 3            Unemployment taxes       N/A
 4            Excise taxes             N/A
 5            Estate and gift taxes    N/A
 6            Customs duties           N/A
 7            Other taxes and          N/A
              receipts
 8            Earned revenue - to      N/A
              be completed by
              OPM only
 9            Total                    N/A
     Section: B                Section Name: Net Outlays to SBR                                    No Data: YES              Line Attributes: Dollars
                                                                                                                           Rounding Method: User-Defined           Decimal: User-Defined
Line Status   Line Description         NB         CY - MTS Net Outlays    CY - SBR Net Outlays       CY - DIFFERENCE
                                                                     D                       C
 1            Net Outlays              N/A




                                                                                                  - 10 ­
                                                                                                                                                                12/16/2013 11:07:33

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

 Other Data: 15           Budget Deficit Reconciliation                                                                     Fiscal Year: 2013        Period: SEPTEMBER
      Entity: 9100        Department of Education                                                                              Agency Notes:    NA
     Status: Complete                                                                      I = Inactive Line


  Tab: Other Data Info.
    Section: C              Section Name: Earned Revenue to Undistributed Offsetting Receipts                               Line Attributes:
                                          - Employer Share, Employee Retirement (DOS, DOD
                                          and OPM only)


Line Status   Line Description      NB         CY - MTS Receipts        CY - PAR Amount               CY - Difference




    Section: D              Section Name: Earned Revenue to Undistributed Offsetting Receipts                               Line Attributes:
                                          - Interest Rec by Trust Funds (DOS, DOD, DOL, SSA,
                                          HHS and OPM only)


Line Status   Line Description      NB      CY - MTS Undistributed        CY - Earned Revenue                  Difference
                                          Offsetting Receipts, Tble 5 Rejported on agency PAR




                                                                                                - 11 ­
                                                                                                                                                                             12/16/2013 11:07:33

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

 Other Data: 15                Budget Deficit Reconciliation                                                                             Fiscal Year: 2013        Period: SEPTEMBER
         Entity: 9100          Department of Education                                                                                      Agency Notes:    NA
        Status: Complete                                                                                I = Inactive Line


     Tab: Other Data Info.
      Section: E                 Section Name: Operating Revenue to Undistributed Offsetting                                             Line Attributes:
                                               Receipts (DOI only)


Line Status      Line Description        NB             MTS Undistributed          Miscellaneous Earned                     Difference
                                                Offsetting Receipts, Tble 5         Revenue reported on
                                                                                               SCNP




     Tab: Other Text Data

        Section: A                  Section Name: Operating Revenue to Budget Receipts                             No Data: YES

 Line         Question                                                                                                        Answer
 1            Note: The normal balance for net outlays is not supported by the USSGL. The MTS Net Outlays
              are assigned a normal debit balance and the SBR Net Outlays a normal credit balance in GFRS.
              Please enter net outlays into both columns as normal, that is as a positive number. MTS Net
              Outlays will appear as a debit and SBR Net Outlays will appear as a credit in GFRS reports.
              This set-up was required for the difference column to calculate correctly.
 2            Collecting agencies provide the Closing Package line in which the custodial transfer-out
              (disposition of collection) was recorded and the trading partner code.
 3            Receiving agencies provide the Closing Package line in which the custodial transfer-in/revenue
              was recorded and the trading partner code.
 4            Provide a detailed description of the difference and whether this difference will be resolved next
              FY.
     Tab: Other Text Data

        Section: B                  Section Name: Net Outlays to SBR                                               No Data: YES

 Line         Question                                                                                                        Answer
 1            Provide a detailed description of the difference and whether this difference will be resolved next
              FY.




                                                                                                             - 12 ­
                                                                                                                                                                       12/16/2013 11:07:33

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

Other Data: 15               Budget Deficit Reconciliation                                                                         Fiscal Year: 2013        Period: SEPTEMBER
       Entity: 9100          Department of Education                                                                                  Agency Notes:    NA
       Status: Complete                                                                               I = Inactive Line



    Tab: Other Text Data

       Section: C                Section Name: Earned Revenue to Undistributed Offsetting Receipts               No Data: YES
                                               - Employer Share, Employee Retirement (DOS, DOD
                                               and OPM only)

Line        Question                                                                                                      Answer
1           Provide a cross-reference to intragovernmental earned revenue reported in PAR in the "Agency
            Notes" field.
2           Provide a detailed description fo the difference and whether this difference will be resolved next
            FY.
    Tab: Other Text Data

       Section: D                Section Name: Earned Revenue to Undistributed Offsetting Receipts               No Data: YES
                                               - Interest Rec by Trust Funds (DOS, DOD, DOL, SSA,
                                               HHS and OPM only)

Line        Question                                                                                                      Answer
1           Provide a cross-reference to intragovernmental earned revenue reported in PAR in the "Agency
            Notes" field.
2           Provide a detailed description fo the difference and whether this difference will be resolved next
            FY.
    Tab: Other Text Data

       Section: E                Section Name: Operating Revenue to Undistributed Offsetting                     No Data: YES
                                               Receipts (DOI only)

Line        Question                                                                                                      Answer
1           Provide a detailed description fo the difference and whether this difference will be resolved next
            FY.




                                                                                                           - 13 ­
                                                                                                                                                                               12/16/2013 11:07:33

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

 Other Data: 16             Components of Loans and Equity Investments                                                         Fiscal Year: 2013                Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                Agency Notes:       Note 6
      Status: Complete                                                                        I = Inactive Line


  Tab: Other Data Info.
     Section: A               Section Name: Components of Direct Loans Receivable, Gross ­                                     Line Attributes: Dollars
                                            Current Year                                                                     Rounding Method: Millions                  Decimal: Zero


Line Status   Line Description        NB      CY-Federal Direct Student   CY-Electric Loans       CY-Rural Housing Service         CY-Federal Family               CY-Water and          CY-Farm Loans
                                                              Loans                                                                Education Loan         Environmental Loans
 1            Direct Loans            Debit                   493,959                                                                        147,003
              Receivable, Gross ­
              Beginning of Year
 2            Disbursements           Debit                   129,880                                                                          9,541
              (loans
              made/securities
              purchased)
 3            Repayments              Debit                   -34,663                                                                        -17,724
 4            Losses                  Debit
 5            Capitalized interest    Debit                      9,857                                                                         3,388
 6            Capitalized dividends Debit
 7            Other                   Debit                    14,827                                                                          1,390
 8            Direct Loans            N/A                     613,860                                                                        143,598
              receivable, gross-
              end of the year

