oversight

U.S. Department of Education - Fiscal Years 2014 and 2013 Closing Package Financial Statements

Published by the Department of Education, Office of Inspector General on 2014-11-17.

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

                         UNITED STATES DEPARTMENT OF EDUCATION
                                        OFFICE OF INSPECTOR GENERAL




November 17, 2014


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 REPORTS
             Fiscal Years 2014 and 2013 Closing Package Financial Statements
             U.S. Department of Education
             ED-OIG/A17O0003

Attached are the subject final reports on the results of the audit of the closing package financial
statements of the U.S. Department of Education for fiscal years 2014 and 2013. The reports
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 reports 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 audits.
Should you have any questions concerning the report, please contact me or Greg Spencer at
(202) 245-6949 or (202) 245-6015, respectively.

Attachment

Electronic Distribution List:
Tim Soltis, OCFO
Gary Wood, OCFO




                               400 MARYLAND AVENUE, S.W., WASHINGTON, DC 20202-1510

               Promoting the efficiency, effectiveness, and integrity of the Department’s programs and operations.
                                                                      CliftonLarsonAllen LLP

                                                                      www.cliftonlarsonallen.com




                         INDEPENDENT AUDITORS’ REPORT
                    ON CLOSING PACKAGE FINANCIAL STATEMENTS


Inspector General
United States Department of Education

Secretary
United States Department of Education

Report on the Closing Package Financial Statements

We have audited the accompanying Closing Package Financial Statement Report (herein
referred to as the closing package financial statements) of the United States Department of
Education (the Department), which comprise:
    • the Closing Package Financial Statement Report – Balance Sheet as of September 30,
        2014 and 2013
    • 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”)
    • the accompanying Additional Note No. 1
    • the accompanying Trading Partner Summary Note Report – Balance Sheet as of
        September 30, 2014 and 2013
    • the related Trading Partner Summary Note Report – Statement of Net Cost and
        Statement of Changes in Net Position for the years then ended

Management’s Responsibility for the Closing Package Financial Statements

The Department’s management is responsible for the preparation and fair presentation of these
closing package financial statements in accordance with accounting principles generally
accepted in the United States of America (U.S.) and 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 audits. We conducted our audits in accordance with auditing standards generally
accepted in the U.S.; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and Office of
Management and Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial
Statements (OMB Bulletin 14-02). Those standards and OMB Bulletin 14-02 require that we
plan and perform the audit to obtain reasonable assurance about whether the closing package
financial statements are free from material misstatement.
                    INDEPENDENT AUDITORS’ REPORT ON
             CLOSING PACKAGE FINANCIAL STATEMENTS (Continued)

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 accounting 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 audit 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 United States Department of Education as of
September 30, 2014 and 2013, and its net costs and changes in net position for the years then
ended, in accordance 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 United States Department of the Treasury’s Treasury Financial Manual
Volume I, Part 2, Chapter 4700 (TFM Chapter 4700) for the purpose of providing financial
information to the United States Department of the Treasury and the U.S. Government
Accountability Office (GAO) 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 consolidated balance
sheets of the Department as of September 30, 2014 and 2013, and the related consolidated
statements of net costs and changes in net position, and combined 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

Opinion on the General Purpose Financial Statements
We have audited, in accordance with auditing standards generally accepted in the U.S.; the
standards applicable to financial audits contained in Government Auditing Standards; and OMB
Bulletin 14-02, the general purpose financial statements of the United States Department of
Education as of September 30, 2014 and 2013, and our report thereon, dated November 14,
2014, expressed an unmodified opinion on those financial statements.

Required Supplementary Information and Required Supplementary Stewardship Information
Accounting principles generally accepted in the U.S. issued by the Federal Accounting
Standards Advisory Board (FASAB) require that the information in Other Data Report No. 8,
except for the information in the Other Text Data and the information entitled “Threshold” (which
are discussed below), be presented to supplement the financial statements. Such information,
although not a part of the financial statements, is required by FASAB, which considers it to be
                    INDEPENDENT AUDITORS’ REPORT ON
             CLOSING PACKAGE FINANCIAL STATEMENTS (Continued)

an essential part of financial reporting for placing the financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the
Required Supplementary Information and Required Supplementary Stewardship 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 closing package financial
statements, and other knowledge we obtained during our audit of the closing package financial
statements. We do not express an opinion or provide any assurance on this information
because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.

The Department’s management has omitted Management’s Discussion and Analysis and the
combining Schedule of Budgetary Resources that accounting principles generally accepted in
the U.S. issued by FASAB require to be presented to supplement the financial statements. Such
missing information, although not a part of the closing package financial statements, is required
by FASAB 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 closing package financial
statements as a whole. The information included in the Other Data Report Nos. 15 and 16; the
information in the section entitled Other Text Data of Other Data Report No. 8; and the
information in the section entitled “Threshold” in Other Data Report No. 8; the information in the
sections entitled “Threshold” in FR Notes Report Nos. 4A, 8, 11, 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. This information has not been subjected to the auditing
procedures applied in the audit of the closing package financial statements and accordingly, we
do not express an opinion or provide any assurance on it.

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

This report is intended solely for the information and use of Department’s management, the
United States Department of the Treasury, OMB, and GAO 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.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards and OMB Bulletin 14-02, we have also
issued a report dated November 14, 2014 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, contracts, and grant agreements 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 and OMB Bulletin 14-02
in considering the Department’s internal control and compliance, and should be read in
                           INDEPENDENT AUDITORS’ REPORT ON
                    CLOSING PACKAGE FINANCIAL STATEMENTS (Continued)

conjunction with this report in considering the results of our audit of the closing package
financial statements.

Our audit of the general purpose financial statements of the Department, as of and for the year
ended September 30, 2014, disclosed one significant deficiency in internal control over financial
reporting and one instance of noncompliance, described below, that are required to be reported
in accordance with Government Auditing Standards and OMB Bulletin No. 14-02.

            Significant deficiency: Department and Federal Student Aid Management
            Need to Mitigate Persistent Information Technology Control Deficiencies

            Due to the unique requirements of the Department’s grant, loan and
            administrative business activities, the Department manages its general support
            system and core financial management system and oversees a large portfolio of
            Federal Student Aid (FSA) or contractor owned information systems. The third
            party servicers who manage FSA’s general support systems and contractor
            owned and contractor operated financial systems are monitored by FSA
            management through the use of Service Level Agreements and third party
            independent reviews. We continued to identify control deficiencies in the areas of
            security management, personnel security, access controls, and configuration
            management across these systems. These deficiencies can increase the risk of
            unauthorized access to the Department’s systems used to capture, process, and
            report financial transactions and balances, affecting the reliability and security of
            the data and information.

            Noncompliance: Noncompliance with the timing requirement of Title 31 United
            States Code (U.S.C.) Section 3716(c)(6)

            Title 31 U.S.C. Section 3716(c)(6) states that any Federal agency that is owed by
            a person a past due, legally enforceable nontax debt that is over 180 days
            delinquent, including nontax debt administered by a third party acting as an agent
            for the Federal Government, shall notify the Secretary of the Treasury of all such
            nontax debts for purposes of administrative offset under this subsection.

            The Digital Accountability and Transparency Act (DATA Act), Public Law 113-
            101, was signed into law on May 9, 2014. Section 5 of the DATA Act amends
            Title 31 U.S.C. Section 3716(c)(6) and now requires agencies to notify the
            Secretary of the Treasury of valid, delinquent nontax debts that are over 120
            days delinquent – 60 days earlier than the previous 180 days requirement – for
            the purpose of administrative offset. Section 5 of the DATA Act also added a new
            requirement, according to which “the Secretary of the Treasury shall notify
            Congress of any instance in which an agency fails to notify the Secretary [of the
            Treasury] as required” by 31 U.S.C. Section 3716(c)(6)(A). 1

            The Department and FSA have not changed their loan servicing procedures and
            internal processes to comply with the new 120 days requirement. Further, the
            existing loan servicing procedures and internal processes do not notify the
            Secretary of the Treasury of past due, legally enforceable nontax debts once

1
    The official U.S.C. has not yet been amended to reflect the statutory change due to the passage of the DATA Act.
                    INDEPENDENT AUDITORS’ REPORT ON
             CLOSING PACKAGE FINANCIAL STATEMENTS (Continued)

       they become over 180 days past due. Instead, notification is performed once a
       year when most past due, legally enforceable nontax debts are significantly older
       than 180 days delinquent. Therefore, the Department and FSA are noncompliant
       with the timing requirement of 31 U.S.C. Section 3716(c)(6) as of September 30,
       2014.

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, 2014, 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 the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the Department’s financial statements will not be
prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency,
or combination of deficiencies, in internal control that is less severe than a material weakness,
yet important enough to merit attention by those charged with governance.

Our consideration of internal control for the closing package financial statements was for the
limited purpose described in the first paragraph of this section and was not designed to identify
all deficiencies in internal control that might be material weaknesses or significant deficiencies
and therefore, material weaknesses or significant deficiencies may exist that were not identified.
Given these limitations, during our audit we did not identify any deficiencies in internal control
that we consider to be material weaknesses.

Report on Compliance 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 in accordance with Government Auditing Standards.

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 and
compliance and the result of that testing, and not to provide an opinion 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 Government Auditing Standards in considering the
                   INDEPENDENT AUDITORS’ REPORT ON
            CLOSING PACKAGE FINANCIAL STATEMENTS (Continued)

Department’s internal control and compliance. Accordingly, this communication is not suitable
for any other purpose.




CliftonLarsonAllen LLP

Arlington, Virginia
November 17, 2014
                         UNITED STATES DEPARTMENT OF EDUCATION
                                    OFFICE OF THE CHIEF FINANCIAL OFFICER




 MEMORANDUM                                                       NOV 1 4

 TO:                Patrick J. Howard
                    Assistant Inspector General for Audit

 FROM:              Thomas P. Skelly ~               /21~  7
                    Delegated to Perform the Functions        /
                    and Duties of the Chief Financial Officer

 SUBJECT:           DRAFT AUDIT REPORTS
                    Fiscal Years 2014 and 2013 Closing Package Financial Statements
                    U.S. Department of Education
                    ED-0IG/A1700003


 Please convey our sincere thanks and appreciation to everyone on your staff who
 worked diligently on this financial statement audit. The Department reviewed the
 draft Fiscal Years 201 4 and 2013 Closing Package Financial Statements Audit
 Report. We concur and agree with the Independent Auditors' Report.

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

 Please contact Gary Wood, Director, Financial Management Operations, at (202)
 245-8 118 with any questions or comments.




                                    55012th St. S.W., WASHINGTON, DC 20202
                                                    www.ed.gov
The DepartmC'nl ol l:'ducation's mission is to promote student achievement and prepam tion for glo bal competitiveness
                             b y fostering educational excellence and ensuring equal access.
                                                                       U.S Department of the Treasury                                         11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:        2014                              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               2014-SEPTEMBER                        2013-SEPTEMBER                    Previously Reported
Assets:
Non-federal
Cash and other monetary assets                                                1,471                               1,482                              1,482
Accounts and taxes receivable, net                                              136                                 121                                121
Loans receivable, net                                                       923,545                             826,684                            826,684
TARP direct loans and equity                                                      0                                   0                                  0
investments, net (for use by Treasury
only)
Inventories and related property, net                                             0                                   0                                  0
Property, plant and equipment, net                                                7                                   2                                  2
Debt and equity securities                                                        0                                   0                                  0
Investment in GSEs                                                                0                                   0                                  0
Other assets                                                                     13                                  13                                 13
Total Non-Federal Assets                                                    925,172                             828,302                            828,302

Federal
Fund balance with Treasury (RC 40)                                           98,696                             108,732                            108,732
Federal investments (RC 01)                                                       0                                   0                                  0
Accounts receivable (RC 22)                                                       3                                   2                                  2
Accounts receivable, capital transfers                                            0                                   0                                  0
(RC 12)
Interest receivable (RC 02)                                                         0                                0                                       0
Loans receivable (RC17)                                                             0                                0                                       0
Transfers receivable (RC 27)                                                        0                                0                                       0
Benefit program contributions                                                       0                                0                                       0
receivable (RC 21)
Advances to others and prepayments                                                 55                               22                                  22




                                                                                               -1-
                                                                       U.S Department of the Treasury                                         11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:        2014                              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               2014-SEPTEMBER                        2013-SEPTEMBER                    Previously Reported
(RC 23)
Other assets (without reciprocals) (RC                                              0                                 0                                      0
29) "G"
Other assets (without reciprocals) (RC                                              0                                 0                                      0
29) "Z"
Other assets (without reciprocals) (RC                                              0                                 0                                      0
29)
Asset for Agency's custodial and                                                    0                                 0                                      0
non-entity liabilities (RC 46)
Other assets (RC 30) "F"                                                          0                                   0                                  0
Other assets (RC 30) "G"                                                          0                                   0                                  0
Other assets (RC 30)                                                              0                                   0                                  0
Total Federal Assets                                                         98,754                             108,756                            108,756
Total Assets                                                              1,023,926                             937,058                            937,058

Liabilities:
Non-federal
Accounts payable                                                              (4,000)                            (4,127)                             (4,127)
Federal debt securities held by the                                                0                                  0                                   0
public and accrued interest
Federal employee and veteran                                                       (2)                              (15)                                (15)
benefits payable
Environmental and disposal liabilities                                              0                                 0                                      0
Benefits due and payable                                                            0                                 0                                      0
Loan guarantee liabilities                                                          0                                 0                                      0
Liabilities to GSEs (for use by                                                     0                                 0                                      0
Treasury only)




                                                                                               -2-
                                                                       U.S Department of the Treasury                                          11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:        2014                               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               2014-SEPTEMBER                        2013-SEPTEMBER                     Previously Reported
Insurance and guarantee program                                                     0                                  0                                      0
liabilities
Other liabilities                                                             (2,662)                             (2,302)                             (2,302)
Total Non-Federal Liabilities                                                 (6,664)                             (6,444)                             (6,444)

Federal
Accounts payable (RC 22)                                                           (1)                                (2)                                 (2)
Accounts payable, capital transfers                                                 0                             (2,375)                             (2,375)
(RC 12)
Federal debt (RC 01)                                                              0                                    0                                   0
Interest payable (RC 02)                                                        (10)                                  (9)                                 (9)
Loans payable (RC 17)                                                      (966,661)                            (852,423)                           (852,423)
Transfers payable (RC 27)                                                         0                                    0                                   0
Benefit program contributions                                                    (6)                                 (10)                                (10)
payable (RC 21)
Advances from others and deferred                                                (26)                                (29)                                (29)
credits (RC 23)
Liability to the General Fund for                                             (7,874)                             (6,425)                             (6,425)
custodial and other non-entity assets
(RC 46)
Other liabilities (without reciprocals)                                            22                             (1,498)                             (1,498)
(RC 29)
Liability for Fund Balance with                                                     0                                  0                                      0
Treasury (RC 40)
Other liabilities (RC 30) "F"                                                       0                                  0                                      0
Other liabilities (RC 30) "G"                                                       0                                  0                                      0
Other liabilities (RC 30)                                                           0                                  0                                      0




                                                                                               -3-
                                                                       U.S Department of the Treasury                                          11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:        2014                               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               2014-SEPTEMBER                        2013-SEPTEMBER                     Previously Reported
Total Federal Liabilities                                                  (974,556)                            (862,771)                           (862,771)
Total Liabilities                                                          (981,220)                            (869,215)                           (869,215)

Net Position:
Net Position - Funds From Dedicated                                                (2)                                (3)                                 (3)
Collections "N"
Net Position - Funds From Dedicated                                                 0                                  0                                      0
Collections "F"
Net Position - Funds From Dedicated                                                 0                                  0                                      0
Collections "G"
Net Position - Funds From Dedicated                                                 0                                  0                                      0
Collections "Z"
Net Position - Funds From Dedicated                                                (2)                                (3)                                 (3)
Collections
Net Position - Funds other than those                                       (42,704)                             (67,840)                            (67,840)
from Dedicated Collections "N"

Net Position - Funds other than those                                               0                                  0                                      0
from Dedicated Collections "F"
Net Position - Funds other than those                                               0                                  0                                      0
from Dedicated Collections "G"
Net Position - Funds other than those                                               0                                  0                                      0
from Dedicated Collections "Z"
Net Position - Funds other than those                                       (42,704)                             (67,840)                            (67,840)
from Dedicated Collections

Total Net Position                                                          (42,706)                             (67,843)                            (67,843)




                                                                                               -4-
                                                                       U.S Department of the Treasury                                       11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: BALANCE SHEET                                            Fiscal Year:       2014                             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               2014-SEPTEMBER                       2013-SEPTEMBER                   Previously Reported
Total Liabilities and Net Position                                       (1,023,926)                            (937,058)                        (937,058)




                                                                                              -5-
                                                                       U.S Department of the Treasury                                        11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF NET COST                                    Fiscal Year:       2014                              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               2014-SEPTEMBER                       2013-SEPTEMBER                    Previously Reported
Gross Cost:
Non-Federal gross cost                                                       80,586                             32,427                              32,427
Interest on debt held by the public                                               0                                  0                                   0
Gains/losses from changes in actuarial                                            0                                  0                                   0
assumptions
General PP&E partial impairment loss                                              0                                  0                                   0
Total Non-Federal Gross Cost                                                 80,586                             32,427                              32,427

Federal Gross Cost
Benefit program costs (RC 26)                                                   124                                122                                122
Imputed costs (RC 25)                                                            36                                 34                                 34
Buy/sell costs (RC 24)                                                          340                                318                                318
Federal securities interest expense                                               0                                  0                                  0
(RC 03)
Borrowing and other interest expense                                         30,628                             28,452                              28,452
(RC 05)
Borrowing losses (RC 06)                                                        581                                  0                                      0
Other expenses (without reciprocals)                                              0                                  0                                      0
(RC 29) "G"
Other expenses (without reciprocals)                                               0                                 0                                      0
(RC 29) "Z"
Other expenses (without reciprocals)                                               0                                 0                                      0
(RC 29)
Total Federal Gross Cost                                                     31,709                             28,926                              28,926
Department Total Gross Cost                                                 112,295                             61,353                              61,353

Earned Revenue:




                                                                                              -6-
                                                                       U.S Department of the Treasury                                         11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF NET COST                                    Fiscal Year:       2014                               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               2014-SEPTEMBER                       2013-SEPTEMBER                     Previously Reported
Non-Federal Earned Revenue                                                  (24,811)                            (23,179)                            (23,179)