Line Status   Line Description        NB        CY-Export-Import Bank        CY-U.S. Agency for      CY-Housing and Urban CY-GSE Mortgage Backed                CY-All other loans              CY-Total
                                                             Loans    International Development           Development          Securities Purchase                  receivable
                                                                                                                                       Program
 1            Direct Loans            Debit                                                                                                                                2,000                     642,962
              Receivable, Gross ­
              Beginning of Year
 2            Disbursements           Debit                                                                                                                                  331                     139,752
              (loans
              made/securities
              purchased)
 3            Repayments              Debit                                                                                                                                  -77                     -52,464
 4            Losses                  Debit
 5            Capitalized interest    Debit                                                                                                                                   12                      13,257
 6            Capitalized dividends   Debit
 7            Other                   Debit                                                                                                                                   37                      16,254
 8            Direct Loans             N/A                                                                                                                                 2,303                     759,761
              receivable, gross-



                                                                                                  - 14 ­
                                                                                                                                                                                 12/16/2013 11:07:33

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

 Other Data: 16              Components of Loans and Equity Investments                                                          Fiscal Year: 2013                Period: SEPTEMBER
       Entity: 9100          Department of Education                                                                                 Agency Notes:       Note 6
      Status: Complete                                                                          I = Inactive Line


  Tab: Other Data Info.
     Section: A                 Section Name: Components of Direct Loans Receivable, Gross ­                                     Line Attributes: Dollars
                                              Current Year                                                                     Rounding Method: Millions                  Decimal: Zero


Line Status   Line Description         NB       CY-Export-Import Bank        CY-U.S. Agency for        CY-Housing and Urban CY-GSE Mortgage Backed                CY-All other loans              CY-Total
                                                             Loans    International Development             Development          Securities Purchase                  receivable
                                                                                                                                         Program
              end of the year




     Section: B                 Section Name: Components of Direct Loans Receivable, Gross ­                                     Line Attributes: Dollars
                                              Prior Year                                                                       Rounding Method: Millions                  Decimal: Zero


Line Status   Line Description         NB     PY-Federal Direct Student     PY-Electric Loans       PY-Rural Housing Service         PY-Federal Family               PY-Water and          PY-Farm Loans
                                                              Loans                                                                  Education Loan         Environmental Loans
 1            Direct Loans            Debit                   356,108                                                                          147,283
              Receivable, gross ­
              beginning of year
 2            Disbursements           Debit                   141,903                                                                           10,140
              (loans
              made/securities
              purchased)
 3            Repayments              Debit                   -23,650                                                                          -16,630
 4            Losses                  Debit
 5            Capitalized interest    Debit                     9,379                                                                            3,879
 6            Capitalized dividends Debit
 7            Other                   Debit                    10,219                                                                            2,331
 8            Direct Loans             N/A                    493,959                                                                          147,003
              receivable, gross-
              end of the year

Line Status   Line Description         NB       PY-Export-Import Bank        PY-U.S. Agency for        PY-Housing and Urban PY-GSE Mortgage Backed                PY-All other loans              PY-Total
                                                             Loans    International Development             Development          Securities Purchase                  receivable
                                                                                                                                         Program
 1            Direct Loans            Debit                                                                                                                                  1,545                     504,936



                                                                                                    - 15 ­
                                                                                                                                                                            12/16/2013 11:07:33

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

 Other Data: 16             Components of Loans and Equity Investments                                                       Fiscal Year: 2013               Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                              Agency Notes:      Note 6
      Status: Complete                                                                       I = Inactive Line


  Tab: Other Data Info.
     Section: B               Section Name: Components of Direct Loans Receivable, Gross ­                                   Line Attributes: Dollars
                                            Prior Year                                                                     Rounding Method: Millions                 Decimal: Zero


Line Status   Line Description        NB      PY-Export-Import Bank        PY-U.S. Agency for       PY-Housing and Urban PY-GSE Mortgage Backed              PY-All other loans              PY-Total
                                                           Loans    International Development            Development          Securities Purchase                receivable
                                                                                                                                      Program
              Receivable, gross ­
              beginning of year
 2            Disbursements           Debit                                                                                                                               279                     152,322
              (loans
              made/securities
              purchased)
 3            Repayments              Debit                                                                                                                               -75                     -40,355
 4            Losses                  Debit
 5            Capitalized interest    Debit                                                                                                                                  5                     13,263
 6            Capitalized dividends   Debit
 7            Other                   Debit                                                                                                                               246                      12,796
 8            Direct Loans            N/A                                                                                                                               2,000                     642,962
              receivable, gross-
              end of the year
     Section: C               Section Name: Components of Loan Guarantees, Gross - Current                                   Line Attributes: Dollars
                                            Year                                                                           Rounding Method: Millions                 Decimal: Zero


Line Status   Line Description        NB          CY-Federal Family         CY-Federal Housing       CY-Veterans Housing    CY-Export-Import Bank CY-Small Business Loans CY-Israeli Loan Guarantee
                                                 Education Loans         Administration Loans         Benefit Program                    Loans                                          Program
 1            Guaranteed Loans,       Debit                 290,668
              gross-beginning of
              the year
 2            Disbursements           Debit
              (loans
              made/securities
              purchased)
 3            Repayments              Debit                 -22,975
 4            Other                   Debit                  -3,709
 5            Guaranteed Loans,       N/A                   263,984
              gross-end of the
              year




                                                                                                 - 16 ­
                                                                                                                                                                           12/16/2013 11:07:33

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

 Other Data: 16            Components of Loans and Equity Investments                                                       Fiscal Year: 2013                Period: SEPTEMBER
       Entity: 9100        Department of Education                                                                              Agency Notes:       Note 6
      Status: Complete                                                                      I = Inactive Line


  Tab: Other Data Info.
     Section: C              Section Name: Components of Loan Guarantees, Gross - Current                                   Line Attributes: Dollars
                                           Year                                                                           Rounding Method: Millions                  Decimal: Zero


Line Status   Line Description      NB      CY-OPIC Credit Program CY-Rural Housing Service CY-Business and Industry            CY-Export Credit       CY-All other Guaranteed              CY-Total
                                                                                                           Loans           Guarantee Programs                         loans
 1            Guaranteed Loans,     Debit                                                                                                                                                        290,668
              gross-beginning of
              the year
 2            Disbursements         Debit
              (loans
              made/securities
              purchased)
 3            Repayments            Debit                                                                                                                                                        -22,975
 4            Other                 Debit                                                                                                                                                         -3,709
 5            Guaranteed Loans,       N/A                                                                                                                                                        263,984
              gross-end of the
              year
     Section: D               Section Name: Components of Loan Guarantees, Gross - Prior Year                               Line Attributes: Dollars
                                                                                                                          Rounding Method: Millions                  Decimal: Zero
Line Status   Line Description      NB           PY-Federal Family         PY-Federal Housing       PY-Veterans Housing    PY-Export-Import Bank PY-Small Business Loans PY-Israeli Loan Guarantee
                                                Education Loans         Administration Loans         Benefit Program                    Loans                                          Program
 1             Guaranteed Loans,    Debit                  327,617
               gross-beginning of
               the year
 2             Disbursements        Debit
               (loans
               made/securities
               purchased)
 3             Repayments           Debit                  -26,618
 4             Other                Debit                  -10,331
 5             Guaranteed Loans,    N/A                    290,668
               gross-end of the
               year

Line Status   Line Description      NB      PY-OPIC Credit Program PY-Rural Housing Service PY-Business and Industry             PY-Export Credit      PY-All other Guaranteed              PY-Total
                                                                                                           Loans           Guarantee Programs                         loans
 1            Guaranteed Loans,     Debit                                                                                                                                                        327,617
              gross-beginning of
              the year



                                                                                                - 17 ­
                                                                                                                                                                                12/16/2013 11:07:33

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

 Other Data: 16             Components of Loans and Equity Investments                                                           Fiscal Year: 2013                Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                  Agency Notes:       Note 6
      Status: Complete                                                                           I = Inactive Line


  Tab: Other Data Info.
     Section: D                 Section Name: Components of Loan Guarantees, Gross - Prior Year                                  Line Attributes: Dollars
                                                                                                                               Rounding Method: Millions                  Decimal: Zero
Line Status   Line Description         NB      PY-OPIC Credit Program PY-Rural Housing Service PY-Business and Industry               PY-Export Credit      PY-All other Guaranteed               PY-Total
                                                                                                              Loans             Guarantee Programs                         loans
 2            Disbursements           Debit
              (loans
              made/securities
              purchased)
 3            Repayments              Debit                                                                                                                                                           -26,618
 4            Other                   Debit                                                                                                                                                           -10,331
 5            Guaranteed Loans,       N/A                                                                                                                                                             290,668
              gross-end of the
              year
     Section: E               Section Name: Components of TARP Direct Loans and Equity                 No Data: YES              Line Attributes: Dollars
                                            Investments, Gross - Current Year                                                  Rounding Method: User-Defined              Decimal: User-Defined


Line Status   Line Description         NB         CY-Capital Purchase     CY-AIG, Inc., Investment    CY-Targeted Investment    CY-Automotive Industry            CY-Consumer and          CY-Public-Private
                                                          Program                      Program                   Program         Financing Program                 Business Lending   Investment Program
                                                                                                                                                                        Initiative
 1            TARP loans and          Debit
              equity investments
              receivable, gross-
              beginning of year
 2            Disbursements           Debit
              (loans
              made/securities
              purchased)
 3            Repayments              Debit
 4            Losses                  Debit
 5            Capitalized interest    Debit
 6            Capitalized dividends Debit
 7            Other                   Debit
 8            TARP loans and           N/A
              equity investments
              receivable, gross-
              end of year

Line Status   Line Description         NB             CY-All Other TARP               CY-Total
                                                           Programs


                                                                                                     - 18 ­
                                                                                                                                                                               12/16/2013 11:07:33

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

 Other Data: 16             Components of Loans and Equity Investments                                                           Fiscal Year: 2013                Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                  Agency Notes:       Note 6
      Status: Complete                                                                           I = Inactive Line


  Tab: Other Data Info.
     Section: E               Section Name: Components of TARP Direct Loans and Equity                 No Data: YES              Line Attributes: Dollars
                                            Investments, Gross - Current Year                                                  Rounding Method: User-Defined             Decimal: User-Defined


Line Status   Line Description        NB              CY-All Other TARP               CY-Total
                                                           Programs
 1            TARP loans and          Debit
              equity investments
              receivable, gross-
              beginning of year
 2            Disbursements           Debit
              (loans
              made/securities
              purchased)
 3            Repayments              Debit
 4            Losses                  Debit
 5            Capitalized interest    Debit
 6            Capitalized dividends   Debit
 7            Other                   Debit
 8            TARP loans and          N/A
              equity investments
              receivable, gross-
              end of year
     Section: F               Section Name: Components of TARP Direct Loans and Equity                 No Data: YES              Line Attributes: Dollars
                                            Investments, Gross - Prior Year                                                    Rounding Method: User-Defined             Decimal: User-Defined


Line Status   Line Description        NB        PY-Capital Purchase       PY-AIG, Inc., Investment    PY-Targeted Investment    PY-Automotive Industry            PY-Consumer and         PY-Public-Private
                                                        Program                        Program                   Program         Financing Program                Business Lending   Investment Program
                                                                                                                                                                       Initiative
 1            TARP loans and          Debit
              equity investments
              receivable, gross-
              beginning of year
 2            Disbursements           Debit
              (loans
              made/securities
              purchased)
 3            Repayments              Debit
 4            Losses                  Debit



                                                                                                     - 19 ­
                                                                                                                                                                               12/16/2013 11:07:33

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

 Other Data: 16             Components of Loans and Equity Investments                                                           Fiscal Year: 2013                Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                  Agency Notes:       Note 6
      Status: Complete                                                                           I = Inactive Line


  Tab: Other Data Info.
     Section: F               Section Name: Components of TARP Direct Loans and Equity                 No Data: YES              Line Attributes: Dollars
                                            Investments, Gross - Prior Year                                                    Rounding Method: User-Defined             Decimal: User-Defined


Line Status   Line Description        NB        PY-Capital Purchase       PY-AIG, Inc., Investment    PY-Targeted Investment    PY-Automotive Industry            PY-Consumer and         PY-Public-Private
                                                        Program                        Program                   Program         Financing Program                Business Lending   Investment Program
                                                                                                                                                                       Initiative
 5            Capitalized interest    Debit
 6            Capitalized dividends Debit
 7            Other                   Debit
 8            TARP loans and          N/A
              equity investments
              receivable, gross-
              end of year

Line Status   Line Description        NB              PY-All Other TARP               PY-Total
                                                            Programs
 1            TARP loans and          Debit
              equity investments
              receivable, gross-
              beginning of year
 2            Disbursements           Debit
              (loans
              made/securities
              purchased)
 3            Repayments              Debit
 4            Losses                  Debit
 5            Capitalized interest    Debit
 6            Capitalized dividends   Debit
 7            Other                   Debit
 8            TARP loans and           N/A
              equity investments
              receivable, gross-
              end of year




                                                                                                     - 20 ­
                                                                                                                                                                                             12/16/2013 11:07:33

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

Other Data: 16              Components of Loans and Equity Investments                                                                  Fiscal Year: 2013                   Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                         Agency Notes:         Note 6
       Status: Complete                                                                            I = Inactive Line



    Tab: Other Text Data

       Section: A               Section Name: Components of Direct Loans Receivable, Gross ­
                                              Current Year

Line        Question                                                                                                    Answer
1           Provide details regarding the programs reported in Sections A and B that comprise amounts                  The All Other Loans Receivable column includes the Facilities Loan Program, the Perkins
            reported in the "all other Loans Receivable" column.                                                       Loan Program, and the TEACH Grant Program.
2           Provide a detailed description of the amounts reported in Sections A and B that comprose the               Amounts that comprise the "Other" line primarily consist of accrued interest, reduction of
            "Other" line.                                                                                              interest receivable due to interest capitalization (offset to the increase to principal reported on
                                                                                                                       line 5), and loan cancellations due to death, disability, and bankruptcy.
3           Provide details regarding the programs reported in Sections C and D that comprose the "Other"
            line in the "all other Guaranteed Loans" column.
4           Provide a detailed description of the amounts reported in Sections C and D that comprose the               Amounts that comprise the "Other" line consist of FFEL loans purchased by the Department.
            "Other" line.
5           Provide details regarding the programs reported in Sections E and F that comprise amounts
            reported in the "all other TARP Programs" column.