Federal Earned Revenue
Benefit program revenue (exchange)                                                 0                                  0                                      0
(RC 26)
Buy/sell revenue (RC 24)                                                       (198)                                  0                                      0
Federal securities interest revenue                                               0                                   0                                      0
including associated gains and losses
(exchange) (RC 03)
Borrowing and other interest revenue                                          (4,119)                            (4,049)                             (4,049)
(exchange) (RC 05)
Borrowings gains (RC 06)                                                           0                                  0                                      0
Other revenue (without reciprocals)                                                0                                  0                                      0
(RC 29) "G"
Other revenue (without reciprocals)                                                3                               347                                 347
(RC 29) "Z"
Other revenue (without reciprocals)                                                3                               347                                 347
(RC 29)
Total Federal Earned Revenue                                                  (4,314)                            (3,702)                             (3,702)

Department Total Earned Revenue                                             (29,125)                            (26,881)                            (26,881)

Net Cost                                                                     83,170                              34,472                              34,472




                                                                                              -7-
                                                                       U.S Department of the Treasury                                         11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2014                               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               2014-SEPTEMBER                       2013-SEPTEMBER                     Previously Reported
Beginning Net Position                                                      (67,843)                            (65,155)                            (65,155)
Non-federal prior-period adjustments
Changes in accounting principles                                                   0                                  0                                      0
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 (RC                                                0                                  0                                      0
29)
Corrections of errors - federal (RC                                                0                                  0                                      0
29)
Corrections of errors - years                                                      0                                  0                                      0
preceding the prior year - federal (RC
29)
Adjusted Beginning Net Position                                             (67,843)                            (65,155)                            (65,155)
Balance

Non-Federal Nonexchange Revenue
Individual income tax and tax                                                      0                                  0                                      0
witholdings (for use by Treasury
only)
Corporation income taxes (for use by                                               0                                  0                                      0
Treasury only)
Excise taxes                                                                       0                                  0                                      0
Unemployment taxes                                                                 0                                  0                                      0




                                                                                              -8-
                                                                       U.S Department of the Treasury                                         11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2014                               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               2014-SEPTEMBER                       2013-SEPTEMBER                     Previously Reported
Custom duties                                                                      0                                  0                                   0
Estate and gift taxes                                                              0                                  0                                   0
Other taxes and receipts                                                         (14)                               (11)                                (11)
Miscellaneous earned revenues                                                      0                                  0                                   0
Total Non-Federal Nonexchange                                                    (14)                               (11)                                (11)
Revenue

Federal Nonexchange Revenue
Federal securities interest revenue                                                0                                  0                                      0
including associated gains and losses
(nonexchange) (RC 03)
Borrowings and other interest revenue                                              0                                  0                                      0
(nonexchange) (RC 05)
Benefit program revenue                                                            0                                  0                                      0
(nonexchange) (RC 26)
Other taxes and receipts (RC 45)                                                   0                                  0                                      0
Total Federal Nonexchange Revenue                                                  0                                  0                                      0

Budgetary Financing Sources:
Appropriations received as adjusted                                            5,000                            (88,169)                            (88,169)
(rescissions and other adjustments)
(RC 41)
Appropriation of unavailable special                                               0                                  0                                      0
or trust fund receipts transfers-in (RC
07)
Appropriation of unavailable special                                               0                                  0                                      0
or trust fund receipts transfers-out




                                                                                              -9-
                                                                       U.S Department of the Treasury                                        11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2014                              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               2014-SEPTEMBER                          2013-SEPTEMBER                 Previously Reported
(RC 07)
Nonexpenditure transfers-in of                                                 (451)                                 0                                      0
unexpended appropriations and
financing sources (RC 08)
Nonexpenditure transfers-out of                                                 375                                  0                                      0
unexpended appropriations and
financing sources (RC 08)
Expenditure transfers-in of financing                                              0                                 0                                      0
sources (RC 09)
Expenditure transfers-out of                                                       0                                 0                                      0
financing sources (RC 09)
Nonexpenditure transfers-in of                                                     0                             3,880                               3,880
financing sources - capital transfers
(RC 11)
Nonexpenditure transfers-out of                                                    0                            (3,857)                             (3,857)
financing sources - capital transfers
(RC 11)
Collections for others transferred to                                              0                                 0                                      0
the General Fund (RC 44)
Accrual for amounts to be collected                                                0                                 0                                      0
for others and transferred to the
General Fund (RC 29)
Other budgetary financing sources                                          (100,524)                            (3,859)                             (3,859)
(RC 29) "G"
Other budgetary financing sources                                                  0                                 0                                      0
(RC 29) "Z"
Other budgetary financing sources                                          (100,524)                            (3,859)                             (3,859)




                                                                                              - 10 -
                                                                       U.S Department of the Treasury                                         11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2014                               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               2014-SEPTEMBER                          2013-SEPTEMBER                  Previously Reported
(RC 29)
Warrants issued (RC 41)                                                            0                                  0                                      0
Trust Fund Warrants Issues Net of                                                  0                                  0                                      0
Adjustments (RC 45)
Total Budgetary Financing Sources                                           (95,600)                            (92,005)                            (92,005)

Other Financing Sources:
Transfers-in without reimbursement                                                 0                                  0                                      0
(RC 18)
Transfers-out without reimbursement                                                0                                  0                                      0
(RC 18)
Imputed financing source (RC 25)                                                (36)                                (34)                                (34)
Non-entity collections transferred to                                        39,911                              48,681                              48,681
the General Fund (RC 44)
Accrual for non-entity amounts to be                                          (2,294)                             6,209                               6,209
collected and transferred to the
General Fund (RC 48)
Other non-budgetary financing                                                      0                                  0                                      0
sources (RC 29) "G"
Other non-budgetary financing                                                      0                                  0                                      0
sources (RC 29) "Z"
Other non-budgetary financing                                                      0                                  0                                      0
sources (RC 29)
Transfer in of Agency Unavailable                                                  0                                  0                                      0
Custodial and Non-entity Collections
(RC 44)
Accrual of Agency Amounts to be                                                    0                                  0                                      0




                                                                                              - 11 -
                                                                       U.S Department of the Treasury                                         11-14-2014 18:12:52
                                                                         Bureau of the Fiscal Service
                                                                   Governmentwide Financial Report System

                                                            GF003F-Closing Package Financial Statement Report

Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year:                           2014                               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               2014-SEPTEMBER                          2013-SEPTEMBER                  Previously Reported
Collected (RC 48)
Total Other Financing Sources                                                37,581                              54,856                              54,856

Net Cost                                                                     83,170                              34,472                              34,472

Ending Net Position Balance                                                 (42,706)                            (67,843)                            (67,843)




                                                                                              - 12 -
                                                               U.S. Department of the Treasury                                     11/14/2014 18:13:14
                                                                  Bureau of the Fiscal Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2014                                   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      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                    Type
 4   Fund Balance with Treasury (Note 3)                                              A      D       B                    98,696                108,732
                                                                                   Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Fund balance with Treasury (RC 40)                     G                98,696                 108,732                   108,732                     0
Total:                                                                  98,696                 108,732                   108,732                     0

Line Agency Line Description                                                Status Account NB       F/N      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                    Type
 5   Accounts Receivable (Note 4)                                                     A      D       F                        3                          2
                                                                                   Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Accounts receivable (RC 22)                            F                   3                      2                            2                     0
Total:                                                                     3                      2                            2                     0

Line Agency Line Description                                                Status Account NB       F/N      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                    Type
 6   Other Intragovernmental Assets (Note 8)                                          A      D       B                       55                      22
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Advances to others and prepayments (RC 23)             F                   55                     22                         22                      0
Total:                                                                     55                     22                         22                      0




                                                                             -1-
                                                               U.S. Department of the Treasury                                     11/14/2014 18:13:14
                                                                  Bureau of the Fiscal Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2014                                   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      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                    Type
 9   Cash and Other Monetary Assets (Note 5)                                          A      D       B                     1,471                  1,482
                                                                                   Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Cash and other monetary assets                         N                 1,471                  1,482                      1,482                     0
Total:                                                                   1,471                  1,482                      1,482                     0

Line Agency Line Description                                                Status Account NB       F/N      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                    Type
 10 Accounts Receivable, Net (Note 4)                                                 A      D       B                      136                     121
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Accounts and taxes receivable, net                     N                  136                    121                        121                      0
Total:                                                                    136                    121                        121                      0

Line Agency Line Description                                                Status Account NB       F/N      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                    Type
 11 Credit Program Receivables, Net (Note 6)                                          A      D       N                  923,545                 826,684
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Loans receivable, net                                  N                923,545                826,684                   826,684                     0
Total:                                                                  923,545                826,684                   826,684                     0




                                                                             -2-
                                                             U.S. Department of the Treasury                                     11/14/2014 18:13:14
                                                                Bureau of the Fiscal Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                  Fiscal Year: 2014                                   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      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                  Type
 12 Property and Equipment, Net (Note 7)                                            A      D       B                        7                          2
                                                                                 Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Property, plant and equipment, net                   N                   7                      2                            2                     0
Total:                                                                   7                      2                            2                     0

Line Agency Line Description                                              Status Account NB       F/N      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                  Type
 13 Other Assets (Note 8)                                                           A      D       N                       13                      13
                                                                                 Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Other assets                                         N                   13                     13                         13                      0
Total:                                                                   13                     13                         13                      0

Line Agency Line Description                                              Status Account NB       F/N      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                  Type
 19 Accounts Payable (Note 9)                                                       L      C       F                        1                          2
                                                                                 Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Accounts payable (RC 22)                             F                    1                      2                           2                     0
Total:                                                                   (1)                    (2)                        (2)                     0




                                                                           -3-
                                                                  U.S. Department of the Treasury                                      11/14/2014 18:13:14
                                                                     Bureau of the Fiscal Service
                                                               Governmentwide Financial Report System

                                                  GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                       Fiscal Year: 2014                                    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      2014-SEPTEMBER           2013-SEPTEMBER
                                                                                        Type
 20 Debt (Note 10)                                                                        L      C      F                   966,671                 852,432
                                                                                       Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description                  Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported       Line Item Changes
Interest payable (RC 02)                                  F                     10                      9                         9                      0
Loans payable (RC 17)                                     F                966,661                852,423                   852,423                      0
Total:                                                                    (966,671)              (852,432)                 (852,432)                     0
Line Agency Line Description                                                    Status Account NB      F/N      2014-SEPTEMBER           2013-SEPTEMBER
                                                                                        Type
 21 Guaranty Agency Federal and Restricted Funds Due to Treasury (Note 5)                 L      C      F                     1,471                   1,482
                                                                                       Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description                  Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported       Line Item Changes
Other liabilities (without reciprocals) (RC 29)           Z                     0                  1,482                      1,482                      0
Accounts payable, capital transfers (RC 12)               F                 1,471                      0                          0                      0
Total:                                                                     (1,471)                (1,482)                    (1,482)                     0
Line Agency Line Description                                                    Status Account NB      F/N      2014-SEPTEMBER           2013-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     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported       Line Item Changes
Total:                                                                        0                      0                            0                      0




                                                                                -4-
                                                                U.S. Department of the Treasury                                     11/14/2014 18:13:14
                                                                   Bureau of the Fiscal Service
                                                             Governmentwide Financial Report System

                                              GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                     Fiscal Year: 2014                                   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     2014-SEPTEMBER           2013-SEPTEMBER
                                                                                     Type
 23 Other Intragovernmental Liabilities (Note 11)                                      L      C       F                    6,413                   8,855
                                                                                    Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description                Status F/N     2014-SEPTEMBER         2013-SEPTEMBER         Previously Reported       Line Item Changes
Benefit program contributions payable (RC 21)           F                    6                     10                        10                       0
Advances from others and deferred credits (RC           F                   26                     29                        29                       0
23)
Other liabilities (without reciprocals) (RC 29)         Z                    (22)                       16                    16                          0
Liability to the General Fund for custodial and         G                  7,874                     6,425                 6,425                          0
other non-entity assets (RC 46)
Accounts payable, capital transfers (RC 12)             F                 (1,471)                  2,375                   2,375                          0
Total:                                                                    (6,413)                 (8,855)                 (8,855)                         0
Line Agency Line Description                                                 Status Account NB       F/N     2014-SEPTEMBER           2013-SEPTEMBER
                                                                                     Type
 27 Accounts Payable (Note 9)                                                          L      C       N                    4,000                   4,127
                                                                                    Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N       2014-SEPTEMBER         2013-SEPTEMBER         Previously Reported       Line Item Changes
Accounts payable                                      N                   4,000                  4,127                     4,127                      0
Total:                                                                   (4,000)                (4,127)                   (4,127)                     0




                                                                              -5-
                                                               U.S. Department of the Treasury                                      11/14/2014 18:13:14
                                                                  Bureau of the Fiscal Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                    Fiscal Year: 2014                                    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      2014-SEPTEMBER           2013-SEPTEMBER
                                                                                    Type
 28 Accrued Grant Liability (Note 12)                                                 L      C       N                     2,487                   2,170
                                                                                   Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported       Line Item Changes
Other liabilities                                      N                 2,487                  2,170                      2,170                      0
Total:                                                                  (2,487)                (2,170)                    (2,170)                     0

Line Agency Line Description                                                Status Account NB       F/N      2014-SEPTEMBER           2013-SEPTEMBER
                                                                                    Type
 29 Liabilities for Loan Guarantees (Note 6)                                          L      C       N                         0                          0
                                                                                   Variance:                                   0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported       Line Item Changes
Total:                                                                     0                      0                            0                      0


Line Agency Line Description                                                Status Account NB       F/N      2014-SEPTEMBER           2013-SEPTEMBER
                                                                                    Type
 30 Other Liabilities (Note 11)                                                       L      C       N                       177                     147
                                                                                   Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N      2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported       Line Item Changes
Federal employee and veteran benefits payable         N                     2                     15                         15                       0
Other liabilities                                     N                   175                    132                        132                       0
Total:                                                                   (177)                  (147)                      (147)                      0




                                                                             -6-
                                                             U.S. Department of the Treasury                                      11/14/2014 18:13:14
                                                                Bureau of the Fiscal Service
                                                          Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: BALANCE SHEET                                                  Fiscal Year: 2014                                   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      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                  Type
 37 Unexpended Appropriations (Note 13)                                             E      C       B                    66,447                  71,371
                                                                                 Variance:                                   0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Net Position - Funds other than those from           N                66,447                 71,371                     71,371                     0
Dedicated Collections "N"
Total:                                                                (66,447)                 (71,371)               (71,371)                          0
Line Agency Line Description                                              Status Account NB       F/N      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                  Type
 38 Cumulative Results of Operations (Note 13)                                      E      C       B                   (23,741)                  (3,528)
                                                                                 Variance:                                   0                        0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Net Position - Funds From Dedicated                  N                   2                      3                            3                     0
Collections "N"
Net Position - Funds other than those from          N                 (23,743)                  (3,531)                (3,531)                          0
Dedicated Collections "N"
Total:                                                                 23,741                     3,528                 3,528                           0




                                                                           -7-
                                                               U.S. Department of the Treasury                                     11/14/2014 18:13:14
                                                                  Bureau of the Fiscal Service
                                                            Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF NET COST                                            Fiscal Year: 2014                                   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      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                    Type
 36 Total Gross costs                                                                GC      D       B                  112,295                  61,353
                                                                                   Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Imputed costs (RC 25)                                  F                     36                    34                         34                     0
Buy/sell costs (RC 24)                                 F                    340                   318                        318                     0
Benefit program costs (RC 26)                          F                    124                   122                        122                     0
Borrowing and other interest expense (RC 05)           F                 30,628                28,452                     28,452                     0
Borrowing losses (RC 06)                               F                    581                     0                          0                     0
Non-Federal gross cost                                 N                 80,586                32,427                     32,427                     0
Total:                                                                  112,295                61,353                     61,353                     0
Line Agency Line Description                                                Status Account NB       F/N      2014-SEPTEMBER          2013-SEPTEMBER
                                                                                    Type
 37 Total Earned Revenue                                                             ER      C       B                    29,125                 26,881
                                                                                   Variance:                                   0                      0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2014-SEPTEMBER         2013-SEPTEMBER          Previously Reported      Line Item Changes
Buy/sell revenue (RC 24)                               F                   198                      0                          0                     0
Borrowing and other interest revenue                   F                 4,119                  4,049                      4,049                     0
(exchange) (RC 05)
Non-Federal Earned Revenue                            N                  24,811                   23,179                 23,179                          0
Other revenue (without reciprocals) (RC 29)           Z                      (3)                    (347)                  (347)                         0
"Z"
Total:                                                                  (29,125)                 (26,881)               (26,881)                         0




                                                                             -8-
                                                              U.S. Department of the Treasury                                     11/14/2014 18:13:14
                                                                 Bureau of the Fiscal Service
                                                           Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                            Fiscal Year: 2014                                   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     2014-SEPTEMBER           2013-SEPTEMBER
                                                                                   Type
 3   Beginning Balances                                                             BN      C       B                   (3,528)                  (7,531)
                                                                                  Variance:                                  0                        0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2014-SEPTEMBER         2013-SEPTEMBER         Previously Reported       Line Item Changes
Beginning Net Position                               B                 (3,528)                (7,531)                   (7,531)                     0
Total:                                                                  3,528                  7,531                     7,531                      0

Line Agency Line Description                                               Status Account NB       F/N     2014-SEPTEMBER           2013-SEPTEMBER
                                                                                   Type
 7   Other Adjustments (rescissions, etc)                                            F      C       B                        0                          0
                                                                                  Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N      2014-SEPTEMBER         2013-SEPTEMBER         Previously Reported       Line Item Changes
Total:                                                                    0                      0                           0                      0


Line Agency Line Description                                               Status Account NB       F/N     2014-SEPTEMBER           2013-SEPTEMBER
                                                                                   Type
 9   Appropriations Used                                                             F      C       B                   99,674                  89,484
                                                                                  Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description              Status F/N     2014-SEPTEMBER         2013-SEPTEMBER         Previously Reported       Line Item Changes
Nonexpenditure transfers-in of unexpended             F                   0                   89,484                    89,484                      0
appropriations and financing sources (RC 08)
Other budgetary financing sources (RC 29) "G"         G                 99,674                        0                      0                          0
Total:                                                                 (99,674)                 (89,484)               (89,484)                         0



                                                                            -9-
                                                                U.S. Department of the Treasury                                  11/14/2014 18:13:14
                                                                   Bureau of the Fiscal Service
                                                             Governmentwide Financial Report System