6           Provide a detailed description of the amounts reported in Sections E and F that comprise the
            "Other" line.




                                                                                                           - 21 ­
                                                                                                                                                            12/16/2013 11:07:33

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

 Other Data: 17           Federal Oil and Gas Resources                                                           Fiscal Year: 2013             Period: SEPTEMBER
       Entity: 9100       Department of Education                                                                     Agency Notes:    NA
      Status: Complete                                                                     I = Inactive Line


  Tab: Other Data Info.
     Section: A             Section Name: Asset Value for Oil and Gas Proved Resources ­         No Data: YES     Line Attributes: Dollars
                                          Offshore                                                              Rounding Method: User-Defined         Decimal: User-Defined


Line Status   Line Description     NB     2013 - SEPTEMBER       D
 1            Oil and Lease        N/A
              Condensate
 2            Natural Gas, Wet     N/A
              After Lease
              Separation
 3                                 N/A
 4                                 N/A
 5                                 N/A
     Section: B             Section Name: Asset Value for Oil and Gas Proved Reserves ­          No Data: YES     Line Attributes: Dollars
                                          Onshore                                                               Rounding Method: User-Defined         Decimal: User-Defined


Line Status   Line Description     NB     2013 - SEPTEMBER       D
 1            Oil and Lease        N/A
              Condensate
 2            Natural Gas, Wet     N/A
              After Lease
              Separation
 3                                 N/A
 4                                 N/A
 5                                 N/A




                                                                                               - 22 ­
                                                                                                                                                         12/16/2013 11:07:33

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

 Other Data: 17           Federal Oil and Gas Resources                                                         Fiscal Year: 2013             Period: SEPTEMBER
       Entity: 9100       Department of Education                                                                  Agency Notes:         NA
      Status: Complete                                                                     I = Inactive Line


  Tab: Other Data Info.
     Section: C             Section Name: Quantity of Oil and Gas Proved Reserves - Offshore     No Data: YES   Line Attributes: Units


Line Status   Line Description     NB       2013 - SEPTEMBER
 1            Oil and Lease        N/A
              Condensate
 2            Natural Gas, Wet     N/A
              After Lease
              Separation
 3                                 N/A
 4                                 N/A
 5                                 N/A

     Section: D             Section Name: Quantity of Oil and Gas Proved Reserves - Onshore      No Data: YES   Line Attributes: Units


Line Status   Line Description     NB       2013 - SEPTEMBER
 1            Oil and Lease        N/A
              Condensate
 2            Natural Gas, Wet     N/A
              After Lease
              Separation
 3                                 N/A
 4                                 N/A
 5                                 N/A




                                                                                               - 23 ­
                                                                                                                                                                12/16/2013 11:07:33

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

 Other Data: 17           Federal Oil and Gas Resources                                                               Fiscal Year: 2013             Period: SEPTEMBER
       Entity: 9100       Department of Education                                                                         Agency Notes:    NA
      Status: Complete                                                                         I = Inactive Line


  Tab: Other Data Info.
     Section: E             Section Name: Average of the Regional Average Prices for Oil and         No Data: YES     Line Attributes: Dollars
                                          Gas Proved Reserves - Offshore                                            Rounding Method: User-Defined         Decimal: User-Defined


Line Status   Line Description     NB      2013 - SEPTEMBER       D
 1            Oil and Lease        N/A
              Condensate
 2            Natural Gas, Wet     N/A
              After Lease
              Separation
 3                                 N/A
 4                                 N/A
 5                                 N/A
     Section: F             Section Name: Average of the Regional Average Prices for Oil and         No Data: YES     Line Attributes: Dollars
                                          Gas Proved Reserves - Onshore                                             Rounding Method: User-Defined         Decimal: User-Defined


Line Status   Line Description     NB      2013 - SEPTEMBER       D
 1            Oil and Lease        N/A
              Condensate
 2            Natural Gas, Wet     N/A
              After Lease
              Separation
 3                                 N/A
 4                                 N/A
 5                                 N/A




                                                                                                   - 24 ­
                                                                                                                                                                         12/16/2013 11:07:33

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

 Other Data: 17               Federal Oil and Gas Resources                                                                        Fiscal Year: 2013          Period: SEPTEMBER
         Entity: 9100         Department of Education                                                                                 Agency Notes:      NA
        Status: Complete                                                                              I = Inactive Line


     Tab: Other Data Info.
      Section: G                 Section Name: Average Royalty Rate for Oil and Gas Proved                   No Data: YES          Line Attributes: Percent
                                               Reserves - Offshore


Line Status      Line Description         NB       2013 - SEPTEMBER
 1               Oil and Lease            N/A
                 Condensate
 2               Natural Gas, Wet         N/A
                 After Lease
                 Separation
 3                                        N/A
 4                                        N/A
 5                                        N/A
      Section: H                 Section Name: Average Royalty Rate for Oil and Gas Proved                   No Data: YES          Line Attributes: Percent
                                               Reserves - Onshore


Line Status      Line Description         NB       2013 - SEPTEMBER
 1               Oil and Lease            N/A
                 Condensate
 2               Natural Gas, Wet         N/A
                 After Lease
                 Separation
 3                                        N/A
 4                                        N/A
 5                                        N/A

     Tab: Other Text Data

        Section: A                  Section Name: Asset Value for Oil and Gas Proved Resources ­               No Data: YES
                                                  Offshore

 Line         Question                                                                                                    Answer
 1            Provide a concise statement explaining the nature and valuation (for example, measurement
              method, significant assumptions, etc.) of federal oil and gas resources.
 2            Describe any significant changes in the estimation methodology, including the underlying
              assumptions.
 3            Provide any other relevant information pertaining to this note. At a minumum, describe briefly the
              significant accounting policies pertaining to this note.