                                             GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                              Fiscal Year: 2014                                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   2014-SEPTEMBER          2013-SEPTEMBER
                                                                                     Type
 11 Nonexchange Revenue                                                                F      C       B                    12                      10
                                                                                    Variance:                               0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N        2014-SEPTEMBER          2013-SEPTEMBER      Previously Reported      Line Item Changes
Other taxes and receipts                             N                      12                      10                     10                      0
Total:                                                                     (12)                    (10)                   (10)                     0

Line Agency Line Description                                                 Status Account NB       F/N   2014-SEPTEMBER          2013-SEPTEMBER
                                                                                     Type
 13 Donations and Forfeitures of Cash and Cash Equivalents                             F      C       B                     2                          1
                                                                                    Variance:                               0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N        2014-SEPTEMBER          2013-SEPTEMBER      Previously Reported      Line Item Changes
Other taxes and receipts                             N                       2                       1                       1                     0
Total:                                                                      (2)                     (1)                    (1)                     0

Line Agency Line Description                                                 Status Account NB       F/N   2014-SEPTEMBER          2013-SEPTEMBER
                                                                                     Type
 15 Nonexpenditure Financing Sources - Transfers-Out                                   F      C       F                     0                          0
                                                                                    Variance:                               0                          0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N        2014-SEPTEMBER          2013-SEPTEMBER      Previously Reported      Line Item Changes
Total:                                                                      0                       0                        0                     0




                                                                              - 10 -
                                                               U.S. Department of the Treasury                                       11/14/2014 18:13:14
                                                                  Bureau of the Fiscal Service
                                                            Governmentwide Financial Report System

                                              GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2014                                   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     2014-SEPTEMBER           2013-SEPTEMBER
                                                                                      Type
 19 Imputed Financing from Costs Absorbed by Others                                     F      C       F                       36                      34
                                                                                     Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description             Status F/N       2014-SEPTEMBER            2013-SEPTEMBER        Previously Reported       Line Item Changes
Imputed financing source (RC 25)                     F                     36                        34                       34                       0
Total:                                                                    (36)                      (34)                     (34)                      0

Line Agency Line Description                                                  Status Account NB       F/N     2014-SEPTEMBER           2013-SEPTEMBER
                                                                                      Type
 21 Negative Subsidy Transfers, Downward Subsidy Re-estimates, and Other                F      C       B                  (36,767)                (51,054)
                                                                                     Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N     2014-SEPTEMBER            2013-SEPTEMBER        Previously Reported       Line Item Changes
Other budgetary financing sources (RC 29) "G"          G                  850                      3,859                    3,859                      0
Nonexpenditure transfers-out of financing              F                    0                     (3,857)                  (3,857)                     0
sources - capital transfers (RC 11)
Nonexpenditure transfers-in of financing               F                        0                  (3,880)                 (3,880)                         0
sources - capital transfers (RC 11)
Accrual for non-entity amounts to be collected         G                   (2,294)                    6,209                 6,209                          0
and transferred to the General Fund (RC 48)
Non-entity collections transferred to the              G                   39,911                  48,681                  48,681                          0
General Fund (RC 44)
Total:                                                                     36,767                  51,054                  51,054                          0




                                                                               - 11 -
                                                                 U.S. Department of the Treasury                                      11/14/2014 18:13:14
                                                                    Bureau of the Fiscal Service
                                                              Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2014                                    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      2014-SEPTEMBER           2013-SEPTEMBER
                                                                                       Type
 37 Beginning Balances                                                                  BN      C      B                    71,371                  72,686
                                                                                      Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2014-SEPTEMBER          2013-SEPTEMBER         Previously Reported       Line Item Changes
Beginning Net Position                                 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      2014-SEPTEMBER           2013-SEPTEMBER
                                                                                       Type
 41 Appropriations Received                                                              F      C      F                    95,293                  90,993
                                                                                      Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2014-SEPTEMBER          2013-SEPTEMBER         Previously Reported       Line Item Changes
Appropriations received as adjusted (rescissions         G                95,293                  90,993                    90,993                      0
and other adjustments) (RC 41)
Total:                                                                    (95,293)                  (90,993)               (90,993)                         0
Line Agency Line Description                                                   Status Account NB      F/N      2014-SEPTEMBER           2013-SEPTEMBER
                                                                                       Type
 43 Appropriations Transferred - in/out                                                  F      C      F                        76                          0
                                                                                      Variance:                                  0                          0

Closing Package Line Reclassification
Closing Package Line Description               Status F/N       2014-SEPTEMBER          2013-SEPTEMBER         Previously Reported       Line Item Changes
Nonexpenditure transfers-in of unexpended              F                    451                      0                           0                      0
appropriations and financing sources (RC 08)
Nonexpenditure transfers-out of unexpended              F                     375                          0                     0                          0
appropriations and financing sources (RC 08)
Total:                                                                        (76)                         0                     0                          0


                                                                               - 12 -
                                                                 U.S. Department of the Treasury                                      11/14/2014 18:13:14
                                                                    Bureau of the Fiscal Service
                                                              Governmentwide Financial Report System

                                               GF003G-Closing Package Line Reclassification Summary Report

Statement: STATEMENT OF CHANGES IN NET POSITION                               Fiscal Year: 2014                                    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      2014-SEPTEMBER           2013-SEPTEMBER
                                                                                       Type
 45 Other Adjustments (rescissions, etc)                                                 F      C      B                      (619)                  (2,824)
                                                                                      Variance:                                  0                        0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2014-SEPTEMBER          2013-SEPTEMBER         Previously Reported       Line Item Changes
Appropriations received as adjusted (rescissions         G                 (619)                  (2,824)                   (2,824)                     0
and other adjustments) (RC 41)
Total:                                                                        619                     2,824                  2,824                          0
Line Agency Line Description                                                   Status Account NB      F/N      2014-SEPTEMBER           2013-SEPTEMBER
                                                                                       Type
 47 Appropriations Used                                                                  F      C      B                   (99,674)                (89,484)
                                                                                      Variance:                                  0                       0

Closing Package Line Reclassification
Closing Package Line Description                 Status F/N     2014-SEPTEMBER          2013-SEPTEMBER         Previously Reported       Line Item Changes
Appropriations received as adjusted (rescissions         G                (99,674)                   0                           0                      0
and other adjustments) (RC 41)
Nonexpenditure transfers-in of unexpended                F                      0                   (89,484)               (89,484)                         0
appropriations and financing sources (RC 08)
Total:                                                                     99,674                    89,484                 89,484                          0




                                                                               - 13 -
                                                             U.S.Department of the Treasury                             11-14-2014 18:13:47
                                                               Bureau of the Fiscal Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2014                            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          2014-SEPTEMBER        2013-SEPTEMBER
 BS              Accounts receivable (RC 22)                      A                   D                        3                     2
                                                                                 Variance:                         0                     0

Trading          Name                           Status 2014-SEPTEMBER      2013-SEPTEMBER         Previously Reported    Line item Changes
Partner
 4900 National Science Foundation                                    1                        1                    1                     0
 7500 Department of Health and Human                                 2                        1                    1                     0
        Services
                                   Total                             3                        2                    2                     0

Agency FS Status CP Line Description                              Account Type        NB          2014-SEPTEMBER        2013-SEPTEMBER
 BS              Advances to others and prepayments (RC 23)       A                   D                        55                    22
                                                                                 Variance:                         0                     0

Trading       Name                              Status 2014-SEPTEMBER      2013-SEPTEMBER         Previously Reported    Line item Changes
Partner
 1400 Department of the Interior                                    55                       22                   22                     0
                                   Total                            55                       22                   22                     0




                                                                          -1-
                                                             U.S.Department of the Treasury                              11-14-2014 18:13:47
                                                               Bureau of the Fiscal Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                          Fiscal Year: 2014                             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           2014-SEPTEMBER        2013-SEPTEMBER
 BS              Fund balance with Treasury (RC 40)               A                   D                      98,696                108,732
                                                                                 Variance:                          0                     0

Trading        Name                             Status 2014-SEPTEMBER      2013-SEPTEMBER          Previously Reported    Line item Changes
Partner
 9900 Treasury General Fund                                     98,696                  108,732                     0               108,732
                                  Total                         98,696                  108,732                     0               108,732


Agency FS Status CP Line Description                              Account Type        NB           2014-SEPTEMBER        2013-SEPTEMBER
 BS              Accounts payable (RC 22)                         L                   C                         1                     2
                                                                                 Variance:                          0                     0

Trading         Name                            Status 2014-SEPTEMBER      2013-SEPTEMBER          Previously Reported    Line item Changes
Partner
 4700 General Services Administration                                1                        1                     1                     0
 9999 Unidentified                                                   0                        1                     1                     0
                                  Total                             (1)                      (2)                   (2)                    0




                                                                          -2-
                                                               U.S.Department of the Treasury                                    11-14-2014 18:13:47
                                                                 Bureau of the Fiscal Service
                                                           Governmentwide Financial Report System

                                                       GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                             Fiscal Year: 2014                                 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               2014-SEPTEMBER         2013-SEPTEMBER
 BS              Accounts payable, capital transfers (RC 12)         L                   C                             0                    2,375
                                                                                    Variance:                               0                     0

Trading       Name                              Status 2014-SEPTEMBER         2013-SEPTEMBER              Previously Reported     Line item Changes
Partner
 9100 Department of Education                                          0                        2,375                   2,375                     0
                                  Total                                0                        (2,375)                (2,375)                    0


Agency FS Status CP Line Description                                 Account Type        NB               2014-SEPTEMBER         2013-SEPTEMBER
 BS              Advances from others and deferred credits (RC 23)   L                   C                             26                     29
                                                                                    Variance:                               0                     0

Trading          Name                           Status 2014-SEPTEMBER         2013-SEPTEMBER              Previously Reported     Line item Changes
Partner
 1500 Department of Justice                                            4                             3                      3                     0
 2800 Social Security Administration                                   1                             1                      1                     0
 3600 DEPARTMENT OF VETERANS                                           1                             1                      1                     0
        AFFAIRS
 4700 General Services Administration                                 (4)                            0                      0                     0
 4814 STATE JUSTICE INSTITUTE                                          1                             0                      0                     0
 4900 National Science Foundation                                      2                             1                      1                     0
 6900 Department of Transportation                                     0                             1                      1                     0
 7000 Department of Homeland Security                                  1                             1                      1                     0
 7500 Department of Health and Human                                  19                            20                     20                     0
        Services
 8600 Department of Housing and Urban                                  1                             1                      1                     0
        Development

                                                                             -3-
                                                              U.S.Department of the Treasury                              11-14-2014 18:13:47
                                                                Bureau of the Fiscal Service
                                                          Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                           Fiscal Year: 2014                             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 2014-SEPTEMBER                 2013-SEPTEMBER           Previously Reported    Line item Changes
Partner
 9500 Independent and Other Agencies                      0                                    1                     1                     0
 9571 BUREAU OF CONSUMER FINANCIAL                        1                                    0                     0                     0
        PROTECTION
 DE00 Department of Defense                              (1)                                  (1)                   (1)                    0
                                  Total                            (26)                      (29)                  (29)                    0


Agency FS Status CP Line Description                              Account Type         NB           2014-SEPTEMBER        2013-SEPTEMBER
 BS              Benefit program contributions payable (RC 21)    L                    C                         6                     10
                                                                                 Variance:                           0                     0

Trading         Name                            Status 2014-SEPTEMBER      2013-SEPTEMBER           Previously Reported    Line item Changes
Partner
 1601 Department of Labor                                            3                         4                     4                     0
 2400 Office of Personnel Management                                 3                         6                     6                     0
                                  Total                             (6)                      (10)                  (10)                    0




                                                                           -4-
                                                                 U.S.Department of the Treasury                                        11-14-2014 18:13:47
                                                                   Bureau of the Fiscal Service
                                                             Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                                   Fiscal Year: 2014                                 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               2014-SEPTEMBER         2013-SEPTEMBER
 BS              Interest payable (RC 02)                                  L                   C                             10                     9
                                                                                          Variance:                               0                     0

Trading       Name                              Status 2014-SEPTEMBER               2013-SEPTEMBER              Previously Reported     Line item Changes
Partner
 2000 Department of the Treasury                                             10                            9                      9                     0
                                  Total                                     (10)                          (9)                    (9)                    0


Agency FS Status CP Line Description                                       Account Type        NB               2014-SEPTEMBER         2013-SEPTEMBER
 BS              Liability to the General Fund for custodial and other     L                   C                           7,874                  6,425
                 non-entity assets (RC 46)
                                                                                          Variance:                               0                     0

Trading                                                  2014-SEPTEMBER             2013-SEPTEMBER              Previously Reported     Line item Changes
Partner        Name                             Status
 9900 Treasury General Fund                                              7,874                        6,425                   6,425                     0
                                  Total                                  (7,874)                      (6,425)                (6,425)                    0




                                                                                   -5-
                                                             U.S.Department of the Treasury                                 11-14-2014 18:13:47
                                                               Bureau of the Fiscal Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: BALANCE SHEET                                           Fiscal Year: 2014                              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            2014-SEPTEMBER         2013-SEPTEMBER
 BS              Loans payable (RC 17)                             L                   C                       966,661                852,423
                                                                                  Variance:                            0                     0

Trading       Name                              Status 2014-SEPTEMBER       2013-SEPTEMBER           Previously Reported     Line item Changes
Partner
 2000 Department of the Treasury                               966,661                   852,423                852,423                      0
                                  Total                        (966,661)                 (852,423)              (852,423)                    0




                                                                           -6-
                                                                U.S.Department of the Treasury                                   11-14-2014 18:13:47
                                                                  Bureau of the Fiscal Service
                                                            Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                     Fiscal Year: 2014                                 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               2014-SEPTEMBER         2013-SEPTEMBER
 NCS             Borrowing and other interest revenue (exchange)     ER                  C                           4,119                  4,049
                 (RC 05)
                                                                                    Variance:                               0                     0

Trading                                                  2014-SEPTEMBER       2013-SEPTEMBER              Previously Reported     Line item Changes
Partner       Name                              Status
 2000 Department of the Treasury                                    4,119                       4,049                   4,049                     0
                                  Total                            (4,119)                      (4,049)                (4,049)                    0


Agency FS Status CP Line Description                                 Account Type        NB               2014-SEPTEMBER         2013-SEPTEMBER
 NCS             Buy/sell revenue (RC 24)                            ER                  C                            198                     0
                                                                                    Variance:                               0                     0

Trading          Name                           Status 2014-SEPTEMBER         2013-SEPTEMBER              Previously Reported     Line item Changes
Partner
 1500 Department of Justice                                             2                            0                      0                     0
 3600 DEPARTMENT OF VETERANS                                            1                            0                      0                     0
        AFFAIRS
 4700 General Services Administration                                   4                            0                      0                     0
 4900 National Science Foundation                                       1                            0                      0                     0
 6900 Department of Transportation                                      1                            0                      0                     0
 7500 Department of Health and Human                                    4                            0                      0                     0
        Services
 8600 Department of Housing and Urban                                   1                            0                      0                     0
        Development
 9100 Department of Education                                         183                            0                      0                     0
 DE00 Department of Defense                                             1                            0                      0                     0


                                                                             -7-
                                                             U.S.Department of the Treasury                               11-14-2014 18:13:47
                                                               Bureau of the Fiscal Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2014                              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 2014-SEPTEMBER      2013-SEPTEMBER           Previously Reported    Line item Changes
Partner
                                  Total                           (198)                        0                     0                     0




Agency FS Status CP Line Description                              Account Type        NB            2014-SEPTEMBER        2013-SEPTEMBER
 NCS             Benefit program costs (RC 26)                    GC                  D                         124                   122
                                                                                 Variance:                           0                     0

Trading         Name                            Status 2014-SEPTEMBER      2013-SEPTEMBER           Previously Reported    Line item Changes
Partner
 1601 Department of Labor                                            0                        (1)                   (1)                    0
 2400 Office of Personnel Management                               124                        95                    95                     0
 9900 Treasury General Fund                                          0                        28                    28                     0
                                  Total                            124                       122                   122                     0




                                                                          -8-
                                                              U.S.Department of the Treasury                                 11-14-2014 18:13:47
                                                                Bureau of the Fiscal Service
                                                          Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                   Fiscal Year: 2014                                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              2014-SEPTEMBER        2013-SEPTEMBER
 NCS             Borrowing and other interest expense (RC 05)      GC                  D                         30,628                28,452
                                                                                  Variance:                             0                     0

Trading       Name                              Status 2014-SEPTEMBER       2013-SEPTEMBER             Previously Reported    Line item Changes
Partner
 2000 Department of the Treasury                                 30,628                       28,452                28,452                    0
                                  Total                          30,628                       28,452                28,452                    0


Agency FS Status CP Line Description                               Account Type        NB              2014-SEPTEMBER        2013-SEPTEMBER
 NCS             Borrowing losses (RC 06)                          GC                  D                           581                    0
                                                                                  Variance:                             0                     0

Trading       Name                              Status 2014-SEPTEMBER       2013-SEPTEMBER             Previously Reported    Line item Changes
Partner
 9100 Department of Education                                      581                            0                     0                     0
                                  Total                            581                            0                     0                     0




                                                                           -9-
                                                       U.S.Department of the Treasury                               11-14-2014 18:13:47
                                                         Bureau of the Fiscal Service
                                                   Governmentwide Financial Report System

                                                GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                            Fiscal Year: 2014                              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           2014-SEPTEMBER        2013-SEPTEMBER
 NCS             Buy/sell costs (RC 24)                     GC                   D                        340                   318
                                                                            Variance:                          0                     0

Trading          Name                 Status 2014-SEPTEMBER          2013-SEPTEMBER           Previously Reported    Line item Changes
Partner
 0300 LIBRARY OF CONGRESS                                  2                              1                    1                     0
 0400 GOVERNMENT PRINTING OFFICE                           3                              2                    2                     0
 1300 Department of Commerce                              36                             22                   22                     0
 1400 Department of the Interior                         159                            152                  152                     0
 1500 Department of Justice                                2                              1                    1                     0
 1601 Department of Labor                                 12                             13                   13                     0
 1900   Department of State                                0                              1                    1                     0
 2000 Department of the Treasury                           2                              2                    2                     0
 2400 Office of Personnel Management                      11                             11                   11                     0
 2800 Social Security Administration                       0                              2                    2                     0
 4700 General Services Administration                     79                             87                   87                     0
 4900 National Science Foundation                          1                              0                    0                     0
 5901 NATIONAL ENDOWMENT FOR THE                           1                              0                    0                     0
        ARTS
 6900 Department of Transportation                         4                              6                    6                     0
 7000 Department of Homeland Security                     14                              9                    9                     0
 7500 Department of Health and Human                       4                              1                    1                     0
        Services
 8800 NATIONAL ARCHIVES AND                                1                              1                    1                     0
        RECORDS ADM.
 9500 Independent and Other Agencies                       0                              3                    3                     0
 9515 CORP. FOR NATIONAL &                                 3                              0                    0                     0

                                                                   - 10 -
                                                             U.S.Department of the Treasury                               11-14-2014 18:13:47
                                                               Bureau of the Fiscal Service
                                                         Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF NET COST                                  Fiscal Year: 2014                              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 2014-SEPTEMBER      2013-SEPTEMBER           Previously Reported    Line item Changes
Partner
        COMMUNITY SERVICE
 9999 Unidentified                                                   1                          0                    0                     0
 DE00 Department of Defense                                          5                          4                    4                     0
                                  Total                            340                        318                  318                     0



Agency FS Status CP Line Description                              Account Type         NB           2014-SEPTEMBER        2013-SEPTEMBER
 NCS             Imputed costs (RC 25)                            GC                   D                         36                    34
                                                                                  Variance:                          0                     0

Trading         Name                            Status 2014-SEPTEMBER      2013-SEPTEMBER           Previously Reported    Line item Changes
Partner
 2400 Office of Personnel Management                                36                         34                   34                     0
                                  Total                             36                         34                   34                     0




                                                                         - 11 -
                                                                 U.S.Department of the Treasury                                     11-14-2014 18:13:47
                                                                   Bureau of the Fiscal Service
                                                             Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                         Fiscal Year: 2014                                  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              2014-SEPTEMBER        2013-SEPTEMBER
 SCNP            Accrual for non-entity amounts to be collected and     CF                    D                         (2,294)                6,209
                 transferred to the General Fund (RC 48)
                                                                                         Variance:                              0                    0

Trading                                                  2014-SEPTEMBER          2013-SEPTEMBER               Previously Reported    Line item Changes
Partner        Name                             Status
 9900 Treasury General Fund                                           (2,294)                        6,209                  6,209                    0
                                  Total                               (2,294)                        6,209                  6,209                    0


Agency FS Status CP Line Description                                    Account Type          NB              2014-SEPTEMBER        2013-SEPTEMBER
 SCNP            Non-entity collections transferred to the General      CF                    D                         39,911                48,681
                 Fund (RC 44)
                                                                                         Variance:                              0                    0

Trading                                                  2014-SEPTEMBER          2013-SEPTEMBER               Previously Reported    Line item Changes
Partner        Name                             Status
 9900 Treasury General Fund                                           39,911                         48,681                48,681                    0
                                  Total                               39,911                         48,681                48,681                    0




                                                                                - 12 -
                                                                U.S.Department of the Treasury                                      11-14-2014 18:13:47
                                                                  Bureau of the Fiscal Service
                                                            Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                        Fiscal Year: 2014                                  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               2014-SEPTEMBER         2013-SEPTEMBER
 SCNP            Nonexpenditure transfers-out of financing sources -   CF                   D                             0                   (3,857)
                 capital transfers (RC 11)
                                                                                       Variance:                               0                     0

Trading                                                  2014-SEPTEMBER         2013-SEPTEMBER               Previously Reported     Line item Changes
Partner       Name                              Status
 9100 Department of Education                                            0                         (3,857)                (3,857)                    0
                                  Total                                  0                         (3,857)                (3,857)                    0


Agency FS Status CP Line Description                                   Account Type         NB               2014-SEPTEMBER         2013-SEPTEMBER
 SCNP            Nonexpenditure transfers-out of unexpended            CF                   D                            375                     0
                 appropriations and financing sources (RC 08)
                                                                                       Variance:                               0                     0

Trading                                                  2014-SEPTEMBER         2013-SEPTEMBER               Previously Reported     Line item Changes
Partner       Name                              Status
 9100 Department of Education                                          375                              0                      0                     0
                                  Total                                375                              0                      0                     0




                                                                              - 13 -
                                                                U.S.Department of the Treasury                                        11-14-2014 18:13:47
                                                                  Bureau of the Fiscal Service
                                                            Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                           Fiscal Year: 2014                                  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              2014-SEPTEMBER        2013-SEPTEMBER
 SCNP            Appropriations received as adjusted (rescissions and     F                     C                         (5,000)               88,169
                 other adjustments) (RC 41)
                                                                                           Variance:                             0                     0

Trading                                                  2014-SEPTEMBER            2013-SEPTEMBER               Previously Reported    Line item Changes
Partner        Name                             Status
 9900 Treasury General Fund                                             (5,000)                        88,169                    0                88,169
                                  Total                                 5,000                      (88,169)                      0                88,169


Agency FS Status CP Line Description                                      Account Type          NB              2014-SEPTEMBER        2013-SEPTEMBER
 SCNP            Imputed financing source (RC 25)                         F                     C                            36                    34
                                                                                           Variance:                             0                     0

Trading         Name                            Status 2014-SEPTEMBER              2013-SEPTEMBER               Previously Reported    Line item Changes
Partner
 2400 Office of Personnel Management                                        36                            34                    34                     0
                                  Total                                    (36)                          (34)                  (34)                    0




                                                                                  - 14 -
                                                                U.S.Department of the Treasury                                      11-14-2014 18:13:47
                                                                  Bureau of the Fiscal Service
                                                            Governmentwide Financial Report System

                                                         GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                       Fiscal Year: 2014                                   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               2014-SEPTEMBER         2013-SEPTEMBER
 SCNP            Nonexpenditure transfers-in of financing sources -   F                     C                             0                   (3,880)
                 capital transfers (RC 11)
                                                                                       Variance:                               0                     0

Trading                                                  2014-SEPTEMBER        2013-SEPTEMBER                Previously Reported     Line item Changes
Partner       Name                              Status
 9100 Department of Education                                            0                         (3,880)                (3,880)                    0
                                  Total                                  0                         3,880                   3,880                     0


Agency FS Status CP Line Description                                  Account Type          NB               2014-SEPTEMBER         2013-SEPTEMBER
 SCNP            Nonexpenditure transfers-in of unexpended            F                     C                            451                     0
                 appropriations and financing sources (RC 08)
                                                                                       Variance:                               0                     0

Trading                                                  2014-SEPTEMBER        2013-SEPTEMBER                Previously Reported     Line item Changes
Partner       Name                              Status
 9100 Department of Education                                         451                               0                      0                     0
                                  Total                               (451)                             0                      0                     0




                                                                              - 15 -
                                                              U.S.Department of the Treasury                                       11-14-2014 18:13:47
                                                                Bureau of the Fiscal Service
                                                          Governmentwide Financial Report System

                                                      GF004F - Trading Partner Summary Note Report

Statement: STATEMENT OF CHANGES IN NET POSITION                      Fiscal Year: 2014                                   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               2014-SEPTEMBER         2013-SEPTEMBER
 SCNP            Other budgetary financing sources (RC 29) "G"       F                     C                          100,524                 3,859
                                                                                      Variance:                               0                     0

Trading        Name                             Status 2014-SEPTEMBER         2013-SEPTEMBER                Previously Reported     Line item Changes
Partner
 9900 Treasury General Fund                                      100,524                          3,859                   3,859                     0
                                  Total                          (100,524)                        (3,859)                (3,859)                    0




                                                                             - 16 -
                                                                                                                                                                                 11/14/2014 18:11:42

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

     Note: 01            Federal Reserve Earnings, Subsequent Events, and Other Pertinent Information                                 Fiscal Year: 2014         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        2014 - SEPTEMBER             2013 - SEPTEMBER                 Previously Rptd    Line Item Changes
 1              Related party        Debit
                receivables
 2              Related party        Credit
                payables
 3              Related party        Credit
                operating revenue
 4              Related party net    Debit
                cost of operations
 5              Related party        Debit
                economic
                dependency
                transactions
 6              Investments in       Debit
                related parties




                                                                                                           -1-
                                                                                                                                                                                            11/14/2014 18:11:42

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

     Note: 01         Federal Reserve Earnings, Subsequent Events, and Other Pertinent Information                                   Fiscal Year: 2014                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      None
                   Sheet but before the issuance of agency¿s audited financial statements that have a material
                   effect on the financial statements and, therefore, require adjustments or disclosure in the
                   statements.
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 Career, Technical, and Adult Education
                                                                                                                    (OCTAE), 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), as well as
                                                                                                                    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.
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.



                                                                                                            -2-
                                                                                                                                                                       11/14/2014 18:11:42

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

     Note: 01       Federal Reserve Earnings, Subsequent Events, and Other Pertinent Information                             Fiscal Year: 2014         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
13               Describe related party economic dependency (that is, major customers, suppliers,
                 franchisors, franchisees, distributors, general agents, borrowers, and lenders) relationships
                 and transactions included in the "Other Notes Info" tab, "Related party economic
                 dependency transactions" section.
14               Provide details on the investments in related parties.
15               Provide details on related party leases.
16               Describe control relationships with entities under common ownership, management control,
                 and conservatorship if the operating results or financial position could be significantly
                 impacted as a result of the relationship. Include control relationships with and without
                 transactions.
17               Provide any other useful information on related parties.




                                                                                                         -3-
                                                                                                                                                                                  11/14/2014 18:11:42

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

     Note: 02          Cash and Other Monetary Assets                                                                             Fiscal Year: 2014               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     2014 - SEPTEMBER       2013 - SEPTEMBER
                                                                              Type
Cash and other monetary assets                                         D        A                     1,471                   1,482
                                                                           Variance:                      0                       0           Rounding Method: Millions       Decimal: Zero
Line Status Line Description          2014 - SEPTEMBER           2013 - SEPTEMBER               Previously Rptd           Line Item Changes
 3          Other cash - not
            restricted
 4          Other cash - restricted                      1,471                      1,482                       1,482                              0
 7          Foreign currency
            Total                                        1,471                       1,482                        1,482                            0




                                                                                                   -4-
                                                                                                                                                                             11/14/2014 18:11:42

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

     Note: 02             Cash and Other Monetary Assets                                                                          Fiscal Year: 2014         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        2014 - SEPTEMBER             2013 - 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.




                                                                                                          -5-
                                                                                                                                                                                                  11/14/2014 18:11:42

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

     Note: 02          Cash and Other Monetary Assets                                                                                    Fiscal Year: 2014                 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: 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 assets of FFEL Guaranty Agency (GA)
                   held.                                                                                               Federal Funds, which are held by the GAs, but owned by the federal government.
4                  Is the reported restricted cash being held in a financial institution? If yes, is it a Treasury     The assets of Federal Funds held by the GAs consist of cash, short term Treasury
                   designated bank?                                                                                    securities, plant, property, and equipment, and other miscellaneous assets. Cash in
                                                                                                                       Federal Funds is required to be held in interest bearing accounts with no designation of
                                                                                                                       a specific financial institution.
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.




                                                                                                                -6-
                                                                                                                                                                                                      11/14/2014 18:11:42

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

     Note: 03           Accounts and Taxes Receivable                                                                                         Fiscal Year: 2014                 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     2014 - SEPTEMBER         2013 - SEPTEMBER
                                                                                      Type
Accounts and taxes receivable, net                                            D         A                          136                     121
                                                                                   Variance:                         0                       0          Rounding Method: Millions                Decimal: Zero
Line Status Line Description            2014 - SEPTEMBER               2013 - SEPTEMBER                   Previously Rptd           Line Item Changes
 1            Accounts receivable,                              324                            306                           306                               0
              gross
 2            Related interest
              receivable - accounts
              receivable
 3            Penalties, fines, and
              administrative fees
              receivable
 4            Less: allowance for                              -188                          -185                           -185                               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                                              136                           121                           121                               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.




                                                                                                             -7-
                                                                                                                                                                                             11/14/2014 18:11:42

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

      Note: 04A         Direct Loans Receivable, Net                                                                                 Fiscal Year: 2014                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     2014 - SEPTEMBER       2013 - SEPTEMBER
                                                                                  Type
Loans receivable, net                                                      D        A                   923,545               826,684
                                                                               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                     731,158                      -47,358                      778,516                   613,860                       -65,247                           679,107
             Loans
 4           Federal Family                                139,763                     -3,101                     142,864                    143,598                        -2,133                          145,731
             Education Loan
 15
 16          Health Education                                 471                          356                         115                            0                           0                              0
             Assistance Loan
             Program (HEAL)
 17          Facilities Loan                                 1,336                         209                      1,127                      1,221                           197                            1,024
             Program
 18          Federal Perkins and                              548                          161                         387                       523                           154                             369
             Other Loan Program
             Loan Receivables, Net
 19          Other Loans                                      656                          120                         536                       559                           106                             453
             Receivables : Teacher
             Education Assistance
             for College and Higher
             Education (TEACH)
             Grant Program
 20          All other loans
             receivable
             Total                                         873,932                    -49,613                     923,545                    759,761                       -66,923                          826,684
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 - Health Education Assistance Loan             Please provide explanations for any amounts that have             Acquisition of HEAL occurred in FY14 from HHS, who will report FY13
 Program (HEAL) (CY Face Value of loans outstanding)            changed by 10% or more and or greater than 500,000 between        amounts. Therefore, there will be no FY13 HEAL Program amounts reported
                                                                the current fiscal year and prior fiscal year. (Unaudited)        for ED.
 Line Item Notes - Health Education Assistance Loan             Please provide explanations for any amounts that have             Acquisition of HEAL occurred in FY14 from HHS, who will report FY13
 Program (HEAL) (CY Long-term cost of loans outstanding)        changed by 10% or more and or greater than 500,000 between        amounts. Therefore, there will be no FY13 HEAL Program amounts reported
                                                                the current fiscal year and prior fiscal year. (Unaudited)        for ED.




                                                                                                       -8-
                                                                                                                                                                                 11/14/2014 18:11:42

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

   Note: 04A          Direct Loans Receivable, Net                                                                          Fiscal Year: 2014                 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



Threshold

Line Description                                            Question                                                     Answer
Line Item Notes - Other Loans Receivables : Teacher         Please provide explanations for any amounts that have        The increase is due to TEACH loans disbursed during FY14, net of
Education Assistance for College and Higher Education       changed by 10% or more and or greater than 500,000 between   collections from borrowers.
(TEACH) Grant Program (CY Face Value of loans               the current fiscal year and prior fiscal year. (Unaudited)
outstanding)
Line Item Notes - Other Loans Receivables : Teacher         Please provide explanations for any amounts that have        The increase is primarily due to re-estimates.
Education Assistance for College and Higher Education       changed by 10% or more and or greater than 500,000 between
(TEACH) Grant Program (CY Long-term cost of loans           the current fiscal year and prior fiscal year. (Unaudited)
outstanding)




                                                                                                   -9-
                                                                                                                                                                                                  11/14/2014 18:11:42

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

     Note: 04A           Direct Loans Receivable, Net                                                                                       Fiscal Year: 2014                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       2014 - SEPTEMBER             2013 - SEPTEMBER                  Previously Rptd        Line Item Changes
 1             Federal Direct          Debit                       8,126                     -39,557                        -39,557                          0
               Students Loans
 4             Federal Family          Debit                      -1,956                        -921                          -921                           0
               Education Loan
15                                     Debit
16                                     Debit
17                                     Debit
18                                     Debit
19                                     Debit
20             All other loans         Debit                           0                            3                             3                          0
               receivable
21             Total                 N/A                           6,170                     -40,475                        -40,475                          0
Threshold
 Line Description                                                  Question                                                              Answer
 Other Notes Info - Federal Direct Students Loans (2014 -          Please provide explanations for any amounts that have                 The change is largely due to a net upward 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       2014 - SEPTEMBER             2013 - SEPTEMBER                  Previously Rptd        Line Item Changes
 1             Balances for            Debit
               property held Pre-
               1992
 2             Balances for            Debit
               property held Post-
               1991




                                                                                                            - 10 -
                                                                                                                                                                                                 11/14/2014 18:11:42

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

   Note: 04A        Direct Loans Receivable, Net                                                                                     Fiscal Year: 2014                   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


                                                                                                        - 11 -
                                                                                                                                                                                        11/14/2014 18:11:42

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

   Note: 04A        Direct Loans Receivable, Net                                                                                Fiscal Year: 2014                 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).




                                                                                                - 12 -
                                                                                                                                                                                  11/14/2014 18:11:42

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

      Note: 04B          Loan Guarantees                                                                                          Fiscal Year: 2014               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     2014 - SEPTEMBER       2013 - SEPTEMBER
                                                                                 Type
Loan guarantee liabilities                                                C        L                          0                  0
                                                                              Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description           2014 - SEPTEMBER             2013 - SEPTEMBER               Previously Rptd        Line Item Changes
 1            Federal Family                                    0                          0                                                       0
              Education Loans
 13           Health Education                                  0                          0                                                       0
              Assistance Loan
              Program
 14
 15
 16
 17
 18          All other loan
             guarantee liabilities
             Total                                              0                           0                                                      0




                                                                                                     - 13 -
                                                                                                                                                                                    11/14/2014 18:11:42

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

     Note: 04B           Loan Guarantees                                                                                              Fiscal Year: 2014           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                     241,562                    236,488                     -4,629                   263,984               258,434                    -7,832
               Education Loans
12                                     N/A
13                                     N/A
14                                     N/A
15                                     N/A
16                                     N/A
17             All other loans         N/A
               guarantee liabilities
18             Total:                  N/A                     241,562                    236,488                     -4,629                   263,984               258,434                    -7,832




                                                                                                       - 14 -
                                                                                                                                                                                                  11/14/2014 18:11:42

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

   Note: 04B        Loan Guarantees                                                                                                  Fiscal Year: 2014                   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



                                                                                                         - 15 -
                                                                                                                                                                                          11/14/2014 18:11:42

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

   Note: 04B        Loan Guarantees                                                                                              Fiscal Year: 2014                 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.




                                                                                                - 16 -
                                                                                                                                                                                 11/14/2014 18:11:42

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

     Note: 05           Inventories and Related Property                                                                         Fiscal Year: 2014               Period: SEPTEMBER
   Entity: 9100         Department of Education                                                                                  Agency Notes:      N/A

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

Tab: Line Item Notes
Closing Package Line Description                                        NB    Account     2014 - SEPTEMBER       2013 - SEPTEMBER
                                                                                Type
Inventories and related property, net                                    D        A                          0                  0
                                                                             Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description            2014 - SEPTEMBER          2013 - 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




                                                                                                    - 17 -
                                                                                                                                                                               11/14/2014 18:11:42

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

     Note: 05             Inventories and Related Property                                                                             Fiscal Year: 2014      Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                      Agency Notes:    N/A

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

Tab: Other Notes Info.