                                                                                                           - 25 ­
                                                                                                                                                                     12/16/2013 11:07:33

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

Other Data: 17              Federal Oil and Gas Resources                                                                        Fiscal Year: 2013        Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                 Agency Notes:    NA
       Status: Complete                                                                             I = Inactive Line



    Tab: Other Text Data

       Section: B               Section Name: Asset Value for Oil and Gas Proved Reserves ­                  No Data: YES
                                              Onshore

Line        Question                                                                                                    Answer
1           Provide a concise statement explaining the nature and valuation (for example, measurement
            method, significant assumptions, etc.) of federal oil and gas resources.
2           Describe any significant changes in the estimation methodology, including the underlying
            assumptions.
3           Provide any other relevant information pertaining to this note. At a minumum, describe briefly the
            significant accounting policies pertaining to this note.
    Tab: Other Text Data

       Section: C               Section Name: Quantity of Oil and Gas Proved Reserves - Offshore             No Data: YES

Line        Question                                                                                                    Answer
1           Provide a concise statement explaining the nature and valuation (for example, measurement
            method, significant assumptions, etc.) of federal oil and gas resources.
2           Describe any significant changes in the estimation methodology, including the underlying
            assumptions.
3           Provide any other relevant information pertaining to this note. At a minumum, describe briefly the
            significant accounting policies pertaining to this note.
    Tab: Other Text Data

       Section: D               Section Name: Quantity of Oil and Gas Proved Reserves - Onshore              No Data: YES

Line        Question                                                                                                    Answer
1           Provide a concise statement explaining the nature and valuation (for example, measurement
            method, significant assumptions, etc.) of federal oil and gas resources.
2           Describe any significant changes in the estimation methodology, including the underlying
            assumptions.
3           Provide any other relevant information pertaining to this note. At a minumum, describe briefly the
            significant accounting policies pertaining to this note.
    Tab: Other Text Data

       Section: E               Section Name: Average of the Regional Average Prices for Oil and             No Data: YES
                                              Gas Proved Reserves - Offshore

Line        Question                                                                                                    Answer
1           Provide a concise statement explaining the nature and valuation (for example, measurement
            method, significant assumptions, etc.) of federal oil and gas resources.
2           Describe any significant changes in the estimation methodology, including the underlying



                                                                                                         - 26 ­
                                                                                                                                                                     12/16/2013 11:07:33

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

Other Data: 17              Federal Oil and Gas Resources                                                                        Fiscal Year: 2013        Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                 Agency Notes:    NA
       Status: Complete                                                                             I = Inactive Line



    Tab: Other Text Data

       Section: E               Section Name: Average of the Regional Average Prices for Oil and             No Data: YES
                                              Gas Proved Reserves - Offshore

Line        Question                                                                                                    Answer
            assumptions.
3           Provide any other relevant information pertaining to this note. At a minumum, describe briefly the
            significant accounting policies pertaining to this note.
    Tab: Other Text Data

       Section: F               Section Name: Average of the Regional Average Prices for Oil and             No Data: YES
                                              Gas Proved Reserves - Onshore

Line        Question                                                                                                    Answer
1           Provide a concise statement explaining the nature and valuation (for example, measurement
            method, significant assumptions, etc.) of federal oil and gas resources.
2           Describe any significant changes in the estimation methodology, including the underlying
            assumptions.
3           Provide any other relevant information pertaining to this note. At a minumum, describe briefly the
            significant accounting policies pertaining to this note.
    Tab: Other Text Data

       Section: G               Section Name: Average Royalty Rate for Oil and Gas Proved                    No Data: YES
                                              Reserves - Offshore

Line        Question                                                                                                    Answer
1           Provide a concise statement explaining the nature and valuation (for example, measurement
            method, significant assumptions, etc.) of federal oil and gas resources.
2           Describe any significant changes in the estimation methodology, including the underlying
            assumptions.
3           Provide any other relevant information pertaining to this note. At a minumum, describe briefly the
            significant accounting policies pertaining to this note.
    Tab: Other Text Data

       Section: H               Section Name: Average Royalty Rate for Oil and Gas Proved                    No Data: YES
                                              Reserves - Onshore

Line        Question                                                                                                    Answer
1           Provide a concise statement explaining the nature and valuation (for example, measurement
            method, significant assumptions, etc.) of federal oil and gas resources.
2           Describe any significant changes in the estimation methodology, including the underlying
            assumptions.



                                                                                                         - 27 ­
                                                                                                                                                                     12/16/2013 11:07:33

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

Other Data: 17              Federal Oil and Gas Resources                                                                        Fiscal Year: 2013        Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                 Agency Notes:    NA
       Status: Complete                                                                             I = Inactive Line



 Tab: Other Text Data

       Section: H               Section Name: Average Royalty Rate for Oil and Gas Proved                    No Data: YES
                                              Reserves - Onshore

Line        Question                                                                                                    Answer
3           Provide any other relevant information pertaining to this note. At a minumum, describe briefly the
            significant accounting policies pertaining to this note.




                                                                                                         - 28 ­
U.S. Department of Education
FY 2013 Closing Package Financial Statements
Additional Note No. 1- Closing Package Financial Statement Requirements
 

The Budget and Accounting Procedures Act of 1950 allows the Secretary of the Treasury to
stipulate the format and requirements of executive agencies to furnish financial and operational
information to the President and the Congress to comply with the Government Management Reform
Act of 1994 (GMRA) (Pub. L. No. 103-356), which requires the Secretary of the Treasury to
prepare and submit annual audited financial statements of the executive branch. The Secretary of
the Treasury developed guidance in the U.S. Department of the Treasury's Treasury Financial
Manual (TFM) Volume I, Part 2, Chapter 4700 to provide agencies with instructions to meet the
requirements of GMRA. The TFM Chapter 4700 requires agencies to:

    1.	 Reclassify all line items and amounts on the comparative audited consolidated, department-
        level balance sheets, statement of net cost/income statement, statement of changes in net
        position, statement of social insurance, statements of changes in social insurance amounts,
        and statement or note on custodial activity, if applicable, to the closing package financial
        statements;

    2.	 List closing package financial statement line item amounts identified as Federal by trading
        partner and amount;

    3.	 Report notes information that is based on the Reclassified Balance Sheet line items and other
        notes information required to meet FASAB standards; and

    4.	 Report other data information that is not based on the Reclassified Balance Sheet line items
        and other data noted information required to meet FASAB standards.
 


Summary of Significant Accounting Policies
Reporting Entity and Programs
The U.S. Department of Education (the Department), a cabinet-level agency of the Executive
Branch of the U.S. Government, was established by Congress under the Department of
Education Organization Act (Public Law 96-88), which became effective on May 4, 1980. The
Department is responsible, through the execution of its congressionally enacted budget, for
administering direct loans, guaranteed loans, and grant programs, as discussed below.
The Department administers the William D. Ford Federal Direct Loan (Direct Loan) Program,
the Federal Family Education Loan (FFEL) Program, the Federal Pell Grant (Pell Grant)
Program, and the campus-based student aid programs to help students and their parents
finance the costs of postsecondary education.
The Direct Loan Program, added to the Higher Education Act of 1965 (HEA) in 1993 by the
Student Loan Reform Act of 1993, authorizes the Department to make loans directly to eligible
undergraduate and graduate students and their parents through participating schools. Under
this program, the loans are made to individuals who meet eligibility criteria established by
statute and attend eligible institutions of higher education—public or private two- and four-year
institutions, graduate schools, and vocational training schools. Student borrowers who
demonstrate financial need also may receive federal interest subsidies while the students are in
school or in a deferment period.
The FFEL Program, authorized by the HEA, operates through state and private nonprofit
guaranty agencies to provide loan guarantees and interest subsidies on loans made by private
lenders to eligible students. The SAFRA Act, formerly the Student Aid and Fiscal Responsibility
Act, which was included in the Health Care and Education Reconciliation Act of 2010 (HCERA)
and became effective July 1, 2010, provided that no new FFEL loans would be made after
June 30, 2010.
The Ensuring Continued Access to Student Loans Act of 2008 (ECASLA) authorized the
Secretary of Education (Secretary) to purchase or enter into forward commitments to purchase
FFEL loans. The Department implemented three activities under this temporary loan purchase
authority. These activities are: (1) loan purchase commitments; (2) loan participation purchases;
and (3) an Asset-Backed Commercial Paper (ABCP) Conduit.
The Federal Pell Grant Program provides need-based grants to low-income undergraduate and
certain post baccalaureate students to promote access to postsecondary education.
The Teacher Education Assistance for College and Higher Education (TEACH) Grant Program
was implemented beginning July 1, 2008. This program, added to the HEA by the College Cost
Reduction and Access Act, 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.
Additionally, the Department administers numerous other grant programs and Facilities Loan
Programs. Grant programs include grants to state and local entities for elementary and
secondary education; special education and rehabilitative services grants; grants to support
institutions of higher education; educational research and improvement grants; grants to assist
low-income and first-generation college students to prepare for and transition into college;
grants to improve our global awareness and competitiveness; and fellowships for college and
graduate students. Through the Facilities Loan Programs, the Department administers low-
interest loans to institutions of higher education for the construction and renovation of their
facilities.


                                                                                                    1
 


In addition to student loans and grants, the Department supports state and local education
agencies through discretionary grants under a variety of authorizing legislation, which are
awarded using a competitive process, and formula (mandatory) grants. Among the largest K-12
discretionary grants are The Federal TRIO Program (TRIO), Race to the Top, and Teacher
Incentive Fund. Among the largest formula grants are Title I, Elementary and Secondary
Education Act of 1965, as amended, (Title I) Grants to Local Educational Agencies and
Individuals with Disabilities Education Act (IDEA) grants.
The American Recovery and Reinvestment Act of 2009 (Recovery Act), enacted on February
17, 2009, as Public Law 111-5, provided funding to the Department for improving schools,
raising students’ achievement, driving reform, and producing better results for children and
young people for the long-term health of the nation.
Public Law 111-226 (Education Jobs Fund), enacted on August 10, 2010, provided funding to
the Department for saving and creating education jobs.
As of fiscal year 2013, Recovery Act and Education Jobs Fund programs are winding down and
have 4 percent and less than 1 percent remaining, respectively, to be expended as of
September 30, 2013.
Reporting Groups
The Department has established five reporting groups that administer loan and grant programs.
They are:
       Federal Student Aid (FSA)
       Office of Elementary and Secondary Education (OESE)
       American Recovery and Reinvestment Act and Education Jobs Fund (RA/JF)
       Office of Special Education and Rehabilitative Services (OSERS)
       Other
The “Other” reporting group consists of the 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 Innovation and Improvement (OII), Office of
Management, Office for Civil Rights (OCR), and Hurricane Education Recovery (HR) activities.

Basis of Accounting and Presentation
These financial statements have been prepared to report the financial position, net cost of
operations, and changes in net position of the Department. The financial statements were
prepared from the books and records of the Department, in accordance with accounting
principles generally accepted in the United States of America for federal entities, issued by the
Federal Accounting Standards Advisory Board, and the Office of Management and Budget
(OMB) Circular No. A-136, Financial Reporting Requirements, as revised..
The Department’s financial statements should be read with the realization that they are for a
component of the U.S. Government, a sovereign entity. One implication of this is that the
liabilities cannot be liquidated without legislation providing resources and legal authority to do
so.
The accounting structure of federal agencies is designed to reflect both accrual and budgetary
accounting transactions. Under the accrual method of accounting, revenues are recognized
when earned, and expenses are recognized when a liability is incurred, without regard to receipt


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or payment of cash. Budgetary accounting facilitates compliance with legal constraints and
controls over the use of federal funds.
Intradepartmental transactions and balances have been eliminated from the consolidated
financial statements.
Credit Reform Accounting: Federal Credit Reform
The Federal Credit Reform Act of 1990 (CRA) became effective on October 1, 1991. Its purpose
is to measure the cost of Federal credit programs and to place the cost of each credit program
on a basis equivalent with other Federal spending, i.e., calculate the cost of Direct Loan
Programs evenly with the cost of Guaranteed Loan Programs. Under CRA, subsidy cost is
estimated using the net present value of future cash flows to, and from, the Department.
A loan guarantee is any guarantee, insurance, or other pledge with respect to the payment of all
or part of the principal or interest on any debt obligation of a non-Federal borrower to a non-
Federal lender. A direct loan is any debt instrument issued to the public by the federal
government. CRA establishes the use of Program, Financing, and General Fund Receipt
Accounts for loan guarantees committed and direct loans obligated after September 30, 1991. It
also establishes Liquidating Accounts for activity relating to any loan guarantees committed or
direct loans obligated before October 1, 1991.
The Program Account is a budget account that receives and obligates appropriations to cover
the subsidy cost of a direct loan or loan guarantee and disburses the subsidy cost to the
Financing Account. A Program Account also receives appropriations for administrative
expenses. The Financing Account is a non-budgetary account that records all of the cash flows
resulting from CRA direct loans or loan guarantees. It disburses loans, collects repayments and
fees, pays claims, borrows from U.S. Treasury, earns and pays interest, and receives the
subsidy cost payment from the Program Account. The General Fund Receipt Account is a
budget account used by Treasury for the receipt of amounts paid from the Financing Account
when there are negative subsidies for original cost estimates or downward re-estimates of prior
subsidy costs.
Use of Estimates
The preparation of the financial statements in accordance with accounting principles generally
accepted in the United States of America requires management to make assumptions and
estimates that directly affect the amounts reported in the financial statements. Actual results
may differ from those estimates.
The Federal Credit Reform Act of 1990 (Credit Reform Act) underlies the proprietary and
budgetary accounting treatment of direct and guaranteed loans. The long-term cost to the
government for direct loans or 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 (FY) 1992 are estimated at the net present value of projected
lifetime costs in the year the loan is obligated. Subsidy costs are re-estimated annually.
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 estimates and the amounts
recorded.