       Section: A               Section Name: Inventory Year-end Balances by Category Type               No Data Flag: YES         Line Attributes: Dollars
                                                                                                                                 Rounding Method: Millions             Decimal: Zero
Line Status Line Description             NB        2014 - SEPTEMBER             2013 - 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




                                                                                                           - 18 -
                                                                                                                                                                                11/14/2014 18:11:42

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

     Note: 05            Inventories and Related Property                                                                           Fiscal Year: 2014         Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                    Agency Notes:    N/A

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


       Section: B              Section Name: Capitalized Acquitions From Government Agencies          No Data Flag: YES         Line Attributes: Dollars
                                             by Trading Patrner                                                               Rounding Method: Millions                Decimal: Zero
Line Status Line Description           NB       2014 - SEPTEMBER             2013 - 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       2014 - SEPTEMBER             2013 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Seized property       Debit
 2              Forfeited property    Debit
 3              Goods held under      Debit
                price support and
                stabilization
                programs




                                                                                                        - 19 -
                                                                                                                                                                               11/14/2014 18:11:42

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

     Note: 05            Inventories and Related Property                                                                               Fiscal Year: 2014      Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                       Agency Notes:    N/A

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


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


Line Status Line Description          NB      2014 - SEPTEMBER                2013 - 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.




                                                                                                            - 20 -
                                                                                                                                                                                   11/14/2014 18:11:42

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

     Note: 06          Property, Plant, and Equipment                                                                           Fiscal Year: 2014                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     2014 - SEPTEMBER       2013 - SEPTEMBER
                                                                               Type
Property, plant and equipment, net                                      D        A                          7                  2
                                                                            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           Balance beginning of                          180                        178                             2                       179                        172                        7
             year
 2           Prior-period
             adjustments (not
             restated)
 3           Capitalized                                      4                          0                            4                          1                         0                        1
             acquisitions from the
             public
 4           Capitalized
             acquisitions from
             government agencies
 5           Deletions from the
             Balance Sheet,
             including deletions
             related to partial
             impairment of PP&E
             (for early
             implementation of
             SFFAS44)
 6           Revaluations
 7           Stewardship
             reclassifications
 8           Depreciation/amortizati                          0                         -1                            1                          0                         6                       -6
             on
             Total                                          184                         177                           7                        180                       178                        2




                                                                                                   - 21 -
                                                                                                                                                                                        11/14/2014 18:11:42

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

     Note: 06              Property, Plant, and Equipment                                                                                Fiscal Year: 2014             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       2014 - SEPTEMBER             2013 - 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                         181                        177                         177                          0
                software
 6              Assets under            Debit
                capital lease
 7              Leasehold               Debit
                improvements
 8              Other property,         Debit
                plant and
                equipment
 9              Total property,         N/A                           184                        180                         180                          0
                plant and
                equipment




                                                                                                          - 22 -
                                                                                                                                                                                          11/14/2014 18:11:42

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

     Note: 06             Property, Plant, and Equipment                                                                                   Fiscal Year: 2014             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        2014 - SEPTEMBER             2013 - 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                         174                        175                          175                          0
                software
 4              Assets under            Credit
                capital lease
 5              Leasehold               Credit
                improvements
 6              Other property,         Credit
                plant, and
                equipment
 7              Total accumulated        N/A                         -177                       -178                          -178                          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        2014 - SEPTEMBER             2013 - SEPTEMBER               Previously Rptd        Line Item Changes
 1              General Services        Debit
                Administration
 2              Department of           Debit
                Defense
 3              Department of the       Debit
                Interior
 4              Department of           Debit
                Justice
 5              National                Debit
                Aeronautics and
                Space
                Administration



                                                                                                           - 23 -
                                                                                                                                                                                                   11/14/2014 18:11:42

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

     Note: 06            Property, Plant, and Equipment                                                                                    Fiscal Year: 2014                 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        2014 - SEPTEMBER             2013 - 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        2014 - SEPTEMBER             2013 - 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                   For early implementers of SFFAS 42, provide a general description of what constitutes
                     general PP&E impairment. Include a general description of the PP&E remaining in use and
                     the nature of the impairment (SFFAS44, par. 26a).
 3                   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.



                                                                                                           - 24 -
                                                                                                                                                                                   11/14/2014 18:11:42

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

     Note: 07             Debt and Equity Securities                                                                               Fiscal Year: 2014               Period: SEPTEMBER
   Entity: 9100           Department of Education                                                                                  Agency Notes:      N/A

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

Tab: Line Item Notes
Closing Package Line Description                                          NB    Account     2014 - SEPTEMBER       2013 - SEPTEMBER
                                                                                  Type
Debt and equity securities                                                 D        A                          0                  0
                                                                               Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description              2014 - SEPTEMBER          2013 - 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



                                                                                                      - 25 -
                                                                                                                                                                       11/14/2014 18:11:42

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

     Note: 07            Debt and Equity Securities                                                                             Fiscal Year: 2014      Period: SEPTEMBER
   Entity: 9100          Department of Education                                                                                Agency Notes:    N/A

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


Line Status Line Description            2014 - SEPTEMBER           2013 - SEPTEMBER                Previously Rptd      Line Item Changes
            Securities
 9          Other
            Total




                                                                                                     - 26 -
                                                                                                                                                                                   11/14/2014 18:11:42

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

     Note: 07             Debt and Equity Securities                                                                                Fiscal Year: 2014             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    N/A

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

Tab: Other Notes Info.

       Section: A               Section Name: Investment Category - Held-to-Maturity Securities       No Data Flag: YES         Line Attributes: Dollars
                                                                                                                              Rounding Method: Millions                    Decimal: Zero
Line Status Line Description            NB       CY Basis (Costs) D              CY Unamortized           CY Net Investment     PY Basis (Costs) D             PY Unamortized     PY Net Investment
                                                                             Premium/Discount D                                                            Premium/Discount D
 1              Fixed/Debt              N/A
                Securities: Non-
                U.S. Government
                securities
 2              Fixed/Debt              N/A
                Securities: Non-
                U.S. Commercial
                securities
 3              Fixed/Debt              N/A
                Securities:
                Mortgage/asset
                backed securities
 4              Fixed/Debt              N/A
                Securities:
                Corporate and
                other bonds
 5              Fixed/Debt              N/A
                Securities: 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




                                                                                                        - 27 -
                                                                                                                                                                                     11/14/2014 18:11:42

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

     Note: 07             Debt and Equity Securities                                                                                Fiscal Year: 2014             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    N/A

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


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




                                                                                                        - 28 -
                                                                                                                                                                                     11/14/2014 18:11:42

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

     Note: 07             Debt and Equity Securities                                                                                Fiscal Year: 2014             Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                   Agency Notes:    N/A

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


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




                                                                                                        - 29 -
                                                                                                                                                                             11/14/2014 18:11:42

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

     Note: 07             Debt and Equity Securities                                                                                 Fiscal Year: 2014      Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                    Agency Notes:    N/A

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


       Section: D              Section Name: Other Information                                         No Data Flag: YES         Line Attributes: Dollars
                                                                                                                               Rounding Method: Millions             Decimal: Zero
Line Status Line Description           NB        2014 - SEPTEMBER             2013 - 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



                                                                                                         - 30 -
                                                                                                                                                                               11/14/2014 18:11:42

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

     Note: 07             Debt and Equity Securities                                                                                   Fiscal Year: 2014      Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                     Agency Notes:    N/A

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


       Section: D               Section Name: Other Information                                          No Data Flag: YES         Line Attributes: Dollars
                                                                                                                                 Rounding Method: Millions             Decimal: Zero
Line Status Line Description             NB        2014 - SEPTEMBER             2013 - 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




                                                                                                           - 31 -
                                                                                                                                                                        11/14/2014 18:11:42

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

    Note: 07          Debt and Equity Securities                                                                                 Fiscal Year: 2014      Period: SEPTEMBER
    Entity: 9100       Department of Education                                                                                   Agency Notes:    N/A

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

Tab: Text Data                        No Data Flag: YES
Line               Question                                                                                          Answer
1                  Provide a 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.




                                                                                                           - 32 -
                                                                                                                                                                                                        11/14/2014 18:11:42

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

     Note: 08           Other Assets                                                                                                            Fiscal Year: 2014                 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      2014 - SEPTEMBER           2013 - SEPTEMBER
                                                                                       Type
Other assets                                                                   D         A                              13                    13
                                                                                    Variance:                            0                     0          Rounding Method: Millions                Decimal: Zero
Line Status Line Description             2014 - SEPTEMBER               2013 - SEPTEMBER                   Previously Rptd            Line Item Changes
 1             Advances and                                        0                              6                              6                               0
               prepayments
 4             Regulatory assets
 5             Derivative assets
 6             Other assets                                       13                               7                             7                               0
               Total                                              13                              13                            13                               0
Threshold

 Line Description                                                  Question                                                                  Answer
 Line Item Notes - Advances and prepayments (2013 -                Please provide explanations for any amounts that have                     The decrease is primarily due to the winding down of ARRA and Education
 SEPTEMBER)                                                        changed by 10% or more and or greater than 500,000 between                Jobs Fund appropriations.
                                                                   the current fiscal year and prior fiscal year. (Unaudited)
 Line Item Notes - Other assets (2014 - SEPTEMBER)                 Please provide explanations for any amounts that have                     The increase is due to an increase in in-process invoices for FFEL interest
                                                                   changed by 10% or more and or greater than 500,000 between                benefits.
                                                                   the current fiscal year and prior fiscal year. (Unaudited)
 Line Item Notes - Other assets (2013 - SEPTEMBER)                 Please provide explanations for any amounts that have                     The increase is due to an increase in in-process invoices for FFEL interest
                                                                   changed by 10% or more and or greater than 500,000 between                benefits.
                                                                   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.




                                                                                                              - 33 -
                                                                                                                                                                                  11/14/2014 18:11:42

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

     Note: 09          Accounts Payable                                                                                           Fiscal Year: 2014               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     2014 - SEPTEMBER       2013 - SEPTEMBER
                                                                                Type
Accounts payable                                                         C        L                     4,000                 4,127
                                                                             Variance:                      0                     0           Rounding Method: Millions       Decimal: Zero
Line Status Line Description         2014 - SEPTEMBER             2013 - SEPTEMBER                Previously Rptd         Line Item Changes
 1          Accounts Payable                              4,000                       4,127                       4,127                            0
            Total                                         4,000                       4,127                       4,127                            0




                                                                                                    - 34 -
                                                                                                                                                                                     11/14/2014 18:11:42

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

     Note: 09            Accounts Payable                                                                                                 Fiscal Year: 2014         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        2014 - SEPTEMBER             2013 - 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.




                                                                                                             - 35 -
                                                                                                                                                                                   11/14/2014 18:11:42

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

     Note: 10B          Treasury securities held by the Government trust, revolving, and special funds                             Fiscal Year: 2014            Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                    Agency Notes:    N/A

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

Tab: Other Notes Info.

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

Line Status Line Description         NB            PY Unamortized             PY Net Investment
                                                      premium D
23                                   N/A
24                                   N/A
25                                   N/A
26             All other programs    N/A
               and funds
27             Total                 N/A
       Section: B            Section Name: Fiduciary Funds - Tresury Securities Held by Deposit          No Data Flag: YES     Line Attributes: Dollars
                                           Funds (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        I                         N/A
 2        I                         N/A
 3        I                         N/A
 4        I                         N/A
 5        I                         N/A
 6        I                         N/A
 7        I                         N/A
 8        I                         N/A
 9        I                         N/A
10        I                         N/A
11        I                         N/A
12        I                         N/A



                                                                                                           - 36 -
                                                                                                                                                                                11/14/2014 18:11:42

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

     Note: 10B       Treasury securities held by the Government trust, revolving, and special funds                             Fiscal Year: 2014            Period: SEPTEMBER
  Entity: 9100       Department of Education                                                                                    Agency Notes:    N/A

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


      Section: B          Section Name: Fiduciary Funds - Tresury Securities Held by Deposit          No Data Flag: YES     Line Attributes: Dollars
                                        Funds (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      I                        N/A
14      I                        N/A
15      I                        N/A
16           Total               N/A

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




                                                                                                        - 37 -
                                                                                                                                                                                  11/14/2014 18:11:42

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

     Note: 10B         Treasury securities held by the Government trust, revolving, and special funds                             Fiscal Year: 2014            Period: SEPTEMBER
     Entity: 9100      Department of Education                                                                                    Agency Notes:    N/A

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


       Section: C           Section Name: 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        I                        N/A
 2        I                        N/A
 3        I                        N/A
 4        I                        N/A
 5        I                        N/A
 6        I                        N/A
 7        I                        N/A
 8        I                        N/A
 9        I                        N/A
10        I                        N/A
11        I                        N/A
12        I                        N/A
13        I                        N/A
14        I                        N/A
15        I                        N/A
16             Total               N/A




                                                                                                          - 38 -
                                                                                                                                                                                11/14/2014 18:11:42

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

   Note: 10B           Treasury securities held by the Government trust, revolving, and special funds                                   Fiscal Year: 2014      Period: SEPTEMBER
  Entity: 9100          Department of Education                                                                                         Agency Notes:    N/A

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


    Section: C               Section Name: 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     I                             N/A
 2     I                             N/A
 3     I                             N/A
 4     I                             N/A
 5     I                             N/A
 6     I                             N/A
 7     I                             N/A
 8     I                             N/A
 9     I                             N/A
10     I                             N/A
11     I                             N/A
12     I                             N/A
13     I                             N/A
14     I                             N/A
15     I                             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.




                                                                                                            - 39 -
                                                                                                                                                                                        11/14/2014 18:11:42

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

     Note: 11          Federal Employee and Veteran Benefits Payable                                                              Fiscal Year: 2014               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    2014 - SEPTEMBER       2013 - SEPTEMBER
                                                                               Type
Federal employee and veteran benefits payable                          C         L                         2                    15
                                                                            Variance:                      0                     0            Rounding Method: Millions            Decimal: Zero
Line Status Line Description         2014 - SEPTEMBER             2013 - 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                                    2                          15                           15                            0
 6          Liability for other
            retirement and
            postemployment
            benefits
            Total                                             2                         15                           15                            0
Threshold

 Line Description                                           Question                                                           Answer
 Line Item Notes - FECA Benefits (2014 - SEPTEMBER)         Please provide explanations for any amounts that have              The decrease is a data entry error between thousands and millions.
                                                            changed by 10% or more and or greater than 500,000 between
                                                            the current fiscal year and prior fiscal year. (unaudited)




                                                                                                  - 40 -
                                                                                                                                                                                   11/14/2014 18:11:42

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

     Note: 11             Federal Employee and Veteran Benefits Payable                                                                Fiscal Year: 2014          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        2014 - SEPTEMBER             2013 - 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



                                                                                                           - 41 -
                                                                                                                                                                              11/14/2014 18:11:42

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

     Note: 11            Federal Employee and Veteran Benefits Payable                                                            Fiscal Year: 2014          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      2014 - SEPTEMBER             2013 - 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      2014 - SEPTEMBER             2013 - 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)
 4              CSRS - rate of        N/A
                interest (OPM only)
 5              CSRS - rate of        N/A
                inflation (OPM
                only)
 6              CSRS - projected      N/A
                salary increases
                (OPM only)
 7              CSRS - cost of        N/A
                living adjustment
                (OPM only)
 8              FERS - rate of        N/A
                interest (OPM only)
 9              FERS - rate of        N/A
                inflation (OPM
                only)
10              FERS - projected      N/A
                salary increases
                (OPM only)


                                                                                                      - 42 -
                                                                                                                                                                                   11/14/2014 18:11:42

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

     Note: 11              Federal Employee and Veteran Benefits Payable                                                               Fiscal Year: 2014          Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                     Agency Notes:    Note 11

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


       Section: B                Section Name: Pension Liability Long-Term Significant Assumptions       No Data Flag: YES         Line Attributes: Percent
                                               Used in the Current FY and Prior FY Valuation
Line Status Line Description             NB        2014 - SEPTEMBER             2013 - SEPTEMBER               Previously Rptd    Line Item Changes
11              FERS - cost of           N/A
                living adjustment
                (OPM only)




       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        2014 - SEPTEMBER             2013 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Postretirement          Credit
                health and accrued
                benefits liability-
                beginning of period
                (SFFAS No. 5,
                par.88)
 2              Prior-period            Credit
                adjustments (not
                restated)
 3              Prior (and past)        Credit
                service costs from
                plan amendments
                (or the initiation of
                a new plan) during
                the period
 4              Normal costs            Credit
 5              Interest on liability   Credit
 6              Actuarial            Credit
                (gains)/losses (from
                experience)
 7              Actuarial            Credit
                (gains)/losses (from
                assumption
                changes)
 8              Other                Credit
 9              Total                    N/A


                                                                                                           - 43 -
                                                                                                                                                                                 11/14/2014 18:11:42

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

     Note: 11             Federal Employee and Veteran Benefits Payable                                                             Fiscal Year: 2014          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       2014 - SEPTEMBER             2013 - SEPTEMBER               Previously Rptd    Line Item Changes
                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       2014 - SEPTEMBER             2013 - 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



       Section: F              Section Name: Other                                                    No Data Flag: YES         Line Attributes: Dollars
                                                                                                                              Rounding Method: User-Defined             Decimal: User-Defined
Line Status Line Description           NB       2014 - SEPTEMBER             2013 - 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



                                                                                                        - 44 -
                                                                                                                                                                                    11/14/2014 18:11:42

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

     Note: 11               Federal Employee and Veteran Benefits Payable                                                              Fiscal Year: 2014          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        2014 - SEPTEMBER             2013 - SEPTEMBER               Previously Rptd    Line Item Changes
                in line 2
 4              Total assets of         Debit
                other retirement
                benefit plans
                (SFFAS No. 5, par.
                85)
 5              Market value of         Debit
                investments in
                market-based and
                marketable
                securities included
                in line 4 (SFFAS
                no. 5, par.85)
 6              Projected future        Credit
                payments for
                pension benefits
                (VA only)
 7              Average medical         Credit
                cost per year (VA
                only)
       Section: L               Section Name: Civilian Life Insurance and Accrued Benefits               No Data Flag: YES         Line Attributes: Dollars
                                                                                                                                 Rounding Method: Millions                 Decimal: Zero
Line Status Line Description             NB        2014 - SEPTEMBER             2013 - SEPTEMBER               Previously Rptd    Line Item Changes
 1              Actuarial accrued       Credit
                life insurance
                benefits liability-
                beginning of period
 2              Prior-period            Credit
                adjustments (not
                restated)
 3              Prior (and past)         N/A
                service costs from
                plan amendments
                (or the initiation of
                a new plan) during
                the period
 4              New entrant             Credit
                expense
 5              Interest on life        Credit


                                                                                                           - 45 -
                                                                                                                                                                                 11/14/2014 18:11:42

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

     Note: 11              Federal Employee and Veteran Benefits Payable                                                             Fiscal Year: 2014          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: L                Section Name: Civilian Life Insurance and Accrued Benefits            No Data Flag: YES         Line Attributes: Dollars
                                                                                                                               Rounding Method: Millions                 Decimal: Zero
Line Status Line Description            NB       2014 - SEPTEMBER               2013 - SEPTEMBER             Previously Rptd    Line Item Changes
                insurance liability
                during the period
 6              Actuarial            Credit
                (gains)/losses (from
                experience)
                (SFFAS No. 33,
                par. 22)
 7              Actuarial            Credit
                (gains)/losses (from
                assumption
                changes) (SFFAS
                No. 33, par. 22)
 8              Other                Credit
 9              Total life insurance    N/A
                expense
10              Less costs paid        Debit
11              Actuarial accrued       N/A
                life insurance
                benefits liability -
                end of period
       Section: M                Section Name: Civilian Actuarial Life Insurance Liability             No Data Flag: YES         Line Attributes: Percent


Line Status Line Description            NB       2014 - SEPTEMBER               2013 - SEPTEMBER             Previously Rptd    Line Item Changes
 1              Rate of interest        N/A
 2              Rate of increases       N/A
                in salary




                                                                                                         - 46 -
                                                                                                                                                                             11/14/2014 18:11:42

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

     Note: 11          Federal Employee and Veteran Benefits Payable                                                              Fiscal Year: 2014          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).
7                  Provide the reason for significant changes in the actuarial liability for the DOD Military
                   Retirement Fund for the
                   current FY (DOD only). Describe those that relate to significant changes in assumptions, if
                   any (SFFAS No. 33,
                   par. 19).
8                  Provide the reason for significant changes in the actuarial liability for the DOD Medicare
                   Eligible Retiree Health
                   Care Fund (DOD only). Describe those that relate to significant changes in assumptions, if
                   any (SFFAS No. 33, par.
                   19).
9                  Provide the reason for significant changes in the actuarial liability for veterans compensation
                   and burial benefits
                   (VA only). Describe those that relate to significant changes in assumptions, if any (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.
15                 Provide the source(s) for workers' compensation benefits entered in Sections N and O (to be
                   completed only by DOL).


                                                                                                             - 47 -
                                                                                                                                                                         11/14/2014 18:11:42

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

     Note: 11       Federal Employee and Veteran Benefits Payable                                                             Fiscal Year: 2014          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
Line             Question                                                                                         Answer
16               Provide the source(s) for the life insurance benefits entered in Section P (to be completed
                 only by VA).
17               Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                 the significant
                 accounting policies pertaining to this note.




                                                                                                         - 48 -
                                                                                                                                                                                  11/14/2014 18:11:42

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

      Note: 12          Environmental and Disposal Liabilities                                                                    Fiscal Year: 2014               Period: SEPTEMBER
   Entity: 9100          Department of Education                                                                                  Agency Notes:      N/A

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

Tab: Line Item Notes
Closing Package Line Description                                         NB    Account     2014 - SEPTEMBER       2013 - SEPTEMBER
                                                                                 Type
Environmental and disposal liabilities                                    C        L                          0                  0
                                                                              Variance:                       0                  0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description             2014 - SEPTEMBER          2013 - SEPTEMBER                Previously Rptd        Line Item Changes
  9
 10
 11
 12
 13
 14          Other Environmental
             and Disposal Liabilities
             Total




                                                                                                     - 49 -
                                                                                                                                                                                     11/14/2014 18:11:42

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

     Note: 12          Environmental and Disposal Liabilities                                                                           Fiscal Year: 2014          Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                         Agency Notes:    N/A

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

Tab: Other Notes Info.

       Section: A            Section Name: Other Related Information                                    No Data Flag: YES            Line Attributes: Dollars
                                                                                                                                   Rounding Method: User-Defined            Decimal: User-Defined
Line Status Line Description         NB       2014 - SEPTEMBER               2013 - SEPTEMBER                   Previously Rptd     Line Item Changes
 1          Unrecognized            Debit
            portion of
            estimated total
            cleanup costs
            associated with
            general property,
            plant, and
            equipment
 2          Unrecognized            Debit
            portion of est total
            asbestos-related
            cleanup costs
            assoc with gen
            PP&E SFFAS No6
            par 109 Bulletin
            2006-1
 3          Asbestos-related        Debit
            environmental and
            disposal liability
            (Technical Bulletin
            2006-1)
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.




                                                                                                           - 50 -
                                                                                                                                                                                           11/14/2014 18:11:42

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

     Note: 13          Benefits Due and Payable                                                                                            Fiscal Year: 2014               Period: SEPTEMBER
   Entity: 9100        Department of Education                                                                                             Agency Notes:      N/A

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

Tab: Line Item Notes
Closing Package Line Description                                            NB    Account     2014 - SEPTEMBER          2013 - SEPTEMBER
                                                                                    Type
Benefits due and payable                                                    C         L                             0                     0
                                                                                 Variance:                          0                     0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description           2014 - SEPTEMBER              2013 - 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.




                                                                                                          - 51 -
                                                                                                                                                                                              11/14/2014 18:11:42

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

     Note: 14            Insurance and Guarantee Program Liabilities                                                                          Fiscal Year: 2014               Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                             Agency Notes:      N/A

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

Tab: Line Item Notes
Closing Package Line Description                                               NB    Account      2014 - SEPTEMBER         2013 - SEPTEMBER
                                                                                       Type
Insurance and guarantee program liabilities                                     C        L                             0                     0
                                                                                    Variance:                          0                     0            Rounding Method: Millions       Decimal: Zero
Line Status Line Description              2014 - SEPTEMBER              2013 - 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.




                                                                                                              - 52 -
                                                                                                                                                                                               11/14/2014 18:11:42

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

      Note: 15             Other Liabilities                                                                                               Fiscal Year: 2014                   Period: SEPTEMBER
   Entity: 9100            Department of Education                                                                                         Agency Notes:        Note 11 & 12

  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     2014 - SEPTEMBER       2013 - SEPTEMBER
                                                                                       Type
Other liabilities                                                               C        L                     2,662                   2,302
                                                                                    Variance:                      0                       0           Rounding Method: Millions           Decimal: Zero
Line Status Line Description                   2014 - SEPTEMBER           2013 - SEPTEMBER               Previously Rptd           Line Item Changes
  1              Deferred revenue                                   50                          31                            31                            0
  2              Accrued wages and                                  13                          28                            28                            0
                 benefits
  4              Other debt
  6              Legal and other
                 contingencies
  7              Grant payments due to                            2,487                      2,170                       2,170                              0
                 State and local
                 governments and
                 others
  8              Other employee and
                 actuarial liabilities
 10              D.C. pension liability
 11              Custodial liabilities
 12              Accrued annual leave                               38                          36                            36                            0
 14              Advances and
                 prepayments
 15              Farm and other
                 subsidies
 16              Deposit funds                                      74                          37                            37                            0
 17              Bonneville Power
                 Administration non-
                 federal power projects
                 as well as capital lease
                 liabilities and disposal
                 liabilities
 18              Derivative liabilities
 19
 20
 21
 22            Other Liabilities
               Total                                              2,662                       2,302                        2,302                            0




                                                                                                           - 53 -
                                                                                                                                                                                        11/14/2014 18:11:42

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

   Note: 15           Other Liabilities                                                                                       Fiscal Year: 2014                  Period: SEPTEMBER
  Entity: 9100        Department of Education                                                                                 Agency Notes:       Note 11 & 12

 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 (2014 - SEPTEMBER)         Please provide explanations for any amounts that have        The increase is primarily the result of an increase of in process collections of
                                                              changed by 10% or more and or greater than 500,000 between   negative special allowance.
                                                              the current fiscal year and prior fiscal year. (Unaudited)
Line Item Notes - Accrued wages and benefits (2014 -          Please provide explanations for any amounts that have        The decrease is primarily due to a reduction in wage base pay.
SEPTEMBER)                                                    changed by 10% or more and or greater than 500,000 between
                                                              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 (2014 - 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)   increase 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.
Line Item Notes - Deposit funds (2014 - SEPTEMBER)            Please provide explanations for any amounts that have        The increase is due to a change in deposit account collections.
                                                              changed by 10% or more and or greater than 500,000 between
                                                              the current fiscal year and prior fiscal year. (Unaudited)




                                                                                                    - 54 -
                                                                                                                                                                                                           11/14/2014 18:11:42

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

     Note: 15            Other Liabilities                                                                                                   Fiscal Year: 2014                    Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                              Agency Notes:        Note 11 & 12

  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       2014 - SEPTEMBER               2013 - SEPTEMBER             Previously Reported
 8              Grant payments       Credit                       2,487                         2,170
                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.




                                                                                                             - 55 -
                                                                                                                                                                      11/14/2014 18:11:42

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

     Note: 17            Prior-Period Adjustments                                                                             Fiscal Year: 2014      Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                              Agency Notes:    N/A

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

Tab: Other Notes Info.

       Section: A             Section Name: Non-Federal Prior-Period Adjustments - 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                                   Line Attributes: Dollars
                                                                                                                        Rounding Method: Millions             Decimal: Zero
Line Status Line Description         NB                Amount C
 1              Beginning Net        N/A                         918
                Position Balance
 2              Beginning Net        N/A                       -918
                Position Balance
 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                           0




                                                                                                     - 56 -
                                                                                                                                                                     11/14/2014 18:11:42

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

     Note: 17           Prior-Period Adjustments                                                                             Fiscal Year: 2014      Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                              Agency Notes:    N/A

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


       Section: C            Section Name: 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




                                                                                                    - 57 -
                                                                                                                                                                     11/14/2014 18:11:42

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

     Note: 17           Prior-Period Adjustments                                                                             Fiscal Year: 2014      Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                              Agency Notes:    N/A

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


       Section: E            Section Name: 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




                                                                                                    - 58 -
                                                                                                                                                                                               11/14/2014 18:11:42

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

     Note: 17          Prior-Period Adjustments                                                                                           Fiscal Year: 2014               Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                           Agency Notes:     N/A

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


       Section: G            Section Name: Closing Package Adjustments                                   No Data Flag: YES            Line Attributes: Dollars
                                                                                                                                    Rounding Method: Millions                         Decimal: Zero
Line Status Line Description         NB                  Amount C
 1                                   N/A
 2                                   N/A
 3                                   N/A
 4                                   N/A
 5                                   N/A
 6                                   N/A
 7                                   N/A
 8                                   N/A
 9                                   N/A
10                                   N/A
11          Total                    N/A
Tab: Text Data
 Line               Question                                                                                             Answer
 1                  Describe the restatements to the prior year that resulted from correcting errors that occurred       This amount represents an adjustment caused by a negative Treasury warrant.
                    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 reclassifications/adjustments of the previous year (2011) reporting in this year's
                    (2012) Closing Package (data reported in Section G). Exclude amounts reported as
                    restatements in Section A and B.
 5                  Describe the adjustments to the current-year or prior-year beginning net position that
                    resulted from changes in accounting principles as reported on the Reclassified Statement of
                    Changes in Net Position, line 2.1 and/or line 3.1.
 6                  Provide any other relevant information pertaining to this note. At a minimum, describe briefly
                    the significant accounting policies pertaining to this note.




                                                                                                            - 59 -
                                                                                                                                                                                    11/14/2014 18:11:42

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

     Note: 18              Contingencies (SFFAS Nos. 5 and 12)                                                                       Fiscal Year: 2014           Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                   Agency Notes:    Note 19

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

Tab: Other Notes Info.

       Section: A              Section Name: Insurance Contingencies (Reasonably Possible Only)       No Data Flag: YES          Line Attributes: Dollars
                                                                                                                               Rounding Method: User-Defined               Decimal: User-Defined
Line Status Line Description           NB       2014 - SEPTEMBER             2013 - 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       2014 - SEPTEMBER             2013 - 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                 No Data Flag: YES          Line Attributes: Dollars
                                                                                                                               Rounding Method: User-Defined               Decimal: User-Defined
Line Status Line Description           NB       CYAccrued/Estimated      CY Estimated Range(Low           CY Estimated Range CY Claim amount(Unable       PYAccrued/Estimated PY Estimated Range(Low
                                                          amount                          end)                   (High end)      to determine loss)      amount rued/Estimated                 end)
                                                                                                                                                                     amount
 1              Probable             Credit
 2              Reasonably           Credit
                Possible
Line Status Line Description           NB        PY Estimated Range        PY Claim amunt (unable
                                                         (High end)                to determine)
 1              Probable             Credit
 2              Reasonably           Credit
                Possible


                                                                                                        - 60 -
                                                                                                                                                                                                       11/14/2014 18:11:42

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

     Note: 18              Contingencies (SFFAS Nos. 5 and 12)                                                                                 Fiscal Year: 2014                 Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                             Agency Notes:      Note 19

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


       Section: D              Section Name: 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.




                                                                                                              - 61 -
                                                                                                                                                                                                11/14/2014 18:11:42

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

     Note: 19              Commitments                                                                                                    Fiscal Year: 2014                  Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                        Agency Notes:        Note 7 & 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                           537                          0                        562                          0
 2            Undelivered orders Credit                                   0                   130,221                           0                  215,604
Threshold
 Line Description                                                   Question                                                           Answer
 Other Notes Info - Undelivered orders (CY Non-Federal)             Please provide explanations for any amounts that have              The decrease is due to the recovery of prior year obligations and the
                                                                    changed by 10% or more and or greater than $500,000                cancellation of unused borrowing authority in the FFEL ABCP Conduit.
                                                                    between the current fiscal year and prior fiscal year.
                                                                    (unaudited)



                                                                                                             - 62 -
                                                                                                                                                                                                       11/14/2014 18:11:42

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

     Note: 19              Commitments                                                                                                         Fiscal Year: 2014                 Period: SEPTEMBER
     Entity: 9100          Department of Education                                                                                             Agency Notes:      Note 7 & 16

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


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


Tab: Text Data
 Line                   Question                                                                                             Answer
 1                      Describe the lessee's leasing arrangements including the basis on which contingent rental            The Department leases office space from the General Services Administration (GSA).
                        payments are determined, the existence and terms of renewal or purchase options,                     The lease contracts with GSA for privately and publicly owned buildings are operating
                        escalation clauses and restrictions imposed by lease agreements.                                     leases. Future lease payments are not accrued as liabilities, but expensed as incurred.
 2                      Provide any other relevant information pertaining to this note. 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). At a minimum, describe briefly the significant accounting
                        policies pertaining to this note.




                                                                                                              - 63 -
                                                                                                                                                                                           11/14/2014 18:11:42

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

     Note: 22             Funds From Dedicated Collections                                                                            Fiscal Year: 2014                Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                     Agency Notes:      N/A

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

Tab: Other Notes Info.

      Section: A               Section Name: Assets - Current Year                                   No Data Flag: YES             Line Attributes: Dollars
                                                                                                                                 Rounding Method: User-Defined                    Decimal: User-Defined
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
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A

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




                                                                                                        - 64 -
                                                                                                                                                                                        11/14/2014 18:11:42

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

     Note: 22             Funds From Dedicated Collections                                                                            Fiscal Year: 2014             Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                     Agency Notes:      N/A

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


      Section: B               Section Name: Assets - Prior Year                                     No Data Flag: YES             Line Attributes: Dollars
                                                                                                                                 Rounding Method: User-Defined                 Decimal: User-Defined
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
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A

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




                                                                                                       - 65 -
                                                                                                                                                                                            11/14/2014 18:11:42

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

     Note: 22            Funds From Dedicated Collections                                                                           Fiscal Year: 2014             Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                   Agency Notes:       N/A

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


      Section: C               Section Name: Liabilities and Net Position - Current Year             No Data Flag: YES           Line Attributes: Dollars
                                                                                                                               Rounding Method: User-Defined                       Decimal: User-Defined
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
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A

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




                                                                                                       - 66 -
                                                                                                                                                                                            11/14/2014 18:11:42

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

     Note: 22            Funds From Dedicated Collections                                                                           Fiscal Year: 2014             Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                   Agency Notes:       N/A

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


      Section: D               Section Name: Liabilities and Net Position - Prior Year               No Data Flag: YES           Line Attributes: Dollars
                                                                                                                               Rounding Method: User-Defined                       Decimal: User-Defined
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
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A

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




                                                                                                       - 67 -
                                                                                                                                                                                          11/14/2014 18:11:42

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

     Note: 22             Funds From Dedicated Collections                                                                             Fiscal Year: 2014               Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                      Agency Notes:    N/A

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


      Section: E               Section Name: 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                             2
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                          -2

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 C                             D                   period
26                                     N/A
27                                     N/A
28                                     N/A
29                                     N/A
30                                     N/A
31              All other funds from   N/A                                                                                                                                                                -2
                dedicated
                collections
32              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
33              Total                  N/A                                                                                                                                                                -2




                                                                                                         - 68 -
                                                                                                                                                                                          11/14/2014 18:11:42

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

     Note: 22             Funds From Dedicated Collections                                                                             Fiscal Year: 2014               Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                      Agency Notes:    N/A

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


      Section: F               Section Name: 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 C                             D                   period
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




                                                                                                         - 69 -
                                                                                                                                                                                      11/14/2014 18:11:42

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

     Note: 22             Funds From Dedicated Collections                                                                           Fiscal Year: 2014            Period: SEPTEMBER
     Entity: 9100         Department of Education                                                                                    Agency Notes:       N/A

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


       Section: G              Section Name: Number of Agency Funds From Dedicated                                                Line Attributes: Units
                                             Collections
Line Status Line Description           NB      2014 - SEPTEMBER             2013 - SEPTEMBER               Previously Rptd       Line Item Changes
 1              Total number of        N/A                      2.0000                     2.0000                     2.0000                     .0000
                funds from
                dedicated
                collections