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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 cash flow projection model to calculate subsidy estimates for the Direct
Loan, FFEL, and TEACH Programs. Each year, the Department re-evaluates the estimation
methods for changing conditions. In developing assumptions for future interest rates, the
Department uses a probabilistic technique that estimates future interest rates and weighs each
one by the assumed probability of each scenario occurring. For each program, cash flows are
projected over the life of the loans, aggregated by loan type, cohort year, and risk category. The
loan’s cohort year represents the year a loan was obligated or guaranteed, regardless of the
timing of disbursements. Risk categories include two-year colleges, graduate schools,
proprietary (for-profit) schools, freshmen and sophomores at four-year colleges, as well as
juniors and seniors at four-year colleges.
Estimates reflected in these financial statements were prepared using assumptions developed
for the FY 2013 Mid-Session Review, a governmentwide exercise required annually by OMB.
These estimates are based on the most current information available to the Department at the
time the financial statements were prepared. Assumptions and their impact are updated after
the Mid-Session Review to account for significant subsequent changes in activity. Management
has a process to review these estimates in the context of subsequent changes in activity and
assumptions, and to reflect the impact of changes, as appropriate.
The Department recognizes that cash flow projections and the sensitivity of changes in
assumptions can have a significant impact on estimates. Management has attempted to
mitigate fluctuations in the estimates by using trend analysis to project future cash flows.
Changes in assumptions could significantly affect the amounts reflected in these financial
statements. For example, a minimal change in the projected long-term interest rate charged to
borrowers could change the current subsidy re-estimate by a significant amount.
Entity and Non-Entity Assets
Assets are classified as either entity or non-entity assets. Entity assets are those that the
Department has authority to use for its operations. Non-entity assets are those held by the
Department but not available for use in its operations. The Department combines its entity and
non-entity assets on the Balance Sheet and discloses its non-entity assets in the notes.
Fund Balance with Treasury
The Fund Balance with Treasury includes general, financing, revolving, trust, special, and other
funds in the Department’s accounts with Treasury available to pay current liabilities and finance
authorized purchases, as well as funds restricted until future appropriations are received.
Treasury processes cash receipts and cash disbursements for the Department. The
Department’s records are reconciled with those of the Treasury.
A portion of the general funds is provided in advance by multiyear appropriations for obligations
anticipated during the current and future fiscal years. Revolving funds conduct continuing cycles
of business-like activity and do not require annual appropriations. Their fund balance is derived
from borrowings, as well as collections from the public and other federal agencies. Other funds,
which are non-budgetary, primarily consist of deposit and receipt funds and clearing accounts.
Non-budgetary Credit Reform Financing Accounts have many similarities to revolving funds.


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Available unobligated balances represent amounts that are apportioned for obligation in the
current fiscal year. Unavailable unobligated balances represent amounts that are not
apportioned for obligation during the current fiscal year and expired appropriations no longer
available to incur new obligations. Obligated balances not yet disbursed include undelivered
orders and unpaid expended authority.
Accounts Receivable
Accounts Receivable are amounts due to the Department from the public and other federal
agencies. Receivables from the public result from overpayments to recipients of grants and
other financial assistance programs, and disputed costs resulting from audits of educational
assistance programs. Amounts due from federal agencies result from reimbursable agreements
entered into by the Department with other agencies to provide various goods and services.
Accounts receivable are reduced to net realizable value by an allowance for uncollectible
amounts. The estimate of an allowance for loss on uncollectible accounts is based on the
Department’s experience in the collection of receivables and an analysis of the outstanding
balances.
Cash and Other Monetary Assets
Cash and Other Monetary Assets consist of guaranty agency reserves that represent the federal
government’s interest in the net Federal Fund assets of state and nonprofit FFEL Program
guaranty agencies. Guaranty agency Federal Fund reserves are classified as non-entity assets
with the public and are offset by a corresponding liability due to Treasury. 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.
Sections 422A and 422B of the HEA required FFEL guaranty agencies to establish a Federal
Student Loan Reserve Fund (Federal Fund) and an Operating Fund. The Federal Fund and the
non-liquid assets developed or purchased by a guaranty agency, in whole or in part with federal
funds, are the property of the United States and reflected in the Budget of the United States
Government. However, such ownership by the federal government is independent of the actual
control of the assets.
The Department disburses funds to a guaranty agency. A guaranty agency, through its Federal
Fund, pays lender claims and pays default aversion fees into its own Operating Fund. The
Operating Fund is the property of the guaranty agency and is used by the guaranty agency to
fulfill responsibilities that include repaying money borrowed from the Federal Fund and
performing default aversion and collection activities. Payments made to the Department from
guaranty agency federal funds through a statutory recall or agency closures represent capital
transfers and are credited to the Department’s Fund Balance with Treasury account.
Credit Program Receivables, Net and Liabilities for Loan Guarantees
The financial statements reflect the Department’s estimate of the long-term cost of direct and
guaranteed loans in accordance with the Credit Reform Act. Loans and interest receivable are
valued at their gross amounts less an allowance for the present value of amounts not expected
to be recovered and thus having to be subsidized—called “allowance for subsidy.” The
difference between the gross amount and the allowance for subsidy is the present value of the
cash flows to and from the Department that are expected from the receivables over their
projected lives. Similarly, liabilities for loan guarantees are valued at the present value of the
cash outflows from the Department less the present value of related inflows. The estimated
present value of net long-term cash outflows of the Department for subsidized costs is net of


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recoveries, interest supplements, and offsetting fees. The Department also values all pre-1992
loans and loan guarantees at their net present values.
Credit program receivables for activities under the temporary loan purchase authority include
the present value of future cash flows related to purchased loans. Subsidy is transferred, which
may be prior to purchasing loans, and is recognized as subsidy expense in the Statement of Net
Cost. The cash flows of these authorities also include inflows and outflows associated with the
underlying or purchased loans and other related activities, including any positive or negative
subsidy transfers.
Components of subsidy costs for loans and guarantees include defaults (net of recoveries);
contractual payments to third-party private loan collectors who receive a set percentage of
amounts collected; and, as an offset, origination and other fees collected. For direct loans, the
difference between interest rates incurred by the Department on its borrowings from Treasury
and interest rates charged to particular borrowers is also subsidized (or may provide an offset to
subsidy if the Department’s rate is less). The corresponding interest subsidy in loan guarantee
programs is the payment of interest supplements to third-party lenders in order to pay down the
interest rates on loans made by those lenders. Subsidy costs are recognized when direct loans
or guaranteed loans are disbursed to borrowers and re-estimated each year.
Non-Budgetary Credit Reform Financing Accounts
Actual cash flows to and from the Government for direct loan and loan guarantee programs are
recorded in separate Credit Reform Financing Accounts within the Treasury. These accounts
borrow funds from Treasury, make direct loan disbursements, pay claims on guaranteed loans,
collect principal and interest from borrowers, earn interest from Treasury on any uninvested
funds, and transfer excess subsidy to Treasury’s General Fund Receipt Account. Appropriations
for new subsidy and subsidy re-estimates are received in program accounts and transferred to
Non-Budgetary Credit Reform Financing Accounts.
Property and Equipment, Net
The Department capitalizes single items of property and equipment with a cost of $50,000 or
more that have an estimated useful life of two years or more. Additionally, 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 of at least two years. Property and equipment are depreciated over their estimated useful
lives using the straight-line method of depreciation. Internal Use Software meeting the above
cost and useful life criteria is also capitalized. Internal Use Software is either purchased off the
shelf, internally developed, or contractor developed solely to meet the Department’s needs.
The Department adopted the following useful lives for its major classes of depreciable property
and equipment:
                         Depreciable Property and Equipment
                                                      (In Years)