       Section: H              Section Name: Revenue, Financing, Expenses, and Other - Intra-        No Data Flag: YES           Line Attributes: Dollars
                                             Entity Eliminations with Non-Dedicated Collections                                Rounding Method: Millions                     Decimal: Zero
                                             Funds-Current FY
Line Status Line Description           NB       Investment Revenue       Income Taxes and payroll         Unemployment and Other taxes and receipts Royalties and other special   Other financing sources
                                                  from securities C               witholdings C              excise taxes C                      C                 revenue C                            C
20                                     N/A
21                                     N/A
22                                     N/A
23                                     N/A
24                                     N/A
25              All other funds from   N/A
                dedicated
                collections
26              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts




                                                                                                       - 70 -
                                                                                                                                                                                      11/14/2014 18:11:42

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

     Note: 22             Funds From Dedicated Collections                                                                           Fiscal Year: 2014            Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                    Agency Notes:    N/A

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


      Section: H          Section Name: Revenue, Financing, Expenses, and Other - Intra-             No Data Flag: YES           Line Attributes: Dollars
                                        Entity Eliminations with Non-Dedicated Collections                                     Rounding Method: Millions                     Decimal: Zero
                                        Funds-Current FY
Line Status Line Description     NB     Gross cost or benefit          Earned revenues C             Non-program expenses
                                                payments D                                                              D
20                                     N/A
21                                     N/A
22                                     N/A
23                                     N/A
24                                     N/A
25              All other funds from   N/A
                dedicated
                collections
26              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
      Section: I               Section Name: Revenue, Financing, Expenses, and Other - Intra-        No Data Flag: YES           Line Attributes: Dollars
                                             Entity Eliminations with Non-Dedicated Collections                                Rounding Method: Millions                     Decimal: Zero
                                             Funds-Prior FY
Line Status Line Description           NB       Investment Revenue      Income Taxes and payroll          Unemployment and Other taxes and receipts Royalties and other special   Other financing sources
                                                  from securities C              witholdings C               excise taxes C                      C                 revenue C                            C
20                                     N/A
21                                     N/A
22                                     N/A
23                                     N/A
24                                     N/A
25              All other funds from   N/A
                dedicated
                collections
26              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts




                                                                                                       - 71 -
                                                                                                                                                                          11/14/2014 18:11:42

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

     Note: 22            Funds From Dedicated Collections                                                                         Fiscal Year: 2014      Period: SEPTEMBER
  Entity: 9100            Department of Education                                                                                 Agency Notes:    N/A

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


      Section: I          Section Name: Revenue, Financing, Expenses, and Other - Intra-             No Data Flag: YES        Line Attributes: Dollars
                                        Entity Eliminations with Non-Dedicated Collections                                  Rounding Method: Millions             Decimal: Zero
                                        Funds-Prior FY
Line Status Line Description     NB     Gross cost or benefit          Earned revenues C             Non-program expenses
                                                payments D                                                              D
20                                     N/A
21                                     N/A
22                                     N/A
23                                     N/A
24                                     N/A
25              All other funds from   N/A
                dedicated
                collections
26              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts
      Section: J               Section Name: Intragovernmental Gross Cost and Revenue-Current        No Data Flag: YES        Line Attributes: Dollars
                                             FY                                                                             Rounding Method: Millions             Decimal: Zero
Line Status Line Description           NB      Gross Cost or benefit         Earned Revenues for     Non-program Expenses
                                                      payments D                       Funds C                          D
20                                     N/A
21                                     N/A
22                                     N/A
23                                     N/A
24                                     N/A
25              All other funds from   N/A
                dedicated
                collections
26              Intra-agency funds     N/A
                from dedicated
                collections
                elimination
                amounts




                                                                                                       - 72 -
                                                                                                                                                                                                      11/14/2014 18:11:42

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

     Note: 22          Funds From Dedicated Collections                                                                                      Fiscal Year: 2014                 Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                              Agency Notes:       N/A

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


       Section: K            Section Name: Intragovernmental Gross Cost and Revenue - Prior                No Data Flag: YES            Line Attributes: Dollars
                                           FY                                                                                         Rounding Method: Millions                             Decimal: Zero
Line Status Line Description         NB       Gross Cost or benefit            Earned Revenues for         Non-program Expenses
                                                     payments D                          Funds C                              D
20                                   N/A
21                                   N/A
22                                   N/A
23                                   N/A
24                                   N/A
25          All other funds from     N/A
            dedicated
            collections
26          Intra-agency funds       N/A
            from dedicated
            collections
            elimination
            amounts
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
                    amended by SFFAS No. 43).                                                                              purposes.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           The Hurricane Education Recovery Act (P.L. 109-148, Division B, Title IV), enacted on
                    other financing sources based on SFFAS No. 27, par. 23.1, as amended by SFFAS No. 43.                  December 30, 2005, and the U.S. Troop Readiness, Veterans' Care, Katrina Recovery,
                                                                                                                           and Iraq Accountability Appropriations Act, 2007, appropriated funds to the Department
                                                                                                                           to provide needed assistance to reopen schools and help educate those affected by
                                                                                                                           Hurricanes Katrina and Rita.
 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.



                                                                                                              - 73 -
                                                                                                                                                                             11/14/2014 18:11:42

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

     Note: 25            Stewardship Land                                                                                             Fiscal Year: 2014      Period: SEPTEMBER
     Entity: 9100        Department of Education                                                                                      Agency Notes:    N/A

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


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


Line Status Line Description         NB       2014 - SEPTEMBER               2013 - 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 a brief statement explainng how the stewardship land relates to the mission of the
                     agency (SFFAS No. 29, par. 42a).
 3                   Provide a brief description of the agency's stewardship policies for stewardsip land (SFFAS
                     No. 29, par. 42c).
 4                   Provide any other information relevant information pertaining to this note. At a minimum,
                     describe briefly the significant accounting policies pertaining to this note.




                                                                                                           - 74 -
                                                                                                                                                                             11/14/2014 18:11:42

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

     Note: 26          Heritage Assets                                                                                               Fiscal Year: 2014       Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                      Agency Notes:     N/A

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


       Section: A            Section Name: Collection Type Heritage Assets (SFFAS No. 29, par.           No Data Flag: YES        Line Attributes: Units
                                           25d)
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. 28a).
 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 any other relevant information pertaining to this note. At a minimum, describe briefly
                    the significant accounting policies pertaining to this note.




                                                                                                            - 75 -
                                                                                                                                                                                            11/14/2014 18:11:42

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

     Note: 27        Fiduciary Activities                                                                                                Fiscal Year: 2014               Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                             Agency Notes:        N/A

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

Tab: Other Notes Info.

       Section: A         Section Name: Schedule of Fiduciary Net Assets - Deposit Funds -          No Data Flag: YES               Line Attributes: Dollars
                                        Current Year                                                                              Rounding Method: Millions                         Decimal: Zero
Line Status Line Description       NB        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



                                                                                                       - 76 -
                                                                                                                                                                                            11/14/2014 18:11:42

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

     Note: 27        Fiduciary Activities                                                                                                Fiscal Year: 2014               Period: SEPTEMBER
     Entity: 9100    Department of Education                                                                                             Agency Notes:        N/A

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


       Section: C         Section Name: Schedule of 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




                                                                                                       - 77 -
                                                                                                                                                                                11/14/2014 18:11:42

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

      Note: 27          Fiduciary Activities                                                                                            Fiscal Year: 2014       Period: SEPTEMBER
     Entity: 9100       Department of Education                                                                                         Agency Notes:     N/A

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


       Section: E            Section Name: 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        I                          N/A
 2        I                          N/A
 3        I                          N/A
 4        I                          N/A
 5          Total number of          N/A
            fiduciary funds - all
            funds
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.



                                                                                                               - 78 -
                                                                                                                                                                   11/14/2014 18:12:17

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

 Other Data: 01             Taxes                                                                                        Fiscal Year: 2014             Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                          Agency Notes:    N/A
      Status: Complete                                                                    I = Inactive Line


  Tab: Other Data Info.
     Section: A               Section Name: Taxes (SSFAS No.7, par. 67-69)                      No Data: YES             Line Attributes: Dollars
                                                                                                                       Rounding Method: User-Defined         Decimal: User-Defined
Line Status   Line Description        NB      2014 - SEPTEMBER         2013 - 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 above      Debit
 4            Changes in 2 above      Debit
 5            Other claims for        Debit
              refunds not yet
              accrued but likely to
              be paid when
              administrative
              actions are
              completed
 6            Management's best       Debit
              estimate of
              unasserted claims for
              refunds
 7            Changes in 4 and 5      Debit
              above
 8            Changes in 6 above      Debit
 9            Amount of               Debit
              assessments written
              off that continue to
              be statutorily
              collectible (excluded
              from accounts
              receivable)




                                                                                               - 1 -
                                                                                                                                                                                     11/14/2014 18:12:17

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

 Other Data: 01                Taxes                                                                                                       Fiscal Year: 2014             Period: SEPTEMBER
         Entity: 9100          Department of Education                                                                                         Agency Notes:    N/A
        Status: Complete                                                                                   I = Inactive Line


     Tab: Other Data Info.
      Section: B                  Section Name: Provide the following amount if a range is estimable              No Data: YES             Line Attributes: Dollars
                                                and not included in Sec. A (SFFAS No. 7 par 67-69)                                       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
   Section: C               Section Name: Tax Gap                                                                 No Data: YES             Line Attributes: Dollars
                                                                                                                                         Rounding Method: User-Defined         Decimal: User-Defined
Line Status      Line Description         NB                       CY Low                        CY High                        PY Low               PY High
 1               Tax gap estimate        Debit




     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.


                                                                                                                 - 2 -
                                                                                                                                                                   11/14/2014 18:12:17

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

Other Data: 01              Taxes                                                                                             Fiscal Year: 2014         Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                              Agency Notes:    N/A
       Status: Complete                                                                          I = Inactive Line



    Tab: Other Text Data

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

Line         Question                                                                                                Answer
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 can be made.




                                                                                                      - 3 -
                                                                                                                                                                       11/14/2014 18:12:17

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

 Other Data: 08            Stewardship Investments                                                                           Fiscal Year: 2014             Period: SEPTEMBER
       Entity: 9100        Department of Education                                                                               Agency Notes:    RSSI
      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 2014                   FY 2013                       FY 2012                FY 2011                 FY 2010
 1                                  Debit
 2                                  Debit
 3                                  Debit
 4                                  Debit
 5                                  Debit
 6            Other                 Debit


     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 2014                   FY 2013                       FY 2012                FY 2011                 FY 2010
 1                                  Debit
 2                                  Debit
 3                                  Debit
 4                                  Debit
 5                                  Debit
 6            Other investment in   Debit
              development




                                                                                                  - 4 -
                                                                                                                                                                                        11/14/2014 18:12:17

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

 Other Data: 08               Stewardship Investments                                                                                  Fiscal Year: 2014                Period: SEPTEMBER
        Entity: 9100          Department of Education                                                                                      Agency Notes:        RSSI
       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 2014                   FY 2013                       FY 2012                    FY 2011                      FY 2010
 1               Federal Student Aid    Debit                     34,845                    -14,546                          9,401                    -5,555                       11,096
 2               Elementary and         Debit                     22,832                     22,221                       22,137                      21,195                       21,608
                 Secondary Education
 3               Special Education      Debit                     15,948                     15,919                       16,139                      15,357                       15,227
                 and Rehab Services
 4               Other Departmental     Debit                      6,938                       6,175                         6,211                      7,341                       7,067
                 Programs
 5               Salaries and           Debit                        667                        703                           481                        504                          502
                 Administration
 6               Other Investments in   Debit                             0                    2,623                         7,651                    27,945                       44,019
                 human capital
     Threshold
      Line Description                                              Question                                                                    Answer
      Other Data Info - Federal Student Aid (FY 2014)               Please provide explanations for any amounts that have                       The change is primarily due to the acquisition of HEAL as well as
                                                                    changed by 20% or more and or greater than 5,000,000                        the change in the FFEL Program and Direct Loan Program
                                                                    between the current fiscal year and prior fiscal year.                      subsidy expense.
                                                                    (Unaudited)
      Other Data Info - Elementary and Secondary Education          Please provide explanations for any amounts that have                       Within threshold
      (FY 2014)                                                     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 2014)                                                     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 2014)       Please provide explanations for any amounts that have                       The increase is due to Perkins Loan Program face value of loans
                                                                    changed by 20% or more and or greater than 5,000,000                        outstanding.
                                                                    between the current fiscal year and prior fiscal year.
                                                                    (Unaudited)
      Other Data Info - Salaries and Administration (FY 2014)       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)




                                                                                                         - 5 -
                                                                                                                                                                                11/14/2014 18:12:17

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

 Other Data: 08               Stewardship Investments                                                                                 Fiscal Year: 2014             Period: SEPTEMBER
         Entity: 9100         Department of Education                                                                                     Agency Notes:    RSSI
        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 2014                      FY 2013                       FY 2012                FY 2011                 FY 2010
 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 2014                      FY 2013                       FY 2012                FY 2011                 FY 2010
 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)




                                                                                                           - 6 -
                                                                                                                                                                                           11/14/2014 18:12:17

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

Other Data: 08               Stewardship Investments                                                                                    Fiscal Year: 2014                  Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                          Agency Notes:       RSSI
       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.




                                                                                                          - 7 -
                                                                                                                                                                      11/14/2014 18:12:17

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

Other Data: 08              Stewardship Investments                                                                             Fiscal Year: 2014          Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                Agency Notes:    RSSI
       Status: Complete                                                                            I = Inactive Line



    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)




                                                                                                        - 8 -
                                                                                                                                                                11/14/2014 18:12:17

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

 Other Data: 09             Deferred Maintenance                                                                    Fiscal Year: 2014             Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                     Agency Notes:       N/A
      Status: Complete                                                             I = Inactive Line


  Tab: Other Data Info.
     Section: A               Section Name: Range of Amounts                             No Data: YES               Line Attributes: Dollars
                                                                                                                  Rounding Method: User-Defined          Decimal: User-Defined
Line Status   Line Description         NB             CY- Low   D       CY- High    D CY - Critical Maintenance             PY- Low     D            PY- High    D PY - Critical Maintenance
                                                                                                              D                                                                            D
 1            Buildings, structures,   N/A
              and facilities
 2            Furniture, fixtures,     N/A
              and equipment
 3            Other general            N/A
              property, plant, and
              equipment
 4            Heritage assets          N/A
 5            Stewardship land         N/A
     Section: B               Section Name: Cost Estimate                                No Data: YES               Line Attributes: Dollars
                                                                                                                  Rounding Method: User-Defined          Decimal: User-Defined
Line Status   Line Description         NB    2014 - SEPTEMBER   D
 1            Buildings, structures,   N/A
              and facilities
 2            Furniture, fixtures,     N/A
              and equipment
 3            Other general            N/A
              property, plant, and
              equipment
 4            Heritage assets          N/A
 5            Stewardship land         N/A




                                                                                        - 9 -
                                                                                                                                                                              11/14/2014 18:12:17

                                                                                     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: 2014             Period: SEPTEMBER
         Entity: 9100         Department of Education                                                                                   Agency Notes:    N/A
        Status: Complete                                                                            I = Inactive Line


     Tab: Other Data Info.
      Section: A                Section Name: Risk Assumed                                                 No Data: YES             Line Attributes: Dollars
                                                                                                                                  Rounding Method: User-Defined         Decimal: User-Defined
Line Status      Line Description        NB       2014 - SEPTEMBER            2013 - 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).




                                                                                                        - 10 -
                                                                                                                                                                               11/14/2014 18:12:17

                                                                                  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: 2014                Period: SEPTEMBER
       Entity: 9100          Department of Education                                                                                  Agency Notes:      Note 16
      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 (Non-
              federal)
 9            Total                    N/A
     Section: B                Section Name: Net Outlays to SBR                                                                   Line Attributes: Dollars
                                                                                                                                Rounding Method: Millions                Decimal: Zero
Line Status   Line Description         NB         CY - MTS Net Outlays       CY - SBR Net Outlays        CY - DIFFERENCE
                                                                     D                          C
 1            Net Outlays              N/A                     59,609                     59,610                           -1




                                                                                                       - 11 -
                                                                                                                                                                     11/14/2014 18:12:17

                                                                             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: 2014             Period: SEPTEMBER
      Entity: 9100        Department of Education                                                                              Agency Notes:    Note 16
     Status: Complete                                                                      I = Inactive Line


  Tab: Other Data Info.
    Section: C              Section Name: Earned Revenue to Undistributed Offsetting Receipts    No Data: YES               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    No Data: YES               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




                                                                                                - 12 -
                                                                                                                                                                                               11/14/2014 18:12:17

                                                                                        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: 2014                  Period: SEPTEMBER
         Entity: 9100          Department of Education                                                                                            Agency Notes:        Note 16
        Status: Complete                                                                                I = Inactive Line


     Tab: Other Data Info.
      Section: E                 Section Name: Operating Revenue to Undistributed Offsetting                   No Data: YES                   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            Collecting agencies provide the Closing Package line in which the custodial transfer-out
              (disposition of collection) was recorded and the trading partner code.
 2            Receiving agencies provide the Closing Package line in which the custodial transfer-in/revenue
              was recorded and the trading partner code.
 3            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

 Line         Question                                                                                                        Answer
 1            Provide a detailed description of the difference and whether this difference will be resolved next              The difference is due to rounding on the financial statements.
              FY.
     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/AFR in the
              "Agency Notes" field.



                                                                                                             - 13 -
                                                                                                                                                                            11/14/2014 18:12:17

                                                                                      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: 2014             Period: SEPTEMBER
       Entity: 9100          Department of Education                                                                                  Agency Notes:    Note 16
       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
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.