                                        Major Class                                    Useful Life
     Information Technology, Internal Use Software, and Telecommunications Equipment       3
     Furniture and Fixtures                                                                5




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Other Assets
The Department’s Other Intragovernmental Assets primarily consist of advance payments to
federal agencies as part of interagency agreements for various goods and services. The
Department’s other assets (with the public) consist of payments made to grant recipients in
advance of their expenditures and in-process disbursements of interest benefits and special
allowance payments for the FFEL Program.
Liabilities
Liabilities represent actual and estimated amounts to be paid as a result of transactions or
events that have already occurred. However, no liabilities can be paid by the Department
without budget authority. Liabilities for which an appropriation has not been enacted are
classified as liabilities not covered by budgetary resources, and there is no certainty that an
appropriation will be enacted. The government, acting in its sovereign capacity, can abrogate
liabilities that arise from activities other than contracts. FFEL Program and Direct Loan Program
liabilities are entitlements covered by permanent indefinite budget authority.
Accounts Payable
Accounts Payable include amounts owed by the Department for goods and services received
from other entities and scheduled payments transmitted but not yet processed. The
Department’s accounts payable primarily consist of in-process grant and loan disbursements to
the public.
Debt
The Department borrows from Treasury to provide funding for the Direct Loan, FFEL, and
TEACH Programs. The liability to Treasury from borrowings represents unpaid principal at year-
end. The Department repays the principal based on available fund balances. Interest on the
debt is calculated at fiscal year-end using rates set by Treasury. These are rates generally fixed
based on the rate for 10-year Treasury securities. In addition, the Federal Financing Bank (FFB)
holds bonds issued by a designated bonding authority, on behalf of the Department, for the
HBCU Capital Financing Program. The Department reports the corresponding liability for full
payment of principal and accrued interest on bonds as a payable to the FFB.
Accrued Grant Liability
Disbursements of grant funds are recognized as expenses at the time of disbursement. Some
grant recipients incur allowable expenditures as of the end of an accounting period but have not
yet been reimbursed by the agency. The Department will accrue a liability for these allowable
expenditures incurred that have not yet been reimbursed. The amount is estimated using
statistical sampling as well as information on recent grant expenditures and unliquidated
balances.
Net Position
Net position consists of unexpended appropriations and cumulative results of operations.
Unexpended appropriations include undelivered orders and unobligated balances, except for
federal credit financing and liquidating funds, and trust funds. Cumulative results of operations
represent the net difference since inception between (1) expenses and (2) revenues and
financing sources.




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Personnel Compensation and Other Employee Benefits
Annual, Sick, and Other Leave. The liability for annual leave, compensatory time off, and other
vested leave is accrued when earned and reduced when taken. Each year, the accrued annual
leave account balance is adjusted to reflect current pay rates. Sick leave and other types of
non-vested leave are expensed as taken. Annual leave earned but not taken, within established
limits, is funded from future financing sources.
Retirement Plans and Other Retirement Benefits. Employees participate in either the Civil
Service Retirement System (CSRS), a defined benefit plan, or the Federal Employees
Retirement System (FERS), a defined benefit and contribution plan. For CSRS employees, the
Department contributes a fixed percentage of pay.
FERS consists of Social Security, a basic annuity plan, and the Thrift Savings Plan. The
Department and the employee contribute to Social Security and the basic annuity plan at rates
prescribed by law. In addition, the Department is required to contribute to the Thrift Savings
Plan a minimum of 1 percent per year of the basic pay of employees covered by this system,
match voluntary employee contributions up to 3 percent of the employee’s basic pay, and match
one-half of contributions between 3 percent and 5 percent of the employee’s basic pay. For
FERS employees, the Department also contributes the employer’s share of Medicare.
Contributions for CSRS, FERS, and other retirement benefits are insufficient to fund the
programs fully and are subsidized by the Office of Personnel Management (OPM). The
Department imputes its share of the OPM subsidy, using cost factors provided by OPM, and
reports the full cost of the programs related to its employees.
Federal Employees’ Compensation Act. The Federal Employees’ Compensation Act (FECA)
provides income and medical cost protection to covered federal civilian employees injured on
the job, employees who have incurred work-related occupational diseases, and beneficiaries of
employees whose deaths are attributable to job-related injuries or occupational diseases. The
FECA Program is administered by the U.S. Department of Labor (DOL), which pays valid claims
and subsequently seeks reimbursement from the Department for these paid claims.
The FECA liability consists of two components. The first component is based on actual claims
paid and recognized by the Department as a liability. Generally, the Department reimburses
DOL within two to three years once funds are appropriated. The second component is the
estimated liability for future benefit payments based on unforeseen events, such as death,
disability, medical, and miscellaneous costs as determined by DOL annually.
Intragovernmental Transactions
The Department’s financial activities interact with and are dependent upon the financial activities
of the centralized management functions of the federal government. Due to financial regulation
and management control by OMB and Treasury, operations may not be conducted and financial
positions may not be reported as they would if the Department were a separate, unrelated
entity.
Reclassifications
Certain reclassifications were made to the FY 2012 financial statements and notes to conform to
the current year presentation. These changes had no effect on total assets, liabilities, net
position, or net cost of operations. During FY 2013, as required by Treasury and Departmental
guidance, excess collections from pre-1992 FFEL loan guarantees, the College Housing Loan
program, and the Higher Education Facilities Loan Program, which are payable to Treasury, are
to be reported as non-current liabilities not covered by budgetary resources. This reclassification
has resulted in a $3 billion reduction of the FY 2012 reported balance of Intragovernmental

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Accounts Payable and a corresponding increase in the FY 2012 reported Other Liabilities
balance. In accordance with Treasury guidance on capital transfer accounting, excess
collections from pre-1992 FFEL loan guarantees, the College Housing Loan Program, and the
Higher Education Facilities Loan Program, which are payable to Treasury, but that have not yet
been transferred, should be reported on Other Financing Sources on the Statement of Changes
in Net Position, Transfers-Out was reduced by $22 million while Negative Subsidy Transfers,
Downward Subsidy Re-Estimates, and Other was increased by $22 million.
Subsequent Events
The financial statements, notes, and required supplementary information do not reflect the
effects of the subsequent event described below.
ABCP Conduit
The asset-backed commercial paper vehicle (ABCP Conduit) closes in the second quarter of
2014. Following Departmental policy that costs of the ABCP Conduit will be re-estimated after
the program closes. A recovery of prior year obligations and the cancellation of borrowing
authority in the amount of approximately $71 billion will occur after the final re-estimate is
completed.




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