                                                                                                           - 14 -
                                                                                                                                                                                11/14/2014 18:12:17

                                                                               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: 2014                 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                   613,860                                                                        143,598
              Receivable, Gross -
              Beginning of Year
 2            Disbursements           Debit                   133,904                                                                          8,966
              (loans
              made/securities
              purchased)
 3            Repayments              Debit                   -47,179                                                                        -18,308
 4            Losses                  Debit
 5            Capitalized interest    Debit                    13,523                                                                          2,996
 6            Capitalized dividends Debit
 7            Other                   Debit                    17,050                                                                          2,511
 8            Direct Loans            N/A                     731,158                                                                        139,763
              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-All other loans                CY-Total
                                                             Loans    International Development           Development                  receivable

 1            Direct Loans            Debit                                                                                                    2,303                    759,761
              Receivable, Gross -
              Beginning of Year
 2            Disbursements           Debit                                                                                                      759                    143,629
              (loans
              made/securities
              purchased)
 3            Repayments              Debit                                                                                                      -93                    -65,580
 4            Losses                  Debit
 5            Capitalized interest    Debit                                                                                                        12                    16,531
 6            Capitalized dividends   Debit
 7            Other                   Debit                                                                                                     -131                     19,430
 8            Direct Loans             N/A                                                                                                     2,850                    873,771
              receivable, gross-



                                                                                                  - 15 -
                                                                                                                                                                                    11/14/2014 18:12:17

                                                                                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: 2014                 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-All other loans                  CY-Total
                                                             Loans    International Development             Development                  receivable

              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                   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       PY-Export-Import Bank        PY-U.S. Agency for        PY-Housing and Urban                                        PY-All other loans                PY-Total
                                                             Loans    International Development             Development                                                receivable

 1            Direct Loans            Debit                                                                                                                                   2,000                       642,962



                                                                                                    - 16 -
                                                                                                                                                                            11/14/2014 18:12:17

                                                                                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: 2014               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-All other loans              PY-Total
                                                           Loans    International Development            Development                                             receivable

              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-
              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                 263,984
              gross-beginning of
              the year
 2            Disbursements           Debit
              (loans
              made/securities
              purchased)
 3            Repayments              Debit                 -20,866
 4            Other                   Debit                  -1,556
 5            Guaranteed Loans,       N/A                   241,562
              gross-end of the
              year




                                                                                                 - 17 -
                                                                                                                                                                           11/14/2014 18:12:17

                                                                               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: 2014                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                                                                                                                                                        263,984
              gross-beginning of
              the year
 2            Disbursements         Debit
              (loans
              made/securities
              purchased)
 3            Repayments            Debit                                                                                                                                                        -20,866
 4            Other                 Debit                                                                                                                                                         -1,556
 5            Guaranteed Loans,       N/A                                                                                                                                                        241,562
              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                  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

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                                                                                                                                                        290,668
              gross-beginning of
              the year



                                                                                                - 18 -
                                                                                                                                                                              11/14/2014 18:12:17

                                                                                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: 2014                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                                                                                                                                                         -22,975
 4            Other                   Debit                                                                                                                                                          -3,709
 5            Guaranteed Loans,       N/A                                                                                                                                                           263,984
              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-Automotive Industry         CY-Public-Private            CY-All Other TARP               CY-Total
                                                          Program                     Program        Financing Program        Investment Program                     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




                                                                                                    - 19 -
                                                                                                                                                                                               11/14/2014 18:12:17

                                                                                     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: 2014                   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-Automotive Industry           PY-Public-Private              PY-All Other TARP                     PY-Total
                                                             Program                      Program             Financing Program          Investment Program                        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

     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.



                                                                                                         - 20 -
                                                                                                                                                                        11/14/2014 18:12:17

                                                                                    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: 2014            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
6           Provide a detailed description of the amounts reported in Sections E and F that comprise the
            "Other" line.




                                                                                                           - 21 -
                                                                                                                                                            11/14/2014 18:12:17

                                                                             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: 2014             Period: SEPTEMBER
       Entity: 9100       Department of Education                                                                     Agency Notes:    N/A
      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     2014 - 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     2014 - 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 -
                                                                                                                                                          11/14/2014 18:12:17

                                                                             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: 2014              Period: SEPTEMBER
       Entity: 9100       Department of Education                                                                  Agency Notes:         N/A
      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       2014 - 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       2014 - 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 -
                                                                                                                                                                11/14/2014 18:12:17

                                                                              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: 2014             Period: SEPTEMBER
       Entity: 9100       Department of Education                                                                         Agency Notes:    N/A
      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      2014 - 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      2014 - 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 -
                                                                                                                                                                          11/14/2014 18:12:17

                                                                                       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: 2014           Period: SEPTEMBER
         Entity: 9100         Department of Education                                                                                 Agency Notes:      N/A
        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       2014 - 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       2014 - 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, and 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 -
                                                                                                                                                                      11/14/2014 18:12:17

                                                                                     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: 2014         Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                 Agency Notes:    N/A
       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 -
                                                                                                                                                                      11/14/2014 18:12:17

                                                                                     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: 2014         Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                 Agency Notes:    N/A
       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 -
                                                                                                                                                                      11/14/2014 18:12:17

                                                                                     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: 2014         Period: SEPTEMBER
       Entity: 9100         Department of Education                                                                                 Agency Notes:    N/A
       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 -
                                                                                                                                                                                   11/14/2014 18:12:17

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

 Other Data: 18                Federal Natural Resources (Other than Oil and Gas)                                                        Fiscal Year: 2014             Period: SEPTEMBER
         Entity: 9100          Department of Education                                                                                       Agency Notes:    N/A
        Status: Complete                                                                                 I = Inactive Line


     Tab: Other Data Info.
      Section: A                 Section Name: Asset Value for Federal Natural Resources (Other                    No Data: YES          Line Attributes: Dollars
                                               than Oil and Gas)                                                                       Rounding Method: User-Defined         Decimal: User-Defined


Line Status      Line Description         NB                     FY 2014
 1                                       Debit
 2                                       Debit
 3                                       Debit
 4                                       Debit
 5                                       Debit
 6                                       Debit
 7                                       Debit
 8                                       Debit

     Tab: Other Text Data

        Section: A                  Section Name: Asset Value for Federal Natural Resources (Other                  No Data: YES
                                                  than Oil and Gas)

 Line         Question                                                                                                        Answer
 1            Provide a concise statement explaining the nature and valuation (for example, measurement
              method and significan assumptions) of federal natural resources other than oil and gas. Also
              provide information related to significant federal natural resources (other than oil and gas) that
              were not required to be reported per TB 2011-1 and explain why they were not reported.
 2            Describe any significant changes in the estimation methodology, including the underlying
              assumptions.
 3            Provide any other relevant information pertaining to the note. At minimum, describe briefly the
              significant accounting policies pertaining to this note.




                                                                                                              - 29 -
 
 
 
 
 
U.S. Department of Education 
FY 2014 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. 
 
                              




                                                                                                    1
Summary of Significant Accounting Policies
Reporting Entity and Programs
The United States (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 mission of the Department is to promote student achievement and
preparation for global competitiveness by fostering educational excellence and ensuring equal
access. The Department is responsible for administering federal student loan and grant
programs, as discussed below.
Federal Student Loan Programs. The Department administers direct loan, loan guarantee and
other student aid programs to help students and their families finance the cost of postsecondary
education. These include the William D. Ford Federal Direct Loan Program (Direct Loan) and
the Federal Family Education Loan Program (FFEL).
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 through
participating schools for eligible undergraduate and graduate students and their parents. The
FFEL Program, authorized by the HEA, operated through state and private nonprofit guaranty
agencies which provided 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 that was included in the Health Care and Education Reconciliation Act of 2010 (HCERA),
effective July 1, 2010, stated that no new FFEL loans would be made.
The Department also administers loans for the Historically Black Colleges and Universities
(HBCU) Capital Financing Program, the Health Education Assistance Loan Program (HEAL),
the Teacher Education Assistance for College and Higher Education Grant Program (TEACH),
along with low-interest loans to institutions of higher education for the building and renovating of
their facilities through the facilities loan programs.
Grant Programs. The Department administers numerous grant programs, including: 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. 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 grant programs are the Title I grants issued under
the Elementary and Secondary Education Act of 1965, as amended, grants issued under the
Individuals with Disabilities Education Act (IDEA), and grants to local education agencies.
The Department also administers the Federal Pell Grant (Pell Grant) Program to provide need-
based grants that provide access to postsecondary education for low-income undergraduate
and certain post-baccalaureate students.
Major Program Offices
The Department has three major program offices that administer loan and grant programs. They
are:
      Federal Student Aid (FSA)
      Office of Elementary and Secondary Education (OESE)
      Office of Special Education and Rehabilitative Services (OSERS)




                                                                                                       2
   In addition, there are other offices that administer programs including the Office of Career,
   Technical, and Adult Education (OCTAE), 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, changes in net position, and budgetary resources of the Department, as required by
the Chief Financial Officers Act of 1990 and the Government Management Reform Act of 1994.
The financial statements were prepared from the books and records of the Department, in
accordance with Generally Accepted Accounting Principles (GAAP) accepted in the U.S. for
federal entities, issued by the Federal Accounting Standards Advisory Board (FASAB), and the
Office of Management and Budget (OMB) Circular No. A-136, Financial Reporting
Requirements, as revised. These financial statements are different from the financial reports
prepared by the Department pursuant to OMB directives that are used to monitor and control
the use of budgetary resources. FSA also issues audited stand-alone financial statements which
are included in their annual report.
The Department’s financial statements should be read as a component of the U.S. Government,
a sovereign entity. One of the many implications 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
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.
Intragovernmental Transactions
The Department’s financial activities are interlinked and dependent upon the financial activities
of the centralized management functions of the federal government. Due to financial regulation
and management control by OMB and the U.S. Department of Treasury (Treasury), operations
may not be conducted and financial positions may not be reported as they would if the
Department were a separate, unrelated entity.
Accounting for Federal Credit Programs
The purpose of the Federal Credit Reform Act of 1990 (FCRA) is to record the lifetime cost of
direct loans and loan guarantees at the time the loan is disbursed. Under the FCRA, subsidy
cost is estimated using the net present value of future cash flows to and from the Department. In
accordance with the FCRA, credit programs either estimate a cost to the government (a
“positive” subsidy to borrowers), breakeven (zero subsidy cost), or estimate a negative subsidy
cost. Credit programs have negative subsidies when the estimated cost to the government of
providing credit is less than the estimated collections from repayments, interest, and fees, on a
present value basis. The estimates are affected by the cost of borrowing (at Treasury’s rates)
and the estimated risk of default. In practical terms, a negative subsidy occurs when the interest
rate and/or fees charged to the borrower are more than sufficient to cover the costs of the risk of
default.
The cost of direct loan and loan guarantee programs are budgeted and tracked by the fiscal
year in which the loan award is made or the funds committed. Such a grouping of loans or


                                                                                                        3
guarantees are referred to as a “cohort”. A cohort is a grouping of direct loans obligated or loan
guarantees committed by a program in the same year even if disbursements occur in
subsequent years.
In order to account for the change in the net present value of the loan portfolio over time, the
subsidy cost is “amortized” each year. Amortization of subsidy is interest expense on debt with
Treasury minus interest income from borrowers and interest on uninvested fund balance with
Treasury. It is calculated as the difference between interest revenue and interest expense.
Amortized amounts are recognized as an increase or decrease in interest income. Amortization
accounts for the differences in interest rates, accruals, and cash flows over the life of a cohort,
insuring that cost is reflected in subsidy estimates and re-estimates. For direct loans, the
allowance for subsidy is adjusted with the offset to interest revenue. For guaranteed loans, the
liability for loan guarantees is adjusted with the offset to interest expense.
The FCRA establishes the use of Program, Financing, and General Fund Receipt Accounts for
loan guarantees committed and direct loans obligated after September 30, 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. Financing
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 the Financing Accounts. Financing Accounts borrow funds from
Treasury, make direct loan disbursements, pay claims on guaranteed loans, collect principal
and interest from borrowers, collect fees and other program income, pay interest to Treasury on
borrowings, collect interest from Treasury on uninvested funds, collect funds for positive subsidy
or transfer excess or negative subsidy to a General Fund Receipt Account. The Financing
Account receives the subsidy cost payment from the Program Account. The General Fund
Receipt Account, a budget account, is 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. The budgetary resources and activities for these accounts
are presented separately in the Combined Statement of Budgetary Resources (SBR) and the
Budget of the United States Government and are excluded from the determination of the budget
deficit or surplus. Program accounts are classified as either budgetary or non-budgetary in the
Combined SBR. The budgetary accounts include the Program and Liquidating Accounts, while
Financing Accounts are non-budgetary. FCRA establishes Liquidating Accounts for activity
relating to any loan guarantees committed or direct loans obligated before October 1, 1991.
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.
As of July 1, 2014, consistent with the Consolidated Appropriations Act, 2014 (P.L. 113-76), the
Department of Health and Human Services (HHS) transferred all HEAL program loans to the
Department. This was accomplished through Treasury guidance on obligated and non-obligated
balance transfers.




                                                                                                      4
Use of Estimates
Department management is required to make certain estimates while preparing consolidated
financial statements in conformity with GAAP. These estimates are reflected in the assets,
liabilities, net cost, and net position of the financial statements and may differ from actual
results. The Department’s estimates are based on management’s best knowledge of current
events, historical experiences, and other assumptions that are believed to be reasonable under
the circumstances. Significant estimates reported on the financial statements include allocation
of Department administrative overhead costs, annual credit program re-estimates and
modifications of subsidy cost (general program administration cost), as well as grant liability and
advance accruals.
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 are not available for use in its operations. Non-entity assets are offset by
liabilities to third parties and have no impact on net position. 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
Fund Balance with Treasury includes five types of 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: (1) General funds consist of expenditure
accounts used to record financial transactions arising from congressional appropriations, as well
as receipt accounts; (2) Revolving funds, which include Financing Accounts, manage the activity
of self-funding programs whether through fees, sales or other income; (3) Special funds are
receipts from sources that are authorized by law for a specific purpose - these receipts are
available for expenditure for special programs; (4) Trust funds are used for the acceptance and
administration of funds contributed from public and private sources and programs and are in
cooperation with other federal and state agencies or private donors; and (5) Other funds include
deposit funds, receipt funds, and clearing accounts. Treasury processes cash receipts and cash
disbursements for the Department. The Department’s records are reconciled with Treasury’s.
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, as well as 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.
Accounts Receivable are established as claims to cash or other assets against other entities. At
the Department, accounts receivable originate through legal provisions or program requirements
to return funds due to noncompliant program administration, regulatory requirements, or
individual service obligations. Further, the Department utilizes the opportunity to reduce the
accounts receivable balances through the Treasury referral program.
The Department calculates the allowance for loss from uncollectable accounts receivable by
applying a collection rate based on historical trends against gross accounts receivable. The




                                                                                                      5
collection rate is determined based on a rolling average of actual collection rates for the prior
seven fiscal years.
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 U.S. and are reflected in the Budget of the United States
Government. 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 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 Fund
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 FCRA. 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 an “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 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 recoveries, interest
supplements, and offsetting fees. The Department also values all pre-1992 loans, loan
guarantees, and direct loans at their net present values. If the Liability for Loan Guarantees is
positive, the amount is reported as a component of Credit Program Receivables, Net.
The Liability for Loan Guarantees presents the net present value of all future cash flows from
currently insured FFEL loans including claim payments, interest assistance, allowance
payments, and recoveries from assigned loans. Guaranteed loans that default are initially turned
over to guaranty agencies for collection. Defaulted FFEL loans are accounted for and reported
in the financial statements under credit reform rules, similar to direct loans, although they are
legally not direct student loans. Negative balances are reported as a component of Credit
Program Receivables Net. Credit Program Receivables, Net includes default FFEL loans owned
by the Department and held by the Department or guaranty agencies. In most cases, after
approximately four years, defaulted guaranteed loans not in repayment are turned over to the
Department for collection.
Credit program receivables for activities under the temporary loan purchase authority include
the present value of future cash flows related to purchased loans. Subsidy was transferred,


                                                                                                       6
which may have been prior to loan purchase, and is recognized as subsidy expense on the
Balance Sheet and 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.
Property and Equipment, Net and Leases
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


The Department leases buildings, along with information technology and telecommunications
equipment, as part of a contractor-owned, contractor-operated services contract. Lease
payments associated with the equipment have been determined to be operating leases and, as
such, are expensed as incurred. The non-cancellable lease term is one year, with the
Department holding the right to extend the lease term by exercising additional one-year options.
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, as well as payments not yet processed.
Debt
The Department borrows from Treasury to provide funding for the Direct Loan, FFEL, TEACH,
and other loan 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 and paid 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



                                                                                                         7
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 program. 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.
Other Liabilities
Other Liabilities include liabilities in miscellaneous receipts and capital transfers. Liabilities in
miscellaneous receipt accounts are recorded for downward subsidy re-estimates that are
accrued at year end and for amounts of future capital transfers from Liquidating Accounts.
Miscellaneous receipt accounts are a mechanism used by Treasury to facilitate the elimination
of receivables and payables within the government, and the Department follows the guidance
for using miscellaneous receipt accounts in recording specific events. Upon execution of a
downward re-estimate or an actual capital transfer, the liabilities in the miscellaneous receipt
accounts are satisfied and removed from the general ledger. Liabilities in miscellaneous receipt
accounts are unfunded liabilities.
Net Cost
Net cost consists of gross costs and earned revenue. Gross costs and earned revenue are
classified as intragovernmental (exchange transactions between the Department and other
entities within the federal government) or with the public (exchange transactions between the
Department and non-federal entities).
Net program costs are gross costs less revenue earned from activities. The Department
determines gross cost and earned revenue by tracing amounts back to the specific program
office. Administrative overhead costs of funds unassigned are allocated based on full-time
employee equivalents of each program.
Interest Expense and Interest Revenue
The Department accrues interest receivable and records interest revenue on performing Direct
Loans and FFEL loans purchased by the Department. The Department recognizes interest
income when interest is accrued on loans to the public for the Direct Loan, FFEL, and TEACH
Programs. FFEL Financing and Liquidating Accounts accrue interest as part of allowance for
subsidy. Interest due from borrowers is accrued at least monthly and is satisfied upon collection
or capitalization into the loan principal.
Interest expense and interest revenue are equal for all credit programs due to subsidy
amortization. If interest revenue is greater than expense or interest expense is greater than
revenue, the difference is recorded to revenue with the offset to allowance for subsidy. Subsidy
amortization is required by the FCRA and accounts for the difference between interest accruals
and interest cash flows.
Net Position
Net position consists of unexpended appropriations and cumulative results of operations.
Unexpended appropriations include undelivered orders and unobligated balances, except for
amounts in Financing Accounts, Liquidating Accounts, and trust funds. Cumulative results of



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operations represent the net difference since inception between (1) expenses and (2) revenues
and financing sources.
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.
Reclassifications
Certain reclassifications were made to the Fiscal Year (FY) 2013 financial statements and notes
to conform to the current year presentation. These changes had no effect on total assets,
liabilities, net position, net cost of operations, or budgetary resources. The American Recovery
and Reinvestment Act of 2009 (ARRA) funding is winding down, thereby diminishing the
materiality of the program. Therefore, the separate ARRA presentation on the financial
statements and note disclosures has been removed. The Consolidated Statement of Net Cost
and related note disclosures for FY 2013 have been reclassified to present ARRA funding under
the specific program offices distributing the funding.
 




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